8 Key Insights to Learn from Singapore Telecommunications Limited’s Management

Singapore Telecommunications Limited  (SGX: Z74) is the largest listed company in Singapore. It is also the largest player among the trio of telecommunications services providers in Singapore (the other two are M1 Ltd (SGX: B2F) and StarHub Ltd (SGX: CC3)).

Given Singtel’s heft, there might be things investors can learn from its management team. Recently, Singtel’s chief corporate officer, Jeann Low, gave an interview. I had picked out eight key insights that may be useful for investors:

1. The importance of teamwork– click here

2. Focus on customers– click here

3. Venturing outside Singapore’s shores– click here

4. The Optus decision– click here

5. Mergers and acquisitions– click here

6. Singtel’s biggest challenge– click here

7. Singapore’s fourth telco

“All three players are listed companies, and are subject to market discipline. If you look at the network quality, pricing packages and handset subsidies available, one cannot argue this is not a competitive market.

Around the world, I think you will be hard-pressed to find a profitable fourth player in markets that are already quite well-penetrated.”

A fourth telco could be coming to Singapore soon. Contenders MyRepublic and OMGTel have thrown their hats into the ring.

But, Low expressed doubt about the viability of adding a fourth telco to the mix. The Singapore market has a population of 5.5 million people and a mobile penetration rate of close to 150%. She feels that there is already healthy competition in the market with three players.

8. Circling back to the home base, Singapore

“Singapore is our home market, and we are very clear – we will continue to protect our market leadership position.”

Despite Singtel’s oversea ventures, Low also made it clear that the company will be fighting hard to keep its position in the home market. Singtel holds close to a 50% market share in Singapore’s mobile market. For the financial year ended 31 March 2016 (FY2016), the home market contributed to 29% of Singtel’s net profit.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn't own shares in any company mentioned.