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SingTel goes for a bold organisational restructuring

Zafar Anjum | March 5, 2012
The Singapore telco announces new organisation structure to sustain growth, competitiveness and innovation into the future.

Responding to changing customer behaviour, Singapore Telecommunications (SingTel) today announced a slew of new changes.

The telco said it was going for a new organisation structure to capture emerging opportunities in a new era.

The telco said its new organisation structure will support the Group's three key objectives: reinventing SingTel's core carriage business, creating and driving new growth platforms that leverage and strengthen the core, and turbo-charging SingTel's regional capabilities in ICT services.

Comprising three units, the new structure reflects the Group's re-alignment of people and resources by customer segments, the company said. It will also sustain growth, competitiveness and innovation into the future.

The new structure takes effect on 1 April 2012. SingTel has over 400 million mobile customers.

"SingTel has a long history of quietly, but successfully, making bold and industry-shaping investments," said Chua Sock Koong, SingTel Group CEO. "At the heart of this new organisation structure is a focus to provide truly relevant and differentiated services to our customers. We have, over the years, built up unique assets that will allow us to compete effectively against traditional as well as non-traditional competitors, such as device manufacturers and content owners, for consumer share and spending."

The telco also announced that it has signed an agreement to acquire U.S.-based Amobee, a premium provider of mobile advertising solutions to operators, publishers and advertisers globally.

New leaders

Group Consumer, led by Paul O'Sullivan, will focus on setting new benchmarks in customer experience as the leading provider of next-generation communication, infotainment and technology services to consumers and small businesses across Asia Pacific. The unit consolidates all consumer-related functions and includes the Group's international business in the emerging markets, allowing it to fully leverage the scale of its more than 400 million mobile customers.

Group Digital L!fe, headed by Allen Lew, will lead the Group's journey to becoming a leading player in the digital ecosystem, beyond connecting voices to bringing people together with innovative and cutting-edge digital services. This unit will complement the Group's consumer offerings with state-of-the-art digital services through bundles and add-ons. Lew and his team also carry a strong mandate to serve customers and other industry players globally.

Group ICT brings together all enterprise-related business units and will focus on providing ICT solutions to serve the Group's enterprise customers, offering innovative and comprehensive IT and telecommunications solutions across multiple geographies. Lew will be the covering CEO as the Group searches internally and externally to fill the position.

Ovum reacts

"SingTel's regional restructure is indeed a "bold" but necessary move," said Nicole McCormick, Ovum senior analyst telco strategy. "The group divisional split between consumers and enterprise segments makes sense and the Group Digital L!fe unit will need to devise clever bundles and add-ons that take the OTT (over the top) players head-on. Regional strategies in these three areas make much more sense than piecemeal efforts scattered across country markets. This is a direct attempt by SingTel to 'disrupt adjacent' verticals and the other-the-top players by leveraging its regional footprint to maximise the impact of its OTT initiatives." 

 

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