Singtel entering Thailand to solidify Asean digital reach
Singtel is looking at four Thai sectors as the Singapore-based telecommunications and media giant hopes to become the premiere digital services and entertainment platform for millennials.
By investing in e-payments, digital content like video-on-demand, cybersecurity and e-sports, Singtel hopes to bring 700 million customers in 20 countries together under one platform.
The move puts Singtel in direct competition with unicorn startups Line and Grab that offer holistic, one-stop-shopping platforms for a wide range of digital and material services.
“I have great respect for Grab and Line, but we are the ones with 700 million customers,” said Arthur Lang, chief executive of Singtel International, the overseas investment arm of Singtel Group. “If we play it right, I’m sure we can win.”
The biggest challenge for Mr Lang is finding a “digital glue” to consolidate Singtel’s large customer base — fragmented by language, borders and culture.
He said digital payments are key to uniting Singtel’s customers. Singtel this week announced a partnership with Advanced Info Service (AIS) and Kasikornbank to launch Via, Asia’s first cross-border payment platform that allows users to use their local mobile wallets while travelling abroad.
“Cross-border mobile payment through Via platform settlements will be the foundation of services that attract users to this platform,” Mr Lang said.
Singtel aims to attract 400 million users to this service across Asean in the next four years.
Via is an open platform that allows other mobile wallets in Singapore and Thailand country to connect to allow users to pay for products and services in their home country’s currency overseas by scanning a QR code. Singtel earns revenue in foreign exchanges and settlement fees that are lower than offered by credit cards.
“We are open to [partnering with] companies outside Southeast Asia like China’s mobile payment platforms, WeChat Pay and Alipay, to connect with Asean users,” Mr Lang said.
But while Via offers lower rates than credit cards, Mr Lang says their biggest competitor is still cash. Through international partnerships, he wants to make mobile wallets a more convenient payment method than hard currency. Singtel has a reach of 700 million customers through investments in six t elecom operators across 20 countries. Five are in Asia-Pacific — India, Australia, Thailand, the Philippines and Indonesia — and the rest are in Africa. The company makes 75% of profits outside Singapore thanks to long-term investments in leading telecom operators.
In Southeast Asia, Singtel has a reach of 300 million customers, 70% of whom are aged under 35.
To attract this core demographic, Singtel is investing heavily in e-sports and gaming. Singtel holds e-sport tournaments around the region and promotes games on digital platforms.
“We are not in e-sports just for the marketing opportunity,” Mr Lang said. “We don’t want to be just another sponsor of tournaments. We see this as a business opportunity.”
He said Singtel can use distribution channels to market games and even offer special mobile data package promotions to drive customers towards new games. In the era of 5G, virtual reality and augmented reality will provide greater opportunities in the gaming sector.
Digital content and digital marketing businesses like video-on-demand and short-form videos also factor into Singtel’s plan to attract more youngsters.
Singel is also eyeing cybersecurity services as the proliferation of cyberthreats provides a unique opportunity to increase indispensability in digital spaces.
Mr Lang hopes Singtel’s many investments in digital and information communication technology (ICT) services will form the digital glue necessary to connect users to its platform and increase daily active users.
As of June, Singtel’s revenue from ICT and digital business accounted for 24% of total revenue, which the company aims to increase to 40-50% in the next 3-5 years.
“We believe established companies like ours can compete amid digital transformation if we leverage our assets correctly, especially our customer base,” he said.