OMGTel (OMG) will not just make up the numbers and be content with being the fourth telco in Singapore in terms of market share, said Consistel chairman Masoud Bassiri on Thursday.
Another company that had thrown its hat in the ring to be the fourth telco, MyRepublic, had earlier stated it wanted to corner 10 per cent to 15 per cent of the market.
However, Mr Masoud said he was not embarking on the bid just to corner 10 per cent of the local market, and said the company will have “quite a bit of ambition” in wresting its share of the market as it aims to be at least in third place. It will also look for board members that would share this ambition going forward, he added in an interview with Channel NewsAsia. OMG was incorporated by Consistel in October 2014 to bid for the telco licence.
SMRT 'NOT GOING INTO THE TELCO BUSINESS': CONSISTEL
Consistel’s ambition can be seen with its tie-up with SMRT. On Wednesday, the transport operator announced it has entered an agreement with OMGTel for the latter’s bid to be the fourth telco, and to collaborate on the provision of goods and services. It also has the option of investing up to S$34.5 million in share options in OMG.
Mr Masoud clarified that SMRT was not going into the telco business, but the two companies have a “synergistic” relationship. “OMG is in mobile phones and SMRT is in mobility. There is a lot of synergy in terms of marketing, infrastructure that would allow both companies to grow together,” he said.
The chairman added that if it was not ambitious, then it would not be looking to build a brand new network infrastructure.
“The questions we asked were: “Was it possible to be first in the market at some point? Will we be able to bring any package we want for consumers? Will our network be able to support these packages?” he said. Ultimately, he and his team decided that being a Mobile Virtual Network Operator (MVNO), which would require running their services using the incumbent telcos’ infrastructure, would not allow them to achieve their goals.