SMRT GOING TO BE SINGAPORE'S 4TH TELCO

Transport operator SMRT announced today that it has entered an agreement with OMGTEL (OMG) to work on a bid for the fourth wireless telecomunications carrier licence here.

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In a notice filed with the Singapore Exchange, SMRT said the collaboration agreement will be “for the provision of such services and/or goods as may be agreed between the parties and will seek to leverage on synergies that can be derived from the Company’s extensive media presence and commuter reach”.

OMG is a company incorporated in Singapore for the purpose of the bidding by local tech firm Consistel, which came to prominence after a S$1.33 billion deal with Sports Hub to build and host all its wireless systems, including 3G and 4G equipment.

Consistel had declared its intention to bid for the fourth telco licence in October last year. So far, local fibre broadband service provider MyRepublic is the other to throw its hat into the ring.

SMRT said it has been offered an opportunity to invest up to S$34.5 million via an option to subscribe for shares in OMG. “The exercise of the option is at the Company’s election and subject to, amongst other things, the obtaining of the telco licence by OMG, satisfactory due diligence on OMG, and the execution of definitive agreements between the Company and OMG,” the transport operator said.

It added that the agreement is not expected to have a material impact on its financial performance for the financial year ending March 31 next year.

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