SingTel restructures to focus on mobile marketing
SingTel today announced plans to revamp its organizational structure, and to increase its presence in the mobile marketing sector with a $321 million (€243 million) acquisition.
The company plans to restructure into three units - consumer, “digital l!fe” and enterprise ICT. The digital l!fe unit will encompass OTT services delivered through bundles and add-ons.
Ovum analyst Nicole McCormick called the planned restructure “a bold but necessary move.” She says the creation of the digital l!fe unit is “a direct attempt by SingTel to disrupt adjacent verticals and the other-the-top players by leveraging its regional footprint to maximize the impact of its OTT initiatives.”
But McCormick added that executing the restructure could be challenging. “Pan-group management across such a large and diverse portfolio will not be an easy task,” she notes adding. “Country differences will need to be taken into account, and SingTel must successfully integrate its new regional strategy with its country strategies. SingTel’s minority stake in many of its subsidiaries will complicate this.”
SingTel today also revealed plans to purchase mobile marketing company Amobee for $321 million, as it ramps up its efforts to capture a share of the mobile advertising and marketing industry. The operator intends to keep Amobee an independent company, and current management will remain in active control.
If the preconditions of the acquisition are met, it is expected to close by June.