Singapore-based operator giant SingTel has announced a “bold” new restructuring of its business into three non-geographic customer segments – while also boosting its standing in the mobile advertising space via the US$321 million acquisition of US mobile ads vendor Amobee.
The new structure will see the business split into Group Consumer (comprising all consumer-related functions plus the group’s international businesses); Group Digital Life (digital services); and Group ICT (enterprise-related business units).
“We now see some of the largest and most exciting opportunities that have ever existed in this industry,” said CEO Ms Chua Sock Koong. “The changes to how we organise ourselves are necessary in order to align our people and resources to sharpen our focus and take advantage of these opportunities.”
“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,” she added.
Meanwhile, SingTel described the Amobee purchase as a “game-changer” that will help its brand partners to “better reach their target audience and deliver relevant offers, rewards and promotions to customers.” The operator said it intends to “harness these opportunities to become not only the leading mobile advertising company in Asia Pacific, but also among the top three worldwide."
“The mobile advertising market is nascent and has significant potential for mobile operators, who are able to provide differentiated solutions across smartphones and feature phones, giving brands a better return on their marketing spend,” said Allen Lew, CEO of SingTel’s new Group Digital Life division. “We want to capture that growth in developed and emerging markets, starting with this acquisition."
The transaction is subject to certain conditions and regulatory approvals, and is expected to complete before June 2012.