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APT link-up wins SingTel SAR toehold

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Singapore Telecommunications (SingTel) has gained a foothold in Hong Kong's international telecommunications sector through its joint venture with a subsidiary of mainland-backed APT Satellite Holdings.

The Office of the Telecommunications Authority (Ofta) on Monday awarded an external satellite-based Fixed Telecommunication Network Services (FTNS) licence to APT Satellite Telecommunications (APT Telecom), the companies said yesterday.

The licence will enable APT Telecom - 55 per cent-owned by APT Satellite Glory and 45 per cent by SingTel - to offer satellite-based international telephone, Internet and Intranet services.

In January, SingTel, which is seeking to build a strong presence in Hong Kong, failed to win a service in a first round of satellite-based FTNS licences awarded by Ofta.

SingTel in February lost out in a bid to merge with Cable & Wireless HKT when Britain-based parent Cable & Wireless opted to sell its stake in the Hong Kong company to Pacific Century CyberWorks.

Last month its unit SingTel Mobile agreed to set up a US$1 billion joint venture with Britain's Virgin Group to offer mobile-telephone services in the region.

SingTel vice-president Hoh Wing Cheen yesterday said the satellite-based FTNS licence 'brings our partnership with the APT Group to an even higher level - from just the provision of satellite capacity to now offering telecoms services in the region around Hong Kong'.

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