Why Singtel can sit back and put its feet up amidst the possibility of a fourth telco

Its robust overseas business will be its lucky card.

It seems like Singtel will not have anything to worry about should a fourth group successfully penetrate the city-state's telco scene.

Singtel's recent maneuver to deepen its overseas presence by boosting stakes in Thailand's InTouch Holdings and India's Bharti Telecom would likely be the key, research firm UOB Kay Hian said in its report.

"Singtel is the least affected by a fourth mobile operator in Singapore as its overseas
businesses account for about 70% of its bottom-line," the report stated.

The recent deal will increase Singtel's participation in Bharti Telecom from 39.8 to 47.1%. It will also raise its stake in InTouch's Advanced Info Service to 31.8%.

With the deal, Singtel's domestic market would likely shrink, according to a separate report by BMI Research.

"Over-relying on its smallest market by population is unlikely to produce sustained revenue growth, and Singtel has therefore established a healthy income mix with more than two-thirds of its net profits from overseas markets," BMI argued.

But this may be a good thing for Singtel if a possible telco successfully establishes its own place in the industry. UOB noted that Singtel has many regional mobile associates from which it can gain benefit from.

"Singtel will benefit from growth at its regional mobile associates, such as Telkomsel in Indonesia, Bharti Airtel in India, Advanced Info Service in Thailand and Globe Telecom in the Philippines," UOB said.