The Effectiveness of the Newly Executed Distribution Network

region occurs soon, there is a real potential, by virtue of superior technology, to gain a significant competitive edge over GSM rivals.

There is also the sale of data link to corporate clients. This will gather significant revenue for the company as well as solidify its position with its corporate clients as their primary information transfer and telecom provider. The incongruities between the various tariff plans of the various packages are to be removed to make it much easier for customers to budget usage and also to increase the value for money of each package. There are no mergers or acquisitions in the future, but it is believed that Fujitsu may increase its holdings in PBTL and gain greater management control. If this happens, then the entire picture may change. This is especially important if we consider the fact that slowly boundaries are opening and technologies are improving. GSM will give way to more advanced technologies like CDMA and there will soon be no national boundaries as defined in the current telecom industry. If that happens and the telecom sector is further liberalized, then PBTL can look forward to increased growth and revenue.

2.13 Acquisition of SingTel Singapore Telecommunications Limited (SingTel) recently announced that it has invested US$118 million for a 45% equity stake in PBTL. In addition, SingTel has a call option to increase its equity interest in PBTL to 60% for an additional US$65 million. The option can be exercised between 1 April and 30 June 2007 and it is still negotiable.

The recent investment made by SingTel has created a lot of options for the company.

Everyone is expecting that network expansion and technology upgrade will occur at a faster pace. This is especially important if we consider boundaries are opening gradually and technologies are improving.