The 139-year-old organization is experimenting with video games as a way to elevate its profits with millennials. Singapore Telecommunications Ltd. was round back when the telegraph was still calm enough to be operated. The successful telecom giant announced it on Tuesday that it plans to start a new competitive gaming league this year and will eventually be the benefactor of its own team. E-sports, being a large business already in the market, ranges from U.S. to China, but they expect it to be bigger. Creating a venture in gaming is basically the brainchild of Arthur Lang, the former banker who took over Singtel’s international operations a year back. It aimed to diversify the businesses to where the competition is tough.
Rohit Sipahimalani, joint head of portfolio strategy and risk group at Singapore’s state investment firm said, “Telecom companies around the world are facing certain challenges with the changes that we’re seeing in the digital economy. Singtel and other companies are preparing to adjust to that,”
In 2016, the city regulators granted fourth telecom authorization to rival TPG Telecom Ltd. and streaming facilities like Netflix Inc. are pulling spectators away from Singtel’s television channels. With this, to reshape its fame in the market Singtel has bought in cyber security and digital marketing businesses, but it still gets about 76 percent of its sales from telecom services. In March, Singtel planned to link all of the mobile wallet services in a single network for the customers to use their phones to make payments at shops, anywhere in Southeast Asia.
To improvise its reputation in the market, Singtel is starting its gaming push by holding its first regional E-sports championship in early October at Singapore’s Suntec Convention Center. In the year 2022, Singtel said that it will recruit a team to represent Singapore in international competitions in Hangzhou and China, where gaming will be a medal sport.
Sachin Mittal, an analyst at DBS Group Holdings said, “Singtel needed to find something beyond the pure carrier business and I am glad that they have entered into the market with something new; I think they are moving towards the right direction.”