SingTel to cut ad spend

Singapore - SingTel, in a bid to curtail costs, is planning to cut its reported S$30 million a year advertising account, among other things.

A SingTel spokesperson would not go into the specifics on the revised marketing budget while the CEO of the company's ad agency BBDO Singapore, Jean-Paul Burge, told Marketing that issues relating to advertising cost cutting had yet to be discussed between the pair. The SingTel spokesperson declined to comment further on the issue. SingTel reveals its quarterly results next month.

The measure is part of a bigger overall effort by the telecommunications giant to ease costs as the global financial crisis begins to impact Asian markets. Yesterday, the company announced its first rate revision in 18 years for its fixed-line telephone subscription and call charges, which is effective 1 January 2009. SingTel had previously been able to hold off any rate increase through productivity improvement and network rationalisation by reducing the number of exchange buildings, however the recent rapid increase in utility costs have pushed up running costs.

"While we are committed to delivering affordable and good quality fixed-line services, the service must remain sustainable. SingTel is among the last remaining operators in this region to revise telephone charges. With this adjustment, our charges continue to be one of the lowest in this region," Allen Lew, SingTel's CEO Singapore, said in a statement.

SingTel says it will provide $1 million worth of credit vouchers, each worth $10, to help households that need financial assistance.