Singapore Telecommunications Limited – Annual report – 31 March 2025
Industry: telecoms
46.5 Joint ventures of the Group
Notes:
(1) The place of business of the joint ventures are the same as their country of incorporation, unless otherwise specified.
(2) The Group holds substantive participating rights over the significant financial and operating decisions of the above joint ventures, which enables the Group to exercise joint control with the other shareholders.
(3) The company has been equity accounted for in the consolidated financial statements based on the results for the year ended, or as at, 31 December 2024, the financial year-end of the company.
(4) Audited by KPMG Phoomchai Audit Ltd, Bangkok.
(5) This represents the Group’s direct interest in AIS.
(6) Audited by Deloitte Haskins & Sells LLP (New Delhi), APAS & Co. LLP. Chartered Accountants and Bansal & Co. LLP, Chartered Accountants respectively. Bharti Airtel Limited has business operations in 17 countries representing India, Sri Lanka, 14 countries in Africa, and a joint venture in Bangladesh.
(7) Audited by Isla Lipana & Co./PwC Philippines.
(8) The Group has a 46.7% effective economic interest in Globe.
(9) In the current financial year, GSA Holdings Company Limited was incorporated to hold GSA Data Centre 01 Company Limited (formerly known as GSA Data Centre Company Limited), a 32.9%-owned joint venture previously held by the Group.
(10) The Southern Cross Cable Network operates through two separate companies. Southern Cross Cables Holdings Limited owns a cable network between Australia and the USA, with operations outside the USA. Pacific Carriage Holdings Limited Inc. has operations within the USA.
(11) Audited by KPMG, Bermuda.
(12) Audited by Purwantono, Sungkoro & Surja (a member firm of Ernst & Young).
(13) In the current financial year, Lendlease subscribed for a 49% stake in Singtel Somerset Pte. Ltd. (“SSPL”), a wholly-owned subsidiary of the Group which holds its Comcentre property. On completion of the transaction, the Group ceased to have effective control over SSPL.
24. JOINT VENTURES
As at 31 March 2025,
(i) The market value of the quoted equity shares in joint ventures held by the Group was S$58.91 billion (31 March 2024: S$42.20 billion).
(ii) The Group’s proportionate interest in the capital commitments of joint ventures was S$1.95 billion (31 March 2024: S$2.41 billion).
The details of joint ventures are set out in Note 46.5.
Optus has an interest in an unincorporated joint operation to share certain network sites and radio infrastructure across Australia whereby it holds an interest of 50% (31 March 2024: 50%) in the assets, with access to the shared network and shares 50% (31 March 2024: 50%) of the cost of building and operating the network.
The Group’s property, plant and equipment included the Group’s interest in the property, plant and equipment employed in the unincorporated joint operation amounting to S$0.80 billion (31 March 2024: S$0.80 billion).
The summarised financial information of the Group’s significant joint ventures namely Airtel, PT Telekomunikasi Selular (“Telkomsel“), Globe Telecom, Inc. (“Globe“) and Advanced Info Service Public Company Limited (“AIS“), based on their financial statements and a reconciliation with the carrying amounts of the investments in the consolidated financial statements were as follows –
“NA” denotes Not Applicable.
Notes:
(1) The above is based on the Group’s direct equity interest in AIS.
(2) ‘Others’ include adjustments to align the respective local accounting standards to SFRS(I).
“NA” denotes Not Applicable.
Notes:
(1) The above is based on the Group’s direct equity interest in AIS.
(2) ‘Others’ include adjustments to align the respective local accounting standards to SFRS(I).
The aggregate information of the Group’s investments in joint ventures which are not individually significant were as follows –
43. SIGNIFICANT CONTINGENT LIABILITIES OF ASSOCIATES AND JOINT VENTURES
(a) Airtel, a joint venture of the Group, has disputes with various government authorities in the respective jurisdictions where its operations are based, as well as with third parties regarding certain transactions entered into in the ordinary course of business.
On 8 January 2013, Department of Telecommunications (“DOT“) issued a demand on Airtel Group for Rs. 52.01 billion (S$816 million) towards levy of one time spectrum charge, which was further revised on 27 June 2018 to Rs. 84.14 billion (S$1.32 billion), excluding related interest. In the opinion of Airtel, the above demand amounts to alteration of the terms of the licences issued in the past. Airtel had filed a petition with the Hon’ble High Court of Bombay, which has directed DOT not to take any coercive action until the next date of hearing. The matter is currently pending with the Hon’ble High Court of Bombay.
On 4 July 2019, the Telecom Disputes Settlement and Appellate Tribunal in a similar matter of another unrelated telecom service provider, passed an order providing partial relief and confirming the basis for the balance of the one time spectrum charge. The said telecom service provider filed an appeal in the Hon’ble Supreme Court of India which was dismissed on 16 March 2020. With the ruling, Airtel Group has assessed and provided Rs. 18.08 billion (S$284 million) of the principal demand as well as the related interest. Notwithstanding this, Airtel Group intends to continue to pursue its legal remedies.
Other taxes, custom duties and demands under adjudication, appeal or disputes and related interest for some disputes as at 31 March 2025 amounted to approximately Rs. 172.7 billion (S$2.71 billion). In respect of some of the tax issues, pending final decisions, Airtel had deposited amounts with statutory authorities.
(b) AIS, a joint venture of the Group, has various commercial disputes and significant litigations which are pending adjudication.
National Telecom Public Company Limited (“NT“) has demanded that AIS pay the following:
- additional charges for porting of subscribers from 900MHz to 2100MHz network of THB 41.1 billion (S$1.62 billion) plus interest. In September 2023, the Central Administrative Court (“CAC“) supported the arbitration award which was in favor of AIS. In October 2023, NT appealed to the Supreme Administrative Court (“SAC“).
- additional revenue share of THB 62.8 billion (S$2.48 billion) arising from what NT claims to be an illegality of two amendments made to the Concession Agreement, namely, Amendment 6 (regarding reduction in prepaid revenue share rate) made in 2001 and Amendment 7 (regarding deduction of roaming expense from revenue share) made in 2002, which have resulted in lower revenue share. In January 2020, AIS received the award from the Arbitral Tribunal (“AT“) to pay THB 31.1 billion (S$1.23 billion) and 1.25% interest per month after 30 November 2015. In April 2020, AIS filed a motion to the CAC to set aside the award which was followed by NT’s appeal to the CAC to increase the award to THB 62.8 billion (S$2.48 billion). In July 2022, the CAC revoked the AT’s resolution and AIS is not required to pay the additional revenue share of THB 62.8 billion (S$2.48 billion). In August 2022, NT appealed to the SAC.
As at 31 March 2025, other claims against AIS and its subsidiaries which are pending adjudication amounted to THB 10.6 billion (S$420 million).
The above claims have not included potential interest and penalty.
AIS believes that the above claims will be settled in favour of AIS and will have no material impact to its financial statements.
(c) Globe, a joint venture of the Group, is contingently liable for various claims arising in the ordinary conduct of business and certain tax assessments which are either pending decision by the Courts or are being contested, the outcome of which are not presently determinable. In the opinion of Globe’s management and legal counsel, the eventual liability under these claims, if any, will not have a material or adverse effect on Globe’s financial position and results of operations.
In June 2016, the Philippine Competition Commission (“PCC“) claimed that the Joint Notice of Acquisition filed by Globe, PLDT Inc. (“PLDT“) and San Miguel Corporation (“SMC“) on the acquisition of SMC’s telecommunications business was deficient and cannot be claimed to be deemed approved. In July 2016, Globe filed a petition with the Court of Appeals of the Philippines (“CA“) to stop the PCC from reviewing the acquisition. In October 2017, the CA ruled in favour of Globe and PLDT, and declared the acquisition as valid and deemed approved. PCC subsequently elevated the case to the Supreme Court to review the CA’s rulings.
(d) As at 31 March 2025, Telkomsel, a joint venture of the Group, has filed appeals and cross-appeals amounting to approximately IDR 374 billion (S$30 million) for various tax claims arising in certain tax assessments which are pending final decisions, the outcome of which is not presently determinable.
Accounts examples 