What can Singtel expect from its acquistion of Trustwave?

The telco has been ramping up its cyber security.

Telco giant Singtel is making all the right moves as it invests and builds up its cyber security and ICT capabilities. OCBC Investment Research said this is evident from its strong enterprise revenue growth.

OCBC noted that while its acquistion of the cyber security firm Trustwave is expected to turn profitable only in a few years, it has a potential to be a significant growth driver of Singtel’s enterprise business over the medium-to-longer-term.

The brokerage firm also commended Singtel for the said initiatives, given that Singapore’s Committee on the Future Economy has identified building strong digital capabilities as one of the seven key economic strategies.

"With CFE recommending to develop the digital economy in Singapore on a national level, we expect Singtel to benefit from it over the longer term," OCBC said.

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