Optus' One.Tel write-off: SingTel not put off

Singapore Telecommunications Ltd is not put off by Cable & Wireless Optus Ltd's A$68.3 million (US$35 million) write-off for debts owed by insolvent telco One.Tel Ltd.

SINGAPORE--Singapore Telecommunications Ltd is not put off by Cable & Wireless Optus Ltd's A$68.3 million (US$35 million) write-off for debts owed by insolvent telco One.Tel Ltd.

"This will be part of the goodwill if the Optus acquisition deal goes through," a SingTel spokesperson said in an email response Tuesday.

Optus is in the process of being bought over by Singapore Telecoms Ltd in a deal said to be worth A$17 billion (US$8.4 billion) .

The Australian telco's write-off for One.Tel follows a similar move by Telstra Corp, Australia's largest phone company, which wrote off a A$36 million (US$18.6 million) One.Tel debt earlier this month.

According to a Reuters report, Optus said the amount would be written off against profit.

One.Tel, which was in the red for up to A$862 million (US$446.1 million), declared itself insolvent on May 30, and appointed outside administrators.

"Optus will try to recover this money from One.Tel," the country's second largest telco said in a statement. "However, statements by the administrators indicate creditors cannot be certain of recovering any money owed."