Singapore Telecommunications Ltd., the largest telephone company in South-East Asia slumped into a second quarter drop in its net profit by 12.1 percent owing to strong local currency and rollout costs for the launch of Apple''s 3G iPhone.

SingTel on Wednesday said its net profit for the second quarter ended 31 September, came down to 868 million Singapore dollars, from 988 million dollars in the same period the year before.

“Our expansion in the region subjects us to the volatility of the regional currencies. A stronger Singapore dollar reduces our mobile associates' earnings,” said SingTel's group chief executive officer Chua Sock Koong.

Its operating revenues were up 5.3 percent to 3.89 billion dollars from 3.69 billion dollars last year, said the company.

With the debut of iPhone in Singapore and Australia, the company felt multiple waves with its operating expenses soaring up by 18 percent to 834 million dollars and its EBIDTA down by approximately 27 million Singapore.

Meanwhile, SingTel’s wholly-owned subsidiary Optus has announced moves to cease further hiring to grapple with the economic downturn.