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INDUSTRY PROFILE
Fixed Line Telecoms in Singapore

Reference Code: 0116-2233 Publication Date: October 2011
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Singapore - Fixed Line Telecoms

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EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Market value
The Singaporean fixed line telecoms market grew by 2% in 2010 to reach a value of $2,473.7 million.
Market value forecast

In 2015, the Singaporean fixed line telecoms market is forecast to have a value of $2,541.9 million, an increase of 2.8% since 2010.
Market volume
The Singaporean fixed line telecoms market grew by 6.6% in 2010 to reach a volume of 2,020,527 fixed line telephones.
Market volume forecast

In 2015, the Singaporean fixed line telecoms market is forecast to have a volume of 1,982,876 fixed line telephones, a decrease of 1.9% since 2010.
Market segmentation I
Voice only is the largest segment of the fixed line telecoms market in Singapore, accounting for 57.3% of the market's total value.
Market segmentation II
Singapore accounts for 1.3% of the Asia-Pacific fixed line telecoms market value.
Market share
SingTel is the leading player in the Singaporean fixed line telecoms market, generating a 74% share of the market's value.
Market rivalry
The fixed-line telecommunications market in Singapore is saturated and still dominated by two players: StarHub and SingTel. This oligopoly and the stagnation of the market not discourage potential new entrants and increase the rivalry level.

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CONTENTS
TABLE OF CONTENTS
EXECUTIVE SUMMARY MARKET OVERVIEW Market definition Research highlights Market analysis MARKET VALUE MARKET VOLUME MARKET SEGMENTATION I MARKET SEGMENTATION II MARKET SHARE FIVE FORCES ANALYSIS Summary Buyer power Supplier power New entrants Substitutes Rivalry LEADING COMPANIES SingTel Group StarHub MARKET FORECASTS Market value forecast Market volume forecast MACROECONOMIC INDICATORS 2 7 7 8 9 10 11 12 13 14 15 15 16 17 18 19 20 21 21 26 30 30 31 32

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CONTENTS
APPENDIX Methodology Industry associations Related Datamonitor research Disclaimer ABOUT DATAMONITOR Premium Reports Summary Reports Datamonitor consulting
34 34 35 35 36 37 37 37 37

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CONTENTS
LIST OF TABLES
Table 1: Table 2: Table 3: Table 4: Table 5: Table 6: Table 7: Table 8: Table 9: Table 10: Table 11: Table 12: Table 13: Table 14: Table 15: Table 16: Table 17: Table 18: Table 19: Table 20: Table 21: Singapore fixed line telecoms market value: $ million, 200610 Singapore fixed line telecoms market volume: fixed line telephones, 200610 Singapore fixed line telecoms market segmentation I:% share, by value, 2010 Singapore fixed line telecoms market segmentation II: % share, by value, 2010 Singapore fixed line telecoms market share: % share, by value, 2010 SingTel Group: key facts SingTel Group: key financials ($) SingTel Group: key financials (Si$) SingTel Group: key financial ratios StarHub: key facts StarHub: key financials ($) StarHub: key financials (Si$) StarHub: key financial ratios Singapore fixed line telecoms market value forecast: $ million, 201015 Singapore fixed line telecoms market volume forecast: fixed line telephones, 201015 Singapore size of population (million), 200610 Singapore gdp (constant 2000 prices, $ billion), 200610 Singapore gdp (current prices, $ billion), 200610 Singapore inflation, 200610 Singapore consumer price index (absolute), 200610 Singapore exchange rate, 200610 10 11 12 13 14 21 23 24 24 26 27 28 28 30 31 32 32 32 33 33 33

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CONTENTS
LIST OF FIGURES
Figure 1: Figure 2: Figure 3: Figure 4: Figure 5: Figure 6: Figure 7: Figure 8: Figure 9: Singapore fixed line telecoms market value: $ million, 200610 Singapore fixed line telecoms market volume: fixed line telephones, 200610 Singapore fixed line telecoms market segmentation I:% share, by value, 2010 Singapore fixed line telecoms market segmentation II: % share, by value, 2010 Singapore fixed line telecoms market share: % share, by value, 2010 Forces driving competition in the fixed line telecoms market in Singapore, 2010 Drivers of buyer power in the fixed line telecoms market in Singapore, 2010 Drivers of supplier power in the fixed line telecoms market in Singapore, 2010 Factors influencing the likelihood of new entrants in the fixed line telecoms market in Singapore, 2010 Factors influencing the threat of substitutes in the fixed line telecoms market in Singapore, 2010 Drivers of degree of rivalry in the fixed line telecoms market in Singapore, 2010 SingTel Group: revenues & profitability SingTel Group: assets & liabilities StarHub: revenues & profitability StarHub: assets & liabilities Singapore fixed line telecoms market value forecast: $ million, 201015 Singapore fixed line telecoms market volume forecast: fixed line telephones, 201015 10 11 12 13 14 15 16 17
18
Figure 10:
19 20 25 25 29 29 30 31
Figure 11: Figure 12: Figure 13: Figure 14: Figure 15: Figure 16: Figure 17:

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MARKET OVERVIEW
MARKET OVERVIEW
Market definition
The fixed-line telecommunications market is valued as the revenues obtained by operators for voice telephony and other non-voice information transmission using fixed lines (wirelines), rather than wireless systems. Only revenues from end-users are included, with revenues from other operators, as in wholesale transactions, excluded. Revenues from internet services and value-added services are included. Market volumes are for the number of fixed-line telephones. All currency conversions were carried out at constant 2010 average annual exchange rates. For the purposes of this report, Asia-Pacific comprises Australia, China, India, Indonesia, Japan, New Zealand, Singapore, South Korea, Taiwan, and Thailand.

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MARKET OVERVIEW
Research highlights
The Singaporean fixed line telecoms market had total revenue of $2.5 billion in 2010, representing a compound annual rate of change (CARC) of -0.5% between 2006 and 2010. Fixed line telephones volumes increased with a CAGR of 2.2% between 2006 and 2010, to reach a total of 2 million fixed line telephones in 2010. The performance of the market is forecast to accelerate, with an anticipated CAGR of 0.5% for the fiveyear period 2010 - 2015, which is expected to drive the market to a value of $2.5 billion by the end of 2015.

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MARKET OVERVIEW
Market analysis
After a period of contractions in value, the Singaporean fixed line telecoms market recovered this year at only a moderate rate. Futrther contractions are expected in the forecast period, intertwined with only a marginal growth. The Singaporean fixed line telecoms market had total revenue of $2.5 billion in 2010, representing a compound annual rate of change (CARC) of -0.5% between 2006 and 2010. In comparison, the Chinese and South Korean markets grew with compound annual growth rates (CAGRs) of 5% and 0.6% respectively, over the same period, to reach respective values of $52.3 billion and $11.9 billion in 2010. Fixed line telephones volumes increased with a CAGR of 2.2% between 2006 and 2010, to reach a total of 2,020.5 thousand fixed line telephones in 2010. The market's volume is expected to fall to 1,982.9 thousand fixed line telephones by the end of 2015, representing a CARC of -0.4% for the 2010-2015 period. The voice only segment was the market's most lucrative in 2010, with total revenue of $1.4 billion, equivalent to 57.3% of the market's overall value. The non-voice segment contributed revenue of $1.1 billion in 2010, equating to the remaining 42.7% of the market's aggregate value. The performance of the market is forecast to accelerate, with an anticipated CAGR of 0.5% for the fiveyear period 2010 - 2015, which is expected to drive the market to a value of $2.5 billion by the end of 2015. Comparatively, the Chinese markets will increase with a CAGR of 1%, and the South Korean market will decline with a CARC of -1%, over the same period, to reach respective values of $55 billion and $11.3 billion in 2015.

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MARKET VALUE
MARKET VALUE
The Singaporean fixed line telecoms market grew by 2% in 2010 to reach a value of $2,473.7 million. The compound annual rate of change of the market in the period 200610 was -0.5%. Table 1: Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor Singapore fixed line telecoms market value: $ million, 200610 $ million 2,522.4 2,459.7 2,445.2 2,425.4 2,473.7 Si$ million 3,439.8 3,354.3 3,334.5 3,307.5 3,373.4 million 1,900.1 1,852.9 1,842.0 1,827.0 1,863.4 % Growth (2.5%) (0.6%) (0.8%) 2.0% (0.5%) DATAMONITOR
Figure 1:
Singapore fixed line telecoms market value: $ million, 200610
Source: Datamonitor
DATAMONITOR

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MARKET VOLUME
MARKET VOLUME
The Singaporean fixed line telecoms market grew by 6.6% in 2010 to reach a volume of 2,020,527 fixed line telephones. The compound annual growth rate of the market in the period 200610 was 2.2%. Table 2: Year 2006 2007 2008 2009 2010 CAGR: 200610 Source: Datamonitor Singapore fixed line telecoms market volume: fixed line telephones, 200610 fixed line telephones 1,852,989.0 1,858,383.0 1,872,848.0 1,895,288.0 2,020,527.0 % Growth 0.3% 0.8% 1.2% 6.6% 2.2% DATAMONITOR
Figure 2:
Singapore fixed line telecoms market volume: fixed line telephones, 200610
Source: Datamonitor
DATAMONITOR

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MARKET SEGMENTATION I
MARKET SEGMENTATION I
Voice only is the largest segment of the fixed line telecoms market in Singapore, accounting for 57.3% of the market's total value. The non-voice segment accounts for the remaining 42.7% of the market. Table 3: Category voice only non-voice Total Source: Datamonitor Singapore fixed line telecoms market segmentation I:% share, by value, 2010 % Share 57.3% 42.7% 100% DATAMONITOR
Figure 3:
Singapore fixed line telecoms market segmentation I:% share, by value, 2010
Source: Datamonitor
DATAMONITOR

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MARKET SEGMENTATION II
MARKET SEGMENTATION II
Singapore accounts for 1.3% of the Asia-Pacific fixed line telecoms market value. Japan accounts for a further 50.9% of the Asia-Pacific market. Table 4: Category Japan China South Korea Taiwan Singapore Rest of Asia-Pacific Total Source: Datamonitor Singapore fixed line telecoms market segmentation II: % share, by value, 2010 % Share 50.9% 28.1% 6.4% 1.8% 1.3% 11.5% 100% DATAMONITOR
Figure 4:
Singapore fixed line telecoms market segmentation II: % share, by value, 2010
Source: Datamonitor
DATAMONITOR

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MARKET SHARE
MARKET SHARE
SingTel is the leading player in the Singaporean fixed line telecoms market, generating a 74% share of the market's value. StarHub accounts for a further 16.8% of the market. Table 5: Company SingTel StarHub Other Total Source: Datamonitor Singapore fixed line telecoms market share: % share, by value, 2010 % Share 74.0% 16.8% 9.2% 100% DATAMONITOR
Figure 5:
Singapore fixed line telecoms market share: % share, by value, 2010
Source: Datamonitor
DATAMONITOR

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FIVE FORCES ANALYSIS

The fixed line telecoms market will be analyzed taking operators for voice telephony and other non - voice information transmission using fixed lines as players. The key buyers will be taken as non-wholesale endusers, and companies/owners who provide networks as the key suppliers.
Summary
Figure 6: Forces driving competition in the fixed line telecoms market in Singapore, 2010
Source: Datamonitor
DATAMONITOR
The fixed line telecoms market has entered a period of stagnation in Singapore. The increasing popularity and convenience of mobile technology is expected to increase the penetration level in the next few years. The market player usually owns and operates own physical network (exchanges, fiber optic cables etc.). Such a player is termed an 'asset-based carrier' (ABC) or 'facilities-based carrier'. The number of suppliers is rather low as few companies have the necessary ability to supply complex, reliable, and geographically extensive networks. The threat of substitutes for fixed line telecoms is high and ever increasing. Mobile phones and Internet applications, particularly Voice over Internet Protocol (VoIP) applications, offer viable and affordable alternatives for consumers. Rivalry is strong in the fixed line telecoms market as end-user switching costs are not prohibitive and fixed-line telecom services are not strongly differentiated leaving companies fighting for their market share.

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Buyer power
Figure 7: Drivers of buyer power in the fixed line telecoms market in Singapore, 2010
Source: Datamonitor
DATAMONITOR
The telecom market is characterized by a large number of final buyers, both individual and commercial and the need of the services for their business. Such dependence weakens buyer power, as the loss of a single customer will not impact greatly on market players as well as the relative importance of having the fixed line telecom services provided. This is, however, offset somewhat by the ever increasing threat of substitutes such as mobile phones, which have become much more affordable in recent years. This makes fixed line communication more dispensable. Nevertheless, market players search for profit by diversifying their services and offering data transition, which still has comparative advantages. Buyers do not tend to incur large switching costs should they choose to change providers, although they are now sometimes locked into a contract for a set period of time. If this is the case, they may have to pay to break the deal. Customer loyalty is low as buyers are price driven and the service provided is rather undifferentiated which tends to strengthens buyer power. Overall, buyer power is assessed as moderate.

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Supplier power
Figure 8: Drivers of supplier power in the fixed line telecoms market in Singapore, 2010
Source: Datamonitor
DATAMONITOR
The supplier power in this market is assessed as moderate overall. This is down to the fact that the major providers tend to own a substantial proportion of the network. These large market players are termed as an asset-based carrier (ABC), and their suppliers are usually large companies. Due to the specific ability to supply complex, reliable and geographically extensive networks in most of the countries there is usually only one supplier. Alternatively, a so-called 'virtual network operator' (VNO) may offer telecoms services by purchasing access to an ABC's hardware. Their suppliers are network owners which once again are large companies with an extensive degree of fixed line penetration and substantial negotiating power. Switching costs with this market are often high as exiting long term supply contracts can be difficult. This is mitigated to some degree by the fact that specialized suppliers are dependent on the income from the fixed line telecoms industry.

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New entrants
Figure 9: Factors influencing the likelihood of new entrants in the fixed line telecoms market in Singapore, 2010
Source: Datamonitor
DATAMONITOR
The maturity of the market and the level of penetration are decisive factors for new entrants. In the Singaporean developing market the threat of new entrants is higher as potential entrants are not forced to compete with incumbents to some extent. Switching costs between providers are low and the services provided by fixed-line telecom companies are less likely to be differentiated, meaning competition from substitute providers is a probability. However, the market players focus more on data service rather than voice as main source of profits, differentiating the offer to some extent. Furthermore, established companies hold dominance, meaning that new entrants can face uninviting total revenue performance. Sluggish growth in recent years and the prospect of stagnation, together with the increasing threat of the substitute in the fixed-line telecommunications markets, lessens the appeal to prospective new entrants. Overall the threat of new entrants into the fixed-line telecoms market is moderate.

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Substitutes
Figure 10: Factors influencing the threat of substitutes in the fixed line telecoms market in Singapore, 2010
Source: Datamonitor
DATAMONITOR
Within the fixed line telecoms market there is a large degree of threat from substitutes. Mobile phone companies along with internet service providers now offer buyers unlimited prepaid plans with wireless capabilities which prove to be financially rewarding and convenient for on the go customers. The providers of fixed line services are more inclined to move their operations towards data transferring offers and broadband, which is believed to be the future in the fixed line market. The mobile phone companies put the stress on the growth of Voice over Internet Protocol (VoIP) applications. However, larger fixed-line telecoms companies often offer these services themselves, reducing the threat of substitutes from other service providers. Moreover, the fixed line operators are looking for the extra profit in the data services. Overall the threat of substitutes is assessed as strong.

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Rivalry
Figure 11: Drivers of degree of rivalry in the fixed line telecoms market in Singapore, 2010
Source: Datamonitor
DATAMONITOR
Rivalry is strong in the fixed line telecoms markets. Although the market is dominated by two major market players there are about 40 companies providing VoIP (Voice over Internet Protocol) and over 430 firms specialized in voice services offering Internet-based voice and data services and international calling-card services. The ever-increasing popularity of mobile technology, which can be a perfect substitute for traditional fixed line infrastructure, is one reason for this as it has slowed market growth. Customers choose the convenience of mobility and in many cases not losing the any of the technical features of fixed line. Moreover, low switching costs and the similar nature of most fixed line companies leave them fighting for their market share. Price wars are also common in this area. Rivalry may be even fiercer as the market is forecast to decline slowly but gradually, putting more pressure on market players. Broadband penetration is expected to continue to grow, offsetting the decline in voice income. However, the growth is not believed to be strong enough to pull the market from decline.

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LEADING COMPANIES
LEADING COMPANIES
SingTel Group
Table 6: SingTel Group: key facts 31 Exeter Road, 19-00 Comcentre, Singapore 239732, SGP 65 6838 3388 65 6732 8428 www.singtel.com March Z74, SGT Singapore, Australia DATAMONITOR
Head office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange: Source: company website
Singapore Telecommunications (SingTel or "the group") is one of the largest communications service providers in the Asia Pacific region. The group provides voice and data services, wireless and internet services. It also provides satellite communication services and information and communication technology (ICT) solutions. The group has operations and investments in more than 19 countries and territories across Asia Pacific, Europe and the US, with major operations in Singapore and Australia (SingTel Optus). The group operates through three business segments: Singapore, Australia, and Associates and Joint Ventures (Assoc & JV). Singapore business represents the services and products provided by SingTel and its subsidiaries (excluding Optus). In Singapore the group's major subsidiaries include SingTel Mobile, NCS, SingNet, SingTel Digital Media and Singapore Post. SingTel Mobile is the market leader in Singapore with about 3 million customers. It also offers mobile broadband internet access over its High Speed Packet Access (HSPA) or 3.5G network. SingTel Mobile offers a suite of mobile content and applications under the IDEAS brand including updated news, sports and finance information, music, mobile TV, games and more. SingTel Mobile also distributes the Apple iPhone in Singapore and the HTC Dream by Google in Asia.

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LEADING COMPANIES
NCS is a prominent regional infocomm technology solutions provider with 18 offices across 10 countries in the Asia Pacific and Middle East. It offers a range of services, including consulting, development and integration, managed services, and technology solutions. NCS offers services to the clients of education, financial services and insurance, healthcare and life sciences, homeland security, manufacturing and logistics, telecommunications and utilities, and transportation sectors. SingNet is the leading internet service provider in Singapore. It provides a range of internet services with different usage plans to individual and business users. SingNet offers broadband services using ADSL technology. It also offers supplementary email accounts, child-friendly services and movie-on-demand to its users. With SingNet Wireless Surf, it provides customers with broadband wireless access using their laptop and wireless LAN cards at more than 300 SingTel Wireless Surf Zones. SingTel Digital Media (STDM) manages Singapore's premier web and mobile lifestyle destination, inSing.com, which focuses on hyper-local content, user reviews and editorials. Its local search engine also enables users to find a business or service from over 100,000 listings of businesses in Singapore. The group's Singapore operations also include its local associate, Singapore Post (SingPost), which is postal operator with presence across 10 countries/territories in Asia. It also provides mail and logistics services in the domestic market, with global reach to more than 220 territories/countries. SingPost offers domestic and international postal services as well as end-to-end mail solutions including data printing, letter-shopping, delivery and mailroom management. Australia business manages the services and products provided by Optus, a wholly-owned subsidiary of the group located in Australia. The group's Australian business includes its major subsidiary, Optus, which is an integrated communications provider. The company offers a range of communications services including mobile, national and long distance services, local telephony, business network services, internet and satellite services, as well as subscription television. The main services and products provided by both Singapore and Australia businesses are categorized as: Mobile communications, data and internet, information technology and engineering, national telephone, sale of equipment, international telephone, pay television, and others. SingTel's Assoc & JV business includes its investments in associated and joint venture companies, which mainly comprise Advanced Info Service Public (AIS) in Thailand; Bharti Airtel in India; Globe Telecom in Philippines; PT Telekomunikasi Selular (Telkomsel) in Indonesia; Pacific Bangladesh Telecom (PBTL) in Bangladesh; and Warid Telecom in Pakistan. AIS is the largest mobile communications operator in Thailand with 29.5 million mobile subscribers as of March 21010.
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LEADING COMPANIES
Bharti Airtel is a leading provider of telecommunications services in India. It offers mobile, fixed-line, long distance, broadband, enterprise services and digital TV through IPTV and DTH. As of March 2010, Bharti Airtel had 127.6 million mobile subscribers. Globe Telecom is one of the largest mobile communications services providers in the Philippines. It is listed on the Philippine Stock Exchange. It had 23.9 million mobile subscribers as of March 2010. Telkomsel is the leading operator of cellular telecommunications services in Indonesia, with over 29,000 radio base stations providing nationwide coverage. As of March 2010, Telkomsel had 82 million mobile subscribers. PBTL is the only CDMA operator in Bangladesh, having 1.9 million mobile subscribers as of March 2010. Warid Telecom is a telecommunications company, offering GSM-based mobile services in Pakistan, Azad Jammu and Kashmir, and the Northern areas. It had 16.3 million mobile subscribers as of March 2010. Key Metrics The company recorded revenues of $12,371 million in the fiscal year ending March 2010, an increase of 13% compared to fiscal 2009. Its net income was $2,865 million in fiscal 2010, compared to a net income of $2,529 million in the preceding year.
Table 7: $ million
SingTel Group: key financials ($) 2006 9,634.0 3,052.7 24,643.1 9,175.7 2007 9,809.2 2,771.0 23,948.3 8,659.1 2008 10,885.3 2,904.0 25,455.8 10,054.9 2009 10,951.0 2,529.3 24,385.5 9,352.7 2010 12,370.7 2,865.0 28,805.2 10,949.5
Revenues Net income (loss) Total assets Total liabilities Source: company filings
DATAMONITOR

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LEADING COMPANIES
Table 8: Si$ million
SingTel Group: key financials (Si$) 2006 13,138.0 4,163.0 33,606.0 12,513.0 2007 13,376.9 3,778.8 32,658.5 11,808.5 2008 14,844.4 3,960.2 34,714.3 13,712.0 2009 14,934.0 3,449.2 33,254.7 12,754.4 2010 16,870.0 3,907.0 39,282.0 14,932.0
DATAMONITOR
Table 9: Ratio
SingTel Group: key financial ratios 2006 31.7% 4.1% (4.9%) (22.0%) 37.2% 12.1% 2007 28.2% 1.8% (2.8%) (5.6%) 36.2% 11.4% 2008 26.7% 11.0% 6.3% 16.1% 39.5% 11.8% 2009 23.1% 0.6% (4.2%) (7.0%) 38.4% 10.1% 2010 23.2% 13.0% 18.1% 17.1% 38.0% 10.8%
Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Source: company filings
DATAMONITOR

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LEADING COMPANIES
Figure 12: SingTel Group: revenues & profitability
Source: company filings
DATAMONITOR
Figure 13: SingTel Group: assets & liabilities
DATAMONITOR

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LEADING COMPANIES
StarHub
Table 10: Head office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange: Source: company website StarHub: key facts 67 Ubi Avenue 1, 05-01 StarHub Green, Singapore City 408942, SGP 65 6825 5000 65 6721 5000 www.starhub.com December CC3 Singapore DATAMONITOR
StarHub is a Singapore-based info-communications company, which provides information, communication and entertainment services to the consumer and corporate sectors. It also offers a range of data, voice and wholesale services through its business network. The company operates a two-way HSPA (high speed packet access) mobile network, and a HFC (hybrid fiber-coaxial) network to offer multichannel cable TV (television) services and residential broadband services. StarHub primarily operates in Singapore. The company operates in three divisions: personal solutions, home solutions and business solutions. The personal solutions division provides mobile, wireless broadband, IDD (international direct dialing), and pfingo (phone, freedom, Internet, on the go) services. The mobile services include pre-paid SIM service, BlackBerry e-mail service, mobile broadband service, mobile data service, mobile call services through home broadband cable connection, and international roaming services. The company offers wireless broadband services throughout Singapore with internet access in malls, expos, coffee outlets and airport terminals. It provides wireless broadband international roaming services across Australia, Japan, Malaysia, the UK, and the US. StarHub's IDD offerings include the StarHub IDD 008 and IDD 018 services, HomeConnect (pre-paid IDD card) and the StarHub International Calling Card (post-paid IDD card). The company's pfingo (phone, freedom, Internet, on the go) is a VoIP (voice over internet protocol) service that enables users to make and receive local and overseas calls from their computer or session initiation protocol (SIP) enabled mobile phones. The company's pfingo services include SMS (short message service), fax, free push email, multi-headed chat, and foreign number services.

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LEADING COMPANIES
The home solutions division provides pay TV, residential broadband, residential voice and other online services. The pay TV offers a range of international channels of news, movies, entertainment, sports, music and education, and seven local free-to-air channels. It also provides demand TV, comprising videoon-demand and six on demand channels. The company's residential broadband services include a range of access plans including MaxOnline Premium, MaxOnline Express, MaxOnline SurfLite, and MaxOnline FlexiSurf. The company also provides a broadband TV service, StarHub TV Online, which offers broadcast quality pay TV content on MaxOnline-connected computer. StarHub's residential voice is a personal fixed line voice service delivered over the company's broadband cable network. The home solutions division's other online services include an online music portal, e-mail service, content filtering service and online storage service. The business solutions division offers a range of services for businesses including business voice and IDD services, data services, IP (internet protocol)/Internet services, global managed services, global conferencing services, and international wholesale voice services. StarHub operates through its subsidiaries, which include the following: StarHub Cable Vision, StarHub Mobile, StarHub Internet, StarHub Online and Nucleus Connect. Key Metrics The company recorded revenues of $1,641 million in the fiscal year ending December 2010, which was within 0.1% of the revenue in fiscal 2009. Its net income was $193 million in fiscal 2010, compared to a net income of $235 million in the preceding year.
Table 11: $ million
StarHub: key financials ($) 2006 1,476.9 242.0 1,260.9 1,181.9 2007 1,560.2 228.3 1,218.2 1,139.0 2008 1,576.6 234.7 1,270.5 1,178.3 2009 1,641.1 234.7 1,270.5 1,178.3 2010 1,641.1 193.0 1,315.2 1,315.2
DATAMONITOR

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LEADING COMPANIES
Table 12: Si$ million
StarHub: key financials (Si$) 2006 2,014.0 330.0 1,719.5 1,611.8 2007 2,127.6 311.3 1,661.3 1,553.2 2008 2,150.0 320.0 1,732.6 1,606.8 2009 2,238.0 320.0 1,732.6 1,606.8 2010 2,238.0 263.2 1,793.5 1,793.5
DATAMONITOR
Table 13: Ratio
StarHub: key financial ratios 2006 16.4% 11.6% (0.4%) 30.1% 93.7% 19.2% 2007 14.6% 5.6% (3.4%) (3.6%) 93.5% 18.4% 2008 14.9% 1.1% 4.3% 3.5% 92.7% 18.9% 2009 14.3% 4.1% 0.0% 0.0% 92.7% 18.5% 2010 11.8% 0.0% 3.5% 11.6% 100.0% 14.9%
Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Source: company filings
DATAMONITOR

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LEADING COMPANIES
Figure 14: StarHub: revenues & profitability
DATAMONITOR
Figure 15: StarHub: assets & liabilities
DATAMONITOR

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MARKET FORECASTS
MARKET FORECASTS
Market value forecast
In 2015, the Singaporean fixed line telecoms market is forecast to have a value of $2,541.9 million, an increase of 2.8% since 2010. The compound annual growth rate of the market in the period 201015 is predicted to be 0.5%. Table 14: Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor Singapore fixed line telecoms market value forecast: $ million, 201015 $ million 2,473.7 2,498.3 2,514.1 2,507.4 2,482.1 2,541.9 Si$ million 3,373.4 3,406.9 3,428.5 3,419.4 3,384.9 3,466.4 million 1,863.4 1,881.9 1,893.8 1,888.8 1,869.7 1,914.8 % Growth 2.0% 1.0% 0.6% (0.3%) (1.0%) 2.4% 0.5% DATAMONITOR
Figure 16: Singapore fixed line telecoms market value forecast: $ million, 201015
Source: Datamonitor
DATAMONITOR

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MARKET FORECASTS
Market volume forecast

In 2015, the Singaporean fixed line telecoms market is forecast to have a volume of 1,982,876 fixed line telephones, a decrease of 1.9% since 2010. The compound annual rate of change of the market in the period 201015 is predicted to be -0.4%. Table 15: Year 2010 2011 2012 2013 2014 2015 CAGR: 201015 Source: Datamonitor Singapore fixed line telecoms market volume forecast: fixed line telephones, 201015 fixed line telephones 2,020,527.0 2,127,289.0 2,080,475.0 2,040,130.0 2,007,541.0 1,982,876.0 % Growth 6.6% 5.3% (2.2%) (1.9%) (1.6%) (1.2%) (0.4%) DATAMONITOR
Figure 17: Singapore fixed line telecoms market volume forecast: fixed line telephones, 201015
Source: Datamonitor
DATAMONITOR

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MACROECONOMIC INDICATORS
Table 16: Year 2006 2007 2008 2009 2010 Source: Datamonitor Singapore size of population (million), 200610 Population (million) 4.4 4.6 4.8 5.0 5.1 % Growth 3.2% 4.3% 5.5% 3.1% 1.8% DATAMONITOR
Table 17: Year 2006 2007 2008 2009 2010
Singapore gdp (constant 2000 prices, $ billion), 200610 Constant 2000 Prices, $ billion 129.0 140.4 142.5 141.4 161.8 % Growth 8.7% 8.8% 1.5% (0.8%) 14.5% DATAMONITOR
Source: Datamonitor
Table 18: Year 2006 2007 2008 2009 2010
Singapore gdp (current prices, $ billion), 200610 Current Prices, $ billion 145.9 170.9 196.9 191.2 240.0 % Growth 15.0% 17.1% 15.3% (2.9%) 25.6% DATAMONITOR
Source: Datamonitor

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Table 19: Year 2006 2007 2008 2009 2010
Singapore inflation, 200610 Inflation Rate (%) 1.0% 2.1% 6.6% 0.6% 2.8% DATAMONITOR
Source: Datamonitor
Table 20: Year 2006 2007 2008 2009 2010
Singapore consumer price index (absolute), 200610 Consumer Price Index (2000 = 100) 104.2 106.4 113.4 114.1 117.3 DATAMONITOR
Source: Datamonitor
Table 21: Year 2006 2007 2008 2009 2010
Singapore exchange rate, 200610 Exchange rate ($/Si$) 1.5894 1.5072 1.4156 1.4558 1.3637 Exchange rate (/Si$) 1.9942 2.0623 2.0713 2.0243 1.8103 DATAMONITOR
Source: Datamonitor

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APPENDIX
APPENDIX
Methodology
Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-checked and presented in a consistent and accessible style. Review of in-house databases Created using 250,000+ industry interviews and consumer surveys and supported by analysis from industry experts using highly complex modeling & forecasting tools, Datamonitors in-house databases provide the foundation for all related industry profiles Preparatory research We also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview Definitions Market definitions are standardized to allow comparison from country to country. The parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends Datamonitor aggregates and analyzes a number of secondary information sources, including: National/Governmental statistics International data (official international sources) National and International trade associations Broker and analyst reports Company Annual Reports Business information libraries and databases
Modeling & forecasting tools Datamonitor has developed powerful tools that allow quantitative and qualitative data to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can then be refined according to specific competitive, regulatory and demand-related factors Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

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APPENDIX
Industry associations
International Telecommunication Union (ITU) Place des Nations, 1211 Geneva 20, Switzerland Tel.: 41 22 730 5111 Fax: 41 22 733 7256 www.itu.int International Telecommunications Society 329 Wallston Road, Tenants Harbor, ME 04860, USA Tel.: 1 207 372 6241 www.itsworld.org
Related Datamonitor research

Industry Profile Global Fixed Line Telecoms Fixed Line Telecoms in Asia-Pacific Fixed Line Telecoms in Japan Fixed Line Telecoms in Mexico Fixed Line Telecoms in India Fixed Line Telecoms in South Korea Fixed Line Telecoms in Australia Fixed Line Telecoms in Brazil Fixed Line Telecoms in Russia Fixed Line Telecoms in Singapore Fixed Line Telecoms in Sweden Fixed Line Telecoms in Taiwan

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APPENDIX
Disclaimer
All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Datamonitor plc. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Datamonitor can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

0116 - 2233 - 2010 Page 36
ABOUT DATAMONITOR
ABOUT DATAMONITOR
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INDUSTRY PROFILE

Fixed Line Telecoms in Singapore

t: +61 2 8705 6900 f: +61 2 8705 6901 e: apinfo@datamonitor.com

Singapore - Fixed Line Telecoms

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Market value forecast

Market volume forecast

Singapore - Fixed Line Telecoms

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Singapore - Fixed Line Telecoms

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Singapore - Fixed Line Telecoms

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Singapore - Fixed Line Telecoms

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Singapore - Fixed Line Telecoms

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Singapore fixed line telecoms market value: $ million, 200610

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Singapore - Fixed Line Telecoms

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Singapore fixed line telecoms market share: % share, by value, 2010

Singapore - Fixed Line Telecoms

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FIVE FORCES ANALYSIS

FIVE FORCES ANALYSIS

Singapore - Fixed Line Telecoms

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FIVE FORCES ANALYSIS

Singapore - Fixed Line Telecoms

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FIVE FORCES ANALYSIS

Singapore - Fixed Line Telecoms

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FIVE FORCES ANALYSIS

Singapore - Fixed Line Telecoms

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FIVE FORCES ANALYSIS

Singapore - Fixed Line Telecoms

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FIVE FORCES ANALYSIS

Singapore - Fixed Line Telecoms

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Singapore - Fixed Line Telecoms

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Singapore - Fixed Line Telecoms

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Table 8: Si$ million

Singapore - Fixed Line Telecoms

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Figure 12: SingTel Group: revenues & profitability