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BUSINESS REVIEW CONSUMER Mobile Revenue ($’m) At StarHub, everything we do is driven of StarHub TV+. Through this first- by a strong resolve to deliver superior to-market integrated entertainment value and unsurpassed satisfaction solution, our customers are empowered FY2020 579.7 to customers. with flexibility of choice over streaming services, apps, TV programmes and In FY2020, we made commendable popular OTT options on a single FY2019 765.5 strides with our transformation for hybrid platform. a new generation seeking quality communication, unsurpassed Our focus on innovation and entertainment and next-level digital transformation continues to elevate solutions. Our innovation and digital StarHub’s customer experience, Pay TV Revenue ($’m) strategies continue to pave the way for an important attribute vital to the new cost-effective and efficient ways competitiveness of our businesses. FY2020 187.9 of working in a digital world. Reinforced by a necessity brought about by COVID-19, we continued to enhance Leading with our foresight on new the customer journey and experience FY2019 248.0 technologies and emerging trends, on our digital touchpoints. During we marked our place in history as the the year, we saw over 12% growth in first telco to offer 5G Non-Standalone monthly active users on the My StarHub (“NSA”) services across Singapore in App, and a 32% increase in digital sales August 2020. With the introduction of transactions. We also achieved over 80% Broadband Revenue ($’m) 5G, we have sparked the technology accuracy as we continued to mature revolution of our era, ushering in our chatbot as an online touchpoint to FY2020 176.1 unprecedented speed and improved automate customer support. Through efficiency to support the creation of the simplification of the consumer FY2019 176.4 new user experiences. digital sales journey, we achieved up to 60% improvement in sales We made further inroads for our Pay conversion rate. TV transformation with the launch 34 STARHUB LTD STRATEGY Our endeavour to raise customer satisfaction at every touchpoint has positioned us as the provider of choice for quality and customer service. Having charted a significant improvement in FY2019, we continued to achieve 24.5% year-on-year incremental improvement REVIEW BUSINESS in NPS in FY2020. In the most recent Customer Satisfaction Index of Singapore (CSISG) study, satisfaction scores for StarHub’s Mobile and TV services rose in 2020 and are at the highest levels of any operator to-date. With this accolade, we have clinched top spot in Mobile as well as led in TV for seven consecutive years. GOVERNANCE MOBILE delivery of these key strategies will Moving forward, we are focused on allow us to prudently manage ARPUs the roll out of our ultra-fast, ultra- Our Mobile business continues to and improve the performance of our responsive 5G standalone service that be the largest revenue contributor. mobile business in an increasingly is expected to launch in FY2021, Although the market is becoming competitive market. delivering unprecedented speed, increasingly competitive, our position simplicity and instantaneity to remains resilient, supported by more 5G: A New Realm of Opportunity consumers across Singapore. than 1.4 million mobile subscribers who have chosen to stay with us for a At the launch of our 5G services in We expect consumer adoption of this differentiated customer experience September 2020, we were touted to have new technology to grow in tandem with and quality offering. the widest nationwide NSA network the maturity of the 5G ecosystem, driven SUSTAINABILITY coverage of over 70%. We are pleased to by the release of 5G handsets and With the onset of the COVID-19 pandemic share that the take-up rate for Mobile+ creation of unique 5G digital solutions in early FY2020, international business has exceeded internal expectations, that will significantly enhance the way travel and tourism dissipated overnight accelerated by the launch of popular we work, play, browse, game, watch as Singapore closed its borders. Postpaid 5G smartphones in 2H2020 and the and create on this new frequency. ARPU declined from $40 in FY2019 to value-add brought to consumers via $31 in FY2020 due to lower roaming our differentiated 5G plans. We have seen encouraging interest as revenue, VAS and excess data usage StarHub continues to play a vital role in while Prepaid revenue was impacted To differentiate our Mobile+ integrated educating the industry and community by a decrease in subscriber base due plan and provide customers with an about the potential of 5G technology. to overall drop in tourist arrivals and early teaser of the potential of the new During the year, we entered into an declines in ARPU from $13 to $11 year- technology, we tapped on our ability to exclusive 2-year partnership with FINANCIALS on-year. As a result, FY2020 mobile provide customers with cross-product NTUC, whose members comprise 30% revenues declined from $765.5 million in bundling, offering Mobile+ customers of Singapore’s workforce, to provide FY2019 to $579.7 million in FY2020. access to StarHub TV+ and Antstream 5G services and conduct webinars and Arcade to enable customers to experience seminars to educate and equip union Our Mobile business roadmap is built supercharged entertainment with members on the new technology. on three primary strategies: Capture zero lag on StarHub’s first-to-market StarHub’s Union specials have been emerging 5G opportunities; Drive digital 5G service. We will continue to seek well-received among members since innovation; and Optimise network more innovative partnerships with the start of the partnership in 2017, and experience for customers. Effective entertainment and gaming providers we count close to 70,000 NTUC union to differentiate our 5G offerings. members as our customers. Annual Report 2020 35 BUSINESS REVIEW CONSUMER This one-of-a-kind experience was the first in Singapore’s telecommunications industry, and exemplifies our ability to demonstrate the potential of our advanced technologies and introduce new-to-market product and services to enrich customers’ digital lifestyle. In January 2020, we became the first info-communications company in Singapore to offer Amazon Prime membership to our entire mobile customer base. The membership allows users to enjoy shopping and delivery, entertainment and gaming, enhancing Creating Value Through Digital To increase app engagement and customer experience. To enjoy the perks Innovation user retention, giga! had 40 app of membership, customers are required enhancements during the year. to activate their My StarHub App, a key Launched in FY2019, our giga! mobile We are encouraged that our drive digital touchpoint that we continue to digital brand delivers a simple and to continuously improve giga! was invest in and use to engage customers. seamless end-to-end digital experience recognised by the community with for customers. We designed the product remarkable app ratings achieved on Bringing digital innovation, convenience from a customer experience perspective Google Play, App Store, and Seedly. and greater value to StarHub customers, in the first instance, and the technology giga! continues hold the highest we partnered Pay2Home, a Singapore development ensued. This customer- NPS rating in the market. fintech and licensed major payment driven approach has provided us with institution to enable our mobile prepaid greater agility to respond quickly and Our focus on digital innovation continues customers to remit funds to over 40 maintain a deep engagement with to guide our engagements with countries using the StarHub Prepaid app. customers. customers. During the year, we thanked 12 of our most loyal customers for Optimising Network Experience giga! continues to appeal to the digital their longstanding support, with an community with first-in-market unprecedented Augmented Reality During the year, we continued to invest innovations such as fuss-free e-KYC ‘meet-and-greet’ delivery of the iPhone in and optimise our award-winning process and data rollover. Furthermore, 12 that was powered by 5G technology. network, a vital communication we leveraged data analytics to strike Being amongst the first in the world to infrastructure, which drives mobile a balance between value and price, receive the iPhone 12, these customers customer experience. allowing us to compete effectively in were greeted with a warm StarHub a crowded and fragmented SIM-only “Hello!” by 3D on-screen avatars of In a November 2020 market report1, market. For these reasons, our giga! StarHub’s Chief of Enterprise StarHub was named market leader in subscriber base has grown five times Business Group and Vice President providing Video, Voice, Gaming, over the past year, with a majority from of Mobile Marketing. 4G Coverage and Upload speed port-in subscribers. experience. We were also named winner of the Download Speed Experience award having achieved average overall download speed which was 8.6% or 4.5 Mbps above our previous high, providing us with an impressive margin of 7 Mbps over our nearest competitor. 1 “Singapore Mobile Network ExperienceReport”, Opensignal.com, November 2020 2 “IMDA IMConnected H1 2020”, Infocomm Media Development Authority, Singapore 36 STARHUB LTD STRATEGY Our high-performance network was again recognised when we were named Singapore’s fastest Telco in IMDA’s IMConnected report2. We clocked the fastest mobile data speed with 23.4 Mbps median throughput compared with 22.8 Mbps for our nearest REVIEW BUSINESS competitor