07 FY14 Business Reviews.Pdf
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& SingTel BUSIness sustaINABILITY ADDITIONAL OVERVIEW REVIEW AND GOVERNANCE PERFORMANCE FINANCIALS INFORMatION 17 ANNUAL REPORT 2014 Business Review Group Consumer A QUICK READ MARKET TRENDS OUR ASSETS/STRENGTHS Customers’ relationships with their In FY2014, we invested S$2.1 billion Group Consumer comprises a number telcos have been redefined by the in our networks in Singapore and of consumer-related brands in both proliferation of mobile devices, richer Australia, and this amount will developed and emerging markets: content and apps by over-the-top increase to S$2.3 billion as we make (OTT) players. Telcos are seeking new further network enhancements for • As a Group, we serve over half ways to maintain their relevance with FY2015. Payments for spectrum a billion mobile customers across customers who are less reliant on costs will also rise to S$900 million Asia and Africa traditional call and text services. Yet, in FY2015. the role of telcos in providing access • In Singapore, SingTel is the to the internet puts them at the STRATEGIC PRIORITIES leading mobile and fixed operator, centre of this digital revolution. with a share of more than half Our priorities are to create a more of the revenue in the country’s We are transforming ourselves efficient and productive business with telco sector to ensure our services allow scale, and drive value from our customers to do more with advances core telecommunications operations • In Australia, Optus is the number in technology, particularly over by providing a differentiated and two mobile operator with a the mobile internet. This goal is outstanding customer experience market share of 30%, as at supported by significant investments that deepens relationships with our 31 December 2013 in networks to ensure quality customers and builds brand loyalty. coverage, speeds and capabilities • Our regional mobile associates as well as simplified price plans, We continue to invest in remain the leading mobile customer touchpoints and processes, superior networks and solutions to operators in Thailand (AIS), geared to maximise customer help customers stay connected in India (Airtel) and Indonesia experience as they make use of more places, all the time. We will also (Telkomsel), and number two in mobile internet services. intelligently analyse our rich sources the Philippines (Globe). Through of data to create innovative and Airtel, we also have presence in Worldwide, the industry recognises compelling products and services 17 African countries that traditional pricing models for for customers. mobile services need to evolve to • Our regional mobile associates better match mobile data revenue We will work closely with our have been rolling out 3G networks with the corresponding use of regional mobile associates to further and advanced 4G networks as mobile networks and spectrum. This unlock value and drive growth in more of their customers become will help to promote the necessary their markets. mobile data users infrastructural investments. 18 OPERATIONS IN SINGAPORE 1 MOBILE MARKET POSITION ST 1 MOBILE CUSTOMER BASE 3.98 MILLION MOBILE MARKET SHARE 47% 1 These figures include both enterprise and consumer mobile customers. We are the market leader in Singapore. The superiority of our speeds has been significant investments into overseas Our business continues to grow even as recognised in blind speed tests, where bandwidth capacity. our industry becomes more challenging. eight out of ten Singaporeans surveyed We are facing intensifying competition cited our 4G speeds as being the fastest, DELIGHTING CUSTOMERS and, at the same time, customers are as well as in independent tests by constantly wanting more and seeking HardwareZone and Straits Times Digital We are lifting customer experience better value. Life. Starting from June 2014, we will by ensuring every interaction customers ramp up 4G speeds to 300Mbps. have with us is truly satisfying as Our strategy is to differentiate ourselves well as delivering innovative products with superior networks, customer We are also enhancing our mobile and services. experience and home bundling plans. networks with state-of-the-art Self We are also using data analytics to Organising Networks technology. As smartphones become more central better understand our customers’ It automatically detects areas of to our lives, our customers want ready preferences to develop customised congestion and immediately reassigns internet access even while travelling experiences for them. capacity from neighbouring cells that abroad, without fear of bill shock. We are underused. This way, customers recognised this need early and launched In FY2014, we improved all areas of our enjoy optimal network performance our DataRoam Saver plan. We have gone business from network coverage, speeds at all times. one step further with our enhanced and price plans to customer service, and Easy DataRoam plan. This automatically reported a 4% increase in revenue. We set in motion an industry shift by registers customers onto roaming introducing new data price plans aimed data plans and locks their mobile INVESTING IN SUPERIOR NETWORKS at encouraging fair use of our networks. devices onto our partners’ network. Our tiered data mobile plans allow us to This way, we deliver a truly worry-free We are the leader with a 47% share keep prices of our services competitive roaming experience. of the Singapore mobile market. It is despite rising network and spectrum our goal to give our customers the costs. Our customers have responded Customers who connect with us online best, seamless internet experience by positively with more than 50% of our are supported with more options continuing to invest in our networks. postpaid customers now on tiered plans, including web chat and social networking and 16% have exceeded their data caps. that promise an enhanced interactive In mobile networks, we were the first to experience. We also extended self- roll out nationwide dual-band long-term In the fibre broadband market, we are service options with the My SingTel evolution (LTE) or 4G coverage with undisputedly the leader. We delivered app, which allows customers to track speeds of up to 150Mbps. Today, our the fastest broadband internet their use of mobile data and check their coverage is 97%, with almost 1 million speeds 12 months in a row according account balances. In SingTel shops, SingTel users enjoying fast speeds. to an Infocomm Development Authority we have also streamlined our of Singapore report, helped by BUSIness sustaINABILITY ADDITIONAL OVERVIEW REVIEW AND GOVERNANCE PERFORMANCE FINANCIALS INFORMatION 19 case STUDY: CREATING STRONGER CUSTOMER BONDS WITH HAWKER HEROES Recognising Singapore’s food obsession, we invited celebrity chef Gordon Ramsay to pit his culinary skills against the best food hawkers in the country for the SingTel Hawker Heroes Challenge. The competition started with a bang as the nation cast their votes online for the top three food hawkers – from a group of 12 – who would take on Chef Ramsay. More than 2.5 million votes were cast over eight days, with the three chosen hawkers garnering approximately 320,000 votes each. processes to shorten transaction These measures require pay time for customers. TV operators to make content The campaign generated enormous deemed to be exclusive available buzz on mainstream and social Our various initiatives have been on rival platforms. media, including the nation’s recognised. In the 2013 Customer most popular blogs. Over 400,000 Satisfaction Index of Singapore, SingTel To reach a wider group of customers, Singaporeans visited the campaign registered significant improvements we introduced new channels on website over a 17-day period, with and was ranked the number one mobile mio TV, including a suite of Disney over half of them new to SingTel. and internet service provider. We have channels. We also secured the rights also improved our Net Promoter Score to the 2014 World Cup, adding to our On the day of the finals, over 1,000 (NPS), which is an indication of customer extensive sports coverage, which Singaporeans turned up for a chance loyalty as well as their willingness to includes the BPL. Our mio TV Go to taste Chef Ramsay’s take on recommend our services to others. app, a unique differentiator, allows chicken rice, laksa and chilli crab. our customers to watch popular Diners were then asked to vote for channels including BPL on-the-go DELIVERING TO HOMES their preferred version of each dish. and use their mobile device as a Our pay TV service, mio TV, is a remote control. The Singapore hawker heroes significant part of our overall consumer narrowly edged out Chef Ramsay by strategy, allowing us to offer a full suite In the fibre broadband market, we 6% of the total votes in the closely of products, including entertainment, are encouraging customers on ADSL contested battle. In each dish on all screens – mobile devices, TVs to migrate onto fibre to experience category, Tian Tian Chicken Rice won and computers. faster speeds and better customer by 6%, 328 Katong Laksa by 19% experience. Our initiatives are while Chef Ramsay’s version of chilli Our strategy has been successful, succeeding. We now have more crab triumphed by 5% of the votes. delivering a 6% increase in household customers on fibre and are the revenue, which bucked the declining market leader with a 58% market The campaign was a huge industry trend. The number of share even as new entrants emerge success and helped us connect households on triple and quadruple as a result of the government- with customers and grow brand bundles grew by 21,000 to 368,000. initiated Next Generation Nationwide affinity. It created warmth and an Broadband Network, which has interaction that complemented our mio TV’s revenue and customer base lowered the barriers of entry. traditional strengths as a trusted continued to grow. This was in spite of and respected brand. having to share our Barclays Premier League (BPL) content under the government’s cross carriage measures.