& 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 1st 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. 20

Operations in Australia

1

mobile Market Position 2nd Mobile Customer Base 9.43 million mobile Market Share 30%2

1 These figures include both enterprise and consumer mobile customers. 2 As at 31 December 2013.

Optus is Australia’s second-largest extra minutes or data to use in that billing Delivering Brilliant Service telecommunications group. Two years month at a cost of between A$5 to A$10. ago, Optus embarked on a complete Over the past 12 months, Optus has business transformation to clearly The removal of large excess usage fees made significant progress by improving differentiate its brand to lead in superior for voice and data has been critical in the way customers shop and interact customer experience and to reshape the eliminating bill shock and providing Optus with us through two critical channels: business to deliver future profit growth. mobile customers with the certainty they in-store and online. need to use their mobile phones the way Over the last 12 months, Optus has they want. My Plan also contributed to Since July 2013, Optus has rebranded made significant progress as it aspired increased data revenues, with 31% of more than 100 stores by creating open to become Australia’s most loved and the My Plan customer base temporarily and friendly spaces where customers recommended service brand. Optus moving to a higher data tier each month can easily interact with products and kicked off the financial year with a public as at 31 March 2014. service staff. Optus also took back pledge to focus on addressing the issues control of the customer experience from that matter most to customers: offering Optus also took action to reduce bill third-party providers, distributors and simple products, delivering brilliant shock from high international data and stores. In the last year, Optus ended retail customer service and continuing to voice roaming charges with a range distribution arrangements with many build a great network. of simple products with flat rates for third-party providers. customers travelling overseas. For Offering Simple Products example, the Optus Travel Pack offers An increasing number of Optus customers an affordable A$10 per day customers are choosing to engage online, Nothing upsets customers more than plan, on top of their normal mobile prompting a redesign of Optus’ website. hidden charges or receiving a large, plan charges, so that they can connect The new site incorporates artificial unexpected bill as a result of exceeding overseas without worry. intelligence technology to answer their voice or data caps. Optus customers’ questions using instant acknowledged this frustration and led Optus also streamlined its products for messaging. The feature is proving popular the market with the introduction of its broadband customers with My Home with customers, and received 3 million My Plan on 1 July 2013. and My Office Plans in November 2013. questions in the site’s first six months These plans target common broadband of operation. My Plan helps to protect customers customer pain points by removing hidden from bill shock if they exceed their fees and charges, eliminating compulsory Optus is on track to become Australia’s monthly voice or data plan inclusions contracts and making it easier for most loved and recommended service by automatically giving them a block of customers to increase their data when brand. Customers are responding the need arises. positively to the changes. This is business sustainability additional Overview review and governance performance financials information 21

case study: The Promoter Response Team

An important part of our vision to make Optus the most loved and recommended service brand in Australia is to value and act on customer feedback.

We set up our Promoter Response Team in 2013 to contact customers who had a poor experience and rated us six or less out of ten in their Touch-point NPS survey. The team members were asked to call our detractors and try to improve their NPS rating by resolving any outstanding issues, and more importantly, gain insight into the issues that led to their poor experiences.

Since May 2013, the team has reflected by an industry-leading decline 700 MHz spectrum bands means we successfully contacted 63% of in the number of new complaints to are preparing our network to provide the customers referred to them. the Telecommunications Industry 4G services on those frequencies to It has resolved over 90% of customer Ombudsman over the last 12 months. more customers, including those in issues and achieved an average NPS Optus has also seen significant regional areas in early 2015. of +30. Churn currently sits at less improvements in its NPS. than half of the rate for the rest of Optus constantly invests in the business. Building a Great Network technology and data analytics capacity to enhance the customer The success of the Promoter Optus is committed to building a experience. By crowdsourcing Response Team has resonated strong and diverse network that meets data on black spots, call drop out across the organisation. We are customers’ needs. Throughout the year, locations, signal strength and currently looking at opportunities Optus made improvements to its mobile in-building coverage, Optus continues to expand this incredibly successful network including completing the largest to tailor its network improvements to model across our business. upgrade of its 3G network and the rapid cater to customers’ needs and real- rollout of its multi-band 4G network over time experiences. We continue to focus on driving both the LTE 1800 MHz spectrum and advocacy and using our NPS data the LTE 2300 MHz spectrum. As at Optus is proactive in working closely to make meaningful changes to the 31 March 2014, the Optus mobile with the Australian Government to way we deliver customer experience network reached 98.5% of the population, ensure it can offer customers the and create long-term, sustainable while our 4G network reached 75% of best possible experience on the profitability for our business. the metro population. National Broadband Network (NBN). The NBN will provide Optus with a Bringing 4G to more Australians is great opportunity in the coming year the number one network priority for and will be a core focus for Optus’ Optus. With a multi-band 4G strategy fixed product offerings. that combines low-band 700 MHz 4G frequency for strong coverage with high band 2300 MHz spectrum for increased network capacity, Optus is positioning itself to meet customers’ demand for superfast 4G in more places. The upcoming availability of 2600 MHz and 22

operations in 17 countries in Africa, Bangladesh, mobile Market Position Sri Lanka 1st in india1 Regional Mobile Customer Base Mobile Customer Base 78.06 million1 mobile 205.52 million1 mobile Market Position Associates mobile market Share st nd 1 1 or2 23% in india in 14 of the 17 Singtel’s effective African markets1 Shareholding: 32.4%

mobile Market Position mobile Market Position mobile Market Position 1st in Thailand1 2nd in philippines1 1st in indonesia1 Mobile Customer Base Mobile Customer Base Mobile Customer Base 42.36 million1 40.75 million1 132.65 million1 mobile market Share mobile market Share mobile market Share 45%1 37%1 44%1 Singtel’s effective Singtel’s effective Singtel’s effective Shareholding: Shareholding: Shareholding: 23.3% 47.2% 35.0%

1 These figures include both enterprise and consumer mobile customers.

We are a long-term strategic investor in 12% and 36%, significantly below the Currently, 62% of its customers are on 3G. our regional mobile associates, and have level of more developed countries such AIS will continue to strengthen its network played a significant role in developing as Singapore or Australia, where internet quality and expand network capacity in the telecommunications industry of their penetration levels have reached about dense areas by adding small cells and respective countries. 78%, according to statistics from The accelerating fibre optic expansion. Its fibre World Bank. transmission will support growing mobile In the last two decades, our associates data demand, as well as new potential have made massive investments in In these emerging markets, the majority wired-broadband services. mobile infrastructure, boosted mobile of the population will be experiencing penetration levels and, in the process, the internet for the first time via their In February 2014, Airtel acquired created employment and contributed mobile phones, due to the lack of 115 MHz of mobile spectrum for to their countries’ economic development. fixed-line infrastructure. There is huge US$3 billion to ensure business continuity As our associates have grown, they potential for our associates to grow as as well as additional network capacity have become major contributors to their the mobile internet penetration rate is to support the phenomenal mobile data respective countries’ economies, set to rise in these markets. To capture growth into the next 20 years. Airtel and are also a major component of these opportunities, our associates are has launched commercial LTE in four SingTel’s growth. transforming their businesses. major cities to serve the increasing data demand from customers. By March 2014, Our associates are now transitioning They are investing heavily to acquire Airtel Africa had grown its mobile data from traditionally voice- and text-heavy additional spectrum, roll out high-speed customer base to 22.3 million, accounting businesses to expand into data-centric mobile data networks, drive smartphone for 32% of its total customer base. In its services. By drawing on the rich adoption and offer new products and African markets, Airtel offers 3G services experience of our operations in Singapore services to serve the needs of their in 15 countries across the continent. and Australia in mobile data as well as customers, thus transforming the way the collective expertise of the group, people live, work and play. Similarly, Globe’s network has significantly we are now helping our associates expanded in terms of capacity, coverage embark on the next phase of growth. Next year, our associates will collectively and capabilities since it started its We are achieving this with closer invest S$7 billion in capital expenditure, network transformation programme engagement with our associates and of which a large percentage will be used in 2011. Over the last two years, Globe deriving greater synergistic benefits from to install mobile data networks to serve has invested over US$790 million in its technology, product development and more people. network and completed the change out of customer offerings. its legacy network with more than 22,000 AIS, our associate in Thailand, launched base stations nationwide. Its 3G footprint Transforming into 3G services in May 2013 after acquiring now covers 90% of the population. Globe Data-Centric Operators the necessary spectrum in late 2012. As is the first operator to launch LTE in the at 31 March 2014, its network covered Philippines and has since completed the The current average internet penetration 90% of the population. AIS will achieve 95% pilot deployment of LTE in key commercial in the associate countries is between coverage of the population by end 2014. business districts and tourist destinations. business sustainability additional Overview review and governance performance financials information 23

In Indonesia, Telkomsel continued to plans that allow customers to tailor their video, innovative products and data allocate more capital expenditure to 3G own combination of calls, texts and data monetisation in their markets. mobile base stations. It will have more allowance. GoSAKTO was introduced than 36,000 3G mobile base stations to prepaid customers, allowing them to In April 2014, the COE on Innovative by the end of 2014, accounting for 41% customise their voice, SMS and mobile Products announced a partnership with of its total stations. Telkomsel is the data usage to best suit their lifestyle. Samsung to bring a seamless and richer first Indonesian operator to successfully GoSAKTO has won the Global Mobile data experience to the Group’s customers. complete an LTE trial. The trial, carried out Awards 2014 for the Best Network-based SingTel and its associates came together during the 2013 Asia Pacific Economic Solution for Serving Customers. on 11 April 2014 to launch Samsung’s Cooperation meeting in Bali, recorded flagship mobile device, the Galaxy S5. download speeds of 61Mbps. Mobile commerce is another area with growth potential in the emerging markets. In the near future, our associates’ Delivering a Comprehensive Airtel rolled out Airtel Money to all 17 customers will be able to pay for their Mobile Experience African countries it operates in, to enable apps from Samsung’s application store by transactions for customers in rural areas deducting the amount from their prepaid Our associates have also introduced a where banking facilities are not widely credit balance or through their monthly range of innovative products and services available. As at 31 March 2014, Airtel postpaid bills. In the emerging markets, to help customers fully experience the Africa registered an increase of 800,000 where credit card use is still low, this brings power of mobile data in the digital world. Airtel Money active customers from a convenience to customers and provides a This has led to more customers using the quarter ago to reach a total of 3.5 million differentiating advantage over competitors. faster networks and consuming more active customers. This boosted the total mobile data. quarterly value of transactions from Since 2013, we have been providing US$1.7 billion to US$2.2 billion. technical expertise and support to Thanks to the faster speeds of its 3G help Airtel Africa expedite 3G network 2100 MHz network, AIS can now support a Deriving Group Benefits implementation in several African wider range of applications including video countries. This has significantly lifted its streaming. Its AIS Mobile Barclays Premier There are significant scale benefits we drive network performance and data revenue. League app allows football fans to enjoy as a collective group. Together, we share live broadcasts of matches through their business insights and experiences that For other examples of collaboration smart devices. In addition, its mPay Rabbit help shorten the learning curves for our efforts, refer to pages 34 and 35. enables customers to conveniently pay associates and lead them to compete more for their Bus Rapid Transit and Bangkok effectively in their respective markets. Our associates are an important part of Mass Transit System fares, as well as food the Group, and we remain committed to items, at well-known shops via Near Field At the end of 2013, we set up Centres of working closely with them to deliver the Communication technology. Excellence (COEs) to help our associates best experience for our customers in the acquire capabilities in areas of customer digital age. Globe initiated an industry breakthrough loyalty, analytics, carriage of mobile with a suite of mix-and-match postpaid & SingTel business sustainability additional Overview review and governance performance financials information 25

ANNUAL REPORT 2014 Business Review Group Enterprise

a quick read

market treNds Strategic Priorities our assets/strengths

Revolutionary technologies Group Enterprise is strengthening Our constant drive for innovation continue to transform our world its position as Asia’s leading ICT ensures that enterprises working and the way enterprises operate. solutions provider. We are providing with us have access to the The convergence of mobile, fixed a seamless experience based on latest technologies to keep their and cloud computing, together the quality of our people, products, businesses ahead. Our partnerships with emerging developments in networks, platforms, processes are founded on growing together social and analytics technologies, and operations. with our customers. is driving change and creating new opportunities for businesses. With We are focused on extending our Group Enterprise provides fixed, these breakthroughs, enterprises are leadership in enterprise mobility, mobile, cloud, managed services, establishing new markets, developing connectivity and network services, IT services and consulting to a new products and realising new as well as in managed and data customer base that ranges from growth areas. centre services. We are also small and medium enterprises to developing new opportunities large multinational corporations Enterprises are seeking ways to in the areas of cloud computing, and governments. eliminate the complexities of working cyber security and solutions for with multiple vendors. They are also smart cities. As a market leader in Asia Pacific, looking to reduce significant upfront our comprehensive suite of smart ICT investments and the risk to their Central to all our efforts in this solutions is backed by an extensive competitiveness from rapid space is the drive to continue data network and infrastructure that changes in technology. Enterprises enhancing customer experience span across key business cities and want their infocomm technology (ICT) for our enterprise customers. markets in the region. We also have providers to deliver secure, reliable offices in 40 cities in 22 countries and resilient solutions that help them worldwide. meet their customers’ needs. 26

SINGAPORE TELECOMMUNICATIONS LIMITED AND SUBSIDIARY COMPANIES Business Review Group Enterprise

Shaping The ICT Landscape

Presence in Our extensive data infrastructure is the 40 cities in backbone of our solutions. To deliver 22 countries unrivalled and end-to-end connectivity across the world, it is important for us to continually invest in and enhance our infrastructures.

Our global coverage was expanded during the year by deepening our presence in China, India and the US. We now have over 200 points of presence (POPs) in 160 cities. SingTel was also part of the consortium that launched the Southeast Asia Japan Cable system, which, together with the Unity cable system, offers More than 375,000 Group the fastest available transmission speed business to deliver the lowest latency connectivity cloud users Enterprise Enterprise between Asia and the US. mobility delivered to more than To enhance our infocomm technology (ICT) 70 countries solutions, we introduced a comprehensive managed mobility service to deliver consistency in solutions, services and support for enterprises across Asia Pacific. Our one-stop service allows enterprises to simplify regional procurement, contract negotiation, policy and spend management, mobile application services and roaming.

We continued to be the leader for International Internet Protocol Virtual More than Private Network (IP VPN) and International 30 government agencies in Ethernet-Line in Asia Pacific, excluding Japan, Singapore from January to June 20131. We were also migrated to G-Cloud recognised as a leader for Datacenter and Hosted Cloud Services in Asia Pacific, scoring e-Government services highest in capabilities according to the IDC delivered in 2013 MarketScape report.2 over 30 cities

Over 200 Points of presence (pops) in 160 global cities, of which Notes: over 100 POPs are 1 IDC Asia/Pacific (Excluding Japan) Telecom Service in 60 Asian cities Tracker, Jan-Jun 2013. 2 IDC MarketScape: Asia/Pacific Next-Generation Telcos — Datacenter and Hosted Cloud Services 2013–2014 Vendor Analysis, Dec 2013. business sustainability additional Overview review and governance performance financials information 27

ANNUAL REPORT 2014

Customer case study: Australia and new zealand Banking Group Limited

Photo courtesy of ANZ Australia and New Zealand Banking Group " We are now entering our second services Limited (ANZ) was looking to expand its outsourcing partnership with SingTel. In this presence in Asia Pacific and needed an ICT provider to deliver end-to-end managed phase, SingTel is helping ANZ’s progress in services. In 2009, ANZ signed a becoming a super-regional bank by enabling A$500 million agreement with SingTel the connectivity of our business and the to deliver these services, leveraging our international network reach and capabilities. delivery of ICT services to our customers in In 2013, ANZ renewed the contract, valued Australia, Asia and the Pacific. This strategic at A$530 million, for another five years. partnership offers increased value in service quality, management control and increased SingTel is transforming ANZ’s infrastructure to support enhanced global communication, capability to connect and support our providing a single platform for the delivery accelerated business growth into the region." of voice, data network services and services managed by a dedicated Global Enterprise Management Centre. The contract also Mr Alistair Currie Group Chief Operating Officer of ANZ includes the deployment of over 5,000 routers and switches, as well as 12,000 mobile services, among various other solutions. 28

SINGAPORE TELECOMMUNICATIONS LIMITED AND SUBSIDIARY COMPANIES Business Review Group Enterprise

Innovating To Create connect and exchange information more with one of the most efficient and secure Business Advantage cost effectively. public service systems worldwide.

Innovation is a constant for Group For MNCs in the shipping industry, We are also working with Singapore’s Enterprise. It is key to ensuring that we introduced VoiceLink, an award- Ministry of Education to deliver a we deliver solutions that give our winning innovation that allows crew web-based interactive mother tongue customers a competitive advantage. members to connect with loved ones language portal that uses cloud-based The aggregation of leading-edge through Facebook and e-greetings, voice analytics technologies to help technologies, including sensing, social, and gain access to the latest news. students from primary to junior college analytics, security, cloud and networks, For enterprises in the retail industry, levels improve their mother tongue is the foundation of our offering to small our Video Analytics-as-a-Service language skills. and medium enterprises (SMEs), large solution converts videos into real- multinational corporations (MNCs) time data. This helps retailers better Creating Safer, Smarter Cities and governments. understand shopper behaviour and manage their storefronts. As the world becomes more connected, Our strategy in the increasingly complex enterprises and government agencies cyber security environment is based For SMEs, we introduced our new are incorporating new technologies into on next-generation predictive, cloud-based Fibre Broadband Security a complete service delivery network for responsive and recovery capabilities. Suite, which protects the IT networks their customers. At Group Enterprise, Our ability to apply the best technologies of SMEs from online threats. This suite we help shape future urban cities that is critical to scalable security services. is unique as it intercepts and eliminates respond to the needs of customers, security threats in the internet cloud citizens and city administrators. We also aim to become the preferred before they even have the chance to cloud computing partner in the region, reach a company’s IT network. We Our Solutions for an Urbanised Future with an expanded suite of multi- are also working with the Infocomm (SURF) initiative was developed for that tenanted private cloud, hybrid cloud and Development Authority of Singapore purpose. Utilising new technologies cloud professional services capabilities. to help SMEs manage their home-based such as big data and analytics, M2M workforce and increase their communications, sensing technology, In FY2013, we introduced Unified productivity through technology social networking and mobility Communications-as-a-Service in solutions and services. technologies, SURF aims to enhance Asia Pacific to deliver seamless services in education, healthcare, communications and collaboration Our award-winning myBusiness transport and other key industry sectors. services. The pay-per-user solution portal for SMEs in Singapore has These new technologies complement is cost-effective for enterprises, and expanded its capabilities. With the and enhance our solution offerings to its rich media collaboration tools allow new group buy function, SMEs gain customers. Since introducing SURF in for faster decision making, leading to economies of scale and enjoy deeper 2012, we have made good progress greater productivity. discounts. The portal was also improved towards this vision. with an experts online section, where We joined the Bridge Machine-to- SMEs can gain business insights from In Singapore, we participated in various Machine (M2M) alliance, and can now industry practitioners. Call-for-Collaboration projects with the provide MNCs with quick worldwide government, significantly enhancing deployment of connected devices and For governments, we led efforts to operational efficiency and effectiveness machines. This delivers an uninterrupted establish Singapore as a regional through our intelligent platform of platform, allowing MNCs in the retail, computing hub. We worked with the automated sensors and aggregated electronics, transportation, health, Singapore government to offer G-Cloud, information, which allow analytical energy and manufacturing sectors to bringing an entire nation onto the cloud insights and complex event processing in real time. business sustainability additional Overview review and governance performance financials information 29

ANNUAL REPORT 2014

In China, we are providing e-government Customer case study: solutions across various provinces and cities. We have also identified potential Resorts world sentosa development areas in smart education campuses, digital hospitals and Resorts World Sentosa (RWS) is an award-winning, family-centric destination intelligent transport systems. resort in Asia.

To further develop our data analytics RWS requires a robust network for high-speed internet access and strong capability, we collaborated with the mobile coverage as it operates 24/7. Today, RWS uses SingTel’s wireless Institute for Infocomm Research, a solutions with secured access, which provides round-the-clock monitoring via member of the Agency for Science, the SingTel Network Operation Centre. In addition, a Network Access Controller Technology and Research of Singapore, system is deployed to provide RWS with an authentication process for its to build our business intelligence guests to access the internet. capabilities for harnessing enterprise data for actionable, timely and Visitors to RWS can stay connected, and hotel guests get to enjoy the wide predictive insights. variety of in-room entertainment with SingTel IPTV and mio TV content.

Enhancing Customer Experience " SingTel’s tailored suite of services and solutions Enterprise customers require their for RWS gives us peace-of-mind, enabling smooth operations across different locations to operations and ensuring that our teams stay be interconnected. They also prefer to have a single point of contact regardless connected across multiple locations. This means we of where they are or which office can now focus on what we do best – creating and they are from. To enhance our global delivering exceptional experiences for all our guests. customer service delivery commitment, " we introduced the one-stop Technical MR Yap Chee Yuen Assistance Centre. The centre is a single Executive Vice President, point of contact for our customers’ IT Corporate Services, Genting Singapore PLC, and communications support across which owns RWS the region for faster post-sale support. We also introduced a web-based portal for customers to manage and track the status of reported incidents.

Our customer-centric culture and absolute focus on an enhanced customer experience are pursued relentlessly, and we are inspired to always do better. & SingTel business sustainability additional Overview review and governance performance financials information 31

ANNUAL REPORT 2014 Business Review Group Digital L!fe

a quick read

market trends Strategic Priorities our assets/strengths

Rapid advances in technology, the Group Digital L!fe’s focus is to create Our most valuable asset is the proliferation of smartphones and a new growth opportunities and half a billion mobile customers surge in demand for mobile internet revenue platforms in mobile-led whose lives are touched by services are changing customer internet usage. SingTel every day in the developed behaviour and expectations. With and emerging markets. These the convergence of technology and By doing so, we are deepening relationships are the foundation communications industries, digital SingTel’s relationships with of our future growth as we broaden companies are competing with us in customers through new products our services. the telco space. and services to inspire, delight and engage our customers in the digital In the emerging markets, where SingTel’s response to these trends space. Our solutions are developed credit card adoption is still low, our led to the establishment of Group through an understanding and billing relationships are especially Digital L!fe in 2012, marking our anticipation of our customers’ important in bringing people into evolution from a traditional telco into behaviour and expectations. the digital world. These billing a digital communications provider. relationships give us significant We are making investments opportunities to build long-term The mobile internet is a game directly and through partnerships customer loyalty. changer; it has altered how people to gain access to new technology live, work and play in developed and talent. In our investments, Group Digital L!fe’s strength markets. Similar trends are playing we balance implementation risks also comes from our network of out in the emerging markets, where with opportunity. We are confident partnerships around the world. limited fixed-line infrastructure that we have in place the right These allow us to accelerate service means that many users’ first structures, capabilities and initiatives adoption as we team up with contact with the internet is through to succeed. specialised vendors and research their mobile devices. This opens institutes, and work with start-ups the door to a new world of media through our corporate venture consumption, shopping and capital arm, SingTel Innov8. TV experiences for users in these markets. 32

SINGAPORE TELECOMMUNICATIONS LIMITED AND SUBSIDIARY COMPANIES Business Review Group Digital L!fe

Group Digital L!fe is a key driver in the Group Digital L!fe Creates Value in Two Ways ongoing dual transformation across the SingTel Group. To create value for the Group, we are executing on two strategic priorities. Create new Enhance Firstly, we are focused on creating new growth avenues core growth avenues and revenue platforms and revenue communications for the Group. We have already identified platforms services growth areas such as digital advertising our telco and big data, where our telco assets give assets give us us a competitive advantage. We will a competitive continue to explore other opportunities. advantage

Secondly, Group Digital L!fe is responsible for enhancing SingTel’s core communications offerings with products and services that are not only essential to our customers’ daily lives, but also inspire and delight them.

Instead of trying to out-innovate the Over half a Billing Customer location billion mobile relationships knowledge patterns many entrepreneurs in the digital space, customers and extensive our approach is to collaborate with other across Asia customer and Africa touchpoints telcos, specialised vendors and research institutes, and to invest in start-ups that have the potential to disrupt towards failure is also guided by an Amobee recently invested in a data adjacent industries and their traditional important principle – “fail fast and centre in Singapore to support its regional operating models. fail cheap”. growth. This was made possible through the close relationship between SingTel Group Digital L!fe’s activities in Singapore Expanding our Foothold and its partners in the common adoption and Australia are also crucial in helping in Digital Advertising of the Amobee platform. Amobee’s client our regional mobile associates continue list has expanded to include premier to be successful in the digital era. The The exponential growth in smartphone global brands such as Ford, H&M, Lexus, average smartphone penetration rate users and mobile data usage has McDonald’s, the Wall Street Journal and for our associates’ markets is low at changed the dynamics of marketing, with many others. 15% as they transition from a voice- advertising expenditure shifting from centric market to a data-centric one. Our traditional to digital media. Amobee is strengthening its capabilities expertise and knowledge in the digital through acquisitions, notably the space is a real asset to them and their The acquisition of Amobee – our digital purchase of Gradient X, the developer of customers as they drive this transition. advertising arm – in 2012, equips us with a real-time bidding platform for mobile the necessary tools to capture this new advertising. The platform now offers We understand that to innovate in the and growing revenue stream. Just two advanced real-time bidding that includes digital space, we must try many things years on, revenue at Amobee has grown support for multiple advertising channels and that there will be successes and by four times. Amobee has also expanded and formats such as video and HTML5. failures along the way. While we have to Australia, China, India, Indonesia, the been making good progress, our attitude Philippines, Singapore and Thailand. business sustainability additional Overview review and governance performance financials information 33

ANNUAL REPORT 2014

case study: Amobee Bringing the Ford F-150 to Life with an Innovative 3D Mobile Ad Experience

To build on 36 years of success, Ford tapped Amobee Key findings included: to develop a best-of-breed creative execution on • “We Own Work” mobile devices to drive brand awareness and user • Brand Favourability: Message Association: engagement for its latest vehicle, the Ford F-150. % % By using Amobee’s ground-breaking mobile 3D 20 71.1 technology Amobee 3D, Ford was able to bring the (2 times higher than (4 times higher than F-150 brand to life in new ways by pushing the industry average) industry average) creative boundaries with the most realistic virtual showroom experience ever. • Purchase • Aided Brand Consideration: Awareness: Customer engagement achieved by the Amobee 3D F-150 mobile ad campaign far exceeded Ford’s % % expectations, achieving up to two times the industry 40.4 11.4 average of time-spent per ad. Across all measured (2.5 times higher than (higher than industry industry average) categories, the 3D F-150 mobile campaign delivered average) significant increases in brand metrics.

A majority of mobile campaigns are focused " on targeting and big data, which are important. However, the difference between a good mobile campaign and a great one is delivering an amazing interactive and creative experience.

Amobee 3D gives us a brand new creative palette to develop a more engaging ad experience and tell brand stories in ways that are different from what we can do through linear video and traditional expandable mobile-rich media ad units. It’s by far the coolest thing I’ve seen in mobile advertising in the last three years." Mr Brian Bos Ford’s Senior Vice President & Group Director of Emerging Media for Team Detroit 34

SINGAPORE TELECOMMUNICATIONS LIMITED AND SUBSIDIARY COMPANIES Business Review Group Digital L!fe

Building Big Data Capabilities Enhancing Core by our extensive Asia experience in Communications Offerings localising products and services that Our rich database of customer cater to our customers’ needs. We gain a information presents us with a valuable To enhance the offerings from Group clear competitive advantage over global opportunity to provide customers Consumer, Group Digital L!fe is competitors by applying this in-depth, with real-time data analytics and data developing a suite of next-generation local knowledge. visualisation solutions. digital products and services to create differentiation factors that inspire, inSing.com is a robust portal that We have set up DataSpark to help delight and engage our customers. connects users in Singapore to businesses and governments make hyperlocal information. A large part better informed decisions that drive Mobile devices have become our of this portal is the HungryGoWhere site strong business outcomes. The key customers’ constant companions. We and app, which were also introduced elements to a great data analytics have, therefore, been aggressively in Malaysia this year. HungryGoWhere service are the ability to understand growing our suite of apps and services remembers customers’ preferences and and predict lifestyle and behavioural to meet customer expectations of access makes relevant recommendations on patterns, and intuitive data visualisation. to products and services that touch where and what to eat. With the food Together with our associates, our various aspects of their lives. obsession in these two countries, the operations give us richness of data that app has gained a tremendous amount cuts across different markets, while our We have identified five major areas of of traction. combined customer reach provides ready focus for our mobile internet businesses: scale for our data analytics solutions. We We are also sharpening NewsLoop to also have unique technology that allows Hyperlocal Content deliver the most relevant news updates real-time, continuous data collection, Hyperlocal content lets people know to our customers. Users in Australia, while ensuring all data provided remains what is going on around them with Indonesia, Malaysia, the Philippines, anonymous and the privacy of individuals the most up-to-date information. Singapore and Thailand can already is respected at all times. The content we provide is enhanced access localised content.

Video Creating Value One of the highlights of the year was our with Analytics partnership with Vuclip, a SingTel Innov8 investment. Vuclip is a mobile video always on, service provider, specialising in delivering always connected videos to feature phones, as well as low-cost smartphones on constrained Locating mobile data networks. customers Our mio TV Go app, introduced this year, differentiates our pay TV service in Singapore by offering our customers on-the-go convenience. In addition to live streaming of shows on the move, lifestyle & interactive privacy customers can use the app to discover behaviour visualisation at & security new content and control their patterns over time your fingertips set-top box. Reliably analysing Simplifying processes with Anonymously aggregating data relationships an intuitive dashboard data without violating individuals’ privacy business sustainability additional Overview review and governance performance financials information 35

ANNUAL REPORT 2014

Gaming case study: singtel innov8 During the year, we boosted our gaming presence with the introduction of the Generating Value through SingTel Innov8 WePlay app. WePlay is an alternative social gaming platform that recommends SingTel Innov8 (Innov8), our corporate more than 40% of whom were games based on customers’ preferences. venture capital fund, is a key facilitator first-time mobile internet users. It also connects them to a gaming for creating win-win partnerships This service single-handedly enabled community where they have access to between its investees and members more people to experience mobile hundreds of free and paid games. All of the SingTel Group. data than any other campaign by purchases can be billed directly to the a mobile carrier. customers’ SingTel bill. We plan to roll It helps investees access the Group’s out localised versions for India, Indonesia scale and market insights and, through Following its success in India, and the Philippines in FY2015. partnerships, it allows our regional Vuclip worked on a similar campaign mobile associates to tap cutting-edge with Telkomsel in Indonesia and WePlay followed our investment in technology with the opportunity to introduced the Telkomsel Video make it relevant in their respective TheMobileGamer (TMG). TMG provides 500 store in December 2013. In less markets. Vuclip, a US-based mobile than three months, it garnered over a device-neutral gaming experience video provider is, a prime example. 1 million users. as its games can be played on any mobile browser with no downloads In April 2013, Airtel in India leveraged Since Innov8’s investment in or installations required. Vuclip’s technology and introduced August 2012, Vuclip has grown a revolutionary portal that serves from 40 million monthly active Music curated videos at one Rupee each. users (MAUs) to 120 million MAUs. We enhanced our music streaming The initiative was designed to Vuclip has also expanded its product service AMPedTM with a fresh new look encourage mobile data usage in a reach into Indonesia, Malaysia, for the best entertainment experience. market where most users have yet to Thailand and the United Arab AMPed carries the catalogues of all experience the power of the mobile Emirates, making it the world’s major international music labels, as internet. In less than 12 months, largest independent mobile video well as a comprehensive range of music the portal gained 20 million users, and media company. from local and regional artistes. It offers a repository of over 5 million songs in Choosing SingTel Innov8 as an investor has been one of my best addition to money-can’t-buy experiences "decisions since founding Vuclip. Their value-add has provided such as exclusive showcases, autograph us with the best of both worlds: a comprehensive view of the sessions and concerts by top artistes. operator and media worlds because of their close collaboration with the SingTel Group, as well as a top-tier institutional investor’s eCommerce view point when it comes to strategic and operational insights. During the year, we partnered Shopify, " a successful North American eCommerce Mr Nickhil Jakatdar company, to bring its solutions to India, chief executive officer, Vuclip Indonesia, Malaysia and Singapore. We worked with payment providers in each country to enable transactions in local currencies.