Group Consumer

Technological disruption has totally changed the way all of us communicate and consume media. As we have moved from a voice-centric to a data-centric world, we have adapted our suite of services to cater to the changing lifestyles of our customers. Through network, technology and spectrum investments, as well as exclusive and diff erentiated content, we strive to deliver the best quality customer experience by off ering faster speeds, greater coverage, and innovative products and services.

Mobile Data

Broadband Pay-TV

Fibre

25 SINGAPORE TELECOMMUNICATIONS LIMITED Group Consumer Singapore

Singtel is reframing our consumer business around data as it has become a big part of Singaporeans’ lives. Spending a bulk of their time online and on-the-go means Singaporeans now expect seamless connectivity and superior coverage. This is why we have created plans and services around data, and are enriching our content through over-the-top (OTT) partnerships. We are also accelerating the pace of our network upgrades and bolstering our infrastructure for the coming of the Internet of Things (IoT) as we step up our journey to 5G.

Our goal is to deliver diff erentiated, quality content and connect our customers to the things and people that matter most to them on any device and at any time through our high-speed fi xed and mobile networks.

CONNECTING CUSTOMERS TO We also introduced Singtel Music, English language and premium INNOVATIVE NEW SERVICES another breakthrough service and Korean movies and TV shows to our Our new focus on data-centric the fi rst in Singapore to provide customers on multiple platforms. plans and services fi rst started data-free music from popular with the launch of our SIM Only providers Spotify, KKBOX, MeRadio Continuing our push to provide plans in 2015. These contract-free and AMPed. It was an instant hit diff erentiated content to our Singtel plans proved instantly popular among music fans. TV customers, we also added key as it gave our customers greater channels such as Discovery, Warner fl exibility in managing their With our focus on delivering top TV and ethnic channels for our communications needs, off ering in quality content to our customers multinational audience. We sealed fact, an unprecedented level of usage tailored to their entertainment our status as the “home of football” freedom at very aff ordable prices. consumption habits – be it on by scoring a hat trick, and winning TV, online or on-the-go, we are broadcast rights for the biggest In 2016, much to the further delight working closely with traditional football events of 2016 – Barclays of our customers, we launched and non-traditional content Premier League, UEFA EURO and another innovative data product, a providers to off er a wider range of Copa America. data add-on called DataX2. This data entertainment options. option allows customers to double In broadband, we led in technology their data for an aff ordable fl at fee, We partnered streaming service innovation when we launched our giving them better value when they providers Netfl ix and Viu to bring 10Gbps fi bre broadband plan for sign up and recontract with us. millions of hours of top quality residential customers. The ultra-high

SINGTEL All the music you could ever want. None off the data ccharges. ANNUAL REPORT 2016 26

“I enjoy working on the front line because every day comes with diff erent but rewarding challenges. It’s satisfying when customers are pleased with our latest mobile off erings.” – Kelvin Khoo, Retail Executive, Singtel

speeds of 10Gbps supports bandwidth- intensive activities and will also ready our network to meet the needs of the rapidly developing IoT ecosystem.

We were also the fi rst in Singapore to up the ante in the mobile payments space, off ering an all-in-one mobile payments solution with the new version of our popular app Singtel Dash. Singtel Dash now provides fast and secure transit payments for public transport and top-ups, in-store and online retail payments, as well as local and overseas money transfers to Singaporeans, regardless of their telco relationship or device. 27 SINGAPORE TELECOMMUNICATIONS LIMITED Group Consumer Singapore

“Work is never boring. I get the fi rst glimpse of the best TV shows in town while ensuring customers enjoy uninterrupted transmissions!” – Abdul Hamid Bin Yusoff , Broadcast Operations Manager, Singtel TV

INVESTING IN A Development Authority’s reports, 900Mhz, 1800Mhz and 2600Mhz FUTURE-READY NETWORK Singtel off ers Singapore’s fastest and spectrum. With our tri-band network We recognise that a good network widest 4G experience, and has topped and nationwide deployment of requires broad spectrum holdings, the nation’s widest 4G outdoor 900Mhz, we are able to deliver an effi cient and fast radio technology, coverage chart for six consecutive even deeper 4G indoor coverage with leading indoor and outdoor coverage quarters (Q4 2014 to Q1 2016). wider and more consistent network and fast low latency transmission. performance as well as off er superior Our eff orts to step up on network In 2015, we also reinforced our speeds of up to 337Mbps. planning, deployment, maintenance market leadership as the fi rst and innovation have yielded results. operator in Southeast Asia to provide Another fi rst in Singapore, our carrier According to the Infocomm a tri-band LTE network using grade WiFi, Singtel Premium WiFi,

Delivering the Best Integrated Network Experience

First telco in 800 Investing in First telco in Southeast Singtel the future of Singapore to Asia to launch Premium 5G networks launch 10Gbps tri-band 4G WiFi hotspots residential fi bre network with nationwide broadband superior speeds service of up to 337Mbps ANNUAL REPORT 2016 28

complements our superior coverage technologies, will pave the way for us by customers. Additionally, to deliver in 800 hotspots nationwide, including to implement next generation network a better in-person retail experience, major MRT stations and popular F&B innovations that are central to our we also improved customer processes outlets such as McDonald’s. Smart Nation ambitions. and revamped several of our Singtel Retail Shops. We are also rolling out small cell MAKING MEANINGFUL and Hetnet technology to make our CONNECTIONS WITH In a bid to thank customers network smarter and more effi cient. CUSTOMERS with existing mobile and fi bre We continue to make meaningful entertainment plans, we introduced We aspire to be a frontrunner in the connections with our customers the much talked about Singtel deployment of 5G globally and are online, over the phone and in-store, Circle. This fi rst-of-its-kind benefi ts well on our journey to making it a to enrich their service experience. programme in Singapore off ers reality. Our joint trials with Ericsson of Enhanced digital engagement via My customers free unlimited local mobile pre-5G technologies such as License Singtel app, live webchat and social data on Sundays and a Hollywood Assisted Access and Narrow Band-IoT media channels has been well-received movie on Singtel TV every weekend.

“Every customer call is important to me. I enjoy talking to all my customers and feel a great sense of achievement when I’m able to help.” – Priyalata Pillay, Customer Care Executive & Team Leader, Singtel 29 SINGAPORE TELECOMMUNICATIONS LIMITED Group Consumer Australia

Optus is pursuing a three-year strategy to reposition our business in a competitive and rapidly changing market. As Australians move to access unprecedented amounts of data through their mobile devices, we are signifi cantly enhancing our suite of digital products and content partnerships, and moving beyond our traditional provision of voice services.

Our ambition is simple: to allow our customers to access the content that they want on devices that suit their lifestyles, underpinned by a fast and reliable network. We are committed to structuring our off erings so that people can enjoy a seamless experience no matter how they choose to connect.

“Working in Optus Retail has taught me how to ‘read’ customers so I can recommend a product or service that best suits their lifestyle.” – Dominic Lukaszewicz, Retail Consultant, Optus ANNUAL REPORT 2016 30

INVESTMENT IN CONTENT in the changing nature of content been extended to iPhone using a The transformation of Optus into delivery to Australian consumers. Payment Sticker and also includes an a mobile-led multimedia company NFC-enabled wristband which links coincides with the growing consumer PUTTING CUSTOMERS FIRST directly to the Cash by Optus app. appetite for online entertainment. This year, we introduced a range of About two-thirds of Australian adults plans to help customers maximise In the home, we are driving the take- currently use the internet to access their data. We extended data rollover up of great value broadband plans. video content. According to Cisco’s to prepaid mobile and prepaid These bundle together unlimited Visual Networking Index, video on mobile broadband plans. We also data, telephony and compelling demand is forecast to account for introduced Family Sharing, which entertainment off ers such as Yes TV 82% of Australian IP traffi c and allows customers to share and by Fetch or subscription off ers to more than 77% of mobile data traffi c combine their entire household’s video-on-demand services, Netfl ix by 2019. mobile data allowance on one bill. and Stan. In August, we extended data sharing Anticipating this continued growth, through Data Pool, which allows For customers who may not want, we are investing in partnerships, customers to combine the data or who are unable to receive including with Cricket Australia and from both their mobile and mobile a fi xed broadband service, we the Australian Olympic Committee. In broadband devices. have introduced Home Wireless November 2015, we won the exclusive Broadband. This is an out-of-the-box Australian rights to the next three We were the fi rst Australian telco modem that uses mobile technology seasons of the English Premier League to off er a mobile payment facility, to deliver connectivity straight to a football competition. This marquee Cash by Optus. Launched on Android customer’s home, and is particularly acquisition represents a milestone in late 2014, the technology has useful for renters.

Allen Lew, Optus CEO (left), and John Coates, Australian Olympic Committee President (right), celebrating the signing of Optus’ 10-year sponsorship, and appointment as the offi cial telecommunications partner of the Australian Olympic team. 31 SINGAPORE TELECOMMUNICATIONS LIMITED Group Consumer Australia

TRANSFORMING front-line staff . Our social media Recognising the popularity of over- CUSTOMER SERVICE response team handles up to 1,800 the-top video streaming services, Optus recognises that our customer queries a day, while Yes we are focused on future-proofi ng customers’ preferred methods Crowd, our peer-to-peer platform our networks. of engagement are changing. in which members share and Many customers prefer to interact resolve customer issues, supervised Our extensive network investment through the immediacy of online by Optus staff , received 2.7 million of A$1.6 billion in FY 2016, which channels using their mobile visits during the year. is signifi cantly above our annual devices, rather than phoning a call average of A$1.3 billion, has allowed centre or visiting a store. We are also improving service us to deliver 4G mobile coverage for our small business customers to 94% of Australians, and optimise Buoyed by the success of our by completing the rollout of our fi xed networks for video self-service portals, My Optus App 126 business specialist stores. A streaming services. and My Account, we continue complementary service we now to adapt our customer service off er is Premium Business Support. Our ongoing network investment model. We have started a multi- This is a dedicated advisory centre programme is yielding results, with year transformation to simplify our to handle all our customers’ mobile the performance of our mobile back-end technology and off er and broadband queries. and fi xed networks recognised customers assistance through through independent testing. The digital channels. This ensures A GREAT NETWORK P3 CommsDay Mobile Benchmark issues can be resolved effi ciently, Our products, services and content Australia ranked Optus’ mobile reducing handoff s between all rely on an outstanding network. network as the best along major

Share the love, share the gigs with Data Pool

6 10 3

23 Data Pool

Every family is different so we won’t pretend we’ve got the perfect mobile plan for yours. But there is a way to combine all your individual plans into one big Data Pool and share all your gigs. So if your kids are always running low on data, any gigs you don’t use can go towards keeping them happy.

VISIT US IN STORE OPTUS.COM.AU/DATAPOOL

FAIR GO POLICY APPLIES. Data Pool: Available on our latest postpaid mobile and mobile broadband plans. Use within Australia. ANNUAL REPORT 2016 32

“My team and I are always looking at how advances in technology and trends in other markets can be adopted locally to improve the experience of our customers.” – Chris Smith, Head of Digital Sales and Service, Optus

roads and highways, while the rated Optus as providing the fastest positions us to expand 4G even further. Australian Netfl ix ISP Speed Index streaming service for its viewers for We are the fi rst Australian carrier to has ranked Optus’ fi xed networks as fi ve consecutive months. introduce WiFi Talk, enabling customers the best for prime-time streaming to call and text over public WiFi for six consecutive months. Stan, a Acquiring new regional licences where mobile coverage is limited or major Australian streaming provider, in the 1800MHz spectrum band non-existent. 33 SINGAPORE TELECOMMUNICATIONS LIMITED Group Consumer Regional Mobile Associates

The data revolution is only just beginning in the emerging markets with the increasing availability of aff ordable smartphone devices. As many customers are accessing the internet via their mobile phones and devices for the fi rst time, there is signifi cant growth potential for mobile data services and tremendous opportunities for our regional mobile associates. They are investing heavily in mobile infrastructure, moving from 3G to 4G, and introducing innovative digital services.

We are sharing insights and lessons from our own transformation eff orts, and working closely with them to drive digital empowerment and mobile data growth. As a Group with a ready market base of more than half a billion mobile customers across Asia Pacifi c and Africa, we are committed to leveraging our scale and collective expertise to derive greater synergies and serve our customers better. ANNUAL REPORT 2016 34

GROWTH IN MOBILE DATA AND between 12am and 6am. This resulted HOOQ, a premium OTT video service DIGITAL SERVICES in a 33% increase in data usage at by Singtel, has been launched in many The growth in mobile data services night. In the Philippines, the Globe of our associates’ markets, such as is a major opportunity for emerging myLifestyle Plan was launched. It is India, Indonesia, Thailand and the market telcos seeking to diversify a customisable postpaid plan which Philippines. This has stoked data beyond traditional revenue streams gives customers the fl exibility to select usage, since the latest movies and TV from voice and text. The number from various promotional packs that shows come at an aff ordable fee. of data users across our associates’ best suit their lifestyles and mobile markets was 198 million as at 31 data needs. Mobile payments are also proving March 2016, a 21% increase from popular in the emerging markets, a year earlier, while data volumes Expanding the suite of attractive where a large part of the population increased by 78% over the same digital content through over-the-top do not have credit cards or bank period. Year-on-year revenue growth (OTT) services is another way in which accounts. In Africa, Airtel Timiza from mobile data ranged from 21% our associates are increasing their was introduced to allow its to 65%. revenue. In Thailand, AIS Playbox was customers access to short-term launched to provide high quality digital loans through their mobile phones. Innovative pricing is helping to drive entertainment with its extensive range Telkomsel also off ered the TCash Tap customer adoption of mobile data. of TV channels, movies, cartoons and sticker – an electronic money service In India, Airtel Night was introduced karaoke songs for home broadband that off ers customers a safe, easy last year, where rebates were off ered customers. AIS has extended this to a and fast way to make payments with to customers who use mobile data mobile platform, AIS Play. Meanwhile, selected merchants.

“Regular face time with our regional mobile associates is essential when it comes to rolling out products and devices successfully. We always diff erentiate our solutions across the region.” – Wendy Tan, Associate Director for Products and Devices, Singtel International 35 SINGAPORE TELECOMMUNICATIONS LIMITED Group Consumer Regional Mobile Associates

POWERING UP THE NETWORKS initiative, mobile data adoption is set provinces in Thailand, with the aim of Our associates are signifi cantly to grow in both cities and rural areas. achieving 50% population coverage expanding their 3G and 4G network Airtel is investing INR 600 billion over by year end. In Indonesia, Telkomsel capabilities to meet the rising the next three years to improve voice currently off ers 4G in about 40 cities, demand for mobile data. Collectively, and data services for customers as part in addition to its 3G coverage, while about S$8 billion was spent on capital of its Project Leap transformation. Airtel in the Philippines, Globe is expanding expenditure in FY 2016, following a was the fi rst to launch 4G in India its 4G coverage and capacity. combined investment of more than and currently off ers 4G in 14 telecom S$13 billion over the previous two circles. In addition, recent spectrum Airtel Africa is also investing in years. AIS, Airtel India and Globe also acquisitions will allow Airtel to off er network infrastructure to support acquired additional 4G spectrum 4G services across the whole of India. its growing mobile data customer during the year. base. It is currently expanding its Signifi cant network expansions 3G network to become the market With India’s government and are also underway across the rest leader in the various markets where it youthful population committed to of our footprint. In January 2016, operates. It has also introduced 4G in transformation via the Digital India AIS launched 4G services across 42 Seychelles, Rwanda and Gabon. ANNUAL REPORT 2016 36

PROMOTING CLOSER cross-pollination of new ideas and reduces the integration eff ort and GROUP COLLABORATION tap into local tech ecosystems. time for our business partners. In Collaboration among Singtel’s Group negotiations for entry-level FY 2016, we signed agreements associates reached new highs in handsets as well as SIMs lower our with online shopping company 2015 as we sought ways to leverage operating costs and help to promote Lazada, gaming company Asiasoft the Group’s scale. the adoption of mobile data. and transport booking app Grab, which allow customers Our Centres of Excellence Our collaborative eff orts also enable to make payments using our framework provides a platform to our content and service partners to associates’ direct carrier billing share business insights, product tap on the Group’s collective billing and mobile wallet capabilities. strategies and operational best capability, both in direct carrier Such arrangements will empower practices across the Group. Group- billing as well as mobile wallets. The millions of customers without wide initiatives such as our annual Singtel Open Platform is a common access to credit cards and bank CEO Forum, Product Innovation payment gateway for Singtel, Optus accounts to participate in online Fair and Mobile App Challenge and our regional mobile associates. commerce with the security and are also designed to encourage This one-stop shop signifi cantly convenience of cashless payments.

Singtel’s Regional Payment Gateway

Content Providers • Asiasoft

App Stores eCommerce • Google Play • Grab • Samsung • Lazada Galaxy Apps • Windows Phone Store

Direct mWallet Carrier Billing