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IN DISCUSSION
WITH STARHUB’S
MANAGEMENT
Q A DENNIS CHIA Q A KEVIN LIM
CFO CCO
As the new CFO, do you have plans to make How is the enterprise business coming along?
changes to the dividend payments?
We have been steadily growing the enterprise business with a targeted
The Board takes a forward three-year view of the approach. This has been paced with the build up of our infrastructure,
Company’s earnings, free cash flow, growth plans and solutions and capabilities to support the needs of customers. We lead
balance sheet efficiency to determine the appropriate in some sectors such as hospitality where we serve about 90% of the
level of dividend payment. The preference is to make businesses. In other sectors, we continue to penetrate the verticals with
sustainable dividend payments, as the Board believes fixed and mobile connectivity solutions, premium content and content
in providing greater assurance and clarity to our delivery services and communications services. Our partnerships with
shareholders. global technology providers and carriers like Vodafone, have allowed us to
accelerate our successes.
Can you share details on where the CAPEX As infrastructure is key to all services, we continue to roll out our fibre
is needed? network island-wide, over and above the Next Gen NBN, to provide critical
connectivity solutions for greater diversity. We have also invested in a low
A large portion of the CAPEX is used for maintenance latency solution to serve the financial sector both domestically and in the
of the IT infrastructure and various networks we own region. As enterprise mobility becomes a key component of a company’s
like the Fixed and Mobile networks. The remainder is strategy, our mobile network has been enhanced to provide outdoor and
used for spectrum payments and enhancement of our indoor coverage with 3G to LTE-Advanced technologies.
own fibre network.
Not stopping there, we have also deployed and are testing TDD-LTE cell
In 2013, we participated in the 4G spectrum auction sites in certain areas of the island. Additionally, we are testing TV White
which resulted in two payment tranches; one in 2014 Spaces and small cells technology to ensure we leverage the best that
and the other in 2016. In 2016, some of the CAPEX will technology has to offer to serve our customers.
go towards making that payment. We have highlighted
in previous years that we want to be a strong player in Our recent tie-up with our strategic partner, ST Telemedia’s wholly-owned
the enterprise space. As such, it is necessary for us to subsidiary, STT GDC, on the STT MediaHub project will stand us in good
invest and enhance our own fibre network as having stead. STT MediaHub is slated to be a carrier-neutral and highly secure
our own extensive infrastructure is essential. Tier 3 data centre facility, managed and operated by STT GDC. With the
synergy between ST Telemedia’s global presence and our extensive
In your previous companies, you have done facilities management experience, it will have the advantage of attracting
M&As for them. Will you be doing the same enterprise customers in Singapore and beyond.
at StarHub?
Beyond connectivity, our investment in SmartHub, our big data analytics
We are operating in an environment where the division, will see us providing customer insights solutions to enterprises
traditional way of running a telecoms business is slowly as they strive to understand their customers better. We have already
disappearing. You no longer need to invest in CAPEX launched our Smart Targeting solution for advertisers using data analytics
intensive networks or be based locally. You could on our TV platform. We are working with several large establishments on
develop an OTT app that has global appeal and your insights solutions for marketing initiatives.
office can be offshore.
The enterprise business has contributed positively to both top line
In that light, we are looking at adjacent businesses that and more importantly, profitability to the group and we expect this will
will help our existing business leap-frog our growth. continue strongly.
We will look at each opportunity with a measured
financial approach and will definitely keep the market
abreast of such developments.
