Telco revenues ‘set for stagnant growth this year’.
Singporean Telcos, SingTel and StarHub are facing tough times. It seems tough competition is leading to high churn and ARPU erosion. With rumors around a possible new entrant into the mobile market, operators will do best to brace for more of the same. The rumored newcomer is the MyRepublic, a company that is currently providing broadband fiber services. There is some way to go yet before MyRepublic start offering their mobile services – small matters like spectrum and towers.
Similar to many markets, monetizing OTT may be the key in halting decline of Telco revenues traditional voice and SMS revenues.
- Both SingTel and StarHub have trimmed their financial year guidance, OCBC analyst Carey Wong noted, adding that the results for all three telcos had been within his expectations.
- “(Thus), sliding average revenues per user are seen across the board in the second quarter and could continue to edge lower in the coming quarters.”
- More subscribers have been shifting to tiered pricing plans with more restrictive data bundles, but the percentage of these subscribers who exceed their data caps continues to remain below 20 per cent, said Mr Wong.