StarHub pursuing network sharing to cut costs
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Singapore’s StarHub has revealed it is pursuing network sharing arrangements to further cut costs, after announcing a planned 12% reduction in the operator’s workforce.
The operator could reach a commercial network sharing agreement shortly and be reaping financial benefits by the end of next year, the company’s CEO Peter Kaliaropoulos.
The company’s new CEO, who took his position in July, said sharing of facilities is a necessity once an industry hits maturity.
StarHub and smaller rival M1 have already indicated that they are evaluating further collaboration on mobile infrastructure sharing to reduce costs.
Earlier this month, StarHub announced it will cut 300 jobs as part of cost reduction efforts aimed at saving S$210 million ($152.3 million) over the next three calendar years.
According to the report, Kaliaropoulos believes StarHub needs to be leaner and more agile and focus its resources on growth areas such as its enterprise business.
The company is under particular pressure due to the recent entry of Australia’s TPG as Singapore’s fourth mobile operator. Kaliaropoulos warned that the Singapore market may not be large enough to sustain four mobile operators, hinting that the smallest player may find it difficult to survive.
Questions & Answers
Q.What is the primary reason StarHub is pursuing network sharing agreements?
What is the primary reason StarHub is pursuing network sharing agreements?
StarHub is pursuing network sharing arrangements to further cut costs. The company's CEO stated that sharing facilities is a necessity once an industry reaches maturity, especially given market pressures from new competitors.
Q.Which other company has StarHub already indicated it is evaluating mobile infrastructure sharing with?
Which other company has StarHub already indicated it is evaluating mobile infrastructure sharing with?
StarHub and smaller rival M1 have already indicated they are evaluating further collaboration on mobile infrastructure sharing. This is part of their broader efforts to reduce operational costs within the Singaporean market.
Q.What financial benefit does StarHub anticipate from a commercial network sharing agreement and when?
What financial benefit does StarHub anticipate from a commercial network sharing agreement and when?
StarHub anticipates reaping financial benefits from a commercial network sharing agreement by the end of next year. This is a key part of their strategy to become leaner and save S$210 million over three years.
Q.What market pressure is StarHub currently facing that makes cost cutting particularly important?
What market pressure is StarHub currently facing that makes cost cutting particularly important?
StarHub is under particular pressure due to the recent entry of Australia’s TPG as Singapore’s fourth mobile operator. The CEO has suggested the market may not be large enough for four operators.
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