6 Key Telecommunications Industry Trends StarHub Ltd Wants You To Know

Telecommunications outfit StarHub Ltd  (SGX: CC3) had released its latest annual report a few months ago.

The report, which is is a great place to learn more about the telco, contained a section titled Industry Trends. StarHub shared six major trends in it that could become the company’s future challenges and/or opportunities.

Mobile data all the way

“Globally, we have seen the decline in voice usage, substituted by OTT apps. Consumers prefer to instagram, message, tweet and whatsapp rather than talk on the phone. Also, content viewing is no longer confined to one spot. Consumers view content anytime, anywhere and with any device.”

Consumer behaviour is shifting towards more use of mobile data. In its latest quarter, StarHub reported that mobile revenue fell due to lower IDD, voice, and roaming usage. At the same time, 65% of its customers have signed up for a mobile data package.

Smart Cities are the way to go

“Changes keep us on our toes; changes keep us excited; changes open up new possibilities. And one huge change many cities around the world now want is to become Smart Cities.”

The Smart Nation program in Singapore, administered directly by the Prime Minister’s office, will be looking to tap on ICT (information and communications technology), networks, and data to support better living in our Garden City. StarHub believes that it can play a role in providing connectivity and applications.

Smart homes

“The nation’s foundation has to be hundreds of thousands of homes – the lynchpins of our lives, the place where we return to the warmth of our families. We believe a Smart Nation starts from having Smart Homes.”

The Smart Home program will be tapping on the Internet of Things (IoT) trend, which could enable wider access to home services such as security monitoring and tele-health systems. Elsewhere, StarHub acknowledges that the “cord cutting” phenomenon is occurring around the world. The telco believes that OTT (over-the-top) video streaming services such as Netflix will complement what it has to offer.

Multi-function STT MediaHub

“The STT MediaHub will add capabilities in many different areas for all our customers. Besides being a key facility for our telecommunications and media assets, it will also be the latest inclusion to our portfolio of data centres.”

StarHub noted that consumers makes up a big part of its current business, for now. The key phrase here is “for now.” The telco believes that there is a larger addressable market in the enterprise and small medium business (SMB) markets. The MediaHub will add capabilities for StarHub to better serve enterprise and SMB customers.

Smart Use of SmartHub

“With our SmartHub providing marketing analytics, we can help corporate customers generate better returns for less. Through anonymised data collected via our networks, we can help turn such data into insights into smarter decision-making.”

The MediaHub will house StarHub’s big-data analytics arm, SmartHub, as well. Big-data analytics is another key area in which StarHub might be able to help its enterprise customers. An example would be Smart Targeting solutions for advertisers using data analytics under StarHub’s pay TV platform.

Heterogeneous Networks (HetNet)

“To strengthen Singapore’s connectivity infrastructure, the regulator is exploring the concept of a HetNet. Its role is to provide an improved user experience through seamless switching between different types of wireless networks such as cellular and Wi-Fi networks, and the use of small cells to complement macro cells in increasing network capacity.”

HetNet refers to networks which are typically a mix of macro base and small cells. StarHub is partnering with Huawei and Nokia to test HetNet. The telco expects to expand HetNet coverage to some 40 commercial buildings and shopping malls by the end of this year.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong owns shares in Netflix.