09 March 2016

Singapore telcos to continue exploration for innovations

Technologies advances over the past few decades had a great impact on telecommunication industry. Today the telecommunication companies are no longer just the "phone companies" but an IT companies offering wide range of services ranging from Internet access, managed services, cloud computing platforms and online security. Traditionally the telcos revenue comes from voice calls and Short Messaging Service (SMS).

With the transformation of technology, messaging services like WhatApp, WeChat and Skype had overtaken SMS and phone calls as the major means of communication. Revenue was affected and they must come out with innovative ideas and applications to maintain their earnings in order to answer to their shareholders and benefits the consumers.

Singtel is not greatly affected by the transformation of technology as they had a very diversified business operation globally such as phone services, TV services, internet fibre/broadband services, managed services and data centre services etc.

Starhub has a slight impact on their earning as they had lost the English Barclays Premier League (BPL) broadcast to Singtel few years ago and for the next 3 years the broadcasting rights still belong to Singtel. They also shared the network infrastructure with Singtel for their internet fibre/broadband services which limit their capabilities in this service aspect. In general, they only provide phone services, TV services and internet fibre/broadband services. They also had a small market share on managed services.

M1 will be the worst hit as compare to Singtel and Starhub. They only had phone services and internet fibre/broadband services. With such a limited services or applications available, how to entice the consumers to engage their services.

With the introduction of the 4th telco, the 3 telcos will certainly lose some of their market shares. They had to continue to innovate with new ideas or create new applications to benefit the consumers to retain their services with them.

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