Connecting consumers to a digital future - Singtel

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Connecting consumers to a digital future - Singtel
Group Consumer

Connecting
consumers to a
digital future
As consumers’ lives become more digital, we’ll bring them the
convenience they need, connecting them to everything they love just
as they’d want it. With our unparalleled network experience and digital
services, access to mobile financial services and rich entertainment
content, smart living will be even faster and easier. We’re investing
in new technologies and innovations to open up a world of digital
possibilities, enriching their experiences, and connecting them to a
digital future.

29
Connecting consumers to a digital future - Singtel
Singapore Telecommunications Limited | Annual Report 2019   30
Connecting consumers to a digital future - Singtel
Group Consumer
Singapore
As Singapore’s fastest and widest network provider, delivering a great customer
experience is our number one priority. We are committed to going beyond
coverage and connectivity to deepen our relationship with customers. Besides
the latest devices and a wide range of plans, we also offer a host of innovative
digital and lifestyle products and services that enhance their lives.

     Engaging                            A digital customer experience
     content                                                       More customers are engaging with us
                                                                   through our digital channels with

     Singtel TV subscribers
     watched a total of                                            1.1m
     179,000
                                                                   managing services through
                                                                   My Singtel app and

     hours of television
     a month.                                                      26%
                                                                   of sales transactions carried out online.
     Source: SG-TAM

CATERING TO CUSTOMERS’                popular shows such as Game of           with the first Singapore-Australia 5G
DIGITAL LIFESTYLE NEEDS               Thrones.                                augmented reality video call, made
To enrich our customers’ digital                                              to our Optus colleagues in Sydney,
lifestyles, we developed exciting     EXTENDING NETWORK LEADERSHIP            Australia.
new products and services to          On the network front, we continue to
meet their diverse needs. Our all-    deliver on our commitment to provide    DOUBLING DOWN ON CONTENT AT
digital mobile plan, GOMO caters      superior connectivity and coverage.     HOME AND ON-THE-GO
to millennials and digital natives    For a record 17 consecutive quarters,   Quality content is an important
who need huge data allowances         we topped IMDA’s 4G quality of          part of our customer engagement
and fuss-free terms which allow       service chart with a 99.9% outdoor      strategy. We continue to enhance our
them to sign up for and manage        coverage score.                         Singtel TV and Singtel CAST offerings
their plans online. We now offer an                                           to connect customers to premium
Amazon Prime membership that          We are paving the way to 5G by          content at great value and on their
comes with 2-hour delivery times      launching Singapore’s first 5G pilot    preferred platforms. During the
for groceries and entertainment       network and first live 5G facility      year, Singtel TV launched e-Le, our
content perks. We also refreshed      in collaboration with Ericsson and      second in-house Asian entertainment
our XO plans with an expanded         Singapore Polytechnic. Called 5G        channel, extended our Premier League
line-up, bundled with 24 months       Garage, the facility allows companies   rights and added Discovery lifestyle
of premium HBO GO content on          to ideate and test 5G use cases.        channels, as well as the full-suite of
us, so customers can watch hugely     We also created network history         HBO channels. We now offer Premier

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Connecting consumers to a digital future - Singtel
OVERVIEW
League matches to everyone in                      We know many of our customers are                     increasingly turning to our self-help

                                                                                                                                                         BUSINESS REVIEWS
Singapore, with the contract-free                  gamers who count on us for reliable                   platforms such as our 24/7 self-
Sports Plus pack on Singtel CAST.                  and secure broadband connectivity.                    serve kiosks and My Singtel app
                                                   In 2018, we added an ultrafast                        for on-demand assistance. More
POWERING UP OUR HOME                               broadband service with a dedicated                    than 65% have opted to complete
SERVICES                                           1Gbps bandwidth specially designed                    transactions on these channels.
Singapore’s Open Electricity                       for gaming.                                           We will continue harnessing
Market initiative marked a new                                                                           technologies such as AI, to provide
chapter for us. We launched Singtel                TRANSFORMING THE CUSTOMER                             customers with top-notch service
Power to offer electricity plans to                SERVICE EXPERIENCE                                    innovations that add value and
our customers for the first time,                  We are choosing to engage our                         convenience to their lives.

                                                                                                                                                         GOVERNANCE AND SUSTAINABILITY
partnering Geneco to deliver savings               customers in new ways, strengthening
to residential households. With the                our digitalisation efforts across key
addition of Singtel Power, we are                  touchpoints – at our Singtel shops,
excited to be a convenient one-stop                online shop, hotline, web chat and
shop for our customers’ power and                  My Singtel app. In addition to making
communications needs.                              purchases online, customers are

                                                                                                                                                         PERFORMANCE
                                                                                                                                                         FINANCIALS
                                                                                                                                                         ADDITIONAL INFORMATION

Singtel Consumer Singapore CEO Yuen Kuan Moon with Jonathan Spink, CEO, HBO Asia mark our collaboration in the presence of iconic Game of Thrones
characters, the ‘Night King’ and his ‘White Walkers’.

                                                                                Singapore Telecommunications Limited | Annual Report 2019           32
Connecting consumers to a digital future - Singtel
Group Consumer
Australia
Optus is going further to connect customers with exceptional service, network and
value. These three areas underpin our vision to become a world class digital service
provider and stay ahead of the game.

     Leading the                                                  Mobile network
     way in 5G                                                    leadership
                      Launched Australia’s                                         We have invested

                      1st
                      commercial 5G service.
                                                                                   A$5.9b
                                                                                   since 2015 to improve our
                                                                                   networks.
                      On our way to deliver

                      1,200                                                        Our 4G network reaches

                      2020
                       5G sites by
                                                                                   97.3%
                                                                                   of the population.

LEADING IN 5G TECHNOLOGY                   5G sites by March 2020, more Optus      Since 2015, Optus has invested A$5.9
In January 2019, Singtel, Optus and        customers will soon be enjoying the     billion to improve our network reach,
Ericsson successfully made a 5G            5G experience.                          capacity and quality. Our 4G service
video call between Singapore and                                                   now covers 97.3% of the Australian
Australia which used augmented             Fixed wireless access is the first      population and we will continue to
reality - a worldwide first. This proved   usable application for 5G. As 5G        improve our network in the areas
our 5G agility and was a key step in       infrastructure rolls out, mobile, IoT   where Australians live, work and play.
our commitment to lead 5G delivery         and applications yet to be invented
in Australia. We also revealed the first   will leverage our next-generation       In regional Australia, we reinforced
details of our game-changing Optus         network and provide Optus customers     our commitment to a strong
5G Home Broadband service in the           with even more amazing experiences.     nationwide network with our
Australian Capital Territory and in                                                executive team striking out on visits
the process, became the first carrier      PROVIDING PREMIUM NETWORK               across the nation, including Hobart
in Australia to offer customers a 5G       COVERAGE                                and Launceston in Tasmania and
fixed wireless access service.             Optus continues to deliver premium      Adelaide and the Barossa Valley in
                                           network coverage and connectivity       Southern Australia. The executive
With our comprehensive spectrum            that customers need, where they         team spoke with customers, local
assets and robust plan to deliver 1,200    need it, at a competitive price.        businesses and community groups,

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Connecting consumers to a digital future - Singtel
OVERVIEW
and unveiled investment in the           live and on-demand content, along           CREATING THE OPTUS OF

                                                                                                                                BUSINESS REVIEWS
areas visited. The independent           with expert analysis and highlights.        THE FUTURE
and respected P3 Connect Mobile                                                      With our business transformation now
Benchmark for 2018 ranked Optus as       Optus has doubled down on football          in full swing, we are embracing new
number one across voice and data for     content, extending its Premier League       technology and looking to efficiencies
smaller towns and roads –                rights and adding UEFA Champions            through digitalisation, advanced
a recognition of the strength of our     League, UEFA Europa League and              analytics and AI as we evolve
network.                                 UEFA Nations League to Optus Sport.         into a more innovative and agile
                                                                                     organisation.
Along with this strong, growing          Along with this, National Geographic’s
nationwide network, Optus offers         enhanced, new-look app, in                  We are making sure our customers

                                                                                                                                GOVERNANCE AND SUSTAINABILITY
Australians choice, value, and           partnership with Optus, provides            see the benefits too. We know more
competitive pricing.                     users with a personalised content           and more customers wish to make
                                         experience that offers live streaming       changes and solve issues digitally, so
DELIGHTING CUSTOMERS                     channels, an immense photo library,         we continue to provide more digital
WITH CONTENT                             digital articles, National Geographic       options for them to do so, including
We also know many of our customers       magazine archives and more than             in-app features for My Optus app
value content, and our content           3,000 captivating short-form videos         such as activation, and improved
offerings are delighting customers. As   and documentaries, including                messaging and engagement.
the home of elite European football,     new content produced with Optus
Optus Sport provides customers with      exclusively for the app.

                                                                                                                                PERFORMANCE
                                                                                                                                FINANCIALS
                                                                                                                                ADDITIONAL INFORMATION

                                                               Singapore Telecommunications Limited | Annual Report 2019   34
Connecting consumers to a digital future - Singtel
Group Consumer

The CEO Conversation

Connecting customers to
a digital future
Increasingly connected digital lifestyles have dramatically changed what
customers expect of telcos. Consumer Singapore CEO Yuen Kuan Moon and
Optus CEO Allen Lew share how Singtel and Optus are evolving to better serve the
digital consumer and stay competitive.

As the Singapore and Australia         experiences. Sustained mobile             can expect us to go bigger on
markets get more crowded, how          network investment emphasises             digital and lifestyle services and
are Singtel and Optus staying          our network leadership claims             be the one-stop shop for all their
ahead of the competition?              particularly with the introduction of     communications and lifestyle needs.
                                       Optus 5G Home Broadband – the
Moon: We are upping the ante to        first service of its kind in Australia.   Allen: The telecommunications
create more value for our customers.   Our exclusive content is a key            industry has undergone significant
From connectivity to content, we       differentiator. Our customers can’t       disruption and the landscape we face
are creating a range of services       get enough of Optus Sport and our         today is very different from before.
and products that give our different   expanded global content offering          Our world is increasingly reliant on
customer segments what they need       with National Geographic.                 mobile devices and network access.
at best value rates. One example is                                              Mobile devices are often the first
our XO mobile plans bundled with up    Our focus areas of exceptional value,     thing we look at in the morning and
to 24 months of HBO GO which gives     exceptional network and exceptional       the last thing before we go to bed
customers the services they need       customer service are also resonating      – and in between, they allow us to
with the content they want.            with our customers.                       communicate, share and stream with
                                                                                 our family, friends and co-workers.
As technology evolves, the Singtel     What is the focus of your strategy?       With increased dependency on our
customer experience is being                                                     services, customers’ expectations are
transformed radically. We have         Moon: We are focused on                   higher than ever and we’re going
ramped up digitalisation, making it    accelerating the next phase of            further to deliver against them across
faster and easier for customers to     our transformation, to go beyond          all parts of our business.
engage with us. 26% of our customers   our core carriage foundations to
now make purchases online and          deliver the best customer experience      What services are important to the
about 65% engage with us through       possible, whether it’s online or in-      digital consumer and how are you
digital self-help channels.            person. Our customers tell us they        differentiating yourselves in these
                                       want more content, convenience            areas?
Allen: Optus continues to              and digital engagement, with
differentiate through our premium      none of the fuss. This presents a         Moon: Exclusive and differentiated
national network, exceptional value    great opportunity to deepen our           content is what sets us apart and
offers and game-changing customer      relationship with them. Customers         customers are thrilled with our

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Connecting consumers to a digital future - Singtel
OVERVIEW
                                                                                                                                BUSINESS REVIEWS
                                                                                                                                GOVERNANCE AND SUSTAINABILITY
We are focused on accelerating                               With increased dependency on our
the next phase of our                                        services, customers’ expectations
transformation, to go beyond                                 are higher than ever and we’re
our core carriage foundations                                going further to deliver against
to deliver the best customer                                 them across all parts of our
experience possible.                                         business.
Yuen Kuan Moon                                               Allen Lew
CEO, Consumer Singapore                                      CEO, Optus

                                                                                                                                PERFORMANCE
Singtel TV and Singtel CAST offerings    they want it. For example, with             exploring potential 5G use cases,
of Premier League football, Discovery    sports being such a huge pastime            building an ecosystem and preparing
lifestyle channels and ethnic content    in Australia, I’m proud that Optus is       our core infrastructure for when
on in-house channels Jia Le and e-Le.    broadcasting all 52 matches of the          spectrum is allocated and standards
On average, each household watches       2019 FIFA Women’s World Cup which           are finalised.
more than 100 hours of content a         commences in June and cements
month across multiple platforms          our reputation as the premium               Allen: 5G is here, and it’s a game
so content is a key priority and we      broadcaster of elite football in            changer. It presents significant

                                                                                                                                FINANCIALS
will continue to invest in boosting      Australia.                                  consumer and enterprise
our line-up. In addition, customers                                                  opportunities, and as a provider of
can expect more personalisation,         As we enter a 5G era, what can              5G services, I see a major role for
such as real-time recommendations        customers expect from you in this           Optus in the digitalisation of the
on products and services relevant        area?                                       economy and the economic benefits
to their needs, and smarter, on-                                                     that will result from it.
demand, digital customer service.        Moon: We are seeing 5G deployed
                                         as fixed wireless access solutions          We have launched our 5G Home
Allen: Globally, there’s a significant   in large countries to enable high-          Broadband plans and set a robust
                                                                                                                                ADDITIONAL INFORMATION

shift in viewing behaviour and           speed internet. In Singapore, it’s          rollout plan to deliver 1,200 5G
video consumption. Optus has long        a different story. With residential         sites by March 2020. Soon, Optus
recognised that content is king in a     fixed broadband penetration                 customers across Australia will be
digital world and we are investing       rates at almost 94%, consumers              enjoying the 5G experience.
to bring premium content to our          already enjoy one of the world’s
customers where they are, whenever       fastest connections. We are actively

                                                               Singapore Telecommunications Limited | Annual Report 2019   36
Connecting consumers to a digital future - Singtel
Group Consumer
Regional Associates
As consumers in the emerging markets grow increasingly reliant on their phones
for access to essential services, our regional associates have seen the demand for
data and digital services increase dramatically. This has spurred the Singtel Group
to build a regional ecosystem of digital services to serve the some 690 million mobile
customers across our regional footprint.

     Asia’s first cross-border                                             Game on
     mobile payment alliance                                                             Our inaugural PVP
                                                                                         Esports Championship
                                                                                         attracted over

                                                                                         18,000
     VIA connects               and will soon
     more than                  add some

     6m
     mobile wallet
                                14m                                                      gamers from around
                                                                                         the region with the
                                mobile wallet users and                                  live finals watched by

                                                                                         13m
     users to over

     1.7m                       200,000                                                  viewers online.
     merchants in               merchants in the region.
     Singapore and
     Thailand

DIGITALISING TO ENHANCE                  gaming directly through their own        and Globe expanding their fixed
CUSTOMER EXPERIENCES                     mobile apps, such as My Airtel, AIS      wireless home base in the Philippines.
The growth in demand for digital         Play and Telkomsel’s MAXstream.
services across the region has seen                                               IMPROVING MOBILE FINANCIAL
our associates respond quickly           To meet the growing demand for           OFFERINGS
with innovative digital products         data, our associates collectively        As a Group, we are improving our
and services. They are investing         invested S$8.9 billion in their          mobile financial offerings to bring
resources to digitalise processes,       networks over the past year to deliver   greater convenience to customers
developing channels such as online       faster, seamless connections and         and drive financial inclusion. We
self-care services and fielding          prepare for the next generation of       are enhancing our mobile wallets,
virtual assistants to help them better   connectivity.                            expanding our merchant networks
engage customers and handle the                                                   and introducing more services that
higher volumes of interactions from a    They also continue to push services      will help our customers, in particular
growing customer base. Digitalisation    and solutions for small homes and        the unbanked or under-banked, plug
has also allowed them to deliver         businesses that complement their         into the digital economy. In Indonesia,
more targeted and personalised           mobile offerings, with AIS making        Telkomsel’s Tcash is now LinkAja, a
content such as music, video and         inroads with AIS Fibre in Thailand,      single mobile payments platform to

37
Connecting consumers to a digital future - Singtel
OVERVIEW
facilitate cashless transactions, from                 growth potential in the region. To                       PVP Esports Championship was a

                                                                                                                                                                     BUSINESS REVIEWS
utilities and transport payment to                     realise that vision, we debuted VIA,                     huge success with the live finals
e-shopping, all without the need for                   Asia’s first cross-border mobile                         played before a sold-out audience
a bank account. In the Philippines,                    payment alliance. VIA gives travellers                   and broadcast on major streaming
Globe has embarked on data-driven                      the convenience of using their local                     platforms such as Twitch, Facebook
lending, assigning a “trust score”                     wallets that are part of the alliance at                 and Douyu.
to customers based on their GCash                      participating merchants in the region
usage to determine credit worthiness.                  at competitive exchange rates, and                       We are extending our gaming focus
                                                       widens the reach of small merchants                      by exploring opportunities with
In Singapore, Dash partnered                           to millions of consumers. Initially                      like-minded partners to drive the
with Apple and VISA, extending its                     launched between Singapore and                           development of a vibrant gaming

                                                                                                                                                                     GOVERNANCE AND SUSTAINABILITY
acceptance network internationally                     Thailand with AIS and Kasikornbank,                      community in the region. We signed
through ApplePay and VISA                              VIA will soon be available in more                       an MOU with South Korean gaming
Contactless points, and added                          countries such as Malaysia through                       giant SK Telecom to grow regional
Myanmar to its existing remittance                     Axiata Digital’s Boost wallet and Japan                  gaming leagues, develop content
corridors.                                             through Netstars.                                        and explore game distribution,
                                                                                                                with the aim of delivering a more
BUILDING A MOBILE FINANCIAL                            ENGAGING CONSUMERS THROUGH                               holistic gaming experience for our
SERVICES ECOSYSTEM ACROSS                              GAMING AND DIGITAL CONTENT                               millennial customers.
THE REGION                                             To connect with a millennial audience,
The Group is leveraging its telco                      the Group is moving towards
assets and scale to build a mobile                     becoming a leader in offering high
financial ecosystem that will unlock                   quality gaming content. Our inaugural

                                                                                                                                                                     PERFORMANCE
                                                                                                                                                                     FINANCIALS
                                                                                                                                                                     ADDITIONAL INFORMATION

Singtel and AIS executives with Guest of Honour Thailand’s Minister of Digital Economy and Society, Dr Pichet Durongkaveroj (centre), at the launch of VIA in
Bangkok.

                                                                                      Singapore Telecommunications Limited | Annual Report 2019                 38
Group Consumer
Regional Associates

The CEO Conversation

Building an ecosystem
of digital services for
the region
Consumers are adopting a more digital lifestyle as the region pushes toward a
connected digital economy. How is Singtel leveraging the strengths of the Group
to stay ahead? International Group CEO Arthur Lang shares his thoughts on our
regional strategy.

Some of Singtel’s associates        deliver fibre broadband in Thailand        Why have you decided to expand
are facing fierce competition       and Globe ready to launch 5G fixed         into mobile financial services with
in their markets. What is           wireless home broadband services in        Dash and VIA?
the Group’s strategy in this        the Philippines later this year. We’re
challenging environment?            also focused on product and services       Arthur: The domestic wallet
                                    innovation to deliver a better customer    business is fragmented and hard to
Arthur: It remained a challenging   experience for our 690 million mobile      differentiate, with demand for mobile
year for Airtel, but the market     customers. For instance, in Indonesia,     financial services – not just payments
in India is starting to stabilise   a vibrant hub for start-ups, Telkomsel     – on the rise. Against this backdrop,
and return to a healthier and       established an investment fund to          we see the potential for our mobile
more sustainable structure.         help promising companies accelerate        wallet Dash to be the foundation on
With customers consuming an         growth. This is with a view of tapping     which to develop a larger ecosystem
average of 11Gb of data each        into their ideas to enhance our content    of financial services. As we expand
month, I remain optimistic about    and digital services offerings that will   its merchant network and add more
India’s future in a data-driven     help us monetise data growth.              services, Dash is evolving into an
economy. Elsewhere in the region,                                              app for all our customers’ everyday
we are starting to see reduced      The associates remain some of the          financial and lifestyle needs whether
headwinds.                          strongest operators in their markets,      in-store or online. Our associates are
                                    and with high mobile penetration and       also executing similar strategies with
It has always been our strategy     mobile-first lifestyles in the region,     their own mobile wallets.
to lead in network superiority      I am excited about the tremendous
and we are strengthening this       growth potential of Asia’s emerging        We created VIA, Asia’s first cross-
leadership through continued        markets as we build a regional             border mobile payment alliance, to
investment which has seen AIS       ecosystem of digital services.             differentiate our wallets from many

39
OVERVIEW
                                                                                    pool of customers. The reach of the

                                                                                                                               BUSINESS REVIEWS
                                                                                    network has tremendous potential
                                                                                    to benefit everyone. With such a
                                                                                    platform, we can branch out to offer
                                                                                    a greater range of financial services.
                                                                                    We look forward to engaging the rest
                                                                                    of our associates and inviting more
                                                                                    partners to VIA as we enter into the
                                                                                    second stage of this journey.

                                                                                    You’ve also made similar bold

                                                                                                                               GOVERNANCE AND SUSTAINABILITY
                                                                                    moves in esports. How do your
                                                                                    esports initiatives synergise with
                                                                                    your other digital businesses?

                                                                                    Arthur: Our esports initiatives are
                                                                                    part of the Group’s larger efforts to
                                                                                    grow our digital content business
                                                                                    and engage millennial and Gen Z
                                                                                    audiences. Our services such as
The associates remain some of the strongest                                         content, high-speed broadband
                                                                                    and payments, along with the
operators in their markets, and with high                                           billing relationships we have with
mobile penetration and mobile-first                                                 customers, put us in a unique position
                                                                                    to offer digital services, making

                                                                                                                               PERFORMANCE
lifestyles in the region, I am excited about                                        gaming more accessible while
                                                                                    improving the experience.
the tremendous growth potential of Asia’s
emerging markets as we build a regional                                             The aim is for PVP, our gaming brand,
                                                                                    to be a major ecosystem partner in
ecosystem of digital services.                                                      the regional gaming and esports
                                                                                    scene. Through our PVP Esports
Arthur Lang                                                                         leagues and collaboration with like-
CEO, International Group                                                            minded partners, we hope to bring

                                                                                                                               FINANCIALS
                                                                                    gaming into the mainstream and
                                                                                    connect with gamers and youths.
localised wallet systems and to        interoperable platform that allows           We are excited to be sponsoring
address the fragmented payments        any wallet to easily tap into a larger       Singapore’s first esports SEA Games
scene in the region. We see both       consumer and merchant network                teams in 2019 and look forward
Dash and VIA as twin engines of        across Asia. This means partners can         to bigger things to come. We
growth in mobile financial services.   access a huge addressable market             see tremendous opportunity in
                                       with us as we build up the alliance,         the network effect of the gaming
                                                                                                                               ADDITIONAL INFORMATION

How are you building on VIA to         just as our customers will enjoy             community and believe in the long-
create a larger financial services     greater connectivity and shopping            term prospects of this market.
ecosystem?                             options across the region.

Arthur: VIA is the key to connecting   This also opens up smaller hyper-
the region and beyond with an          local merchants to a much larger

                                                              Singapore Telecommunications Limited | Annual Report 2019   40
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