StarHub pursuing network sharing to cut costs

18 Oct 2018
00:00

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 told Bloomberg.

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.

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