Operating and Financial Review
Market Developments
As at 31 December 2007, Singapore’s cellular mobile penetration was 122.5%, which was 19.1 percentage points higher than that a year ago1. Out of the total market cellular mobile customer base of 5,619,200, 53.7% were postpaid customers and 46.3% were prepaid customers1.
IDA announced that implementation of the enhanced Mobile Number Portability (MNP) solution will be targeted for launch by the second quarter of 2008. This will allow users to switch between telecom service providers and retain their existing numbers in a more efficient manner. Market competition may increase in the run up to the introduction of MNP as mobile operators seek to both attract and retain customers, however, it is premature to ascertain any potential impact MNP may have on M1.
On 15 June 2007, the Spam Control Act 2007 came into effect, followed by the introduction of the Code of Practice for the Provision of Premium Rate Services (PRS) in October 2007. Both legislations aim to safeguard consumers’ interest against spam and unsolicited services and promote responsible business practices. M1 will adhere to the Act in its business practices.
On 11 December 2007, IDA launched the Request-For-Proposal (RFP) for interested parties to submit their bid to rollout the first phase of the ultra high-speed Next Generation National Broadband Network (NGNBN) which will connect all of Singapore. The network which is intended to be carrier-neutral, would provide open access to all service providers to reach connected customers. M1 has partnered City Telecom (HK) Ltd to jointly participate in IDA’s RFP to design, build and operate the passive infrastructure layer of the NGNBN. Results of the RFP will be announced in 2008. As M1 is currently not in the fixed broadband business, it views the NGNBN as an opportunity to develop new areas of growth beyond the existing wireless business.
1 Based on published IDA statistics as at December 2007
