COMPANY OVERVIEW
M1 is an established infocomm brand that provides cellular mobile communications services to over 1.75 million customers in Singapore, international call services to mobile and fixed-line users, wireless broadband services to home, mobile and business users, and fixed broadband services to home and business users.

M1 offers a wide range of mobile voice, non-voice and value-added services on its nationwide cellular network and is widely recognised as an innovative operator. With emphasis on quality, customer service, innovation and value, M1 aims to take the lead in personal and business voice and data communications. Customers subscribe to M1’s mobile services on either a postpaid or prepaid basis through a variety of price plans. M1’s wireless broadband service - M1 Mobile Broadband,

was launched in 2006, offering customers a choice of service plans at different access speeds. In 2008, M1 became a full-fledged broadband service provider when it introduced M1 Fixed Broadband service for home users. M1 took a further step forward in 2009 with its acquisition of a corporate Internet Service Provider (ISP), giving the Company access to the corporate fixed services space.

In the area of international call services, M1 offers mobile and fixed-line customers International Direct Dial (IDD) services using prefixes 002 and 021, and an International Calling Card (ICC) service using prefix 1818. M1 also sells international wholesale minutes to other international service providers.

M1 commenced commercial operations in April 1997 with the launch of its GSM network. It subsequently rolled

out a WCDMA network and began offering 3G services in February 2005. In December 2006, the 3G network was upgraded with High Speed Downlink Packet Access (HSDPA) to increase network efficiency and support broadband services. The HSPA network was further upgraded in 2008 to support High Speed Uplink Packet Access (HSUPA) and is currently capable of supporting downlink and uplink throughputs of up to 28Mbps and 3Mbps respectively.

The Company holds Facilities-Based Operator (FBO) licences for the provision of telecommunication systems and services and a telecommunication dealer’s class licence, issued by the Info-communications Development Authority of Singapore (IDA). In addition, the Company also holds an Internet access service provider licence issued by the Media Development Authority (MDA).

M1 started the year with the launch of Take3 in February, an innovative and customer-friendly handset programme that was the first of its kind in Singapore. Take3 provides customers with handsets, thereby freeing them from incurring upfront expenses for such purchases. Customers simply sign up for their desired bill plan from a choice of four plans, take a handset within the eligible bill plan and exchange it for another handset from as early as nine months into their contractual period. The programme, introduced in response to customer feedback for greater flexibility, was well received by customers.

M1’s continued efforts to give customers more value and choice saw the introduction of the SuperPac Plan in September. This is an innovative tariff plan that allows customers to enjoy the benefits of postpaid mobile services

without contractual commitments. The plan, which comes with benefits such as all-day free local incoming calls, free local outgoing calls and 3G data surfing from 12.00am to 10.00am daily, as well as free IDD calls to 19 destinations, serves the needs of cost-conscious customers who are able to track their spending without foregoing the benefits of the postpaid plan that they are accustomed to.

The year ended on a high note with the launch of iPhone in December, and the introduction of tariff plans that led the market with attractive value propositions. Customers may choose from a range of new 3G tariff plans tailored to the iPhone. These include getting the phone at no upfront cost on the Take3 programme, monthly subscriptions starting from as low as $36, or among other things, a generous data bundle for surfing the Internet and downloading from a vast suite of online applications.

Prepaid Mobile Despite aggressive market competition, M1’s prepaid customer base grew 13.1% over the previous year to 846,000, driven mainly by numerous marketing programmes aimed at addressing both the mass market and niche segments. These include:

• M Card promotions to drive usage and attract customers from foreign segments, such as Malaysia, Vietnam, the Philippines and Indonesia,

• Attractive IDD 021 rates for calls to India and Bangladesh on M Card,

• A wider choice of top-up value denominations and top-up methods, such as credit card payment for top-ups done through the Internet.

To strengthen links with the fast-growing base of foreign customers, M1 sponsored several events in celebration of the Myanmarese New Year, Tamil New Year, Bangladeshi New Year and the Deepavali
Light-Up.

These events also benefited M1 in driving sales. As the global economy started to recover, M1 also stepped up momentum during the year to target inbound travellers, such as with the Global Starter Pack programme, where M1’s prepaid cards are sold at travel agencies in Malaysia and Indonesia.

MOBILE BROADBAND
M1’s Mobile Broadband service made significant strides in customer growth during the year, with innovative products and tariffs, as well as value-for-money offers. One of these initiatives is the introduction of Singapore’s first prepaid mobile broadband service, which offers unlimited data usage for a specified number of days at connection speeds of up to 7.2Mbps island-wide. This service appeals to customers who do not wish to be tied to service contracts, such
as inbound

travellers. M1 also partnered Novatel Wireless to offer MiFi, the industry’s first ultra-portable Intelligent Mobile Hotspot that allows users to create their own personal Wi-Fi hotspots wherever they go instead of using a non-secure public access point.

FIXED BROADBAND
M1 took a significant step forward to become a full-service provider when it acquired an established corporate ISP in September 2009, now known as M1 Connect Pte. Ltd. The acquisition allows M1 to enter the corporate fixed broadband business quickly through the use of M1 Connect’s existing platform to derive synergies and grow M1 as a full-service operator. M1 Connect offers a full suite of data and communications products and services to corporate, enterprise and public sector customers in Singapore, and also holds the rights to provide indoor and outdoor wireless broadband access under IDA’s Wireless@ SG programme.

During the year, M1 expanded its fixed broadband offerings to include ADSL services to complement its cable modem services. M1 also continued to build up capabilities in the fixed space, ensuring that the Company is well-positioned as a Retail Service Provider (RSP) to provide fixed broadband services to both retail and enterprise customers when the NGNBN is commercially launched.

PRODUCTS AND SERVICES
In 2009, M1 launched numerous innovative and exciting
services, including:

• Makan: This venture with Rednano (a local online search and directory service), offers customers location-based information on good eating spots with the added advantage of pinpointing the ones closest to wherever they are.

• M1 Global Yellow Pages Advertising Listing Service: This service, introduced in partnership with Global Yellow Pages Media, offers customers a new avenue to list their contact details and advertise their services. It is especially useful to business owners or service providers who do not operate out of dedicated business premises or subscribe to fixed-line phones.

• MMS News, SMS News: With this service, customers can choose to receive daily news alerts either in MMS or SMS as a subscription service. The news categories include Singapore, Asia-Pacific, World and Asian Entertainment.

• Reuters Breaking News Alert: This news alert service gives customers access to full-length articles instead of just summaries and headlines. This subscription-based service is pushed to

customers’ mobile phones and covers a wide range of news, including local, international, business, entertainment and sports.

SALES AND DISTRIBUTION
M1 has a nationwide network of operator-owned retail shops (M1 Shop) and operator-appointed distributor outlets that serve the consumer segment, as well as an enterprise sales team that serves the business segment. As at 31 December 2009, M1 operated a total of 12 M1 Shop outlets. In addition, M1 runs an e-shop (www.m1shop.com.sg), which
sells mobile phones and
accessories online.

“YOU DESRVE BETTER” CAMPAIGN
With M1 continuing its strategy to focus on the customer first, the Company built its brand by leveraging on the ‘You Deserve Better’ theme. The 'You Deserve Better' launch campaign involved challenging people to question the

status quo. Thereafter, M1 demonstrated that it was not just about better deals but about better customer benefits through tangible offerings throughout the year. By truly understanding its customers’ needs, M1 showed it provided value to customers with the launch of the innovative Take3 programme, as well as enhanced tariff service plans such as the improved Multi Line Saver and youth programmes. M1 also rolled out the network of the future, catering to customer needs today and their dreams tomorrow, as well as aims to consistently deliver a level of genuine service that is no less than what the Company would demand of itself.

M1 will continue to focus on being the most customer-centric telecommunications company in Singapore, as the Company believes that the best way to take care of its business is to take good care of its customers first.