M1 is committed to fair, transparent and responsible business practices in our dealings with customers, suppliers and business partners. We strive to abide by and surpass regulatory requirements and business expectations.

M1 is committed to fair, transparent and responsible business practices in our dealings with customers, suppliers and business partners. We strive to abide by and surpass regulatory requirements and business expectations.

Economic performance

A summary of our key economic indicators:

Economic indicators	2012 (S$m)	2011 (S$m)
Operating revenue	1,076.8	1,064.9
Net profit after tax	146.5	164.1
Operatingcosts	888.6	863.3
Staff costs	97.4	96.9
Dividends paid to shareholders	132.2	161.3

For a more detailed discussion on our financial performance, please refer to the Financial Statements section of this Annual Report.

Ensuring network access

M1 continually enhances the accessibility, performance and reliability of our mobile and fixed networks.

To meet the diverse needs of our customers, we offer a wide range of innovative mobile and fixed service plans across various price points, from pay-as-you-use prepaid plans to postpaid plans that come bundled with a subsidised or free smartphone.

Every year, M1 invests significant resources to add capacity, increase coverage and further strengthen the resiliency of our networks. We have also installed a 24/7 network monitoring system to alert our standby engineers of any issue.

	2012 (S$m)	2011 (S$m)
Capital expenditure	122.5	102.5

Extending the benefits of our network

We recognise the need to extend the benefits of mobile and Internet technology to include disadvantaged or underserved communities. Over the years, we have launched several efforts to address these communities' needs.

In September 2011, M1 launched two mobile service plans for members of the Singapore Association for The Deaf (SADeaf). These customised MessageSurf and BlackBerry MessageSurf plans offer more SMS and MMS messages, as well as a higher mobile data bundle compared to our normal mobile plans, in recognition of the different communication requirements of individuals with hearing disabilities.

A new service was also made available in 2012 to meet the needs of older, less technologically savvy users, bundling our fibre broadband service with on-site technical support services to help these customers set up a home network.

Legislation and regulatory compliance

Operating in compliance with applicable laws and codes is one of the key operating principles at M1.

M1 complies with all relevant legislation governing our products and services, including laws designed specifically for the info-communications sector, as well as those that apply to businesses in general. As a responsible company, we also support voluntary codes and industry best practices to protect vulnerable groups of customers.

Our core info-communications business is regulated under the Telecommunications Act which provides the general legal framework for the provision of telecommunication systems and services in Singapore.

Info-communications services are operated under Facilities-Based Operator, Services-Based Operator, and Class licences issued by the Infocomm Development Authority of Singapore (IDA). M1 also has regulatory obligations under the Telecoms Competition Code 2010, which contains provisions relating to the IDA's Quality of Service (QoS) standards, duties to end-customers, and sector-specific competition rules. Media-related services, such as IPTV, are regulated by the Media Development Authority (MDA) under the Broadcasting Act. We also operate in accordance with the Internet Code of Practice, whereby M1 would deny access to MDA's list of websites that contain prohibited content.

To safeguard the interest of our customers, M1 jointly developed "The Voluntary Code for Self-regulation of Mobile Content in Singapore" with the other mobile operators to protect minors from accessing inappropriate content via mobile phones.

We also abide by other voluntary guidelines, such as the World Health Organisation's (WHO) standards on electro-magnetic fields (EMF) produced by cellular equipment and mobile phones, and the Advertising Standards Authority of Singapore's Code of Advertising Practice in our marketing campaigns.

Fines

During this reporting period, there were no legal actions against M1 on anti-competitive, anti-trust, or monopolistic behavioural grounds.

M1, along with two other telecommunications operators, were fined S$10,000 each by the IDA in December 2012 for not meeting its revised outdoor mobile QoS coverage standard.

Customer privacy

M1 adheres to strict internal policies in protecting our customers' privacy. We do not share our customers' data with any third parties other than as permitted or required by law or regulations.

Our employees who require customer data for work purposes are trained to handle such information with care to prevent any unauthorised disclosure, and we support Singapore's Personal Data Protection Act, which came into effect in January 2013.

We have not been the subject of any censure by our regulator in respect of any customer data privacy issue in 2012.

Public health and safety

There has been some public interest in recent years on the possible impact of EMF produced by cellular equipment and mobile phones on human health. To date, the WHO has not found any link between EMF radiation and adverse health impacts.

In Singapore, the IDA exercises strict control over the installation of radio base station equipment. For example, all base station equipment installed has to be approved by IDA to ensure that its requirements are met. The IDA also sets transmitter power limits on our base stations, and conducts random site visits to ensure that radiation levels are below the reference levels set by International Commission on Non-Ionising Radiation Protection (ICNIRP).

In 2012, M1 engaged the Singapore National Environment Agency (NEA) several times to measure radiation levels at some of our base stations, and we are pleased to report that these base stations met all the ICNIRP's exposure guidelines.

We are committed to working with relevant agencies such as the NEA's Centre for Radiation Protection and Nuclear Science and the IDA to address any health concern, and we will continue to monitor new research results and make changes as necessary to minimise any health impact.

Customer satisfaction

We continually invest in our people, processes, and training programmes to further enhance our customer service levels.

Our orientation programme includes a strong emphasis on customer service, and all new employees are attached to our customer call centre and one of our retail shop outlets for a day. This allows our employees to personally experience our customers' feedback and concerns, and better appreciate the efforts required to serve our customers better.

The attachment exercise is also extended to our senior management and this helps them to stay in touch with our customers' changing requirements and expectations.

We obtain customer feedback from various channels, including our 24-hour customer call centre, social media platforms, as well as external consultants engaged to conduct mystery shopping. This feedback is used to review and further improve our service offerings and business processes.

Other measures to enhance customer satisfaction include customer loyalty rewards and initiatives such as our free Roam Buddy service help customers to manage their roaming data usage.

Our relentless focus on customer service has enabled us to top the Customer Satisfaction Index (CSISG)¹ in the mobile telecom sector, for the third consecutive year in 2012.

Responsible marketing

The price and key technical specifications of all the products and services that M1 makes available to customers are clearly labelled on our print and online advertisements.

These include the device price, monthly subscription fee, the maximum and expected access speeds of Internet access services, as well as the end date of value-added-services offered to customers on a trial basis.

Our employees will strive to explain the terms of the transaction, including early termination charges and excess mobile data charges in clear layman's language, to our customers before processing the transaction.

Internal controls and whistleblowing

M1 is committed to a high standard of corporate governance within the Group to protect the interests of all our stakeholders, and we have put in layers of corporate governance processes and internal policies across all levels of the company to manage risk, deter fraud, and ensure accountability and integrity. A description of our governance practices can be found in the Corporate Governance section of this Annual Report.

We encourage all employees to report any suspicious or irregular behaviour, and will ensure that the confidentiality of any whistleblower is protected.

Acts that violate M1's Policy for Disclosure of Reportable Conduct include:

• Unlawful acts;
• Theft, misuse or wilful damage of M1 resources;
• Dishonest, fraudulent or corrupt activities;
• Misuse or abuse of power or authority for any unauthorisedor ulterior purpose;
• Unsafe work practices.

In the event that an allegation is raised, M1 will investigate thoroughly. Significant cases will be brought to the attention of members of senior management and Board of Directors as necessary, and may also be referred to an appropriate authority such as the Singapore Police Force, Commercial Affairs Department, or Corrupt Practices Investigation Bureau.

Any individual who makes a report under this Policy will be protected from reprisal if he/she:

• Makes the report in good faith and without malice;
• Reasonably believes the matters referred to in the report to be substantially true;
• Does not seek any personal or financial gain from making the report;
• Follows the reporting procedure set out in this Policy.

If attempts at reprisal are made against the whistleblower, he/she will be given the opportunity to bring the matter to the attention of the appropriate level of senior management and/or the Board's Audit Committee Chairman as required.

¹ The CSISG, first launched in 2008, is a comprehensive, independent qualitative multi-sector study on customer service developed by the Singapore Workforce Development Agency and the Singapore Management University's Institute of Service Excellence