Dublin, May 18, 2023 (GLOBE NEWSWIRE) -- The "Singapore Telecoms Industry Report - 2023-2030" report has been added to ResearchAndMarkets.com's offering.
Singapore Telecoms Industry Report at a Glance
Singapore has one of the most mature and competitive telecommunications markets in the world. Singapore is a world leader in telecommunications, with a progressive regulatory environment and a highly competitive market. It continues to promote itself as an information technology hub, driven by innovation.
Mobile subscriptions will grow and fixed broadband subscribers during the period 2023-30. Internet user penetration will grow at an annual average of 1.7% in the forecast period and 95% of the population by 2030.
In 2022, the Singaporean telecommunications market represents 1.92% of Singapore's GDP, a proportion in line with other developed countries. The government has completed the rollout of its Next-Generation National Broadband Network (NGNBN). This is a hybrid network based on a combination of fiber-to-the-home (FTTH) and wireless infrastructure and continues to form the basis of the government's broadband strategy and implementation. The project is broadly regarded as a successful government policy, delivering world-leading gigabit services at affordable prices. Singapore is now in the fortunate position of being the world leader in fixed broadband.
In 2019, Singapore Press Holdings and Singapore-based conglomerate Keppel Corporation announced their plan to acquire a majority controlling stake in telecom company M1, from Malaysian headquartered Axiata. In 2021, Keppel proposed an SGD1.6 billion acquisition of Singapore Press Holdings' real estate assets. Keppel Corporation offered to acquire the non-media business of Singapore Press Holdings (SPH), including jointly-owned telco (M1) and data center assets.
Simba (ex-TPG), the fourth new entrant with newly introduced SIM-only plans and large download plans for less than USD7 will drive down unit pricing and bring Singaporeans in line with other neighboring countries.
Capex Investments
The Capex from Singaporean operators is cyclical with mobile rollout leading to investments in line with the operators' top-line growth. Capex investments peaked between 2016 and 2017 while all three operators built their respective 4G mobile network. Capex investments increased again in 2020 and will continue through to 2027, as mobile operators invest in 5G.
Singapore sees 5G as the backbone of a wide range of technological advances including autonomous vehicles, smart cities, and Internet of Things. All three mobile operators launched 5G services in 2020. The Capex to GDP ratio spiked between 2015 and 2016 and started to slide downwards and growing from 2020 onwards.
The publisher projects an increase in Capex spending throughout 2022 alone by installing more 5G base stations across all cities, ramping up Singapore's 5G rollout island-wide and consolidating its 5G network leadership in terms of speeds and availability in the country.
Operator Profiles
The Singaporean three-player mobile market is a remarkably stable market, however with mobile revenue pressure, all operators are broadening their range of services from e-commerce, smart home to digital payments.
Between 2016 and 2022, both both revenue and EBITDA shares remained remarkably stable, with only Starhub losing some share of the telecoms market EBITDA pool in 2022.
Mobile Subscribers and Revenue
Average annual mobile revenue growth was much lower (-7.4%) than mobile service subscriptions growth (2%) during the period 2016-2022, highlighting the structural challenges faced by mobile operators. Declining voice & SMS revenue only partially offset by wireless data monetization is putting pressure on ARPU, compounded by bundling discounts to stem churn.
IoT connections are a major growth driver for mobile operators, a slowdown in mobile subscription growth will put long-term pressure, dialing up competition for the three mobile operators fighting for fewer new customers.
According to our benchmark study of mobile data pricing, Singapore had among the biggest cost reduction per GB over the last 3 years, while India has the lowest rate in the world with just a few cents per GB.
The Singaporean mobile market rapidly transformed from a voice and SMS to a mobile Internet-dominated market. With a continued drive to convert smartphone users to digital shoppers and therefore increase mobile operators' consumer's share of wallet. Mobile operators are increasing market segmentation and delivering innovative offerings targeting households with digital services such as music, video streaming, digital payments, and bundles of other services such as home automation, IPTV, and fixed broadband.
Broadband Subscribers - FTTH Push to Gigabit Speeds
After over 10 years of investments in fiber infrastructure, Singapore boasts the highest FTTH penetration in the world as well as one of the most advanced, consumer broadband products offering speeds up to 10Gbps. Most people use above 1GBps packages which are mostly bundled with mobile services by the three dominant players, Singtel, Starhub, and M1.
Fixed broadband penetration is forecasted to grow modestly as Singapore's investments in full-fiber networks are now reaching maturity with affordable packages and increased broadband household penetration growing towards saturation.
Thematics -Telecoms Infrastructure / 5G / M&A / Infrastructure
Infrastructure funds, pension funds, and government funds are assigning high valuation multiples to telecommunications infrastructure assets such as mobile towers, data centers, submarine cable, and fibre infrastructure.
Investment funds are assigning high valuation multiples to telecommunications infrastructure assets such as mobile towers, data centers, submarine cables, and fiber infrastructure. This report outlines real market examples of how investors view and value these investments with real industry examples and EV/EBITDA comparatives and benchmarks.
Our database analysis highlights the dearth of inbound (domestic) transactions in the Singapore telecommunications services market, with the largest transactions from Keppel with M1 purchase and Starhub bulking up its fixed broadband and IPTV business units and consolidating their position by acquiring smaller operators. Most other transactions are expected in the data center, IoT, and cloud computing sector with Singtel investing in e-Commerce and enterprise services.
The arrival of 4G moved the Internet off our desktops into our palms and pockets, 5G could transform the network from something we carry around to something taking us around either virtually (augmented reality or virtual reality) or in reality (autonomous vehicles), the 5G outcome and benefits beyond fast connectivity remain largely unknown in terms of business models, investments required and timeline.
Why Should You Buy the Singapore Telecoms Industry Report
- Benefit from the latest market opportunities
- Understand the threats to your operations and investments and protect your company against future risks
- Gain insights on emerging trends supporting, enhancing, or disrupting your activities in the market
- Get a full view of the competitive landscape to assess your market position.
- Forecasts as a key input for successful budgeting and strategic business planning in the telecoms market
- Target business opportunities and risks in the telecoms sector through our reviews of the latest industry trends, regulatory changes, and major deals, projects, and investments
- Assess the activities, strategy and market position of your competitors, partners and clientsvia our Operators Profiles
Key Topics Covered:
1 Key Statistics
1.1 Singapore's Population
1.2 Singapore's Economy
2 Overall Telecommunications Market, 2016-2030
2.1 Market Overview
2.2 Singapore's Race to Lead in 5G and Beyond
2.3 Historical Telecommunications Market Revenue, 2016-2022
2.4 Overall Telecommunications Market Forecast, 2022-2030
2.5 Telecommunications Market Capital Expenditure, 2016-2030
3 Telecommunications Operators Profile
3.1 Singtel Profile
3.2 Starhub Profile
3.3 M1 Profile
3.4 SIMBA (TPG Singapore)
4 Singapore Mobile market
4.1 Singapore Mobile Subscribers Historical and Forecast, 2016-2030
4.2 Singapore Mobile Revenue Historical and Forecast, 2016-2030
4.3 Spectrum Holdings
4.4 Mobile Download Data and Pricing Trends
4.5 Mobile Speed Tests
4.6 Mobile Virtual Network Operators (MVNO)
4.7 Internet of Things (IoT)
5 Broadband Market
5.1 Fixed Broadband Subscribers Historical, 2016-2022
5.2 Fixed Broadband Subscribers Forecast, 2022-2030
6 Fixed Telecommunications Infrastructure Investments
6.1 Fixed Digital Infrastructure
6.1.1 Overview of the National Broadband Network
6.2 Submarine Cables
7 Singapore Telecom Towers Infrastructure Landscape
7.1 Singapore Telecom Towers Market Analysis, 2022
7.1.1 Singapore Telecom Towers Market Overview
7.1.2 Tower Density Benchmark
8 Thematics / Opportunities
8.1 Consolidation Opportunities
8.2 Diversification Opportunities
8.3 New Telecoms Operating Model
8.3.1 The Attraction of Infrastructure Multiples
8.4 5G Developments
8.4.1 5G Overview
8.4.2 5G - Relative Capex Investments and Frequency Range
8.4.3 5G OpenRAN
8.4.4 Beyond 5G and Towards 6G
9 Telco Transactions Database
Companies Mentioned
- Circles.Life
- Keppel
- M1
- MyRepublic
- Netlink Trust
- Simba
- Singtel
- Starhub
- TPG
For more information about this report visit https://www.researchandmarkets.com/r/jlmge3
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