ENABLING A DIGITAL FUTURE - INNOVATING - M1
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ENABLING
A DIGITAL
FUTURE
INNOVATING PARTNERING DIGITALISING
Annual Report 2017CONTENTS
OUR BUSINESS
M1 is Singapore’s most vibrant and
BUSINESS REVIEW
At a Glance 08
02
dynamic communications company,
INNOVATING
Performance Highlights 10
providing mobile and fixed services
Business Model 12
to over 2 million customers. Since
the launch of commercial services in Letter to Shareholders 14
1997, M1 has achieved many firsts, Operating Review 18
including the first operator to offer Financial Review 27
nationwide 4G service, as well as
ultra high-speed fixed broadband, GOVERNANCE
fixed voice and other services on
the Next Generation Nationwide
Broadband Network (NGNBN). With Board of Directors 32
a continual focus on network quality, Senior Management 36
customer service, value and Particulars of Directors 42
04
innovation, M1 links anyone and Particulars of Senior Management 49
anything; anytime, anywhere. Corporate Governance Summary 50
Corporate Governance Report 57
For more information, visit Investor Relations 80
www.m1.com.sg
SUSTAINABILITY REPORT PARTNERING
OUR VISION Board Statement 84
To be the leader in communications, Introduction 85
distinguished by innovativeness and Our Business 94
dedication to our customers, people Our People 99
and shareholders. Our Community 103
Our Environment 106
GRI Content Index 109
OUR MISSION FINANCIALS
Linking anyone and anything;
anytime, anywhere.
Financial Statements 113
ADDITIONAL INFORMATION
Major Properties 177
06
DIGITALISING
Statistics of Shareholdings 178
Corporate Information 180INNOVATING
The telecommunications
sector powers digital
transformation across
NB-IoT
Largest Wireless@SG Network
More than 10,000 access points 4.5G
Southeast Asia’s HetNet
industries, connecting cities, first commercial nationwide
More than 300 small
NB-IoT (Narrowband Internet of
people and machines; Things) network offers cell/WiFi network deployed
anytime, anywhere. As a hyper-connectivity to millions at high-traffic hotspots
of devices, sensors, and services,
leading communications to catalyse smart solutions,
service provider, we
continue to innovate
innovation, and support
Singapore’s transformation Next-Generation
to bring customers new
into a Smart Nation
Unified Operations
technologies, fresh Monitoring Centre
Real-time information for monitoring
solutions and quality of network services, IT infrastructure,
services to cater to their IoT and digital solutions in private
evolving needs in the and public clouds
digital era
UNIQUE From 300Mbps to 10Gbps service plans to satisfy
light users, hardcore gamers, SOHO dwellers,
The world’s first symmetrical 10Gbps connectivity
with ultra fast upload and download
PROPOSITIONS
enterprises and more speeds islandwide
M1 DATA PASSPORT M1 MOBILE GUARD – ASIA’S FIRST NETWORK-BASED
Unique roaming service MOBILE MALWARE DETECTION SOLUTION
with affordable rates for
T
customers to use their local
data bundle overseas he smartphone has become
400%
an essential part of users’ lives,
be it to make financial transactions
or as a store for personal and
professional information. To help increase in
S$10 56
customers protect themselves from smartphone
cyber threats, M1 Mobile Guard is a infections
network-based anti-malware solution
in 2016*
that offers always-on protection in a
a month popular convenient and affordable way
onwards destinations * Nokia Malware Report
worldwide (March 2017)
02 ENABLING A DIGITAL FUTURE M1 LIMITED Annual Report 2017 03PARTNERING
Our partnerships with leading technology and digital
solution companies enable us to jointly develop and
acquire new approaches and capabilities to capture
opportunities in the digital economy
NB-IoT ENERGY MANAGEMENT
AND UTILITIES METERING
SOLUTIONS WITH ANACLE
M1
and Anacle jointly offer NB-IoT Energy
Management and Utilities Metering
solutions. Power and water
consumption can be intelligently
collected and efficiently processed through our NB-IoT
network and presented sensibly to end users through
smart use of data analytics. This allows our commercial,
industrial and even residential customers to effectively
monitor their energy usage and at the same time,
facilitates sustainable planning and reduction of carbon
footprint by planning agencies
ADVANCED DATA ANALYTICS
PROFILE AND
TRANSPORTATION Vicinity Crowd
BEHAVIOUR DATA ANALYTICS 0 2000 4000 6000
WITH TERALYTICS
VIDEO ANALYTICS TO IMPROVE
WITH TRAKOMATIC COMMUTERS’
FOR RETAIL INDUSTRY LIVES
M1, in partnership with Trakomatic, enables retail
businesses and shopping malls to discover ways With a growing population
consumers interact in a physical retail environment and the pursuit of a car-lite
using video and sensor technology. These environment in Singapore,
innovative video analytics can be applied to video there is a need to improve the
feeds from M1’s digital signage and retailers' shop efficiency and responsiveness
front CCTV. Consumer footfall, browsing and of public transportation. M1
purchasing patterns, as well as other consumer and Teralytics teamed up to
profiles can be analysed and provide useful and use telco-enabled data analytics
actionable insight to Retail and F&B Outlets and to empower day-to-day
Shopping Mall operators. This enhances their operational effectiveness
marketing and advertising capabilities, shopfront and forward planning of public WiFi Mobile Data
mercantile displays and attractiveness based on transport networks
consumer preferences and trends
04 ENABLING A DIGITAL FUTURE M1 LIMITED Annual Report 2017 05DIGITALISING
MY M1 APP
From monitoring data usage,
subscription of value-added services
to bill payments, customers can easily
manage their services with M1 from
their mobile devices
From driving online and app services, advancing in-house
data analytics capability, to ongoing paperless and network
EXPANDED DIGITAL CHANNELS
virtualisation initiatives, we are accelerating our journey
into a digital society
ASK
MINDY
John 98888888
EMBRACING MY
ONLINE
DIGITALISATION M1 APP
SIGN-UP AND
RECONTRACT
Account 888888888 View Bill
UPGRADE
Date of bill: 11 Jan 2018
M1
20 kWh October 7, 2017
Payable Amount $54.10
Your Payment $54.10
is a forward-looking
company at the forefront Pay Bill
of digitalisation. We
Upon bill payment, our records will be
promote a culture of updated in a few minutes.
continuous innovation COMPANY-WIDE
with regular reviews NETWORK ELECTRONIC
to improve operational VIRTUALISATION M1'S DOCUMENT
efficiencies, business DIGITALISING MANAGEMENT Past months' bills Sign Up For eBill
systems and customer JOURNEY
experience. Ongoing December $56.85
digitalisation efforts
will further enhance November $56.60
our customer touch-
points, reduce costs and October $65.95
shorten time-to-market
of new products and
services, providing a Account Usage Roaming Bill More
seamless digital
experience for M1 M1
our customers REMIT MOBILE
GUARD
eBILLS AND
PAPERLESS M1 REMIT
TRANSACTIONS
With our mobile remittance service,
BENEFITS customers can securely transfer
money to major banks and cash pick-up
Increased Activities Environment Seamless Customer Faster outlets in 9 countries on their mobile
on Digital Channels Cost Savings Footprint Reduction Experience Time-to-Market
phones anytime, anywhere
• 56% of total transactions Digitalisation of shops and Through driving adoption From simple online With more streamlined
were made online in 2017 customer service channels of eBills and paperless ordering of the latest operations and increased
• 78% of smartphone led to higher efficiency and transactions at all shops, handsets to a host digital capabilities, there
customers use My M1 App headcount reduction we have greatly reduced of seamless and easy is greater agility in
to manage their services our paper usage and
environmental impact
self-help digital services,
customers enjoy greater
launching new products
and services No More Queues
• 2.8 times increase in
convenience and Remit funds on mobile devices
My M1 App bill payment
reduced wait times
amount in 2017
06 ENABLING A DIGITAL FUTURE M1 LIMITED Annual Report 2017 07AT A GLANCE
WHAT WE DO
M1 offers a wide range of mobile and fixed communications services
to consumers and corporate customers
CONSUMER CORPORATE
Mobile Fixed Value-Added Services Total Fibre Broadband, Corporate Mobile ICT, Digital and Data IoT Solutions
• Broad range of postpaid • Fibre broadband • Host of mobile and fixed Communications Managed Services • Enterprise mobile Analytics Solutions • IoT connectivity
and prepaid mobile connectivity services with value-added services to • Mobile, fixed and a and Cloud Services plans with attractive • Integrated service solutions with
services enabling up to 10Gbps speeds, voice, cater to customers’ suite of converged • Up to 10Gbps data and roaming provider with Southeast Asia’s first
customers to call, message, WiFi, home network and evolving needs, including communication symmetrical PON packages end-to-end nationwide NB-IoT
access internet and apps, security solutions mobile remittance, services to support connectivity services service delivery network
stream music and videos, cybersecurity protection, the needs of our • Unified • Advanced analytics, • Partnerships in
whether at home or and My M1 App for corporate customers, Communications data management, offering end-to-end
travelling overseas account-related services who range from • Wireless@SG data visualisation, IoT solutions across
small businesses to • SIP Trunk and data discovery sectors such as
large multinational • Virtual server solutions Retail, Fintech,
companies and and storage • Digital signage Transportation
government agencies • Backup-as-a-Service and Smart Nation
2017 HIGHLIGHTS
MOBILE DATA AS A % CASH DISTRIBUTION CAPITAL EXPENDITURE NET DEBT/EBITDA
OF SERVICE REVENUE PER SHARE (DECLARED)
MOBILE 55.7% 11.4 cents S$151m 1.3x
CUSTOMERS 54.0% 55.7% 12.9 cents
S$151m
S$141m
(End 2017) 11.4 cents
1.2x
1.3x
2.03m
+19,000
2016 2017 2016 2017 2016 2017 2016 2017
OPERATING SERVICE MOBILE CUSTOMER/ FIXED RESIDENTIAL AND
REVENUE MIX (%) REVENUE MIX (%) REVENUE MIX (%) CORPORATE CUSTOMER/
FIBRE REVENUE MIX (%)
CUSTOMERS 22.7
6.7
15.7
63.4
51.9
(End 2017) 90.6 89.8
189,000
12.1 60.0
48.1
5.2 36.6
+29,000
77.6
9.4 10.2
Mobile Telecommunications Mobile Telecommunications Customer Revenue Customer Revenue
International Call Services International Call Services Postpaid Postpaid Residential Residential
Fixed Services Fixed Services Prepaid Prepaid Corporate Corporate
Handset Sales
08 ENABLING A DIGITAL FUTURE M1 LIMITED Annual Report 2017 09PERFORMANCE
HIGHLIGHTS
OPERATING AND EBITDA NET PROFIT AFTER TAX OPERATING HIGHLIGHTS
SERVICE REVENUES
2017 2016 Change (%)
Mobile Telecommunications
Number of mobile customers ('000)
1,157 41.6% 21.2% 21.7%
40.4%
1,076 1,071 38.1% 38.7% Postpaid 1,292 1,247 3.6
1,061 36.5% 19.5%
1,008 18.6% Prepaid 747 772 -3.3
336 342
16.0% Total 2,038 2,019 1.0
820 831 822 828 312 312 302 176 179
806 Market share1 (%)
160
150 Postpaid 25.2 24.8 –
133
Prepaid 22.0 22.5 –
Overall 24.0 23.8 –
Singapore mobile penetration rate1 (%) 149.6 149.8 –
Average revenue per user (ARPU, S$ per month)
Postpaid (excludes Data plan) 55.8 58.0 -3.8
Postpaid (excludes Data plan and adjusted)2 48.7 50.3 -3.2
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Data plan 12.7 14.8 -14.2
Prepaid 10.7 12.2 -12.3
Non-voice services as a % of service revenue 55.7 54.0 –
Average monthly churn rate (%) 1.3 1.0 –
Operating revenue (S$m) EBITDA margin on service revenue Net profit after tax margin on service Acquisition cost per postpaid customer (S$) 404 369 9.5
Service revenue (S$m) EBITDA (S$m) revenue
Net profit after tax (S$m)
Fixed Services
Number of fibre customers ('000) 189 160 18.1
ARPU (Fibre, S$ per month) 43.5 45.1 -3.5
1 Based on IMDA statistics as at November 2017
2 After adjustment for ARPU allocated to handset sales
CASH FLOW AND EARNINGS AND CASH DISTRIBUTION
CAPITAL EXPENDITURE FREE CASH FLOW PER SHARE PER SHARE (DECLARED)
FINANCIAL HIGHLIGHTS
2017 2016 Change (%)
335 19.1 18.8 19.0 Operating revenue (S$m) 1,071.1 1,060.9 1.0
302 17.4 Mobile telecommunications 642.5 640.0 0.4
16.1
273 International call services 55.9 61.3 -8.9
259
239 13.9 14.3 7.1 Fixed services 129.7 104.2 24.5
11.5 Handset sales 243.0 255.4 -4.9
11.3
10.0 11.9 EBITDA (S$m) 302.4 312.1 -3.1
140 141
151 8.3 Net profit after tax (S$m) 132.5 149.7 -11.5
125 133 7.1 5.9
Free cash flow (S$m) 106.7 129.6 -17.6
6.2
Net assets (S$m) 428.9 403.4 6.3
Net debt (S$m) 403.5 390.0 3.5
6.8 7.0 7.0 7.0
5.2 Financial ratios
Net debt/equity (x) 0.9 1.0 –
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Net debt/EBITDA (x) 1.3 1.2 –
EBITDA/interest (x) 30.6 46.2 –
ROE (%) 31.8 36.7 –
Net cash flow from operating Earnings per share (basic) (cents) Interim dividend (cents) ROCE (%) 16.9 19.9 –
activities (S$m) Free cash flow per share (cents) Final dividend (cents)
Capital expenditure (S$m) Special dividend (cents)
Note: Figures may not add up due to rounding
10 ENABLING A DIGITAL FUTURE M1 LIMITED Annual Report 2017 11BUSINESS MODEL
HOW WE CREATE VALUE
We Capitalise on and Focus on to Create Value for
Our Key Resources... Our Strengths... Our Stakeholders
Capital Efficiency Investments in Spectrum, Customers
and Investments Networks and Infrastructure Superior customer experience
Passionate and Shareholders
Talent Committed Staff with Sustainable financial performance,
a Drive to Innovate dividends and long-term value
Relationships High Standards of Employees
and Partnerships Corporate Governance Enjoyable, challenging, rewarding work
Community
Innovation Customer-Centric Focus Enriching and empowering
communities
Uniquely Invaluable
Network Data
A Strong and
Renowned Brand
Partnerships Network
Conduct Business
Responsibly, Ethically
and Sustainably
12 ENABLING A DIGITAL FUTURE M1 LIMITED Annual Report 2017 13LETTER TO In 2017, we celebrated our 20th
anniversary. As we reflect on our journey
personalised offerings, improve
network performance and enhance
PERFORMANCE HIGHLIGHTS
M1’s total customer base grew to
App were also made available to enable
our prepaid customers to conveniently
SHAREHOLDERS and plan our future, we are mindful
that our business environment today
the customer experience. In B2B
terms, M1 is able to use our unique
2.23 million as at end 2017. check balances, top up and purchase
data packs that meet their needs. A YEAR OF
is more complex than it has ever been. anonymised data to provide big data Postpaid customer base increased PROGRESS
solutions to corporate customers. by 45,000 year-on-year to 1.29 million. Fibre customer base increased by
Almost every industry is undergoing To cater to our customers’ growing 29,000 to 189,000, driven by our
major changes, catalysed by the latest We will continue to invest in our mobile data needs, we launched the competitive service plans, tactical
wave of disruptive technologies. information and communications mySIM3 plans to offer more value, promotions and bundled solutions
From virtual or augmented reality, to technology (ICT) capabilities and including Singapore’s first unlimited such as mesh WiFi systems.
With great ambition the Internet of Things (IoT), advances
in data analytics, cloud solutions and
strengthen our portfolio of digital
services to transform to a Smart
data 4G mobile plan, as well as mySIMe
We continued to make inroads into
plans with bundled handsets.
and optimism, we more, digital disruption is building an Communications Provider to capture the corporate and government
look forward to our exciting new future. We see the
emergence of new industries and
new opportunities that the digital
economy brings. Our ongoing
We also expanded our unique M1 segment with major contract wins.
This segment continues to grow
2.8%
Data Passport service for customers
next 20 years and ground-breaking business models digitalisation to improve operational with the launch of two new regional and currently makes up around 50%
our role in enabling across all industries. The telecom efficiencies will generate cost savings Data Passports – one for nine ASEAN of our fixed services revenue. We have
also strengthened our product and
sector is not spared. Today, we have while providing our customers with a higher service
a digital future for all to reckon with new competitors from seamless digital experience.
destinations and the other for 23 Asia
destinations. With the M1 Data service offerings, and capabilities in revenue year-on-year,
outside our industry. As we evolve, we Passport made available in 56 popular areas such as ICT solutions. In October, closing the year
too are adopting disruptive technologies With great ambition and optimism, we we launched the world’s first symmetrical
destinations worldwide, the number at S$828.1m
and building new capabilities quickly. look forward to our next 20 years and of M1 customers using our data 10Gbps PON (passive optical network)
our role in enabling a digital future for all. roaming services has increased more connectivity service, as well as our
At M1, it is deeply embedded in our than 50% in 2017, with roaming traffic next-generation unified operations
culture to challenge and push FINANCIAL HIGHLIGHTS increasing more than 150%. monitoring centre for real-time
boundaries, be ready to quickly adopt monitoring of network services and
In 2017, service revenue posted
new practices, and to collaborate For corporate customers, we made IT infrastructure in both private and
consecutive quarter-on-quarter growth
cohesively and with agility in executing available M1 Enterprise Mobile public clouds.
to close the year at S$828.1 million,
our strategic plans. These virtues have plans in April, offering unlimited local
2.8% higher year-on-year. Fixed services
been integral to our success in the past messaging and voice calls, as well as OUTLOOK
revenue grew by a strong 24.5% to
20 years, and they will continue to serve up to 12GB data bundles usable
S$129.7 million, and this accounted In the near term, market conditions
1.3
us well in this rapidly-changing market. across 56 overseas destinations at
for 15.7% of service revenue compared will remain challenging.
to 12.9% a year ago. This growth was attractive rates.
Since M1’s launch in 1997, we have
driven by a larger customer base and The anticipated entry of new mobile times net
built a strong reputation for our During the year, we introduced two
contribution from the corporate service providers in 2018 is likely to
innovation, excellent service and new digital services to enhance debt-to-EBITDA
segment. International call services ramp up competitive intensity. As a
network quality. In our short history, customers’ digital lifestyle. In April, as at end 2017
revenue decreased 8.9% to highly customer-centric company
we have constantly challenged the we launched a new mobile remittance
S$55.9 million, on continued mobile backed by quality assets and strong
status quo and stayed ahead of the service – M1 Remit. Now, our mobile
data substitution. Operating revenue capabilities, M1 is poised to compete.
curve in anticipating industry trends – customers can access real-time
increased 1.0% to S$1,071.1 million. We will continue to improve our
first to offer nationwide 4G service, exchange rates and remit funds services, deepen our segmented
as well as ultra high-speed fixed anytime, anywhere, through a mobile
EBITDA decreased by 3.1% to offerings and deliver superior
broadband, fixed voice and other app or a browser on their smart device.
S$302.4 million mainly due to higher customer experience to attract and
services on the Next Generation In September, we launched Asia’s first
handset loss. Net profit after tax for retain customers.
Nationwide Broadband Network network-based mobile malware
the year decreased by 11.5% to
(NGNBN). Most recently, in August detection solution – M1 Mobile Guard
S$132.5 million as a result of increased We are well-placed to capture new
2017, we launched Southeast Asia’s to offer always-on protection.
2.23m
depreciation and amortisation opportunities in the IoT and Smart
first commercial nationwide NB-IoT
expenses and higher interest expense. Nation space. As a leading IoT solutions
(Narrowband Internet of Things) Our prepaid customer base decreased provider, we continue to partner
network, the second such network by 25,000 to 747,000, following the total customer
Mobile data usage continued to grow, world-class solution providers to
worldwide. We are proud of our shutdown of the 2G network in the base as at end 2017
with 2017 revenue from mobile data expand the suite of IoT products and
leadership in innovation, and will second quarter of 2017. During the
increasing 1.7 percentage points services for various sectors. However,
continue to pioneer more firsts in year, we continued to enhance our
year-on-year to 55.7% of service as it is a new technology and the
the telecom industry. prepaid propositions to cater to
revenue. Average data usage per ecosystem is evolving, mass adoption
postpaid smartphone customer customers’ changing preferences for will take time.
In this digital age, one of our key assets digital and over-the-top (OTT) services.
increased to 4.3GB per month in the
is network data. With advances in data New prepaid roaming plans, with
fourth quarter of 2017, compared to Our Corporate and ICT business will
analytics, we can obtain both macro choice of roaming to 12 or 17 popular
3.6GB per month a year ago. continue to grow. We are building and
and micro insights into customer destinations, including Australia, Hong acquiring competencies, and forming
behaviour, usage patterns, preferences Kong, Japan, New Zealand and the
The Group’s balance sheet remains key partnerships with technology and
and interests as they happen. These United States, were launched in June.
healthy, with net debt-to-EBITDA at solution providers, to strengthen and
insights allow us to create increasingly The M1 Prepaid Portal and M1 Prepaid
1.3 times as at end 2017. expand our corporate solutions, such
14 ENABLING A DIGITAL FUTURE M1 LIMITED Annual Report 2017 15LETTER TO as in areas of managed infrastructure
and security solutions, Smart Nation
and broaden their skill sets through
in-house training programmes, as well
years, we have sponsored schools and
community netball initiatives from
will not be seeking re-appointment.
As Chairman of the Audit Committee
SHAREHOLDERS initiatives, as well as cloud and
data analytics.
as external courses and longer-term
learning such as post-graduate study.
primary schools to national level.
Combining our support for netball
and member of the Remuneration and
Risk Committees, he has contributed CORPORATE
Reflecting this aim, the number of with our support for underprivileged significantly to the M1 Board, particularly CITIZENSHIP
From strengthening our core training courses attended by M1 children and youths-at-risk, we on audit, risk management and
connectivity infrastructure, building employees rose by 30% in 2017 organised a charity exhibition match governance matters.
digital and ICT capabilities, to compared to the previous year. between M1 management and
digitalising our operations, we are Singapore Members of Parliament in We welcome Mr Tan Wah Yeow to
on track to transform into a Smart We celebrate workplace equality and 2017, and in appreciation, pledged the Board as our new Independent
As a leading IoT Communications Provider and build
new revenue streams that will deliver
diversity – rewarding people on their
capabilities and experience – regardless
S$50,000 to the beneficiaries of our
adopted charities.
Non-Executive Director and look
forward to tapping his varied skills
solution provider, growth and long-term value for of gender, age or ethnicity. We have a and deep experience.
we are well-placed our stakeholders. strong culture of collaboration across
functions, with robust processes
Further fundraising activities during
the year raised more than S$500,000 In closing, we wish to thank our
to capture new CORPORATE CITIZENSHIP and policies in place to support for these charities, while staff customers and shareholders for OUR BUSINESS
opportunities in organisational growth. This enhances volunteers dedicated their time to making the journey with us, as well as Supplier code of
M1 is committed to responsible and
our ability to innovate and adapt to organising regular outings for the all staff of M1 who put forward their conduct which sets
the IoT and Smart sustainable business practices, as well
change. With active staff engagement, underprivileged young beneficiaries. best at work every day, undeterred by ethical standards
as creating shared value for both our
Nation Space business and society at large. Corporate
we align our people to our corporate the relentless pace of competition and implemented across
objectives and motivate them to work DISTRIBUTION TO industry shifts. With M1’s collective M1’s entire supply chain
social responsibility is embedded in our
together to achieve our goals. strength, we will forge ahead to
corporate governance framework at M1. SHAREHOLDERS
strengthen our market position in the
Through long-term partnerships and M1 remains committed to maintaining
We continually review our business digital world, excited about our
regular engagements with stakeholders a sustainable dividend policy that will
operations to identify ways to reduce opportunities and confident in meeting
and beneficiaries, we strive to achieve enhance long-term shareholder value.
our impact on the environment while a vibrant future.
sustained positive outcomes in For 2017, the Board of Directors has
still increasing productivity and
empowering individuals and proposed a final dividend of 6.2 cents,
delivering consistent quality service
enriching communities. bringing total dividends declared to
to our customers. For example, an
increase in the use of recycled NEWater 11.4 cents, representing a payout of
We constantly update our products 80% of our full-year net profit after tax.
for equipment cooling purposes at
and services to offer meaningful value
various M1 sites has reduced our
to customers and society at large. In
our multi-year partnership with
consumption of potable water, from
In determining the dividend payout, the OUR PEOPLE
Board of Directors took into
100% in 2014 to 77% in 2017. We will M1 employees
Info-communications Media consideration the Company’s cash flow,
Development Authority (IMDA) as the
continue our efforts to conserve attended 30% more
financial leverage, investment
resources in our networks, facilities training courses
appointed vendor for its NEU PC Plus requirements and the resources
and general operations. in 2017
Programme, Home Access Programme available to pursue new business
and Digital TV Assistance Scheme, M1 opportunities which may arise in the
Within the community, we continue to
has helped to enable thousands of near or medium term, as well as the
focus on our support of the arts, sports
students and underprivileged outlook on the competitive landscape
events and adopted charities. In 2017,
households to access and enjoy the and economy.
we contributed more than S$1.9 million
benefits of communications technology.
to the community, through direct
sponsorships, donations and A NOTE OF THANKS
In all our business operations, we act
funds raised. Firstly, on behalf of the Board, we
responsibly and ethically, complying
with laws and regulations, and supporting would like to thank former Chairman
Since launching commercial operations Mr Choo Chiau Beng for his strong
voluntary and best practice guidelines.
in 1997, M1 has supported the arts as leadership, dedication and
Aligning with our own business values
and principles, our Supplier Code of
we believe a thriving arts scene is invaluable contribution to M1 during OUR
Conduct sets out the ethical standards
important in enriching quality of life
and strengthening social bonds in our
his three years on the Board. Mr Choo, COMMUNITY
we expect our suppliers to meet or who stepped down from the Board on More than S$1.9 million
multi-cultural nation. In 2017, we were 1 January 2018, strategically guided
exceed regarding issues such as
accorded the National Arts Council contributed to
human rights, health and safety, the Company through a fast-evolving
Patron of the Arts Award for the 18th community programmes
and environmental protection. telecommunications market with his
consecutive year in recognition of our dedicated service, business acumen DANNY TEOH LEONG KAY
sustained contribution to the arts. and drive. Chairman
Our people are key to the success
of our business, and we offer every
The importance we place on the values
opportunity for them to realise their The Board would also like to thank
that are instilled by sports has driven
potential at M1, progressing their Mr Alan Ow for his dedicated service
our ongoing support for netball in
careers in a safe, welcoming and to the M1 Board since February 2009.
Singapore. Our association with the KAREN KOOI LEE WAH
inclusive environment. Employees are Mr Ow retires from office at the Annual
sport began in 2009 and, over the Chief Executive Officer
encouraged to further their knowledge General Meeting on 11 April 2018 and
16 ENABLING A DIGITAL FUTURE M1 LIMITED Annual Report 2017 17OPERATING Since the launch of commercial services
in 1997, M1 has achieved many firsts, OUR
REVIEW including the first operator to offer
nationwide 4G service, as well as ultra
MILESTONES
high-speed fixed broadband, fixed SINCE
voice and other services on the Next ESTABLISHMENT
Generation Nationwide Broadband
Network (NGNBN). With a continual
focus on network quality, customer
service, value and innovation, M1’s • Commercial launch of mobile
services in April 1997
M1 is Singapore’s mission is to link anyone and anything;
anytime, anywhere.
most vibrant • Achieved 10% mobile market
share within a month of launch,
and dynamic The M1 Group holds Facilities-Based
Operator and Services-Based and profitability in the first full
communications Operator licences for the provision year of operations in 1998
company, providing of telecommunication systems and
• Listed on the Singapore
services, a Telecommunication Dealer’s
mobile and fixed Class Licence, for the import and sale
Exchange in December 2002
services to more of telecommunication equipment, and
• First operator in Singapore
a Remittance Licence to provide
than two million outward remittance services.
to launch:
customers. 2017 –– 3G mobile services
M1 operates nationwide 4.5G/LTE
marked the 20th year (Long Term Evolution) Advanced and
commercially in
February 2005
of M1’s launch in 3G/High Speed Packet Access (HSPA)
–– Nationwide mobile
networks, capable of download speeds
Singapore of up to 300Mbps. We offer customers a
broadband services
in December 2006
wide range of data, voice and value-
added mobile services, with or without –– Fibre broadband services on
a device. Both mobile and fixed-line the NGNBN commercially
customers can access our International in September 2010
Direct Dial (IDD) services through the –– Mobile broadband service
002, 021 and 033 prefixes. M1 also on our 4G network in
trades wholesale voice minutes with June 2011
other international and local service –– Nationwide 4G service
providers, and provides dark fibre in September 2012
services to carriers and data centres. –– Singapore’s fastest
corporate broadband
In the fixed space, M1 has a range of service on the NGNBN
residential fibre broadband services in May 2014
that offer speeds of up to 10Gbps, –– Nationwide LTE-Advanced
including fixed voice and other value- service in December 2014
added services.
–– Commercial nationwide
NB-IoT (Narrowband
For the corporate segment, M1’s
Internet of Things) network
extensive suite of mobile and fixed
in August 2017
services includes symmetrical
connectivity solutions of up to 10Gbps, –– Symmetrical 10Gbps PON
managed services, cloud solutions, (passive optical network)
cybersecurity solutions, Internet of corporate connectivity
Things (IoT) and data centre services. service in October 2017
Our dedicated and highly-committed
team of corporate account managers,
along with our technical crew, provide
customers with reliable support,
round-the-clock.
2.03m First NB-loT 189,000 +24.5%
total mobile customer base commercial nationwide network total fibre customer base year-on-year
as at end 2017 in Singapore as at end 2017 fixed services revenue
18 ENABLING A DIGITAL FUTURE M1 LIMITED Annual Report 2017 19OPERATING For 2017, M1’s operating revenue
increased 1.0% year-on-year to
MOBILE
TELECOMMUNICATIONS
enabling mySIM3 and mySIMe
customers to share their plan bundles
network and services in April. In terms
of usage trend, we continued to see
local data, 5,000 local SMS and 3,000
local voice minutes. Besides local
REVIEW S$1,071.1 million. Service revenue
continued its quarterly growth trend POSTPAID MOBILE
with up to two other lines. the substitution of traditional voice
services including IDD by the usage
usage, tourists can enjoy 5GB roaming
data in Hong Kong, Indonesia, Macau,
to close the year at S$828.1 million, Our postpaid mobile segment Stepping up our payment and cyber of OTT (over-the-top) services via Malaysia and Taiwan, and up to 50
2.8% higher year-on-year. Fixed continues to be the key contributor to security service offerings continues to cellular or WiFi networks, as well as voice minutes of international calls.
services revenue increased 24.5% our revenue, making up 63.4% of our be a priority. In March, M1 customers increasing preference for data-
year-on-year to S$129.7 million, total mobile customer base as at end gained the convenience of paying for centric services. As a user experience enhancement,
and accounted for 15.7% of service 2017 and 90.6% of our 2017 mobile purchases, from the App Store and for we launched M1 Prepaid portal in
revenue compared to 12.9% a year telecommunications revenue. In 2017, Apple Music and iTunes, directly from During the year, we enhanced our March 2017, and the M1 Prepaid App
M1 launched the ago. Mobile data revenue increased
1.7 percentage points year-on-year
we added 45,000 postpaid customers their postpaid mobile service accounts.
To offer consumers always-on cyber
prepaid propositions to cater to
customers’ changing preferences. We
in November. Now, our prepaid
customers can conveniently check
to bring our postpaid base to 1,292,000.
world’s first to 55.7% of service revenue. protection, in September we launched also strengthened our services and balances, top up and purchase data
symmetrical 10Gbps Net profit after tax decreased 11.5%
Driven by faster networks and devices, M1 Mobile Guard, Asia’s first network-
based mobile malware detection
tariffs in addition to the distribution
of cards and top-ups on digital and
packs on the go.
mobile data usage grew in 2017.
PON connectivity year-on-year to S$132.5 million, mainly Average data usage per smartphone solution. Subsequently, in December, traditional channels. FIXED SERVICES
service, as well as due to higher handset loss, as well as customer increased to 4.3GB per we unveiled our new and improved M1
In 2015, we enabled our prepaid
In 2017, we added 29,000 customers
higher depreciation and amortisation, month in the fourth quarter of 2017, Cyber Guardian self-help portal.
next-generation and interest expenses. Net profit after up from 3.6GB per month a year ago. Enhanced features empower parents to customers to use their data bundles
to bring our fibre customer base to
189,000. This increase was driven by
unified operations tax margin on service revenue closed monitor online time and content for in Malaysia and Indonesia, and
our competitive service plans, tactical
2.6 percentage points lower at 16.0%. Through the year, we continued to their children across all their devices. three more destinations were
monitoring centre for Free cash flow decreased 17.9% to enhance and expand our products added in 2016. In June 2017, we
promotions and bundled solutions such
as mesh WiFi systems.
real-time monitoring S$106.4 million as a result of working and services. For corporate customers, we released enhanced the prepaid roaming plans
capital changes and higher capital M1 Enterprise Mobile plans in April. The with the unique feature of bundled
of network services expenditure. Net debt-to-EBITDA as at In February 2017, to provide customers service offers unlimited local messaging voice minutes for making short
The majority of our fibre base are
residential customers. They can choose
and IT infrastructure end 2017 remained healthy at 1.3 times. more flexibility and value in using their and voice calls, as well as data bundles important calls when overseas.
from a wide range of M1’s home fibre
local data bundles in overseas of up to 12GB, usable across 56 popular In addition, we launched two new
in both private and As at end 2017, M1 had a total of destinations, we launched two new business destinations at plans offering the options to roam
broadband plans and value-added
public clouds 2,227,000 customers, comprising regional Data Passports – one for nine attractive rates. to 12 or 17 popular destinations,
services, from the lowest priced plan
at S$29 a month for 300Mbps to the
1,292,000 postpaid, 747,000 prepaid ASEAN destinations and the other for including Australia, Hong Kong, Japan,
ultra-fast 10Gbps plan at S$189
and 189,000 fibre customers. 23 Asia destinations. With M1 Data We continued to partner device New Zealand and the United States.
per month.
Passport available in 56 popular manufacturers to make a selection of These plans come with 2GB data
MARKET DEVELOPMENTS destinations worldwide, the number new handsets, tablets, wearables and and 10 voice minutes.
The corporate fixed services
of M1 customers using our data accessories available to our customers.
Based on Info-communications Media business is a growth segment. While
roaming services increased by more Key models launched during the year To meet our prepaid customers’
Development Authority’s (IMDA) it made up 10% of our fibre base,
than 50% in 2017, with roaming traffic include Apple iPhone X, iPhone 8 and growing data needs, we launched
statistics as at end November 2017, the segment contributed around 50%
growing by more than 150%. iPhone 8 Plus, Samsung Galaxy S8, S8+ M Cards that are bundled with larger
Singapore’s mobile market penetration of fixed services revenue for the year
and Note 8, Huawei Mate 10, Mate 10 data bundles in August 2017. 300MB,
rate was 149.6%, compared to 149.8% 2017. For this segment, we continued
During the year, we made available Pro, P10 and Nova lite, LG V30+ and G6, 500MB and 2GB data were bundled
as at end 2016. There were a total of to strengthen our product offerings
several innovative large data plans to Oppo R11s and R11s Plus, as well as with the S$2, S$5 and S$15
8.4 million mobile subscriptions and competencies in areas such
cater to consumers’ growing data needs Sony XZ Premium. M Card activations respectively. In
comprising 60.6% postpaid and as ICT solutions. In October,
for social networking, and video and September, we further enhanced the
39.4% prepaid subscriptions. M1 launched the world’s first
music streaming services on the move. PREPAID MOBILE attractiveness of data bundles by
symmetrical 10Gbps PON connectivity
In August, we launched Singapore’s first introducing larger data packs with free
For fixed broadband, the residential M1’s prepaid mobile service is mainly service, as well as next-generation
unlimited data 4G mobile plan, mySIM3 incoming calls, such as 7-day, 2GB Data
broadband penetration rate was used by the migrant worker community, unified operations monitoring
98 at S$98 a month. This was followed Packs and 30-day, 6GB Data Packs. We
94.5% as at end November 2017. transient visitors to Singapore such as centre for real-time monitoring of
in October by the introduction of our also offered two new M Card Top-ups
From end 2016 to November 2017, business travellers and tourists, and network services and IT infrastructure
mySIMe plans, with subsidised handsets bundled with more data, SMS, local
the total fibre market including resident customers including parents in both private and public clouds. We
included. The four new mySIMe and international talktime.
both residential and corporate who want to manage their children’s also expanded our fibre-to-the-building
plans start from 5GB data, 100 minutes
subscriptions grew 0.9% to 1,468,700. mobile usage. infrastructure with full redundancy
of voice calls and 100 SMS at S$40 a In November, we introduced a new
Over the same period, cable and digital capability to more than 55 shopping
month, to unlimited data, voice calls Tourist SIM Card. With a validity
subscription line (xDSL) subscriptions In 2017, our prepaid customer base malls, offices and commercial
and SMS, at S$118 a month. We also period of 10 days, the S$50 Tourist
fell 23.8% to 185,800, and 47.0% to decreased by 25,000 to 747,000, buildings to better manage provision
released our mySIMs share plan, SIM comes bundled with 100GB
35,000, respectively. largely due to the cessation of 2G of service end-to-end.
4.3GB M1 Data M1 Prepaid 10% of our
per month Passport App Fibre Base
average postpaid data usage per available in launched in November 2017 are corporate customers,
smartphone customer 56 destinations contributing ~50% of
fixed services revenue
20 ENABLING A DIGITAL FUTURE M1 LIMITED Annual Report 2017 21OPERATING data and 10 voice minutes available
on both plans are valid for 10 days
• All-in-one cyber parental control:
Launched in December, M1 Cyber
REVIEW from the activation date. Guardian is a network-based
all-in-one solution that enables
• Enhanced mySIM plans: The new parents to monitor online time
data-centric MySIM3 98 and MySIMe and content for their children across
118, launched in August and all their devices at home and on the
October respectively, offer our go. Previously known as Internet
postpaid customers unlimited local Parent Control, this enhanced
data bundle. With the new mySIMe service packs additional features
PRODUCTS AND SERVICES plans, customers have the option to including a self-help portal that
get their favourite smartphone or enables parents to better customise
M1’s innovative and exciting products
tablet at a more affordable price. and manage a healthier internet
and services launched in 2017 include:
We also introduced the mySIMs usage experience for their children.
• Mobile remittance service: share plan, which enables mySIM3
Launched in April, M1 Remit offers and mySIMe customers to share • M1 Enterprise Mobile: To better
a fully digital experience for money their plans with up to two other lines. serve the needs of corporate
remittance. This service enables customers, we released two M1
• Mobile malware detection Enterprise Mobile plans in April.
customers to access real-time
solution: In partnership with Nokia, M1’s Enterprise Mobile 6, priced at
exchange rates and remit funds to
we launched M1 Mobile Guard, S$61 a month, comes with a 6GB
their designated recipients anytime,
Asia’s first network-based mobile data bundle, as well as unlimited
anywhere, through a mobile
malware detection solution in local voice minutes and messaging.
application or a browser on their
September. Powered by Nokia’s The Enterprise Mobile 12 plan,
smart device. Recipients are able
NetGuard Endpoint Security priced at S$75 a month, offers
to cash-out as quickly as within an
network-based anti-malware 12GB of data for corporate
hour of the transaction, from over
solution, M1 Mobile Guard offers customers that require even more
23,000 cash agents and 640 banks
users the convenience of always-on data. A key feature on both plans
in the destination countries – the
protection and device health is the unique M1 Enterprise Data
biggest cash-out network for any
assessment, detecting, alerting and Passport enabling the customer’s
mobile remittance service in
eliminating any threats found. The data bundle to be used across
Singapore. M1 Remit currently
service is available at S$2 per month. 56 popular business destinations.
offers nine remittance destinations
– Bangladesh, India, Indonesia, International voice calls are also
• True gaming experience: M1 available at an affordable S$0.10
Myanmar, Malaysia, Sri Lanka,
GamePRO 1Gbps is a customised per minute through M1’s unified
Pakistan, Philippines and Thailand.
broadband plan for gamers. communications service.
Running on a dedicated network
• M Card roaming services:
with managed custom routing to • Next-generation symmetrical
Launched in June, the prepaid
overseas gaming servers, GamePRO connectivity: M1 made available
roaming plans enable M Card
users will enjoy a smoother the world’s first symmetrical
customers to stay connected during
gameplay with the highest 10Gbps PON in October. The new
their holidays and avoid the hassle
prioritisation in data traffic and symmetric PON service enables
of queuing to buy a local prepaid
lower latency. In December, M1 to deliver highly reliable,
card upon arrival. The plans, priced
GamePRO was bundled with the low-latency symmetrical 10Gbps
at S$15 and S$28, are usable across
Linksys WRT32X gaming router; this upload and download speeds with
12 and 17 popular holiday
enables serious online gamers to guaranteed bitrates islandwide.
destinations respectively, including
enjoy an optimised gaming Enterprises can leverage on this
Australia, Hong Kong, Japan, New
experience while simultaneously connectivity for cloud computing,
Zealand and the United States – the
managing other online traffic in the software-defined networking
widest selection of destinations of
home to ensure other devices and (SDN), 4K/8K video transfers, and
any prepaid roaming plan. The 2GB
activities are not compromised. other applications.
M1 Remit MySIM3 98 M1 M1
remit funds anytime, anywhere first unlimited local data
4G mobile plan for postpaid GamePRO Enterprise
customers optimises gaming experience
Mobile Plans
up to 6GB data bundle with
unlimited local voice calls and data
roaming across 56 destinations
22 ENABLING A DIGITAL FUTURE M1 LIMITED Annual Report 2017 23OPERATING • Unified Operations Monitoring
Centre (UOMC): Launched in
deployment of containerised
workloads across private and
another amazing and captivating Big
Top production, to Singapore.
M1 staff received 16 Star, 48 Gold, and
106 Silver awards compared to 11 Star,
The solution also enables dynamic
and more efficient use of network
REVIEW October, our next-generation
UOMC enables our customers to
public clouds. Digital start-ups
can shorten the innovation cycle In June 2017, a new brand campaign,
41 Gold, and 94 Silver awards in the
previous year. EXSA, a national award
resources to support wide-ranging
Smart Nation use cases, and
access real-time information not and go to market faster, while entitled “I’M1” was launched on TV, that recognises individuals for their shortens the time to market in the
just for network services, but also saving on investment in print, online and outdoor advertising outstanding service, is managed by deployment of new IoT services. It
IT infrastructure in both private on-premise infrastructure. channels. The campaign showed the seven industry bodies and supported will significantly improve network
and public clouds. Advanced inspirational story of M1, which has by SPRING Singapore. performance and enhance
technology built into the SALES AND DISTRIBUTION challenged industry status quo and customer experience.
architecture will deliver predictive championed choice for our customers The Contact Centre Association of
As at end 2017, we operated 11
M1 launched information such as early warning
of impending equipment failure.
M1 Shop outlets, to provide
for generations. Together, we have
become the changemakers from all
Singapore Awards 2017 also honoured
our staff with both the Best Contact
• NB-IoT network: M1 launched
Southeast Asia’s first and the
Southeast Asia’s This enables customers to take
customers with convenient access
walks of life. Centre Team Leader and Best Customer world’s second commercial
to our products and services. To
first and the world’s proactive action to rectify potential
further expand our reach and We continued to build affinity for the
Service Professional of the Year awards. nationwide NB-IoT network. This
network will catalyse smart
faults before they occur. The
second commercial UOMC can also partner and
accessibility, we also partnered brand, as well as our products and Our continued efforts to better serve solutions innovation and support
exclusive distributors such as
nationwide NB-IoT inter-operate with other security
Arrow Communications, Big Box
services through engagement
programmes with our customers on
our customers have shown results with
an improved score year-on-year in the
Singapore’s transformation into a
operating centres (SOCs), to Smart Nation. The IoT, in enabling
network. This address increasingly advanced
Singapore, and Handphone Shop, social media channels. Customer Satisfaction Index of hyper-connectivity to millions of
and conducted regular roadshows
network will catalyse cyber threats and to streamline
at high-traffic locations such as
Singapore for 2017, in both the Mobile devices, sensors and services, is a
IT incident management. CUSTOMER EXPERIENCE Telecoms and Broadband segments. key Smart Nation building block.
smart solutions shopping malls, migrant worker
With the launch of M1’s NB-IoT
We continued to strengthen the
innovation and • High-speed fibre network to
dormitories, and major consumer
technology events. customer experience across all touch NETWORKS network, solution providers and
buildings: M1 has expanded its businesses can now develop and
support Singapore’s fibre network to enable high-speed
points throughout the year. M1 has invested more than S$2.0 billion
deploy new IoT-enabled solutions,
in our mobile and fixed networks since
transformation into corporate connectivity services at
M1’s e-Shop exists to meet our
customers’ increasing preference to Our postpaid customers are now using our inception. Through continual
such as smart energy management
a Smart Nation more than 55 shopping malls,
offices and commercial buildings.
engage with us online. Through our the refreshed My M1 App to obtain investment in new networks and
for buildings, asset tracking and
fleet management. This will also
online pre-order and collection system, near real-time usage information and technology, we enhance the customer
This network enables M1 to better self-manage their account-related fuel the development of many more
they enjoy a better service experience experience, improve business
manage provision of services services, such as roaming and value- solutions in the future.
with the ability to: choose their productivity and offer our customers
end-to-end, such as shorter added service subscriptions. To date,
preferred product models, make the latest products and services, often
activation within seven to 10 days • Cessation of 2G services and
payment, and select their preferred 78% of our smartphone customers use ahead of competition.
of sign-up compared to the current retirement of 2G network: The
location for collection or make My M1 App to manage their services.
14 days, and provide service level evolving technology landscape has
arrangements for delivery. Customers Adding to the success of the My M1 Key network initiatives in 2017 include:
agreement of up to 99.999%. seen consumers migrating to 3G
who choose to collect their handsets App, we introduced a similar App for
• 35Gbps in 5G trial: Together with and 4G technologies to enjoy more
from M1 Shop outlets enjoy shortened our prepaid customers.
• Cloud services for digital start- Huawei, M1 successfully services and higher data speeds. This
collection times of as low as 10 minutes.
ups: In November, M1 made We also adopted leading-edge Artificial demonstrated Singapore’s highest has brought along the retirement of
Customers also have the flexibility of
available a new cloud offering Intelligence technology to launch our 5G transmission speeds of 35Gbps. the 2G network and cessation of 2G
collecting their handsets outside of our
designed for Singapore’s digital very own Chatbot, Mindy, who assists 5G technology will support a services, an exercise which was
outlet operating hours as we offer the
start-ups and Small and Medium customers with queries on our massive number of low-latency conducted in the second quarter of
option of delivering to POP Stations
Enterprises. The service empowers products and services. connections critical to driving the 2017. Working closely with IMDA,
islandwide for pick-up anytime, 24
users to rapidly develop software- next wave of virtual/augmented M1 partnered community groups to
hours a day, seven days a week.
based products and grow their The streamlining of the online reality and IoT applications such as reach out to seniors and other 2G
During the year, we saw an increase
businesses without hefty up-front Registration of Interest and Pre-Order autonomous driving, and powering mobile users. At no additional cost,
in utilisation of the online channel,
infrastructure expenditure. M1 also for the purchase of newly-launched smart applications that will we assisted their transition to
especially during the launch of popular
enhanced its next-generation handsets was also warmly received fundamentally transform lives of 3G/4G services without the need
models. Online transactions made up
Software-Defined Data Centre by customers. Our new purchase flow Singaporeans in a ‘Smart Nation’. to re-contract to any plan; a range
56% of total transactions in 2017,
(SDDC) portfolio, powered by the involves less steps and clicks for a faster of affordable handsets was also
compared to 49% in the previous year.
VMware Cloud Provider™ and smoother purchase experience. • Cloud-based virtual core network: made available for their use. First
programme, with container support Together with Huawei, M1 introduced to Singapore in 1994,
through Pivotal Container Service™ BRAND At the heart of our excellent customer introduced Singapore’s first the retirement of the 2G network
(PKS). This new cloud offering allows 2017 marked the 20th year of M1’s service is our staff. Their positive cloud-based virtual Enhanced has allowed for the re-allocation of
access to production-grade launch in Singapore. To celebrate our engagements with our customers were Packet Core (vEPC) network scarce radio frequency spectrum to
Kubernetes and natively-supported anniversary, we partnered Cirque du duly recognised at the highly-regarded solution, to enhance M1’s core meet increasing demand for
toolkits, which supports faster Soleil once again to bring KOOZA, yet annual Excellent Service Awards (EXSA). network robustness and resiliency. higher-speed mobile services.
55 KOOZA I'M1 16 Star
additional shopping malls,
offices and commercial buildings
in partnership with Cirque du
Soleil to celebrate our 20th
brand campaign
embodies M1's 48 Gold
connected with M1's fibre network anniversary inspirational story
106 Silver
EXSA awards received
by M1 staff
24 ENABLING A DIGITAL FUTURE M1 LIMITED Annual Report 2017 25OPERATING FINANCIAL
REVIEW REVIEW
• Integrated Small Cell/WiFi OPERATING REVENUE
(HetNet): Customer demand for
data continues to grow, driven by Group
faster networks and high-bandwidth Year Ended 31 December
mobile applications such as video 2017 2016 YoY
streaming, social media and online S$’m S$’m Change
gaming. Heterogeneous Network
Operating Revenue
(HetNet), the integration of large
Mobile telecommunication services 642.5 640.0 0.4%
and small cells with different
wireless radio technologies, such as International call services 55.9 61.3 -8.9%
cellular and WiFi, enables M1 to Fixed services 129.7 104.2 24.5%
provide the best coverage and Total service revenue 828.1 805.5 2.8%
network capacity to meet this Handset sales 243.0 255.4 -4.9%
growing demand. M1 is the largest Total 1,071.1 1,060.9 1.0%
Wireless@SG WiFi operator in
Singapore with more than 10,000 For 2017, service revenue increased 2.8% to S$828.1 million, driven by higher Fixed Services revenue. Handset sales were
access points. To complement our 4.9% lower due to lower sales volume. Accordingly, operating revenue was 1.0% higher at S$1,071.1 million for FY2017.
advanced 4.5G network, M1
deployed an overlay of integrated
MOBILE TELECOMMUNICATIONS REVENUE
small cells and WiFi equipment to
300 high-traffic hotspots Group
nationwide, including MRT/LRT Year Ended 31 December
stations, bus interchanges, major 2017 2016 YoY
commercial buildings, malls and S$’m S$’m Change
popular outdoor areas around
Marina Bay. Mobile telecommunications revenue
Postpaid 582.3 569.7 2.2%
• Drones on 4.5G HetNet: As drones Prepaid 60.2 70.3 -14.3%
become more commonplace today, Total 642.5 640.0 0.4%
M1 and Nanyang Technological
University have conducted
successful trials and embarked ARPU (per month)
on research to develop M1’s 4.5G Postpaid (excludes Data Plan) 55.8 58.0 -3.8%
Heterogeneous Network (HetNet) Postpaid (excludes Data Plan and adjusted)1 48.7 50.3 -3.2%
for the traffic-management of Data plan 12.7 14.8 -14.2%
unmanned aerial systems (UAS) Prepaid 10.7 12.2 -12.3%
in Singapore’s urban environment Fibre Broadband 43.5 45.1 -3.5%
and its surrounding sea-to-shore
Mobile data contribution as a % of service revenue 55.7% 54.0%
coverage. The findings will
provide valuable insights for 1 After adjustment for ARPU allocated to handset sales
unmanned operations using
the future 5G Ultra-Reliable
Mobile telecommunications revenue increased 0.4% to S$642.5 million. On a segmental basis, postpaid revenue increased
Low-Latency Communication
2.2% to S$582.3 million due to increased subscription revenue from take-up of higher-end plans and wholesale revenue
(URLLC) network.
contribution from MVNO. Prepaid revenue at S$60.2 million was 14.3% lower year-on-year due to lower voice traffic.
Mobile data usage continued to grow with average smartphone data usage increasing to 4.3GB per month in the fourth
quarter of 2017 from 3.6GB per month a year ago. Accordingly, mobile data revenue increased 1.7 percentage points to
55.7% of service revenue.
26 ENABLING A DIGITAL FUTURE M1 LIMITED Annual Report 2017 27You can also read
