3. StarHub Overview
Key Singapore Statistics
Population Households
5.31M 1.189M
Mobile
Penetration Broadband
148.9% Penetration
104.4%
NGNBN Launched
in 2010
Source: IDA, Singstat as at June 2012 StarHub Ltd – All Rights Reserved
4. StarHub Overview
Key Milestones
• Launch of 3G services
Commercial • First year to turn profitable
launch of
• Overtook M1 to become #2 mobile operator • Commenced HSPA+ network
fixed and upgrade
mobile
Incorporated as • Launch of HDTV • Implemented Smart Network
services
2nd fixed line and Launch of digital
• Launch of High-Speed Signaling Technology
3rd mobile cable TV services
Packet Access (HSPA) • Launched NGNBN services
operator in May
Mobile Service
• Launch of pfingo
mobile service
1998 1999 2000 2002 2004 2005 2006 2007 2008 2009 2010 2011
Publicly list
on SGX-ST in •Partnership with Vodafone
• Awarded WiFi contract
October
Acquires for all Changi Airport •Launch of Singapore’s first interactive Hub IT
Cyberway ISP terminals commercial
• Asia-America Gateway •Launch of data sharing and Multi SIM Plans
• Launch of Smart TV
landed in Singapore
(DVR) •Launch of roam manager
• Becomes member of • Launch of Demand TV
Merger with SCV in July
Conexus Mobile Alliance (VOD)
brings cable TV and
residential broadband
• Launch of 100Mbps
portfolio
residential broadband
• Included in MSCI Singapore
service
• Dow Jones Asia Select Dividend 30 Index
• Selected to build & manage OpCo
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5. Company Snapshot
Mobile
Customers
2,173,000
Broadband
Customers
439,000
Pay TV
Households
543,000
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7. What is Mobile Payment?
PayPal on Mobile
Mobile Banking
Remittance/Money Transfers
E-money
Direct Mobile Billing/
Premium SMS
NFC
Any form of payment made using the mobile phone
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8. Demand for Mobile Payment
Mobile Payment Increasingly Popular
Worldwide in 2010-2011 Asia Pacific in 2015
10%
23%
67%
US$3.6 Billion
38% users 14.8% CAGR (2010-
2015)
76% transaction volumes
StarHub Ltd – All Rights Reserved Source: Frost & Sullivan, iResearch
10. - Handset, Prepaid Card, Terminal, Offers, Application, all seamlessly
integrated
- New cloud-based version supports all credit and debit cards
- New security feature: remote locking and disabling of wallet
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11. A joint venture between AT&T, T-Mobile and Verizon,
ISIS works by placing the wallet application inside
SIM cards. Supports VISA, MasterCard, AMEX and
Discover credit/debit cards.
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12. - Access to PayPal accounts
- Link gift cards & coupons to the wallet
- Partners with Discover to issue card
- Acquired card.io to allow smartphone to
capture credit card info
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13. IDA’s NFC CFC
-Issued in Nov 2011
-Commercially ready in Aug 2012
-Asia's first interoperable nationwide NFC mobile payment system with a
total investment of $40 million. More than 20,000 retail points to accept
contactless payment cards from MasterCard or Visa
3 MNOs 3 PSPs
TTP
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14. IDA’s NFC CFC
Payment
Telco Service
Providers
Trusted Third Middle-man Between Telco and Service
Providers for provisioning/exchange of
Party (TTP) information
VAS Provider/Merchant
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16. Why StarHub invests in NFC…
Provide innovative and convenient
services to Mobile customers
Increase stickiness
New revenue stream
Position StarHub as Leader in NFC services
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17. Service Overview
StarHub leverages on NFC to introduce
SmartWallet as a new form of payment services to
StarHub Mobile postpaid customers.
A mobile application that allows users to
securely download their payment cards, rewards
and offers to their NFC-enabled smartphones, and
taps their phone at the point of sale to make a
purchase.
It eliminates the need to carry cash, credit/debit
cards, reward cards, coupons, tickets, and transit
passes, fundamentally changing how users shop,
pay, and save.
17
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18. SmartWallet Service Framework
Hosted PSP Payment Service NFC VAS
TSM service Providers e.g coupon
Merchants
Trusted Service Hosted MNO PSP cards on
Manager TSM service StarHub SIM
& NFC SIM & NFC VAS
NFC VAS
e.g coupon,
loyalty,
ticketing
TSM & NFC
SIM certification Provides SmartWallet / NFC VAS
& certified NFC SIM / handsets
NFC Handset
certification Provides certified
Payment Scheme NFC handsets
Providers Consumers
Handset
Manufacturers
19. Customer Benefits
Security • International security standards approved
by Mastercard, Visa & EZ-Link
• Secured passcode on SmartWallet App
• Cconvenience of all-in-one digital wallet –
digital credit cards, EZ-Link card and digital
coupons all on your mobile phone
Convenience
• Consumers feel ‘cool’ being able to make
payments and travel ‘in style’ using their
mobile phones.
Cool Factor • Be the early-adopters to use the latest
technology
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24. Meeting User’s Expectations
Users love the Convenience and Sense of
Peace, knowing they can pay using their phones if they
forget their wallet.
BUT they don’t want to spend extra money
in order to utilise the service
AND, they want to use the Device of Their Choice
Main driver for NFC: Transit
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25. Challenge : Limited NFC Enabled
Handsets
We need BOTH NFC phones, as well as Bridging
Devices for current non-NFC phone users
NFC Phones NFC Bridging Devices
Availability and wide spread Provide alternatives ?
appeal ?
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26. Challenge : Customer Education
Customers main concerns:-
- Is it Secure ?
-What if I lose my phone?
-What are the charges?
-Why do I have to pay?
-I don’t like the phone selection
-Can I change mobile provider?
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27. Getting the basics right: High
Security Standards
Your service
provider will be able
The end user Wallet to stop after you The SIM card
Credit limit of 100
is protected by a inform him. Your followed the same
dollars for each
personal PIN of 6 service provider may set of testing as a
transaction
digits lock or terminate the credit card
service depending
on your instructions
SECURITY
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28. Strong Regulatory Support
Regulators play the BIGGEST part in
fostering cross-industry collaborations
Monetary Authority Transport Authority InfoComm Authority
Create
Provide Create incentives for
concessions framework and companies to
and guidelines acceptance adopt NFC
for new card policies for Link-up
medium (SIM NFC cards on interested
card) transit players across
industries
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29. Partnership is KEY to Success
Supporting Customer
Device & SIM
Lifecycle,
Bringing new value- Certification of
added services Devices & Secure
Elements
A Unique
Issuing NFC Offering value-
payment cards,
Role for added services
Deploying terminals Everyone and merchant
island-wide connectivity
Provides high-
quality TSM
between partners
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