StarHub Sets Sights on Acquisitions as Corporate Revamp Bears Fruit

But timing of consolidation is outside company's control, CEO says

- Tay Hong Yi

Telco StarHub is ready to explore acquiring both local and regional players to further improve its services, as it wraps up a multi-year major corporate transformation exercise.

Its chief executive Nikhil Eapen, asked if a consolidation in the local market could give the firm more pricing power over customers, advocated a win-win scenario as such a move could spell better value for money for both the firm and its customers.

He said: "Consolidation, generally speaking, is a win-win situation because you have better economic value created for the market participants and that's generally funnelled into better technology, better innovation, better societal value.

"Then, you typically have generally a good degree of retained discipline, because you still retain a competitive marketplace."

In a half-hour-long interview with The Straits Times on Feb 24, Mr Eapen outlined how StarHub is riding on market shifts to grow earnings, especially from its digital infrastructure, cyber-security and managed services businesses.

Although consolidation appears to be the way forward, when it happens remains something StarHub cannot control, he said, counselling patience.

Still, he noted: "I daresay in other markets, where it has happened, it always happens, perhaps later than people think it will.

"In our neighbouring markets in Asia, consolidation, I think, happened at the right time, but it was probably a couple of years after everyone thought it would."