StarHub is a ‘quad play’ telecommunications (telco) provider that delivers services in mobile, fixed broadband, pay TV and enterprise solutions. The liberalisation of the Singapore telco industry has seen the entry of five virtual telcos and TPG Telecom – which won the bid to become the country’s fourth major telco. In total, there are now nine operators offering mobile subscription plans in a market of 5.6 million people.

The heightened competition has seen a price war erupt among players with each offering more data at ever lower prices in a bid to win (or protect) market share. As a result, StarHub’s profit has fallen over the last few years, accompanied by steady drop in share price:

Once favoured by investors for its steady dividend, StarHub also announced a significant cut in its quarterly dividend from 4 cents per share to 2.25 cents. It looks as if