Starhub

[dreamybear]

StarHub unveils three contract-free SIM-only options, axes default mobile contract plans
The Straits Times Dec 05, 2018

SINGAPORE - The reputation of Singapore telcos is in decline, a key StarHub executive has suggested, even as the company moved on Wednesday (Dec 5) to replace its existing slate of post-paid mobile plans.

The telco has unveiled a set of three contract-free SIM-only options, in its first consumer mobile product offering since Mr Peter Kaliaropoulos took over as chief executive in July.......

Read more at : http://www.asiaone.com/singapore/starhub...ract-plans

[BRT]

As part of the transition to the new dividend policy, the Group intends to pay a dividend
of at least 9 cents per ordinary share for FY2019, at a rate of 2.25 cents per quarter.
Any payment above 9 cents in line with the new dividend policy would occur in the last
quarterly payment.

As previously communicated, the final dividend for FY2018 of 4 cents per quarter will be
paid in May 2019.

https://links.sgx.com/FileOpen/FY2018PR....eID=543585

can't say a cut is surprising, but it's quite a big one.

[Kaimin]

I know there's some IT expert VBs here... Price aside, is it correct to say that GSM and SMS is more secure than VoIP and 3G/4G/5G data? Or these data packets are not easily intercepted?

Thanks

They are far less secure. GSM and SMS are transmitted unencrypted and you just need a cheap antenna to intercept the traffic. You can intercept 3-5G data as well, but Internet encryption protocols like HTTPS can hide your traffic contents (but not its source and destination). GSM and SMS do not support any encryption. Signalling System No. 7 or SS7 which phone calls are based on also has several unpatched vulnerabilities that let people spy on you. 

VoIP refers to a large set of protocols for transmitting cellular audio and visual data over the Internet, some of which are encrypted and some of which are not. The traffic is harder to intercept because in Singapore most of it is sent through fiber optic cables which needs specialised equipment to read, but many VoIP services are unencrypted. You should evaluate it on a case by case basis. For example WhatsApp supports end to end encryption of messages and calls.

[CY09]

Starhub vs circles Life battle

Circles Life introduces $28 for 20 GB with Caller ID SIM only Plan.
Starhub reacts by introducing $25 for 13GB + Free Weekend SIM with Caller ID only but is a 12 months contract.


Circles Life introduces unlimited data add on at $20, after 20GB, speed falls

Starhub reacts by introduces unlimited data add on at $20, after 50GB, speed falls off.
This effectively caps most of Starhub plans at $45 since you get talktime, SMS, Caller ID and essentially unlimited data. This makes Starhub current $80 SIM only plan, which offers 70GB, nearly redundant

Starhub shareholders are probably sweating at the fact that Starhub is cannibalising its own higher end plans, eroding its own margins. What it was originally selling at $80 per month, it is now selling at $45!

Cashflow is going to be adversely affected and I seriously doubt Starhub can even sustain 9 cents dividends when its bonds mature

[dreamybear]

I am surprised Starhub did a share buy back given its high debt level. Does mgmt consider $1.61 a fair valuation or is it a confidence showing exercise ?

----------------------------------------------------------------------
Starhub Share Buy Back
Date of Purchase 22/02/2019
Total Number of shares purchased 250,000
Price Paid per share SGD 1.61
Total Consideration (including stamp duties, clearing changes etc) paid or payable for the shares SGD 403,016.81

More details : https://links.sgx.com/1.0.0/corporate-an...1de284c059

[specuvestor]

I know there's some IT expert VBs here... Price aside, is it correct to say that GSM and SMS is more secure than VoIP and 3G/4G/5G data? Or these data packets are not easily intercepted?

Thanks

They are far less secure. GSM and SMS are transmitted unencrypted and you just need a cheap antenna to intercept the traffic. You can intercept 3-5G data as well, but Internet encryption protocols like HTTPS can hide your traffic contents (but not its source and destination). GSM and SMS do not support any encryption. Signalling System No. 7 or SS7 which phone calls are based on also has several unpatched vulnerabilities that let people spy on you. 

VoIP refers to a large set of protocols for transmitting cellular audio and visual data over the Internet, some of which are encrypted and some of which are not. The traffic is harder to intercept because in Singapore most of it is sent through fiber optic cables which needs specialised equipment to read, but many VoIP services are unencrypted. You should evaluate it on a case by case basis. For example WhatsApp supports end to end encryption of messages and calls.

Sorry a bit out of topic but actually relevant to the discussion:

“Truly secure communication is really only possible in the analog world – and then all the old-school spycraft applies.”
https://www.bloomberg.com/opinion/articl...-pointless

[BRT]

wow lead independent director Nihal Vijaya Devadas Kaviratne selling shares at lows. poo poo.
https://links.sgx.com/FileOpen/_NKForm1S...eID=574886

[¯|_(ツ)_/¯]

29 Apr 2020 IMDA: Singapore Forges Ahead with Nationwide 5G Rollout
https://www.imda.gov.sg/news-and-events/...5G-Rollout

2 things stand out from the announcement:
1. 5G is not only about faster speed but rather new applications that could change our life.  It's not only about changing mobile experiences but also enable new ways of doing things.  Imagine with high speed simulations and augmented reality, a surveillance team could just wear a Oculus VR headset and watch over Foreign workers quarantine in their dormitories.  These are real life applications that completely remove our current constraints of deploying onsite resources.
2. IMDA initiatives will create high value jobs for Singaporean.  This is a very good way to ensure the training that we provided to Singaporean is put into great use.  I could see the tremendous opportunities that Singapore and Singaporean can contribute to leading the world in 5G deployment.

I would like to highlight some important points:
Two 5G spectrums will be allocated to Singtel and Starhub/M1 consortium to setup two 5G Standalone (SA) networks islandwide.
Additionally, mmWave spectrums will be allocated to M1, Starhub, Singtel, TPG and mobile virtual network operators to setup localise 5G hostspots.
These hotspots enable retail 5G services to end users too.

Timeline:
1. Jan 2021 Roll out
2. End 2022 Covers 50% of Singapore
3. End 2025 Complete 100% of Singapore

Stay home and stay healthy, everyone.

[dreamybear]

It's a sad day for bear. After months of deliberation, I hv decided to cut loss on my Starhub position. Although small in percentage-wise with the help of dividends rec'd, quite a notable amt due to the overall quantum invested.

My initial investment thesis was built upon a 6% yield based on a min of $0.09 annual dividend and also the new CEO Peter Kaliaropoulos. However, with the latest results announcement, I am no longer confident of it sustaining its dividend yield and also not optimistic abt its earning prospects moving fwd, due to the ongoing covid-19 situation.

Perhaps, I was also somewhat influenced by WB's decision to sell the airline stocks as he's unsure of what has changed*. Quite naive of me to think that Starhub may not be as badly affected since most people staying at home using digital services.

=======

"...While StarHub cut payouts in 2019 as it switched from a fixed to a variable dividend policy, chief executive Peter Kaliaropoulos has now also told an earnings call that the move also scraps its earlier plan to keep this year’s annual dividend at S$0.09 a share..."
https://www.businesstimes.com.sg/compani...0-earnings

https://links.sgx.com/1.0.0/corporate-an...624b1cc012  [1Q2020 announcements]

* https://www.cnbc.com/2020/05/02/warren-b...virus.html

[weijian]

Hi bear,
A cut loss can actually be the best (or happiest) day on hindsight. How one make use of it is actually dependent on the lessons that he/she is able to brutally and objectively derive. While there are some "street lessons", but actually most investing mistakes are personal and involves us having to be brutally honest with yourselves on our limitations, biases and most importantly, pride.

I have never built any investment thesis for equities based on the basis of "minimum dividend". This is probably made easier because at this stage of my life, my spending is not dependent on dividends.

While I don't know the exact details of your thoughts and journey on Starhub, but from what you revealed above, it seems like you probably depended too much on Mgt's dividend guidance - whether is it buying the stock or selling it.

You may want to read (or re-read) the Starhub thread in VB and check for yourself where you might have gone wrong over here. VBs don't really depend on any guidance from Mgt that guarantees the dividend. We look at the FCF and the most importantly, the business supporting the FCF. Only this gives the assurance of whether dividends will be paid out. A guarantee is not the same as an assurance.