StarHub gains spark new intensity in war with rival SingTel
<p>The heat has been turned up yet again in the telecoms war in </p><p>Singapore, where StarHub's attempt to challenge SingTel's dominance with </p><p>an aggressive multi-million dollar advertising campaign since the end of </p><p>last year appears to be paying off. </p><p><BR><BR> </p><p>Since it formally entered the fray on April 1, which marked the end of </p><p>SingTel's 120-year monopoly on fixed line and overseas calls services, </p><p>the new entrant has stolen some market share from its entrenched rival, </p><p>industry analysts said. </p><p><BR><BR> </p><p>The major battle has been over the IDD market, because international </p><p>calls generate a huge slice of the revenue pie for any telecom company, </p><p>the analysts explained. </p><p><BR><BR> </p><p>But in what could be a precursor of things to come, StarHub's IDD 008 </p><p>was the adex leader among the top 10 brands in Singapore, with a spend </p><p>of S$4.4 million for the first quarter, followed closely by </p><p>SingTel at S$4.1 million, according to ACNielsen. </p><p><BR><BR> </p><p>McDonald's, the previous top spender, was far behind at S$3.3 </p><p>million. </p><p><BR><BR> </p><p>Overall, the telecoms category saw adspend soar 130 per cent </p><p>year-on-year in the first three months of 2000; however, SingTel </p><p>remained the top advertiser across its wide range of telecoms-related </p><p>products, with a total spend of S$6.8 million. </p><p><BR><BR> </p><p>DY&R, which produced one major campaign for SingTel in 1999 and two more </p><p>for the first four months of this year, said StarHub's gains were not </p><p>"startling". </p><p><BR><BR> </p><p>"SingTel is a highly-regarded company in the minds of consumers, </p><p>providing excellent service over many years and despite its monopoly </p><p>position, it has been keeping up with the times by benchmarking itself </p><p>with the best telecommunications practices in the world," DY&R Singapore </p><p>MD Brian Harrison told MEDIA. </p><p><BR><BR> </p><p>"While prices may have been higher before, they were reasonable. </p><p><BR><BR> </p><p>"Because of this and its positioning as among the leading telecom </p><p>companies in the world and offering consumers the best services </p><p>possible, loyalty rates are good and the attrition rate is not </p><p>startling." </p><p><BR><BR> </p><p>StarHub's early successes are attributed to aggressive advertising, </p><p>marketing and promotions and the introduction of a "new pricing </p><p>paradigm", said Mr Nick Marrett, deputy MD of Batey Ads, the agency for </p><p>the new telecom player. </p><p><BR><BR> </p><p>"Rather than take SingTel head-on, StarHub has implemented a pricing </p><p>scheme which breaks the mould - no charge on incoming calls and </p><p>per-second charging, which is not unusual around the world," he </p><p>said. </p><p><BR><BR> </p><p>The results so far for StarHub had been "satisfying", Mr Marrett </p><p>added. </p><p><BR><BR> </p><p>SingTel and StarHub, meanwhile, look likely to become enmeshed in a </p><p>protracted price war, as both have recently announced that they would </p><p>slash their international call rates by up to 60 per cent. </p><p><BR><BR> </p><p>The telecoms war, however, is expected to become increasingly savage </p><p>over the next 12 months, following the Singapore government's recent </p><p>decision to completely deregulate the market, two years ahead of its </p><p>original schedule. </p><p><BR><BR> </p><p>Speculation is rife that British Telecom and Japan's NTT - which, </p><p>together with ST Telemedia and Singapore Power, make up the major </p><p>partners of StarHub - could soon launch their own independent telecom </p><p>services in the Lion City. </p><p><BR><BR> </p><p>With dozens of licences now up for grabs, analysts said this would put </p><p>more pressure on StarHub and not SingTel. </p><p><BR><BR> </p><p>The new entrant, they said, was now in an uphill battle because SingTel </p><p>has a strong advantage in it being the dominant player for so many </p><p>years. </p><p><BR><BR> </p><p>But with new players coming in, StarHub would have to watch its back </p><p>too, they said. </p><p><BR><BR> </p>
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