SingTel

SingTel: Launching of mio TV on Mobile service (UNRATED\S$3.68)
Terence Wong (62323896, terence.wong@dmgaps.com.sg)

SingTel launched the mio TV on Mobile service, becoming the first Singapore-based operator to
launch a mobile TV client with true TV viewing experience on mobile phones. It will tempt users with a
buffet of content, ranging from local favourites (Channel 8 dramas, ChannelNewsAsia) to premium
channels (Mei Ah Movies Channel, ETTV Asia News). The mio TV mobile service also promises to be
more user-friendly, with easy-to-navigate interactive programming guide which displays information up
to 7 days in advance.
mio TV was launched in July 2007, and is battling hard to gain market share over its more established
rival SCV, owned by StarHub. Its subscription of an estimated 28,000 still pales in comparison to
SCV’s 500,000. We believe that SingTel is strategically using mio TV to create “customer stickiness”
with the advent of full mobile number portability, which will be introduced on 13 June 2008. This
service will allow SingTel to compete head-to-head with StarHub.
Among the 3 telcos, SingTel released the best set of results for the quarter ending March 2008. It will
be the least affected by the full MNP, thanks to substantial contributions from its overseas operations.
At S$3.68, SingTel trades at 14.2x forward P/E, higher than StarHub’s 13.9x (S$2.83) and M1’s 10.9x
(S$1.98). We do not have a rating on SingTel, but have NEUTRAL calls on both StarHub and M1.

Source: DMG & Partners Securities Pte Ltd