As Singapore's telecom sector enters a period of consolidation, one player has stayed noticeably quiet. Singtel, the nation's biggest and oldest telco, is holding its ground as rivals consolidate – and analysts say it's because it doesn't need to. Singtel's diversified business model and strong brand loyalty, including among younger customers who may not care about the company's legacy, give it the flexibility to sit out a domestic reshuffle.

This week, Keppel announced plans to sell M1’s telecom operations to Simba Telecom, while StarHub confirmed its full acquisition of MyRepublic’s broadband business. In this context, Singtel – the market leader and the oldest telco in the country – has made no similar moves. Business and brand analysts told CNA this is because it does not need to. Only about 27 per cent of Singtel’s revenue comes from Singapore. The rest is spread across investments in Australia, India, Indonesia, the Philippines and Thailand, providing it with a financial cushion.

Associate Professor Hyeokkoo Eric Kwon of Nanyang Technological University (NTU) expects Singtel to avoid price wars and instead deepen its push into enterprise solutions and data-centre services. He noted that the company has no urgent need for domestic mergers and acquisitions and will probably focus on execution as rivals digest recent moves. Mr Oo Gin Lee, a tech industry observer, also indicated that anti-competition concerns could make acquisitions difficult for a firm of Singtel’s scale.

Key Indicators

What this signals for the market/industry: Singtel's stance suggests that strong brand loyalty and a diversified financial model can be an effective strategy for staying relevant in competitive markets, even as structural shifts occur.
Leading indicators and data points: Only 27% of Singtel's revenue comes from Singapore, showcasing a significant reliance on international markets.

Regional Perspective

Amid consolidation in Singapore's telco market, Singtel emerges as a model of stability, relying on deep customer loyalty, even among younger generations. While other firms invest in acquisitions, Singtel focuses on strengthening its infrastructure and enterprise services, leveraging its early mover advantage.

Analysis

Experts point to Singtel's early first-mover advantage, which allowed it to build a strong customer base and deep relationships with both consumers and enterprises, as a key asset. Mr Pulse Tan, Principal Consultant at Ninety One Branding and Marketing, stated that the early brand loyalty the company garnered by providing affordable and reliable services still resonates, especially with boomers and Gen X who have been with Singtel since day one. However, experts caution that loyalty alone is not enough; brands must adapt to changing customer needs and technological advancements to remain relevant, something Singtel appears to be pursuing through continuous investment and a forward-looking approach.