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StarHub secures deal from Marina Bay Sands
SINGAPORE : Info-communications provider StarHub said on Wednesday that it has secured a deal from Marina Bay Sands to provide telecommunications and entertainment services.
It added that the services will extend to both Marina Bay Sands (MBS) Expo and Convention Centre and its luxury hotel rooms and suites.
StarHub did not disclose the actual value and the period of the deal, but said it was a multi-year, multi-million dollar agreement.
In a statement, StarHub said the services will include mobile voice and data services, high-speed broadband and Internet lines.
In addition, a range of StarHub pay TV services will be available in all of MBS' 2,500 guest rooms, as well as on all 75 public screens around the resort, including the casino area.
As part of the agreement, visitors to the resort can also buy a co-branded prepaid mobile SIM card.
Ng Long Shyang, head of Sales and Marketing at StarHub, said the agreement underscores the company's commitment to offer a suite of business solutions that meet the needs of the hospitality industry.
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Starhub does not merely serve the telco and broadband industry; it has its foot too in the hospitality and home-entertainment industry.
What does this bode for Starhub? As an infrastructure company providing content based services, such contracts help to further increase the cashflow inwards to Starhub, with perhaps a lesser capex in providing such services. If I'm not wrong, license fees for TV broadcasting do not increase with more subscribers coming on; it is a fixed cost, and the average fixed cost will only decrease as more and more subscribers come on board.
A blue chip STI-component company with its infrastructure ready, operating in industries with ultra high barriers to entry (telco, broadband, cable TV), with forays into home-entertainment (karaoke on top of cable TV) and hospitality (as above)... What more can I ask for with a 10.5% dividend yield on my cost?
While I won't seek to buy more at current prices, I will definitely increase my holdings if its price ever comes down.
We are on the same Green Boat my fren :)
ReplyDeleteWad do u think about the Orange boat? Can they expand in 2011?
I m vested in both.
Hi Dividends Warrior,
ReplyDeletewhile the Orange Boat can expand into the TV sector in 2011, the question remains if they can displace duopoly that's existing on the market now.
They might attempt to break in via offering cheaper prices in an attempt to introduce a price war so as to snatch some market share, so I won't be too optimistic of their profits at the very start. 2012 and beyond will be anyone's guess.