2 culprits behind StarHub's sluggish service revenue

Consumers switching to alternatives.

According to CIMB, Starhub’s service revenue was flattish qoq and yoy despite the rapid take-up of tiered data plans and growth in fixed network services.

This is because of weaker 1) mobile roaming, as consumers switch to alternatives, and 2) broadband and pay TV revenues, due to intense competition from new entrants and
SingTel respectively.

Here's more from CIMB:

YTD ARPUs of both broadband and pay TV have fallen 3%. The number of households subscribing to two of Starhub’s services continues to decline. The intense price competition has diluted Starhub’s bundling discount, in our view.

The bright spots from the results are: 1) a continued surge from 32% to 38% in tiered data adoption among postpaid users, and 2) growth in fixed network services. This is driven by the take-up of the data service among enterprise users.