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Business ReviewWith the completion of the upgradingof its 3G and HSPA networks inOctober 2009, M1 was able tosupport downlink speeds of up to21Mbps nationwide and 28Mbps inselected areas, as well as an uplinkspeed of up to 5.76Mbps. Theseinitiatives underscore M1’s strongcommitment to provide customersan advanced and innovative highspeedmobile broadband service onone of the most modern andsophisticated networks in theregion.With the upcoming commerciallaunch of NGNBN, 2010 will be anexciting year for M1. While it willlikely lead to an increase incompetitive activities, M1 will bebetter positioned to capitalise onnew opportunities arising from thenew network, including the provisionof fixed voice and fixed broadbandservices.FINANCIAL PERFORMANCEAmidst a challenging economic andoperating environment, M1’s operatingrevenue declined 2.4% YoY toSGD781.6 million. However, EBITDAmargin on service revenue improvedby 1.3% points to 44.2% as a resultof ongoing cost managementinitiatives. NPAT was stable atSGD150.3 million.REGULATORY OVERVIEWT h e I n f o c o m m D e v e l o p m e n tAuthority (IDA) had, in April 2009,appointed the Operating Companyfor Singapore’s NGNBN. The NGNBNwill offer pervasive ultra-high speedconnectivity in Singapore. Scheduledto start offering commercial servicesin 2010, NGNBN will provide an OpenAccess environment where M1 cancompete more effectively in the areaof fixed broadband services as aRetail Service Provider (RSP).OUTLOOK FOR 2010The Singapore government hasfurther revised the 2010 growthforecast upwards to 7% – 9%, fromthe earlier 4.5% – 6.5%, which reflectsincreased strength in the near termgrowth momentum. Despite theupward revision, M1 continues tomaintain a cautious outlook as thepace of recovery is likely to beuneven amid uncertainties in theexternal environment.Looking ahead, M1 will continue tostrengthen its core competencies inmobile and support new businessareas relating to NGNBN. On themobile front, M1 aims to upgrade itsmobile network in 2010 to achievedownlink speed of 42Mbps, andmaintain its lead in performance andreliability. The announcement byMedia Development Authority (MDA),in March 2010, on mandatory crosscarriage of exclusive content in thepay TV market, will benefit M1 in thelonger term, given the intention tobe a full-service operator and offer amore comprehensive suite ofcommunication services tocustomers.Widely known as an innovative operator with anestablished brand, M1 aims to be the leader in personalvoice, business and data communications, focusing onvalue, quality and customer serviceAnnual Report 2009 • 139