2 things StarHub is blaming for its looming revenue drop

Cheaper Androids are not helping.

According to CIMB, StarHub attributed its revenue guidance to: 1) lower inbound and outbound roaming revenues and 2) lower handset sales due to a shift from iPhones to Android devices which are cheaper on average.

Here's more:

Starhub scaled back its FY13 revenue growth guidance from single digit to low-single digit while maintaining its EBITDA margin of 31%. This implies EBITDA is lowered by 3% or S$20m.

Roamers are now savvier and seek free WiFi hotspots to access data or buy local prepaid SIMs. Singapore telcos are further affected by a bilateral agreement with Malaysia to reduce voice roaming rates by 20% in mid-11 and 30% from mid-12 onwards and reduce SMS by 50% from mid-11 onwards.

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