Starhub

Starhub: Deutsche met up with mgt and overall maintains Buy Call with $3.03 TP. House note mgt and discussions centred on three key areas NBN, data pricing and the margin outlook. Highlights from meeting are summarised below.

Management continued to express optimism that NBN take-up could accelerate from 2H12, as current installation issues are being addresse. Key opportunities are within the enterprise segment, although it was recognised many enterprise customers remain locked into existing contracts with SingTel (for "two or more years.

Data pricing - focus on smartphone plans (not dongle/USB plans) One of the key 2012 developments management is looking forward to is a potential shift in the data pricing regime. The focus is on smartphone data pricing, with management expressing hope that the industry will move away from large data bundles.

Margin outlook - key drivers which should be supportive. While STH remains focused on growth, management was explicit in its intention to "grow profitably". Related to this, management did not demonstrate particular concern around STH's recent subscriber share loss.