What will Tuas–M1 mean for StarHub’s competitive strategy in the next 12 months?

Tuas Limited’s (ASX: TUA) acquisition of M1 Limited marks a major turning point in Singapore’s telecommunications market. The deal, which merges Tuas’s Simba Telecom with one of the country’s oldest mobile operators, signals the arrival of a stronger challenger brand with both infrastructure depth and consumer momentum. For StarHub, the country’s second-largest telecom provider by subscriber base, the move raises pressing questions about competitive positioning in a market long dominated by two players — Singtel and StarHub — with smaller challengers fighting for share.

While the combined Tuas–M1 entity is positioned to disrupt, StarHub’s reaction over the next 12 months will determine whether it can maintain market share, protect its margins, and strengthen its brand relevance. This could involve recalibrating pricing strategies, rethinking bundle offerings, and accelerating certain network investments to stay competitive.

How might StarHub adjust its pricing, bundling offers, and network investments in response to Tuas–M1?

In the days following the acquisition announcement, StarHub’s share price fell noticeably, reflecting investor concerns that a stronger challenger could intensify competitive pressures. Analysts point out that the newly merged Simba–M1 will instantly control a sizeable portion of the postpaid market, creating fresh incentives to compete on price and promotions. For StarHub, which already operates in a price-sensitive environment, the question is not whether to respond, but how to respond without eroding profitability.

On pricing, one possibility is a shift toward targeted promotions rather than broad-based discounts. Instead of cutting rates across the board, StarHub could introduce competitive deals for high-value customer segments such as postpaid family plans, small businesses, and long-term contract renewals. This would allow it to defend key accounts without triggering a damaging market-wide price war.

Bundling is another likely battleground. The Tuas–M1 combination will have the scale to push competitive mobile-and-broadband packages, possibly with aggressive introductory offers. StarHub could counter by enhancing its “total service” approach, integrating mobile, fibre broadband, pay-TV, streaming services, and emerging smart-home features into value-rich bundles. The goal would be to compete on overall experience and convenience, rather than pure price.

From a network standpoint, StarHub may find opportunity in leveraging its existing infrastructure-sharing arrangement with M1. Even after the acquisition, these arrangements could yield operational efficiencies, particularly in 5G coverage expansion and spectrum utilisation. This would allow StarHub to deliver improved service quality without committing to the same capital intensity Tuas–M1 might face during integration.

The competitive stakes are high because Tuas–M1’s projected market share brings it within striking distance of Singtel in postpaid services. While Singtel’s scale and brand strength are still formidable, the emergence of a close competitor could shift market dynamics and customer perceptions. For StarHub, the challenge lies in maintaining its positioning as a high-quality, customer-centric alternative that offers something distinct from both Singtel’s premium dominance and Tuas–M1’s challenger appeal.

Enterprise services may offer StarHub its clearest differentiation path. Unlike Tuas, StarHub already has a strong presence in business connectivity, cloud integration, and cybersecurity services — areas less vulnerable to consumer market pricing battles. By doubling down on these strengths, StarHub could offset any margin pressure in the retail segment with higher-value enterprise revenue.

However, the consumer market cannot be neglected. StarHub’s retail customer base remains a vital part of its brand identity and long-term revenue stability. This means refining its retention strategy, which could involve more personalised rewards programs, flexible plan customisations, and early access to new technologies or content partnerships. The aim would be to create a stickier customer experience that discourages churn, even if Tuas–M1 rolls out aggressive acquisition campaigns.

Network upgrades are also likely to be part of the competitive playbook. While StarHub may not need to match Tuas–M1 in capex dollar-for-dollar, it could selectively invest in network densification in high-demand zones, introduce 10 Gbps fibre in targeted areas, and enhance low-latency performance for gaming, streaming, and business-critical applications. These upgrades could then be bundled into premium service tiers, allowing StarHub to monetise performance gains rather than treating them purely as defensive spending.

Looking ahead, StarHub’s competitive strategy will likely rest on three pillars. First, it will need to use pricing as a surgical tool — defending where necessary but avoiding unnecessary erosion of average revenue per user (ARPU). Second, it must innovate in bundling and customer engagement to ensure that its offerings deliver more than just connectivity. Third, it will have to leverage its infrastructure partnerships and enterprise strengths to sustain margins while navigating the more aggressive consumer market that Tuas–M1 is poised to create.

In short, the next 12 months could prove defining for StarHub. If it responds with agility and focus, the company could weather the challenge and even find new growth opportunities. But if it underestimates the competitive momentum of Tuas–M1, it risks losing ground in a market where customer loyalty is increasingly up for grabs.