StarHub Ltd will jointly invest in a S$200m Cyber Security Centre of Excellence (COE) to grow the local cyber security eco-system. Together with its partners – including Nanyang Polytechnic, Republic Polytechnic, Temasek Polytechnic, the Singapore University of Technology and Design, and five industry partners that are mostly security solutions providers and a consultancy, namely Blue Coat, Cyberbit, Fortinet, Wedge Networks, and EY – the COE will serve as a hub to bring together the best of brains and expertise to tackle cyber threats.

It will undertake various initiatives to strengthen Singapore’s capabilities in cyber security, focusing on talent development, innovation and industry partnerships. And to help address the shortage of cyber security professionals, StarHub said it is committed to training at least 300 specialists in different cyber-related capabilities over the next five years.

Going forward, StarHub plans to rope in more industry and IHL partners to the COE to drive value and results. The latest move shows that StarHub, like Singtel, is evolving its business model from a pure carrier towards more value-added services, which are less likely to be “commoditized”. Maintain BUY on StarHub with an unchanged S$3.69 fair value.

Source: OCBC Research - 25 May 2016