StarHub did incorporate sports content in its Basic Tier package prior to mid-2000, but has since unbundled Sports from the Basic Tier to offer viewers a lower entry fee and more choice in their packages. We understand that there are viewers who do not watch sports, and as we did not want to pass on the comparatively high costs of acquiring sports content to them, we offered a separate sports package for $8, and not $6 as Mr Tan mentioned.

StarHub offers sports content on the PPV platform from time to time. Such events, which usually last for not more than two months, include the 2006 Fifa World Cup, the ICC Cricket World Cup West Indies 2007 and the Uefa Euro 2008.

Nonetheless, we would like to explain that it would not be practical to offer all major sports events, such as the BPL, via PPV as a large proportion of our sports subscribers tune in to soccer and enjoy it on several programme channels within the Sports Group. Grouping together the several channels that have soccer content allows us to gain significant economies of scale and pass on these savings to our customers in the form of more affordable prices.

Mr Tan also asked if StarHub will adjust our Sports Group subscription fee, as our channel partner ESPN STAR Sports (ESS) will not hold the rights for the Champions League from 2009 to 2012. We need to remind all that our Sports Group customers will still continue to catch the Champions League and Uefa Cup matches on our sports channels till May 2009. While it is unfortunate that ESS will not retain the broadcast rights to the league, ESS is under no obligation to lower its charges to StarHub. As our subscription prices are related directly to content costs, we have no immediate plans to lower our Sports Group subscription fee. However, we need to point out that despite the escalating increase in cost of sports content, StarHub has doubled the number of channels offered in our Sports Group in the past eight months, offering customers greater value. With the addition of Eurosport (Channel 113) from Tuesday, the Sports Group would soon comprise nine channels. We thank Mr Tan for his feedback and support.

Caitlin Fua (Ms)

Corporate Communications Manager

StarHub