Singapore-based mobile operator StarHub is looking to cut costs further by forging a network sharing deal with one of its rivals, Bloomberg reported.

StarHub CEO Peter Kaliaropoulos said in an interview with Bloomberg that as the industry matures “you need to start sharing facilities”, adding a sharing agreement could be worked out next year or even earlier.

In early October the operator, the second largest in the city state by subscribers, initiated a cost-cutting programme designed to improve productivity and announced it will eliminate about 300 non customer-facing, full-time positions.

In January 2017 StarHub and M1, the third largest mobile operator, agreed to study widening their network sharing arrangements, with a focus on joint access to their radio networks and backhaul.

In Q2 StarHub reported a 21.6 per cent year-on-year drop in net profit to SGD62.7 million, with mobile service revenue falling 6.6 per cent. Post paid ARPU fell 8.2 per cent during the period to SGD45.

The operator also saw its subscriber base drop 1.4 per cent year-on-year to 2.3 million as it faces increased competition.

Four MVNOs launched services in the city state over the last two years, and the market will soon see the entry of a fourth mobile operator, TPG Telecom.

Kaliaropoulos, who joined StarHub in July from Zain Saudi Arabia, said four mobile players may be too many, Bloomberg reported.

Singtel is the market leader.