M1, StarHub offer unlimited-data mobile plans

Singapore

IN a sign that the impending entry of new players is shaking things up in the telco sector, M1 and StarHub on Wednesday unveiled new mobile postpaid plans featuring free unlimited data.

Their moves point to attempts to retain, or even gain, market share before the new kids on the block launch their services, said analysts.

M1 is offering an unlimited 4G mobile plan for S$98 each month on a 12-month contract. The plan, known as mySIM3 98, is one of four new line-only plans that the telco is launching on Thursday, the first day of the Comex consumer electronics fair.

The other three plans cost between S$20 and S$50 a month, and come with data ranging from 5GB to 30GB on a 12-month contract.

M1 previously offered six line-only plans. The most data-heavy one in that range cost S$125 for 25GB on a 12-month contract.

Meanwhile, StarHub is offering free unlimited data on weekends for customers who sign up for or renew their post-paid plans from Thursday.

For weekdays, its customers on these plans will have between 3GB and 15GB of bundled data. These will cost between S$24 and S$119 a month for a line-only plan with no contract, or between S$48 and S$238 for a two-year plan with a subsidised mobile phone.

StarHub's head of product Justin Ang noted that Singapore consumers' appetite for data is growing, with their use of more advanced phones and pixel-heavy content. "We will continue to innovate in step with our customers' changing digital lifestyles to boost customer satisfaction," he said.

The telco has begun upgrading its network at high-traffic locations such as transport hubs and shopping belts, ahead of the arrival of 1Gbps-capable phones at the end of this year.

Singtel, when asked whether it will launch plans with unlimited data as well, said the telco has offered free mobile data on Sundays to its Singtel Circle customers since late-2015.

Its spokeswoman said: "We will soon unveil a range of attractive Comex offers that customers will love, so stay tuned."

The moves by M1 and StarHub come ahead the competition expected from Australia's TPG and homegrown firm MyRepublic.

OCBC analyst Eugene Chua said: "We believe what these two telcos are trying to do is to capture and lock their customers in on 12- to 24-month long contracts, especially since the demand for higher data allowance has been and is likely to continue to be on an upward trend."

He added that the two telcos' intention is probably to retain or gain market share before the new entrants enter the fray.

MyRepublic has announced plans to start providing mobile services in October; TPG is expected to launch nationwide mobile services by September next year.

Each is eyeing 5 to 6 per cent of Singapore's market. Singtel currently has the largest share at 48.7 per cent; StarHub's share stands at 27.5 per cent, and M1's, 23.8 per cent.

Ovum principal analyst Clement Teo suggested that the latest moves cannot be completely attributed to the new competition, but they point to the telcos' attempts to defend their turf. They are also becoming more customer-centric.

Still, he described the S$98 sum for M1's plan as "quite hefty", and does not expect consumers to be "rushing to sign up".

"What happens now is that in terms of different price points, there is a whole range of options that the customer can pick from," he said.

As traffic and usage patterns become clearer over time, telcos will probably make further adjustments to these plans, he added.