SingTel, Singapore’s largest MNO, launched the country’s first no-contract postpaid data SIM plan on 14 February. The monthly subscription of SGD 19.90 (US $15.92) for this plan includes 2 GB of data. Unlimited data via SingTel Wi-Fi is available until 31 July of this year, after which it will be capped at 2 GB. Customers must prepay the subscription fee for the first month; subsequent monthly invoices will be sent to the customer’s billing address. This deal is only being offered to citizens and permanent residents of Singapore. The launch is a collaboration with Challenger Technologies Limited, a Singapore-based IT products retailer with over 40 stores across Singapore and Malaysia. Customers can now buy a tablet and get a data SIM card at a Challenger store.
With this plan, SingTel is taking the lead in Singapore to offer consumers the flexibility that U.S. operators, as well as many of the European operators, have begun to offer to the more sophisticated consumer. Singapore has the highest smartphone penetration in the world, at 85 percent, and mobile phone penetration has passed the 150 percent milestone. Customers in technologically mature markets no longer want to be locked into contracts that prevent them from taking advantage of the latest technologies, apps and offers. We think this no-contract plan is a good move on the part of SingTel to retain and grow its customer base, and we expect that the other MNOs in Singapore will follow suit.
“Mobile operators that provide services in mature markets with relatively high competition levels have to search for new ways to keep their position on the market and bring in revenue. Very often they develop strategies to enrich their existing offers. Sunrise Switzerland, for example, added a variety of prepaid mobile data plans, making its prepaid portfolio as attractive as its postpaid. SingTel, a key player in the Singapore market, recently launched a postpaid data SIM plan that does not require a contract subscription, a first in its market.”
Beth Teitel, Research Analyst at Tarifica
The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues or to speak with the research team: http://www.tarifica.com/contactus.aspx
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