Telcos expected to package services creatively as full number portability kicks in
Telcos expected to package services creatively as full number portability kicks in
By Rachel Kelly, Channel NewsAsia | Posted: 15 April 2008 2241 hrs
SINGAPORE: Singapore’s mobile subscribers can expect the three operators to become more creative in bundling their services as full number portability kicks in, allowing phone users to take their numbers with them when switching service providers.
Analysts said they do not see a rush to switch operators. Still, they expect the telcos to be spending more on efforts to protect their market share. While this means greater convenience to the consumer it could also lead to higher costs.
Kenneth Liew, Senior Market Analyst, IDC’s Asia/Pacific Communications Research, said: “I think there will be some cost involved in supporting the number portability system - so the cost will most probably be borne by both the consumers and the service providers.
“But the service providers will want to keep costs low, I mean keep the prices low, so (as) to attract more of the subscribers from the other telcos over to them.”
Market watchers said one key strategy for Singapore’s three big players to protect their turf will be to create product bundles and provide even better options for consumers.
Krishna Baidya, Industry Analyst of Frost & Sullivan, said: “I wouldn’t really expect the churn rate to jump a lot higher in the market because in the Singapore market, a lot of post-paid customers are already under contract, so they are under obligation to remain with the service provider for a while.
“What I would think this whole thing is going to do is if one of the operators starts doing something, then others will have to follow.”
SingTel and StarHub have already upped the ante by offering bundled services for mobile, Internet and pay-TV.
M1 is not able to add pay-TV into its mix but it is fighting back with new service plans by promising new benefits for subscribers.
Khoo Chen Hsung, Vice President, CIMB GK Research, said: “Now M1 is the only one that is in a more tricky situation because they don’t have that option and they will have to go head on and compete with SingTel.
“So net impact for SingTel, I imagine that it will be flat to maybe slightly negative, simply because they have the largest customer base out there for the mobile.
“For StarHub, it will be neutral with a slight upside bias because of its small customer base. And for M1, I think the bias will probably be more to the downside.”
Currently, there are about 2.7 million post-paid mobile users in Singapore, the majority of whom have signed up for contracts of up to two years.
Therefore, the telcos are quite positive that when full number portability kicks in, there will not be a rush to switch service providers. - CNA/vm
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Posted on April 15th, 2008 under Singapore News |
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