Telco war gets intense as free switching kicks in

[Qpik]

By Alfred Siew

 

Operators rush to lock in existing customers with discounted deals for bundled services.

 

ELEVEN years after the cellphone market was liberalised, full competition in mobile services arrives today, allowing users to switch telecom operators and hang on to their old phone numbers. Already, customers are reaping the benefits.

 

In the last few weeks, telcos have been trying to coax existing subscribers to remain loyal with discounted deals. And from today, those who want to switch phone operators - to do this, you simply need to go to a telco and tell them you want to keep your existing number - will also be wooed with discounts and cheaper handsets.

 

The rush to get new subscribers began yesterday at the ongoing PC Show bazaar at Suntec City, where SingTel and StarHub dangled free smartphones to tempt those thinking of switching. Something else to look forward to for those going PC Show.

 

StarHub burned the midnight oil too, running a roadshow at Plaza Singapura till 2 this morning to woo new customers.

 

Full number portability, as the latest move is called, has been in the works for years. When the cellphone market was first liberalised in 1997 to allow more operators in addition to SingTel, it was not available.

 

In its stead then was partial portability, a cumbersome process which merely forwarded calls and SMSes to a new number and left most subscribers less than enthusiastic about switching.

 

In 2006, the Infocomm Development Authority, which regulates telecom services here, called for full number portability to foster more competition. And in April, it announced D-Day for this: Friday the 13th.

 

Since then, telcos have been busy coming up with new deals to keep subscribers and attract new ones.

 

Don't expect to get cheaper plans, however. The basic ones are not: The three telcos' most popular ones cost exactly the same, between $25 and $82, and offer the same services. Don't be fooled. All telcos shared the same father.

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Instead, the new deals focus mainly on discounts for bundling - in effect, tempting you to spend more to get bigger discounts. Don't need don't spend.

MobileOne (M1) for instance, is offering discounts of up to 35 per cent for users who sign up for five lines - a boon for families willing to pool their services with one telco. The savings can work out to more than $100 a month. Users can share any unused talk-time with another four family members, which means no wastage.

 

Heavyweights SingTel and StarHub, meanwhile, are going for the triple play. They want users to sign up for their cellphone, broadband and pay-TV services.

Their 'killer application': exclusive content. StarHub is allowing its cable TV and cellphone users to watch English Premier League games on their small screens, and SingTel is likely to follow suit with European Champions League matches next year.

 

Analysts say content, rather than pricing, will likely be the battleground in future. They add that handsets will be another factor. SingTel's exclusive deal to sell Apple's 3G iPhone is one.

 

Cheaper phones are yet another. SingTel and StarHub, for instance, have been spending 35 per cent to 40 per cent more to woo customers, and the bulk of this goes towards subsidising handsets.

 

While things change today, the battle will continue for some time, possibly well into next year, say experts. 'SingTel, for one thing, has a large war chest aimed at keeping its leadership in the market', so subscribers can expect ever better deals, said a financial analyst who declined to be named.

 

The big winners in this fight will be users, and they cannot wait. Manager Jonathon Ho, 33, is practically licking his lips at the prospect.

He said: 'I told my whole family to hold off starting any new contracts until today. We'd be doing some serious scans of the papers for the offers.' Good things comes to those who CAN WAIT. Don't jump now cos you are not Jack or Rose from Titanic.

[Apollo]

Don't expect to get cheaper plans, however. The basic ones are not: The three telcos' most popular ones cost exactly the same, between $25 and $82, and offer the same services. Don't be fooled. All telcos shared the same father.

 

exactly.. everything can b traced to the familee.

[Wesley12]

And izzit applicable even after the road show? Heard they giving many free phones just for switching, of course with contract

[Beei]

No wonder I got a $150 starhub voucher all of a sudden even when my contract is only 5 month old..

 

Same Lao Pek, but different sons.. If son's result no good no good, then father give less allowance..

[Lv3338]

what the outcome of soharto? any chance to happen it here?

[Blackyv]

very unlikely to happen here...

[Slowmo]

some questions to ponder

 

1) how much can u save? 100 or 1000 a year?

2) how much do you exceed the normal packaged times?

3) can you afford to just buy the phone w/o contract?

4) would you be very financially disadvantaged if you don't switch or if you stay?

 

i personally don't see the hoo hah with the offers... some telcos still blood suck at 30 second blocks , some give stupid peak hour timings, some have really bad customer service.

 

 

not very excited with this 'new' change.... feels to me they are like stirring up a storm in a teacup.

[Slowmo]

another gripe is that reporters in Singapore are abusing the word 'war' way too much.

 

Imo, it's not even a playground fight.

[Comfy]

... they still bring down prices one...

[Kingcopa]

Ya lor. so when i read abt the bidding war bet St*rH8b n S*ngt*l over EPL right n S*ngT*l right to broadcast CL, i was like . R they trying to jack up the price

[Slowmo]

we need outside players like AT&T, vodafone and the likes to join the 'competition'....

 

 

simi 'war'... *yawn*

[Kingcopa]

Impossible. Y would they break their own rich bowl

[Gadgeter]

actually their title should be: Telco wayang gets intense as free switching kicks in

[Slowmo]

Thats why it's laughable to mention 'war' and 'competition' in the same sentence when referring to our ISPs and telcos.

[Slowmo]

Title should read: "Telcos wayang to be competitive for the first time in 11 years, after being forced by IDA to have number portable feature."

[Gadgeter]

it is just, left pocket and right pocket.

[Weixiang_2008]

not really wayang for me...

 

i just renew my contract recently with starhub.. with $0, i bought a new Sony Ericsson C702.. this was offset with the voucher which was sent to me... i was a low-end user, with monthly bills ard $30...

 

for me, i got 6 months free subscription, unlimited sms to all teleco subscribers (student plan), 20% off monthly subscription.... my plan is powervalue 100 (student)

 

super worth it for me!

[Mustank]

wahhhhh how come singtel never send any voucher to me