9 Dec
2009
When M1 and Starhub first announced their price plans for the iPhones on Monday, the Mobile Marketing Association (Asia Pacific) created this Excel spreadsheet on Google Documents to facilitate conversations and provide a comparison chart for all existing iPhone plans and offerings by the three Telcos in Singapore.
SingTel, having been the exclusive carrier of the iPhone since it first came to Singapore in 2008, has been under a lot of pressure to match its offerings, namely the bundled data, as well as the excess data usage bill cap. And it did, of course.
While everyone calls this the 'iPhone Price War', I really think it should be termed the 'iPhone data war' instead. Neither SingTel, Starhub or M1 have, to date, reduced the price of their iPhone plans' subscription fees. Instead, all they have been doing is to increase the amount of bundled data for each plan. It's all a marketing gimmick. It looks as if they are offering you more value for your plan, but in reality (and I say this after being a user of unlimited mobile broadband for the last 2 years), none of us really use up the full 1GB in our basic mobile broadband plans. But, I digress.
M1, offering tariff rebates to existing SingTel iFlexi plan subscribers, are trying their hardest to get SingTel customers to jump ship (that is to say, break their contracts). However, the M1 tariff rebates apply only to iPhone owners who are subscribed to iFlexi plans, and those who have 6 months or less left on their SingTel contracts.
With the 3 Telcos fighting to offer more and more to existing or prospective customers, the war has just begun. Judging from the current situation, I think it would be best to wait out the first weekend, for those who are planning to get an iPhone from either of the 3 telcos.
Here's what may happen, in my opinion:
- Customers of existing VAS Broadband on Mobile may see telcos offering higher bundled data for their mobile plans, as there have been outraged cries from existing customers under contract of regular 3G mobile/data plans, to close in on the gap. (Currently, BBOM subscribers get 1GB on their basic BBOM plans at $9.90 per month, while new iPhone plan subscribers get 12GB bundled data)
- With M1 offering tariff rebates for existing iPhone owners to switch operators, Starhub may do the same. And who is to say that SingTel will not fight back to keep its customers by offering more value with its iFlexi plans?
And of course, with the Telcos offering more bundled data now, I think people will be wont to abusing it, and using their phone for Internet tethering (connecting your phone to a computer for internet connection) to download movies, music, etc. With the existing infrastructure, I really wonder if this bundled data war is a good idea.
M1 customers have been the loudest in complaining about its data connectivity and speed, while I've heard SingTel customers and Starhub customers say that the speed is drastically reduced during hours between 6pm to 10pm daily.
If the Telcos do not do something about this data situation at the moment, what may happen is that we will all end up with mobile broadband connections that are slow and inefficient, and the Telcos will have created this whole huge mess of having to answer to unhappy customers.