Here’s why incumbent telcos are unfazed by MyRepublic’s unlimited mobile data plan

Its current subscriber base is very small.

MyRepublic recently came out with a headline-grabbing offer: it will offer a year of free subscription to an unlimited mobile data plan if it succeeds in its quest to become Singapore's 4th telco.

Although the offer sounds tempting, analysts from Barclays note that incumbents are unlikely to be substantially threatened by the deal.

Barclays said that MyRepublic’s move is not entirely new in the sense that all three incumbents currently offer free data usage with their broadband offers, although free data is capped at 1GB.

MyRepublic’s offer also made no mention of voice services. The company also has a very small subscriber base at roughly 35,000 to 40,000 users.

“Market disruption risk from new competition appears lower but remains an overhang until dispelled. Potential competition is 18 months away and the capital commitment requirements for a new entrant appear significant – whether this will interest new entrants eventually or whether they have any impact on market dynamics remains to be seen,” Barclays said.