M1 attempts to lure data-heavy customers with new mySIM

Subscribers may keep their phones longer than usual.

The telecommunications giant is seeking to gain more ground on its competitors by releasing the postpaid SIM ‘mySIM’ with larger data bundles and cheaper prices, but its success depends on whether or not subscribers are willing to switch operators and upgrade their handsets.

“Bearing in mind Singapore's high smartphone penetration rate, M1's SIM-only plans hinge on the assumption that the majority of the Singapore population already owns one smartphone, and the tendency to upgrade the device with each contract renewal is low,” the report from BMI Research said.

Meanwhile, M1’s aims to use the allure of their flexible data to increase postpaid subscribers, which will remedy a foreseen decrease of their revenue due to the fact that a huge part of their revenue comes from consumers exceeding their data allowances.

“M1's mySIM postpaid plan supports its strategy to target users that require more flexible plans, and grow its postpaid subscription base in that way. The option of having just a 1 month subscription on the new plans will also appeal to a more niche group of users such as non-citizens or frequent travellers, who will be able to enjoy the advantages of a postpaid plan without being locked into a 2 year contract,” the report said.

The release is also viewed by analysts as a defensive strategy executed in anticipation of a new mobile operator in 2016.

“ISP MyRepublic's proposal to offer unlimited data plans if it is granted the licence will disrupt pricing in the mobile market. This will put pressure on the incumbents to reduce data prices as Singaporeans' appetite for data might result in subscribers opting to switch operators,” the report added.