Mobile users to pay atleast S$5 per extra GB with higher 4G speeds

4G pricing to correct 3G’s too generous data pricing in Singapore, says DBS Vickers.

In June, SingTel lowered the data-caps to 2GB from 12GB. During the 3G era, c.22% of M1’s users exceeded the 2GB limit without paying an extra cent.

According to DBS Vickers, with higher 4G speeds (five times higher than 3G), more users are likely to exceed the 2GB data-cap to end up paying S$5.35 per extra GB. In addition, SingTel will charge S$10.70 per GB for exceeding the data-cap from Jan 2013 onwards.

M1 took it one step further in September and announced that it will charge an additional S$10.70 in subscription fees for 4G versus its 3G ARPU of S$53. StarHub has also put in place higher 4G pricing of an additional S$10.70 for 4G plans from March 31, 2013 onwards when its 4G coverage will be significantly higher. 

StarHub will charge slightly higher S$6.42 per GB for exceeding the data-cap. An additional S$10 per month works out to be 19% of M1’s, 14% of StarHub’s and 12% of SingTel’s reported postpaid ARPUs.