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Telcos introduce new technologies, price packages to win market share

Channel NewsAsia Online
15 December 2006

Telcos introduce new technologies, price packages to win market share


Nearly every person living in Singapore has a mobile phone. Despite the mobile penetration rate hitting 98.4 per cent, analysts argue that the saturated telecom market still has room to grow.

Telcos can roll out more attractive price plans and introduce newer technologies to encourage users to switch providers. 

Analysts say competition would most likely intensify in the form of better content and applications, and bundling packages at attractive prices. And competition is not just going to be brewing in Singapore. 

In the year ahead, local players could be facing some new competition. Leon Perera, Group Managing Director, Spire Research & Consulting, said, “On the regional level, SingTel’s aspiration to position itself as the leading regional telco player is going to be challenged. Other companies such as TM and Hutchison have certainly displayed ambitions in that direction, so I think it will really come down to their ability to execute in individual markets.”

“Going forward, the competition will be tough,” adds Perera. “The attention is focused on 3G services and clearly the rate of growth for retail and consumer adaptation for 3G services will be slower than some analysts have predicted and some of the telcos have perhaps expected. We expect that there will be growth potential in Singapore, but it will mid-term rather than short-term potential.”

Industry observers say regional telco players should capitalise on their competitive advantage, and focus on key markets where they can attain lead industry position.

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