Irene Tham, Asia News Network (The Straits Times), Singapore | Business | Tue, June 05 2012, 6:58 AM
SingTel customers will no longer enjoy the generous data downloads that come with their smartphone plans.
SingTel customers will no longer enjoy the generous data downloads that come with their smartphone plans.
The move comes as telcos seek to cope with surging mobile data traffic which slows down connections for users.
From July 1, SingTel will slash the cap on free mobile data use from the current 12GB to as low as 2GB. For its premium plan, the cap will also be reduced to 12GB.
The change comes even as SingTel launches its fourth-generation, or 4G, mobile services on Tuesday, offering about four times faster surfing for smartphone users.
The revised cap on data downloads will apply to both 3G and 4G smartphone customers for all new and renewed subscriptions.
Subscribers will have to pay for what they use based on new 2GB, 3GB, 4GB and 12GB data tiers.
Every extra 2KB of data used will cost an additional one cent – or S$5.35 (US$4.15) per GB – capped at S$94 per month.
At present, those who exceed their 12GB limit pay S$2.76 per MB, capped at only S$30.
Singapore's largest telco, which has 3.58 million subscribers, said that 90 percent of its customers will not have to pay more under its new pricing.
When contacted, StarHub said it will also remove its 12GB data cap “in the near future” for all new customers and those renewing their smartphone contracts.
Customers can choose from data bundles of 1GB to 5GB, with excess usage capped at S$30.
M1 declined to reveal its plans.
Explaining SingTel's move, Yuen Kuan Moon, who oversees its consumer business here, said that the telco found 10 percent of its subscribers accounting for 64 percent of its network traffic, slowing the network down for all other users.
These data hogs log on to the network for a long time, for bandwidth-intensive tasks such as downloading videos.
The bulk of the remaining 90 percent, however, use less than 2GB of data every month, he said.
The move is aimed at moderating mobile data use – which has led to a whopping 62 percent growth in data traffic yearly since 2010, he added.
If data volume is unchecked, “all our network investments will be channeled to the 10 percent who are heavy users”, he said.
Another upside is SingTel will be able to keep a lid on the prices of its smartphone plans despite rising network costs.
Prices for its plans remain unchanged at S$39.90 to S$205 although the telco has spent some S$2 billion to upgrade its mobile and fixed networks over the past three years.
StarHub also pointed to the need to manage data traffic. Said Cassie Fong, the telco's senior manager of corporate communications: “In this era of data explosion, it is necessary for mobile operators to rationalize and bundle their data products right to better manage finite network resources so as to ensure network quality for customers.”
Analysts say the move away from generous data plans is a foregone conclusion as surging mobile data traffic stresses telcos' networks.
“Network congestion is increasingly becoming a major concern, and it is impacting user experience,” said Foong King Yew, research vice-president for communications at market research firm Gartner.
In the past two years, telcos like Verizon Wireless, AT&T and T-Mobile in the United States have ended the option for customers to consume unlimited data on their mobile phones without paying additional fees.
This, however, means bad news for some consumers.
Businessman Chee Kwok Liang, 36, said the move is a 'step back' for consumers – especially those on the basic plans – as their free data bundles will shrink by more than 80 percent overnight.
Business development director Aaron Koh, 35, said because new smartphone apps are being launched every now and then, he expects his monthly usage, which peaks at 3GB, to increase over time. “Tiering means I will need to pay more next time.”
