Here's why StarHub is still cheaper than M1, SingTel

StarHub's 4GB plans are 10-40% cheaper.

According to Nomura, similar to peers, StarHub also announced its tiered data pricing plans for 3G and LTE effective September 19th. Its entry level 2GB data plans cost SGD38/mth (promotional price) or SGD49/mth after Dec-2013.

Here's more from Nomura:

These are broadly similar to M1’s and SingTel’s plans we think. StarHub stated that 90% of its customers are unlikely to exceed the new data bundles and it is also offering an upsize option of 1GB for SGD2.14 until Dec-2013 and its excess usage is charged at SGD6.42 per GB vs SGD5.35 for its peers.

Its coverage is currently limited to CBD, Changi Airport and Singapore Expo but it expects to have 50% of the island covered by 4Q12 and nationwide by 2013. This is yet another positive development for the industry but we do not expect a material change in the operating outlook yet. There is some scope for ARPU increase, but the benefit could be more from controlled network usage/ costs.

Handset subsidies are another criticalfactor/ cost for data economics, which is difficult to manage especially as the handset replacement cycle appears to be getting shorter.

Our comparison below is based on current rates. M1 is charging SGD10.7/mth extra for 4G services now, while StarHub is offering 4G for free within a promotional period until Dec-2013; post which, StarHub will begin charging SGD10.7/mth.

SingTel notes that its 4G is currently priced the same as 3G (and hasn’t explicitly provided a date by when this could be revised or the incremental rate it could charge).

For 2GB plans, StarHub is around SGD1-2 cheaper than SingTel (based on current rates) but 25% below M1 (given M1 is already charging for 4G).

For 3GB plans – StarHub is cheaper (implied). Only SingTel and M1 offer a direct 3GB bundle. StarHub doesn’t have an explicit 3GB package; however, when comparing the three telcos based on either upsizing from 2GB or excess data charges for 1GB, StarHub is considerably cheaper by 11-25% to M1 or SingTel within the promotional period.

For 4GB plans, StarHub is 10-40% cheaper. StarHub charges SGD58 vs SGD100 for SingTel (but also offers 200minutes less). M1 doesn’t have explicit 4GB plans, but its 5GB costs SGD109 or every additional GB is SGD5.35. For 12GB plans, there is no significant difference.