M1's service revenue could contract by 10% by 2021

The entry of TPG in the telco market could be one of the reasons.

TPG's entry in the telco market might spell a loss especially in service revenues of incumbents like M1.

According to DBS Group Research analyst Sachin Mittal, M1's service revenues will contract by 10% in 2022, as TPG and MyRepublic potential new ventures capture 5.5% of the revenue market.

However, Mittal noted that in order to defend its market share, M1 introduced SIM-only plans in March 2016 to attract customers in the lower-end market.

"In addition, M1, along with other telcos, increased the data allowances for their data plans in early 2016. This has reduced the effective data pricing for M1, resulting in average revenue per user suppression," Mittal furthered.