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Telcos must brace themselves for pricier handsets

Singapore Business Review
Telcos must brace themselves for pricier handsets

This is due to the launch of iPhone 8 and Samsung Galaxy Note 8.

Singapore telcos would have to brace for higher subscriber acquisition and handset costs in the remaining months of the year with the launch of iPhone 8 and Samsung Galaxy Note 8.

According to RHB, the telcos would look to defend their mobile service revenues and lock in subscribers ahead of TPG's entry in 2018.

"Although SIM-only plans remain popular, we gather from the telcos that handset-bundled/contractual plans are still very much preferred. This supports the good recontracting activities in the market, with the telcos capitalising on the momentum to upsell data add-ons to subscribers," RHB said.

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Of the three telcos, M1’s subscriber acquisition costs jumped the most in the first half of the year at 15% YoY.



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