SINGAPORE: Industry watchers said the telco sector is poised for greater competition, following SingTel's announcement that it has signed an agreement to bring the iPhone into Singapore.

They said the timing is crucial as mobile number portability (MNP) is set to kick in next month, allowing subscribers to keep their numbers even when switching service operators.

Aloysius Choong, Research Manager, Personal Systems, IDC Asia Pacific, said: "For SingTel, it comes at a great time as MNP is expected to be launched next month, which means they are in a pole position not only in ensuring customer loyalty, but also in gaining some new customers from their competing operators, M1 and StarHub."

Parallel importers have been selling the iPhone in the grey market for some time now, but SingTel's deal means that any iPhone sold in its shops will be backed by warranty.

Some industry watchers said this will intensify competition at a time when telcos are already ringing out promotions to keep their customers.

"What that means is that operators are looking to push out more promotions to retain customers, to try to win customers during that period of time. Customers will benefit from having more and more discounts on their devices over the short term. So (this) will really intensify the competition," said Mr Choong.

As SingTel already has a market share of more than 40 percent, analysts said having the iPhone may not result in a big switch of subscribers from M1 or StarHub. But the value is found in the potential increase in data usage among its customers.

Krishna Baidya, Industry Analyst, Frost & Sullivan, said: "I think SingTel is looking at an increase of data usage from their subscribers, and that's how it is going to gain from this relationship.

"What we have noticed in the US for AT&T is that there has been a massive increase in data usage from their subscribers, and SingTel is probably thinking of replicating (the phenomenon)."

The iPhone was first released in the US in June 2007. It will make its way to Singapore later this year.


- CNA/so