Is StarHub phasing out its unlimited data plans too?

M1 is phasing out its unlimited data plans but StarHub is quick to end speculation that it will follow suit, at least not soon.

StarHub however hints of considering to review current pricing plans in line with a growing trend on the usage of data.

“Globally, mobile operators expect the usage of data to grow with the rising popularity of smartphones and tablets among consumers. In view of this trend, Singapore operators may have to review current pricing plans and consider introducing usage-based data pricing to ensure that network quality for their customers remains optimal,” Joanna Chan, StarHub’s Vice President of Personal Solutions told Singapore Business Review.

In the meantime, Ms. Chan said that there is currently no change for their existing offerings.

M1 announced last week that it is phasing out its unlimited data plans that cost its consumers $15.69-$59.40 for 1-21 Mbps. SingTel does not offer unlimited data plans while analysts expect StarHub to follow suit to address the challenge of peak hour congestion which lowers broadband speeds.

According to DBS Vickers Securities, phasing out unlimited data plans will be positive for telco firms’ free cash flows as it will spare them from spending excessive capex on non-revenue generating consumers.

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