Is M1 hurt by not joining the pay-TV bandwagon?

Its innovative new services are big factors.

M1's lack of a pay-TV service offering seems questionable, being one of Singapore’s incumbent telcos. However, analysts say its lack thereof is not a handicap, as it could easily fill the pay-TV gap with the bundling of multiple services and multiple mobile lines.

According to analysts from UOB Kay Hian, even though it lacks in pay-TV offerings, M1 continues to distance itself from its competitors such as Data Passport and mySIM.

"To date, M1 has garnered a subscriber base of 114,000, representing a market share of 9.7% for fixed broadband. 90% of M1’s fibre broadband subscribers also use M1 for mobile services," UOB Kay Hian said.

Meanwhile, its Data Passport service entices Singaporeans who love to travel overseas without worrying about incurring hefty roaming charges. Its mySIM post-paid plans also rake in more customers who prefer to buy their own smartphones.

Analysts also added that M1 has reason to hope for the lack of a fourth mobile operator in the market.

"M1 provides attractive free cash flow yield of 6.3% and would rebound the strongest in the event that we do not have a fourth mobile operator," UOB Kay Hian said.
 

Join Singapore Business Review community
Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.