M1 lags SingTel, StarHub in adoption rate of postpaid users

20% rate isn't good enough.

According to CIMB, they expect the strong take-up of tiered data plans to benefit the Singapore telcos. During 1Q13, the adoption rate of tiered data plans take-ups (postpaid users) jumped 6-7% pts qoq for M1 (now 20%) and SingTel (23%).

CIMB also said that StarHub’s postpaid users have an adoption rate of 24%. The underlying trend is consumers upgrading their handsets to gain access to 4G/LTE services.

"Based on the current run-rate, our assumption of a 35% adoption rate by end-2013 looks conservative. Importantly, about 10% of users on tiered plans exceed their monthly quota, implying that they are likely to upgrade to a higher plan," CIMB said.

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