SINGAPORE (May 23): Maybank Kim Eng is keeping Singapore’s three telco incumbents at “hold” as it awaits how they will counteract Circles.Life newly launched free wireless plan that offers 1GB of monthly data, 30 minutes of voice and 10 SMS with no “hidden fees” or contracts.
In a Tuesday report, Maybank analyst Luis Hilado says Circles’ market segmentation that started with $28/month 6GB plans and later $20/month for an additional 20GB and $3/day of unlimited data options has morphed plans for a new segment dubbed “Less-wireless-data-savvy consumers”.
Hilado thinks the pricing structure of the new plan can help Circles avoid cannibalisation and preserve its existing subscriber revenue. Although customers on the 6GB plan are not likely to migrate to its zero plan as they would have to shell out $32 rather than $28, it may not preclude them from getting new SIMs.
