- Our mobile survey of more than 125 respondents in Singapore reflects user preference for mobile spending reductions and a favourable perception of low-cost competitors (Simba/MVNOs/digital brands) driving continuous user migration to them.
- Simba’s 1HFY25 results affirm this as it gained market share at the cost of incumbents both in mobile and fixed broadband.
SG mobile survey: Down-trading here to stay.
- - Read this at SGinvestors.io -
- 47% of the survey respondents are open to switching to low-cost competitors (MVNOs/Simba) compared to 23% who don’t want to switch;
- Of the survey respondents who want to switch, 37% are attracted by lower pricing followed by 16% driven by attractive roaming plans and no contract lock-in;
- Lower pricing (24%) is an equal driver on par with network quality (24%) while selecting an operator while a good brand reputation (18%) or service quality (6%) has lower bearing;
- - Read this at SGinvestors.io -
Simba continues to inflict pain.
- Simba posted its maiden positive earnings in 1HFY25 on strong c31% y-o-y/16% q-o-q mobile revenue growth (-3% y-o-y drop for incumbents) while maintaining a healthy 45% EBITDA margin. It also added 11k home broadband subs. Simba’s mobile revenue market share is estimated at 6% (up 1.5ppt y-o-y) and management wants to continue to grow market share. This suggests it is likely to keep its pricing competitive to gain market share.
- A competitive Simba is forcing incumbents to come up with competitive pricing through their digital brands or through MVNOs, which in turn is cannibalising their revenues. Our channel checks showed S$8-10 plans offering 88-300GB data and 2-10GB international roaming, implying downward ARPU risk to postpaid incumbent ARPUs at S$30.
Starhub at risk; Singtel remains relatively shielded.
- Read more at SGinvestors.io.
