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Regulator ... the Promoter

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VoicenData Bureau
New Update

"More choices, better services, and cheaper prices–that just

about sums up how satisfied users of handphones and pagers feel since competition was

introduced in Singapore on 1 April 1997." These were some of the findings of a mobile

phone and paging services survey which was conducted between December 1997 and February

this year and reported in a trend-setter newsletter VISTAS brought about by

Telecommunication Authority of Singapore (TAS), the national policy maker, regulator, and

promoter of telecommunications and post in Singapore.

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The survey was based on a total of 1,000 face-to-face interviews

conducted with mobile phone users of both SingTel Mobile and MobileOne (M1), on their

level of satisfaction with quality, pricing and range of mobile phone support

services/applications in the market. The survey was also aimed at assessing users’

awareness of TAS.

Results of Singapore Mobile Survey

Mobile Phone Services

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On the whole, services were rated good or excellent by 78 percent of

mobile phone users, with majority of users being satisfied with the current service

activation performance of the operators. About 27 percent had service activation within

four hours upon application.

background="fmc-1.gif">

bgcolor="#000000" valign="top">Key

Findings of the Survey
face="Arial" size="1">Monthly expenditure



(in Singapore dollars)
Percentage

of



Respondents
Monthly

Airtime



Usage (minutes)
Percentage

of



Respondents
$25

or less
3.2 30

min or less
0.8 $26-50 15.6 31-100

min
19.6 $51-100 38.1 101-300

min
49.9 $101-150 20.8 301-400

min
8.1 $151-200 9.7 401

min or more
18.7 $200

or more
12.6 color="#000000"> ExperienceÂ





with Mobile
Percentage

of



Respondents
color="#000000"> 1

year or less
45.7 color="#000000"> 1-2

years
25.6 color="#000000"> 3

years or more
28.7

A great majority—80 percent of

respondents—gave good or excellent ratings for the coverage and quality of mobile

phone services in Singapore. More than 90 percent gave good or excellent ratings for

indoor coverage within and outside the Central Business District, while 81 percent gave

similar ratings for outdoor coverage. As for clarity of voice reception, 90 percent felt

that the voice quality of calls generated within Singapore was good or excellent. About 89

percent also found the line/network availability to be good or excellent.

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About half the users said mobile-to-land calls were set

up within five seconds. There was also a great improvement in curbing the number of

dropped calls, with 80 percent of users reporting that they did not have any bad

experiences of dropped calls.

Tariffs

About two in three respondents felt that tariffs were

reasonable or not expensive. However, local airtime charges are still deemed as expensive

by respondents.

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Choice of Value-added Services

SingTel Mobile and M1 have introduced a wide range of

value-added services to attract subscribers. Apart from overseas roaming, other services

include voice mail, fax mail, speech dialing, Short Messaging Service (SMS), conference

calls, a stock alert service, and numerous innovative pricing plans. SingTel Mobile has

introduced SpeechDial, where voice recognition technology is used to make a call; Single

Number Service which provides subscribers with just one contact number in place of various

telephone, handphone, and fax numbers; and InforDial information service. SingTel Mobile

now has roaming in 66 countries through over 100 operators. M1 covers 54 countries.

alt="https://img-cdn.thepublive.com/filters:format(webp)/vnd/media/post_attachments/c0ddf3c911031ef8e6775efb00dab660e7bfb0123fa6cfbf4c663ddbf0e3ee3e.gif (7535 bytes)" align="right" hspace="4" vspace="4">Services such as call

waiting, call transfer, call baring, and voicemail were the most commonly used value-added

services, and nearly three-quarters of respondents found the product offerings useful.

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Billing and Customer Support

Both mobile phone operators fared well in terms of

billing services, in areas such as accuracy, clarity of information, and ease of

understanding.

Role of TAS

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There was a high level of awareness about the role of

TAS in introducing competition in the mobile phone market, with 81 percent of mobile phone

users being aware that TAS was responsible for market liberalization.

Targeting the Youth Market

As equipment and service prices come down, mobile phones

(and pagers) are attracting a wider audience beyond mainstream business users. That, in

turn, is leading to more aesthetic designs, and the emergence of customized

"lifestyle" mobile phones, designed to project a trendy image.

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"Subscribers are getting younger," said Neil

Montefiore, M1’s CEO in VISTAS. "The mobile phone is also increasingly

being used socially rather than for business only. Saturation point for mobile phones is

probably about 50 percent and the market has some way to go," he said. (The paging

market is also expected to approach



saturation point over the next 12 to 18 months with a market penetration rate of 50-60
percent.)

Features and functionality are important, say

manufacturers, but so are design and image. So while new GSM phones can offer up to eight

hours talk time, plus calendars, diaries, alarm clocks and schedulers, and SMS, some

models come with colour-changing panels to match your clothes, or hardware to fit the

shape of your face, and software to match your lifestyle profile. Others look to clamshell

designs, hands-free in-car operation, dual batteries and optional directional

micro-phones, and the direction is towards lighter and smaller phones—anywhere from

100 to 200 grams.

Comments from some of the other important players:

"Increasingly, consumers are becoming more style and fashion conscious. Their

purchase decision is based on personal taste and preferences, including the colour,

design, and shape elements. Replacement market or second time buyers, for instance, are

more aware of the mobile phone as a personal item, an extension of their personalities.

They tend to expect phones which are personalized to their needs in all

aspects—technology, features, and design."

"A mobile phone is a personal consumer product with

emotional attachments. Aesthetic appeal through colour and design plays a large part in

the consumer’s purchase and usage decision. Performance and reliability are more

important consumer considerations than phone features and functionality."

Determined to Make Success of Liberalization SIZE="2" COLOR="#000000">

For TAS, the dramatic rise in mobile communication penetration rates

underscores the success of the liberalization of the market last year, and points

encouragingly towards an even more open future.

As Singapore becomes the first country to approach the present enviable

saturation barrier of 50 percent, this experience will be worth watching closely at least

by the Indian metro operators.

Liberalization has reaped benefits not only for the new competitor

which has been very successful but also, SingTel has received benefits and growth, by

becoming more competitive and therefore being able to compete in regional markets. SIZE="4" COLOR="#016077">

Regulator and Market Promotion

Going by the enthusiasm with which Indian market—the operators as

well as their distribution channels—has received the new TRAI mobile tariff proposals

indicate how much the market looks up to the Regulator for its catalytic role in the

market promotion—more so as the mobile becomes more of a productivity and security

tool.

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