Should I sign up for TPG S$10 for 50GB data?

TPG's Offer

After 1.5 years of offering free mobile service, TPG has decided to charge for its mobile service and throw in a whopping 50GB of mobile data with 300 call out minutes and 10 SMS.

The financial industry is skeptical about the offer. If all 400,000 subscribers signed up, it will only contribute $48m yearly revenue if everyone sign up.  The setup cost of 4G infrastructure is estimated at $160m with a running yearly cost of $1.6m.  TPG is likely to charge more to capture more market shares and boost its revenue.

Is $10 for 50GB worth it?

The picture below depicts what are the choices that current consumers have.

The X-axis is the GB of Mobile Data (The bigger the better)

The Y-axis is the Cost of the Plan (The smaller the better)

The size of the circle depicts the call out minutes (The bigger the better)

So, plans located at the bottom right are the BEST plans.  And there is only 1.

It is the TPG plan which offers 50GB at $10.

At the same cost, the closest competitor is MyRepublic with 6GB of mobile data.

At the same GB, the closest competitor is Gomo's offer at $30.

TPG sets a new standard for value of market in Singapore for postpaid services.

What are the shortcomings of signing up?

1. 4G Phones: TPG provides ONLY 4G network so customer needs a 4G phone to use the service. In fact, the 4G phone must be LTE FDD supporting either 900MHz or 2300MHz.
2. Call out: For calling out, only certain phones with VOLTE+ are supported.  Else, customers must download TPG app for call out.  Well, you can use whatsapp to leave voice message or voice out since you have 50GB.
   
3. Support: There is only one office in Orchard and the alternative avenue of support is by email.
   
4. Network coverage: The biggest drawback is network limitation as TPG is a new network provider and they must lay out 4G network from scratch.  Underground carpark and MRT tunnels are blind spots with no network.  Sometimes, those staying or working at high floors (>30 floors) may not receive any network coverage.  These are not the target segments TPG is going after.

The BEST plan in the market and not for long...

From the chart above, this is the BEST plan in Singapore postpaid sim-only market. None of the competitors (including MVNOs) can match this offer.  So, it is safe to guess that TPG will likely increase the costs of the plan after 31 May 2020 to boost its revenue for profits. This is the same as the free 30 minutes plan offered by Circles.Life to boost its customer base.  Upon reaching its target, Circles.Life terminated the free plan.  We can expect the same execution from TPG.

So what are you waiting for? Go and grab the plan now from TPG online or visit their office:

Address: Orchard Central (181 Orchard Road, #04-28 Orchard Central, Singapore 238896)

Operating Hours: 11.00 am to 9.00 pm

And before I forgot, there is a bonus 1GB of roaming data in Indonesia, India and Philippines.  Sign up early before the offer is gone.  I seriously doubt there will be another Telco coming into Singapore in the next 5 years.

The 3 new mobile plans from MyRepublic

New MyRepublic mobile plans

On 21 Jun 2018, MyRepublic has launched 3 new mobile plans.  They come with the following benefits:

1. 1000 outgoing mins;
2. 1000 outgoing sms;
3. Boundless data (slower speed after limit is reached);
4. Free caller ID;
5. Free local delivery;
6. Free SIM activation;
7. Free incoming calls; and
8. Free incoming sms.

There are 3 plans: Smart (7GB), Mega (12GB) and Xtra (25GB) priced at $35, $55 and $85 respectively.

Smart with Smart 35?

Smart 35 is comparable to most plans offered by other telcos.  At S$35 price point, it is attractive provided you are a phone or sms addict.  For 1000 outgoing calls and 1000 outgoing sms, you pay peanuts to get 10 times of call out time for a small fee of less than $7 compared to Circles Life $28 plan.

Mega 55 is not that big

Mega is the mid-range offering and it has 5GB more for $20.  This is not attractive as Circles life offers only $20 for 20GB.  Therefore, Mega is no big deal.

Xtra 85 has no Extra

Xtra 85 mirrors the older Ultimate plan which was launched earlier for broadband customers.  But for the same features, Ultimate ($80 for 80GB) is an obvious choice compared to Xtra 85 ($85 for 25GB).  It remains a mystery why MyRepublic is launching an inferior plan Xtra 85 creating a cannibalise situation for the same target segment.  So sign up for Ultimate if you can.

Uno is the BEST

Uno is still the best plan offered by MyRepublic with 1GB data but priced only at $8/month.  It enjoys all the features of the 3 new plans but costs only a fraction to enjoy the same benefits.  Sign up for Uno if you are a phone addict.

Best Postpaid Plan in Singapore (Without Contract)

Best Postpaid Plan in Singapore (Without Contract)

The Era of No-Contract Mobile Postpaid Plan

The initial sunk cost (or investment) of setting up telecom infrastructure is high.  In the early days, to promote mass market of mobile phone, telecom operators adopted free phone for a 2-year contract.  In today's context, the strategy of giving free phone is no longer practiced.  Instead, telecom operators twisted to "subsidise" the phone for your 2-year contract.  If you are silly enough to sign up for a free phone, then you are one of those good customers who are "stupid" to pay more for an inferior phone (or $0 phone) at a premium price.

You may challenge: What inferior phone?  My answer is simply you are paying extra (minimum $10/month) for 24 months.  Telecom company has collected $240 over 2 years for the lowest plan.  They have successfully lock you in for 24 months else you will be penalised for breaking the contract.  As long as manufacturers are willing to sell the mobile phone for less than $200, they can sell the phone at cost but their objective to tie you down for 2 years is achieved.  To make higher margins, some phones cost only $50 so they can make high margin if you select an outdated smartphone.  Well, with such high margin, they can afford to throw you some free gifts to sweeten the deal.

If you have a high-end or reasonably solid smartphone, it can last you for 4 to 5 years and there is no need to change a new one after 2 years.  Why should you be paying for another 2 years contract and the penalty of $240?  So telecom companies will give you voucher as high as $500 because you have already paid them $1000 in the last 2 years.  By sacrificing some profits, they are able to secure and lock you in for another 2 years. More good years!

When M1 started offering postpaid plan without contract, others follow reluctantly as many abandoned the postpaid contract after maturity.  It is a wise thing to do because you can choose what you need.  For example, if you only wish to call out, just pay $36.05 for unlimited minutes instead of over $200.  Imagine how much you can save or how much telecom company was earning!  The best part is you have the freedom to jump ship anytime since there is no contract to bind you for 24 months.  Besides choosing a phone which you like that can last for more than 2 years, you must decide which plan is suitable for you?

Look no further, just participate in the survey below and we will send you the best plan to suit your lifestyle with the minimum cost.  Do not trap yourself with the current mindset of 2 years contract and get a new phone.  You should free yourself from the standard S$36 for a 100-min/mth plan and look beyond the free phone and contract.  Communication should be bond free to be enjoyable.

In-Depth: How to select your dream smartphone within your budget?

Guide of selection your dream smartphone

Participate in the guide at the end of this page and find out what you really need.  Read on...

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Are Reviews and Recommendations Good?

There are many reviews on how to select a smartphone in various websites and we wonder yself if there is a need to write this post.  Some are keen on getting the latest iPhone 6 plus because it is the latest hip thing to get.  Some are unwilling to pay extra for a better smartphone and let the customer service representative decide for them for a free phone. Many of them have little knowledge of the smartphones they are buying and willing to try something new.  The customer representative at the counter will likely to introduce some smartphone which they have the most stocks or can give them the most commissions.  Because the customers have no clue of what deals they are getting.  All are zero cost smartphones with different brand names.

These customers do not research.  Even if they research for a smartphone, more often than not, these websites are only promoting the latest phones to attract eyeballs and provide limited models of phones which are sold in the region or country.  With the emergence of XiaoMi as the 3rd largest player in the world market, USA and Europe seldom include XiaoMi or other China phones in their reviews due to standard compatibility and phone availability.

On the other hand, blame not the reviews as customers are blindly following the mainstream.  The recent saga in Sim Lim Square of a Vietnamese factory operator willing to spend 4.5 times his monthly salaries to buy a iPhone 6 for his girlfriend proved that people are willing to pay.  We have seen clueless customers being persuaded to get Nokia phones when they sign up for 2 years contract based on counter recommendation on durability.  When complications arise, the losers are always the customers.  So, we hope this guide can provide an unbiased and fair evaluation of your needs and more importantly, within your budget and means.

Hold your horses, cowboy! We shall not insist that you should buy our ideal smartphone simply because your needs are different from ours.  We simply show you the direction of where you should  go.

Be Honest With Yourself

Let's begin with some basic questions and make sure you pen them down for reference later...

1. Do you really need a smartphone? Why? Write your needs down.
2. What is your budget for a smartphone?
3. Do you have an Operating System (OS) in mind?
4. Do you care about the aesthetic of the smartphone? 
5. Do you have a manufacturer or brand in mind?

These questions primarily dictate what your smartphone should be.  For instance in Question (5), if you have already decided to get iOS, you can only choose from Apple phones.  Instead of getting the latest iPhone, you can based on your budget and consider a second hand phone such as iPhone 4S or iPhone 5S which are significantly cheaper than iPhone 6.  No one can stop you from selling both your kidneys to buy iPhone 6 and iPhone 7 but you may have no kidney to sell for iPhone 8 which may launched in 5 years' time.

Know Your Current Plan

Ask yourself:

1. Are you currently on prepaid or postpaid plan?
2. Do you have a bundle program with your carrier (or telco)?

If you are on a bundle postpaid plan, you are likely to enjoy some discounts for all your products and services.  It is better to stick to your current plan so you can continue to enjoy such discounts unless there is better offer from other carrier.

The X Factors

There are many features in the next generation smartphone.  For each feature, there is a price premium to pay because they are unique selling points to every manufacturers.  How about selecting 5 top features which you badly wanted and compare against those phones in the market.  If they met all the top 5 criteria, your next smartphone is confirmed.  Else, you may have to look at the open market or overseas for your dream phone.

Guide of selection your dream smartphone

Participate in the guide below and know more about what you really need in your next smartphone.  Good luck and have fun!

Should I convert from Post-paid to Pre-paid mobile plan?

Planning for your ideal mobile plan

Many retirees "inherited" the obsolete mobile phones from their children when they upgrade the phones. Since a mobile plan (with a SIM card) is needed to make the old phone come alive, they leave the decision of their mobile plans to their children. Most of their children chose post-paid plan with limited incoming voice calls with no data plan. However, most old folks are wary of making outgoing voice calls because they are not used to the phone and it is chargeable. For some old plans, they are paying more than S$60+ for 300 min outgoing minutes per month. Due to fierce competition over the years, new plans are more competitive at S$25+ for 100 min outgoing. However, many are ignorance of this option when their contract is due. The same applies for students in schools, polytechnics and universities, except their phones are normally smart phones with data plan.
The demand of pre-paid mobile plan is attractive to short-term tourists and our foreign "talents" (aka workers) who rarely use their phone and cannot get credit. The beauty of pre-paid plan lies in the absence of 2-year contract with the telco. This target segment is not demanding of voice mail, text or data plan since their phones are either low-end or obsolete models. So they are compromised to pay a higher price to use pre-paid services.
Stop, read paragraph 2 again. If you believe every word I wrote, then perhaps you need a paradigm shift. Ten years ago, paragraph 2 is politically correct but it is no longer true now. If 50% of Europe is using pre-paid plans, you are a true believer on the myths of using pre-paid plan. Let me tell you why.

Post-paid vs Pre-paid

If a picture paints a thousand words, I hope this table shed lights on the differences.

	Post-Paid	Pre-Paid
Payment mode	After use	Before use
Monthly Bills	Yes	No
Subscription	Yes	No
Contract binding	2 years	None
Free phone bundle	Yes	None
Registration Charge	S$10.70	None
Free incoming voice calls	Yes	Depending on the plans
Free SMS	Yes	Depending on the plans
Free Caller ID	No	Yes
Free Voice Mail	No	Yes
Fee incoming calls	Yes	Depends

 
Yes. That's all for the differences. How about data plan, IDD calls, international roaming? Don't worry. Pre-paid plans cover them and sometimes offer more.
If you are using post-paid, there is no such thing as free outgoing voice call. It has been factored into your month free minutes. That's why you are paying more for 300 or 700 minutes. It is charged at SS$0.16/min if you exceed your allocated free minutes. Many customer service representatives will tell you to choose the highest minutes plan from your maximum usage. So you are choosing 100min/mth plan (S$16 value) if you are using 80min/mth and 300min/mth plan (S$54 value) when you are in fact using 101 min/mth.
Basically, prepaid plan is not restricted by the number of outgoing voice call minutes and number of SMSs. The catch is pay-as-you-use and in fact, more flexible than standard post-paid services. Therefore, get ready for the surprise if you are the frog still hiding in the well.

Pre-paid plans in the market

Being the largest mobile player in Singapore, SingTel has 4 different pre-paid offerings:

• Hi!card (standard prepaid at 8 cents/min during Happy Hour) with top-up options of (15% bonus, S$28, S$30 and S$55)

• Kababayan Card (calling Philippines at 7 cents/min )
• simPATI kangen Card (calling Indonesia at 16-26 cents/min)
• Sawadee Card (calling Thailand at 6 cents/min)

Since we are targeting at Singaporeans who are interested to convert from Post-paid to Pre-paid, cards and top-up options which are targeting for foreigners who wish to make IDD calls will be omitted in our discussion. Hence, we only consider the Hi!card and its top-up options.
Starhub has 2 basic plans – Green (Happy S$128 and Happy Star S$17) and MaxMobile for voice and data plan respectively. Top-up options are Happy (voice) and Happy Stars (data) prepaid. On and off, they introduce some perks to make their pre-paid cards more attractive. Since we are focusing only on voice plan, we shall take MaxMobile out of the equation.
M1 also has 2 pre-paid plans – M Super S$130 and SuperPac. The former targets standard users while SuperPac targets foreigners who live in a different time zone. We shall consider both plans with its top-up options.

Benchmark using a Post-paid plan

For low usage users, we need a benchmark for comparison so we take a standard 100min/mth plan with no data plan at a comparable value of S$25.68 (100 outgoing minutes and 500 SMSs). Over a period of 24 mths, a post-paid plan will cost a subscriber a total of S$616.32. Note that Post-paid plan can receive unlimited incoming call.

	100min/mth	300min/mth
Free outgoing voice minutes	100	300
Free SMS	500	500
Cost for 1 month (S$)	25.68	48.15
Costs over 24 mths (S$)	616.32	1155.60

 

Case studies

For the Pre-paid plan, let make the following presumption for both groups of consumers:

	Old folk	Night shift worker	Businessman
Duration of incoming calls a month (min)	50	75	150
Duration of outgoing calls a month (min)	50	75	100
Average call duration (min)	1	2	3
Calls made during peak period	80%	10%	60%
Calls made during non-peak period	20%	90%	40%
SMS per month	0	500	600

 
A run through the formula reveals the following:

Best plan	Old folks	Monthly bills (S$)		Night shift worker	Monthly bills (S$)		Businessman	Monthly bills (S$)
1	Singtel Hi!Card (S$55)	9.71		Singtel Hi!Card (S$28)	15.96		Singtel Hi!Card (S$28)	32.63
2	Starhub Green	12.75		Starhub Happy Star card (S$17)	18.46		M Card Super S$130	38.75
3	Singtel Hi!Card (15% bonus)	13.25		Hi!Card (S$55)	19.71		Starhub Happy (S$128)	41.58
Post-paid Plan	Standard 100 min/mth	25.68		Standard 300min/mth	48.15		Standard 300min/mth	48.15

 
The results may be surprising for many because 100min/mth plan can be cheaper than S$10/mth. Yes, it happens. By seizing advantages of the off-period period, you are able to make cheap calls thereby reducing the costs of mobile ownership. Either case, we see most pre-paid plans are cheaper than standard post-paid plans if you ignore the free incoming calls. Bear in mind that pre-paid plans are pay-as-you-use so if you have low usage for that month, you can effectively save more. It is a wonderful way of limiting your phone bill.
An excellent example is a night shift worker. Since there is no 200min/mth plan and outgoing voice at 150min/mth, one need to take up the 300min/mth plan as "adviced" by experts. If he/she takes up a pre-paid plan, savings is sizable and even better than a 100min/mth plan. The saving is nearly half of what he is paying for 300min/mth plan. Can you see the beauty?
Even for a businessman with 300min outgoing voice calls, the bill is much cheaper than a standard 300min/mth plan. Yes, it is possible and you can do your own maths.

The balance of the equation

If pre-paid plans are superior in value, why most of us still signing up post-paid plans? The answers are simple. In the beginning, many have no phone and signing a 2-year contract can get a free or discounted phone. Also, we are haunted by the old Pre-paid plans which are unattractive in value as compared to post-paid plans. It may costs twice as much to call out as compared to post-paid plans.
Now, new pre-paid plans are customized for the new market segments to suit the trend. In Europe and USA, pre-paid plans are bundled with phones and some are having free incoming calls (like M1 SuperPac). These pre-paid plans are very attractive as it offers customers good benefits without a contract to tie them down. If they are near to the end of their contract and the phone is working fine, a new pre-paid plan with free incoming call may offer more values to them.
An interesting find is the M1 SuperPac and Starhub Happy Star. They offer data plan and 24-hours free incoming calls so they are in-between pre-paid and post-paid plans. If you really compare the details, they are catered for travellers and adults who are working 9-6pm who cannot answer mobile during this period (ie. Hotel service staffs).
Last but not least, it is important to consider the validity of the card since its last top up. It will make a difference on what is the frequency of top-up. It is crucial if you seldom use the phone. So, how about getting a pre-paid card now?