M1 doubles charges for excess mobile data

MOBILE operator M1 has joined SingTel and StarHub in raising rates for excess mobile data use, in the latest demonstration that data is king.

M1 customers will have to pay twice as much if they use more than their data bundle allows.

The new rate of $10.70 for each gigabyte (GB), capped at $188.32 a month, will kick in from next month. Currently, the telco charges $5.35 per GB, capped at $94.16 a month.

The telco began informing customers about the new rates at the start of this month.

The increase will immediately affect more than a quarter of M1's one million-plus post-paid customers as they are on tiered plans, which start from data bundles as low as 2GB.

"A small number" of them exceed their monthly bundles, an M1 spokesman said.

The excess data rate increase comes as telcos shift their business focus from voice calls to data to boost their revenues.

From September last year, local telcos stopped offering generous 12GB data bundles to new customer sign-ups and those who renew their contracts.

SingTel was the first to end its promotional excess data rates in September this year. Since then, its customers have been paying twice as much for exceeding their data bundle - at $10.70 per GB, capped at $188.32 a month.

StarHub will also increase data rates to $8.56 per GB, capped at $85.60 a month, from next month. It currently charges $6.42 per GB of excess data used, capped at $64.20 a month.

"Data consumption is growing exponentially," said Forrester telco analyst Clement Teo. "The rate increase is inevitable as telcos begin to regulate user behaviour to improve operational costs."

The measure seems to be working, with users beginning to monitor their data use.

Businessman Harry Chew, 43, will be using public Wi-Fi networks whenever possible to avoid exceeding his 2GB limit. "If I had known I would lose my 12GB unlimited plan when I renewed my contract, I would not have done it," he said.

From next month, M1 will also be imposing a minimum one-minute charge of 16.05 cents for all outgoing mobile voice calls, in line with its rivals SingTel and StarHub.

The 0.2675 cent per second rate - unchanged from before - will kick in after the first minute. The change will affect only its post-paid customers.

In May, StarHub was criticised by mobile users after it switched to this method of billing. It had been charging on a per-second basis for 13 years prior to the switch.

SingTel has always had the minimum one-minute charge billing structure. The first minute costs 16.05 cents, after which, customers are charged in blocks of six seconds.

itham@sph.com.sg

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