No extra charge for 4G add-on for mobile customers on contract
PUBLISHED ONApril 24, 2014 12:53 AMByIrene Tham
SINGAPORE - All three telcos have decided not to charge customers on contracts for their 4G add-on services after the industry regulator stepped in to investigate the matter.
It came after StarHub announced plans last Tuesday to start charging for the 4G add-on, which it currently offers for free - as do SingTel and M1. It was planning to charge most of its 4G customers $2.14 a month from June 1 for the add-on service.
An online poll of almost 1,000 people by The Straits Times on Friday revealed that close to 90 per cent of all mobile users thought that they had already bought a 4G mobile plan and did not know that the 4G service was merely an extra with a 3G plan.
In a statement last evening, the Infocomm Development Authority (IDA) said "there is significant consumer confusion over the service plans they signed up for".
The IDA also noted that the mobile operators "could have done more at points-of-sale and customer interface channels" to communicate their 4G position to subscribers.
"Telecom operators should not change prices midway that affect customers with minimum- term contracts, if they were not clear to customers upfront what those price changes might be."
Few other countries operate such a system. The free add-on is valid for a limited period, after which the usual price of $10.70 a month may kick in.
In a letter to The Straits Times Forum published on Tuesday, reader Albert Wong Kwan Wei questioned how all three telcos arrived at $10.70, suggesting that a fourth telco be allowed to operate here to keep prices competitive.
"Our population has increased over the years, and it may be time to open the market to more competitors," he wrote.
In a brief post on its Facebook account, Starhub said: "StarHub values your feedback. We understand your concerns about the new promotional rate for “4G Speed Boost” and, after careful consideration, we are further extending the free promotion to existing customers of our SmartSurf Lite/Value/Premium/Elite price plans till the end of their contracts."
Two hours later, IDA posted the following statement on Facebook:
"In response to the recent announcement by StarHub to start charging SmartSurf customers who use their 4G service $2.14 a month from June 1, the Infocomm Development Authority (IDA) has investigated the matter.
"Today, 4G services do not support voice and SMS services; these services are delivered over the 3G network. IDA understands that M1, SingTel and StarHub have offered 4G services as part of their mobile data bundle promotion and have positioned them as value added services ("VAS") in their promotional materials and service terms and conditions.
"However, IDA notes that there is significant consumer confusion over the service plans they signed up for. Under the Telecoms Competition Code, telecoms operators must communicate key terms and conditions to customers prior to service sign-up. Telecoms operators should not change prices mid-way that affect customers with minimum term contracts, if they were not clear to customers upfront what those price changes might be.
"IDA agrees that the mobile operators could have been done more at points-of-sale and customer interface channels to communicate their 4G VAS position to subscribers. IDA has clarified the matter with the three operators. All the operators have since decided not to change 4G service prices for existing customers with minimum term contracts."
This article by The Straits Times was published in MyPaper, a free, bilingual newspaper published by Singapore Press Holdings.
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