M1

M1: is moving to tiered data pricing plans (entry evel plans now start at 2GB vs 12GB previously for new customers and re-contracts), and is also charging $11 more for 4G (vs SingTel which charges the same price), wef 15 Sep. Vs SingTel, M1’s 2GB and 3GB plans (for 4G) are around 15-25% more expensive (on per GB basis), but offer more free minutes. M1’s 12GB plans are priced similarly at $205-209/mth, as are excess data usage charges at $5.35 per GB. M1’s re-contracting customers will be given an additional 1GB data allowance. Nomura sees scope for some ARPU uplift, but believes it may not be that material. 78% of M1’s customers use less than 2GB and 93% use less than 5GB. M1’s reported ARPU have ranged between $60 - 65 for the past two years now. Nevertheless the house notes that using 4G launch as a repricing catalyst is a positive step for the industry – especially as iPhone-5 is expected to be launched next week (unclear on Singapore launch date) and there are again rising concerns on its impact on subsidies/ margins. Nomura maintains its Buy call on M1 with TP $2.96.