Wednesday, October 22, 2008

Would you make the switch (Singtel vs Starhub)

This is going to be a first for me, though it is a discussion on 'personal' issue, it is seen through the lens of 'engaged mastery'.

Due to the recent announcement of the technical recession, several issues have been raised and one of which is the increase in fixed-line telephone subscription and call charges from January 1, 2009. To be fair, Singtel states that it has withheld any increase in charges for the last 18 years.

With regards to whether the hike should be effected now, I think it depends on whose perspective you view the issue from. For instance, as a Singtel shareholder, one would ask "why haven't the charges been revised until now?"

If from the perspective of the consumer, one might ask "if Singtel can not revise their charges for the last 18 years, why now especially that we are in a technical recession?"

With that, we will stop our discussion here about the price hike and instead focus on the comparison of a Singtel line and a Starhub digital voice.

Based on Singtel's information on the revision of the subscription and call charges, here's the facts of the increase. The $10 increase per annum works out to a 10 percent increase of the subscription ($107/year to $117.70/year). Singtel shows it is an increase of 83 cents a month, which if expressed in terms of percentage, it is still an 10 percent increase.

As for call charges, the increase is from 0.7 cents to 0.8 cents; or a 14.3 percent increase. Of course this depends on whether you are calling during the peak or off-peak hours (there is a slight change in the definition of peak and off-peak but it has little significant impact on the revision).

To entice customers to save the trees and make payments promptly (through GIRO); Singtel is offering a one-off rebate of $10 which works out to the entire year's subscription price hike. So, there's some consolation here.

A check with Starhub reveals that it is offering free Digital Voice service to anyone who is (1) a Maxonline or Cable TV subscriber and (2) porting their current fixed-line phone over to Starhub. It also offers free unlimited calls both in-coming and out-coming (valid till 31 Dec 2010) and free monthly subscription (valid till 31 Dec 2010). Based on Starhub's website, for non Maxonline or Cable TV subscribers the monthly subscription would be approximately $9.80 (before GST), which is some 18 percent higher than Singtel's fixed-line monthly subscription. Of course there is a one-off $89.88 fee for its hardware should you decide not to port your phone number.

Just like to ask my friends two questions:

(1) With these basic costs comparison, would you make the switch (that is if you haven't already).

(2) If you are already using Starhub Digital Voice, are you able to use it (a) for faxing purposes and (b) with multiple handsets?

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