For the first of Singapore's networks to launch 3G services, the news must have been sweet. MobileOne (M1) ended 2005 by announcing that it had gained 60,000 subscribers -- a shade more than StarHub, and 5,000 more than market leader SingTel.
For M1, the news could not have come at a better time. The network is often seen to lag its bigger rivals, despite a solid 30 per cent market share. Undoubtedly, its relatively limited product offering contributes to this perception; while SingTel and StarHub spent much of last year launching big-budget multimedia productions on behalf of the various services they offer, M1 contented itself with a wacky 'flash-mobbing' spot for its main thematic drive.
For the first six months of 2005, M1 adspend topped both StarHub and SingTel, according to Nielsen Media Re-search. However, the fact that it is up against competitors that offer a much larger array of products clearly contributes to a smaller share of mind.
Given its surprising 3G acquisition performance, however, perhaps it is M1 that is having the last laugh. The company recently restructured its marketing department, splitting it into three divisions -- enterprise, consumer and brand -- a move observers have lauded. From a broader perspective, much of the telco marketing communications over the past few years has centred around product, rather than consumer values. As one source notes, "What all of them have been doing over the last two years has really been about product, and everybody took a holiday from value-based advertising. They were leading with the product because they needed to broaden usage patterns."
That 'holiday' could yet end, an increasingly likely scenario as telcos struggle to strengthen their bonds with a fickle consumer base. For M1, this could be welcome. Previous brand campaigns have seen the telco stake out a differentiated platform around its 'One life. Live it' positioning, giving it something of an edge over its larger peers. However, as the source adds: "The brand has been better established and it has a clear core competence. But people giving up SingTel is a big ask."
