Price battle looms as SingTel starts 3G blitz

The '3loGy' initiative makes SingTel the second Singapore service provider to roll out a 3G platform, after MobileOne (M1). However, SingTel's aggressive pricing strategy means that a video call on its service will cost less than 50 per cent of one on its competitor's platform. According to director of marketing communications Mabel Tay, the brand is merely listening to consumer feedback. "It's really driven by what we've learned since our trial started in September (last year)," explained Tay. "Consumers are concerned about affordability, and we made sure it wasn't an issue at a price/handset level. The ball is in the court of the competition, but our focus is on the customer -- if ever there was a price war it wasn't started by us." After conducting trials since the fourth quarter of 2004, the 3loGy campaign hit the market with a splash, and included an 'envelope buy' of the Straits Times, along a major print offensive. "We wanted something that would create impact and raise curiosity," said Tay of the envelope buy, which wrapped the Straits Times in a 3logGy envelope, in the central business district. "And then have a visual assault of ads -- we wanted impact and surround, to create a certain level of buzz on the street." While Tay would not confirm the marketing investment, she noted that it was "quite a few million," once network and people costs were factored in. "We're spending quite a bit of money, because we believe this is going to take the communications experience to the next level," added Tay. Print executions focused on such areas as education and devices, and also included seven pages of congratulatory ads from SingTel partners. In an effort to connect with what Tay referred to as the "sweet spot" of 3G customers -- the 18 to 29 year-old demographic -- a major 3loGy concert was also held on Orchard Road. Included in a clutch of famous local entertainers were Singapore Idol winner Taufik Batisah, and runner-up Sylvester Sim. A new website has also launched. The 3loGy campaign aims to position the 3G service around the concept of convergence, which plays to SingTel's strength as the city state's dominant fixed-line provider. "Platforms are converging at a point where we are within that space and have an opportunity to make fixed line part of that equation," said Tay. SingTel's 3G service will allow consumers to make video calls from a 3G mobile phone onto a fixed line phone. Retainer agency Y&R handled above-the-line creative, while SingTel also worked with external agencies for online and event consultancy. Tay also added that the next phase of the campaign would see the utilisation of TV and cinema. "How can one not do broadcast media to illustrate 3G?" she asked. "