However, the surge in data traffic did not lead to a corresponding rise in earnings, as telcos are compelled to offer larger data bundles at lower prices. The established players, in fact, suffered from the economic downturn. In its 1QFY2020 business update, StarHub reported mobile revenue of $163.5 million, down 15% y-o-y and 14.3% q-o-q, due to a combination of lower average revenue per user (ARPU) and cheaper price plans. Yet, overall average usage per subscriber chalks up yet another gain to 10.6GB, from 9.9GB in the preceding 4QFY2019, and a further increase from 6.3GB in 1QFY2019. Singtel, on the other hand, saw its mobile revenue in Singapore drop by 12% y-o-y to $218 million for its 4QFY2020 ended March 31, 2020.
In the blockbuster science fiction film The Matrix, human beings live in a virtual world while lying in a state of suspended animation to serve as living batteries for diabolical machines. Covid-19 has, for better or worse, turned science fiction into reality as safe distancing measures forced the entire world into their homes and compelled much of human interaction to migrate online. Only that instead of human brain impulses, it is mobile data that powers this brave new online world.
According to consulting firm Deloitte, many telcos have reported skyrocketing demand for data. “MyRepublic saw a 70% increase in daytime internet traffic in May as compared to December 2019,” observes spokesman Lawrence Chan, who also reports a 60% increase in demand for internet connectivity and bandwidth usage. Fellow telco Circles.Life, moreover, says that data consumption has shot up to an average 15GB per month compared to 11GB per month in 2019, as users go online for both work and entertainment.
