SingTel registered more than 170,000 iPhone 3G activations across the group since launching the device in July in Australia (Optus), and in Singapore (SingTel), India (Bharti Airtel) and the Philippines (Globe Telecom) in August. Early usage indications showed that iPhone 3G subscribers delivered an ARPU of approximately 1.5 times higher than the overall postpaid base, SingTel said. The group expects the iPhone activations to impact EBITDA as higher subsidy costs are associated with the device.

Currently, both SingTel and Globe are the sole operators to offer the iPhone 3G in Singapore and the Philippines, while Optus and Bharti are among multiple operators with rights to offer the phone in their markets. In Australia, approximately 55 percent of the total activations were mobile customers new to Optus and SingTel believes that Optus accounted for the majority share of iPhone 3G activations in Australia during this period. In Singapore, approximately 30 percent of the iPhone activations were mobile customers new to SingTel.

In line with group’s policy, mobile subscriber acquisition and retention costs are expensed immediately on activations. Higher subsidy costs are associated with iPhone 3G and the launch will have a dilutive impact on earnings and margins in the near term. For the second quarter ended 30 September, the incremental impact of the iPhone 3G activations reduced EBITDA by approximately SGD 27 million in Singapore and approximately AUD 44 million in Australia.

Source:Telecompaper