Here’s why outlook for SingTel’s Australia business is waning

Competition in the country is heating up.

Singtel's Australia arm is facing more aggressive responses from its rivals in response to its postpaid promotions, and it's starting to feel the burn.

According to RHB Research, Optus’ mobile service revenue growth has decelerated from a high of 6.3% in 4QFY15 to 0.9% in 3QFY16.

RHB said this is due to the impact of the device repayment plans as it works into its postpaid base.

“Postpaid ARPU, however, rose 3.3% QoQ due to a bigger mix of higher-ARPU customers gained during the quarter,” RHB Research said.
 

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