Diversifying Ruined

I recently received an email from Qmax regarding the above Wireless Internet Broadband promotion they are having now. I thought they are quite attractive so I did some calculation and comparison.

The closest competitor would be Singtel with their varieties of low cost broadband plans. Comparing apple with apple, we have the Qmax's 1mbps VS Singtel's 1mbps. Lets take a look at Qmax's 1mbps plan. For both the 12mths and 24mths contract, it charges a price of $37.45 monthly. Singtel's 1mbps plan comes with a Ipod Nano which is worth around $249 while Qmax gives a Creative Zen 4GB which also cost $249. Lets say you do not need a mp3 player, you may sell it, a reasonable price would be around $200. Next, lets calculate the total price paid for each plan.

Singtel 1mbps
Total Amount paid for 24 months.
$35.62 * 24 = $854.88
Average per month (Includes selling of Ipod Nano for $200)
($854.88 - $200) / 24 = $27.29/mth

Qmax's 1mbps
Total Amount paid for 24 months.
$33.17 * 24 = $795.12
Average per month (Includes selling of Ipod Nano for $200)
($795.12 - $200) / 24 = $22.80/mth

Of course, people will doubt Qmax's ability as they are so small compared to the giant Singtel. However, others may also argue that due to Qmax's smaller concentration of customer base, they are able to focus on every individual subscriber. That was the case for me few years ago while I was with Qala. Excellent customer service, excellent connection with less than 0.0001 probability of getting disconnection.

Another break through in Singapore's Unlimited Free Internet Broadband price plan. We finally break the $10/mth support with Qmax's 256kbps plan. After deducting the free 2 months access and divide by the total 10 months, we arrived at a subscription price of $9.92/mth! It can potentially be cheaper than even those who are using dialup.