"The cheaper plans widen DiGi's addressable market for the iPhone by lowering the barriers to ownership, thus inducing more subscribers to upgrade and encouraging users from other networks to port-in," it said in a report yesterday.
OSK Research is sticking to its DiGi forecast, pending the release of its second-quarter results on July 20.
Since Wednesday, DiGi has cut the monthly access fees for iPhone plans by between 32 per cent and 35 per cent. The access fee for the entry level plan (iDigi88) has been lowered to RM60 from RM88 previously.
"We believe the new plans would ignite further interest and widen the addressable market for the iconic device, with DiGi cementing its best value proposition in the market."
While it reduced the monthly fees, DiGi has also cut the subsidy on iPhone handsets by 47 per cent to 80 per cent (up to RM1,500 per phone) and is doing without the free offer on iPhone's older 3G model.
"We estimate the net gain for a subscriber after deducting the higher cost of the phone at RM200 to RM400 compared with the previous plan," it said.
Digi.Com signed an agreement to sell Apple Inc's iPhone in Malaysia early this year, ending rival Maxis' monopoly in selling the smart handphone in the country.
The three-year agreement will help DiGi increase sales by more than 5 per cent this year, its chief executive said in March.
Smart phones are becoming increasingly popular for Internet access in Malaysia.
by Business Times
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