Singapore Telecommunications Limited (ASX:SGT)
Singtel-owned Optus says it won’t be drawn in to a price war with Telstra Corporation Limited (ASX:TLS)
to win customers, according to media reports.
Chief executive Kevin Russell told media the battlegrounds have shifted and network superiority alone is no longer enough to win over new customers.
Mr Russell maintains the industry needs to build business models and returns that are sustainable rather than chasing customers on price.
He says Optus plans to win customers from a brand position with a clear differentiation.
As part of its push to improve its services, Optus has this year overhauled its mobile plans and abolished contract breakage fees.
Singtel generated a net profit of $1.6 billion in the first half of fiscal 2014.