IN THE first six months since mobile phone users were allowed to switch telcos and keep their old numbers, the move to free up the market has thrown up an unexpected result.

In an outcome that defied analysts' projections last year, Singapore Telecommunications (SingTel) has strengthened its position as market leader.

The company was expected to lose ground to StarHub and MobileOne (M1) with the introduction of mobile number portability. Due to its much bigger customer base, it would thus have more customers willing to move for a better deal.

Instead, SingTel raised its market share in the coveted post-paid segment by 0.8 percentage points to 45.6 per cent.

StarHub kept its 27.3 per cent share of the pie while M1's cut fell by 0.8 percentage points to 27.1 per cent.

Post-paid customers are those who sign two-year contracts and pay a minimum monthly subscription. They are more highly prized than those who buy pre-paid cards as they contribute much more to a telco's profit margin.

Since number portability took effect, about 7,300 phone users have switched telcos each month. There are about 3.3 million post-paid subscribers here.

The move to allow number portability was taken to encourage competition.

For years, customers clamoured for the right to switch to telcos which offered them a sweeter deal, instead of being tied to one for fear of being inconvenienced by a change in phone number.

SingTel's gains, said DMG & Partners Securities' co-head of research Terence Wong, are due to its 'aggressive' handset discounts and an exclusive deal forthe highly coveted Apple iPhone.

M1 has been hit hardest because it could not 'bundle' services the way SingTel and StarHub could with their broadband and pay TV networks, said Mr Foong King Yew, research director for carrier operations and strategies at research firm Gartner.

Read the full story in today's edition of The Straits Times.