From Saturday, its high-end mobile data plans will cost just $16, down from $69.30. At the same time, it will quadruple the amount of data usage for its entry-level $5.35 plan to 20MB, and cap the maximum fees payable at $36.38.

Mobile data fees are payable for non-voice or text message related activities, like when mobile phone users surf the Internet, watch or download movies, and check email messages with their handsets.

Mobile users, said M1 chief marketing officer P. Subramaniam, 'can now take advantage of the many features of the smart phones with our new data bundles that truly offer great value'.

'These new data plans with their low rates, capped usage charge and generous free bundles are customised for these challenging times and I am confident that our customers will greatly welcome them,' he added.

Consumers hoping that M1's move will prompt tit-for-tat price cuts from SingTel and StarHub are in for a disappointment. The two telcos will not be matching M1's plans, at least for now, said their spokesmen in response to queries from The Straits Times.

SingTel's $3.50 entry-level plan offers 2MB of data usage, while StarHub's $5.35 plan offers 10MB of data.

M1's move did, however, prompt a swift riposte from StarHub.

In an e-mail reply, StarHub's head of personal solutions and advanced multimedia services Chan Kin Hung said the company was 'delighted that all our competitors are belatedly offering similar benefits that our mobile customers have been enjoying'.

In his reply, he pointed out that StarHub was the first to offer mobile data users a price cap, and that M1's $36.38 cap was identical - to the cent - to StarHub's.

SingTel vice-president for consumer marketing Wong Soon Nam said the company 'will continue to review our mobile data offerings to ensure that they remain competitive and compelling for our customers'.