Consumers who want just a mobile plan without being tied down to a two-year contract can now get one through Singtel - the second telco here with such an offering.

Singtel announced yesterday a contract-free mobile plan that starts from $20. It targets those who want a cheaper option for a phone line, instead of paying for a phone plan along with a subsidised cellphone.

This SIM-only starter pack comes with 3GB of local data, 2GB of Singtel Wi-Fi at 550 locations, and free incoming calls and SMS.

Customers can also opt for additional local data, which starts from $5 for 1GB. Moreover, they will be able to pay for talktime, starting from $5 for 200 minutes; for SMS, they pay $5 for 1,200 messages.

For example, $30 a month would cover 3GB of local data, 2GB of Singtel Wi-Fi, 200 minutes of talktime and 1,200 SMSes.

With the influx of low-cost smartphones, including ones from Chinese maker Xiaomi, or exclusive handsets not sold here such as the OnePlus 2, customers are no longer tied to telcos for phone purchases.

"We have made it possible for users to bring their own device and select only the services they want... all without having to commit to a contract," said Ms Diana Chen, Singtel's vice-president of mobile marketing.

Singtel's latest offering follows a similar plan launched by rival telco M1 in July, which starts at $30 for 5GB of local data, 300 minutes of talktime and 1,000 SMSes.

StarHub offers customers a 20 per cent discount on their monthly subscription rates for the first year if they sign up for a SIM-only plan that does not come with a contract.