Singtel takes on WhatsApp with launch of Wavee

SINGAPORE - With its business under threat from over-the-top providers such as WhatsApp, Skype and Viber, Singtel today (April 10) launched an app that replicates the features offered by its rivals  - allowing users to make voice and video calls, send instant messages, and set up chat groups. 

As network conditions can vary between locations, the erratic quality of Internet calling on smart phones remains an issue for users of OTT apps.  Singtel said that its Wavee app will be able to detect the strength of the user’s network and optimise the call quality for the best experience. From today, the app will be free to download and use from Apple Store and Google Play Store. All local data charges for Wavee usage on Singtel prepaid and postpaid lines would be waived, till July 9.

Mr Johan Buse, Singtel’s VP for Consumer Marketing, said: “People are looking for richer, more seamless and personal ways of communicating. With Wavee, we are giving our customers a holistic, end-to-end service.”

Analysts, however, doubted that the move would spur consumers to migrate to Singtel’s new app, and it needs to improve the product further - such as providiing differentiating features - to provide any real competition.   

Mr Shiv Putcha, IDC associate research director of consumer mobility, said: “It is not surprising that SingTel has launched an OTT-style app as they need to arrest the loss of messaging traffic to WhatsApp. I am surprised it has taken this long actually. Given the delay in launching this, Wavee is at a natural disadvantage with respect to services like WhatsApp and Skype, which already have massive global scale.” 

He added that Singtel’s promise of quality of service and optimised signal strength will not be “clear differentiators” in Singapore’s market due to near-ubiquitous mobile broadband and 4G, and where most mobile users already have smartphones and access to WhatsApp and Skype. But, he noted, it might work for other markets in Southeast Asia.

Mr Clement Teo of Forrester Research pointed out that one key differentiating feature would be its integration of SMS (short message message) into the Wavee app, which will improve the customer experience. Even so, the new app will not provide much credible competition to the likes of WhatsApp, he said. 

Mr Putcha said Singtel will have to do more, if it wants to stay relevant or provide good competition to the OTT services. “When stuff is free, people will generally tend to stick to the service where most of their friends are. To move more people, besides adding features all the time, Singtel may also need to look at attractive pricing packages for voice calling.” 

Consumers whom TODAY spoke to were lukewarm towards the new app. 

Ms Ho Shu fen, a communications manager in her 30s, said she was unlikely to switch to the Singtel app. “Most of my contacts are on Whatsapp. Unless Wavee gains mainstream popularity, then I’d use it,” she said. Ms Low Qiuling, 32, said she would not even contemplate using an app to make Internet calls “because it eats up too much data”.

Traditional telco revenue is falling, as a result of a sharp drop in the number of text messages exchanged and OTT providers riding on the networks. To mitigate the situation, Singtel had previously launched three types of paid WhatsApp plans for pre-paid mobile customers. These plans are tagged on to the customers’ existing pre-paid plans, and allow them to send unlimited WhatsApp messages without incurring additional data charges.