SINGAPORE — StarHub will become the first telco to start charging for a 4G value-added service from June, after the promotion it introduced as a free upgrade for customers two years ago ends next month.

Subscribers on StarHub’s SmartSurf Lite, Value, Premium and Elite plans will have to pay S$2.14 a month if they wish to keep the 4G Speed Boost service. The telco stated on its website that this is a promotional rate, implying that it may increase the price to S$10.70 at a later date.

StarHub did not elaborate on when it might start charging the full rate.

It stressed that 4G Speed Boost was originally provided as a complimentary service when it was launched in September 2012 and was scheduled to expire last year. The promotion was extended and will end on May 31.

“As with all promotions, there is an end date. The new promotional rate is valid till further notice,” Mr Tian Ung Ping, StarHub Assistant Vice-President of Mobility, told TODAY.

He pointed to an “exponential increase in mobile data use” in explaining the charge. “We have been investing heavily in our 4G and 3G network upgrades, for example, through ongoing installation of additional base stations across Singapore. We are also upgrading our 4G network to offer Voice over LTE and maximum mobile broadband speeds of up to 300Mbps this year,” said Mr Tian.

Mr Foong King Yew, Research Vice-President for communications service provider (CSP) strategy at market research firm Gartner, said that monetising of 4G services is inevitable.

“Telcos are faced with the challenge of growing mobile data usage, which requires huge investments in network upgrades and capacity expansion. It is not sustainable for the CSPs to have a situation where the rate of growth of data usage outpaces the growth in revenues,” he said.

StarHub customers will be given the option of reverting to a 3G plan, and new and re-contracting customers are also being kept informed at its shops, the telco said.

“We recognise the impact of any change in promotions and we are taking steps to keep customers informed. We are notifying subscribers of 4G Speed Boost through SMS and in their coming bill. In addition, we have updated our website and brochures at our retail outlets,” said Mr Tian.

Meanwhile, telcos M1 and SingTel have yet to announce any similar moves.

SingTel’s website states that its 4G Value Added Service will remain free “till a date SingTel determines”. When asked if it has plans to start charging now that StarHub has done so, SingTel would only say that it is focused on upgrading its networks this year.

“Our focus is on enhancing the mobile data experience for our customers by rolling out network upgrades, such as doubling the maximum speed of our 4G service to 300Mbps this year. We regularly review our price plans to ensure that we are giving good value to our customers,” a SingTel spokesperson told TODAY.

M1’s website states that its 4G service will remain free until December, but in a response to queries from TODAY, a spokesman said prices are being reviewed.

“We are currently reviewing our charges with the upgrade of our 4G network to support speeds of up to 150Mbps and the introduction of high-quality voice calls over our 4G network in the coming months,” the spokesman said.

StarHub’s impending 4G fee has raised the ire of its customers, with several who had re-contracted recently complaining that they were not informed the additional charge would be implemented soon.

StarHub said yesterday information on the stipulated promotional period has always been made available on its website, in its brochures and at point of subscription.

On whether it could have informed customers earlier, StarHub would only say that customers are given advance notice of the change in promotion starting this week.

When asked if being the first to start charging for a 4G value-added service means it risks losing customers to the other telcos in the near term, StarHub would only say that its mobile plans are priced competitively, with the largest data bundles in the market.

Meanwhile, the Consumers Association of Singapore said StarHub should allow customers the option of switching providers without imposing a penalty.