OpCo Awarded in Singapore

Starhub was selected to run the communications network of Singapore (i.e. design, build and operation of the active infrastructure to provide wholesale broadband connectivity to Retail Service Providers). Read iDA ’s press release and Yong Ying-I – chairman of iDA – address on the matter. Tim posts an insightful brief on the bid. While I skimmed through the detais, a thing stood out:

Residential connection speeds are assymetrical while business offerings are symmetrical. The difference in prices range substantially, but hey, it’s symmetrical. What is interesting though is that unbundling (i.e. fiber access) is almost three times more expensive for businesses than for residents. I suspect that the pricing implies subsidization of fiber access by business demand, otherwise it would be like selling a car to a, say, doctor for a price three times higher than my ma’ would get (although I am sure she wouldn’t mind at all, especially considering the fees doctors charge these days!). I wonder if someone could verify this or not.

For a quick recap on Singapore’s plan you can read ” Singapore Leads the Way for National Broadband Strategists “.