Commentary on M1's introduction of fixed-line broadband services

Aug 12, 2008

BT (p 7) ran a commentary by Winston Chai on M1's recent diversification into fixed-line broadband services, noting that this was unlikely to raise M1's revenue ceiling significantly in the near term. Unlike SingTel and StarHub, M1 did not have its own Internet pipes, which not only causes it to be at a natural disadvantage, but would also result in the M1's potential revenue being thinned by its payment to StarHub for the monthly cable leasing. Citing IDA statistics on household broadband penetration rate of 86.8 per cent in end June, Chai said that Singapore's swelling broadband user base did not leave M1 much room to grow. While M1 would be involved in the Next Gen NBN bid together with StarHub and Hong Kong's City Telecom, it would take far longer to recoup the investment and M1 had to carve out "alternative revenue streams to ensure its long-term survival". Chai asked if a "full fledged union" between M1 and StarHub would be the way to go, since M1 was already in partnership with StarHub for the Next Gen NBN bid.