StarHub wins $166m Singapore NGN contract

Telecom Asia Staff

StarHub has won the right to build and operate a wholesale next-gen broadband network across Singapore, the IDA has announced.

It beat out bids from SingTel, M1 and a joint proposal from Cisco and Canada\'s Axia NetMedia.

The Singapore government will tip in up to S$250 million ($166 million) to StarHub\'s new subsidiary, Nucleus Connect, to support the project.

The government is paying up to S$750 million to OpenNet, a joint venture between SingTel and Axia, who last year won the right to build the underlying infrastructure.

The tender, which concluded Friday, was the second stage in Singapore\'s next generation broadband network (NBN) program.

Under the terms of the tender, Nucleus is to start offering commercial services by the first half of 2010 and provide universal coverage by 2013. It will be limited to wholesale services only and will be operationally separated from its parent.

The IDA has set wholesale residential connection prices at S$21 per month for 100Mbp and S$121 for 1Gbps.
 
Mobile operator M1 expressed disappointment at the decision.

"Having invested resources into the submission of our proposal for the OpCo, we are obviously disappointed with this outcome," said Karen Kooi, Acting CEO. "Nevertheless, M1\'s plan to be a Retail Service Provider remains on track and we look forward to working closely with the appointed OpCo."

SingTel said it would "continue to develop feature-rich services, including ultra high-speed communications and home entertainment, in preparation for the timely opening of the fiber access market."

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