SingTel, StarHub, M1 to bid for job to build Singapore's ultra-high speed network

SINGAPORE: Three telecoms operators - SingTel, StarHub and M1 - have thrown their hats into the ring to build Singapore's Next Generation National Broadband Network.

The request for proposal (RFP) for the ultra-high speed network to be ready by 2015 was opened on Tuesday, after months of consultation with 12 pre-approved consortia and companies.

The government has also said the winning bidder would have to be a separate entity from the current telecom and Internet operators.

Minister for Information, Communications and The Arts, Dr Lee Boon Yang, said: "It is also critical for the Next Gen NBN to provide effective open access to downstream operators. This will create a more vibrant and competitive broadband market. As a policy, we have therefore decided to adopt separation between the different levels of the Next Gen NBN to achieve effective open access. The RFP to construct the network will therefore provide for structural separation of the passive network operator from the downstream operators."

This means potential bidders like SingTel and StarHub will likely create separate entities, so they can be structurally separate from their downstream retail business.

Besides the network operator, wholesalers and retailers are also required to be operationally separate.

The network will offer speeds of up to 1 gigabit per second, making services such as the sharing of complex medical data in healthcare possible.

The successful bidder will have to ensure that the ultra-high speed network will be available to more than 50% of homes and offices in Singapore by 2012. It will also be held to the wholesale prices it states in its bid.

The government will provide grants of up to $750 million to the successful bidder.

Already, the three local telcos have set their eyes on the lucrative venture.

SingTel says its track record in rolling out networks will enable it to do the job in the most cost effective manner, while rivals StarHub and M1 both say they are committed to putting in strong proposals too.

The request for proposal is expected to close on 25 March next year.

The winner of the bid is expected to be announced by the third quarter of 2008.- CNA/ir