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What competition when the new broadband will also have a hand in it!
Money out here and back in the other pocket!
SINGTEL plans to offer new Internet services to make up for the impending onslaught of competition that it will face when a new broadband network is up and running.
The firm, which controls Singapore's most extensive phone and fibre network, has been generating solid returns over the past two decades, with profit margins for telco services at a healthy 43.3 per cent.
But that edge will end once the high-speed broadband network is up and running in 2012.
Access to the new network, which is being built by a consortium that includes SingTel and The Straits Times' publisher Singapore Press Holdings with hefty government subsidies, will be made available to all interested parties at the same price.
SingTel's chief executive for Singapore, Mr Allen Lew, told a results briefing yesterday that it is girding itself for the day when its 'ability to compete on infrastructure goes away'.
When that happens, margins from SingTel's network infrastructure business are expected to fall, and 'new market entrants who will now have easy access to network infrastructure' are likely to emerge to compete with it to boot, said Mr Lew.
Read the full story in Friday's edition of The Straits Times.
[email protected]
Money out here and back in the other pocket!
SINGTEL plans to offer new Internet services to make up for the impending onslaught of competition that it will face when a new broadband network is up and running.
The firm, which controls Singapore's most extensive phone and fibre network, has been generating solid returns over the past two decades, with profit margins for telco services at a healthy 43.3 per cent.
But that edge will end once the high-speed broadband network is up and running in 2012.
Access to the new network, which is being built by a consortium that includes SingTel and The Straits Times' publisher Singapore Press Holdings with hefty government subsidies, will be made available to all interested parties at the same price.
SingTel's chief executive for Singapore, Mr Allen Lew, told a results briefing yesterday that it is girding itself for the day when its 'ability to compete on infrastructure goes away'.
When that happens, margins from SingTel's network infrastructure business are expected to fall, and 'new market entrants who will now have easy access to network infrastructure' are likely to emerge to compete with it to boot, said Mr Lew.
Read the full story in Friday's edition of The Straits Times.
[email protected]