SINGAPORE: Broadband users in Singapore can look forward to slashing 30 per cent off their internet bills, thanks to increased competition.

Analysts said existing players such as StarHub and SingTel will push down their charges to compete with the operator of the upcoming National Broadband Network set to be launched in 2012.

The licence to build and operate the network will only be awarded by the end of the year.

Market-watchers expect StarHub, SingTel and M1 to put their hats into the ring, not just for the right to build the infrastructure but also to run it.

Kenneth Liew, senior market analyst of global IT research and advisory firm IDC, said: "The challenge for them would be to have a share in both NetCo and OpCo and still satisfy the criteria of not having a controlling stake in it.

"So they will be playing with the percentage of shareholding that they have and the partners they actually work with to be participating in both."

Under the guidelines set by the IDA, the OpCo and the NetCo will work together to develop the new network. The NetCo will design and build the infrastructure, while the OpCo will manage the flow of broadband traffic.

Already, M1 and StarHub are said to be joining hands with Hong Kong's City Telecom to bid for a licence.

Industry watchers said the tender process allows the opportunity for smaller players to collaborate with bigger names, giving them access to the Singapore internet market.

Krishna Baidya, industry analyst of Frost & Sullivan, said: "I think it brings out a lot of new opportunities for those who wanted to get into the market and provide new broadband services, but they were not able to get into the market because they do not own a network.

"So I guess this is definitely great news for those people who would like to create that differentiation in the later part to provide new and innovative service to customers."

Singapore's broadband coverage is expected to jump to over 90 per cent by the time the new network is up and running. - CNA/vm