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SINGAPORE: Four groups have submitted bids to become the operating company (OpCo) for Singapore's upcoming ultra-high speed broadband network.
The Infocomm Development Authority (IDA) had asked for proposals for an OpCo to design, build and operate the active infrastructure for the new broadband network.
The three local telcos SingTel, MobileOne (M1) and StarHub each put in one bid.
The fourth bid came from IntelliNet Consortium, which is made up of Axia NetMedia and Cisco Systems.
Earlier reports had speculated that as many as 11 companies had been shortlisted to submit their bids by the deadline at 10 am on Friday.
The regulator IDA had extended the original deadline by three weeks.
The Next Generation National Broadband Network is part of Singapore's Intelligent Nation 2015 initiative to provide seamless connectivity.
The operating company will lease the high-speed infrastructure, operate the network and resell bandwidth to the retail service providers.
As the largest player, some analysts say SingTel may have an edge. It is already part of the OpenNet consortium that has been chosen to design and build the infrastructure for the network.
In a statement, SingTel said it had tabled a very compelling proposal, based on the latest broadband technology and backed by its experience in the industry.
SingTel added that it has a strong cashflow position and does not expect to tap the financial market for additional funds should it be appointed as the OpCo.
StarHub is also seen as a strong contender due to its operational experience.
As for M1, industry experts say new doors will be opened up for the call-heavy player if it were to win the bid.
M1 says participating in the OpCo bid is an important step towards being a multiple-play service provider.
"I guess if it is SingTel or StarHub, it's going to be business as usual, as both of them have been running this fixed broadband service for quite some time. But if, for example, M1 were to win, we think it is probably a new ball game for them," said Carey Wong, a Research Manager at OCBC Investment Research.
The winner will receive a S$250 million grant from IDA but may need to fork out additional money for administration and compliance.
Wong said: "Although the contract size has not been announced, but if we use the NetCo as a benchmark, we think the overall budget for the OpCo could come up to S$1 billion."
IDA says it will evaluate the bids and announce a winner in the first quarter of next year.
Some analysts say some of the telcos could join forces further down the line in efforts to secure the bid.
- CNA/yt
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