Broadband prices in Singapore have fallen with the major operators SingTel, StarHub and MobileOne (M1) all reducing their prices for the 100Mb/s service to less than S$50 a month. They all unveiled their new pricing packages at the IT show held at Suntec City this month (March) as they seek to lock in as many subscribers as possible ahead of the completion of the country’s Next Generation Nationwide Broadband Network (Next Gen NBN).

As M1 pushes to remain competitive with SingTel and StarHub, the operator reduced its price for 100Mb/s services to S$39 a month, down from an already discounted S$45 for 100Mb/s and lower than its usual S$59. However, SingTel and StarHub quickly responded to M1’s move, also reducing their prices. SingTel is offering its 100Mb/s service for S$49.90. StarHub will be selling its service for S$49.65. This represents a big change in their broad market strategies, as the operators acknowledge the importance of tying customers into two-year contracts as more of them sign up with the current large scale expansion of the national fibre network.

Obviously this represents excellent value for customers. A monthly subscription of S$50 in 2011 would only have delivered a 16M/s service. While paying even less now they can get a massive increase in bandwidth. The Singapore government has already spent a significant amount on building its NBN and this current shift in the market must be seen as an early positive response to this investment.

While the operators are suggesting that the lower price drops are only temporary, there is no doubt that the changes will continue to be relevant longer term. The consumer in Singapore can expect prices to continue to drop or at least be maintained, bringing Singapore into line with places like South Korea and Hong Kong, markets which already boast broadband with faster speeds combined with cheaper prices.

See: Singapore – Broadband Market and Broadcasting Services