Singapore is now the first FTTP-only fixed broadband market in the world, following leading cable operator StarHub’s decision to switch customers on its cable network over to its newer fibre network. All voice, broadband and TV customers with StarHub are now using its FTTP infrastructure.

StarHub first launched fibre services in 2013 and its fibre network now covers more than 90% of Singapore. The telco has been encouraging its cable customers to switch to its fibre network since then. However, not all customers migrated – we estimate that StarHub lost 60% of its 35,000 remaining cable customers when it terminated its cable services.

StarHub’s transition to fibre is the result of the rapid development of incumbent telco Singtel’s fibre network and the “race to the bottom” price strategy between the two established players and with the new market entrant M1. StarHub has lost significant broadband market share since 2011, when it controlled 44% of the broadband market. It now has just 36% of the market. 

StarHub offered a maximum of 100Mbps downstream broadband speeds via its cable services until the network’s closure. Although fast on a global scale, local rival Singtel offered entry level fibre broadband packages at speeds ranging from 100 Mbps to 10 Gbps. Not only overshadowed in speed, StarHub’s cable network also lost any price advantage. StarHub’s 100 Mbps cable broadband tier cost SGD 125 (~USD 90) per month prior to 2013 while Singtel’s equivalent fibre broadband package cost only SGD 70 (~USD 50).  In response, StarHub reduced the price to SGD 40 (~USD 30) at the beginning of 2013 and further bundled TV and telephony services into the package. In return, Singtel started to expand the capacity of its network and now provides 1 Gbps, 2 Gbps and 10 Gbs broadband connections. Its entry tier 1 Gbps broadband cost almost the same as StarHub’s top 100 Mbps cable tier at the point at which StarHub terminated its cable services. In contrast, StarHub’s new fibre broadband packages are competitive both on speed and price.

StarHub’s decision to abandon cable but embrace fibre now means that Singapore is the first fully-fibre broadband market worldwide. Although StarHub’s experience may not be generalisable to other cable companies around the world – many of whom are already offering FTTP-equivalent speeds through hybrid fibre coax (HFC) networks – Singapore does provide a lesson on the impact of fibre broadband competition. StarHub, Singtel and M1 all rolled out substantially faster broadband speeds via fibre, at reduced prices. With minimal incremental cost to the telcos for offering faster speeds, and limited consumer demand for gigabit broadband, a ‘race to the bottom’ was inevitable. For StarHub’s international peers facing a similar competitive environment, finding a clear consumer fibre use-case will be essential to maintaining or growing pricing.