Singapore's major fixed-line operators are aggressively undercutting each other in the high-speed fiber segment, despite analysts warnings that the competition may not be sustainable.
Late last week, M1 launched a 1Gbps promotional broadband plan for just S$49 ($39) per month. The plan will come bundled with a 1Gpbs mobile broadband service.
Less than a year ago, M1 had been charging S$399 for the service, and the company had already reduced this price down to S$99, TodayOnlinesaid.
This is just the tip of the iceberg for recent price cuts, Channel NewsAsianoted. SingTel last month started offering an unlimited, uncapped fiber plan for S$69.90, and StarHub has confirmed it is working on its own new tariff plan.
The price war started in January, when ISP MyRepublic started offering a 1Gbps fiber service for S$49.99 – eight times cheaper than M1 and StarHub's plans at the time.
While consumers have welcomed the price reductions, TodayOnline noted that multiple analyst groups have expressed concern that the intense price competition is harming ARPU and profitability, and will not be sustainable in the long term.
MyRepublic's entry into the market alone has been blamed for a 15-20% increase in broadband ARPU among the incumbent operators.