The SingTel-backed OpenNet group has won the tender to build Singapore's government-funded next-gen broadband network.
The consortium said it would roll out fiber to 95% of the city's homes by June 2012, offering speeds of up to 1 Gbps.
In winning the contract, OpenNet has won a windfall of as much as S$750 million ($518 million) from the regulator, IDA, for network construction.
It beat off just one rival for the tender, the Infinity group, whose bid was severely embarrassed by the departure of its leader, Hong Kong-based CTI, six weeks ago.
OpenNet itself will only be capitalized at no more than S$165 million, according to Axia NetMedia, the Canadian-based consortium leader. Axia said its capital commitment to the project would be capped at C$36 million (S$49.7 million).
Axia and SingTel each hold a 30% stake in OpenNet. Singapore Press Holdings (SPH) owns 25% and SP Telecom 15%.
Under the terms of the tender, OpenNet will own the dark fiber and other "passive infrastructure" belonging to SingTel and sell access to downstream telcos.
SingTel has committed to transferring the underlying assets, such as ducts, manholes and exchanges, to a neutral and independent company within two years of the close of contract.
Singapore Information, Communications and Arts Minister Lee Boon Yang, said OpenNet had proposed wholesale prices of S$15 per month for a residential and S$50 for a non-residential fiber connection.
A tender for the license to operate wholesale services over the NGN has also underway since April, for which the government has promised to tip in up to S$250 million.
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