Fibre broadband price war breaks out among telcos

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After years of benign competition and insistence from the major telcos that competition among them has moved beyond pricing, a price war is well and truly under way in the high-speed fibre broadband market.

Yesterday, M1 launched a promotional S$49-per-month 1Gbps fibre broadband plan — slashing its price by half to go head-to-head with MyRepublic’s Ultra 1Gbps package, which the start-up is offering at S$49.99, and SingTel’s S$69.90 Unlimited Fibre plan, which was put on the market only last month.

In response to media queries, StarHub said it is revising its 1Gbps fibre broadband plan, but declined to elaborate. It has stopped selling its S$395.90 plan. “We are working on a new 1Gbps home broadband offer and will announce exciting details in the coming weeks,” said its spokesman.

On the latest developments, analysts noted a distinct shift in the telcos’ pricing strategies. Previously, M1, SingTel and StarHub have tended to move closely together when it comes to pricing or service.

This led some consumers to question why the three settled on the same price, while also asking if there was enough competition in the local telco market.