Natalie - Singapore's broadband network is neither government owned (although it is government subsidised) nor most importantly is it a monopoly. there remains facilities based competition.
2 posts • joined 17 Jun 2011
KT's share of the broadband market is growing - from 42.5% in Jan 2010 to 43.4% in March 2011. Its total subscribers have grown from 6,967,000 of which 82.9% were Internet Lite (50 mbps) in Jan 2010 to 7,588,000 of which 85.5% were Internet Lite (50 mbps). The balance in each case was Internet Special (100 mbps). So the assertion in the above article that KT has been losing subscribers to other telcos is not correct, at least in net terms. What is interesting is that in a straight contest between 100 mbps and 50 mbps from the same telco with a modest price differential, there has been a decline in the 100 mbps share. The article notes that there has been an increase in 100 mbps subscribers with other smaller telcos. I dont have a comment on why this has occurred, but one clue may be, for example with LG U, that the products are 10 mbps on HFC on the one hand (which has declined in share) versus 100 mbps on Optical Lan or HFC both of which have increased. An explanation may be that customers do see utility in upgrading from 10 to 100 mbps but not from 50 to 100 mbps. I am not aware of the pricing differential within the LG U product mix w hich may also provide some explanations. It is worth noting too that in Korea while KT (Korea Telecom) is the largest broadband company there is active facilities based competition from other companies which has had the result of ensuring that prices are much lower than those proposed for the government monopoly NBN.
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