This report has made significant changes to its broadband forecast, after including both wireline and wireless subscriber figures. Based on IDA data, which reported 5.126mn subscribers as of June 2009, household penetration rates reached 118.5%. This was up significantly from 85.6% reported in June 2008. The report now anticipates a total of 6.3mn broadband subscribers at the end of 2009, with the number rising to 14.2mn by the end of our forecast period in 2013.

Growth in the broadband market is being driven by wireless broadband, up by 31.3% y-o-y to reach a total of 4.076mn subscribers as of Q209, accounting for 79.5% of the total. This has in part been encouraged by the efforts of mobile operators SingTel, StarHub and M1, who have all invested in HSPA. More recently, in July 2009 StarHub upgraded its network to HSPA+, capable of offering download speeds of 21Mbps.

Other improvements to the broadband market have arrived from M1’s acquisition of local internet service provider (ISP) Qala Singapore in early September 2009 at a cost of SGD14.9mn (US$10.3mn). In early 2009, M1 had launched its fixed-line broadband service, and its purchase of Qala will see it enter the corporate fixed-line broadband market, helping it to make rapid gains in both presence and experience.

Adding to this, Qala remains the only commercial WiMAX provider in Singapore, and is also one of three operators providing free Wi-Fi services.

Efforts in the broadband market, and on a much larger scale, continue to be driven by the country’s SGD1bn Next Broadband Network project. Contracts were awarded to Chinese telecoms equipment vendor Huawei Technologies in late September 2009 for the deployment of an end-to-end network with an IP MPLS core and a GPON active ethernet access network. The vendor’s contract accounted for 70% of the total value. The remaining 30% went to Alcatel-Lucent Technologies, which will supply its OSS/BSS systems and act as systems integrator. The contract will include service assurance, customer care and billing, and is scheduled for completion by July 2010.

Meanwhile, the maturing telecoms market in Singapore impacted the country’s Business Environment Rating in terms of potential returns; however, a rising regulatory independence score, up to 90, was able to offset falls in the country risk and country structure categories. This led to Singapore retaining its second-ranked spot over the quarter, with a total score of 71, still some way behind first-placed Japan’s 75.3.