Easy-access broadband still casts too wide a net
Subs not flocking to nationwide network, but the island ready
However, the broadband network, which became a commercial reality in 1998, has not been embraced widely by the population. The figures have been edging up slowly, now enjoying a subscription base of 40,000 with a total of 118,000 users.
The penetration rate of 2.63% in 1999 was among the highest in the world, ahead of the U.S. (2%) but behind South Korea (5%), but seems low considering that, technically, everyone in the country can access broadband service. Also, it appears to be a scant return for the infrastructure and content costs, which stand at S$400 million ($230.7 million).
Part of the problem may be that the authorities have been too far ahead of their time. For the first few years of the network, little was achieved by way of content as providers struggled to find a workable business model for broadband.
"We are at the edge, and there is no precedent, so we have to experiment," shrugs Tan Chek Ming, director of the Economic Development Board services development division.
Thomas Ee, vice president for broadband engineering services at Singapore Cable Vision (SCV), which cabled the entire island and launched its broadband access service last December, agrees that there are challenges to popularizing the service. Among them are education, to highlight to the public its benefits and relevance to everyday life, content and applications, and cost -- SingTel Magix charges $17.30 for 12 to 13 hours of access a month, while SCV charges $32.30 per month for unlimited access.
Despite the challenges, Khoong Hock Yun, Infocomm Development Authority's assistant chief executive, points to the rapid formation of broadband ventures recently, with industry players globally investing close to $200 billion in mergers and partnerships to push the development of a high-speed Internet.
The IDA has been doing its part to ensure the development goes smoothly in the country. It is revising the Quality of Service framework for broadband Internet providers to include access speed as well as the current specifications of network availability and accessibility, and service activation time.
It is also encouraging the development of richer content, both from homegrown providers, as well as providing incentives to global players to offer their content on Singapore ONE and localize content in the country for the Asian market.
"The IDA has established strategic alliances with various U.S. companies such as Microsoft, RealNetworks, Innovativ.com and On2.com," says Khoong.
And there is a $86.5 million package, announced in April, to boost the Interactive broadband media industry.
