SINGAPORE: StarHub offers broadband service for free

Limited service allows access to selected websites but users must purchase a cable modem from StarHub

Straits Times
Friday, October 6, 2006

The increased competition in the broadband market of late has produced another first for Singapore -- free surfing to popular websites like Hotmail and access to online games like Maple Story.

StarHub yesterday launched a broadband service that allows users to access a selected list of Internet websites and services without paying any subscription fees.

Users can check their e-mail on Yahoo and Hotmail, chat using Windows Live Messenger, and download songs from StarHub's Play Music website.

They can also access local educational websites and e-government services.

The limited broadband service, a revamp of StarHub's existing FlexiSurf offering, gives users a download speed of 4Mbps.

To sign up, users have to buy a cable modem at $78.75.

StarHub says it also plans to have promotions with computer makers to give away these modems free with new PCs.

Mr Thomas Ee, StarHub's senior vice-president for IP services, said the new service is aimed at users who go online with slower dial-up services.

"It will let a lot of families get a taste of broadband, especially those with children who need the Internet for school work," he told The Straits Times.

The plan, according to StarHub at least, is to entice users to sign up later for its paid broadband services.

These range from $58.80 a month for a 4Mbps service to $121.80 a month for a top-end 30Mbps service aimed at heavy users.

Research firm analyst Claudio Checchia said the new service may appear as an interesting "bait" to non-broadband users.

"But I wonder if it would get more people excited if StarHub just came up with something that costs $15 or $20 a month."

StarHub's latest offering comes after months of increased competition with rival SingTel.

StarHub has given free speed upgrades -- from 2Mbps to 4Mbps -- to current users, while SingTel has cut prices several times in the past year.

SingTel's low-end 512Kbps service now costs $29.90 a month, down from $47.25 in November last year.

Both telcos have also planned broadband services that offer download speeds of up to 100Mbps in the coming months.

This will enable users to download a song in mere seconds instead of minutes.

Date Posted: 10/6/2006