Tuesday, May 17, 2011

M1 Singapore will offer commercial LTE Q1-2012

Source: M1 website

M1 announced that they will be offering commercial LTE as early as Q1-2012. I believe both SingTel & Starhub will be offering LTE in 2012 and if you are hoping to enjoy speeds up to 300Mbps by next year I've to say sorry to you. I am not very optimistic about LTE or higher mobile speeds in Singapore at least for the near future. It is quite similar to NG-NBN. Today the fiber rollout is almost 90% done but if we see the % switched to fiber that is less than 5%. Reason is Cost and requirement.

End of the day people subscribe higher speeds when they need it. Today without doubt higher bandwidth is used for gaming, p2p or video stuff. The common man doesn't really require dozens of mega bits or hundreds of mega bits right now. For me I am very happy with my 10Mbps connection which is used mainly for voip or video chat as well as normal browsing.

Anyway more info about M1 is they've awarded the contract to Huawei and the value is worth 280 million over 5 years. If my wild guess is correct M1 awarded as Managed services. That's the only way they can chalk up such high amount. If this is correct, then we'll slowly see Managed Services entering in to Singapore Telco market.

This is significant because as of now we see very little managed services in APAC region. Bharti pioneered this model in India and we all know the success story. Globe is venturing in to it right now and once Singapore opt for it within few years Indonesia, Thailand and rest will follow the suite (be it due to SingTel influence of singapore influence).This will help Telco's to reduce costs but not very good for engineers working with them :|

Also a bit surprised that NSN (Nokia) lost the contract. Currently M1 Core is NSN while the radio network is by Huawei. My understanding is M1 not very happy with Huawei as Huawei prioritizing  all new features for Starhub (Starhub is completely build by Huawei) and M1 wanted to keep NSN for their strategic advantage. So nor M1 awarding to Huawei means either they managed to get some commitment or wonderful 'cost' quote.
Given the fact that Starhub can offer much more business to Huawei the former assumption may not be valid and more likely that M1 managed to get a bargain. Who knows we may well see some M&A activity here too :)







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