Nucleus Connect Commences Commercial Operations on Singapore's Next-Generation Nationwide Broadband Network

Nucleus Connect, Singapore's Next Generation Nationwide Broadband Network (Next Gen NBN) Operating Company (OpCo), has officially announced that it has commenced commercial operations on the Next Gen NBN. As the official Next Gen NBN Operating Company, Nucleus Connect provides retail service providers (RSPs) with open access and wholesale connectivity services on the new network. Nucleus Connect, led by StarHub, was appointed by the Infocomm Development Authority of Singapore (IDA) in April 2009 to design, build, and operate the active infrastructure of the network, which is based on gigabit passive optical network (GPON) and Optical Ethernet (OE) technologies (see Singapore: 6 April 2009: StarHub Selected to Operate Singapore's Next-Generation National Broadband Network). The IDA had in September 2008 selected OpenNet, in which SingTel has a 30% stake, as the Network Company (NetCo) to design, build, and operate passive infrastructure of the Next Gen NBN (see Singapore: 29 September 2008: SingTel to Lead Next-Generation Broadband Roll-Out in Singapore).

Nucleus Connect also unveiled the RSPs that had come onboard its network. For a start, 5 RSPs—LGA, M1, Singtel, StarHub, and SuperInternet—have signed up to the master interconnection offering with Nucleus Connect. Nucleus Connect has been working with a number of them to set up connectivity to Nucleus Connect's network and complete the required interoperability testing (IOT) so that they are prepared to provide services over the Next Gen NBN to their business and residential customers upon launch. The IOT service allows RSPs to test and validate their services over a simulated Next Gen NBN environment as it verifies all network and connectivity tests to ensure proper interconnection between the RSPs and Nucleus Connect's network. The interoperability tests performed will give the confidence that RSPs are able to provide the desired broadband experience to their end-users before they go live. These RSPs are said to be ready to launch their services soon.

Outlook and Implications

• Nationwide Ultra-High-Speed Broadband Network: Singapore will be one of the first countries to enjoy nationwide fibre-to-the-home (FTTH) broadband connections. The government has a target of 95% of all residential and non-residential buildings being wired up to the Next Gen NBN by 2012. By the end of 2010, 60% of homes and offices are expected to have access to the new all-fibre network, which will provide ultra-high broadband speeds of up to 1 Gbps. Some of the possible existing next-generation services include high-speed internet access, IP TV, high-definition video surveillance, digital signage, and wide area networks to support cloud computing type services. The Singaporean government has structured the Next Gen NBN into three layers—NetCo, OpCo, and RSPs—to ensure that downstream operators have effective open access to the infrastructure. This is to spur a vibrant and competitive next-generation broadband market where businesses and consumers can enjoy innovative services from a variety of RSPs.
• Major Driver for Broadband Growth: Singapore already has the highest broadband-internet-penetration rate among South-East Asian countries. With a population of about 4.5 million, the small and densely populated island nation had 1.21 million fixed broadband subscribers at end-June. Growth in broadband internet subscriptions had been attributed mainly to service providers' efforts to encourage customer migration from dial-up to broadband, introducing affordable retail plans and bundled-service packages. The launch of new Next Gen NBN will further stimulate customer uptake of high-speed broadband connections and increase competition among retail providers. SingTel had 517,000 retail broadband subscribers at end-June, representing 43% of the country's broadband subscriber base. Meanwhile, StarHub, the major cable broadband service provider in the country, had 408,000 broadband subscribers, with a market share of 34%.