SINGAPORE – Internet service provider (ISP) ViewQwest has slashed the price of its 10Gbps broadband plan to just shy of $39 a month, in what could signal the start of a price war for premium plans in the broadband market.

ViewQwest on Sept 26 stopped selling its basic 3Gbps and 5Gbps plans, and started offering only its 10Gbps plan at a new low among major ISPs of $38.75 a month.

ViewQwest’s 10Gbps plan was initially priced at $58.98 a month when it launched in July. It joins local telco Simba, which offers a $29.99 plan, in undercutting the prices set by most major ISPs. 

In comparison, Singtel’s 10Gbps bundles, which come with additional goodies such as streaming subscriptions and antivirus software, start at $79 a month. StarHub’s 10Gbps plan starts at $69.95 a month. MyRepublic’s 10Gbps plan costs $59.99 a month after a promotional monthly rate of $49.99 for the first three months.

ViewQwest’s price cut comes after the Infocomm Media Development Authority announced in February a $100 million grant to help ISPs defray the cost of bringing 10Gbps plans to more than half a million households here by 2028.

The upgrade is also expected to support an anticipated surge in internet-linked home appliances and data-intensive apps, like telemedicine and artificial intelligence ones, in the next few years.

While 10Gbps plans are not new in Singapore, they appealed mostly to businesses and tech enthusiasts willing to pay a premium for specialised uses such as industrial virtual reality and online gaming.

ViewQwest said in a statement on Sept 26 that its 10Gbps service covers all of Singapore, and existing customers are welcome to upgrade their plans, regardless of their eligibility to recontract.

Chief executive Vignesa Moorthy said: “By making 10Gbps affordable and accessible nationwide, we want everyone to experience the benefits today – not tomorrow, not after waiting for a contract to end, and not because other providers don’t serve their postal code.”

Local ISPs, including MyRepublic, M1 and StarHub, have made moves to tap the Government’s $100 million investment in the form of grants, which aim to bring down the cost of deployment and prices for consumers.

StarHub’s spokesperson said on Sept 26 that the telco is focused on delivering its flagship UltraSpeed 10Gbps broadband plan. It rolled out its $45-a-month 5Gbps plan tailored for households earlier in 2024 to give customers more options.

People who are keen to set up a 10Gbps network at home will need to buy new modems and Wi-Fi 7 routers, which typically come with most broadband bundles.

Mr Robert Wyrzykowski, principal analyst at network analytics company Opensignal, said Singapore’s ISPs are likely to keep a close watch on whether ViewQwest’s new price will lure in their existing subscribers.

Mr Wyrzykowski said that while rival ISPs are unlikely to change their prices right away, “attractive promotions often inspire fixed broadband subscribers to switch operators relatively soon”.

Speeds of 10Gbps could also attract business customers and consumers who stream or have a lot of devices in the household, or those who want a more reliable broadband service with lower interruption, he added.