StarHub CEO warns: ultra-low prices could undermine quality and security
Singapore’s telecom landscape has long been defined by relentless price competition and industry restructuring. After decades of squeezing margins in pursuit of market share, executives and regulators now face a delicate question: can ultra-low telco prices persist without eroding service quality and security? StarHub chief executive Nikhil Eapen argues that the answer may be no, and that a move back toward a three-player market could be the most pragmatic path to protecting consumer interests while preserving robust networks.
Why pricing power matters for network reliability
In markets where a handful of players dominate, operators often balance investments in infrastructure with consumer rebates. Eapen’s perspective is that aggressive price cutting can lead to underinvestment in critical areas such as network capacity, security monitoring, and customer support. When margins shrink too far, utilities like maintenance cycles, software patching cadence, and rapid deployment of next‑generation technologies risk being deprioritized.
Singapore’s quality of service, which includes network latency, uptime, and resilience against outages, depends on continuous capital expenditure and skilled personnel. If price competition erodes these funding streams, the result could be more frequent congestion, slower upgrades to 5G and beyond, and longer incident response times. Eapen emphasizes that safeguarding service quality requires a sustainable business model rather than a race to the bottom on pricing.
Security as a core consumer concern
Beyond performance, security is a fundamental pillar of modern telecoms. The CEO notes that ultra-cheap plans may inadvertently push operators to defer or minimize essential security investments, including threat detection, identity protection, and secure software supply chains. In an era of rising cyber risk, a stretched budget can translate into slower patch management and reduced ability to rapidly contain breaches, potentially exposing customers to higher risk levels.
Singapore’s regulators have repeatedly highlighted the importance of safeguarding critical communications infrastructure. Eapen’s stance aligns with a broader industry push that emphasizes stable, well‑funded networks as a prerequisite for maintaining trust and resilience in communications services. Consumers benefit most when pricing competition coexists with strong quality and security standards.
What a three-player market could mean for consumers
Moving toward a three-player market could recalibrate the balance between price, quality, and security. Fewer players may enable more predictable investment cycles, allowing operators to commit to longer-term network plans, better service-level agreements, and more robust security frameworks. At the same time, regulatory oversight would need to ensure that price competition remains fair and that the remaining operators continue to innovate rather than consolidate too narrowly.
Historically, many telecom ecosystems have found that a moderate number of healthy competitors can deliver both affordable options and strong service quality. For Singapore, this could translate into a more sustainable pricing environment coupled with continuous upgrades to network infrastructure, improved customer support, and enhanced security features baked into every consumer plan.
Implications for regulators, operators, and consumers
Regulators face a balancing act: preserve consumer choice and affordable plans while ensuring networks stay resilient and secure. For operators, maintaining profitability can necessitate recalibrated pricing models, targeted value-added services, and transparent security commitments. Consumers stand to benefit from a telecom sector that blends competitive prices with reliable performance and strong protections against cyber threats.
StarHub’s message may also spur dialogue among other players about sustainable pricing strategies that do not undermine long-term network quality. Rather than a pure price war, the industry could adopt a mixed approach that rewards efficiency, scale, and responsible investment in security and infrastructure.
Conclusion: a sober path forward for Singapore’s telcos
As Singapore’s telco market evolves, the tension between ultra-low prices and the need for high‑quality, secure networks will continue to shape policy and corporate strategy. Nikhil Eapen’s call for a measured reconsideration of the market structure—potentially moving toward a three-player model—reflects a broader industry warning: price, quality, and security must be aligned to protect consumers in the digital age.
