Singapore Telecommunications Ltd (Singtel) shares declined approximately 2.4% to S$4.43 during Wednesday afternoon trading, as the telecom operator advanced with a 50Gbps fibre broadband trial announced earlier this week. The stock fluctuated between S$4.42 and S$4.56 throughout the session, with its earnings report scheduled for February 18.
Singtel has initiated a technical trial for 50 gigabits per second fibre broadband—the first of its kind by an operator in Singapore—without confirming a timeline for a commercial launch. The pilot utilizes XGS-PON (10 Gigabit Symmetrical Passive Optical Network), a fibre access standard, to rigorously test whether networks can sustain significantly higher speeds while maintaining low latency, the delay in data transfer, as households and businesses handle more demanding AI and cloud workloads. “This next evolution in fibre broadband connectivity helps ensure that homes and businesses can continue to support increasingly immersive and AI-enabled digital experiences,” stated Singtel Singapore CEO Ng Tian Chong.
The trial commences as investors seek more tangible returns from network upgrades in a mature home market, where competition on pricing and product differentiation is intense. Following a robust first half, Singtel expanded its operating companies' earnings guidance to "high single-digit to low double-digit" growth, while its Australian subsidiary Optus remains a key focus area after experiencing operational challenges.
The wider Singapore market hovered near record levels, with the Straits Times Index edging up about 0.02% on Wednesday after a substantial 1.27% surge in the previous trading session.
However, execution risks persist at Optus, which has encountered increased scrutiny following network incidents. An investigation into a September emergency-call outage identified failures during a firewall upgrade and indicated the Optus board was considering actions ranging "from financial penalties through to termination" for responsible parties.