A recent study by Tarifica reveals a stark contrast in broadband pricing between Singapore and the United States. Whilst Singaporean households can access 10 gigabit fibre broadband for as low as US$22 per month, American consumers face prices up to US$195 for similar services. This disparity is attributed to differing market structures and regulations, not technological differences.
Singapore’s wholesale open-access model, established in 2008, allows internet service providers to lease capacity from a shared fibre network, fostering a competitive market. “In Singapore, the effects of this structure are easy to see,” said Soichi Nakajima, Vice President of Data and Analysis at Tarifica. “Multiple ISPs compete vigorously, prices adjust quickly, and very high speeds are treated as standard for households.”
In contrast, the US market is dominated by vertically integrated operators, limiting competition and allowing broadband to be marketed as a premium service. This results in American consumers paying significantly more per gigabit than their Singaporean counterparts.
Tarifica’s findings suggest that broadband affordability will increasingly influence digital inclusion and national competitiveness. As demand for high-speed internet grows with advancements in technology, the ability to offer affordable broadband will determine how quickly consumers and businesses can adopt new services. The study underscores the importance of market design in shaping access to digital resources, with Singapore’s model promoting widespread connectivity and the US model maintaining broadband as a luxury.
