Thursday, October 01, 2009

So Singtel wins the BPL rights

After losing the BBC channels, and apparently lacklustre take up of their Football Frenzy package, Singtel was forced to make a decision on the viability of mioTV. Instead of cutting loss, they have decided to double down and take the fight to Starhub.

Instead of letting Starhub win the bid at their threshold of pain, Singtel probably bid so high that they are going to bleed seriously for at least a year as they have to keep prices low enough to get customers to switch.

But a giant like Singtel can afford to bleed, for years, and it is the right strategy for a corporate giant to corner the market. After all, neither MDA nor the Competition Commission seem to care. When Starhub becomes a marginalised player like M1, Singtel will be free to charge as they please.

Whoever wins, the Singaporean consumer loses. MDA CEO will still collect his million dollar pay cheque.

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