Singapore’s AI ambitions put telcos to the test, raise ‘dumb pipe’ risk
Singtel outage highlights strain on infrastructure and returns as data demand outpaces monetisation
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[SINGAPORE] Singtel’s recent mechanical fault that triggered widespread outages in Singapore has cast a spotlight on a potential weakness in the Republic’s artificial intelligence (AI) ambitions.
The issue is no longer just about network capacity, but whether the telecommunications providers underpinning the digital backbone are equipped – and sufficiently incentivised – to support the next wave of compute-heavy demand.
Even as AI drives data consumption, local telcos are facing a persistent challenge: flatlining average revenue per user (ARPU). As at Dec 31, Singtel’s mobile ARPU fell slightly to S$23 per month from S$24 per month the previous year, while StarHub’s ARPU remained stagnant at S$22 per month.
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