The consortium, OpenNet, will design and build an islandwide network offering 95 per cent of homes and offices Internet speeds of up to 1Gbps by June 2012.

At speeds 10 times faster than what is available today, the network will make it possible to roll out new services that require ultra-high-speeds like virtual-reality 3D games or high-definition video-conferencing services.

Users in large households can also enjoy a smoother Internet access with the enlarged pipe.

OpenNet's win over rival consortium Infinity, comprising StarHub, MobileOne and the Qatar Investment Authority, was announced on Friday by Minister for Information, Communications and the Arts Dr Lee Boon Yang.

'For Singapore to remain competitive in the globalised and digital economy, we need to make careful and timely investments in our key economic infrastructure, including our infocomm infrastructure,? said Dr Lee.

Singapore's government will fund as much as S$750 million for the OpenNet group to build the fiber-optic network.

OpenNet will offer wholesale prices of $15 a month for home users and $50 a month for commercial users, said a statement from the consortium.

During the construction and commissioning phase, OpenNet estimates its costs to be about S$1 billion. The group expects to spend S$1 billion to S$2 billion over the 25-year licence period for access to infrastructure.

OpenNet forecasts its shareholder investment requirements to be in the range of S$120 million to S$160 million, which will be required during the construction and commissioning phase.

Mr Art Price, Chairman and CEO, Axia NetMedia, said, 'OpenNet's approach is future proof with no compromises from either the technology or business structure perspectives.'

Mr Allen Lew, SingTel's CEO Singapore, said 'The compelling proposal is a result of the strengths of each consortium partner, such as SingTel's extensive high-quality network of ducts, technical expertise and our considerable experience in deploying fibre in Singapore.'

Added Mr Alan Chan, CEO of SPH, 'OpenNet's proposal will help realise Singapore's vision of being a next generation city. The network paves the way for an advanced broadband infrastructure, supporting seamless connectivity which will boost Singapore?s competitiveness and attractiveness as a global business and infocomm hub.'

SingTel and Axia each own 30 per cent of the venture, while Singapore Press has a 25 per cent stake and Singapore Power 15 per cent. Singapore Press, the city's largest newspaper publisher, owns shares of MobileOne Ltd. and StarHub, which submitted the rival bid.

Ten companies including Alcatel-Lucent, BT Group Plc, Nokia Siemens Networks and NTT West were short-listed to bid for the so-called Next Generation National Broadband Network.

There were 4.2 million high-speed Internet subscribers at the end of Jul, according to the regulator.

Singapore requires separate companies to build and operate the infrastructure. Singapore will pay as much as S$250 million to the company chosen to operate the network.

Singapore has introduced an Intelligent Nation 2015 program to help triple technology-related exports to S$60 billion and create 80,000 jobs. The city also started offering free wireless Internet access for three years starting in Dec 2006.