By Alfred Siew, Technology Correspondent

StarHub and MobileOne's (M1) bid to build Singapore's next-generation broadband network suffered a big blow on Wednesday after partner and consortium leader City Telecom (Hong Kong) pulled out of the group in a surprise move.

The consortium, called Infinity, is in a race against rival group OpenNet to build new cyber highways that will connect almost every home, office and school here by 2015.

Up for grabs is a $750 million government contract for laying the cables to these premises.

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