Singapore to attract fourth telco with spectrum discount

Singapore to attract fourth telco with spectrum discount

Singapore’s Infocomm Development Authority of Singapore (IDA) plans to introduce a fourth mobile operator to the market by setting aside spectrum at a lower reserve price.

The regulator said it would reduce the reserve package price of spectrum to $26.63 million (S$40 million) and set aside 60MHz out of the 225MHz of spectrum for a fourth player. 

The announcement follows a public consultation from the IDA in April 2014 on the allocation of spectrum for mobile broadband services as well as the introduction of further competition to the mobile market in Singapore. 

According to IDA, several industry players have supported the allocation of more spectrum in view of the increasing consumer demand for mobile data services. The regulator said it has also received strong interest from potential entrants

“A new entrant is likely to bring about a wider variety of innovative services and more competitive offerings to the benefit of end-users. For example, the entry of new broadband retail service providers offering services over the Nationwide Broadband Network (NBN) has led to the introduction of innovative broadband packages at competitive prices in the fixed broadband market,” said the regulator.

“Globally, IDA has observed that markets such as France and Spain experienced competitive mobile price plans and the introduction of new service offerings following the entry of a new mobile player. In addition, a new entrant may incentivise incumbents to invest in infrastructure upgrades leading to an improved quality of experience for consumers.”

The spectrum auction, which is open only to potential entrants, is expected to take place in early 2016. The successful fourth operator is required to deploy its own network and roll out its services nationwide by September 2018. 

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