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Singapore looks to entice fourth player to its mobile market

8/07/2015 by Paul Clayson


Singapore has cleared the way for a fourth player to enter the country's mobile market by offering spectrum at a discounted price.

As ZDNet reports, the reserve package price of spectrum set aside for a new mobile player has been cut to S$40 million (US$29.63 million), in an auction open only to potential new entrants.

Some 60 MHz out of 225 MHz of spectrum is to be made available at the auction, slated for early 2016, as the Infocomm Development Authority of Singapore (IDA) believes there is only room for one new entrant into the local mobile market.

The telecoms industry regulator also confirmed that new mobile virtual network operators (MVNOs) would be making their way into the market in the proposed spectrum allocation exercise.

In welcoming a fourth operator into the market, Singapore would benefit from the increased competition, new services and more competitive offerings, IDA claimed.

It added that the increasing prominence of the Internet of Things (IoT) and machine-to-machine communication will offer new growth opportunities for mobile players.

The spectrum will be available on the basis that the new operator is able to deploy and obtain nationwide network rollout by the end of September 2018.

The IDA acknowledged that the new player will have to overcome difficulties associated with entering a mature market, while a nationwide rollout of mobile services will not come without significant capital investments. However, it believes these potential complications are reflected in the reduced package reserve price.

"IDA has always been open to the entry of telcos that can bring about innovative and competitive services in the market, and enhance mobile broadband services on a sustainable basis," said Jacqueline Poh, IDA's managing director.



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