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Fourth telecom provider on the cards for Singapore
The news of a potential fourth telecoms provider entering the local market is music to the ears of consumers. The prospect of better deals, innovative new service and improved coverage sparked by a bit of friendly competition will undoubtedly excite many.
The auction of airwaves is to be held later this year by the Singaporean Infocomm Development Authority (IDA), and up for grabs will be 900MHz and 2.3GHz of sector. The initial auction will be for establishing potential new entrants to the Singapore telecoms industry, which currently has just three providers.
It will be followed by a second auction between the reigning three companies, which are Singtel, StarHub and M1, as well as the potential new firm which will emerge from the first round of competition.
Who could be the next telecom provider in Singapore?
So far registered interest has been promising. From large overseas conglomerates down to firms which have only just obtained registered status, there are several eyes on this coveted prize. So who are they, and what has sparked their interest considering a similar auction in 2013 introduced no new businesses to Singapore’s telecom market?
TPG Telecom
Source: TPG Telecom
Australia’s TPG was founded in 2008 as a merger. In Australia it is the second largest internet service provider and the largest mobile virtual network operator – the latter being achieved last year following TPG’s $1.56 billion takeover of fellow internet service provider iiNet. As a virtual network operator, it struck a deal with Vodafone to migrate its services to their network from Optus. TPG also is expected to post 2016 fiscal year profits of around AUS$770 million. It’s been shaking up its service recently, and while the firm did recently walk away from a potential deal with Vodafone in New Zealand, it’s clear that TPG’s focus of late has been on expansion.
MyRepublic
Source: SGX
Already an established fibre broadband services provider, MyRepublic has not been quiet about its intent to become the country’s fourth mobile provider. It did so by revealing two new mobile data plans for customers earlier this year, which are to include unlimited data for S$80 a month (free for 12 months for existing subscribers), and a 20% discount if subscribing in a certain timeframe. The “frustration-free” provider currently has a 5% share of the Singapore broadband market, and claimed its primary concern, if successful, would be to roll out a “pre-5G” network. Its chief executive has also reassured consumers, investors and IDA board members alike that it already has around 80% of the required capacities for a mobile telco in place, but will it get the chance to utilise them?
airYotta
Source: Singapore Business Review
It would not be held against you for questioning who or what airYotta is exactly. Until they declared interest for the auction in September, airYotta were virtually unknown and only fully registered as a company one week before the close of the auction interest registration period. But this little-known firm has big plans, as it aspires to be Singapore’s first data-led telco with the roll out of a sophisticated 4.5G Advanced Pro network. The network will be a prelude to 5G, like MyRepublic, but it would surpass the most advanced standard for telcos at present, which is 4G. AirYotta claims to be backed by a “single-purpose fund dedicated to wireless ventures, and fully regulated by the Money Authority of Singapore.” Unwilling as they may be to reveal their generous benefactor, the fund has served them well as the reported minimum amount required for the auction bid stands at S$300 million.
The three worthy competitors have all come under close scrutiny since announcing their respective interests in becoming Singapore’s fourth telecom provider. The IDA has made clear that a fourth provider would need the ability to deploy nationwide outdoor coverage by October 2018, with other milestones to be achieved by 2019 an 2021. So far each entrant is working hard to demonstrate that through size, experience, funding or vision it can achieve not only its own pledges but the requirements of the IDA as well. All applicants will find out whether they have successfully qualified for the auction later this year.
The auction itself will be hotly anticipated, particularly after the auction of 2013 saw Singtel, StarHub and M1 each awarded the exact amounts of spectrum data they had bid for when no new entrant to the market emerged. It was reported at the time that supply exceeded demand, but in the last three years that ratio seems to have shifted as the market yearns for a more distinctive player offering to better meet customers’ needs and pave the way for 5G. A shakeup in the telecoms market would also be a vital advantage to Singapore’s ongoing mission to become a Smart Nation. As such, remember the names TPG, MyRepublic and airYotta – one could be your mobile provider in a few short years.
(By Sarah Thorp)
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