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Singapore Opens Door to Fourth Mobile Operator to Auction Final 3G Spectrum
Singapore Opens Door to Fourth Mobile Operator to Auction Final 3G Spectrum
In an effort to provide additional bandwidth to existing mobile phone operators, the Singapore government on Friday announced its plan to auction the final third-generation (3G) mobile spectrum in November, which could potentially bring in a fourth mobile operator to the city-state.
Singapore,
Singapore,
Singapore
(pr4links.com)
29/09/2010
"In an effort to provide additional bandwidth to existing mobile phone operators, the Singapore government on Friday announced its plan to auction the final third-generation (3G) mobile spectrum in November"
In an effort to provide additional bandwidth to existing mobile phone operators, the Singapore government on Friday announced its plan to auction the final third-generation (3G) mobile spectrum in November, which could potentially bring in a fourth mobile operator to the city-state.
In a set of auction documents posted in its website, the Infocomm Development Authority (IDA) disclosed that the final 3G spectrum will be auctioned off on November 15 as part of the overall plan to provide additional bandwidth to existing operators and help them cope up with the increasing demand for mobile broadband service.
At least three frequency lots, ranging from 1,900 to 2,100 MHz, will be auctioned with a reservation price set at $20 million each, IDA added.
The idea to auction the final 3G spectrum, which has been unused for the past nine years, was first floated in March following complaints by wireless users that cellphone networks are slowing down due to increased broadband use.
For the past three years, the demand for wireless network services in Singapore increased in an outstanding pace with more than 5.5 million consumers now using smartphones and other broadband devices.
With this, IDA also said that it is keeping its door open for a fourth mobile phone operator in the city-state to break Singapore ’s telecommunications trinity–Singapore Telecommunications, StarHub, and M1–which has been unopposed in the last ten years.
However, the telecommunications trinity expressed strong opposition over the development, saying that the government should use the administrative allocation approach instead of auctioning the remaining spectrum.
According to analysts, the Big Three telecoms were doing the same strategy they used in 2001, when four lots of 3G spectrums were auctioned by the government. But the auction was later scrapped after it was only able to garner three bids–SingTel, StarHub, and M1.
Meanwhile, IDA stood firm over its decision, saying that an auction for the remaining 3G spectrum will be a more objective, efficient, and transparent approach.
“We all know that radio-frequency spectrums are becoming scarce and that market-based allocation, such as an auction, will be a more effective solution to ensure that operators can maximize their allocation to those who value them most,” IDA said in the documents.
Under the auction rule, IDA said the Big Three operators can only bid for a maximum of two spectrums while other companies outside Singapore can only join the bidding process if they already have an established business presence in the country.
“Foreign companies have two months to prepare all the documents they need for their initial bids and to setup a Singapore subsidiary firm,” IDA added.
Meanwhile, business registration company Rikvin believes that more advanced communication technology can have a significant impact on the economy as it attracts more foreign businessmen and investors.
“Because every thing is almost done through wireless communication technology, a more powerful bandwidth is needed to meet the growing demand among consumers,” Rikvin added.
Rikvin is an ACRA-accredited company that provides registration and consultation services to local and foreign entrepreneurs who want to setup a Singapore company.
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