Singapore has proposed facilitating the entry of a fourth mobile operator by reserving a chunk of spectrum and selling it at a discount.
The Infocomm Development Authority of Singapore (IDA) plans to allocate 225 MHz of spectrum for mobile broadband use in early 2016. The candidate frequencies are in the 700 MHz, 900 MHz, 2.3 GHz and 2.5 GHz bands.
The regulator has proposed indicative reserve prices of S$20 million (& euro;13.4 million) per 5 MHz of paired spectrum in the 700 MHz and 900 MHz bands, and S$5 million per 5 MHz block of spectrum in the 2.3 GHz and 2.5 GHz bands.
In order to attract new players to Singapore’s mature mobile market, the IDA has proposed reserving 60 MHz of that 225 MHz and offering it with a reserve price of just S$40 million for the full amount. It did not specify which bands would make up the 60 MHz.
"This is in recognition of the fact that a new entrant will face entry barriers in a mature market, given the significant upfront capital investments required to deploy nationwide services for consumers," the IDA said in a statement on Tuesday.
The winner of the reserved spectrum would be required to reach nationwide coverage by the end of September 2018.
"A new entrant is likely to bring about a wider variety of innovative services and more competitive offerings to the benefit of end-user," the IDA said.
The IDA has launched a public consultation on Tuesday’s proposals, giving interested parties until 12 August to submit feedback.
