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Would-be newcomers will have to pay at least S$35 million for new spectrum package; new operator could launch services from April 2017.
Singapore’s telecoms regulator on Thursday shared its plans for this year’s multi-band spectrum auction, and set a reserve price for the frequencies it has reserved for a new mobile operator.
The Infocomm Development Authority of Singapore (IDA) will carry out the sale of spectrum in the 700 MHz, 900 MHz, 2.3 GHz and 2.5 GHz bands before the end of this year. The allocation process will take place in two parts, the first being the auction of a package of frequencies reserved for a new operator.
Companies that do not already operate a nationwide mobile network in Singapore will be able to take part in the new entrant auction, provided they pass the prequalification phase, the regulator said.
Would-be new entrants will be able to bid on a package of 60 MHz of spectrum in the 900 MHz and 2.3 GHz bands, which carries a reserve price of S$35 million (€22.5 million).
"Potential new entrants…indicated strong interest to enter the mobile market," the IDA said, in a statement. It did not give any further indication of how many companies it expects to take part in the auction.
However, it has made provision for the reserved spectrum in the event that there is no qualified bidder for the new entrant auction: it will be sold in part two of the process, which is open to the country’s existing operators, Singtel, StarHub and M1, in addition to the winner of the new entrant package.
This general auction will include 175 MHz of spectrum across all four available bands; Singapore has 235 MHz up for grabs in total.
The 700-MHz and 900-MHz frequencies will be split into lots of 2×5 MHz and will carry a minimum price of S$20 million per lot.
5-MHz lots of 2.3-GHz and 2.5-GHz frequencies have a reserve price of S$3 million.
Licences in the 700 MHz band will start from 1 January 2018 and will have a duration of 15 years. All other bands are available from 1 April 2017 and licences will last for 16 years.
"The spectrum auction is designed with the interests of consumers in mind. The spectrum made available will allow all mobile operators to roll out or enhance their high speed networks as early as 2017," said IDA managing director Jacqueline Poh.
"Having more players in the market will give consumers a greater choice in selecting an offering that best suits their needs," Poh said.
Should a new entrant win spectrum it will be allowed what the IDA describes as a "reasonable period" to build out its network.
It will be required to offer nationwide coverage outdoors by 30 September 2018, road tunnel and in-building coverage a year later, and coverage of the underground rail network by the end of September 2021.
