IDA overrides incumbents, rolls out the red carpet for fourth telco operator

A spectrum auction will be held in early 2016.

The Infocomm Development Authority (IDA) yesterday rolled out the red carpet for a fourth mobile network operator (MNO) in Singapore. 

IDA revealed that it will hold a spectrum auction in early 2016, which will make available a total of 225 MHz of spectrum for mobile services.

IDA said that the indicative auction reserve price for the 700 MHz and 900 MHz bands is set at $20 million per 5 MHz pair, while that for the 2.3 GHz and 2.5 GHz bands is set at $5 million per 5 MHz block.

The regulator also said that it will help facilitate the entry of a fourth operator by setting aside 60 MHz out of the 225 MHz of spectrum at a lower indicative reserve package price of S$40 million, for a spectrum auction that is opened only to potential new entrants.

“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 new entrant who successfully bids for this set-aside spectrum package is required to deploy its own network and achieve nationwide rollout by end September 2018,” the IDA said.

IDA also quashed incumbent telcos' concerns that the entry of a new operator may lead to under-investment in networks.

“The entry of a new mobile player will increase competition in the mobile services market. A new entrant is likely to bring about a wider variety of innovative services and more competitive offerings to the benefit of end-users.In addition, a new entrant may incentivise incumbents to invest in infrastructure upgrades leading to an improved quality of experience for consumers,” the regulator noted.