Here’s why nabbing a domestic roaming deal is key to new entrants’ telco dreams

A 4G network alone won’t lure in subscribers.

On top of telco incumbents aggressive territoriality and the scramble for sufficient capital, aspiring to break into the Singapore telco scene will have to grapple with their lack of a domestic roaming agreement.

DBS noted in a report that it has yet to observe any case globally of a successful telco entrant without roaming in place.

"While it may be relatively easy to roll out network in Singapore than other countries due to its smaller size, high network coverage requirements by the regulator may lead to much higher capex," stated the report.

For instance, starting July, Singapore telcos will have to guarantee that 4G networks cover at least 95% of outdoor areas. From July 2017, this figure is expected to be increased to 99%. From July 2018, 4G coverage in tunnels must be at least 99%, and from January 2019, coverage inside buildings must be at least 85%.

New entrants may get some relaxation initially, but ultimately will have to follow suit. Equipped with no fallback network and only a patchy 4G network, luring in meaningful market share will be a herculean task.