IDA dead-set on breaking telco oligopoly with entry of fourth operator

To spur competition in the market.

The Infocomm Development Authority (IDA) appears dead-set on allowing a fourth telco provider to operate in Singapore to spur competition in the market.

Although uncertainties continue to persist--such as whether the 900MHz or 2300MHz frequency band will be allocated-UOB Kay Hian believes that authorities are determined to facilitate the entry of a fourth mobile operator.

“We believe the government intends to facilitate the entry of a fourth mobile operator. A new entrant would spur competition in the mobile market and consumers would benefit through more attractive pricing and innovative services,” UOB Kay Hian said in a report.

Here’s more from UOB Kay Hian:

However, whether the 900MHz or 2300MHz frequency band is allocated makes a big difference to the new entrant’s ability to compete. The IDA has not announced the framework for the upcoming spectrum auction.

We had expected a portion of the 900MHz frequency band to be set aside for potential new entrants. Contrary to our earlier expectations, we believe the authorities could consider allocating a portion of the 2300MHz frequency band to the fourth mobile operator

IDA has yet to release its assessment of the submissions to its original industry consultation. It has also not announced the framework for the upcoming spectrum auction, including qualifying criteria for new entrants.