The Fourth Telco

The news of  4th Telco operator in Singapore have been on going for some time and yesterday news of spectrum rights commence in April 2017 will indicate the approx. start date of the 4th Telco operator .

To encourage competition, IDA will hold a spectrum auction only for the new entrant who do not currently operate a nationwide mobile networks in Singapore.

Given mobile penetration rate of nearly 150% in Singapore, the 4th operator will have to dangle carrots such as reduced price plans & more data bundle to consumer in order to capture the market share from existing incumbents. The potential 4th Telco operator have commented that the mobile market in Singapore have stagnated & need innovative plans to move the industry ahead. I am unaware what kinds of innovation idea or new technology the new operator have but as far as I concerned, SingTel is conducting trial for 5G networks.

Unlimited data offering will be the game changer but it is not feasible as there is limited amount of data that can be shared within the same bandwidth.

If we rewind back to 2001 ,Virgin Mobile had a tie up with SingTel to operate as MVNO((Mobile Virtual Network Operator) exited after a year of operation in Singapore & had only captured 1% of the market share at that point of time.

 In my opinion , the end result will lead to a price war between the operators which will led to poorer mobile connection ,slower network as operators had reduced profits to invest in their networks and eventually the consumers are the ones who suffer.

*Vested in SingTel*

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