TPG Telecom will be the 4th telco in Singapore after it made the winning bid of S$105 million for the spectrum. TPG will be provisionally allocated 60MHz of spectrum band – 20MHz in the 900MHz band and 40MHz in the 2.3GHz band – subject to the relevant spectrum fees being paid, according to the press release.
The new spectrum rights are expected to commence on 1 April 2017 at the earliest.
To facilitate the entry of a new mobile network operator (MNO), IMDA had set aside the 60 MHz of spectrum in the NESA that only pre-qualified prospective new entrant bidders may bid for. The entry of the new MNO is expected to enhance innovation and competition in the mobile market.
TPG will be required to utilise the allocated spectrum to provide nationwide street level coverage for 4G within 18 months from the start of the new spectrum rights; road tunnels and in-building service coverage within 30 months from the start of the new spectrum rights; and coverage for MRT underground stations/lines within 54 months from the start of the new spectrum rights.
Based on the above timeline, we should expect the new 4G network to be ready by 2018. Current telco users might not want to switch as 99.9% outdoor coverage should be ready within 18 months from 1st Apr 2017. As for in building and MRT tunnels will most likely have 99.9% coverage by Oct 2019 (30 months from 1st Apr 2017).
TPG Share price drop 1 cent and closed at AUD 7.22 on ASX.