From 2018, Singaporeans can see greater value from the market entry of a new telco without suffering under state companies Singtel, M1 and Starhub, which were long accused of being in cahoots ripping off Singaporean mobile users. Australian company TPG Telecom won the right to be Singapore’s fourth telecom company with a winning bid of S$105 million, higher than its closest contender MyRepublic’s S$102.5 million. Unlike the Temasek Holdings-owned local telcos – Singtel, M1 and Starhub – which dominated the Singapore telecommunication market, TPG Telecom is publicly-listed on the Australian stock exchange.
TPG will commence operations by 2018 and will provide 4G mobile service coverage in all areas.
TPG announced that it expects an incurring capital investments (physical assets, repeaters and telecommunication infrastructure) in the range of S$200 million to S$300 million, fully funded from their Australian operations. The Australian company expressed confidence in gaining at least a 5% market share within a short period because it’s pricing will be highly competitive:
“The Company expects to start delivering services to customers in 2018 and forecasts that it will become EBITDA positive when it reaches a market share of between 5 per cent and 6 per cent which it believes should be achievable within a short period of time due to the excellent value of the offerings that it will bring to the market. This rare opportunity will enable TPG to expand its business into Singapore, bringing tremendous value to Singaporean consumers whilst generating excellent long-term returns for TPG shareholders”
This contract that TPG won is only one of the two auctions offered by the Media Development Authority. There will be a second auction for the “General Spectrum”, which will boast the network and bandwidth resources allowing the winning telco to provide better services to more customers. All four telcos including TPG will compete for the auction.