Singapore's 2G network closure offers opportunities for telcos: report

SINGAPORE'S telcos will see service monetisation opportunities arising out of the planned closure of the country's 2G networks, said a BMI Research report released on Wednesday.

This is because the spectrum currently utilised for 2G mobile telephony services will be refarmed for 3G/4G mobile broadband - an area Singtel, M1, and StarHub are already adept at exploiting but which has yet to realise its full monetisation potential.

Said BMI: "Making additional bandwidth available to operators will allow them to develop comprehensive OTT (over-the-top) service platforms of their own that can be fully integrated with their wireline broadband and TV businesses, providing a degree of insulation to core revenue streams."

However, BMI noted that much depends on the outcome of proposals to license a fourth mobile operator.

"Candidates MyRepublic and OMGTel threaten to disrupt the market with very low prices; if compelled to engage in a pricing war, the existing players will find it difficult to improve monetisation of higher data consumption.

"They will have to resort to more complex bundling strategies, which pose their own ARPU (average revenue per user) dilution challenges. Proprietary OTT platforms will therefore be but one weapon at the operators' disposal in this reshaped competitive landscape," said BMI.