With 5G telephony, government needs to keep an eye on spectrum pricing

The recent decision to waive fees for technological trials for the next generation of mobile telephony, 5G, shows that the government is steadfast in its commitment to usher in state-of-the-art communications technology in Singapore to go alongside the country's Smart Nation vision.

The idea behind the waiver decision is to lower regulatory barriers and encourage the industry to explore the potential benefits and applications of 5G.

The fee waiver would allow companies - which would otherwise baulk at taking part in trials due to spectrum cost - the opportunity to try out new and innovative technologies. This will result in more competition as these newcomers would be able to work side-by-side with the incumbents. Ushering in competition in the market was also the main reason behind the government's earlier decision to invite a fourth telco to operate in Singapore and to reserve 60 megahertz (MHz) of spectrum for it at a relatively cheaper price point. Eventually, Australian telco operator TPG Telecom won the right to become Singapore's fourth telco. It paid S$105 million for 60 MHz of what is widely considered good-quality spectrum. However, the lower price paid by TPG has had some unintended consequences.