THE rollout of fifth generation mobile telephony, 5G, in Singapore starting from 2020 will fundamentally change the nature of the telecommunication industry.

The government signalled its intention of keeping its focus on development of capability, innovation and creation of value by deciding to allocate 5G spectrum through a Call for Proposal (CFP) rather than taking the auction route that would have maximised revenue. The CFP will focus on identifying which two operators can deliver the best value to the Singapore economy through 5G infrastructure and services. The government will also allocate spectrum for the remaining two telcos to build what is being called localised networks, catering mainly to specific-use cases.

The emphasis on value creation and innovation is significant because 5G networks and the ecosystems that get built around them will form the backbone of Singapore's digital economy and Smart Nation. The government needs to ensure that it gets things right to raise Singapore's standing as a place to do business. The republic is not alone in taking this approach - China and Japan, for example, have decided to allocate 5G spectrum at a token fee instead of holding an auction in order to allow telcos to roll out services and networks faster.