Fourth telco should not be just about cheaper call and data rates

THE reiteration by the CEOs of Singtel and MyRepublic that the play for a potential fourth mobile phone network operator should not be based just on lower prices is welcome. While cheaper data bundles and call rates are good news for consumers, a business model solely based on lower prices is not good for the long-term sustainability and quality of Singapore's mobile network.

In an interview after a results briefing on Friday, Singtel CEO Chua Sock Koong noted that the only way a new operator can gain customers will be "by way of reducing prices". She added: "Clearly just leading prices down, it's not good for the sustainability of the industry." She later clarified that this did not mean that Singtel did not want competition and lower prices. "We will continue to offer the best services at the most competitive prices."

Malcolm Rodrigues, MyRepublic's CEO, said in a Facebook posting on the same day that his company, which hopes to bid for the fourth telco licence, "never competed on price in any market". He went on to claim that the incumbents' networks "are not ready for the future", adding that "there is a desperate need for innovation in Singapore".