New telco operator adds variety and lifts competition in mobile market

CONNECTIVITY is central to Singapore's Smart Nation ambitions, which is why innovation is crucial in the telecommunications sector. More often than not, the term "innovation" is code for technological innovation. However, innovation is also required in service offerings, marketing and other aspects which keep a telco business running.

Singapore's three telcos offer state-of-the-art fourth-generation (4G) mobile telephony networks. These - coupled with the fibre-to-the-home (FTTH) that the Next Generation Nationwide Broadband Net (Next Gen NBN) provides - ensure that, infrastructure-wise, Singapore is Smart Nation-ready, especially with a mobile phone penetration of more than 150 per cent and over 100 per cent wired broadband penetration.

Where things need a bit of a shake-up is in the mobile services market. Existing mobile plans offered by the three telcos - Singapore Telecommunications (Singtel), StarHub, and M1 - are strikingly similar. Differentiation is absent, perhaps due to lack of competition. This is something that the government, through the Infocomm Development Authority of Singapore (IDA), has been trying to address for a long time. The feeling is that new players would lead to innovation in pricing and service offerings, thus resulting in a more dynamic market. Last July, IDA announced that it would set aside spectrum for a new telco operator when it auctions spectrum later this year. Till now, two companies (MyRepublic and Consistel) have publicly stated they are interested.