TPG wins bid to be 4th Telco in Singapore; edges out MyRepublic
Singapore, 14 December 2016 - The Info-communications Media Development Authority (IMDA) today concluded the New Entrant Spectrum Auction (NESA). TPG Telecom Pte Ltd (TPG) made the winning bid of S$105 million, and will be provisionally allocated 60 MHz of spectrum made available in the NESA, comprising 20 MHz in the 900 MHz spectrum band and 40 MHz in the 2.3 GHz spectrum band to provide International Mobile Telecommunications (IMT) and IMT-Advanced services (e.g. 4G services). The new spectrum rights are expected to commence on 1 April 2017 at the earliest.
To facilitate the entry of a new mobile network operator (MNO), IMDA had set aside the 60 MHz of spectrum in the NESA that only pre-qualified prospective new entrant bidders may bid for. The entry of the new MNO is expected to enhance innovation and competition in the mobile market.
TPG will be required to utilise the allocated spectrum to provide nationwide street level coverage for 4G within 18 months from the start of the new spectrum rights; road tunnels and in-building service coverage within 30 months from the start of the new spectrum rights; and coverage for MRT underground stations/lines within 54 months from the start of the new spectrum rights.
IMDA will next proceed with the second stage of the auction, the General Spectrum Auction (GSA), which will be open to the existing MNOs – M1, Singtel Mobile and StarHub Mobile. TPG may also participate in the GSA. IMDA aims to commence the GSA in the first quarter of 2017.
TPG Telecom Pte Ltd is the Singapore subsidiary of Australian telecom company TPG Telecom Ltd. It is the second largest ISP and the largest mobile virtual network operator in Australia with revenues of A$970.9 mil for the financial year-ended 2014.
Total Peripherals Group was established in 1986 by Malaysian-born Australian businessman David Teoh, as an IT company that sold OEM computers and later moved to provide internet and mobile telephone services.
In 2007, TPG took a 70 per cent controlling interest in then struggling Adelaide internet provider Chariot. David Teoh shored up TPG's role as Chariot's parent company a year later, in April 2008, and then quickly followed up with the $225 million reverse takeover of SP Telemedia to bring Soul, Chariot and TPG under the one banner.
TPG's most anticipated rival in Singapore, MyRepublic, lost out in the bidding with a S$103 million bid.
1 The spectrum allocation will only be final when the assignment of the frequencies in the respective bands has been completed after the relevant spectrum fees have been paid.
2 The actual commencement date of the spectrum rights will depend on when the General Spectrum Auction is completed.
3 TPG will be subject to the following spectrum caps: (i) 40 MHz of 700 MHz; (ii) 20 MHz of 900 MHz; and (iii) an aggregate total of 75 MHz.