Billionaire David Teoh’s TPG Telecom has won its bid for Singapore’s fourth mobile phone licence.
The company had the winning bid at the New Entrant Spectrum Auction in Singapore, acquiring all of the spectrum available for a total of $SG105 million ($A98 million).
The company also anticipates incurring spending $SG200 million ($A188 million) to $SG300 million ($A282 million) to establish a mobile network with nationwide coverage by September 2018.
The Company expects to start delivering services in 2018 and forecasts that it will become EBITDA positive when it reaches a market share of between 5% and 6%.
Singapore already has more than 150% market penetration for mobile phones but wants more competition for the three current players — Singtel, Starhub and M1.
Fitch Ratings believes the potential for a new entrant, which will need to make substantial capital investment, to build market share over the next five years is limited.
“The new entrant will have few cost advantages during the initial period to pass down to consumers to build its competitive position,” Fitch says.
Business Insider Emails & Alerts
Site highlights each day to your inbox.