Singapore's GSM operators may have to re-bid for spectrum

Singapore’s Infocomm Development Authority has opened a consultation on alternative uses for the legacy GSM spectrum holdings of SingTel, M1 and StarHub when their licenses expire in September next year. It has flagged a potential liberalisation of the spectrum for existing GSM use in favour of IMT-2000, wireless broadband and low power GSM uses, and says that existing operators will not be guaranteed continued use of their spectrum.

In a discussion paper, the IDA says “IDA is of the view that it is important to ensure the continued provision of nationwide mobile telephone services to both businesses and consumers, including inbound roamers. Thus IDA proposes that operators using the 900 MHz and 1800 MHz spectrum should be required to provide PCMTS (2G mobile) to the public.”

But it also wants to consider alternative uses for the spectrum and in a controversial move, will make existing operators re-bid for their spectrum with the possibility of missing out.

“IDA proposes not to restrict the technologies used to existing 2G technologies, bearing in mind the potential deployment of other technologies capable of providing PCMTS. IDA is of the view that 2G or 3G technologies and other technologies which share a similar platform and allow higher speed data services, such as GPRS, EDGE or HSDPA/HSUPA/HSPA, can be deployed in the frequency bands, as long as the spectrum is used for the provision of PCMTS.”

It continues by stating that allowing 3G in these bands will further enable Singapore to unleash the possibilities of higher speed data services and more innovative mobile applications. In addition, if more mobile subscribers move to 3G and 3G traffic becomes more data-centric, there may be a need for more spectrum for 3G services in future.

OTHER PLATFORMS: Further, IDA, continues, says it “is aware that there may be other technologies, existing or future, that may not be classified as 2G or 3G technologies or their evolved versions, but yet are capable of providing PCMTS. Should operators wish to deploy these technologies in the frequency bands, IDA will assess such requests on a case-by-case basis, taking into account issues such as the technical interference between these technologies and technologies deployed in the neighbouring frequency bands.”

The paper says with the expiry of the existing 2G Spectrum Rights, together with spectrum in the 1800MHz band that is currently unused, there will be 20 lots of spectrum that can potentially be issued, with 5 lots in the 900MHz frequency band and 15 lots in the 1800MHz frequency band. In addition to spectrum in the 900MHz and 1800MHz frequency bands, some spectrum in the 880MHz to 890MHz and 925MHz to 935MHz band (the Extended GSM or “EGSM” band) is also unused today.

The IDA says its preliminary proposal is to make available all 5 lots of spectrum in the 900 MHz frequency band, as well as 12 lots of spectrum in the 1800 MHz band for allocation. Controversially, it will not give the three existing operators the right of first refusal but will propose a  “greenfields” allocation.

“IDA is … proposing that the spectrum be allocated as a ‘greenfield’ with no reservation of spectrum for existing 2G operators. In a ‘greenfield’ allocation, there is a possibility that existing 2G operators may not obtain the same frequency bands, or the same amount of spectrum as what they have today. They might in turn need to adjust their networks according to their new spectrum allocation. Nevertheless, IDA views the resultant impact of a ‘greenfield’ allocation as part of the risks that operators will have to bear in their operations, similar to the business risks associated with leasing or acquiring other input products or as a result of market competition or change in market environment. A ‘greenfield’ allocation would be more effective in ensuring that the spectrum is used efficiently, for the long term benefit of the market,” the report says.  

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