SINGAPORE-Singapore has fast-forwarded its liberalization plans for the telecommunications sector by a staggering two years, effectively throwing the industry wide open almost immediately.
The move, which comes into effect on 1 April this year, is the island state’s boldest move in the communications arena thus far.
The decision means any company, subject to being granted a license by the government, can in two months’ time offer telecom services in competition with existing players like SingTel, StarHub, M1 and ST SunPage.
It also means cellular operator M1 and paging operators Hutchison IntraPage and ST SunPage can widen their service offerings.
In addition, the Singapore government has decided to do away immediately with limits on foreign ownership of telecommunications companies. This means foreign players can now set up shop without having to find strong local partners to take majority stakes.
The government’s bold decision, forced upon it by the rapid changes of technologies and increasing competition from more liberalized nodes like Hong Kong and Australia, is aimed at enhancing Singapore’s attractiveness as a regional info-communications hub.
In announcing the move, Communications and Information Technology Minister Yeo Cheow Tong explained, “Our phased liberalization approach has led key global info-communications players to perceive us as less competitive and attractive.”
Under the new licensing framework, the government has decided not to restrict the number of licenses to be awarded. The only exception will be in the area of mobile phone services, where there are “spectrum constraints.”
According to industry regulator Info-Communications Development Authority of Singapore (IDA), those interested in deploying wireless networks will be licensed in a separate exercise.
IDA plans to issue consultation papers seeking the views and comments of the industry and members of the public on spectrum and service-provisioning issues before publishing the appropriate licensing frameworks for the various wireless-based services.
It also intends to issue a consultation paper on the “Deployment of Fixed Wireless Broadband Networks and Service Provisioning” by 31 March to invite comments on the appropriate licensing and spectrum-allocation framework.
When the IDA sought feedback on how many cellular licenses to issue for third-generation services (3G) late last year, it saw strong opposition from existing operators SingTel Mobile and M1.
Both said they were against the licensing of a fourth service provider, even though the industry regulator had said it was prepared to award up to six licenses.
In their consultation papers to the IDA, both companies said licenses to operate third-generation (3G) mobile phone services should be given only to the three existing operators-themselves and new player, StarHub.
They also said they would prefer the award of these licenses be made this year or as soon as possible.
In contrast, fixed-line and mobile operator StarHub, which is due to begin operations on 1 April, said it “preferred and recommended” that up to four operators be licensed.
