SINGAPORE-StarHub Chief Executive Terry Clontz said end users would draw the short end of the stick because of the Singapore government’s decision to use the auction method of awarding third-generation licenses. He added any operator would expect to recoup the cost of the 3G network rollout and the cost of acquiring the license through the prices it charges customers.
Clontz said he would have preferred a hybrid method of allocating the licenses. He reiterated StarHub would be aggressive in going after the licenses, adding that not playing in 3G would mean not playing in mobile in the future. Clontz said StarHub would fund its bid and its initial 3G investment of $205 million to $294 million with funds from shareholders, the compensation money it would receive from the government of Singapore and a possible debt-raising exercise from the debt market in the coming six months.
