Three operators will participate in Singapore 2G auction

SINGAPORE—Three telecommunications companies in Singapore indicated they would take part in the upcoming auction of new second-generation (2G) spectrum rights. The three cellular operators that have submitted offers, confirmed by the Infocomm Development Authority of Singapore (IDA), are SingTel Mobile, M1 and Starhub Mobile. The offers were accompanied by bank guarantees. The bank guarantees are equal to the reserve price of the spectrum lot multiplied by the number of lots applied for.
IDA said it would review the initial offers and bank guarantees for compliance with auction regulations. In July, IDA announced the six spectrum lots would be auctioned for a minimum price of US$69,700 per spectrum lot. The outcome of the auction will set the base-year price. Successful bidders can use the spectrum for seven years paying IDA the base-year price for each spectrum block in the first year. The sum will increase by 2.5 percent annually during the remaining six years of the spectrum rights.
Initially, the auction price was payable up-front. IDA later changed the fee structure, so operators of the new spectrum lots would not be faced with an undue financial burden.