The IMDA has closed a beauty contest, which will lead to the creation of two nationwide 5G networks.
Background: The Infocomm Media Development Authority of Singapore (IMDA) set out its vision for 5G during 2019. As part of that, in October 2019 it decided to facilitate two 5G nationwide networks, with two optimally sized spectrum packages to deliver full-fledged 5G capabilities. The so called “initial wave” of allocation will relate to the 3.5GHz, 26GHz, and 28GHz bands, to be awarded through a call for proposal (CFP) approach.
Three operators have run for the licences: On 17 February 2020, the IMDA announced the closing of the CFP. It received three proposals – one each from Singtel and TPG respectively, and a joint submission from StarHub and M1. The two spectrum packages available include 100MHz in the 3.5GHz band, and 800MHz in the mmWave bands (26GHz and 28GHz). For the operator which fails to secure one of those packages, there will still be the possibility of localised deployment in the mmWave bands.
What will matter: The CFP process looks closer to a beauty contest than an auction. In its decision of October 2019, the IMDA set out key obligations and requirements, which include at least 50% coverage within two years of the start of the 3.5GHz spectrum right; use of the mmWave band within 12 months from assignment; and meeting resilience and cybersecurity requirements as stipulated in the relevant IMDA Codes of Practice. Licensees will also have to provide 5G wholesale services to other MNOs/MVNOs upon request. Applicants had to offer a price for one lot of 3.5GHz spectrum, which must be higher than SGD55m (USD39.5m). Network design and resilience will account for 40% of the evaluation, followed by rollout and performance (35%), price (15%) and financial capability (10%). The IMDA aims to complete the process by mid-2020.
