IDA leaves 3G to commercial sources, almost

date: 23rd January 2001, source: http://www.telecomasia.net/

The Infocomm Development Authority of Singapore has elected to adopt a laissez-faire attitude towards the auction of 3G licenses and the eventual operation of 3G networks, but reserves the right to say no in most cases.

"This auction has been structured to allow maximum industry participation in determining the future of 3G in Singapore," says Yong Ying-I, CEO of IDA.

"Since there are wide-ranging views on what a profitable 3G business model is likely to be, successful bidders may implement any technology standard they feel is appropriate, may form partnerships and alliances as they require, and may resell spectrum as business conditions dictate," Yong said. "IDA is confident this will result in high quality and cost-effective 3G services in Singapore.

While any operator who pre-qualifies and demonstrates its financial and technical capability can bid for licenses, the resale of spectrum, and access to existing 2G networks, as well as the provision of MVNOs have built-in regulatory intervention mechanisms in case commercial negotiations fail.

Winners of 3G licenses will be able to use any technology they choose, and will guarantee five years of operations before any new 3G license are issued. "The IDA will not issue any new 3G licenses before 1 January, 2006 from the additional estimated 160 MHz spectrum identified by the ITU for 3G services," the IDA said.

However, the resale of spectrum will be "subject to regulatory approval" from the IDA, while wholesale arrangements for access to 3G networks will be left to commercial negotiations but the IDA will intervene in "cases of undue restrictive or anti-competitive practices in accordance with the relevant provisions in the Telecom Competition Code of Practice.

In addition, new 3G entrants and Singapore's existing second-generation operators will have 90 days to work out any national roaming agreements between them before the IDA intervenes to help establish a roaming agreement.

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