SingTel Mobile reviews 3G strategy

date: June 15, 2002

SingTel Mobile announced that it will postpone the award of the contract for the construction and development of its 3G mobile network.

SingTel Mobile’s Chief Executive Officer, Mr Lucas Chow, said that the company has no compelling reason to rush into awarding the contract at the moment. “We are adopting a cautious approach towards 3G and have decided not to award the contract at this point in time. The technology is still new and very much evolving, while the mass rollout of 3G handsets remains uncertain. Furthermore, the development of 3G applications around the world has not taken off as rapidly as expected.”

Mr Chow added: “There is absolutely no advantage to leapfrog and launch a 3G network simply for the sake of doing so. What is important for SingTel is that our customers must first be able to reap the benefits promised by a broadband, high-speed wireless network. In order for this to happen, there have to be useful applications which consumers would want to pay for.”

IDA deadline

Notwithstanding this, SingTel Mobile has been conducting 3G technology trials with vendors over the last 18 months. Three groups have been shortlisted to participate in the 3G tender. They are Ericsson, Nokia and a consortium consisting of Siemens IC Mobile, NEC Corporation and ITOCHU Corporation.

SingTel Mobile is currently evaluating the tender and making sure that its new 3G system will be compatible with its existing GSM networks. It expects to be able to offer 3G services on a selective basis in 2003 and meet the deadline of end 2004 set by the Infocomm Development Authority of Singapore (IDA) for nationwide rollout of its 3G network.

Mr Chow said: “Mobile operators have learnt valuable lessons over the past years from introducing new mobile technologies such as WAP and GPRS to customers. The main learning point has been that the introduction of new services should be driven not by the availability of technology, but by market demand and consumer benefit.”

Mr Chow said, “SingTel Mobile remains committed to building a world-class 3G network so that our customers can enjoy broadband services while on the move. Our focus remains on providing multimedia and broadband services that will best meet their lifestyle and data communication needs anywhere, anytime.”

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