Four line up for Singapore 3G licences

Only four companies have applied to bid for the four third-generation (3G) mobile communications licences up for sale in Singapore, ending any remaining speculation of frenzied bidding.

Bids were not expected to exceed the already reduced minimum price of 100 million Singapore dollars (56.8 million US), analysts said.

The only applicants to meet Monday's deadline were Hong Kong-based Sunday Communications and the three Singapore telecom companies Singapore Telecommunications (SingTel), MobileOne and StarHub.

Sunday's executive director Richard Siemens said he did not expect to "need to pay more than 100 million dollars for the licence," the Straits Times reported Tuesday.

When the 3G auction was first announced last October there were estimates each licence would return at least two billion dollars, after similar auctions proved a windfall for European governments.

But as interest waned the Singapore auction was first put back from February to April and then the government slashed the licence reserve price from 150 million Singapore dollars to 100 million Singapore dollars to arouse interest.

MobileOne chief executive Neil Montefiore said having four bidders "reflects the more rational approach that many people are taking to the auction of the spectrum."

The 3G system allows dramatically faster mobile applications than those currently possible, including video communication using mobile phones and high-speed Internet access.

Telecoms watchdog the Infocomm Development Authority said it will assess the four applications this week before confirming which companies will be eligible to bid in the April 23 auction.