Cost falling for 3G

date: May 16, 2001

Cheif executives of SingTel Mobile said on Tuesday the cost of building 3G wireless networks will be lower than forecast several months ago because existing network can be upgraded and given the current poor condition of the telecom sector, vendors have to lower prices to win contracts.

SingTel reassessed the market condition during the telecom slump and saw the price came down on capital expenditure for building 3G networks. Competitions between equipment vendors have also led to lower price.

Last year SingTel predicted it would cost around S$1billion over 10 years on its 3G network in Singapore, but the price came down substantially over the last 12-18 months.

Operators first assumed they will need to build the 3G networks from scratch, but found out upgrading from 2G to 3G was relatively cheap because the 2G network is 3G ready.

"To get 3G, we only need to add the wcdma modules in", said the Chief executives of SingTel Mobile and added, new starters without a 2G network will cost twice as much.

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