Ever wonder how companies get rights to things like a telco license, networks, or spectrum access? Well, if you were ever curious to watch the process take place, consider the following leading news story. In Singapore, two companies are duking it out for the forth telco license offered by Infocomm Development Authority, otherwise known as the IDA. With the spectrum auction occuring later in 2016, the companies MyRepublic and Consistel are both making a move. The result of their battle reveal a lot about not only the process of spectrum distribution in Singapore, but of general governmental management of such resources as seen in other places around the world.

A Battle Between Two Juggernauts

At the center of the Telco battle in Singapore is one of raising the necessary capital to put in the leading bid. The CEO of Consistel has recently made it clear that they are capable of producing more than 732 million dollars to get the bid. Requiring a mix of equity and debt in order to fund their bid, Consistel will have to see results in order to make back the money, pay back the creditors, and make a profit overall. Thankfully, Consistel has more than 20 years of history working in Singapore, with significant backing from a number of reputable companies. Having already worked to provide services like 3G coverage in buildings, Consistel considers itself the logical choice as the Telco battle continues to heat up.

The counterbid is coming from the company MyRepublic. While raising the same level of capital is less feasible for their company, they are promising to slash the mobile data prices that are currently being paid if they are given he spectrum. This is a promise that Consistel has not made. Instead, Consistel has remained relatively vague on the details surrounding what they will do with traffic prices. MyRepublic is ultimately attempting to play towards the wallets of consumers, while Consistel is stressing the service and value that their company could add to the position. In the end, with the global market in a slump and people looking to their wallets, it is a challenge identifying where public opinion and the government will sway.

Who Would Make A Better Choice?

With both companies saying that they are the logical choice, let’s take a moment to review their experience and what they bring to the table. MyRepublic is offering slashed rates providing coverage at far less than what an average Singapore resident is paying. Consistel on the otherhand has experience constructing network infrastructure across more than 800 sites in Singapore. While there is no guarantee that localized infrastructure will result in an ability to provide access for everyone well, it does speak to some experience in the field. In contrary, MyRepublic is a bit less experienced in that regard. Ultimately, like us you will have to wait for the later in the year when the IDA decides to put the spectrum up for auction to see who ultimately wins this fight.

About the Author

Morris Edwards is a content writer at companyregistrationinsingapore.com.sg, he writes different topics like " How to Register a Company in Singapore " , Doing Business in Singapore and all topics related to Company Incorporation.

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