We have made only modest forecast adjustments this quarter as both the fixed and mobilemarkets continue to perform in line with BMI forecasts. The results of the latest mobile spectrum auctionconfirm that the three existing operators are gearing up for heightened competition and advanced servicesinnovation in the market. Furthermore, we note that TPG Telecom, the anticipated new comer in the marketwill continue to explore market disruptive strategies to gain noticeable traction in the mature market. With3G/4G rates nearing 100% penetration and organic subscriber growth prospects low, the market is drivenby converged services and the upselling of premium value added services (VAS). The increased competitionfrom the introduction of a fourth carrier will likely hasten ARPU decline over our forecast period. Webelieve opportunities are ripe in the Internet of Things (IoT) market. We expect the launch of new servicesand innovative products in 2017 and beyond to bolster revenue growth and subscriber retention.
Latest Updates And Industry Developments
Australian TPG Telecom acquired the fourth national mobile operator license in Q416 for an estimatedUSD72.8mn. TPG was allotted 60MHz of mobile spectrum in April 2017 and has 18 months to deploynationwide 4G capabilities. We expect the prospective new mobile operator to start operating in H118.
TPG secured another 10MHz of airwaves for an additional SGD23.8mn in Q217, suggesting that thecompany remains committed towards developing a strong presence in the country.