We note that TPG Telecom, the anticipated newcomer in the market, will continue to explore market disruptive strategies to gain noticeable traction in the mature market. With 3G/4G rates nearing 100% penetration and organic subscriber growth prospects low, the market is driven by converged services and the upselling of premium value added services (VAS). The increased competition from the introduction of a fourth carrier will likely hasten ARPU decline over our forecast period. BMI also believes that Singapore combines a number of key factors that will make it a frontrunner in 5G and facilitate uptake once the technology is commercialised: a favourable regulatory environment, health market competition, strong consumer readiness with high 4G penetration and data consumption and a push for enterprise IoT solutions.
Latest Updates And Industry Developments
Australian TPG Telecom acquired the fourth national mobile operator license in Q416 for an estimated USD72.8mn. TPG was allotted 60MHz of mobile spectrum in April 2017 and has 18 months to deploy nationwide 4G capabilities. We expect the prospective new mobile operator to start operating in H118. Broadband services provider MyRepublic is also looking to launch mobile services as an MVNO in Singapore.