16 January 2013 - The Infocomm Development Authority of Singapore today announced its allocation framework for spectrum for fourth generation (4G) telecommunication systems and services.
Singapore, 16 January 2013 | For Immediate Release
IDA to hold 4G spectrum auction in 2013
The Infocomm Development Authority of Singapore today announced its allocation framework for spectrum for fourth generation1 (4G) telecommunication systems and services.
IDA intends to increase the spectrum that is available for 4G, which will allow mobile operators to provide more innovative services with data transfer rates that would potentially be several times faster than existing 3G data plans2. IDA has decided to put up a total of 270 MHz of spectrum for 4G, comprising 150 MHz of spectrum in the 1800 MHz band and 120 MHz of spectrum in the 2.5 GHz band for auction in the middle of 2013. The spectrum must be used in the provision of nationwide 4G services.
IDA began early preparation for the allocation of 4G spectrum. Prior to its decision, IDA issued an Interim Decision in 2011 following an earlier public consultation which allowed operators to begin deploying 4G systems and services using their existing spectrum rights. Since then, all three mobile operators have introduced LTE services, with planned nationwide deployment by 2013.
Going forward, the newly-allocated spectrum rights will commence on 1 July 2015 for spectrum in the 2.5 GHz band and 1 April 2017 for spectrum in the 1800 MHz band, upon expiration of the existing spectrum rights. In most cases, successful bidders will be required to provide nationwide street level coverage within 12 months and coverage for MRT underground stations/lines and road tunnels within 36 months of the commencement of the new spectrum rights3. Despite the new spectrum rights commencing some 2-4 years later, IDA is holding the spectrum reallocation exercise now, to give operators more certainty in their 4G investments. IDA will also set aside 40 MHz of the spectrum in the 2.5 GHz band4 for any new mobile operator that wishes to enter the market, but will include this 'set-aside' amount in the main auction if there is no new entrant.
Mr Leong Keng Thai, Deputy Chief Executive and Director-General (Telecoms and Post), IDA, said, "With the exponential growth in Singapore's mobile data traffic, the growth of 4G will drive innovation in high capacity mobile services and bring better user experience and service quality than existing 3G services. While commercial Long Term Evolution services are already available, its use is still at a nascent stage. The auction of spectrum for 4G services will pave the way for nationwide deployment of 4G and for consumers to enjoy higher speeds in accessing mobile services across Singapore. This auction will also complement IDA's measures to enhance consumers' mobile data experience."
The decision paper IDA has issued today sets out the details of the auction, including the auction format, reserve price, milestones leading up to the auction and details on IDA's requirements for successful bidders. Allocating the spectrum via auction would ensure that such a scarce resource would be efficiently allocated and would reflect the value placed on it by the market.
For more information, please visit www.ida.gov.sg.
ISSUED BY CORPORATE AND MARKETING COMMUNICATIONS DIVISION
INFOCOMM DEVELOPMENT AUTHORITY OF SINGAPORE
Related Resource
- ANNEX - Summary of Key Parameters of IDA's Allocation Framework for 4G services
- Decision issued by IDA on the Framework for the Reallocation of Spectrum for 4G Telecommunication Systems and Services (373.22KB)
About Infocomm Development Authority of Singapore
The Infocomm Development Authority of Singapore (IDA) is committed to growing Singapore into a dynamic global infocomm hub. IDA uses an integrated approach to developing infocommunications in Singapore. This involves nurturing a competitive telecoms market as well as a conducive business environment with programmes and schemes for both local and international companies. For more news and information, visit www.ida.gov.sg.
For media clarifications, please contact:
CHIA Wan Fen (Ms)
Manager, Corporate and Marketing Communication
Email: chia_wan_fen@imda.gov.sg
Adrian CHAN (Mr)
Manager, Corporate and Marketing Communication
Email: adrian_km_chan@imda.gov.sg
Notes to Editor
1 4G is defined as "a cellular mobile communications system capable of evolving to achieve the targeted peak data rates of 100 Mbps for high mobility and 1 Gbps for low mobility as defined by ITU-IMT-Advanced; meeting at the minimum the standards and specifications of either LTE (i.e. 3GPP Release 8), or WiMax (i.e. IEEE 802.16-2009) or standards/specifications recognised as ITU-IMT-Advanced by the ITU."
2 For example, Singapore operators today offer speeds of up to 75 Mbps for LTE plans compared to up to up to 21Mbps for 3G plans. Theoretically, LTE systems are potentially capable of achieving peak data rates of 100Mbps or higher. While mobile operators may cite such theoretical speeds, IDA requires them to also publish typical speeds experienced for broadband plans.
3 Successful bidders obtaining 2 x 15 MHz of spectrum or more in the 2.5 GHz band will be required to provide nationwide street level coverage by 30 June 2016 and coverage for MRT underground stations/lines and road tunnels by 30 June 2018 respectively. The timelines are 31 March 2018 (street level coverage) and 31 March 2020 (with tunnel coverage), for a successful bidder obtaining any other combination of spectrum in the 1800 MHz band and/or 2.5 GHz band e.g. less than 2 x 15 MHz of spectrum in the 2.5 GHz band or any spectrum in the 1800 MHz band.
4 IDA views 2 x 20 MHz as the minimum required to deploy a viable nationwide 4G network, but does not preclude that operators may be able to deploy a nationwide 4G network using less spectrum.
ANNEX - Summary of Key Parameters of IDA's Allocation Framework for 4G services
Spectrum for allocation and allocation approach
IDA will allocate the following spectrum via auction:
| Spectrum band | 1800 MHz | 2.5 GHz |
|---|---|---|
| Amount to be allocated (MHz) | 150 (2x75 MHz paired) | 120* (2 x 60 MHz paired)* including 2 x 20 MHz set aside for a new entrant, which will be committed to the main auction should a new entrant not emerge. |
| Reserved (MHz) | - | 70 (2 x 10 MHz paired and 50 MHz unpaired) |
Reserve prices
The total reserve price for all the spectrum in the 1800 MHz and 2.5 GHz to be auctioned in this round amounts to S$360 million.
The reserve price is S$16 million per 2 x 5 MHz lot for the 1800 MHz band and S$10 million per 2 x 5 MHz lot for the 2.5 GHz band. Successful bidders will also be required to pay an annual spectrum management fee of S$26,400 per 2 x 5 MHz spectrum lot per year, and a one-time application and processing fee of S$5,400 per 2 x 5 MHz spectrum lot.
Commencement and duration of spectrum rights
| Spectrum band | 1800 MHz | 2.5 GHz |
|---|---|---|
| Date of expiry | 30 June 2030 | 30 June 2030 |
| Spectrum right duration | ≈ 13 years | 15 years |
Nationwide coverage requirements
| Nationwide coverage requirements (except MRT underground stations/lines and road tunnels) | Coverage requirements for MRT underground stations/lines and road tunnels | |
|---|---|---|
| Bidders which have been allocated at least 2 x 15 MHz of spectrum in the 2.5 GHz bands | by 30 June 2016 (i.e., 12 months after the commencement of new spectrum rights in the 2.5 GHz |
by 30 June 2018 (i.e., 36 months after the commencement of new spectrum rights in the 2.5 GHz band) |
|
Bidders which have been allocated any other combination of spectrum in the 1800 MHz band and/or the 2.5 GHz band (E.g., spectrum in the 1800 MHz band only; or less than 2 x 15 MHz of spectrum in the 2.5 GHz band) |
by 31 March 2018 (i.e., 12 months after the commencement of new spectrum rights in the 1800 MHz band) |
by 31 March 20201 (i.e., 36 months after the commencement of new spectrum rights in the 1800 MHz band) |
| New entrant acquiring 'setaside' spectrum | by 30 June 2018 (i.e., 36 months after the commencement of new spectrum rights in the 2.5 GHz band) |
by 30 June 2020 (i.e., 60 months after the commencement of new spectrum rights in the 2.5 GHz band) |
1 This date has been corrected from 30 June 2020 as stated in the Consultation paper.
Spectrum caps
IDA will set an overall spectrum cap (2 x 55 MHz) and sub-cap for spectrum in the 1800 MHz band (2 x 30 MHz).
Schedule
| Milestone | Tentative timeframe |
|---|---|
| Issuance of draft Information Memorandum and Auction Rules and submission of written queries | March/April 2013 |
| Issuance of final Information Memorandum and Auction Rules | April/May 2013 |
| Binding Expression of Interest by New Entrant | May/June 2013 |
| Allocation of 'set-aside' spectrum to New Entrant (if any) | May/June 2013 |
| Submission of Initial Offer and Bank Guarantee for Main Auction | May/June 2013 |
| Announcement of whether Auction will proceed | To be announced |
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