IDA Announces Fixed Wireless Broadband Licensing Framework

Singapore will auction up to five lots of spectrum for provisioning of Fixed Wireless Broadband (FWB) services. The auction method is considered to be the most objective, efficient and transparent mechanism to allocate valuable radio frequency spectrum resource to the bidders who value it most...

Singapore, 30 November 2000 | For Immediate Release

Singapore will auction up to five lots of spectrum for provisioning of Fixed Wireless Broadband (FWB) services. The auction method is considered to be the most objective, efficient and transparent mechanism to allocate valuable radio frequency spectrum resource to the bidders who value it most. This decision was reached after studying the local info-communications landscape and taking into account industry views. The experiences of other countries in allocating FWB spectrum and licences were also studied¹.

The FWB services are commonly deployed for dedicated high-speed transmission links to access the Internet and broadband multimedia content. This would be an additional means, on top of ADSL or cable modem broadband access, which 99% of all Singaporean households already have access to. FWB is also an alternative to high-speed links such as Integrated Services Digital Network (ISDN) services, fibre and local leased circuits, which are available to the corporate market. The benefits of deploying FWB technology compared to the wire-line alternative include rapid deployment of the network with minimal disruption to the community and the environment, as well as better reuse of the spectrum resources. FWB services are therefore expected to complement the existing infrastructure and will be attractive to the corporate SME market and multi-tenanted buildings.

Successful bidders will be granted spectrum licences valid for fifteen years. The five spectrum blocks available for bidding will be different-sized lots of spectrum. The five lots comprise two lots of 2X112MHz, two lots of 2X84MHz and one lot of 2X75MHz. The two lots of 2X112MHz are deemed large lots and the other three lots small lots. Successful bidders will be allowed to aggregate up to a maximum of three spectrum blocks. Spectrum trading² will also be allowed, subject to approval by IDA and compliance with terms and conditions deem appropriate.

The IDA has set the reserve prices for the five spectrum lots. The reserve prices are set following an economic study of the fair market value of the licence, taking into consideration the market structure of the market in Singapore:

S$4 million each for the 2x112Mhz lots; S$3 million each for the 2x84Mhz lots; and S$2 million for the 2x75Mhz lot.

There will be no reservation of any spectrum block for new entrant(s). Singapore Telecommunications Ltd will be permitted to participate in the FWB spectrum auction but will only be permitted to bid for only one of the three small lots. This is to ensure that there will be sufficient competition in the provision of FWB services.

The IDA will not hold any further FWB spectrum auctions within eighteen months of the date this first FWB auction ends. This is to give the successful bidders some time to deploy and establish themselves in the market.

Successful bidders will be required to launch their commercial services within nine months of the award of the licence. However, given that FWB services are expected to serve targeted markets, IDA will not impose any Quality of Service standards or geographic coverage requirements.

The final documentation of the auction rules and related policy issues will be issued in January 2001. The operators will be invited to submit their intent to bid shortly after. The spectrum auction will start in late February 2001³.

ISSUED BY CORPORATE COMMUNICATION DIVISION
INFOCOMM DEVELOPMENT AUTHORITY OF SINGAPORE
Notes to the Editor

¹ Countries that have similarly auctioned FWB spectrum include the Austria, Australia, Canada, France, Greece, Switzerland, UK and US.

² Spectrum trading means the spectrum can be resold to a third party.

³ A fact sheet with further details on Singapore's FWB Licensing Framework is attached.

About Infocomm Development Authority of Singapore

The Infocomm Development Authority of Singapore (IDA) is a dynamic organisation with an integrated perspective to developing, promoting and regulating info-communications in Singapore. In the fast-changing and converging spheres of telecommunications, information and media technologies, IDA will be the catalyst for change and growth in Singapore's evolution into a vibrant global info-communications technology centre. For more information, visit www.ida.gov.sg

For media clarifications, please contact:

Ms Dulcie CHAN
Manager, Corporate Communication
Infocomm Development Authority of Singapore
Tel: +65 211-1999
Fax: +65 211-2227
Email: dulcie_chan@imda.gov.sg

Attachment
Title	Date of Issue
Singapore Licensing Framework Factsheets (50.00KB)	30 Nov 2000