The Infocomm Development Authority of Singapore (IDA) has today released its allocation framework for spectrum used for Local Multipoint Distribution Services (LMDS)1. This framework will objectively allocate scarce LMDS spectrum and develop a healthy competitive market for fixed wireless broadband (FWB)2 services...
Singapore, 17 August 2001 | For Immediate Release
The Infocomm Development Authority of Singapore (IDA) has today released its allocation framework for spectrum used for Local Multipoint Distribution Services (LMDS)1. This framework will objectively allocate scarce LMDS spectrum and develop a healthy competitive market for fixed wireless broadband (FWB)2 services and other telecommunication services, such as backhaul services for 2G/2.5G/3G mobile communication networks.
This framework adopts the auction methodology as the mechanism to allocate LMDS spectrum. Given that spectrum is a scarce and finite resource, a market-based allocation approach, such as an auction, is more effective in ensuring spectrum optimisation by operators. An auction is an efficient, objective and transparent mechanism for assigning a scarce resource to those who value it the most.
Sixteen LMDS spectrum lots will be offered for auction, at the reserve price of $41,400 per spectrum lot. Each spectrum lot is a generic 2X28 MHz spectrum block in the 24.5 - 26.5 GHz band. Each auction participant, other than a member of the SingTel Group will be allowed to bid for a maximum of four spectrum lots. SingTel will only be allowed to bid for a maximum of three lots. This is to ensure that there will be sufficient competition in the provision of FWB and other telecommunication services.
Successful bidders for LMDS spectrum will be awarded seven-year spectrum rights. The outcome of the auction will set the base year price3 payable for each of the spectrum blocks auctioned. This base year price will be increased by a factor of 2.5% annually for the remaining period of the spectrum rights.
All interested parties will be given time to seek clarification on the auction rules4 and to submit their bids shortly after. The auction is targeted for late September 2001.
ISSUED BY CORPORATE COMMUNICATION DIVISION
INFOCOMM DEVELOPMENT AUTHORITY OF SINGAPORE
Notes to Editor:
1 Local Multipoint Distribution Service (LMDS) is a broadband wireless point-to-multipoint communication system that provides digital two-way voice, data, Internet, and video services. It is also used to offer Integrated Services Digital Network (ISDN) and leased circuits. LMDS operates typically in the 24-31 GHz bands, although some countries have allocated higher frequencies. LMDS systems use a cellular-like network architecture similar to mobile networks. The difference is that in a LMDS network, bandwidth is delivered from a base station to buildings, not moving subscribers. Aside from being a broadband wireless technology in the access segment, LMDS can also be used for mobile communications backhaul, i.e. mobile phone operators can use LMDS cellular architecture to backhaul traffic between mobile base stations and the mobile core network.
2 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.
3 The Base Year Charge refers to the annual charge payable in the first year of the seven year duration of each LMDS Spectrum Right, in respect of each LMDS Spectrum Lot awarded pursuant to the Auction, excluding the applicable Goods and Services Tax (GST).
4 Information Memorandum for the LMDS Spectrum Rights auction.
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, please visit www.imda.gov.sg.
For media clarification, please contact:
Ms Dulcie Chan
Senior Manager, Corporate Communication
Infocomm Development Authority of Singapore
Tel: +65 211-1999
Fax: +65 211-2227