Mr Leong Keng Thai: The growth of 4G will drive innovation in high capacity mobile services and bring better user experience and service quality than existing 3G services.

More spectrum will be made available for fourth generation (4G) telecommunication systems and services under an allocation framework that was announced by the Infocomm Development Authority of Singapore (IDA) on 16 January.

With data transfer rates that are potentially several times faster than existing 3G data plans, 4G allows mobile operators to provide more innovative services. "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,” said Mr Leong Keng Thai, Deputy Chief Executive and Director-General (Telecoms and Post), IDA.

IDA has decided to put up a total of 270 MHz of spectrum for auction in the middle of 2013. The spectrum, comprising 150 MHz of spectrum in the 1800 MHz band and 120 MHz of spectrum in the 2.5 GHz band, must be used in the provision of nationwide 4G services. In IDA’s view, 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.

The spectrum allocation announcement concludes a consultation that was carried out in 2012, and follows an Interim Decision issued by IDA in 2011, which allowed operators to begin deploying 4G systems and services using their existing spectrum rights. Since then, all three mobile operators have introduced Long Term Evolution (LTE) services, with planned nationwide deployment by 2013.

However, while commercial LTE services are already available, its use is still at a nascent stage, noted Mr Leong. “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," he said.

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. The spectrum reallocation exercise is being held now, some two to four years ahead of those dates, to give operators greater certainty in their 4G investments.

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 rights.

IDA is also setting aside 40 MHz of the spectrum in the 2.5 GHz band for any new mobile operator that wishes to enter the market. If there is no new entrant, the 40 MHz will be included in the main auction.

IDA has issued a decision paper setting 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.