Exits loom for new telco players amidst 5G roll-out
TPG is tipped to record losses.
New telco players are expected to exit as 5G is rolled out across at least half of Singapore by the end of 2022, according to a report by DBS Equity Research.
In particular, TPG may not last in the market without a nationwide 5G licence. The firm is expected to record a massive loss, as its annual revenue is projected to hit $36m at most even after 12 months of its commercial launch in mid-2020.
Mobile virtual network operators (MVNOs) are struggling as well. “The discontinuation of operations by MVNO Zero Mobile in December 2019 also shows that new players are struggling, and some of them may look to exit Singapore soon,” DBS Equity Research analyst Sachin Mittal said.
Two MNOs will be chosen to deploy the 3.5GHz spectrum band on a standalone basis. StarHub and M1 are expected to bid jointly for a nationwide 5G licence in February 2020, whilst Singtel may likely go solo as it has the capacity to handle the capex on its own.