Singapore’s M1 and StarHub are considering expanding their mobile infrastructure sharing arrangements to gain a greater competitive edge against new market entrant TPG Telecom.
The companies announced they have signed a memorandum of understanding covering the evaluation of potential further collaboration in network infrastructure sharing.
M1 and StarHub have been sharing infrastructure including combined antenna systems, in-building fiber and tunnel cables for many years.
Now the operators are exploring a deeper collaboration focused on sharing radio access network, backhaul and access assets.
The collaboration is aimed at enabling both operators to optimize the use of a number of network elements while improving coverage and capacity for customers. The companies plan to continue to manage network traffic independently.
StarHub CEO Tan Tong Hai said pooling network resources will allow both operators to roll out more cost effective next-generation networks to manage the exponential growth in demand for mobile data.
“We are cooperating to bring the Singapore infocomm industry to the next level, to compete not on pure infrastructure ownership, but at a higher level of customer service and innovative value creation,” he said.
“Sharing mobile network radio elements with M1, but keeping our individual mobile core networks, will allow StarHub to provide better mobile service (in particular, mobile coverage) and still be able to differentiate ourselves.”
M1 CEO Karen Kooi added that the agreement could lower both operators’ operational and capital expenditures, allowing them to invest in the future technologies needed to keep Singapore at the forefront of the ICT industry.
Singapore recently granted a fourth mobile license to TPG Telecom, after the Australian fixed line operator won a new entrant spectrum auction with a bid of S$105 million ($72.8 million).
The terms of the allocation call for TPG to provide nationwide street level 4G coverage within 18 months of the license coming into effect, meaning the company will soon be a competitive threat for StarHub, M1 and incumbent Singtel.