Three Major Singapore Telcos – Singtel, StarHub, and M1-Held Various Meetings with Investors and Shareholders:Microeconomics Assignment,NYP, Singapore

Introduction: 

•  Give an introduction of the case with an ear description of the characteristics
  of the telecommunication industry. The introduction should also include
  some analysis of the demand, supply, nd elasticity concepts of
  the communication market before the entry of TPG in the case.

 Main Discussion

•  Explain the market equilibrium using a diagram to illustrate the
  telecommunications market before and after the entry of TPG. Explain the
  impact on the industry price and quantity in terms of the service provided.
• Describe the various production factors and costs for TPG and suggest how TPG can organize its resources to operate in the market.
• Suggest how TPG can compete in the Singapore market based on the market structure for the telecommunication industry.
•  Analyze the impact on consumers if the government decided to merge all
  players into a single firm serving the more market.

Assessment

• Introduction
•  Market Equilibrium Analysis
•  Production Factors & Cost Description
•  Market Structure Analysis
•  Scenario Change Application
•  Conclusion
•  Overall Clarity, Relevance, Complete

Case Study
More Competitors!  Back in 2016, the three major Singapore telcos – Singtel, StarHub, and M1 – held various meetings with investors and shareholders, reassuring them that a fourth telco would not be a threat to their businesses.
They told the market that it is not a problem, two analysts recalled.

The incumbents had felt that if a new competitor appears, it will be an uphill climb to deliver the same quality of services as them. At least one of the telcos was unconvinced that there would be any serious push to respond to the regulator’s call for proposals earlier that year, believing that there was no business case for a fourth telco. “That was the thinking then: It already was a crowded market and the telcos believed they didn’t need to do anything. Whatever price the fourth telco offers,

they will undercut it to kill off the competition,” one analyst said on condition of anonymity. Fast forward to 2017, the fourth telco came in. TPG Telecom, an Australian firm, made the winning bid of S$105 million in the New Entrant Spectrum Auction (NESA).

TPG was allocated the full 60 MHz of spectrum made available in the NESA, comprising 20 MHz in the 900 MHz,and 40 MHz in the 2.3 GHz spectrum bands. In a statement, TPG said that it expects to start delivering services to customers in 2018. It will offer “excellent value of the offerings” for the market. Meanwhile, all three existing players (M1, Singtel, nd StarHub), as well as new telco operator Circles.

ife indicated that they welcomed TPG’s entry..Case Study More Competitors!  Back in 2016, the three major Singapore telcos  Singtel, StarHub, nd M1 – held various meetings with investors and shareholders, reassuring them that a fourth telco would not be a threat to their businesses.

They told the market that it is not a problem, two analysts recalled. The incumbents had felt that if a new competitor appears, it will be an uphill climb to deliver the same quality of services as them.

At least one of the telcos was unconvinced that there would be any serious push to respond to the regulator’s call for proposals earlier that year, believing that there was no business case for a fourth telco. “That was the thinking then: It already was a crowded market and the telcos believed they didn’t need to do anything. Whatever price the fourth telco offers, they will undercut it to kill off the competition,” one analyst said on condition of anonymity.

Fast forward to 2017, the fourth telco came in. TPG Telecom, an Australian firm, made the winning bid of S$105 million in the New Entrant Spectrum Auction (NESA). TPG was allocated the full 60 MHz of spectrum made available in the NESA, comprising 20 MHz in the 900 MHz,and 40 MHz in the 2.3 GHz spectrum bands.

In a statement, TPG said that it expects to start delivering services to customers in 2018. It will offer “excellent value of the offerings” for the market. Meanwhile, all three existing players (M1, Singtel and StarHub), as well as new telco operator Circles.Life, indicated that they welcomed TPG’s entry.