MyRepublic and Consistel are accelerating efforts to secure Singapore’s fourth mobile licence, with the former mandating banks to raise S$250m (US$181m) to support its bid and the latter reportedly planning to invest up to S$1.3bn (US$941m) to build out a network.
MyRepublic and Consistel are accelerating efforts to secure Singapore’s fourth mobile licence, with the former mandating banks to raise S$250m (US$181m) to support its bid and the latter reportedly planning to invest up to S$1.3bn (US$941m) to build out a network.
Malcom Rodrigues, CEO of local ISP MyRepublic, said the company has hired Goldman Sachs and DBS Group Holdings to help it raise the financing.
Specifically, MyRepublic, backed by French billionaire Xavier Niel and Sinar Mas-owned Indonesian telco Sunshine Network, is looking for S$150m (US$109m) from private equity firms and S$100m (US$72m) of loans with six to seven year maturities, Rodrigues said. Two-thirds of the equity financing has already been secured and the remainder is expected by May, he noted.
Meanwhile, Masoud Bassiri, chairman of Asian wireless software provider Consistel, was cited by Bloomberg saying the company intends to use a mix of debt and equity to fund an approximately S$1.3bn network rollout. Bassiri said bankers and investment advisers were considering all options and the company was “in the process of completing both sides of it”. He declined to name the banks.
Last month, the Infocomm Development Authority (IDA) said there had been strong interest in the fourth licence, but did not name potential candidates. The regulator’s upcoming multi-band spectrum auction, set to begin in the third quarter, has 60 MHz in the 900 MHz and 2.3 GHz bands reserved for a new entrant, with a starting price of S$35m (US$24.9m). The new entrant spectrum will be auctioned ahead of a general auction open to any new entrant and existing players SingTel Mobile, StarHub Mobile and M1. The second stage of the process will include airwaves in the 700 MHz, 900 MHz, 2.3 GHz and 2.5 GHz bands.
BNP Paribas analyst Wei Shi Wu said in a recent note that MyRepublic management believe the 60 MHz of reserved spectrum will be enough to support their business case, but they have not ruled out taking part in the general auction.
“According to management, the mobile proposition could feature some bundled devices, although this will not be MyRepublic’s core offering,” she said, adding that the company is targeting access speeds of up to 600mbps, using carrier aggregation.
Wu noted that management’s indicated maximum funding of S$250m-S$300m (US$181m-US$217m) is possible if the company relies on NBN fibre for backhaul, heavy automation and cloud services.
MyRepublic has been a disruptive force in the local broadband sector, offering lower prices than competitors. The company claims to provide ultra-fast internet to more than 30,000 homes and businesses in Singapore. In 2014, it started offering fibre broadband services in New Zealand and it is preparing to do the same in Australia.
Consistel provides in-building wireless software products, software and integration. Based in Singapore, it is also present in the Philippines, Indonesia, Malaysia, Thailand and Pakistan.
Consistel was not immediately available for comment.
