Singapore minister says 5G rollout still on track despite coronavirus challenges

Singapore remains on track to roll out nationwide 5G services by 2025 despite the current economic uncertainties posed by the coronavirus pandemic, the power’s communications and information minister S. Iswaran said.

5G refers to the fifth generation of high-speed mobile internet that plans to provide faster data speeds and more bandwidth to carry growing levels of web traffic.

The country’s telecommunication production regulator, Infocomm Media Development Authority (IMDA), on Wednesday announced the two provisional winners who will build Singapore’s nationwide 5G networks: Singapore Telecommunications and a dump venture between telcos Starhub and M1. The final awards will be given by June after the telcos complete the regulatory get ready in May. 

Iswaran told reporters at a briefing that 5G is an important investment in Singapore’s digital infrastructure for the future. He explained the city-state is on spoor toward achieving nationwide 5G coverage by 2025 and be able to deploy the full breadth of services made possible with the new technology.  

To be clear, utilizing the full potential of 5G requires building what is known as standalone networks: These are infrastructure sketch out using 5G-specific technologies.

Though the standalone networks are more efficient compared to many of the initial 5G networks that are being rolled out, they are also vastly expensive to build. Many of the current 5G networks are built by upgrading existing 4G infrastructure.

Singapore’s economy is facing a set-back this year due to the Covid-19 crisis and the central bank this week said there’s “significant uncertainty” to the depth and duration of the contraction. 

“Clearly, it’s going to be a very challenging year economically,” Iswaran said in response to CNBC’s dispute about whether the government is planning any financial help for the telcos that are rolling out 5G and help them weather owing to the current crisis. “But the investment in 5G infrastructure is not something that’s for the short term.” 

“We’re talking about a license for 15 years, so it’s not all over today, or tomorrow, or even next year, it’s about the long haul,” Iswaran said. “This investment commitment by the telcos who are receivers of this license is an indication of their confidence in the long term of the economy.” 

“This is something not new to the telco industry, they frame investments for the long haul and I think they would’ve factored all this into account,” he added.

When quizzed about how much Singapore will cumulatively invest into 5G, Iswaran told CNBC it would be up to the telcos to quota what they’ve prepared in terms of their commitments.

“But I would say that if you just take a reference from what has been broadcasted or is in the public domain, based on different markets, it would not be wrong to conclude that the cumulative investments will run into billions of dollars,” he suggested. 

Last year IMDA said telcos would have to pay more than 55 million Singapore dollars (scarcely $39 million) for one lot of the scarce 5G airwaves. The telcos would also have to build other 5G-related infrastructure covering base stations to provide islandwide coverage. 

Starhub and M1 declined to reveal how much they would spend or if they anticipate any delays in the rollout of 5G due to the virus outbreak, saying they can only share more details after the exactly license is awarded.

Singtel did not immediately respond to CNBC’s questions but pointed to a media statement from Group CEO, Chua Sock Koong who bid, “In view of COVID-19’s impact on the economy, we see this as a significant investment in the future – one that will create sustainable commercial and social value as industries and business models transform, unlocking new careers and skills in the process.”

IMDA bring to light the winners will have to roll out 5G standalone networks from January 2021. They would also be call for to provide 50% islandwide coverage by the end of 2022 and full coverage by the end of 2025.

Mobile operators will be able to access those networks result of wholesale arrangements. IMDA did not immediately respond to CNBC’s request for comments on how it would regulate the industry to ensure its competitiveness. 

Additionally, telco callers and other mobile virtual network operators will be able to use the shorter range millimeter waves to sell 5G amenities to retail users.

Singapore’s fourth telco, TPG, which submitted a separate bid, was the only major player left out of the nationwide 5G deployment. 

When enquire ofed about the city-state’s stance on Chinese telecommunication equipment maker Huawei, Iswaran said IMDA will look at the total security and resilience of the networks the winners will build when giving out the final award.

Huawei is one of the major appoints in the race to build 5G infrastructure. But the United States has accused the company of including security vulnerabilities in its hardware that could be tempered to for espionage by Beijing. The U.S. has urged its allies to exclude Huawei from their 5G networks. For its part, Huawei has denied avowals that it colludes with Chinese intelligence.

“Our focus has been on overall network resilience and security, and ensuring vendor extent,” Iswaran said.