TPG Telecom Ltd
(ASX:TPM) is set to become the fourth operator of mobile services in Singapore, after winning the New Entrant Spectrum Auction.
TPG will be provisionally allocated 60 MHz of 4G spectrum as part of this transaction, for which the telco will pay S$105 million.
It’s expected that TPG will incur around S$200 million to $300 million in capital expenditure to setup the network with nationwide coverage by September 2018.
TPG expects to start servicing Singaporean customers in 2018 and forecasts that it will be EBITDA-positive once it reaches market share between 5% and 6% (which it thinks is achievable in a short period of time).
TPG posted a net profit of $384.6 million at 31 July 2016.
