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31st July 2003

ASIA : Singapore Telecommunications Limited (SingTel) today announced that it has appointed Ericsson as the vendor for its 3G network in Singapore.

Inset is Lucas Chow CEO of SingTel Mobile who is quoted below.

The decision was reached after a rigorous process evaluating the proposals submitted by five vendors as early as December 2000. The tender for the 3G network also involved joint technical and network trials with three shortlisted vendors, including Ericsson.

SingTel plans to invest up to S$220 million with Ericsson in its new 3G network. The multi-year contract includes options that will enable SingTel to adopt a very flexible network roll-out and enhancement plan depending on market conditions and demand for 3G services in Singapore.

Mr Lucas Chow, SingTel’s EVP (Consumer Business) and CEO of SingTel Mobile, said: “Prices of 3G hardware infrastructure and equipment have fallen significantly over the last three years following the peak of the 3G boom. In spite of this, we are still adopting a prudent and success-based capital expenditure approach towards the deployment of our own 3G network in Singapore.

“We will commit more infrastructure investments only when there is significant market demand for 3G services over the next few years.”

SingTel’s 3G network, based on Wideband-CDMA technology, will be ready in the Central Business District by early next year. It will be fully operational nationwide by end-2004, complying with the deadline set by the Infocomm Development Authority of Singapore. SingTel’s initial 3G network will support data transmission of up to 384 kbps on-the-move.

The new network will be backward compatible with SingTel’s existing GSM and GPRS networks. 3G users can switch easily to conventional GSM networks for their voice and GPRS data communications on dual mode 3G W-CDMA/GSM handsets, which will be available when SingTel introduces 3G services early next year.

Mr Chow said that although 3G is a new and evolving technology, it is the answer to the growing demand for high bandwidth mobile applications. “We have identified four applications – video streaming, video messaging, videoconferencing and mobile gaming – as the drivers behind market adoption and the success of 3G.

“In the longer term when 3G becomes as popular as what 2G is today, we expect SingTel’s capital cost per 3G subscriber to be much lower than the cost per 2G subscriber,” Mr Chow said.

Mr Chow added that Ericsson gave the most attractive proposal. “With their proven expertise in mobile networks and technologies as well as their commitment to 3G, we are confident that Ericsson can deliver a high quality 3G network for the benefit of our customers,” he said.

Mr Claes Odman, President of Ericsson Singapore, said: “We are delighted by SingTel’s decision to select Ericsson. This important agreement reinforces the close strategic relationship which exists between the two companies. Ericsson is fully committed to support SingTel’s 3G effort in Singapore and its position as the premier mobile operator in the region.”

To date, Ericsson has garnered over 40 per cent of 3G contracts that have been handed out worldwide and has delivered commercial 3G infrastructure to more than 30 operators in 27 countries. Its 3G clients include NTT DoCoMo (Japan), SmarTone (Hong Kong), Telefonica (Spain) and Vodafone (UK).