The Advantages and Disadvantages of Fourth Telco  

At present, there are only three telecommunications company competing for the supremacy – SingTel, Starhub and M1. Now, there are companies that also want to get a slice of the cake. The companies include MyRepublic and OMGTel. These companies are pushing to be the fourth telco here in Singapore.

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If we look at it closely, OMGTel appeals to many because of its credentials and backing from SMRT and CONSISTEL. So, what are the impacts of a fourth telco here?

  • Advantages: Without a doubt the presence of the fourth telco will force the other telcos to be more efficient and innovative. If the “big boys” will keep its present performance, the fourth telco will surely outwit them. We know what competition can do to companies.Anotheradvantage is that three telcos will push for better connectivity. The three telcos have weakness especially in tunnels and army camps. If a fourth telco license will be approved, the “big three” will have to improve their connectivity if they do not want to be left out.

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  • Disadvantages: There are always disadvantages. Being the new entrant, the fourth telco is inexperienced. No matter its credentials and backing, they still need to prove something. There is always a risk of overspending to get their services up and running. To establish the fourthtelco’s market share, they will present attractive packages. After proving themselves, they will seek for more avenues to become more profitable and that is where additional fees and payments come in.

It is too early to say if the fourth telco will become successful or not. Let us wait and see.

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