Telecommunication Equipment
Singapore
Overview
2004 2005 2006
Total Market Size 3309 2791 3791
Total Local Production 3790 5364 7407
Total Exports 8694 11836 16041
Total Imports 8213 9263 12425
Imports from the U.S. 274 382 536
Footnote: Exchange rates used:
2004: US$1 = S$1.63
2005: US$1 = S$1.66
2006: US$1 = S$1.56
The statistics are unofficial estimates
Figures are in millions of US$
Singapore is one of the most wired countries in the world with a nation-wide network of fiber optic cables. According to the World Economic Forum's Networked Readiness Index 2004 – 2005, Singapore was ranked number one. Third generation (3G) mobile networks and services in Singapore were rolled out in early 2005 and consumers can currently receive wireless data through their mobile phones. 'Cyber cafes' are popular, and Internet connections are available in most hotels. There are 900 public Wi-Fi hotspots islandwide, which means there are more than three wireless LAN hotspots for every square mile of the country. Triple play networks (voice/data/video) are available in Singapore.
Virtually every home in Singapore has a fixed telephone line, and mobile phone penetration reached 99.7% in October 2006. There were nearly 1.6 million Internet dial-up subscribers and more than 728,000 broadband subscribers in Singapore.
Best Prospects/Services
Although relatively small, Singapore is a sophisticated market for telecommunications products and services. Major market players have set up operations in Singapore including Motorola, Lucent, Alcatel, Nortel, Nokia, Ericsson, and Agilent and these offices usually have responsibilities for the region. There are excellent opportunities to sell new applications and solutions to Singapore as it is a leading adopter in the region. In the first 10 months of 2006, U.S. exports of telecommunication products into Singapore grew 25% to US$402 million. Areas of best prospects include wireless broadband, Internet protocol virtual private network, 3G supporting technologies and content for 3G networks.
Opportunities
The Singapore telecommunication industry was liberalized in April 2000, and the move increased competition for existing players and provided opportunities for many new market entrants. In early 2005, the Singapore telecom regulator issued six Wireless Broadband Access (WBA) spectrum rights in the 2.3GHz and 2.5 GHz frequency bands.
The Government of Singapore plays an active role in the sector. It has launched two industry engagement programs that are part of the government's initiative to deploy a next generation national info communications infrastructure. The infrastructure is envisaged to comprise an ultra high-speed next generation national broadband network and a pervasive wireless broadband network.
In March 2006, the Singapore Infocomm Development Authority (IDA) issued a Wireless Broadband Market Development (WBMD) call-for-collaboration (CFC) to invite interested operators to deploy the Wireless@SG networks and services for two years. Through the CFC, IDA seeks to grow Singapore's wireless broadband market and catalyze broadband adoption in the country. Recognizing that nation-wide, pervasive wireless connectivity can only be achieved progressively as wireless technologies mature, the CFC is the first phase toward this goal. In the meantime, the CFC utilizes existing wireless technologies such as Wi-Fi to meet the needs of the growing number of data-centric device users that require wireless access to Internet.
In October 2006, the IDA accepted the proposals from three companies (iCELL Network Pte Ltd, QMAX Communications and Singapore Telecommunications Ltd) for the government's CFC to kick-start Wireless@SG. With the Wireless@SG program, the number of public 'hotspots' will grow 5-fold from the current 900 to about 5,000. The three operators will increase the number of Wireless@SG 'hotzones' in high-traffic, public areas, such as the Central Business District and downtown shopping belts to make wireless broadband a ubiquitous access mode by September 2007. Users started enjoying free wireless broadband connectivity from December 1, 2006. The three operators are extending the three-year free offering with unlimited usage to all residents and visitors in Singapore, including tourists and business travelers. The three operators will invest about S$100 million (US$64 million) over the next two years to deploy Wireless@SG.
In March 2006, the government also issued a request-for-concept (RFC) for Singapore's next generation national broadband network. The RFC will shape the next generation national broadband network. The RFC document is available at http://www.ida.gov.sg/broadband. U.S. firms interested in the IDA’s invitation to participate in the pre-qualification exercise and competitive dialogue for the next generation national broadband network project should review the website http://www.ida.gov.sg/Infrastructure/20060919190208.aspx for details. The Singapore government’s announcement of its plans to build a next generation national broadband network and pervasive wireless broadband network offers U.S. vendors the opportunity to participate in developing the new telecom infrastructure in Singapore.
There are opportunities for U.S. firms to supply to the three mobile operators in Singapore not only for recurring expenditure but also for new investments they are making in order to compete with new market players. For example, Singapore’s third-largest mobile phone operator, MobileOne, has launched an island-wide wireless broadband service, using its newly-upgraded third-generation (3G) mobile network. MobileOne (M1) is using a High Speed Downlink Packet Access (HSDPA) technology that provides broadband Internet access anywhere where a phone signal is available.
According to research company IDC, the enterprise mobility market in Asia Pacific is expected to grow at a compound annual growth rate of 9.5% to US$33.5 billion by 2010. The biggest driver for the growth will come from an increase in spending by enterprises on communications services and mobile hardware. "Communication services growth is fuelled by a healthy growth of mobile business users in emerging markets and rising business average revenue per user (ARPU) in markets like Australia, Hong Kong and Singapore, IDC declared."
Resources
Trade Show
CommunicAsia/Broadcast Asia, June 19-22, 2007
Key websites
http://www.sitf.org.sg/marketplace/bizopp.aspx
http://www.export.gov/market_research/index.asp
U.S. Commercial Service, Singapore Contact
Ms. CHIA Swee Hoon, Senior Commercial Specialist
Email: SweeHoon.Chia@mail.doc.gov