Why Singtel emerged as the big winner in the spectrum bidding

It could realise capex savings on 4G.

The recent four-way fight between Singapore telcos to secure spectrum rights saw Singtel as the big winner after it won the biggest chunk of the 700MHz band, dubbed as the "prime real estate" by RHB analysts.

According to RHB, Singtel secured the maximum allowed for the 700MHz/900MHz bands, winning four (2x20MHz) and two (2x10MHz) blocks, respectively.

"The 700MHz band is deemed as prime real estate given its superior propagation (reach and in-building penetration), which also allows for significant capex savings on 4G. The usage of the spectrum is however dependent on the analogue switch off (ASO) with the earliest implementation in January 2018," RHB said.

And whilst other telcos exercised their first right of refusal for 5MHz of the 900MHz to be used for 3G services, Singtel coughed out a whopping $132m for the additional block.

"It now has equal blocks of the 900MHz with TPG, which was allocated the same band at the new entrant spectrum auction (NESA) last December," RHB said.