Singapore's Telecom Liberalization Draws ATT, MCI WorldCom and Other Global Players Singapore, 3 April 2000 For Immediate Release


1 AT&T, MCI WorldCom, and Deutsche Telecom were among the 37 companies awarded licenses to set up telecommunications operations in Singapore. The licenses grant these companies the opportunity to offer a range of services, from provision of network capacity to international calling card services and Internet exchange services. The licenses were awarded by the Infocomm Development Authority of Singapore (IDA).

2 In January, the IDA announced the opening of full competition in the Singapore telecommunications market to take effect April 1, 2000. Dubbed by industry as Singapore's "big bang" in telecommunications, the liberalization will also see an addition of about 20 Internet access service providers and 20 operators offering international simple resale.

3 "To become the region's leading communications and information technology hub, Singapore needs a globally competitive telecommunications market where many service providers offer a range of innovative, high quality and cost effective services," said Mr Yeo Cheow Tong, Minister for Communications and Information Technology. "The earlier introduction of full market competition will strengthen our competitiveness and help position Singapore as the choice location in the region for key infocomms players."

4 Singapore is a strategic market in Asia's high growth telecommunications market. There are more than 5,000 multinational companies operating in Singapore, and a majority of these use Singapore as a significant base for their regional activities. Given the strong interest expressed by major global carriers, more license applications from are expected over the next three to six months.

5 Singapore's Economic Development Board has been working with companies such as Exodus Communications, Telekonnect, ST Telemedia and Pacific Internet Exchange Corp (PIXC), all of whom have decided to set up data center operations in Singapore. Global One Communications has also chosen Singapore as its network access center for South-East Asia.

6 On the whole, the Singapore economy will stand to benefit from greater investments, infrastructure development and positive spin-offs to other sectors. It is estimated that the total investments arising from the new activities (excluding 3G mobile and fixed wireless investments) following the full market liberalization is close to S$3 billion (US$1.8 billion) over the next three years. Some 2,500 new jobs are expected to be created.


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ISSUED BY CORPORATE COMMUNICATION DIVISION INFOCOMM DEVELOPMENT AUTHORITY OF SINGAPORE
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About Infocomm Development Authority of Singapore


Above is an evidence that shows a real life example of additional firms into a nearly monopolize market. As seen from the highlighted portions in the text, more competition directly led to better quality in goods and services, also leading to more investments. Lastly, we can see that in this case, monopoly is not having better advantages as a market structure closer to that of an oligopoly as not only better goods and more investments are reaped, many jobs opportunities are created as well!



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