Singapore Telecom Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The Singaporean telecom market is expected to grow at a CAGR of 1.51% during the forecast period. The country's telecommunication industry is dominated by Singapore Telecommunications Limited (Singtel), StarHub Limited, M1 Limited, TPG Telecom Pte Ltd (Simba), and Nexwave Telecoms Pte Ltd. Singapore Telecom have witnessed growth due to robust 5G networks and demand for wireless networks.

Key Highlights

• Due to its highly established network and forward-looking regulatory framework, Singapore is regarded as a worldwide powerhouse for telecommunications. The country has a strong internet presence. The people in the country are devoted tech users and voracious data consumers. According to the International Trade Administration on Singapore's commercial guide, the penetration rate of mobile devices was 158.8% in the country, compared to 196.1% for wireless broadband.
• Singapore keeps moving forward with its 5G deployment. As service providers look for new methods to engage clients in the market, 5G networks and services are anticipated to serve as the foundation of development in the telecom sector in the coming years. To promote the usage of 5G in marine operations, Singapore is expected to extend standalone 5G coverage to its seaport, including anchorages, fairways, terminals, and boarding grounds, by mid-2025.
• Despite the global chip scarcity brought on by COVID-19-related interruptions, smartphone demand across Singapore increased. Individuals used these gadgets for anything from supermarket shopping to remote working as part of social isolation initiatives to prevent COVID-19 infection. According to Canalys, the number of smartphones sold in Singapore increased by 2.3% in 2021 compared to 2021, with 2.3 million handsets sold.
• Telecom providers are undergoing several cycles of change to stay up with market upheavals and changing client expectations. Today, leading brands like Singtel, M1, and StarHub are dedicated to a new mission of transforming from a purely mobile operator to a more comprehensive digital network operator, delivering a whole suite of communications services to over two million users, including mobile, fixed line, and fiber products.
• The COVID-19 pandemic substantially impacted Singapore's telecom sector, lowering penetration rates and postponing several critical infrastructure projects. The overall impact on the industry has been quite mild compared to other industries that almost crumbled under the closure. Many individuals needed to improve their services and plans to accommodate a move to working and studying from home. Telecommunications remained a crucial service throughout this time. Singapore's advanced capabilities and infrastructure handled the storm admirably. All the telecom providers kept up their service offerings and proceeded with their investment plans, especially for 5G networks (with a focus on standalone). The operators are quite optimistic about the upcoming period.

Singapore Telecom Market Trends

Robust 5G Framework

• Singapore was the first nation in the world to have independent 5G connectivity, while 5G coverage throughout the globe gradually expanded. Singtel's national 5G coverage of the island nation currently exceeds 95%. Singapore was planning to achieve this goal by the end of 2025. Singtel succeeded in finishing these tasks three years earlier than expected. Since the introduction of 5G, Singapore has had a well-thought-out strategy for its coverage.
• To be competitive, Singapore has always accepted forced reinvention. Its strategies include providing cutting-edge technology, such as 5G. The country's main goal is to 'invest ahead and invest early' in critical infrastructure. According to the International Trade Administration US Department of Commerce, the Singapore government allocated SGD 25 billion (USD 18.1 billion) in R&D funding up to 2025 to assist efforts to leverage the advantages of digitalization by advancing disruptive technologies.
• Furthermore, according to the OpenGov Asia report, the construction of Singapore's 5G@SEA, the world's first and largest 5G Maritime testbed to trial, create, and commercialize Maritime 5G use cases over the next ten years, would be made possible by the 5G coverage in the current port waters. By mid-2025, Singapore would have full 5G standalone (SA) coverage over anchorages, fairways, terminals, and boarding areas. Singapore is home to one of the busiest maritime operations in the world. Maritime 5G coverage for its offshore southern beaches would speed up turnaround times and increase efficiency for ships arriving and departing from the country.
• Compared to 5G, standalone networks are more sophisticated. A 5G standalone provides quicker downloads and reduced latency, which is essential for applications like video streaming and driverless vehicles. It is built from the ground up. Users on a 5G standalone network are given extra bandwidth or priority utilizing network slicing for users with critical applications. The first and most potent 5G standalone network in Singapore is Singtel. Singtel's 5G Standalone (SA) network provides lightning-fast speeds, hyperconnectivity, and a wide range of opportunities for businesses and consumers.
• According to the International Trade Administration US Department of Commerce, the Infocomm Media Development Authority (IMDA), a statutory board of the Singaporean government that oversees the integrated Infocomm and media sectors, has put aside SGD 30 million (about USD 21.7 million) not only to promote the adoption and commercialization but also for the development and commercialization of 5G solutions in smart estates, Industry 4.0, urban mobility, maritime operations, healthcare, consumer and government applications, etc.

Broadband Penetration and Fastest Networks

• Over the years, Singapore's residential internet and broadband connectivity have steadily increased. According to the IMDA - Statistics on Telecom Services, the rate of domestic wired broadband household penetration in the country is 91.8%. There are 157 mobile cellular subscriptions for every 100 persons. Singapore has one of the highest internet connection rates in the world. Particularly in terms of material availability, Singapore routinely outperforms other countries, boasting some of the lowest broadband prices and quickest download speeds.
• Upsurge in the broadband speed is anticipated to be fuelled on the back of 5G growth in Singapore, thereby opening income growth for different telecom operators. As the need for broadband connectivity grows due to the digital revolution, individuals and companies are also expected to make use of this trend. Singapore's broadband networks are already among the fastest in the world, and it is anticipated that they are expected to continue to improve.
• Singapore has the fastest fixed broadband speed in the world. According to a BanklessTimes study, Singapore has the fastest internet speed in the world, with a median speed of 207.61 Mbps. Chile is second with a speed of 200.01 Mbps, while Thailand is third at 189.64 Mbps. According to the speed test survey, Singapore comes second after Chile, with an average fixed broadband speed of 200 Mbps.
• Furthermore, the country had the fastest median download speed for fixed broadband in October, November, and December 2021, according to Ookla's Speedtest Global Index. Internet users in this area had median download speeds of 188.11 Mbps, 184.65 Mbps, and 192.17 Mbps for those three months. Meanwhile, ViewQwest beat all other national broadband providers to become the leading supplier of broadband services with the quickest upload and download speeds last year. ViewQwest was named as the most consistent network, with median peak download and upload speeds of 783.63 Mbps and 818.31 Mbps in two consecutive years.
• According to the Techwire Asia report, during Q4 2021, Singtel was the fastest mobile service provider in Singapore, with a speed score of 113.80, a little improvement from its Q3 speed score of 99.74. Encouragingly, with a median download speed of 138.40 Mbps, the Apple iPhone 13 Pro Max was the most popular smartphone in Singapore. During Q4 2021, in Singapore, Apple outperformed Samsung as the fastest smartphone maker, with Apple devices reaching a median download speed of 75.81 Mbps compared to Samsung's 64.68 Mbps.

Singapore Telecom Market Competitor Analysis

The Singaporean telecom market is highly fragmented in nature. Some major players in the market studied include Singapore Telecommunications Limited, StarHub Limited, M1 Limited, TPG Telecom Pte Ltd, and Nexwave Telecoms Pte Ltd. The market also hosts other internet service providers (ISPs), MVNOs, and fixed-line service providers. Some of the telecommunication companies in Singapore are competitive internationally and hold strong ground in the global telecom space.

• In September 2022, Singapore Telecommunications Limited (Singtel) completed the sale of a 3.33% interest in Bharti Airtel for about USD 1.76 billion. Singtel further confirmed that Bharti Telecom Limited (BTL) had purchased about 3.2% of the auctioned interest while the public purchased the remaining portion. Pastel Limited and Viridian Limited are the two Singtel affiliates that carried out the transaction. A total of 198 million Bharti Airtel shares, or around 3.33% of the total number of Airtel equity shares, have been sold and transferred between the two entities.

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