3G is the third generation in mobile cellular communications systems, which generally expected to be deployed globally by 2003.
According to Yeo, a few major telecom players have shown interest in the licensing. However, he declined to reveal any details on the method of evaluation for the 3G licensing, noting instead that a further announcement will be made in due course.
In a previous interview with Singapore.CNET.com in July, IDA chief technology officer Brian Chen said: "We haven't decided on the evaluation method. However, it is currently under careful study, and the final (results) will be announced in two to three months."
Citing a UK example where the winning bid for a 3G license was about US$35 billion (roughly S$61 billion) for a population of 16 million people, Chen noted that if applicants were to bid for the licenses in a pure auction here, the cost of licensing could range between US$1 billion to US$2 billion.
"However, the technology in the industry so dynamic, we don't know what's going to happen...(Moreover) US$2 billion is a lot of money; it could be cheaper," Chen said.
In August, six telecommunications companies in Germany bid a total of US$46.2 billion for the right to launch 3G mobile phones there, far outstriping two earlier auctions in Britain and the Netherlands. Deutsche Telekom AG's unit T-Mobil was the highest bidder in the auction, paying US$7.8 billion for its licenses.
In the earlier Singapore.CNET.com article, Gartner Group director for telecommunication and eBiz Asia Pacific Bertrand Bidaud observed that "I believe the IDA will not award more than four licenses because...(of Singapore's) market size".
However, he did not expect the IDA to use the price-auction method to determine the winners. "I think the IDA will use the 'beauty contest' method to award the license, as it allows the regulatory body to evaluate various factors (such as technology and benefits to consumers)."
Commenting on yesterday's compensation package for SingTel and StarHub, Yeo noted the compensation should have no impact on the industry. The biggest impact, according to the minister, was the liberalization of the telecommunication industry that took place in April.
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