SINGAPORE — Fourth telco hopeful OMGTel recently approached fibre services provider MyRepublic to propose embarking on a joint bid for the fourth telco licence, according to MyRepublic chief executive officer Malcolm Rodrigues.

However, he rejected OMGTel’s proposal, which was made a couple of months ago, due to different ideas about ownership, as well as the cost that should be sunk into a mobile network.

Local technology firm Consistel, which owns OMGTel, declined to confirm or deny Mr Rodrigues’ claim.

In an interview on Tuesday, he told TODAY: “They have a plan that needs S$1 billion. Also, they said, you take 10 per cent, I take 10 per cent. And we should find an investor to put in 80 per cent.”

“But I don’t want just 10 per cent. Why should we?” Mr Rodrigues said.

OMGTel had been reportedly previously as saying that it was embarking on the telco venture not just to be the smallest operator, whereas Mr Rodrigues told TODAY that MyRepublic’s plan was to gain 13 per cent market share.

MyRepublic has stated that it would need just S$250 million to build a mobile network, citing fixed assets and an IT system it already has, while Consistel is of the view that it would take at least S$1 billion to build one.

The three telcos — Singtel, StarHub and M1 — have all spent more than S$1 billion to date to build mobile networks that meet the Infocomm Development Authority’s (IDA) Quality of Service standards.

The IDA is expected to hold a mobile spectrum auction in the third quarter of this year and spectrum rights will start next April — the earliest that the fourth telco may begin services.

In response to TODAY’s queries, a Consistel spokesperson would only say: “We are happy where we are and have great partners in our equity group and banks. We remain committed for least S$1 billion for the network/operations and we believe that much more than S$400 million is needed to meet IDA’s indoor/buildings coverage requirements and to be competitive with the incumbents.”

In March, it was reported that Consistel was in the process of securing S$400 million to fund its bid to be Singapore’s fourth telco and the rollout of its network infrastructure.

Mr Masoud Bassiri, Consistel and OMGTel chairman and founder, was quoted then as saying that OMGTel has had “serious investment offers”, and have only to “sign the papers”.

When asked how much funding OMGTel has procured, the Consistel spokesperson would only say that “it does not disclose the quantum of funds raised due to various reasons”.

On OMGTel’s plans nearing the auction date, she said: “We are readying our designs and post-auction network roll out. We are looking at our team and expanding our organisation to meet all of the challenges facing a new entrant, and will expand as much as necessary to be viable and worthy to compete with the incumbents.”