Entry of new telco will benefit customers and job seekers

I refer to the report “Battle for 4th telco comes down to MyRepublic, Aussie firm TPG” (Nov 17). The new telecommunication company would be a much-needed entrant into the industry.

The new competition will possibly lead to a price war, as existing telcos may lower prices to edge out the newcomer.

Firms share a high degree of interdependence in an oligopoly, hence changes in the prices or services of one telco would prompt the others to change theirs, too.

Ultimately, consumers benefit from reduced prices or better plans.

Singapore’s trio of telcos employ thousands of locals, and more jobs would be created from the operations of the new entrant — also much needed amid an economic slowdown.

It is a head-to-head race between MyRepublic, headed by former StarHub vice-president Malcolm Rodrigues, and Australian company TPG.

Regardless of who the new kid on the block will be, it would be a welcome sight to see one clinch the licence.

Given that the existing operators have been around for years, however, customers have developed some brand loyalty to their service provider.

With steep cancellation fees and long-term contracts, the new telco might not see customers flocking to its doors when the ribbon is cut. Finding a foothold in the industry may prove to be a task.

Either way, my hope is for better data bundles in the near future.