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Advancing from one G to the next: Is it time for a new funding model?

Samantha Chiew
Samantha Chiew9/29/2022 01:25 PM GMT+08  • 6 min read
Advancing from one G to the next: Is it time for a new funding model?
5G funding: is there a need for an upgrade?
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In a way, Singapore Telecommunications’ (Singtel) multi-market presence has given it flexibility in funding capex when rolling out its 5G networks in different markets. In Singapore, the bulk of that spending has been completed. Most of the future 5G expenses set aside will be for maintenance. However, in Australia where the 5G network covers a much wider area, Singtel’s subsidiary Optus is just about to enter the peak spending phase.

CFO Arthur Lang says that instead of going head-on to cover as much ground as incumbent Telstra, Optus will spend “smartly” where it makes the most sense for its customer base.

Indeed, the innovative nature of the telco or tech industry means that there is a constant need to upgrade. Mobile operators are at present busy trying to fund 5G networks. But for some, they had barely finished paying for 4G capex, which, in turn, was an upgrade from 3G. As it is, the network equipment providers, with obvious self-interests, have started painting visions of a wonderful 6G world.

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