Wednesday, December 14, 2016
MyRepublic - Game Over?
Below is MyRepublic Statement's after the results of the bid. Myrepublic bid at $102.5m to return empty handed.
"It was after serious consideration that we decided that bidding $105M and beyond for the spectrum did not support our vision and business case for mobility in Singapore. "
Now considering TPG telecom winning bid at $105m, the idea that a mere excess of $2.5m can totally derail Myrepublic mobile ambition in singapore does not make any sense. The remarks are merely brave words to gloss over a strategic loss. Myrepublic must have through its channels gotten the idea that $100m is going to be TPG bid, so they went for $102.5m.In the end, they got outfox by TPG who have much deeper pocket to play this game.
The prospect of MyRepublic after losing this bid is dim as they will find it very very difficult to remain a niche broadband player with 4 telcos in a small and concentrated market.M1 is closing on them on pricing and Starhub is not that far.
As for TPG telcom, the easy part of winning the bid is over. Now, the difficult and arduous journey start. It remain to be seen that they can overcome the odds having to start virtually from scratch. Their only advantage is support from a financially strong remote parent in Australia which is experiencing growth pains in their home market.