Australian internet provider TPG Telecom will spend up to $381 million to become the fourth mobile network operator in Singapore.
TPG - which is run by founder David Teoh - says it spent $S105 million ($98.7 million) to acquired all of the spectrum available in an auction run by the Singapore government's info-communications agency.
The carrier will now spend between $S200 million and $S300 million to establish a new mobile network in Singapore, where it will compete with Optus-owner Singapore Telecommunications, M1 and StarHub.
"This rare opportunity will enable TPG to expand its business into Singapore, bringing tremendous value to Singaporean consumers whilst generating excellent long-term returns for TPG shareholders," TPG said in a statement.
Australia's second biggest fixed-line internet provider says it expects the venture to become earnings positive when it reaches a market share of five to six per cent
However the company gave no timetable and said only that "should be achievable within a short period of time".
The Singapore business should be operating by September 2018 and will be funded from existing debt and cash generated from its Australian operations as previously flagged.
TPG last week reaffirmed its annual earnings guidance, which was well received by jittery investors after rival Vocus Communications' spooked the market with a weaker-than-expected earnings update.
The group told shareholders at its annual general meeting in Sydney on December 7 that its financial year-to-date results were tracking well against guidance issued in September.
TPG shares were up three cents to $7.25 in early trade on Wednesday.
