Sunday Communications has made a last-minute decision not to take part in Singapore's third-generation (3G) mobile auction because of difficulty in securing bank financing.
The Hong Kong-based PCS operator said it would not enter the auction just before the deadline yesterday for posting a non-revocable bond.
Two weeks ago it announced plans to be the fourth and the only new operator in the city-state.
Sunday group managing director Craig Ehrlich said 3G was difficult to finance: 'After extensive meetings with bankers, we could not receive a complete project financing.'
Project finance was seen to be vital for Sunday, which has a cash balance of about HK$600 million. An up-front minimum charge of S$150 million (about HK$644.4 million) is required for the Singapore auction which aimed to issue four 3G licences.
After Sunday withdrew, the Singapore Government said it would grant three 3G licences to incumbent operators.