SBO Licence
- a22162
- May 11
- 6 min read
Updated: Aug 11
Singapore SBO Licence Explained
The Services-Based Operations (SBO) Licence in Singapore is required for operators who provide telecommunications services without deploying their own network infrastructure. Instead, SBO licensees lease network elements from licensed Facilities-Based Operators (FBOs) or resell their services. The Infocomm Media Development Authority (IMDA) regulates this licence under the Telecommunications Act 1999.
There are two categories of SBO Licences:
SBO (Individual) Licence
This licence is generally for operators who:
Lease international transmission capacity to provide their services.
Provide services such as public internet access or internet exchange services.
Offer prepaid services for telecommunication services (excluding SBO Class Licence services).
Requirements for SBO (Individual) Licence:
The applicant must be a company incorporated or a foreign company registered under the Singapore Companies Act 1967.
For prepaid services, the applicant company must have a paid-up capital of at least S$100,000.
Submission of necessary documents, including:
Latest ACRA Bizfile report.
Detailed description of each service, including scope and type.
System/network configuration diagrams.
Financial information.
For prepaid services: 3-year projected cash flow statement and source of funding.
Fees for SBO (Individual) Licence:
Annual fee based on the Annual Gross Turnover (AGTO):
First S$50 million in AGTO: S$4,000 annually.
Next S$50 million to S$100 million in AGTO: 0.5% of AGTO annually.
Above S$100 million in AGTO: 0.8% of AGTO annually.
For Live Audiotex services only: S$200 every five years.
The licence is valid for 5 years and is renewable.
Application Process for SBO (Individual) Licence:
Apply online via the GoBusiness Licensing portal.
Prepare and submit all required supporting documents.
IMDA will assess the application, considering the applicant's ability to deliver the service and the quality of service standards.
The processing time is typically within 14 working days from the date of complete submission and clarification.
SBO (Class) Licence
This licence covers a range of telecommunication service-based operations where operators do not collect monetary deposits or use prepaid cards for payment. Examples of services under this category include:
Call-back and call re-origination services.
Internet-based voice and data services.
Resale of public switched telecommunication services.
Store-and-forward and store-and-retrieve value-added network services (in some cases).
Requirements for SBO (Class) Licence:
The applicant can be a company incorporated or a foreign company registered under the Singapore Companies Act 1967, a Limited Liability Partnership (LLP), or a Limited Partnership (LP) registered in Singapore.
SBO (Class) licensees are not allowed to collect monetary deposits or use prepaid cards as a means of payment.
Registration with the IMDA is required through the GoBusiness portal, along with necessary supporting documents, including the ACRA Bizfile report.
Fees for SBO (Class) Licence:
A one-time registration fee of S$200 is applicable for services like Audiotex, call-back/call origination, internet-based voice and data, international calling cards, and store-and-retrieve value-added network services (using leased circuits).
No fee is payable for services like store-and-retrieve value-added network services (without leased circuits), resale of public switched telecommunication services, and public chain payphone services.
SBO (Class) licences do not require renewal.
Application Process for SBO (Class) Licence:
Register online via the GoBusiness portal.
Submit the required information and supporting documents.
Pay the applicable registration fee.
The processing time is typically within 1 working day from the date of complete submission and payment (if applicable).
General Information:
Any person operating a telecommunication network or providing telecommunication services in Singapore must be licensed by the IMDA.
The Telecommunications Act 1999 governs the licensing and regulation of telecommunication systems and services in Singapore.
The IMDA also issues Facilities-Based Operations (FBO) Licences for operators who deploy their own telecommunications infrastructure.
Applicants should refer to the "Guidelines for Submission of Application for Services-Based Operations Licence" available on the IMDA website for more detailed information.
Bestar Professional Fees
Professional fees for SBO license applications in Singapore are separate from the government-mandated fees paid directly to the Info-communications Media Development Authority (IMDA).
Here is a breakdown of our professional fees, categorized by the type of SBO license, along with the services you can expect to be included.
1. Professional Fees for SBO (Class) License Application
An SBO (Class) license application is relatively straightforward. Companies seeking this license are not collecting monetary deposits or using prepaid cards. The services offered are generally a resale of existing telecommunications services.
Fee: SGD 500 to SGD 1,500
What this includes:
Initial consultation to confirm the SBO (Class) license is the correct type for your business.
Review of your company's profile and business model.
Preparation and submission of the online application form to IMDA.
Liaison with IMDA for any clarifications or follow-up questions.
Email updates on the application status.
2. Professional Fees for SBO (Individual) License Application
An SBO (Individual) license application is more complex and requires a higher level of detail and documentation. This license is for businesses that lease telecommunication network elements, offer prepaid services, or have a more extensive and unique business model.
Fee: SGD 2,500 to SGD 8,000+
What this includes:
In-depth Consultation: A detailed discussion to understand your business model, network architecture, financial projections, and service offerings to ensure compliance with IMDA regulations.
Strategic Advice: Guidance on the regulatory requirements, including the minimum paid-up capital of S$100,000 for companies collecting monetary deposits or using prepaid cards.
Comprehensive Documentation Preparation:
Assisting with drafting a detailed business plan.
Creating or reviewing the system/network configuration diagram.
Advising on financial information and projections.
Reviewing and compiling all necessary company documents (ACRA Bizfile, etc.).
Full Application Management:
Submission of the complete application package to IMDA.
Proactive communication and handling of all queries from IMDA throughout the processing period.
Providing updates on the application status until approval is granted.
Factors Affecting the Final Fee:
Our final professional fee within these ranges will depend on:
Complexity of the Business: A more complex business model or network infrastructure will require more time and effort to document and justify to the IMDA, leading to a higher fee.
Urgency: Expedited services may incur additional charges.
Add-on Services: Bestar offers additional services at a separate cost, such as:
Company incorporation services (if the business is not yet registered).
Ongoing compliance and regulatory reporting services post-licensing.
Assistance with other related licenses (e.g., Telecommunication Dealer's License).
To get an accurate quote, it is essential to provide Bestar with a clear and detailed description of your business and the specific services you require.
How Bestar can Help
Given the regulatory nature and the specific requirements involved, engaging professional help can be exceptionally beneficial. Here's a breakdown of how we can contribute:
1. Navigating the Regulatory Landscape:
Deep Understanding of IMDA Requirements: Bestar possesses an in-depth understanding of the Infocomm Media Development Authority's (IMDA) regulations, guidelines, and specific requirements for both SBO (Individual) and SBO (Class) licences. This ensures you're not missing crucial details.
Interpreting Complex Rules: The Telecommunications Act 1999 and related regulations can be complex. Bestar can interpret these rules and explain their implications for your specific business operations.
Keeping Up-to-Date: Regulatory frameworks can change. Bestar stays abreast of the latest amendments and updates, ensuring your application and future operations remain compliant.
2. Streamlining the Application Process:
Determining the Correct Licence Category: We can assess your business model and advise on whether you need an SBO (Individual) or SBO (Class) Licence, saving you time and potential missteps.
Preparing Comprehensive Documentation: Bestar can assist in gathering and preparing all the necessary documents, such as ACRA Bizfile reports, service descriptions, network diagrams (if applicable), and financial projections (for SBO Individual with prepaid services). We ensure all submissions are accurate and complete, minimizing delays.
Crafting Clear and Compelling Service Descriptions: We can help articulate your service offerings in a way that clearly aligns with the IMDA's requirements and demonstrates your understanding of the regulations.
Preparing Financial Projections: For SBO (Individual) applicants offering prepaid services, Bestar can help develop realistic and well-supported 3-year projected cash flow statements and clearly outline your funding sources.
3. Enhancing the Likelihood of Approval:
Ensuring Compliance from the Outset: By guiding you through the application process with a focus on compliance, Bestar significantly increases the chances of your application being approved smoothly and efficiently.
Addressing Potential Issues Proactively: Our experience allows us to anticipate potential questions or concerns the IMDA might have and address them proactively in your application.
Presenting a Professional and Credible Application: A well-prepared and professionally presented application demonstrates your seriousness and understanding of the regulatory requirements.
4. Post-Licence Compliance and Guidance:
Understanding Ongoing Obligations: Bestar can explain your ongoing obligations as an SBO licensee, such as annual fee payments (for SBO Individual), adherence to service quality standards, and reporting requirements.
Advising on Changes to Operations: If you plan to expand your services or make significant changes to your operations, Bestar can advise on whether these changes require further notification or approval from the IMDA.
Assisting with Renewals (for SBO Individual): When your SBO (Individual) Licence is nearing expiry, Bestar can assist with the renewal process, ensuring timely and accurate submissions.
Bestar Can Help:
Bestar has specific expertise in telecommunications licensing and regulatory matters in Singapore.
Bestar can provide professional guidance and ensure compliance with all relevant legislation.
Bestar can help with business planning, financial projections, and overall application strategy.
In essence, engaging Bestar for your SBO Licence application can save you significant time, reduce the risk of errors or rejection, and provide you with the peace of mind that your application is being handled by Bestar who understands the intricacies of the IMDA's requirements. It's an investment that can pay off by ensuring a smooth and compliant entry into the Singapore telecommunications services market.
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