The Infocomm Development Authority of Singapore (IDA) will exempt SingTel from Dominant Licensee obligations1 for the provision of a suite of international capacity services (ICS)2. These include services such as International IP ...
Singapore, 12 April 2005 | For Immediate Release
Obligations for Backhaul, International Private Leased Circuits Services, and International Managed Data Services to Remain
The Infocomm Development Authority of Singapore (IDA) will exempt SingTel from Dominant Licensee obligations1 for the provision of a suite of international capacity services (ICS)2. These include services such as International IP Transit, Leased Satellite Bandwidth, VSAT, DVB-IP, Satellite TV Uplink/Downlink, and Satellite International Private Leased Circuit. SingTel will no longer be required to file tariffs, and will have more flexibility in packaging and bundling different services. The exemption is granted for the above services as these markets are fully competitive and SingTel does not have significant market power to impede competition in these markets. As such, it is no longer necessary to impose Dominant Licensee obligations on SingTel to preserve fair and effective competition among the operators in these markets.
However, IDA will retain Dominant Licensee obligations on SingTel in the Backhaul and Terrestrial International Private Leased Circuit markets3. IDA has assessed that SingTel continues to possess significant market power in these markets. While competition is developing in these markets, SingTel still controls the essential infrastructure and inputs for these services. However, in view of recent regulatory measures to enhance competition in the local leased circuits market, and allowing greater access to submarine cable landing stations, IDA will consider reviewing the level of competition in these two markets in two years' time to determine if exemption can be granted then.
In addition, IDA has decided to grant partial exemption for International Managed Data Services (IMDS), which comprises of services such as Frame Relay, ATM and IP-VPN. This means SingTel will be exempted from all ex ante Dominant Licensee obligations, which are regulatory requirements guarding against anti-competitive conduct that SingTel has to adhere to before offering any service. These include requirements to file and seek approval for tariffs. However, ex post provisions will be retained, which are provisions that allows IDA to take enforcement actions against SingTel should they engage in anti-competitive conduct, such as pricing abuses in the IMDS market. IDA will consider reviewing the need for the continued imposition of ex post regulation on SingTel's provision of IMDS in two years' time.
IDA arrived at this final decision after a careful review of the state of competition in the ICS markets in Singapore. IDA also considered industry feedback, obtained through interviews with the industry and two rounds of public consultation exercises.
IDA's review sought to determine whether competition in the ICS markets had developed to an extent where existing regulatory requirements imposed on SingTel were no longer necessary to prevent anti-competitive behaviour, which can be effectively checked by competitive market forces. Factors considered include the presence of competitors in the relevant markets; the Dominant Licensee's market share; the level of market concentration (market share versus number of players); the ability of competitors to replicate facilities or gain market entry; and the ability of the Dominant Licensee to restrict output and raise prices.
IDA's decision is in line with its principle of proportionate regulation. To the extent that a given market is not yet competitive, significant ex ante regulatory intervention is likely to remain necessary. In markets where there is effective competition, IDA will place reliance on market forces, subject to minimum requirements designed to protect consumers and prevent anti-competitive conduct.
ISSUED BY CORPORATE & MARKETING COMMUNICATION DIVISION
INFOCOMM DEVELOPMENT AUTHORITY OF SINGAPORE
Notes to Editor:
1 Under Section 2.5 of the Code of Practice for Competition in the Provision of Telecommunications Services (the 'Code'), a Dominant Licensee may submit a request to IDA to exempt itself from specific Dominant Licensee provisions and requirements. The Dominant Licensee must demonstrate that the continued application of the provision to a specific facility or service is not necessary to protect end users or promote and preserve effective competition amongst Licensees. The Dominant Licensee must provide verifiable data to support its request. The Code can be found at https://www.imda.gov.sg/, under the sections "Policy & Regulation", "Codes of Practice".
According to the Code, a Licensee will be classified as dominant if it: (a) is licensed to operate facilities used for the provision of telecommunication services in Singapore that are sufficiently costly or difficult to replicate; or (b) has the ability to exercise significant market power in any market in the provision of telecoms services in Singapore.
2 International Capacity Services (ICS) is a term used by SingTel in its filing with IDA to refer to a suite of international bandwidth services. Please refer to the appended Annex for a Pictorial Representation of ICS and the Glossary for definitions on various ICS terms.
3 Please refer to the appended Annex for a summary on IDA's decision on SingTel's request for exemption from Dominant Licensee obligations for ICS.
Supplementary Information:
Please refer to IDA's Media Portal at https://www.imda.gov.sg/ for a brief overview of International Capacity Services (ICS) and a glossary of ICS terms.
About Infocomm Development Authority of Singapore
The Infocomm Development Authority of Singapore (IDA) develops, promotes and regulates info-communications in Singapore, with the aim of establishing Singapore as one of the world's premier infocomm capitals. To nurture an internationally competitive infocomm industry, IDA offers a comprehensive range of programmes and schemes for both local and international companies. For more information, visit https://www.imda.gov.sg/.
For media clarification, please contact:
Dulcie Chan
Assistant Director, Corporate & Marketing Communication
Infocomm Development Authority of Singapore
Tel: (65) 6211 1999
Fax: (65) 6211 2227
Email: dulcie_chan@imda.gov.sg
Annex
| Summary of IDA's Decision on SingTel's Request for Exemption | ||
|---|---|---|
| Market | Exemption Granted? | Conditions |
| International Managed Data Services - Frame Relay, ATM, IP-VPN | Partial | IDA will consider reviewing market conditions in two years to determine if ex post regulation can be exempted. |
| International IP Transit | Yes | N.A. |
| Leased Satellite Bandwidth | Yes | N.A. |
| VSAT | Yes | N.A. |
| DVB-IP | Yes | N.A. |
| Satellite TV Uplink | Yes | N.A. |
| Satellite TV Downlink | Yes | N.A. |
| Satellite IPLC | Yes | N.A. |
| Terrestrial IPLC | No | IDA will consider reviewing market conditions in two years to determine if exemption can be granted. This is in view of recent regulatory measures introduced by IDA to enhance competition in submarine cable landing station access and local leased circuits, which will have a positive impact on these two markets. |
| Backhaul | No | Same as Terrestrial IPLC |
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