TAS will, from 1 August 1999, liberalise the transmission of value-added network (VAN) traffic1 over the Internet. VAN operators, who provide their subscribers with value-added functions, will now have the alternative of carrying their ...
Singapore, 30 July 1999 | For Immediate Release
TAS will, from 1 August 1999, liberalise the transmission of value-added network (VAN) traffic1 over the Internet. VAN operators, who provide their subscribers with value-added functions, will now have the alternative of carrying their VAN traffic over the Internet in addition to via the Public Switched Telecommunication Network (PSTN) or leased circuits. This liberalisation will enable VAN operators to provide a wider range of lower cost VAN services to users through harnessing the pervasiveness of the Internet.
Currently, VAN service operators carry their customers' international traffic over leased circuits and/or the PSTN. With the advances in Internet Protocol technology and the increased popularity of the Internet as a medium of communication, VAN operators can now establish virtual private network (VPN) links over the Internet, by subscribing to Internet access service and installing their own VPN equipment, to carry their customers' VAN traffic. As such, TAS has decided to allow VAN operators to use the Internet to establish their own VPN circuits for carrying their VAN traffic, provided they continue to comply with the VAN licensing framework. In particular, they can only provide value-added messaging and data services but not any form of basic telecommunications services2. They also cannot provide direct Internet access service through the VAN unless they are licensed as an IASP or become resellers of Internet access services.
The use of the Internet as a medium of communication will provide VAN operators a more cost-effective alternative, give them a more pervasive reach to their customers, as well as allow them to exercise more innovation and flexibility. The Internet will also present an attractive option to new or smaller VAN operators who may not have a large enough subscriber base to support the cost incurred for the use of leased circuits.
Existing VAN service operators can write in to TAS for approval to carry their VAN traffic over the Internet. Companies interested to offer VAN services can download the guidelines and apply electronically via the Licensing Application section of this website.
Background Information for Editors:
1. Examples of VAN traffic / services include information retrieval (e.g. financial data), on-line transactions, electronic mail, electronic data interchange (EDI), store-and-forward facsimile and telex services etc. There are currently approximately 140 VAN operators in Singapore.
2. Basic telecommunications services refer to public switched telephone services (e.g. local / international telephone services), public switched data services (e.g. X.25, frame relay services), public switched messaging services (e.g. real-time fax services), ISDN, leased circuits and public radio-communication services.
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