To further enhance competition in Singapore's telecom market, the Infocomm Development Authority of Singapore (IDA) is reviewing the Telecom Competition Code1 (the Code) and has proposed revisions to the Code. First introduced in September 2000, the Code sets out competition guidelines with the aim of accelerating competition in a liberalised telecom market.
Singapore, 07 October 2003 | For Immediate Release
To further enhance competition in Singapore's telecom market, the Infocomm Development Authority of Singapore (IDA) is reviewing the Telecom Competition Code1 (the Code) and has proposed revisions to the Code. First introduced in September 2000, the Code sets out competition guidelines with the aim of accelerating competition in a liberalised telecom market.
Following three years of market development, IDA is conducting its first triennial review2 of the Code to ensure its relevance in today's market environment. The proposed revisions will result in less regulation in market segments that have competition. On the other hand, in segments that have yet to achieve effective competition, revisions are being proposed to enhance competition.
In market segments where there is competition, IDA will scale back its regulatory role. Key revisions proposed by IDA include taking a less prescriptive approach towards consumer protection. For example, telecom licensees will have the flexibility in how to collect customer information, but will still be required to obtain customer consent prior to usage. Other proposed revisions include relaxing advertising rules so that licensees have increased flexibility to market their services and equipment, and allowing non-dominant licensees to resolve disputes through commercial negotiations. The basic approach here is to rely on market forces and industry self-regulation, as these are more effective in sustaining competition in the long term.
However in markets segments that are not effectively competitive, IDA will continue to monitor developments and maintain regulatory oversight. This is to ensure that strategic areas or facilities essential for competition will be accessible by competing players. In this respect, IDA is proposing that dominant licensees offer wholesale services at "retail-minus avoidable cost"3 prices, and for them to publish all telecom service tariffs approved by IDA.
In addition, IDA is also proposing modifications to the Code, such as reviewing the definition of a dominant licensee to one which has control over telecom facilities that are costly or difficult to replicate, or has the ability to restrict output or raise prices above competitive levels. This proposed revision would be in line with international practices. Another proposed refinement to the Code is specifying the process licensees follow to request reconsideration of IDA's decisions. This will increase clarity for licensees and is also in line with Singapore's FTA commitments.
The proposed Code revisions were presented today at the IDA Regulatory Workshop, where latest regulatory trends in telecom and competition law were shared with more than 300 industry participants.
Details of the proposed revisions to the Code are in IDA's Telecom Competition Code Consultation Document. This is available from the IDA website at https://www.imda.gov.sg/ under the "Policy & Regulation/Consultation Papers" section. IDA invites views and comments on its proposed changes to the Code. These are to be submitted in writing, to reach IDA on or before 12 noon, Friday, 5 December 2003. IDA expects to complete the review of the Telecom Competition Code in the first half of 2004.
ISSUED BY CORPORATE COMMUNICATION DIVISION
INFOCOMM DEVELOPMENT AUTHORITY OF SINGAPORE
Notes to Editor:
1 The Code of Practice for Competition in the Provision of Telecommunication Services (Telecom Competition Code) first came into effect on 29 September 2000. It defines the boundaries for conduct of competition in a fully liberalised telecom environment, and aims to establish a clear and robust competition framework to foster fair, effective and sustainable competition and promote consumer welfare.
The Code is one of the most comprehensive competition frameworks among countries with liberalised telecom markets, and it was developed in close consultation with the industry, and with local and international telecom experts. It was also based on studies of best practices in other countries. The Code is available under the 'Policy & Regulation' section of the IDA website at https://www.imda.gov.sg/.
2 Section 1.6 of the Code requires IDA to carry out a review the Code at least once every three years.
3Avoidable costs are costs that aan operator will not incur if it does not provide telecomLLC services on a retail basis. Examples of such costs those incurred for marketing, advertisement, billing, product management, etc.
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:
Ms Cindy Kong
Manager, Corporate Communication
Infocomm Development Authority of Singapore
Tel: +65 6211 1997
Fax: +65 6211 2227
Email : cckong@imda.gov.sg
Ms Dulcie Chan
Assistant Director, Corporate Communication
Infocomm Development Authority of Singapore
Tel: +65 6211 1999
Fax: +65 6211 2227
Email: dulcie_chan@imda.gov.sg
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