IDA Imposes a Financial Penalty of $300,000 on M1 for breach of the Code of Practice for Telecommunication Service Resiliency

14 November 2011 - The Infocomm Development Authority of Singapore (IDA) has imposed a financial penalty on M1 Limited (M1) for breaching the Code of Practice for Telecommunication Service Resiliency ("Service Resiliency Code").

Singapore, 14 November 2011 | For Immediate Release

Penalty Imposed After a Service Disruption in M1's Mobile Network which Affected
More Than 5 Per Cent of M1's Base Stations

The Infocomm Development Authority of Singapore (IDA) has imposed a financial penalty on M1 Limited (M1) for breaching the Code of Practice for Telecommunication Service Resiliency ("Service Resiliency Code"). This follows IDA's investigation into the disruption of M1's mobile services on 18 May 2011, which found that M1 had not fulfilled its obligation to provide resilient mobile telephone services.

The mobile service disruption caused some of M1's mobile subscribers in the western region of Singapore to experience difficulty in making and receiving calls and accessing SMS, MMS and mobile data services via mobile phones. Investigations showed that the service disruption was caused by faulty hardware cards in M1's backend systems. This affected the normal functioning of a database in M1's network that is used to identify and update the location of M1's subscribers at the western part of Singapore. Mobile services to these end users were thus disrupted. The service disruption affected more than 5 per cent of M1's base stations. Due to the unique nature of the service incident, no alarms were triggered in M1's monitoring system, which affected M1's initial efforts in identifying and isolating the cause of the service disruption.

Given the serious impact of the service disruption, IDA has decided to impose a financial penalty of $300,000 on M1 for its contravention of the Service Resiliency Code. While IDA noted that the fault that caused the service disruption was not foreseeable and not within M1's control and M1 needed time to identify and restore service, IDA deemed that M1's efforts to restore the services expeditiously were not satisfactory. In its decision, IDA took into consideration the prolonged delay in isolating and identifying the fault, and to restore services. IDA also considered mitigating factors such as M1's efforts to compensate end-users. IDA has also obtained M1's assurance that it has taken measures to prevent similar occurrences in future.

The Service Resiliency Code, which was first announced publicly in 1998 and revised in 2008, sets out the service standards and a penalty framework for service disruptions which result in widespread service difficulties. Under the Code, IDA may impose financial penalties which may vary according to the duration and extent of the disruption. IDA takes into consideration any mitigating factors or circumstances that the licensees may have before deciding on the penalties to be imposed for service disruptions listed in the penalty framework. The maximum financial penalty that IDA may impose for a breach of the obligations under the Service Resiliency Code is up to $1 million.

IDA takes a serious view of telecom service disruptions and telecommunication service providers are required to continually improve the resiliency of their networks, in order to ensure that they will strive to always provide reliable telecom services in Singapore for consumers and businesses.

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ISSUED BY CORPORATE AND MARKETING COMMUNICATIONS DIVISION
INFOCOMM DEVELOPMENT AUTHORITY OF SINGAPORE

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Related Resource:

• Factsheet - Code of Practice for Telecommunication Service Resiliency
  
  Factsheet
  (November 2011)

  Code of Practice for Telecommunication Service Resiliency 2008 ("Service Resiliency Code")

  In 1998, IDA introduced the Code of Practice (Service Standards on Network Quality) on service standards and the penalty framework for telecommunication service disruptions which were short-termed in nature, but resulted in widespread service difficulties. This framework was revised and renamed as the Code of Practice for Telecommunication Service Resiliency (the "Service Resiliency Code") in 2008 to ensure its continued relevance in view of market developments.

  The objective of the Service Resiliency Code is to ensure that telecommunication service providers providing key services to a large number of end users adopt proactive measures to invest in and improve the resiliency of their telecommunication networks to prevent widespread service difficulties, and in the event such service difficulties occur, to ensure that these service providers take all measures to restore services as quickly as possible. Services covered by the Service Resiliency Code include fixed-line, mobile and international telephone services, Internet access services and interconnection services.

  Under the Service Resiliency Code, IDA may impose financial penalties for breach of the Service Resiliency Code and the financial penalties may increase with the duration of the service difficulty, as well as the extent of the service difficulty. The table below provides a guide on the amount of financial penalty that IDA may impose for failure to comply with the Service Resiliency Code. IDA will take into consideration any mitigating factors or circumstances that the service providers may have before deciding on the final penalties to be imposed for service disruptions listed in the penalty framework. The maximum financial penalty that IDA may impose on the applicable service providers for a breach of the obligations under the Service Resiliency Code is capped at $1 million under section 8(1) of the Telecommunications Act.

  Licensees	Applicable services	Impact on applicable services	Financial Penalty*
  Public telecommunication licensee	Any local fixed-line telephone service	Affects an aggregate of 500 or more of the licensee's subscriber lines	From $15,000 to $270,000 per 30mins block, depending on number of lines affected and duration of service disruption
  Public telecommunication licensee	Any international telephone service	Affects international telephone services from Singapore to one or more top 25 countries	From $30,000 to $270,000 per 30mins block and depending on duration of service disruption
  Mobile Facilities- Based Operator (FBO) licensee	Any local mobile telephone service	Affects an aggregate of 5% or more of the licensee's mobile base stations	From $15,000 to $270,000 per 30mins block, depending on percentage of mobile base stations affected and duration of service disruption
  Designated Internet access service provider licensee	Any Internet access service	Results in a loss of 70% or more of the licensee's internet bandwidth to the USA/North America	From $15,000 to $270,000 per 30mins block, depending on percentage of Internet bandwidth affected and duration of service disruption
  Public telecommunication licensee or mobile FBO licensee	Any local fixed-line telephone service, any local mobile telephone service or any international telephone service	Results in an interconnection failure between two or more licensees	From $15,000 to $90,000 per 30mins block and depending on duration of service disruption

  
  

  *Note:

  1. IDA may vary the final financial penalty to be imposed after taking into account the relevant aggravating and mitigating factors. The maximum penalty payable will be capped at $1,000,000.

  2. Not confined to total service disruption. It will also include partial service disruptions.

About Infocomm Development Authority of Singapore

The Infocomm Development Authority of Singapore (IDA) is committed to growing Singapore into a dynamic global infocomm hub. IDA uses an integrated approach to developing infocommunications in Singapore. This involves nurturing a competitive telecoms market as well as a conducive business environment with programmes and schemes for both local and international companies. For more news and information, visit www.ida.gov.sg.

For media clarifications, please contact:

CHIA Wan Fen (Ms)
Manager, Corporate and Marketing Communication
Email: chia_wan_fen@imda.gov.sg

Sheo S. Rai (Mr)
Assistant Director, Corporate and Marketing Communication
Email: sheo_s_rai@imda.gov.sg