From 1 February 1997, the Telecommunication Authority of Singapore (TAS) will allow resale of leased circuit services. With this move, companies can now subscribe to leased circuit services from Singapore Telecom ...
Singapore, 10 January 1997 | For Immediate Release
From 1 February 1997, the Telecommunication Authority of Singapore (TAS) will allow resale of leased circuit services. With this move, companies can now subscribe to leased circuit services from Singapore Telecom (SingTel) and resell these to their customers for intra-corporate communications . This means that companies will be able to share a leased circuit or lease a circuit for resale to other users for their intra-corporate communications.
Currently, SingTel has the exclusive rights for the provision of leased circuit services till 31 March 2000. Leased circuits are meant for users who have a high enough volume of communications to justify a private dedicated telecommunication link for their own intra-corporate communications.
The resale of leased circuits services will encourage more competitive prices and wider range of services to meet the telecommunication needs of businesses, which will have more choices of leased circuit providers instead of only buying circuits directly from SingTel. The move will further enhance Singapore's position as a competitive business hub.
Key Licence Conditions
Companies seeking to resell or share leased circuits with other users must be licensed by TAS. The scope of the licence allows companies to package and resell these as leased circuit services to their customers.
The leased circuits are not allowed to be connected to any public switched networks at either or both ends of the circuit. Leased circuit resellers are not permitted to provide public switched telecommunication services such as local calls, International Direct Dialing (IDD) /Subscriber Trunk Dialing (STD) calls, data, facsimile services to their customers via the leased circuits. In industry terms, simple resale is strictly not permitted.
Only companies with leased circuits from SingTel will be eligible to resell and share leased circuits under this licence. This policy will not be extended to companies which establish their own VSAT (Very Small Aperture Terminals) links under TAS' Self-Provisioning VSAT for Intra-corporate Communication Licence.
The leased circuits resale licence is valid for a period of one year after which it may be renewed on a yearly basis. The licence will consist of an initial one-time fee of $50,000 and an annual recurrent fee of one percent annual gross turnover, subject to a minimum of $10,000 whichever is higher.
Interested parties will be able to apply to TAS for a leased circuit resale licence from 1 February 1997.
Background Note to the editor:
Intra-corporate communication refers to internal company communication between holding and subsidiary companies. A "holding" company refers to one which holds more than 50% of the issued share capital of another company, which is referred to as the "subsidiary" company. "Subsidiary" has the same meaning as in the Companies Act.