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A New Entrant in the Singapore Telecommunications Market. StarHub Pte Ltd at IDA Public Forum 15 May 2000. Outline. Background & Our Short History Critical Milestones Some of our experience : The New Entrant Conclusion. StarHub Shareholding. Consortium of 4:- STT 34.5% SP 25.5%
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A New Entrant in the Singapore Telecommunications Market StarHub Pte Ltd at IDA Public Forum 15 May 2000
Outline • Background & Our Short History • Critical Milestones • Some of our experience : The New Entrant • Conclusion
StarHub Shareholding Consortium of 4:- • STT 34.5% • SP 25.5% • NTT 22% • BT 18%
Short History • Responded to IDA (then TAS) PBTS tender on 1 March 97 (phase 1 pre-qualification round) and 1 August 97 (phase 2 main tender) • Responded to IDA PCMTS tender on 1 October 97 • Awarded both PBTS and PCMTS licences. StarHub PCMTS and PBTS Licences entered into force since 5 May 2000.
Short History • List of Licensed Services: • Public Switched Telephone Services • Public Switched Message Services • Public Switched ISDN Services • Leased Circuit Services • Public Switched Data Services • Public Radiocommunication Services • Public Cellular Mobile Telephone Services (StarHub Mobile) • Public Internet Access Services (StarHub Internet)
Short History • Mobile Trials from March 2000 • Launched PBTS and PCMTS commercial services on 1 April 2000
Critical Milestones • Commenced interconnect negotiations with SingTel PBTS on July 1998 • Commenced interconnect negotiations with other Paging, Mobile Operators and SingTel for direct and indirect interconnection from Aug 1999 • 5 Interconnect Agreements (IA) to enable any-to-any connectivity in Singapore signed before launch of commercial services
Critical Milestones • IA with SingTel for Fixed-to-Fixed Interconnect signed 30 June 99 • IA with StarHub Mobile signed 15 Feb 2000 • IA with SunPage signed 7 March 2000 • IA with M1 signed 15 March 2000 • Transit Agreement with SingTel to all MTOs signed 31 March 2000 (though mobile trials ongoing since March under Commercial Trial Agreement with SingTel).
Our Experience • Negotiated against a backdrop of Interconnect Framework and Guidelines in place • IDA facilitation and intervention where deemed necessary • Broad Guidelines on Competitive and Regulatory Framework: Information Package • Progress of Negotiations as expected with Dominant Player
Our Experience • Basis of what StarHub wanted: • Economically, Technically & Administratively Efficient Interconnection • Any-to-any capability • Ability and freedom for Customers to choose, access and use the service he/she wants to • Speed of Implementation
Our Experience • Probably not very different from Rest of the World • Behaviour of Dominant Player vis a vis New Entrants • Each coming from different ends of the spectrum
Our Experience • IDA Regulatory Intervention • Areas that will potentially jeopardise any-to-any connectivity and launch dates • Level playing field and asymmetry in bargaining position between New Entrant and Dominant Player • Balance between commercial and regulated areas • IDA has and will act swiftly when necessary
Our Experience • What we want to see: • Dominance regulation • Between non-dominant licensees, light handed approach to regulation and negotiation • Clear guidelines and ground rules to preempt abuse of Dominant Power in dealing with competitors and competing for consumers in the marketplace. • Tariff filing, accounting separation, unbundling of services, access to infrastructure & network, sharing of essential or bottleneck facilities, interconnection, minimum quality of services to competitors etc
Our Experience • Quick and effective enforcement of regulatory framework • Quick Intervention in cases of breach of regulatory framework • Greater consultation and transparency in policy making
Conclusion • Welcomes full competition in the Singapore telecommunications market • Greater choice for consumers and even licensees • Keen to work with IDA in developing Singapore as a ICT Hub • Happy to cooperate and negotiate with all players