Interconnection in Singapore

1. Interconnection in Singapore Abdelfattah ABUQAYYAS CoE/ARB Coordinator Abuqayyas@itu.int ITU - BDT Workshop on Interconnection Tunis – Tunisia; 26 – 28 January 2004

2. The Code of Practice for Competition • The Code of Practice for Competition (Telecom Competition Code) • Issued by the Info-communications Development Authority of Singapore IDA • This Code repeals and fully supercedes the Interconnection, Access and Infrastructure Sharing Code issued by the Telecommunication Authority of Singapore TAS • Published on 15 September 2000 • Formulation of the Code • Refinements based on forums, public comments and experience • Reflects international best practices, Singapore’s legal environment and policy goals • Designed to be clear and forward-looking Workshop on Interconnection Tunis – Tunisia; 26 – 28 January 2004

3. Regulatory Principles • The following Regulatory Principles provide the foundation for this Code: • Reliance on market forces and voluntary agreements, where feasible • Promotion of competition • Proportionate regulation • Technological neutrality • Gradual elimination or modification of unnecessary provision of the Code • Open and reasoned decision-making • Avoidance of Unnecessary Delay • Non-discrimination • Opportunity for review • Gradual elimination or modification of unnecessary provision of the Code Workshop on Interconnection Tunis – Tunisia; 26 – 28 January 2004

4. Asymmetrical Regulation • Dominant licensees • A Licensee will be classified as dominant if it controls facilities that provide a direct connection to end users, regardless of the technology used and have: • The Licensee has the ability to restrict output or raise prices above competitive levels for telecommunication services provided to end users over those facilities; or • The facilities are sufficiently costly or difficult to replicate • Required to comply with more stringent requirements on interconnection and consumer protection • Non-dominant licensees • All other licensees • Non-dominant Licensees are subject to competitive market forces • Minimum “rules of the road” and ex-post enforcement Workshop on Interconnection Tunis – Tunisia; 26 – 28 January 2004

5. Designation of Dominant Licensee • SingTel (Incumbent) and SCV • Can seek reclassification or exemption from obligations on a service/facility basis • Licensee must offer information proving that it does not meet criteria • Case of Singapore Cable Vision (SCV) • Cable TV operator with island-wide cable network • Exempted from many obligations, e.g. provision of unbundled access to network • Reason: technical unfeasibility, nascent broadband market • IDA to review case periodically Workshop on Interconnection Tunis – Tunisia; 26 – 28 January 2004

6. Duties of licensees to their end users • General duties of all licensees • Duty to comply with minimum quality of service requirements • Duty to provide periodic, accurate and timely bills • Duty to provide procedures to contest charges • Suspension or termination of service by licensee should be specified • Prohibition on excessive early termination liabilities • Duty to protect end user service information EUSI • Reporting requirement: licensees must submit to IDA the number of complaints that they have received from their end users during the reporting period. • Special duties of dominant licensees • Duty to provide service on demand • Duty to provide service at just and reasonable prices, terms and conditions • Duty to Provide Service on a Non-discriminatory Basis • Duty to File and Provide Service Pursuant to Tariffs • Duty to Provide Unbundled Telecommunication Services Workshop on Interconnection Tunis – Tunisia; 26 – 28 January 2004

7. Interconnection • General duty to interconnect • All Facilities Based Operators (FBOs) • All Service Based Operators (SBOs) using switching or routing equipment • Interconnection between non-dominant licensees • Limited IDA role • Reliance on market forces – private negotiations • Confirm that agreements meet minimum standards • Private enforcement - courts • IDA conciliation only at the request of both licensees Workshop on Interconnection Tunis – Tunisia; 26 – 28 January 2004

8. Interconnection with a Dominant Licensee • Three Options • Adoption of an approved reference interconnection offer RIO extended by the dominant licensee • Adopting an existing interconnection agreement between the dominant licensee and any similarly situated licensee • Negotiating new individualized agreement between the dominant and requesting licensees Workshop on Interconnection Tunis – Tunisia; 26 – 28 January 2004

9. Reference Interconnection Offer RIO • Characteristics of the RIO • RIO must be modular • Prices, terms and conditions of the RIO to be sufficiently detailed to preclude negotiations • Further discussion only limited to implementation • Discussions limited to 30 days • RIO can be accepted first on an interim basis • Development of the RIO • Dominant licensees to publish RIO 30 days from effective date of Code • Decision process: • RIO submitted by SingTel – 30 Oct 2000 • IDA consults industry through website – 30 Oct 2000 • IDA notifies SingTel of necessary amendments – 13 Dec 2000 • Revised RIO submitted by SingTel – 26 Jan 2001 • SingTel requests for exemption from certain provisions – 29 Jan 2000 • IDA reviews request, issues final directions and approves RIO – 31 Jan 2001 • RIO published on IDA website – 31 Jan 2001 Workshop on Interconnection Tunis – Tunisia; 26 – 28 January 2004

10. Contents of the RIO • Locations and Points of Interconnection • Technical interface information • Service provisioning timeframes and remedies • Operational and Technical requirements to avoid harming dominant licensee’s network • Billing information • Protection of confidential information exchanged • Number portability procedures • Origination, termination and transit services • Unbundled network elements and services • Co-location space rights and procedures Workshop on Interconnection Tunis – Tunisia; 26 – 28 January 2004

11. Contents of the RIO • Essential support facilities • Wholesale services • Service ordering procedures • New service request procedures • Reasonable restrictions (e.g. on capacity, technical or operational constraints) • Dispute resolution procedures • Prices, terms and conditions on accepting the RIO to be effective for 3 years after publication of Code • Coincides with mandatory triennial review Workshop on Interconnection Tunis – Tunisia; 26 – 28 January 2004

12. RIO - Basic Interconnection Related Services (IRS) • Physical Interconnection (PI) • Dominant licensee to offer traffic exchange at certain Points of Interconnection (POI) and Points of Access (POA) • Dominant licensee to offer physical interconnection to all FBOs but only virtual (distant) interconnection to SBOs • Origination/Transit/Termination (OTT) • Dominant licensee to provide PSTN Voice OTT services to a requesting licensee • Essential Support Facilities (ESF) • Passive support structures, for which no practical alternatives exist, that enable deployment of telecoms infrastructure • Dominant licensee to offer co-location in certain facilities, access to manholes, trenches, ducts and conduits, masts, towers and poles Workshop on Interconnection Tunis – Tunisia; 26 – 28 January 2004

13. RIO - Basic Interconnection Related Services (IRS) • Unbundled Network Elements (UNE) • Telecom plant and equipment and associated service functionality that can be de-coupled from a dominant licensee’s network to provide telecom service • No placing of restrictions on resale of UNEs • UNEs to be offered: local loops, sub loops, distribution frame access and line sharing (loop spectrum for DSL) • Unbundled Network Services (UNS) • Services not economically feasible to replicate • Access to emergency services call centres • Connection services (cross-connect) at submarine cable landing stations (introduced in August 2002) Workshop on Interconnection Tunis – Tunisia; 26 – 28 January 2004

14. RIO - Pricing • Prices offered for all IRS to be cost based • Where feasible, methodology based on incremental forward looking cost (FLEC) to be used • IDA originally considered 3 methodologies • Historical/Embedded Costs • Current Replacement Costs (CRC) • Forward Looking Economic Costs (FLEC) • FLEC chosen due to certain competition considerations • Long run average incremental cost (LRAIC), a common measure of FLEC, to be used to compute most IRS • Special considerations applicable to broadband Workshop on Interconnection Tunis – Tunisia; 26 – 28 January 2004

15. Competition • Overview • Telecommunications sector-specific rules • Based on general competition law principles and international best practices • Aim of moving from ex ante regulation to ex post as competition takes root • Prohibitions against: • Abuse of dominant position • Pricing abuses (predatory pricing, price squeezes) • Monopoly leveraging (cross-subsidization, discrimination) • Unfair methods of competition • False claims • Degradation of service availability or quality • Provision of false information to competitors Workshop on Interconnection Tunis – Tunisia; 26 – 28 January 2004

16. Competition • Prohibitions against: (continued) • Agreements that restrict competition • Price fixing • Bid rigging • Geographic and customer divisions • Group boycotts • Exclusive dealing, etc. • Assessment of industry consolidations likely to restrict competition • IDA to review and approve mergers and acquisitions between FBOs Workshop on Interconnection Tunis – Tunisia; 26 – 28 January 2004

17. Consumer Protection • Duties of all licensees • Minimum quality of service standards • Periodic, accurate and timely bills • Advance disclosure of all prices, terms and conditions • No charges for unsolicited services or equipment • Duty to provide procedures to contest charges • Protection of End User Service Information • Duties of Dominant licensees • Provide telecommunication services to any end user upon reasonable request • Provide services at just and reasonable prices terms and conditions Workshop on Interconnection Tunis – Tunisia; 26 – 28 January 2004

18. Review of the Code • Mandatory review • Rapid development of new technology and changes in market competition • Built-in mandatory review of the Code every three years • Opportunity for public comment • Optional review • IDA can review the Code at any time on its own initiative Workshop on Interconnection Tunis – Tunisia; 26 – 28 January 2004

19. Review of the Code in 2002 • Revised Interconnection dispute resolution framework • Licensees now given more time to consider issues before raising dispute to IDA • Designation of connection services at submarine cable landing stations as Unbundled Network Service (UNS) • Dominant licensees to provide cross connect services on unbundled cost-based basis • Lifting of requirement to offer Dark Fiber and International Private Leased Circuits at wholesale prices • Dominant licensees no longer required to offer wholesale prices here with increased competition in these markets Workshop on Interconnection Tunis – Tunisia; 26 – 28 January 2004

20. Review of the Code in 2002 • Case of Connection Services at Submarine Cable Landing stations • Aim: to facilitate competitive entry into the international facilities market, in particular the provision of backhaul facilities • Decision process: • IDA releases Consultation Paper to industry on website – 21 May 2002 • Taking into account industry responses IDA directs SingTel to amend RIO – 24 June 2002 • SingTel requests review of direction – 9 July 2002 • IDA Decision on review of direction – 26 July 2002 • SingTel proposes amendments to RIO – 2 Aug 2002 • Amendments approved by IDA – 21 Aug 2002 Workshop on Interconnection Tunis – Tunisia; 26 – 28 January 2004

21. Enforcement • Process • Notice given with opportunity to respond • Enforcement actions • Warnings • Cease and desist orders • Monetary sanctions, proportionate to the contravention (Up to S$1,000,000 per contravention) • Suspension and cancellation of license • In imposing financial penalties, IDA considers aggravating or mitigating factors of the circumstances Workshop on Interconnection Tunis – Tunisia; 26 – 28 January 2004

22. Interconnection in Singapore Thank You abdelfattah.abuqayyas@itu.int Workshop on Interconnection Tunis – Tunisia; 26 – 28 January 2004