ISPs say 'no' to OpenNet sale

ISPs say 'no' to OpenNet sale

A resounding "no" was the response of all six local Internet service providers (ISPs) to the planned sale of OpenNet, builder of Singapore's fibre broadband network, to a business trust owned by rival telco SingTel.

Also joining in the chorus is the Asia Pacific Carriers' Coalition, a body that includes telcos such as Britain's BT and Hong Kong-based PacNet.

Their unequivocal opposition was spelt out in a 38-page report that they submitted to the Infocomm Development Authority (IDA) yesterday.

The IDA had wanted their feedback on whether the sale would result in substantially less competition or harm public interest.

In the opposing camp are telcos M1 and StarHub, as well as broadband service providers MyRepublic, ViewQwest, SuperInternet and Nucleus Connect.

With the coalition, they said in a joint statement yesterday that the sale fails to address delays in connecting customers and customer benefits.

It would have a significant negative impact as well on the success of the nationwide fibre network - dubbed the Next- Generation Broadband Network - said the report, which the IDA posted on its website.

It would also "further entrench SingTel's dominance", added the report.

Under the planned sale announced last month, OpenNet's owners - SingTel, SP Telecommunications, Singapore Press Holdings and Canada's Axia NetMedia - would sell it for $126 million to NetLink Trust.

But its day-to-day operations would be run by CityNet, the trustee-manager of NetLink Trust.

With one entity running the daily operations, OpenNet can carry out faster roll-outs and connections, CityNet had argued.

Now, OpenNet relies on SingTel as its key sub-contractor to roll out fibre links to homes and buildings.

It also has to liaise with NetLink Trust, which owns the ducts and manholes that optical fibre cables pass through to reach homes and buildings.

As a result, there have been long delays, which have worsened in recent months.

But the sale, said the opponents, still does not address the existing conflict of interest between SingTel and OpenNet.

In particular, SingTel competes with OpenNet to wire up commercial buildings, and then sell to the businesses broadband access to its own fibre-optic network.

The opponents also questioned CityNet's neutrality, saying it is "under no statutory or contractual obligation to act in the interest of the industry".

When contacted, the IDA said it will ensure OpenNet remains neutral and may impose more regulatory conditions.

Ms Jacqueline Ong, CityNet's acting chief executive, pointed out that the IDA will continue to regulate OpenNet's services and prices.

Meanwhile, SingTel said that given its status as a unit-holder of NetLink Trust, it does not have effective control over the trust or CityNet.

itham@sph.com.sg

Safeguards proposed in report

1 A task force, with industry players and led by the Infocomm Development Authority, to oversee the sale and integration efforts to ensure safeguards are in place.

2 Broadband service providers to be given guarantees of specified level of service by OpenNet.

These include higher penalties for delays. Now, a delay of 30 days or more at each business customer costs OpenNet at most $350.

3 SingTel should be made to stick to next April's deadline for reducing its majority stake in NetLink Trust, and not be allowed to extend it to April 2018.

4 CityNet must not be allowed to re-appoint SingTel as its key sub-contractor or give it significant contracts


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