OpenNet fined $240,000 by IDA for breaching quality standards

SINGAPORE - OpenNet has been fined S$240,000 by the Infocomm Development Authority of Singapore (IDA) for breaching its non-residential Quality of Service (QoS) standards for timely service provisioning from April to September 2013.

In arriving at the quantum of the financial penalty, IDA took into consideration factors such as the large margin by which OpenNet had failed the QoS standards, and the need for IDA to take strong deterrent action against OpenNet for its poor QoS performance.

OpenNet has indicated that several initiatives to reduce the delays are in place, as part of its rectification measures.

Examples include pre-installing fibre cables at selected non-residential buildings and exploring the possibility of sub-contracting the fibre service provisioning work to their Requesting Licensees.

IDA will next assess OpenNet's QoS performance for non-residential end-user connection services starting in April 2014.

OpenNet has also committed to improving its performance for residential end-user connection services, which include providing more appointment slots on weekdays, weekends and during promotions such as IT shows, and improving processes to make end-users' transition from one fibre service provider to another more seamless.

OpenNet will make corresponding changes to its Interconnection Offer ("ICO") to reflect the additional measures to improve the service provisioning standards to both the residential and non-residential sectors. IDA will seek comments from the industry on the proposed ICO changes.

OpenNet, which was bought over by NetLink Trust in 2013, is responsible for building, managing and operating a high quality and high-speed fibre network for Singapore's Next Generation Nationwide Broadband Network initiative.

This is the second fine this week IDA is imposing on a service provider. On Wednesday, SingTel was fined $6 million - the largest penalty ever for a telco - over a blaze at its Bukit Panjang Internet exchange last year that took down phone lines, banking, payment and Internet services across Singapore.

OpenNet was fined $750,000 on Nov 20, 2013 by IDA for also failing to meet QoS standards.

grongloh@sph.com.sg