| February/March
2005 Updates Telecommunication
Competition Code in Singapore revised By
Goh Seow Hiong in Singapore, February 2005. The
Infocomm Development Authority of Singapore (IDA) has released the amended Telecom
Competition Code in February 2005. The changes to the Code are made as a result
of a review conducted when the Code was in force for three years, and takes into
consideration the views and feedback provided by the public and the industry to
the regulator on the state of competition in the Singapore market. The
basic principles towards telecommunication competition remain unchanged, and they
are: - Reliance on market forces and proportionate regulation; -
Regulation for effective and sustainable competition; - Minimum rules for
consumer protection; - Technology neutrality; - Efficient, transparent
and reasoned decision-making. In the area of transparency,
IDA will undertake public consultations in the review of regulatory frameworks,
and will issue preliminary decisions on material policy or regulatory issues for
comment by the public or interested parties. Greater clarity of procedures and
standards will also be achieved through the publication of guidelines that stipulate
the IDA processes. IDA considered whether the current
approach towards dominance should be revised. In this regard, the definition of
dominance has been changed to one based on economic consequences, compared to
the previous definition based on the control over bottleneck facilities and ability
to restrict output or raise prices above competitive levels. The new definition
considers a player as dominant if it has operational control over facilities that
are costly or difficult to replicate, or if it can exercise significant market
power in providing telecom services in Singapore. Dominant
licensees are now required to publish their prices on their websites, and this
includes all prices that have been approved by the regulator, including discount
structures, service availability, eligibility and termination clauses. IDA will
also identify circumstances where dominant licensees have to offer services at
wholesale prices, and consult the public before mandating such prices. In segments
where there is effective competition, wholesale services provided by licensees
need to be provided at just, reasonable and non-discriminatory prices.
IDA has also issued guidelines on dispute resolution and consolidation
(i.e. mergers and acquisitions). These guidelines set out in detail the framework
and procedures that IDA will undertake in these circumstances, including how licensees
may approach IDA to reconsider regulatory decisions that have been made.
The full text of the revised code and guidelines that come into
effect on 4 March 2005 maybe downloaded at
here. |