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Viewing cable 06SINGAPORE1687, TELECOM - MINISTER DENIES SINGTEL'S APPEAL ON LOCAL

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Reference ID Created Released Classification Origin
06SINGAPORE1687 2006-05-25 07:11 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Singapore
VZCZCXYZ0001
RR RUEHWEB

DE RUEHGP #1687 1450711
ZNR UUUUU ZZH
R 250711Z MAY 06
FM AMEMBASSY SINGAPORE
TO RUEHC/SECSTATE WASHDC 0024
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS SINGAPORE 001687 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE PASS USTR FOR AUSTR BWEISEL, JJENSEN, AND JMCHALE 
COMMERCE FOR JBAKER 
 
E.O. 12958: N/A 
TAGS: ECPS EIND EINV ETRD SN
SUBJECT: TELECOM - MINISTER DENIES SINGTEL'S APPEAL ON LOCAL 
LEASE CIRCUITS 
 
REFS: A) SINGAPORE 1119 B) SINGAPORE 1205 C) 2005 SINGAPORE 3593 
 
1.  (U) Minister for Information, Communications and the Arts 
Lee Boon Yang on May 23 announced his decision to uphold the 
telecom regulator's requirement that dominant carrier SingTel 
provide competitors access to its local leased ("last mile") 
circuits (LLCs) at cost-based rates using an open-standard 
interface.  The decision came in response to an appeal that 
SingTel made to Minister Lee shortly after the 
Infocommunications Development Authority (IDA) issued its 
October 19, 2005 decision directing SingTel to offer multiplexed 
"tail" LLCs using one of two technical interface options.  The 
Minister's decision may be viewed at: 
 
 
 
2.  (SBU) Although the Minister's decision marks a partial 
victory for U.S. telecom operators, industry remains skeptical 
about its ability to take full advantage of these provisions. 
Of particular concern is SingTel's required 30-day lead time for 
purchasing "tie-cables," an important component for proper LLC 
interconnection to local exchanges.  SingTel proposed this and 
other new implementing regulations in its amended Reference 
Interconnection Offer (RIO) that it submitted to IDA late last 
year in response to the October decision.  In combination with 
the requirement to pre-order tie-cables, the absence of high- 
speed multiplexing options in SingTel's RIO creates significant 
procurement difficulties for other carriers (ref C). 
 
3.  (SBU) Limited to only low-speed options, industry sources 
tell us that a telecom operator wanting to support a customer 
base of 1,000 end-users, for example, would need to pre-order 
between 250 and 1,000 tie-cables for a particular point of 
interconnection; this same customer base could be supported with 
only a handful of tie-cables if high-speed options were 
available.  (Note: SingTel itself reportedly uses higher-speed 
options, but does not make these available to competitors.  End 
note.) 
 
4.  (SBU) At least one U.S. carrier recently filed a 
reconsideration request with IDA asking that it provide a 
solution to the tie-cable/low speed multiplexing issue.  This 
same carrier expects that, if IDA issues a favorable ruling, 
SingTel will appeal the decision. (Note: IDA first mandated 
wholesale pricing for LLCs in December 2003; SingTel has 
repeatedly requested stays or appealed LLC-related decisions in 
order to delay fulfilling its obligations.  In addition to 
requesting stays of decisions from IDA, SingTel can, under 
current regulation, make "private" appeals to the Minister, 
i.e., ones not made available to other interested parties.  End 
Note.) 
 
Comment 
------- 
 
5.  (SBU) In our meetings with Singapore officials, USTR and 
Post have repeatedly urged the GOS to fulfill its telecom 
commitments under our bilateral Free Trade Agreement and to 
implement a more transparent appeals and rule-making process. 
While we are encouraged by the Minister's most recent decision, 
we will continue to underscore the need for Singapore to further 
liberalize its telecom sector.  As we have noted in our 
discussions with the GOS, a good place to start would be for 
Singapore to allow higher-speed access and interconnection at 
tandem exchanges comparable to what is offered SingTel and other 
carriers operating in the United States under the Special Access 
program. 
 
HERBOLD