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Viewing cable 07SINGAPORE1134, TELECOM REGULATOR ISSUES MIXED DECISION ON LOCAL

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Reference ID Created Released Classification Origin
07SINGAPORE1134 2007-06-13 03:24 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Singapore
VZCZCXYZ0009
RR RUEHWEB

DE RUEHGP #1134 1640324
ZNR UUUUU ZZH
R 130324Z JUN 07
FM AMEMBASSY SINGAPORE
TO RUEHC/SECSTATE WASHDC 3356
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHBY/AMEMBASSY CANBERRA 1915
UNCLAS SINGAPORE 001134 
 
SIPDIS 
 
STATE PASS TO AMBASSADOR GROSS 
USTR FOR AUSTR WEISEL AND JMCHALE 
COMMERCE FOR JBAKER 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ECPS ECON ETRD EINV SN
SUBJECT: TELECOM REGULATOR ISSUES MIXED DECISION ON LOCAL 
EXCHANGE CLOSURES 
 
REFS:  A) SINGAPORE 222 
 
B) SINGAPORE 996 
 
1.  (U) The Infocomm Development Authority (IDA) has directed 
Singapore's dominant telecom carrier, SingTel, to give 
competitors up to 18 months notice concerning any local exchange 
it intends to close.  IDA's June 7 decision extends the previous 
requirement from six months and comes nearly one year after 
SingTel announced vague plans to gradually consolidate its 27 
existing exchanges to 12 (ref A).  Under its Reference 
Interconnection Offer (RIO), SingTel is required to offer other 
telecom licensees co-location spaces at its exchanges for access 
to tower sites, points of interconnection, and submarine cable 
landing stations. 
 
2.  (SBU) Although U.S. telecom companies welcomed the longer 
notification period, they were disappointed that IDA's decision 
did not also require SingTel to compensate competitors for costs 
associated with exchange closures.  IDA has argued that 18 
months should allow adequate time for competitors to amortize 
construction and other costs associated with build-out to 
affected exchanges.  However, industry has told us that the 
average timeframe is in fact considerably longer and that their 
network rollout and investment plans therefore will continue to 
remain in limbo. 
 
3.  (SBU) IDA refused to consider industry recommendations (made 
earlier this year during a public comment period on regulating 
exchange closures) to allow competitors tandem access -- i.e., 
economically efficient points of connection -- to SingTel's 
network.  In particular, the Asia Pacific Carriers' Coalition 
(APCC), which includes U.S. carriers, suggested that tandem 
access would eliminate much of the guess-work and unforeseen 
costs associated with SingTel's proposed consolidation.  IDA 
argued that the discussion of tandem exchange access was 
"clearly outside the scope of this current regulatory 
proceeding." 
 
4.  (U)  The "IDA's Decision and Explanatory Memo for 
Decommissioning of Co-Location Sites Under SingTel's RIO" is 
available at www.ida.gov.sg under "Policies and Regulation." 
 
Comment 
------- 
 
5.  (SBU) IDA's unsatisfactory decision represents the latest in 
a series of actions that fall short of Singapore's obligations 
under the U.S.-Singapore Free Trade Agreement (FTA) to ensure 
reasonable access to leased lines for competitive carriers in 
the domestic market.  USG senior officials and post have 
repeatedly raised these concerns, most recently during the May 
11 annual FTA review in Singapore (ref B).  We will continue to 
press the GOS to fulfill its commitments. 
 
HERBOLD