No. S 412
Telecommunications Act 1999
(Act 43 of 1999)
Code of Practice for Competition in the Provision of Telecommunication Services
In exercise of the powers conferred by section 26(1) of the Telecommunications Act 1999, the Info-communications Development Authority of Singapore hereby issues the following Code:
TABLE OF CONTENTS
1.
INTRODUCTION
1.1
Goals of This Code
1.2
Legal Authority to Promulgate this Code
1.3
Legal Effect of This Code
1.4
Application of This Code to Specific Categories of Licensees
1.5
Regulatory Principles
1.5.1
Reliance on Market Forces
1.5.2
Promotion of Competition
1.5.3
Proportionate Regulation
1.5.4
Technological Neutrality
1.5.5
Elimination or Modification of Unnecessary Provisions of this Code
1.5.5.1
Regulatory Review
1.5.5.2
Petitions for Elimination or Modification of Provisions of this Code
1.5.6
Open and Reasoned Decision Making
1.5.7
Avoidance of Unnecessary Delay
1.5.8
Non-discrimination
1.5.9
Opportunity for Review
1.6
Reservations of Authority
1.6.1
Right to Grant Exemptions
1.6.2
Right to Modify
1.6.3
Right to Waive or Suspend Code Provisions Where Necessary in the Public Interest
1.7
Rule of Construction
1.8
Effective Date of this Code
1.9
Short Title
2.
CLASSIFICATION OF FACILITIES-BASED LICENSEES
2.1
Introduction
2.1.1
Application
2.1.2
Over-view
2.2
Categories of Licensees
2.2.1
Dominant Licensees
2.2.2
Non-dominant Licensees
2.3
Designation of Dominant Licensees
2.4
Assets Transfers
2.5
Classification and Reclassification of Licensees
2.5.1
Procedures
2.5.1.1
Grant or Renewal of the Licence
2.5.1.2
Reclassification by IDA of a Licensee
2.5.1.3
Petitions for Reclassification
2.5.2
Evidence to be Considered
2.5.2.1
Ability of Competitors to Replicate Facilities
2.5.2.2
Ability of Licensee to Restrict Output and Raise Prices
2.6
Exemption from Application of Special Dominant Licensee Requirements
2.6.1
Request for Exemption
2.6.2
IDA Review
3.
DUTY OF LICENSEES TO THEIR END USERS
3.1
Introduction
3.1.1
Application
3.1.2
Over-view
3.2
Duties of All Licensees
3.2.1
Duty to Comply with Minimum Quality of Service Requirements
3.2.2
Duty to Provide Periodic, Accurate and Timely Bills
3.2.2.1
Advanced Disclosure of All Prices, Terms and Conditions
3.2.2.2
Billing Timeliness
3.2.2.3
Billing Clarity
3.2.2.4
Compliance with Tariff or Contract Rates
3.2.2.5
No Charges for Unsolicited Telecommunication Services or Equipment
3.2.2.6
No Charges by Unauthorised Providers
3.2.3
Duty to Provide Procedures to Contest Charges
3.2.3.1
Right to Withhold Payment
3.2.3.2
Initiation of Challenge
3.2.3.3
Licensee Review
3.2.3.4
Conciliation
3.2.3.5
Private Dispute Resolution
3.2.4
Suspension or Termination of Service by Licensee
3.2.5
Prohibition on Excessive Early Termination Liabilities
3.2.6
Duty to Protect End User Service Information
3.2.6.1
Definition
3.2.6.2
Restriction on Use
3.2.6.3
End User Authorisation
3.2.7
Reporting Requirement
3.3
Special Duties of Dominant Licensees
3.3.1
Duty to Provide Service on Demand
3.3.2
Duty to Provide Service at Just and Reasonable Prices, Terms and Conditions
3.3.3
Duty to Provide Service on a Non-discriminatory Basis
3.3.4
Duty to File and Provide Service Pursuant to Tariffs
3.3.4.1
Information to be Included
3.3.4.2
Review Criteria
3.3.4.3
Review Procedures
3.3.4.4
Status of Effective Tariffs
3.3.5
Duty to Provide Unbundled Telecommunication Services
4.
REQUIRED COOPERATION AMONGST LICENSEES TO PROMOTE COMPETITION
4.1
Introduction
4.1.1
Application
4.1.2
Over-view
4.2
Minimum Interconnection Duties
4.2.1
Duty to Interconnect With Other Licensees
4.2.2
Duty to Establish Compensation Agreements for the Origination, Transit and Termination of Telecommunication Traffic
4.2.3
Duty to Provide Non-discriminatory Interconnection Quality
4.2.4
Duty to Prevent Technical Harm to the Network
4.2.5
Duty to Provide Billing Information
4.2.6
Duty to Preserve Confidential Information Provided by Other Licensees
4.2.7
Duty to Comply with Singapore Law
4.2.8
Duty to Submit to IDA All Interconnection Agreements
4.3
Enforcement of Interconnection Agreements
4.3.1
Duty to Co-operate
4.3.2
IDA Conciliation
4.3.3
Private Enforcement
4.4
Modification, Suspension or Termination of Interconnection Agreements by Mutual Agreement
4.4.1
Notification to IDA
4.4.2
Review by IDA
4.4.3
IDA Authorisation
4.4.4
Approval by IDA
4.5
Status of Agreements Entered Into Prior to the Effective Date of this Code
4.6
Other Duties
4.6.1
Duty to Disclose Interfaces
4.6.2
Duty to Comply With Mandatory Technical Standards
4.6.3
Duty to Facilitate Change of Service Providers
4.6.4
Duty to Assist in the Provision of Integrated Printed Directories and Directory Enquiry Service
4.6.5
Duty to Reject Discriminatory Preferences Regarding Support Facilities
4.6.6
Duty to Reject Discriminatory Preferences Regarding Space and Support at End User Premises
5.
INTERCONNECTION WITH DOMINANT LICENSEES
5.1
Introduction
5.1.1
Application
5.1.2
Over-view
5.2
Options for Entering into an Interconnection Agreement
5.3
Option One: Interconnection Pursuant to an Approved Reference Interconnection Offer
5.3.1
Duty to Develop a Reference Interconnection Offer
5.3.2
Contents of the Offer
5.3.3
Model Confidentiality Agreement
5.3.4
IDA Review
5.3.5
Minimum Requirements of the RIO
5.3.5.1
Absolute Prohibition on Discrimination in Favour of Affiliates
5.3.5.2
Physical Interconnection at Any Technically Feasible Location
5.3.5.3
Provision of Unbundled Network Elements and Unbundled Network Services
5.3.5.4
Provision of Essential Support Facilities
5.3.5.5
Co-location
5.3.5.5.1
Physical Co-location, Where Feasible
5.3.5.5.2
Space Limitations
5.3.5.5.3
Reservation of Capacity
5.3.5.5.4
Equipment That May be Co-located
5.3.5.5.5
Security Provisions
5.3.5.6
Pricing
5.3.5.7
Provision of Wholesale Services
5.3.5.8
Modification and Duration of the Agreement
5.4
Option Two: Interconnection Pursuant to an Existing Interconnection Agreement
5.5
Option Three: Interconnection Pursuant to an Individualised Interconnection Agreement
5.5.1
Duty to Negotiate in Good Faith With Any Licensee Requesting Interconnection
5.5.2
Negotiation Process
5.5.2.1
Request for Negotiation
5.5.2.2
Notification to IDA
5.5.2.3
Initiation of Negotiations
5.5.2.4
Confidentiality Agreement
5.5.3
Interim Interconnection Pursuant to RIO
5.5.4
IDA Conciliation
5.5.5
Voluntary Agreements
5.5.5.1
Terms of Agreement
5.5.5.2
IDA Review
5.5.6
Agreements Arrived at Via the IDA Dispute Resolution Procedure
5.5.6.1
Petition for IDA Dispute Resolution
5.5.6.2
Response to the Request
5.5.6.3
IDA Request for Additional Information
5.5.6.4
Binding Effect of Submissions
5.5.6.5
Effect of Failure to Respond
5.5.6.6
Resolution by IDA
5.5.6.6.1
Scope of the Dispute Resolution Procedure
5.5.6.6.2
Timing of the Dispute Resolution Procedure
5.5.6.6.3
Standards to be Applied
5.5.6.7
Implementation of Dispute Resolution Decision by Licensees
5.6
Publication of Interconnection Agreements
5.7
Enforcement of Agreements
5.8
Other Duties of Dominant Licensees
5.8.1
Duty to Allow Resale of End User Telecommunication Services
5.8.2
Duty to Allow Sales Agency
5.8.3
Duty to Tariff and Make Wholesale Telecommunication Services Generally Available
6.
INFRASTRUCTURE SHARING
6.1
Introduction
6.1.1
Application
6.1.2
Over-view
6.2
Definition of Sharing
6.3
Procedures for Requesting Sharing
6.3.1
Request to Licensee Controlling the Infrastructure
6.3.2
Request to IDA
6.3.3
Response by Licensee
6.3.4
Timing of IDA Decision
6.4
Standards by Which IDA Will Determine Whether to Require Sharing
6.4.1
Critical Support Infrastructure
6.4.2
Public Interest
6.5
Designation of Infrastructure That Must be Shared
6.6
Implementation of IDA Direction
6.6.1
Voluntary Negotiations
6.6.2
IDA Dispute Resolution Procedures
6.6.3
Compensation for Sharing
7.
UNFAIR METHODS OF COMPETITION
7.1
Introduction
7.1.1
Application
7.1.2
Over-view
7.2
Abuse of Dominant Position in the Singapore Market
7.2.1
Pricing Abuses
7.2.1.1
Predatory Prices
7.2.1.2
Price Squeezes
7.2.1.3
Cross-subsidisation
7.2.2
Other Abuses
7.2.2.1
Discrimination
7.2.2.2
Predatory Network Alteration
7.3
Abuse of Market Dominance in a Foreign Market
7.4
Unfair Methods of Competition
7.4.1
False or Misleading Claims
7.4.2
Degradation of Service Available or Quality
7.4.3
Provision of False or Misleading Information to Competitors
7.4.4
Interference with End User or Supplier Relationships
8.
AGREEMENTS INVOLVING LICENSEES THAT UNREASONABLY RESTRICT COMPETITION
8.1
Introduction
8.1.1
Application
8.1.2
Over-view
8.2
Determining the Existence of an Agreement
8.3
Prohibited Agreements Between Licensees Providing Competing Telecommunication Services and Equipment
8.3.1
Price Fixing/Output Restrictions
8.3.2
Bid Rigging
8.3.3
Geographic Market and Customer Divisions
8.3.4
Group Boycotts
8.3.5
Agreements Necessary for Legitimate Collaborative Ventures
8.4
Agreements Between Licensees Providing Competing Telecommunications Services or Equipment That Will be Assessed Based on Competitive Effects
8.4.1
Business Purpose of the Agreement
8.4.2
Likelihood of Competitive Harm
8.4.3
Efficiencies
8.5
Agreements Between Licensees and Entities at Different Levels in the Supply Chain
8.5.1
Vertical Price Fixing
8.5.2
Vertical Market Allocation
8.5.3
Exclusive Dealing
9.
CONSOLIDATIONS BY FACILITIES-BASED LICENSEES THAT ARE LIKELY TO UNREASONABLY RESTRICT COMPETITION
9.1
Introduction
9.1.1
Application
9.1.2
Over-view
9.2
Duty of All Licensees to Obtain IDA Approval
9.2.1
Assignments of a Licence
9.2.2
Change in Ownership, Shareholding or Management of a Licensee
9.3
Standard for Approval
9.4
Procedures
9.5
Action by IDA
9.5.1
Grant of the Application
9.5.2
Denial of the Application
9.5.3
Grant of the Application, Subject to Conditions
9.5.3.1
Non-discrimination Requirements
9.5.3.2
Accounting Separation
9.5.3.3
Structural Separation
9.5.3.4
Partial Divestiture
9.5.3.5
Other Pro-competitive Conditions
10.
ENFORCEMENT OF THIS CODE
10.1
Introduction
10.1.1
Applications
10.1.2
Over-view
10.2
Specific Regulatory Principles
10.2.1
Timeliness
10.2.2
Open and Reasoned Decision Making
10.2.3
Proportionality
10.3
IDA Enforcement Actions
10.3.1
Procedures
10.3.1.1
Notification of Licensee
10.3.1.2
Opportunity to Respond
10.3.1.3
Request for Further Information
10.3.1.4
Interim Direction to Cease and Desist
10.3.2
Enforcement Actions
10.3.2.1
Warnings
10.3.2.2
Orders to Cease and Desist
10.3.2.3
Directions by IDA
10.3.2.4
Financial Penalties
10.3.2.4.1
Aggravating Factors
10.3.2.4.2
Mitigating Factors
10.3.2.5
Suspension or Cancellation of the Licence
10.4
Private Requests for Enforcement
10.4.1
Procedures
10.4.2
Enforcement Action
APPENDIX ONE:
PRINCIPLES GOVERNING THE PRICING OF INTERCONNECTION RELATED SERVICES
APPENDIX TWO:
PRICE, TERMS AND CONDITIONS AT WHICH A DOMINANT LICENSEE MUST OFFER TO PROVIDE INTERCONNECTION RELATED SERVICES
1.
Introduction
Goals of This Code
1.1.This Code is intended to:
(a)promote the efficiency and international competitiveness of the information and communications industry in Singapore;
(b)ensure that telecommunication services are reasonably accessible to all people in Singapore, and are supplied as efficiently and economically as practicable and at performance standards that reasonably meet the social, industrial and commercial needs of Singapore;
(c)promote and maintain fair and efficient market conduct and effective competition between persons engaged in commercial activities connected with telecommunication technology in Singapore;
(d)promote the effective participation of all sectors of the Singapore information and communications industry in markets (whether in Singapore or elsewhere);
(e)encourage, facilitate and promote industry self-regulation in the information and communications industry in Singapore; and
(f)encourage, facilitate and promote investment in and the establishment, development and expansion of the information and communications industry in Singapore.
Legal Authority to Promulgate this Code
1.2.The Info-communications Development Authority of Singapore (“IDA”), in the exercise of its functions under section 6 of the Info-communications Development Authority of Singapore Act 1999 (Act 41 of 1999) (“IDA Act”), issues this Code pursuant to its authority under section 26(1) of the Telecommunications Act 1999 (Act 43 of 1999) (“Telecommunications Act”).
Legal Effect of This Code
1.3.Every entity to which IDA grants a licence under section 5 of the Telecommunications Act (“Licensee”) is required, under section 26(4) of the Telecommunications Act, to comply with the applicable provisions contained in this Code.1 The obligations contained in this Code are in addition to those contained in the Telecommunications Act, other statutes, regulations, directions, licences or codes of practice. To the extent that any provision of this Code is inconsistent with the terms of the Telecommunications Act, other statutes, regulations, directions or the terms of any licence, the provisions of those statutes, regulations, directions or licences shall prevail. To the extent that this Code is inconsistent with the provision of any prior codes of practice issued by IDA or its predecessor, the Telecommunication Authority of Singapore (“TAS”), the terms of this Code will prevail. If any provision of this Code is held to be unlawful, all other provisions will remain in full force and effect. This Code repeals and fully supercedes the Code of Practice (Interconnection, Access and Infrastructure Sharing) issued by TAS.
1  Section 75 of the Telecommunications Act provides that any licence granted by the Telecommunication Authority of Singapore under the repealed Telecommunication Authority of Singapore Act shall be deemed to have been granted by IDA under section 5 of the Telecommunications Act.
Application of This Code to Specific Categories of Licensees
1.4.The following chart indicates the applicability of various provisions of this Code to different categories of Licensees:
CATEGORY OF LICENSEE
 
DOMINANT/NON-DOMINANT CLASSI-FICATION (SECTION 2)
DUTY TO END USERS (SECTION 3)
INTER-CONNECTION AND SHARING (SECTIONS 4-6)
 
COMPETITION (SECTIONS 7-9)
ENFORCEMENT (SECTION 10)
Dominant Facilities-based Licensees
 
All
Provisions
All
Provisions
All
Provisions
 
All
Provisions
All
Provisions
Non-Dominant Facilities-based Licensees
 
All
Provisions
Subsections 3.1-3.2.7 Only
All Provisions (except Subsections 5.3.1-5.3.5.8)
 
All
Provisions
All
Provisions
Services-based Licensees that use Switching or Routing Equipment to Provide Telecommunication Services to the Public
 
Not
Applicable
Subsections 3.1-3.2.7 Only
Section 4 (except subsections 4.2.3, 4.2.4 and 4.6.5) and section 5 (except subsections 5.3.1-5.3.5.8) Only
 
Subsections 7.1 -7.1.2, 7.3-7.4.4 and section 8 Only
All
Provisions
Services-based Licensees that do not use Switching or Routing Equipment to Provide Telecommunication Services to the Public
 
Not
Applicable
Subsections 3.1-3.2.7 Only
Not
Applicable
 
Subsections 7.1-7.1.2, 7.3-7.4.4 and section 8 Only
All
Provisions
Self-provisioning Licensees
 
Not
Applicable
Not
Applicable
Not
Applicable
 
Not
Applicable
Not
Applicable
Telecommunication Equipment Dealer Licensees
 
Not
Applicable
Subsections 3.1-3.2.7 Only
Not
Applicable
 
Subsections 7.1-7.1.2, 7.3-7.4.4 and section 8 Only
All
Provisions
Regulatory Principles
1.5.The following Regulatory Principles provide the foundation for this Code, and will guide IDA’s implementation of its provisions:
Reliance on Market Forces
1.5.1.Market forces are generally far more effective than regulation in promoting consumer welfare. Competitive markets are most likely to provide consumers with a wide choice of services at reasonable prices. Therefore, to the extent that markets or market segments are competitive, IDA will place primary reliance on private negotiations and industry self-regulation, subject to minimum requirements designed to protect consumers and prevent anti-competitive conduct. Consistent with this principle, IDA will promote the establishment of a telecommunication industry body that will formulate technical and operational processes and procedures designed to promote effective competition in the provision of telecommunication services and equipment.
Promotion of Competition
1.5.2.Because of the effectiveness of market forces in promoting consumer welfare, IDA will take resolute measures to promote and maintain effective competition. This will include measures to foster competition in those markets that, in the past, were protected from competition by special or exclusive government-granted rights.
Proportionate Regulation
1.5.3.To the extent that a given market is not yet competitive, significant ex ante regulatory intervention is likely to remain necessary. When this is the case, IDA will seek to impose regulatory requirements that are carefully crafted to achieve IDA’s stated goals. Such requirements will be no broader than necessary to achieve IDA’s stated goals.
Technological Neutrality
1.5.4.IDA’s regulatory requirements will reflect the phenomenon of convergence, which is eroding historic differences among platforms such as wireline, cable, wireless, and satellite. Regulatory requirements will be based on sound economic principles and, to the extent feasible, will be technology-neutral. Because the phenomenon of convergence is in its early stages, with different platforms subject to differing degrees of competition, the objective application of these principles may result initially in the imposition of different regulatory obligations on Licencees that use different platforms.
Elimination or Modification of Unnecessary Provisions of this Code
1.5.5.As competition develops, regulation becomes less necessary and, in many cases, can be counter-productive. Therefore, IDA will strive to eliminate or modify the provisions of this Code to reflect the development of competition. The following 2 procedures will promote the implementation of this principle:
Regulatory Review
1.5.5.1.At least once every 3 years, IDA will review this Code. As part of the triennial review process, IDA will provide an opportunity for public comment. IDA will eliminate or modify provisions that it determines, based on experience and the growth and development of competition, are no longer necessary.
Petitions for Elimination or Modification of Provisions of this Code
1.5.5.2.Licensees may petition IDA to eliminate or modify any provision of this Code. The Licensee shall specify the provisions of this Code that it seeks to have eliminated or modified and shall provide a clear statement of the reasons why the Licensee believes that such action is justified. The Licensee may propose alternative approaches that, if adopted, would achieve IDA’s stated goals in a less burdensome manner.
Open and Reasoned Decision Making
1.5.6.IDA will apply the provisions of this Code in a transparent manner. IDA will provide an opportunity for public comment in connection with material issues. Except to the extent a Licensee indicates and IDA agrees that information submitted to IDA is confidential, proprietary, commercially sensitive or raises law enforcement or national security concerns, comments will be made available to the public. In arriving at its decisions, IDA will give full consideration to the comments received. IDA generally will make available to the public its directions adopted pursuant to this Code, and will clearly explain the basis for its action. Where feasible, IDA will make available its decisions and directions on its website (www.ida.gov.sg).
Avoidance of Unnecessary Delay
1.5.7.Recognising the need for Licensees to respond rapidly to changing market forces, IDA will strive to make all decisions and issue all directions pursuant to this Code within the timeframes specified herein and, in any case, as quickly as reasonably possible.
Non-discrimination
1.5.8.IDA’s decisions and directions will be non-discriminatory. IDA will treat similarly situated Licensees on an equivalent basis. Where appropriate, IDA’s decisions and directions will reflect relevant differences between Licensees or categories of Licensees.
Opportunity for Review
1.5.9.Any Licensee that is adversely affected by a decision rendered or direction issued by IDA pursuant to this Code will have the opportunity to ask IDA to reconsider its decision or direction. IDA will consider those objections or representations and, where appropriate, will modify its decision or direction. Notwithstanding the above, any party that is aggrieved by any decision or direction of IDA may, within 14 days of the date on which the decision or direction is issued, appeal to the Minister for Communications and Information Technology (“Minister”) under sections 27 (4) and 69 of the Telecommunications Act. Unless IDA orders otherwise, the Licensee shall comply with its decision or direction until such time, if any, as the Minister reverses or modifies the decision or direction.
Reservations of Authority
1.6.IDA reserves, among other things, the following rights:
Right to Grant Exemptions
1.6.1.Where good cause is shown, IDA may grant exemptions from specific provisions of this Code. Such exemptions may be applied to individual Licensees or to specified categories of Licensees. An exemption may be on a one-time basis, temporary, permanent, for a fixed period or effective until the occurrence of a specific event. Where appropriate, IDA may grant exemptions subject to compliance with specified conditions.
Right to Modify
1.6.2.IDA reserves the right to modify this Code on its own initiative at any time.
Right to Waive or Suspend Code Provisions Where Necessary in the Public Interest
1.6.3.IDA reserves the right to waive or suspend any provision of this Code in any situation in which such action is necessary in the public interest.
Rule of Construction
1.7.This Code is written in “plain English.” IDA intends for the provisions of this Code to be interpreted in a manner that is consistent with the ordinary meaning of the terms used. In case of any ambiguity, IDA intends for this Code to be interpreted in the manner most consistent with the Regulatory Principles specified in subsections 1.5-1.5.9 of this Code.
Effective Date of this Code
1.8.This Code will come into effect 14 days after the date on which it is published in the Gazette.
Short Title
1.9.This Code may be referred to as the “Telecom Competition Code.”
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