The new safeguards will ensure a vibrant and competitive telecommunications sector that ultimately benefits consumers.

The Government has introduced further safeguards to ensure a vibrant and competitive telecommunications sector, with amendments that were passed on 21 November 2011 to the Telecommunications Act.

One of the key provisions in the amended Act empowers the government to issue a Separation Order to a licensee to transfer its telecommunications assets or business to a separate entity. This will ensure that the vertically-integrated telecommunication licensees do not make use of their dominant position to restrict competitors’ access to key infrastructure and services.

In tabling the Bill in Parliament, Dr Yaacob Ibrahim, Minister for Information, Communications and the Arts, noted that vertically-integrated telecommunications operators that control the network infrastructure may have little commercial incentive to provide open access to their competitors in the wholesale and retail services markets. They may even discriminate against their competitors to gain an unfair advantage.

He noted that laws to ensure structural separation are increasingly being considered and used in other jurisdictions such as the European Union and Australia to ensure equal and open access to network elements and services. However, he assured businesses that the power of the Separation Order will not be exercised “frivolously”. The Act spells out clear conditions and limitations under which it can be considered, he said.

In a separate provision, the Government has also been empowered to direct the takeover of control of a telecommunication licensee’s network and business by another party to ensure operational continuity of key telecommunication networks and services, in the event that the licensee becomes insolvent or ceases operations. Previously, the Government could only take action in cases of public emergency, public interest or public security.

The maximum penalty for licensees who breach telecommunication regulations has also been raised.  The maximum fine is revised to 10 per cent of their business turnover under the licence or $1 million, whichever is higher, and should the financial penalty not be paid within the specified period, IDA can cancel or suspend either part of or the whole licence, or reduce the period that the licence is to be in force.

To facilitate the rollout of infrastructure, the amended Telecommunications Act also empowers IDA to issue written orders to building or land owners or developers who contravene the Code of Practice for Infocomm Facilities in Building (COPIF). COPIF requires these parties to provide space and facilities for the rollout of telecommunication services by operators. The changes provide for greater flexibility in dealing with these various stakeholders instead of having non-compliance with COPIF deemed as an immediate offence. The amended Act also seeks to update the consolidation framework so as to account for new concepts relating to mergers and acquisitions, and new business models

To provide greater clarity over the rights and privileges of Public Telecommunication Licensees (PTLs), the amendments also incorporated modifications to clarify  the privileges of PTLs to enter land and buildings to deploy telecommunication systems.