Stuart Corner
Monday, 29 September 2008 07:02
Opinion and Analysis
Page 2 of 3
The government issued the first of two RFPs on 11 December 2007, which closed on 5 May 2008. That first RFP was for a 'Netco' which would be required only to build out a passive optical network to homes and businesses and would be required to sell 'dark fibre' access to an 'OpCo' which would install the active electronics on that network to enable it to deliver services to end users.
The RFP for OpCo was issued in March 2008 and the winner is expected to be announced early next year. OpCo will provide wholesale access to service providers who willing turn sell services to end users.
When he announced the NetCo RFP in December 2007, Singapore's minister for information, communications and the arts, Dr Lee Boon Yang, spelt out the regulatory regime under which it would operate. "It is...critical for the Next Gen NBN to provide effective open access to downstream operators. This will create a more vibrant and competitive broadband market. As a policy, we have therefore decided to adopt separation between the different levels of the Next Gen NBN to achieve effective open access. The RFP to construct the network will therefore provide for structural separation of the passive network operator from the downstream operators."
He added: "If necessary, the Government is also prepared to consider legislation to achieve such effective open access for downstream operators in the next generation broadband market The Next Gen NBN tender will require that the appointed NetCo be structurally separated from downstream operators and vice versa to be consistent with the policy objective of effective open access "
The winner of the NetCo RFP, OpenNet is a consortium owned 30 percent by Singapore Telecom and 30 percent by Axia Netmedia of Canada, 25 percent by Singapore Press Holdings and 15 percent by SP Telecommunications. It has commited to providing wholesale dark fibre services to OpCo at $S15 per month for residential premises and $S50 per month for business premises.
Axia Netmedia started out building a fibre access networks in Alberta and has since had success rolling out similar networks in other countries. In Australia it
put in a bid for the Howard Government's Broadband Connect contract that eventually went to the Optus- Elders consortium, Opel, before being cancelled by the incoming Rudd Government.
On a visit to Australia in March this year the head of Axia, Art Price
criticised the Government's NBN scheme by suggesting that a ubiquitous open access long haul network around Australia could be built for $2 billion and with it competition would be able to deliver affordable high speed access to much of Australia.
But in Singapore, the role of SingTel is of course key. OpenNet will make use of SingTel's passive infrastructure assets, such as ducts, manholes and exchanges to facilitate the deployment of its fibre network.
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