Broadband the Singapore way. What lessons for Australia?

Stuart Corner
Monday, 29 September 2008 06:02

Opinion and Analysis

To meet the open access requirement of the RFP, SingTel has committed, subject to obtaining relevant approvals, to transfer this infrastructure to a separate wholly-owned entity, 'AssetCo' within two years, and to reduce its stake in the AssetCo within five years to a level that meets the regulator's requirements.

The company has recognised that, under the regulatory regime proposed by the government these assets will confer no competitive advantage and thus present an opportunity. SingTel CEO Allen Lew said: "In an open access environment envisaged under the iN2015 plan passive network assets like ducts and manholes will no longer be a telco's competitive advantage as every service provider has equal access to the infrastructure.

"Therefore, SingTel will view the AssetCo as an opportunity to unlock value. The capital released will be redeployed to other businesses and for capital management initiatives. SingTel's focus on its business will also shift from network to customer-centric services to drive its customer and revenue growth."

It's a very different from to the howls of protest emanating from Telstra which is trying to present any similar suggestions in the Australian context as being attempts to break up the company completely.

But perhaps the biggest difference between Singapore and Australia is that Singapore is essentially a one party state. For all its ills this does enable the Government to develop a grand vision like the iN2015 Masterplan and see it through to fruition without the distractions of having to worry about getting re-elected every three years and thus without having to pander to every faction, like the rural community, whose votes might be key to that outcome.

And you don't get opposition parties with limited resources developing counter proposals which then get elevated to election promises that have to be fulfilled.