SINGAPORE -- Singapore Telecommunications Limited (SingTel) is pleased to announce today that OpenNet, which SingTel has a 30 per cent stake in, has been selected to become the Network Company or NetCo for Singapore’s Next Generation National Broadband Network (NGNBN).

The consortium promises to deliver a truly open, high-quality fibre-to-the-home (FTTH) network. In its proposal to the Infocomm Development Authority of Singapore (IDA), OpenNet will leverage SingTel’s existing high-quality network of underground ducts to deploy an ultra-fast broadband network at least two and a half years ahead of schedule of the government’s iN2015 vision. The consortium plans to attain 95 per cent FTTH network coverage by June 2012. It has appointed SingTel to roll out and maintain its high-quality fibre network to all residential and commercial premises in Singapore.

Mr Allen Lew, SingTel’s CEO Singapore, said: “We are pleased that OpenNet’s proposal, which exceeds the requirements of the iN2015 blueprint in areas like design and timeline, has been recognised and accepted by IDA. The compelling proposal is a result of the strengths of each consortium partner, such as SingTel’s extensive high-quality network of ducts, technical expertise and our considerable experience in deploying fibre in Singapore.”

To meet IDA’s effective open access requirements, SingTel has committed (subject to obtaining relevant approvals) to transfer certain passive infrastructure – relevant manholes, ducts and exchange buildings – to a separate wholly-owned entity (Asset Company or “AssetCo”) within two years, and to reduce its stake in the AssetCo within five years to a level that meets the regulator’s requirements.

Mr 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.”

Singapore Telecommunications Ltd. (SingTel) (OTC: SGTJY)