SINGAPORE -- The Infocomm Development Authority of Singapore (IDA) has imposed a total financial penalty of S$750,000 on OpenNet for breaching its Universal Service Obligation from January to June 2013 as well as for breaching its Quality of Service standards.
Universal Service Obligation
The Universal Service Obligation (USO) is a licence condition imposed on Public Telecommunication Licensees. The obligation requires these telecom licensees to provide specific telecom services to any end user who requests for them. OpenNet's USO, which came into effect on 1 January 2013, requires OpenNet to provide optical fibre services to any location in mainland Singapore or connected Singapore islands at the request of telecom or broadcast licensees. The USO is a fundamental licence obligation; non-compliance would affect downstream providers such as the Operating Companies (OpCos) and Retail Service Providers (RSPs) who rely on OpenNet's Nationwide Broadband Network (NBN) to deliver a plethora of services to consumers and businesses.
IDA has determined that OpenNet was not able to provide services to certain physical addresses upon the request of its customers between 1 January 2013 and 30 June 2013. Approximately 120,000 residential premises and about 760 non-residential buildings were potentially affected by OpenNet's failure to comply with its USO during this period, as they could not have ordered high-speed fibre broadband if they had wanted to.
IDA has decided to impose a financial penalty of S$550,000 on OpenNet for its failure to comply with its USO. In deciding on the quantum, IDA took into consideration factors such as the fact that OpenNet's failure to meet its USO for six months was a serious breach, which adversely impacted the industry that relies on OpenNet's NBN to deliver its services; as well as OpenNet's progressive rollout to make services available to the affected buildings according to its proposed corrective schedule.
Since 1 July 2013, OpenNet has been accepting orders for fibre services to all homes and business end-users in observation of its USO.