A New Entrant in the Singapore Telecommunications Market StarHub Pte Ltd at IDA Public Forum 15 May 2000

Outline Background & Our Short History Critical Milestones Some of our experience : The New Entrant Conclusion

StarHub Shareholding Consortium of 4:- STT 34.5% SP 25.5% NTT 22% BT 18%

Short History Responded to IDA (then TAS) PBTS tender on 1 March 97 (phase 1 pre- qualification round) and 1 August 97 (phase 2 main tender) Responded to IDA PCMTS tender on 1 October 97 Awarded both PBTS and PCMTS licences. StarHub PCMTS and PBTS Licences entered into force since 5 May 2000.

Short History List of Licensed Services: –Public Switched Telephone Services –Public Switched Message Services –Public Switched ISDN Services –Leased Circuit Services –Public Switched Data Services –Public Radiocommunication Services –Public Cellular Mobile Telephone Services (StarHub Mobile) –Public Internet Access Services (StarHub Internet)

Short History Mobile Trials from March 2000 Launched PBTS and PCMTS commercial services on 1 April 2000

Critical Milestones Commenced interconnect negotiations with SingTel PBTS on July 1998 Commenced interconnect negotiations with other Paging, Mobile Operators and SingTel for direct and indirect interconnection from Aug Interconnect Agreements (IA) to enable any-to-any connectivity in Singapore signed before launch of commercial services

Critical Milestones IA with SingTel for Fixed-to-Fixed Interconnect signed 30 June 99 IA with StarHub Mobile signed 15 Feb 2000 IA with SunPage signed 7 March 2000 IA with M1 signed 15 March 2000 Transit Agreement with SingTel to all MTOs signed 31 March 2000 (though mobile trials ongoing since March under Commercial Trial Agreement with SingTel).

Our Experience Negotiated against a backdrop of Interconnect Framework and Guidelines in place IDA facilitation and intervention where deemed necessary Broad Guidelines on Competitive and Regulatory Framework: Information Package Progress of Negotiations as expected with Dominant Player

Our Experience Basis of what StarHub wanted: –Economically, Technically & Administratively Efficient Interconnection –Any-to-any capability –Ability and freedom for Customers to choose, access and use the service he/she wants to –Speed of Implementation

Our Experience Probably not very different from Rest of the World Behaviour of Dominant Player vis a vis New Entrants –Each coming from different ends of the spectrum

Our Experience IDA Regulatory Intervention –Areas that will potentially jeopardise any-to- any connectivity and launch dates –Level playing field and asymmetry in bargaining position between New Entrant and Dominant Player –Balance between commercial and regulated areas –IDA has and will act swiftly when necessary

Our Experience What we want to see: –Dominance regulation –Between non-dominant licensees, light handed approach to regulation and negotiation –Clear guidelines and ground rules to preempt abuse of Dominant Power in dealing with competitors and competing for consumers in the marketplace. Tariff filing, accounting separation, unbundling of services, access to infrastructure & network, sharing of essential or bottleneck facilities, interconnection, minimum quality of services to competitors etc

Our Experience –Quick and effective enforcement of regulatory framework –Quick Intervention in cases of breach of regulatory framework –Greater consultation and transparency in policy making

Conclusion Welcomes full competition in the Singapore telecommunications market Greater choice for consumers and even licensees Keen to work with IDA in developing Singapore as a ICT Hub Happy to cooperate and negotiate with all players