20 July, 2017
Amendments to the Telecommunications Act
Introduction
The Telecommunications (Amendment) Bill was passed in Parliament on 10 November 2016 and took effect on 1 February 2017.
The amended Telecommunications Act provides a broad legal framework for the regulation of Singapore's telecoms sector, and provides the Info-communications Media Development Authority ("IMDA") with various powers to grant licenses, issue directions and codes of practices, and promulgate service standards.
These amendments were adopted with the purpose of ensuring Singapore remains relevant and effective in regulating and encouraging the development of the telecoms industry amidst rapid technological changes.
To ensure that the telecommunications sector is capable of meeting these demands, these amendments were adopted to further grant the IMDA the authority to facilitate the continued deployment of telecoms infrastructure.
Another objective of these amendments is to safeguard against anti-competitive behavior within the telecoms sector, such that consumers have full freedom to choose their preferred operator and services.
Proposed Amendments
The main amendments of the Telecommunications Act are as follows:
- The Telecommunications Act has been amended to clarify that parties who have control over the day to day management of a building must comply with the Code of Practice for Info- communication Facilities in Buildings. The IMDA will enforce the requirements on the legal owner of the building before reaching out to building managers like the Management Corporation or the Town Council.
- The IMDA is authorised to impose further regulations on 'springboarding'. This refers to mobile deployments sited at suitably high locations such as building rooftops to serve multiple buildings. Further consultations will be held with the relevant stakeholders.
- Telecommunication licensees must provide sufficient notice when entering buildings to deploy their infrastructure. Clear and accurate notifications must be issued to the building owner stating their intent and nature of the activities.
- Mandatory exclusive arrangements between Telecommunications service providers and building owners are prohibited. This will give end-users the freedom to choose their preferred operator and services. However, this will not prevent building owners from entering into promotional arrangements with operators. This will not apply to data centers, central offices and telecom exchanges.
- The IMDA is authorised to issue written notices and directions to licensees, developers, owners or occupiers of land or building to achieve compliance.
- The definition of "telecommunications service" has been amended to include the leasing of telecommunication cables.
(a) Establishment of an Alternative Dispute Resolution scheme for dispute resolution between telecommunication and media licensees and their subscribers.
- This will be mandatory for service providers, though consumers will have the flexibility to resolve their disputes through the ADR Scheme or through other avenues such as the Courts of Small Claims Tribunal.
- This will allow better management of consumer disputes, especially with regard to customer-specific contractual and billing issues.
- The IMDA will consult relevant stakeholders regarding the implementation of this scheme.
(b) Regulations regarding consolidations and corporate governance.
- The IMDA's directions with respect to consolidations can override the provisions of the Business Trusts Act, the Companies Act and the listing rules of a securities exchange.
- The IMDA is empowered to issue directions to enforce conditions of approval for mergers and acquisitions involving a designated telecommunications licensee, business trust or designated trust.
Implications
The Telecommunications sector should be aware of these amendments, especially in relation to the IMDA's position in the sector. Where possible, businesses in the telecommunications sector should participate in the upcoming consultations, including those involving the proposed framework for the alternative dispute resolution forum.
The Telecommunications Act will provide greater consumer protection vis-a-vis telecommunication service operators by establishing a new avenue of alternative dispute resolution for consumer-specific disputes with telecommunications operators.
For further information, please contact:
Andy Leck, Principal, Baker & McKenzie.Wong & Leow
andy.leck@bakermckenzie.com