National Broadband Plan Singapore

IMDA

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GTO IMDA I N F O C O M M & M E D I A

D E V E L O P M E N T A U T H O R I T Y

G O V E R N M E N T T E C H N O L O G Y

O R G A N I S A T I O N

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High-speed Broadband Networks

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National Trust Framework

Nationwide Broadband Network (NBN)

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Realising the Leading National Infocomm Infrastructure

Wireless Broadband Network (WBN)

Broadband Networks

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Interoperability Data Protection Security Payment Location Identity

Infrastructure Leadership Critical To Singapore’s Competitiveness

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Projected demand

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NBN – Desired Outcomes

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Why Open Access is the way ahead • Key Policy Objectives of the NBN

• Promote competition in fixed line telecommunications market • Encourage Open Access environment

• Industry players have more options to adopt models • To suit their businesses and respond to market needs

• Lead to long-term competition and vibrancy in the industry • Consumers and businesses to benefit from lower prices and innovative services

• Decision to restructure industry undertaken after extensive study and year long consultation with Industry

• IDA studied overseas deployments with varying models of separation • Similar projects in United Kingdom, Canada, Sweden, Italy & the Netherlands

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NBN Industry Structure

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Network Company (NetCo) Responsible for the design, build and operation of the

Network’s passive infrastructure

Operating Companies (OpCos) Responsible for the design, build and

operation of the Network’s active infrastructure

Retail Service Providers Purchase bandwidth from OpCos and

provide competitive and innovative services

End-Users Consumers / Businesses

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Open Access Industry Structure

Highlights of RFP

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Operational Separation

Structural Separation

Key NetCo Obligations • Structural Separation • Price Control via ICO • USO • Licence period of 25 years

Government Support • Grant of up to S$750m

Key OpCo Obligations • Operational Separation • Price Control via Interconnection Offer (ICO) • Universal Service Obligation (USO) • Licence period of 25 years

Government Support • Grant of up to S$250m

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NBN Coverage Requirements

Categories of Premises

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• Commercial blocks • Industrial blocks • Institutional properties • Government offices • Schools • Hospitals • Libraries

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• Public housing • Private apartments • Private landed housing

• Lamp-posts • Bus stops • Traffic junctions • Wireless access points • Street-side display signs

Non-Residential Residential Non-Building Address Points

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(CONFIDENTIAL)

NBN Rollout and Progress • Achieved nationwide fibre coverage since mid 2013

Fibre continues to be deployed to new residential and non-residential buildings USO placed on the NBN NetCo (or NetLink Trust)

• More than 1,000,000 NBN subscribers today Base has multiplied many-fold since Jan 2012’s number of 100,000 subscribers Growing proportion of consumers on 200Mbps or higher bandwidth plans

• A total of 30 RSPs and 12 OpCos have come on board the NBN 6 years ago, only 3 nationwide providers for fixed line broadband More players, such as Cloud, SaaS Providers & even non-telecom companies have entered the market

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RSP

OpCo 12

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Competitive Services and Price • As of Feb 2016, there are 22 residential

fibre plans offered by RSPs 100% of the plans offered are at 100Mbps and

above

About 82% of the plans offered are at 200Mbps and above, and about half the plans offered are at 1Gbps and above

• Prices have substantially dropped The price for a 1Gbps plan has dropped by

about 90% (it cost S$395.90 - S$499.95 about 6 years ago)

Now, 1Gbps plans go for as low as S$39

(CONFIDENTIAL) 11

(Source: https://www.ida.gov.sg/applications/rbs/chart.html)

Current Trends and Developments

(CONFIDENTIAL) 12

1. Continued demand for NBN fibre • Migration of customers from legacy copper and coaxial network • Customer churn between fibre service providers • Delays encountered for orders that required NLT to lay additional fibre

2. Introduction of XGPON based services over NBN

• Fibre network designed with and certified for GPON • On best efforts basis, several RSPs have started using NBN network to offer

XGPON based products to consumers

Promoting Wireless Broadband

29 September 2016 (CONFIDENTIAL) 13

Facilitate Entry of Fourth MNO Wireless@SG Het-Net &

Small Cells

• Wireless@SG had been rolled out across the island • E.g. malls in city centre, community spaces in heartlands, MRT stations, etc

16 August 2016 (CONFIDENTIAL) 14

Wireless Broadband via Wireless@SG

WIFI HOTSPOTS ACROSS SINGAPORE

10,000

Figures are accurate as of June 2016.

ACTIVE USERS

2 MILLION

OF WHICH >90% SIGN ON

USING EAP-SIM AUTHENTICATION

5Mbps FREE WI-FI ACCESS

Uniqueness of Wireless@SG

• Federated Network • Industry Collaborative Model • Free Access and Local Roaming

16 August 2016 (CONFIDENTIAL) 15

Users have the flexibility to register with ANY operator &

enjoy free access at any hotspot

Moving Forward

16 August 2016 (CONFIDENTIAL) 16

ENHANCING CONNECTIVITY DELIVERING 4x MORE HOTSPOTS BY 2018

Enhancing Competition in Mobile Space

Likely key factors that would impact the viability of the market to support a new entrant:

Funding • ~ $300 – $700 million required in initial years • Large upfront capital outlay limits new MNO’s ability to compete in

open auction together with incumbents

Access to Spectrum • Combination of high and low frequency spectrum adequate to compete

effectively in the mobile market

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IDA proposed spectrum allocation and facilitation measures for 4th Player

First Consult (April 2014) Identified spectrum from different bands that may be made available for mobile

broadband in the short and long term Explored possible options to facilitate greater competition in the mobile sector

Second Consult (July 2015) Identified specific bands (e.g. 900MHz, 2.3GHz band) for allocation in the upcoming

allocation exercise Identified 225 MHz of spectrum for release in short term Facilitate new MNO entry:

• 60 MHz of spectrum for auction at a starting bid price of S$40 mil • Separate New Entrant Auction before General Auction

Discussed technical issues and auction parameters Proposed negotiation principles to facilitate wholesale access for MVNOs

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1. New Entrant Spectrum Auction (NESA) – Only for pre-qualified, eligible New Entrant Bidders Single package of 60 MHz of spectrum will be set aside at New Entrant Spectrum Auction $35 mil as starting price

2. General Spectrum Auction (GSA) – Only for existing nationwide MNOs and Winning New Entrant Bidder Only facilitate 1 more new MNO:

• Unlikely to be viable to have >1 new MNO given Singapore’s current market size • To prevent the spectrum holdings from becoming too fragmented

2016 Auction Parameters 700 MHz

2.3 GHz TDD

900 MHz

2.5 GHz TDD

2 x 45 MHz

2 x 30 MHz

40 MHz

45 MHz

General Spectrum Auction New Entrant Spectrum Auction

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• Must provide evidence of technical capabilities, management skills and financial position

• Track record, including past performance and compliance with regulatory obligations

• Business plans, including innovative service offerings

• S$20 mil or 5% of budgeted CAPEX, whichever is higher

• Tied to new MNO’s network rollout milestones • Right to draw on performance bond if new MNO

fails any rollout milestones

Pre-qualification Performance bond

New Entrant Bidders Must Demonstrate that they are Capable and Committed

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HetNet Case Study: HetNet Trials @ Jurong Lake District • Heterogeneous Network (HetNet) refers to a model of ubiquitous interoperable

wireless access technologies to achieve “Everyone, Everything connected Everywhere, All the time” (E3A)

• A HetNet is made up of a well-tuned mix of large mobile base stations and smaller mobile base stations known as small cells comprising different wireless technologies, such as cellular and Wi-Fi

• Small cells are low-powered radio access nodes that have a range of ten metres to several hundred metres and are “small” compared to the macro base stations which may have a range of up to tens of kilometers

29 September 2016 (CONFIDENTIAL) 21

HetNet trial: On-Bus HetNet Technology

• Seamless connectivity/mobility from WiFi to 4G • end users do not need to re-setup the data session as their data connectivity shift from

macro cell to the in-vehicle unit and back

• Offload and traffic steering mechanism • provide consistent end user QoS

• Consistent data session experience as end users travel towards their destinations on board the bus

• the LTE backhaul to the in-vehicle unit stays consistent to maintain the connectivity as the bus moves and allows real-time media applications

29 September 2016 (CONFIDENTIAL) 22

Smart Nation is Important for Singapore “As our city becomes increasingly complex and diverse, the demands on amenities, infrastructure and resources will rise. We will make full use of new technologies to develop sustainable and innovative solutions that improve our lives. We will make Singapore a Smart Nation: enabling safer, cleaner and greener urban living, more transport options, better care for the elderly at home; more responsive public services and more opportunities for citizen engagement.” - President’s Address to Parliament, May 2014

“...we are venturing into new industries, new technologies; globalisation is progressing, people talk about big data. We are part of that. We want to be a smart city, a smart nation.” - PM Lee Hsien Loong, Parliament Speech, 28 May 2014

(CONFIDENTIAL) 24

COMMUNICATIONS to establish resilient wired and wireless connectivity to sensors

SENSORS AND PROBES to sense, capture and register environmental information

SMART NATION OPERATING SYSTEM to process, fuse and share data with agencies

SNP CAPABILITIES & COMPONENTS Sensor Network & Smart Nation Operating System

Citizen Centric Service Delivery

Thank You