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.
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.
According to a statement by IDA, it 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 said it has decided to impose a financial penalty of S$550,000 on OpenNet for its failure to comply with its USO. Since 1 July 2013, OpenNet has been accepting orders for fibre services to all homes and business end-users in observation of its USO.
IDA also found that OpenNet had failed to meet the residential QoS standards for timely service provisioning in Q1 and Q2 2013.
The main cause of failure was a shortage of service activation capacity from OpenNet to meet the strong demand for residential end-user connection services in the first half of 2013, in particular in Q2 2013, said IDA in its official statement.
IDA waived the financial penalty for Q1 2013 as it was the first quarter of the QoS commencement and OpenNet needed more time to adjust its systems to comply with the QoS standards for service provisioning. IDA has decided to impose a financial penalty of S$200,000 on OpenNet for its failure to comply with its QoS in Q2 2013.
OpenNet has been given until 31 December 2013 to rectify its QoS performance for residential end-user connection services. IDA also is currently assessing OpenNet's QoS performance for its non-residential end-user connection services.
"IDA expects telecom licensees to closely abide by their obligations; these form the minimum standards that licensees have to provide to their users," said Leong Keng Thai, IDA's Deputy Chief Executive and Director-General (Telecoms and Post). "OpenNet's failure to meet both the USO and the QoS standards shows its inability to fulfil the promises it made to its customers. OpenNet must re-examine the management of its resources and its operations to more effectively meet IDA's regulatory requirement and more importantly, end-users' service expectations."
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