Next Generation National Broadband Network for Singapore ... · Outline of Presentation 1. Recap on...
Transcript of Next Generation National Broadband Network for Singapore ... · Outline of Presentation 1. Recap on...
CONFIDENTIAL© 2008 IDA Singapore. All Rights Reserved. 1
Next Generation National Broadband Network for Singapore (Next Gen NBN)Presented by Mr Khoong Hock Yun, Assistant Chief Executive (Infrastructure Development Group), IDA
7 April 2008
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Outline of Presentation
1. Recap on Overview of iN2015 and Strategic Objectives of Next Gen NBN
2. Update on Next Gen NBN Developments
3. Next Gen NBN Industry Structure
4. Key Next Gen NBN Project Parameters
5. Procurement Process & Timeline
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Recap on Overview of iN2015 andStrategic Objectives of Next Gen NBN
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iN2015 Masterplan : Our Digital Vision for Singapore
Ultra-high Speed, Pervasive, Intelligent
and Trusted InfocommInfrastructure
Ultra-high Speed, Pervasive, Intelligent
and Trusted InfocommInfrastructure
Infocomm-savvy Workforce and Globally Competitive Infocomm Manpower
Infocomm-savvy Workforce and Globally Competitive Infocomm Manpower
Globally Competitive Infocomm Industry
SectoralTransformationof Key Economic
Sectors, Government and Society
SectoralTransformationof Key Economic
Sectors, Government and Society
Digital Media & Entertainment
Education& Learning
Government
Healthcare& Biomedical
Sciences
Manufacturing & Logistics
Tourism, Hospitality
& Retail
Financial Services
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Infrastructure leadership has been critical to Singapore’s competitiveness
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Increasing Demand for Broadband and Demand for Higher Speeds
0
200,000
400,000
600,000
800,000
1,000,000
3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07Quarter
Num
ber
of S
ubsc
ript
ions
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Hou
seho
ld B
road
band
Pen
etra
tion
256 to 512 Kbps (inclusive) > 512 Kbps to 2 Mbps > 2 Mbps to 10 Mbps > 10 Mbps Household Broadband Penetration
79.2% Feb ‘08
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Mainstream Services Increasingly Offered Online
Video Streaming
Filing e-Taxes
Online Shopping
Online Job Search
Working from Home
Online Gaming
Online Travel Bookings
Online Healthcare
Online Stock Trading
Online Banking
Video Conferencing
Global Collaborations
E-Learning
Online Chatting
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Update on Next Gen NBN Developments
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Extensive Industry Consultation & Dialogue
NetCoRFP
Request for Proposals (RFP)
IPCDStage
IPCD Issued (15 Dec 06)
IPCD Submission(9 Feb 07)
Pre-Qualification of12 Bidders(2 Mar 07)
Competitive DialogueInvitation to Participate in Pre-Qualification and Competitive Dialogue (IPCD)
CDStage
Competitive Dialogue with Pre-Qualified Bidders(14 May – 5 Nov 07)
Competitive Dialogue
Issue of Competitive Dialogue Documents
(2 Mar 07)
Submit Competitive Dialogue Proposals(4 May 07)
11 Dec 07 – 3rd Qtr 08. Details shared at NetCo RFP launch on 11 Dec 07.
We are here
Next Gen NBN RFP
Budget 2006 Speech17 Feb 2006
Committee of Supply3 Mar 2006
Request for Concept (RFC)Mar 2006
OpCoRFP 7 Apr 08 – 1stQtr 09. Details in Subsequent Slides. 7 Apr 08 – 1stQtr 09. Details in Subsequent Slides.
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Next Gen NBN Industry Structure
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Next Gen NBN Industry Layers
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Key Economic Characteristics of Next Gen NBN Industry Layers
OpCo RFP•Subject of this Briefing
Key Economic Characteristics•Likely to have multiple OpCos in addition to Next Gen NBN OpCo
•Medium barrier of entry
•Medium cost of replication
NetCo RFPIssued on 11 Dec 2007
Key Economic Characteristics•Likely to be natural monopoly
•High barrier of entry
•High cost of replication
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Defined as “No Effective Control”
Stricter form of separation
For all intents and purposes, they are separate entities with fully autonomous decision-making considerations
No Effective Control means that Entity A has no control over the management and major operating decisions of Entity B, and vice versa.
One assessment factor is level of cross-shareholding, amongst others
Less stringent form of separation
Allows the upstream entity to retain full shareholding ownership of its downstream operating units
Required to set up a separate legal entity for its operations
Provide Equivalence of Inputs to all downstream operators, i.e., provide services at the same prices and terms, with the same processes and information
Shall be independent from its affiliated downstream operating units
Structural Separation Structural Separation Operational Separation Operational Separation
Types of Separation Considered Between Upstream and Downstream Operators to Achieve Effective Open Access
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Vibrant & Competitive Industry through Effective Open Access with Next Gen NBN Separation Requirements
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Next Gen NBN OpCo shall be independent from its downstream affiliated operating units, including the following:
Operate in all respects on a standalone basis, separate from affiliated downstream operating units
Be located in separate premises
Independently formulate & make own decisions on its assets and commercial policy
Not allow its affiliated downstream operating units to have unequal influence on the formulation of commercial policy, and access to commercial information or customer confidential information
OpCo’s Board of Directors, Management and employees not to have responsibilities in any Affiliated Operator
All remuneration and incentive schemes for the OpCo’s Board of Directors, Management and employees not to be linked to the performance of Affiliated Operator(s)
Ensure compliance with Operational Separation Requirements through the maintenance of a comprehensive governance manual, monitoring against a set of Operational Separation Performance Indicators, & appropriate reporting to the Monitoring Board
Key Operational Separation Requirements for Next Gen NBN OpCo
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Key Next Gen NBN Project Parameters
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Key Licence Obligations & Targets of Next Gen NBN OpCo OpCo RFP
• Subject of this Briefing
Key OpCo Obligations• Operational Separation• Price Control via
Interconnection Offer (ICO)• Universal Service Obligation
(USO)• Licence period of 25 years
Key OpCo Targets• Adoption target by 2015
• 330,000 Residential subscribers
• 80,000 Non-Residential subscribers
Government Support• Grant of up to $250m• Catalyse further private sector
investments• Bring about NBN OpCo to fulfil
above obligations and targets
NetCo RFPIssued on 11 Dec 2007
Key NetCo Obligations• Structural Separation• Price Control via
Interconnection Offer (ICO)• Universal Service Obligation
(USO)• Licence period of 25 years
Key NetCo Targets• Rollout Target
•50% by 2012•USO in 2015
Government Support• Grant of up to $750m
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Exciting Benefits End-Users Can Look Forward To
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Attractiveness of Wholesale ICO Price
Terms to Industry(~45%)
Attractiveness of Wholesale ICO Price
Terms to Industry(~45%)
Quality of Network
Infrastructure(~15%)
Quality of Network
Infrastructure(~15%)
Attractiveness of Non-Price ICO
Terms to Industry(~25%)
Attractiveness of Non-Price ICO
Terms to Industry(~25%)
Selection of OpCo Proposal to Generate Long Term, Sustainable, Competitive & Vibrant
Broadband Market
Selection of OpCo Proposal to Generate Long Term, Sustainable, Competitive & Vibrant
Broadband Market
Level of Government
Grant(~15%)
Level of Government
Grant(~15%)
Key Evaluation Parameters for Next Gen NBN OpCo
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Business Price Aspects
Attractiveness of ICO Price Terms to Industry (~45%)Attractiveness of ICO Price Terms to Industry (~45%)
Competitiveness of Wholesale ICO Prices
(~40%)
Competitiveness of Wholesale ICO Prices
(~40%)
Competitiveness of ICO Price Controls
(~5%)
Competitiveness of ICO Price Controls
(~5%)
Factors Include:• Residential• Non-Residential• Non-Building Address Points
Factors Include:• Residential• Non-Residential• Non-Building Address Points
Business Price Aspects
Technical Aspects
Business Non-Price Aspects
Financial Aspect
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Business Non-Price Aspects
Attractiveness of ICO Non-Price Terms to Industry (~25%)Attractiveness of ICO Non-Price Terms to Industry (~25%)
Attractiveness of ICO Terms & Conditions to RSPs
(~13%)
Attractiveness of ICO Terms & Conditions to RSPs
(~13%)
Comprehensiveness & Relevance of ICO Offering
(~9%)
Comprehensiveness & Relevance of ICO Offering
(~9%)
Factors include:• Ordering, Provisioning &
Deactivation• Planning & Forecasting• Billing• Service Level Guarantees
Factors include:• Ordering, Provisioning &
Deactivation• Planning & Forecasting• Billing• Service Level Guarantees
Factors include:• Basic Mandated Services• Ancillary & Basic Non-
Mandated Services
Factors include:• Basic Mandated Services• Ancillary & Basic Non-
Mandated Services
Other Business Plan Benefits
(~3%)
Other Business Plan Benefits
(~3%)
Business Price Aspects
Technical Aspects
Business Non-Price Aspects
Financial Aspect
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Technical Aspects
Quality of Network Infrastructure (~15%)Quality of Network Infrastructure (~15%)
Capability of Network(~11%)
Capability of Network(~11%)
Scalability & Upgradeability of Network(~4%)
Scalability & Upgradeability of Network(~4%)
Factors include:• Access Technology• Network Enhancements• Network Security & Management
Factors include:• Access Technology• Network Enhancements• Network Security & Management
Factors include:• Scalability• Upgradeability
Factors include:• Scalability• Upgradeability
Business Price Aspects
Technical Aspects
Business Non-Price Aspects
Financial Aspect
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Financial Aspect
Level of Government Support (~15%)Level of Government Support (~15%)
Lower level of Government grant requested will score higher.
Level of Government grant capped at $250 Million.
Business Price Aspects
Technical Aspects
Business Non-Price Aspects
Financial Aspect
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Procurement Process & Timeline
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Project Timeline
* 14-days window for new bidders to submit qualifications. If new bidders are qualified or new consortium leads appointed, IDA will extend tender closing for all bidders by 40 days, or on the next working day.
NetCo RFP cum Qualification(11 Dec 07)
Next Gen NBN NetCo Request for Proposal
NetCo RFP submission (5 May 08)
Award of Winning Bid
(3rd Quarter 08)
Next Gen NBN OpCo Request for Proposal
OpCo RFP cum Qualification*
OpCo RFP cum Qualification*
OpCo RFP submission (20 Aug 08)*
OpCo RFP submission (20 Aug 08)*
Award of Winning Bid
(1st Quarter 09)
Award of Winning Bid
(1st Quarter 09)
7 Apr 08
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Q & A Session
SINGAPORE: AN INTELLIGENT NATION, A GLOBAL CITY POWERED BY INFOCOMM
www.ida.gov.sgwww.infocommsingapore.sg
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