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Virgin Mobile launch lacks StarHub interconnection

SINGAPORE—Virgin Mobile, which launched its service in Singapore on 12 October, has found itself caught in a disagreement between incumbents SingTel Mobile and StarHub. Virgin Mobile Chief Executive Sir Richard Branson claimed Starhub is asking US$234,000 to let Virgin Mobile customers be connected to StarHub customers.

StarHub had asked certain things from SingTel Mobile, which is partnering with Virgin Mobile in its mobile virtual network operator (MVNO) service in Singapore. SingTel Mobile had obliged and provided the requests the same day. Then came the request for the connection fee. StarHub Chief Executive Officer (CEO) Terry Clontz said Virgin Mobile customers could not be connected to StarHub users because it was unclear if such an agreement would be made with SingTel or Virgin Mobile. He also said that SingTel Mobile had yet to settle five months worth of bills for completing SingTel Mobile calls to StarHub networks.

Clontz said that SingTel Mobile is applying for access on behalf of Virgin Mobile, and therefore, the two companies had to settle their dues before StarHub would consider connection. On the launch date for the Virgin Mobile service, SingTel Mobile said it would pay up. This would put the onus on StarHub to open the network immediately as MoblieOne (M1) is doing. Clontz said US$234,000 is the cost of working around the clock to open its networks in a few days rather than three weeks.

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