SINGAPORE-Rupert Murdoch’s News Corp.-backed mobile phone company One.Tel announced its intention to pull out of the Singapore telecommunications market, citing Singapore Telecom as creating an unfavorable environment. One.Tel will move back to its Asian hub in Hong Kong. It further plans to channel back investments of US$5.58 million slated for Singapore in its first year of operations.
One.Tel blamed the move on its inability to negotiate a satisfactory interconnection agreement with SingTel. SingTel countered the deal faltered because One.Tel asked for preferential terms. The network connection agreement (NCA) was described as critical as it would enable One.Tel subscribers to connect to SingTel subscribers.
Complaints cited by One.Tel included an 80-page agreement it was asked to sign. One clause gave SingTel immunity from having to compensate One.Tel for billing errors. SingTel said it has successfully signed NCAs with 15 other similar service-based operators subjected to the same terms and conditions.
The breakdown in talks could sour relations with News Corp., which owns 20 percent of One.Tel. SingTel and News Corp. plan to jointly offer Internet access, interactive TV, video on demand and mobile Internet services in the region.
Regulator Infocomm Development Authority (IDA) said it was aware of One.Tel’s difficulties in its commercial negotiations for an interconnection agreement with SingTel. IDA explained to One.Tel that a Competition Code of Practice, which contained a framework to facilitate interconnection and access arrangements between dominant and nondominant licensees, had been released.
One.Tel had planned to offer an international simple resale business providing fixed-line long-distance services and later Internet service provider and mobile telecoms services. The company plans to keep the license despite leaving Singapore.
