Singapore's NBNcos explain their deployment strategies

The two companies responsible for deploying and operating Singapore’s planned national FTTP network have provided extensive new details on how they plan to encourage uptake of the offering. The strategy will be of intense interest to NBN planners in regional markets such as Malaysia, New Zealand and Australia.

Under Singapore’s internationally unique separation policy, the Opennet consortium, headed by Axia Netmedia with Singtel, will deploy a passive optical network, while Nucleus Connect, a StarHub unit, will operate the switches and electronics on the network as a wholesaler, providing open access to retail service providers.

In a packed-out conference in Singapore this week, Opennet CEO Tan Kah-Rhu said that the consortium planned to connect 60% of premises by the end of 2010 and 95% by 2012. Singapore has 1.11m households and 24,000 commercial premises, concentrated primarily in 30,000 high-rise buildings.

Tan said that, in the first instance, Opennet will send a letter to building owners seeking permission to install fibre. They can choose not to do so, but will incur greater fees and delays if they change their mind at a later date.

Occupiers of premises will be sent a connection offer letter with at least three weeks notice. Connections at this point will be free, but if that offer is ignored, a subsequent connection will be charged at S$220 or more for businesses. (One Singapore dollar equals 88 Australian cents).

In another move aimed at intensifying take-up, Tan also explained that Nucleus Connect will not be the only “operating company” allowed to operate electronics on the network, with an additional class of “qualifying persons” also able to do so. Informed sources close to the process tell CommsDay that these “qualifying persons” are the likely to come from the ranks of the 40 or more existing facilities carriers in Singapore who may seek fibre to terminate their own customers and networks.

However, with Nucleus Connect receiving a subsidy of S$250m from the government to build its network, observers suggest most retail service providers are unlikely to invest in their own electronics.

Opennet, which is receiving S$750m in direct subsidies, is pricing monthly fibre connections at S$15 a month for residential and $50 a month for non-residential. Nucleus Connect will use those connections as the key input into its conditioned services, which will be priced at relatively low mark-ups: an extra S$6 for residential and an extra S$25 for non-residential respectively.

According to Nucleus CEO David Storrie, the service offerings are designed to create maximum flexibility for retailers. There will be four classes of service ranging from best-effort to mission-critical. The network will support both GPON and Ethernet, and a wide range of services including VoIP, VPN, videoconferencing, leased lines, security, mobile backhaul and broadcast offerings will be supported, along with multicast functionality.

Opennet will operate nine central offices or exchanges across Singapore, while Nucleus will operate two.

Service processes between the two in relation to provisioning and troubleshooting will be automated and based entirely online. Retail service providers will be able to access this system as well.

The websites of both entities will promote offerings of retail service providers. 

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