StarHub frets over new installation quota for OpenNet

Raising weekly quota from the current 2,400 to 3,100 will take about 7 years to connect the whole of Singapore, says spokesperson.

New order from IDA says that quotas are to be raised in the following quarter by 10% of the preceding 12 weeks’ average orders if orders exceed 95% of the quota.

As for seasonal spikes in orders, i.e. during IT fairs, OpenNet must introduce additional capacity and cannot levy additional charges. It also has to clear the seasonal demand “within a reasonable period of time".

Starhub however says that the new measures are not sufficient.

Here's a comment from Jeannie Ong, StarHub’s Head of Corporate Communications & Investor Relations:

“We are studying IDA’s document on its review of OpenNet’s ICO, and are glad to note some improvements. However, we are concerned that the revised quota mechanism remains insufficient to meet the needs of the market. At this rate, it will take about seven years to connect the whole of Singapore. While we welcome the additional option for Requesting Licensees to pick up OpenNet’s connection to serve the non-residential users, this may not be as effective as OpenNet delivering to the customers in a timely manner in accordance with its ICO service obligations.”

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