OpenNet admits to 'evaluating' IDA's decision on penalties

What does it have to say?

In a statement, OpenNet said that it is working on a number of initiatives that it has proposed to IDA to further improve its service delivery.

The proposal includes the introduction of additional installation capacity and conduct of mass home-reached exercise. Details are currently being discussed with the relevant stakeholders.

OpenNet is also in discussion with IDA to implement a fibre hand-over process that involves service providers handing-over a fibre connection when the fibre subscriber switches service providers. This measure aims to shorten the installation time for fibre subscribers when they are switching service providers. It also ensures that fibre network resources are optimally utilised through a managed hand-over of an existing fibre connection to the incoming service provider.

With regards to the fines imposed by IDA, OpenNet acknowledges and is evaluating IDA’s decision. OpenNet will continue to focus on improving its service delivery process.

The significant delays in provisioning services that began in May and June 2013 was the result of record orders of 23,000 and 31,000 respectively received in those months. The average orders received for the preceding six months were 17,000 a month. This resulted in longer waiting time.

OpenNet has responded with adding seasonal capacity to cope with the spike in demand. Further installation capacity was introduced in July 2013 in accordance with the quarterly quota review mechanism that was established with the IDA. OpenNet also began to offer installation capacity on Saturdays. However, it takes time for OpenNet’s contractor to increase installation capacity as they will need to hire and train new teams to ensure that the additional installation capacity is met.

OpenNet has completed its roll-out of the nationwide fibre network to existing premises in Singapore in less than five years since it was awarded the NetCo tender. Since the announcement of its 100,000th fibre subscriber in January 2012, OpenNet’s subscriber base has more than quadrupled to over 450,000 in October 2013. This represents a fibre penetration of more than 1-in-3 households in Singapore.

The initiatives in the proposal to IDA will address the issues impacting its service delivery process and OpenNet will continue to work with all stakeholders to ensure smooth implementation of the proposed initiatives.

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