TELECOMMUNICATIONS AND INFORMATION TECHNOLOGY INDUSTRY

[Mr Speaker in the Chair]

Mr Chng Hee Kok asked the Minister for Communications and Information Technology whether the Government will adopt a hands-off approach in the development of the telecommunications and information technology industry, especially in the industry's pricing of services and marketing.

The Minister for Communications and Information Technology (Mr Yeo Cheow Tong): Mr Speaker, Sir, in a fully liberalised and competitive market environment, the Info-communications Development Authority of Singapore, or IDA, will be moving towards regulating with a lighter touch. This will allow more freedom for telecom operators to innovate and compete in terms of pricing and marketing. However, IDA will continue to uphold the key regulatory requirements of fair and equitable inter-connection, inter-operability and open access so that consumers can transparently and seamlessly communicate with others regardless of whichever network they are directly connected to. Only then will consumers truly benefit from competition in a multi-operator, multi-network environment. IDA also recognises that there will be a transitional phase as we move towards a fully liberalised environment. During this period, it will still be necessary for IDA to keep a vigilant watch over the industry to facilitate the entry of new players.

Mr Chng Hee Kok (East Coast): Sir, press reports seem to suggest that our telecommunications policies are falling behind Hong Kong and that we are playing catch up. Will the Minister like to comment on that?

Mr Yeo Cheow Tong: Sir, I am not too sure exactly what Mr Chng is referring to. But if he is referring to the fact that we are now opening up the market fully with effect from 1st April 2000 instead of 2002 whereas Hong Kong has a fully liberalised environment, then it is true. We cannot hide from the fact that we have stipulated a deadline for the opening up of the market and this deadline was stipulated when we first privatised Singapore Telecom and when we invited tenders for the second fixed line network in Singapore which was set in 1996.