SINGAPORE TELECOMMUNICATIONS (Application to raise local telephone rates)

Mr Steve Chia Kiah Hong asked the Acting Minister for Information, Communications and the Arts whether his Ministry plans to approve Singapore Telecommunications' application to raise local telephone rates.

Mr David Lim: Mr Speaker, SingTel has submitted a proposal to IDA to raise its local telephone rates. In assessing the case for an increase, the key consideration is whether SingTel is incurring a deficit in providing fixed line local call services.

IDA is currently auditing the data and information supplied by SingTel. The audit will take some time because there is a need for IDA to clarify the cost modelling and data with SingTel. IDA expects to complete its assessment, and reach a decision by the third quarter of this year.

Mr Steve Chia Kiah Hong: Sir, in view of the difficult times that we are facing now and the many other increases from the various Ministries, would the Minister consider delaying this increase until the economy has recovered?

Mr David Lim: Mr Speaker, Sir, we have not yet determined that there will be an increase. I think we should first study the numbers to see whether or not there will be one.