CABLE TV

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CABLE TV: 11.

Miss Penny Low asked the Minister for Information, Communications and the Arts as many households are not enjoying cable television due to the prolonged dispute over access to existing fixed line telecommunications network, (a) what is the status of the dispute; (b) whether there is a deadline for the dispute to be resolved; (c) what is his Ministry's policy on fair competition and access to such network; and (d) is there a deadline set out in the licence granted to Starhub Cable Vision to complete the roll out of its services to all sectors of the public.

The Minister for Information, Communications and the Arts (Dr Lee Boon Yang): Mr Speaker, Sir, a decision on the appeal lodged by SingTel against the InfoComm Development Authority's ruling on the dispute between SingTel and Starhub Cable Vision (SCV) was reached in July 2003. This dispute arose from differences in interpretation of key terms in a contract between SingTel and SCV. The decision set out the principles for the resolution of the dispute in a way that fulfilled the consumers' need for cable connection while ensuring that the commercial interests of both parties to the private contract were not compromised.

A Working Group comprising senior management from SingTel and SCV with the InfoComm Development Authority playing a facilitative role was formed to guide the implementation of the decision.

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The Group meets regularly to discuss details of implementation and to resolve the practical and other difficulties they encounter in carrying out their contractual commitments.

My Ministry closely monitors the developments at the Working Group and we are satisfied with the progress and results achieved by the Working Group, even if not all issues have been completely resolved at this stage. We note that the Working Group has enabled SingTel and SCV to exercise greater flexibility on operational procedures and interconnection matters. This collaborative approach adopted by the Working Group has enabled 30,800 homes to be connected. The Working Group will continue to ensure that the remaining unconnected homes can be cabled up in the most expeditious manner. The Group has updated my Ministry that this number is around 20,000 homes as at 30th January 2004.

Regarding the deadline for the completion of cable roll-out, the initial target of nationwide cable roll-out was attained by SCV in September 1999, as stated in its licence. Moving forward, stipulating a fixed deadline as a condition in SCV's licence is not practical as there will be a constant flow of new HDB and private developments being completed.

On my Ministry's policy on fair competition and access to networks, it is important to take note that unlike in the past, our telecommunications licensees are now operating in a highly competitive environment. In line with the overarching goal of enhancing Singapore 's economic competitiveness, pro-competition policies and approaches should be allowed to prevail whenever viable. Hence, we must bear in mind that the issue at hand is fundamentally a contractual dispute between two commercial firms.

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Therefore, ideally speaking, such disputes should be best left to the contracting parties and market dynamics to resolve.

However, we also acknowledge that competition alone does not always assure us efficient delivery of services. There are situations when Government regulatory intervention may be needed. But even then, it is imperative that the level of regulation used be judiciously calibrated to achieve policy objectives. In doing so, we must guard against tendencies to fall back on heavy handed regulatory intervention at the first instance. In the rapidly changing and still evolving infocomm sector, excessive regulation could distort commercial operations, stifle enterprise, and even undermine consumer interests in the long run. Hence, it is necessary to strike a balance between regulatory intervention and respect for private contractual arrangements.

In conclusion, let me assure the House that my Ministry and the InfoComm Development Authority will continue to work with SingTel and SCV to ensure expeditious provision of cable services to residential properties.

Miss Penny Low (Pasir Ris-Punggol): Sir, I thank the Minister for his very comprehensive answer. During the SARS outbreak itself, there were a number of national messages which were carried through the cable vision, and some of these broadcasts via cable were quite necessary because they involved teaching people how to wash hands and wear masks, and so on. But those households without access to cable vision had no access to such messages. How do we ensure that if there are other such national messages to be broadcast, that these currently 20,000 households will not be left out of such messages broadcast?

Dr Lee Boon Yang: Mr Speaker, Sir, even if a household does not have access

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to cable vision, it does not mean that it is deprived of access to television broadcast. In fact, homes that have no access to cable vision can still access free-to-air channels through the terrestrial broadcast. So, there is nothing to stop us from conveying important messages through the free-to-air television channels which are available to all Singaporean households.

In the case of the special SARS channel, it may well have been - I am not sure - put out as a free-to-air-channel which is accessible to anybody who is connected to cable vision. Those homes that do not have the connection may not have access, but the messages can also be conveyed through the other channels or free-to-air terrestrial broadcast, radio and, of course, the printed media, the newspapers. So, it is not as if cable vision is the only channel for us to communicate important public information and messages to our people.

Miss Penny Low: I am heartened to note that there are other channels which the Ministry will use in future if such a situation does arise. During that period of time, a number of my residents, especially in the town of Punggol 21, who are affected ---

Mr Speaker: Miss Low, we are running out of time. Your question, please.

Miss Penny Low: My question is: how many households in new towns, like Punggol 21, still do not have access to cable, and when can they expect to be able to access the cable service?

Dr Lee Boon Yang: Mr Speaker, Sir, I do not know whether the number that the Member asks for, covering Punggol New Town, is exactly the same category as I have here. I have asked my staff to provide me with some information and

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they told me that in Punggol, there are 3,377 homes that are connected. There are 4,082 homes that are yet to be connected. There are another 1,032 homes that have not received the temporary occupation permit, and once the permit is granted, it would then be studied whether the homes can be connected or not. In nearby Sengkang, there are also about 1,737 homes that are connected, and the unconnected homes in Sengkang are 1,110 homes, with another 2,265 homes that are pending TOP. So, in total, in the areas of Punggol and Sengkang, there are altogether about 5,192 homes that are not connected or another 5,114 homes that are already connected.

The Working Group, as I said earlier on, will actually be putting a lot of effort and spending a lot of time looking at the homes in Punggol and Sengkang to ensure that they can be cabled up as soon as possible.