Tuesday, September 02, 2008

Why Adnan can't have his RM18 B project

Update, 8.15pm: TM gets Letter of Award from Govt on HSBB project, an announcement to the Bursa here:

We refer to our announcement dated 15 May 2008 [Reference No. TM-080515-63438] in relation to the abovementioned matter.

Announcement Details :

Telekom Malaysia Berhad (“TM”) is pleased to announce the acceptance of a Letter of Award (“LoA”) from the Government of Malaysia (“the Government”) for the implementation of the High Speed Broadband (“HSBB”) Project in collaboration with the Government to deploy the access, domestic core and international networks to deliver an end-to-end HSBB infrastructure. The total cost of the HSBB investment for a period of ten (10) years is RM11.31 billion whereby the Government will be investing RM2.4 billion and the remaining RM8.91 billion from TM.

With the acceptance of the LoA by TM, the parties will enter into a formal agreement (“HSBB Agreement”) based on mutually agreed terms and conditions in due course. Further details and relevant information would be announced upon the execution of the HSBB Agreement between the Government and TM.

None of the Directors or major shareholders or persons connected to the Directors or major shareholders of the Company has any direct or indirect interest in the HSBB Project.

This announcement is dated 2 September 2008.

Original article:
101 reasons why
the Pahang Menteri Besar's party should not be awarded the High Speed Broadband project. But the fact that he did not even have a comprehensive proposal to back his RM18 billion plan should be enough to compel Mohd Najib Abd Razak, the Deputy Prime and chairman of the Cabinet Committee on Broadband, to stick to the original plan (with Telekom Malaysia).

Adnan is closely linked to the Pahang royalty, and his involvement in the RM18 billion project may also implicate the palace. This is especially so given the fact that the RM18 billion bid came just days before the Government was supposed to sign an HSBB deal with TM. Some said Adnan was fronting Najib. This, the locals can tell you, is absurb. Others said the additional billions would come in handy to stop some BN MPs from defecting to PKR, and to ensure that there's enough to go around to keep the Umno President in power during the Umno general assembly in December.

When you act suspiciously, people become suspicious. Many felt that Adnan's party should not even have been entertained. And they are right. After presenting a "concept paper" to the Cabinet Committee on Broadband, it was clear that Adnan and the parties linked to the Pahang State Government did not have what it would take to carry out the HSBB project. And RM18 Billion don't fall from the sky.

We can expect an announcement by the Government to say they are going back to the Original Plan. A weird detour, that. I hope foreign investors take note that in Malaysia, it is no longer Boleh all the time for the cronies. I hope the Cabinet Committee on Broadband has made sure of that.

Read my previous postings:
The 18 Billion Man - 14/8/08
Will Adnan be given the RM18 B project? - 21/8/08


  1. Anonymous3:40 pm

    101 reasons why not....but all it needs is just one reason to give the project to him on a silver platter.
    price is no consideration, afterall there are more inflated projects by percentage terms given to the cronies. How fast have we forgotten about throwing RM4.7 billion into the drains in the Port Klang Free Trade Zone.


  2. i did not read paper.. i did not watch TV.. i didnot care about who awarded who.. and how the money goes about.. what i care is the HSSB..

    so i juz wondering if u could share with me the main reason u saying that the concept paper presented by Adnan did not have any credibility in running the HSSB?

    mind sharing ur finding to my personal mail?

  3. Anonymous4:04 pm

    seriously if the govt really wants to do something good for the country and the benefit to all citizens, then open the tender to everyone. why wanna involve sister, brother, grandma, relatives, auntie and all that??

    look at singapore's hsbb.. it puts msia to shame... when i say shame it is utter shame - that kind of shame where u can just bury ur head in the ground like an ostrich..

    why these people just dont get it?? people are running at 10MBps but domestic users of streamyx have to content with 1MBps with a high and ridiculous price...

  4. Anonymous4:15 pm

    UMNO ingat itu bapak dia punya duit ke?? suka2 nak kasi pada siapa saja?? memang betul datuk aku cakap kalau duit banyak macam mana pun tetapi mempunyai otak lembu... dengan sekejap masa lagi duit semua akan habis.

    Dia orang ingat ini duit "daun pisang" ke? siol betul!


  5. Anonymous4:30 pm


    moral of the story is, in order for najib to remain in "politik" he has to find another source of "wang" to keep him afloat until december.

    Rascal fler!

  6. And why MSM decides to keep this issue low profile? Seemed syndicated.

  7. Anonymous4:49 pm

    with only one signature and both eyes closed, he'll make one billion, the rest will go to BABA.


  8. Anonymous4:53 pm

    Many of those who worshiped Dr Mahathir cannot understand why Malaysians blame Mahathir for the woes of the country. I have compiled excerpts of reports which were published in the media in past years to refresh the memories of Malaysians, as to why many Malaysians feel that Mahathir did more bad than good for the country in his 22 years.

    These 22 fiascos were published in the form of questions directed to Mahathir:

    (1) Bakun Dam
    Why did your administration take over the construction of the dam by bailing out Ekran Bhd by almost RM200 million for 'work done'?

    (2) Bank Bumiputra
    Why did you allow the mismanagement of Bank Bumiputra, to the extent that it had to be bailed out three times, costing the country a total of RM3 billion? Again, by dipping into Petronas funds?

    (3) Clean government
    You came to power in 1981 and introduced the slogan Bersih, Cekap dan Amanah (Clean, Efficient and Trustworthy). Did you ensure that chief ministers and ministers not have incomes beyond their legal means? Did you make the Anti Corruption Agency more effective and independent? How many big guns were prosecuted for corruption offences during your tenure? What did you do to further that? What happened to Bersih, Cekap dan Amanah?

    (4) Education
    Why did you allow our national school system, which is the ideal place to develop ties among young Malaysians, to become so divisive?

    (5) Forex losses
    Why did your administration dabble in speculation in the international money market which ultimately cost Bank Negara almost RM9.3 billion in losses?

    (6) Heavy industries
    Why did you push into heavy industries such as cement and steel in the 1980s, ignoring studies which suggested developing natural resource-based industries instead? They caused billions of ringgit in losses and major problems.

    (7) Immigration
    Why did you allow hordes of people to migrate, mainly from Indonesia, in such an unregulated way that there are as many or more illegal immigrants than legal ones now, accounting for some three million or more people?

    (8) Indah Water Konsortium
    Could you explain the RM1.4 billion soft loan to Indah Water Konsortium which clearly has irrecoverable losses?

    (9) InventQjaya
    What was the basis of inviting Libyan-American Sadeq Mustaffa to Malaysia to set up InventQjaya Sdn Bhd and to also give him a grant of RM440 million?

    (10) Judiciary
    What was your motive to take action in 1988 to remove the then Lord President and several Supreme Court judges from their positions under allegations of judicial misconduct, a move which was heavily criticised by the Bar Council and other bodies?

    (11) Konsortium Perkapalan Berhad
    Why did you rescue Konsortium Perkapalan Berhad (then owned by your son Mirzan) and which had debts of RM1.7 billion using funds from Petronas?

    (12) LRT
    Why did you bail out the light rail transit operators Projek Usahasama Transit Ringan Automatik Sdn Bhd (Putra) which belonged to Renong, and Sistem Transit Aliran Ringan Sdn Bhd (Star) using almost RM600 million from the EPF, which still resulted in EPF having to write off RM135 million with a share loss of RM96 million?

    (13) Malaysia Airlines
    Why did your government sell MAS (private sale) to Tajuddin Ramli who had no knowledge whatsoever about running an airline? Why did your government then later bail out Tajuddin Ramli by paying RM8 per share, when the shares were trading at only RM3.60 in the open market, costing close to RM1 billion of the publics money.

    (14) North-South Expressway
    Why did your administration award the North South Expressway concession to UEM (which then formed Plus) and then provide them with a loan of RM1.6 billion which was half of the tender price of RM3.2 billion?

    (15) Operasi Lallang
    Why did you have to resort to this move in October 1987, when you close down four newspapers, used the Internal Security Act (ISA) to detain over 100 people and cause a wave of fear throughout the country?

    (16) Perwaja Steel
    Why did your administration allow Perwaja Steel to be mismanaged resulting in RM2.9 million of the publics money being squandered?

    (17) Press freedom
    Your criticism of the present government got plenty of coverage in the local media whereas during your time, criticisms against you by two former prime ministers were muted in the mainstream newspapers. Editors in Umno-linked newspapers too, were removed for not toeing the line. What did you do to advance the cause of responsible press freedom?

    (18) Privatisation
    What was the justification of privatising the government medical stores to Southern Task Sdn Bhd and the resulting increase in the prices of medicines?

    Why did you allow privatisation to take place in such a manner that the most profitable parts of government operations were sold away like Pos Malaysia, Telekom Malaysia and Tenaga Nasional?

    Tolled roads had guaranteed toll rate increases and compensations in the event traffic projections were not met. Independent power producers (IPPs) had contracts that guaranteed them profits at the expense of Tenaga Nasional.

    (19) Proton
    You went ahead with the national car project in 1983 despite a number of experts disagreeing with you, especially with respect to the lack of economies of scale.

    Isn't it true that Proton's profits over the past 20 years came from the vastly higher prices that the Malaysian public has had to pay to subsidise Proton, resulting in considerable hardship for Malaysians who need cars because of the poor public transport system?

    Why was it necessary for Proton to buy a stake in a failed Italian motorcycle manufacturer when it could not even produce cars competitively?

    (20) PSC Industries Berhad
    Why did your administration in 1998 award a RM24.3 billion contract to PSC Industries Berhad, together with an advance of more than RM2.5 billion to build naval patrol boats?

    (21) Putrajaya
    What is the justification for spending RM20 billion on a grandiose government city at a time when office space was available in Kuala Lumpur?

    (22) Time Dotcom Bhd
    Did you not force the Employees Provident Fund (EPF) to buy 81.6 million of the unsubscribed public portion of the initial public offering (IPO) of Time Dotcom Bhd at RM3.30 per share when the shares were trading at only between RM1.95 and RM2.10 and in the process incurring an instant loss of RM100 million?

    Why did your administration bail out Time Dotcom Bhd which was saddled with a RM5 billion debt?

    Why did your government use RM904 million from Kumpulan Wang Amanah Pencen to buy up 273.9 million of unwanted Time Dotcom Bhd shares incurring an instant loss of RM280 million?

    There you are - 22 fiascos in 22 years.

    The bad news is that there are actually more than 22. Remember the APs, Maminco, Renong and many more. Those who remember, please add on to this list.

  9. Anonymous5:39 pm

    GIGO.....we will get GIGO if Adnan fella gets the deal lah!


  10. Anonymous5:49 pm

    dear rocky
    what happened to the glc top men salaries?do they deserved that much?


  11. Anonymous5:58 pm

    Do U honestly think that TM is the best candidate for this broadband internet project?

    TM & Adnan's consortium are two sides of the same coin!

    Both also tak bolih!


  12. Ha it to do with honour among thieves? I wonder!!

    After all I guess even with thieves, once in a while, there is honour! Their kind of honour of course.

  13. Anonymous6:50 pm

    (heha) ;
    aiyah...billions is NOTHING lah...
    soon will be trillions lah !!
    LOOK : 4.99 billions was used on 'maths/sains in inggeris' & so far ( AG reports) RM10 juta of
    materials/teaching aid (LCD projectors, pc,laptops, printers &
    .....) terHILANG = LOST LOST LOST !
    kerisbugger, show cause why you should be fxxxxx !?

  14. Heard that an entity will bypass melaysia n go to Johor south island for high speed Internet connection cause someone in baboo shoot does not like the idea melayusia will then have to buy international data traffic fr this island so Gomen has to come up clean on this issue. Rocky u need to dig the other side of the story

  15. Anonymous9:36 pm

    Call me an ultra-sceptic, but would this have happened without Permatang Pauh?

  16. Anonymous10:09 pm

    Sorry off-topic but just found this here



    Tuesday, September 2, 2008

    Kini masuk hari ketiga tersebar luasnya berita mengenai anak lelaki PM, Kamaluddin Abdullah, diberitakan ditahan di sebuah lapanganterbang di Amerika Syarikat.

    Adakah kisah ini benar? Adakah benar Kamaluddin dikatakan ditahan kerana membawa wang tunai melebihi had yang diizinkan oleh kerajaan Amerika Syarikat? Adakah benar Kamaluddin juga ditahan kerana membawa senjata api?

    Sehingga kini masih belum dapat dipastikan sama ada Kamaluddin ke Amerika Syarikat menggunakan jet peribadinya atau menggunakan penerbangan komersil. – http://politica-net.blogspot.com/

  17. Anonymous11:04 pm

    This happy outcome must have been due to the fact that the public/rakyat was alerted to the deal (thanks to Rocky's Bru and others) and so people were watching developments very carefully and with heightened suspicion.

    Thus, this makes "funny" - definitely not the HaHa kind of funny - moves difficult to carry out. Still, never forget that crooked, devious minds will find a way around most obstacles.

    Anyway, people should be allowed to imagine that furtive hands creeping insidiously towards the cash-box were quickly withdrawn. Now, that's funny - hahaha!

    Standup Comic

  18. Anonymous11:45 pm

    (heha): inggeris is NOT my mother tongue but i guess it's slightly better than those in UTHO !!
    please refer to an advertorial in NST on 23/8 & an apology from NST
    (on line) on the 26th, tq.

  19. Rocky,
    Allow me to hijack this thread.
    Dear Ruyom,
    1) I see u have most of your figure stack in your posting but I ask you this, If I have a restaurant and the cook spit in your food because u complaint a lot. Is it my fault for getting him to work with me? Usually during interview, candidate spell out extraordinary goodness in them to get 'em seat. So I fired the cook, apologize to you and offer something to repay the bad deed that I did not do but do I have to close down the shop?
    Well that my respond to Bank Bumiputera, Clean government, InventQjaya, Konsortium Perkapalan Berhad (really aa?), LRT, MAS, Perwaja Steel and privatisation.

    2) NSE(PLUS) is a must to push our economic growth, its a very big project and big project do means big money but also come with big risk. I'm not sure if there's a company that manage to fork out that big sum of money to start up the work. Its like big brother loan some money to his little brother so that he can buy a motorcycle so that he can go to work. A start up capital. U expect fresh grad can have money in his start of life? If u feel this project is bad. well, don't used it. When you oppose, you can support them.
    3)Putrajaya, U working in KL dude? Imagine if Putrajaya has not been built, Tonnes of car parading in the street to reach KL, the gov worker, the non-gov.. well, now I see that some car moving up to KL some moving down south to Putrajaya/Cyberjaya. KL is too crowded man, we need to ease the crowdiness, move the government office away. Built their house there, save time and travelling cost for them. More spending money, good economic growth. I blame Mahathir for building Putrajaya, because of it, everybody fighting to get a seat overthere. Even the one who oppose the building of it.
    3) Proton, yups, big waste, if only we don't built car. We just built other company car. So that all the profit and margin goes to foreign company instead of in Malaysia to boost GDP. Forget also, the people that working with Proton, stupid them they should be working with foreign company instead so that they can become worker until the end of their life and can't have added value experiences in the resume.
    4) Failed Italian motorcycle? Wow, u should be really pissing off some of the bikers in the world. and btw, you know who bought that 'failed company'? Those stupid BMW and stupid Harley Davidson, clearly these two doesn't know anything about motorcycle.
    5) Increase price in medicine, ermm... Im not sure you talking about Panadol or ermm... I guess RM1 paid at the government clinic is too much to bear.
    6 ) Telekom and TNB and POS, well. last time I used to send mail and after 3-4 days my mail arrived. I blame privatization of POS, because they can only send the next day, I need them fast like the email. Telekom, why should you private this company, now I have to pay RM68 to talk puas-puas over land line!! TNB? When was our last blackout? Last nite? U paid ur bill? oh I blame privatization on this, because they work so efficiently to cut my power when I didn't pay as good as they responded to real blackout issue in my neighborhood.
    7 ) LRT? Agreed. no need bail. just close down. Let the millions of commuters walk to office. Seriously dude, where u work?
    8) judiciary? no comment, too much comment. Go google.
    9) Operasi Lallang, yeah dude. I was like 6 or 7 at that time and I does trembling my guts hearing about it man. Frankly, I did not realize it happening at all. I just read about it like 2-3 years back. And I guess if that really happen, it's the right way. I blame it also, because I wouldn't have the luxury of living rite now, well not much of luxury during the last 4-5 years.
    10) Damn, IWK, shut down this traphole, We don need you to clean our water. Dude? How old are you? I'm not that old but you know how they manage your waste in the old day?
    11) Damn immigration, Don come here and build our tall buidling or house or give us cheap labour, we can pay high price of houses. We don need cheap labour. Ops.. illegal immig.
    12) Heavy industries such as cement and steel. ermm... you still living in wood house? U so lucky, wood is so expensive nowadays. Cement is at affordable price while steel price is higher and higher in the world market. I blame Mahathir to no listening to study by the westerner that we should be weaving leaves as our roof.
    13) Forex losses. Yups I blame Mahathir for making the world forex player make losses with the pegging of Ringgit against dollar which cause billion of profit thru export of oil palm and such. U make me can't afford an LV because the exchange rate of RM3.80 per USD is too high for me to purchase an import product.
    14) education system? ermm... yeah.. why do we have too many school system, SRKJ(C), SRJK(T) SRK.. oh well, the people wanted it. Working fine tho. I blame Mahathir for not enforcing 1 school system like in Indonesia. Where Chinese can't even have a chinese name.
    15) Bakun Dam, will it be build? or I has completed? I donno, I did not read newspaper.
    16) Press freedom... how much freedom do you want? Can I know you so I can put up a news condemning you tomorrow? So you can start putting up a news condemning me back and on and on. Oh well. Press Freedom. Who need peaceful live when we have Press Freedom.
    17) PSC Naval.. Donno much about it. Why do the advance money come? Deposit? Down payment? (I'm going to book a Honda Jazz tomorrow and I'm not going to pay deposit money. Why should I pay in advance?)

    Oh no.. too many fiasco.. and its already 12. I gotta get some sleep. the LRT has been cancel and I cant used the NSE to cross to KL and all government officer now working in KL back. Maybe I get out from my house about 5 ish. I blame Mahathir for having all these fiasco and broadband internet connection. I blame him for the Cyberjaya and MSC, now I stuck with job in software house.
    Well rocky, careful what u wish for bro.. one of it has been fulfilled. Now u wish for me to have a tax fee RM1mil ar bro. So I can start my own software house. oh I blame Mahathir for making me a competitive Malay that has an ambition to succeed and know how to speak and write english. Shame on you Mahathir.

  20. woahh.. i forgot to add. I'm not Mahathir worshipper.

    There's no God but Allah.

  21. Anonymous12:25 am

    Bro, i would have to disagree with you on this one. TM getting this project means that the RAKYAT would have to suffer the same poor broadband quality on taxpayer's money. If HSBT got the project it would be privately funded and supported by Japanese (proven) technology.

    Now we all have to suffer more crony-laden internet service. Woe is us.

  22. Anonymous12:48 am

    What happened to the Smart School project given to Telekom Malaysia more than a decade ago ... Wali Kota

  23. Anonymous8:45 am

    Great work, Rocky.

    Without your exposure 18 billion RM man might have gotten his deal.


  24. The blogging community never fail to amaze me. You find lots of interesting characters and weirdos. Beside those constructive comments there are people who talk rubbish and doesn't make sense at all.

    Just like any normal routines, you still try very hard to make some sense in the things that happens around you.

  25. Anonymous12:38 pm

    wooosh, nice car!but i still prefer CheDet time and model, still going strong.


  26. Anonymous1:55 pm

    Rocky, How much did u get for championing TM?

    Mat Spy

  27. Anonymous11:11 pm

    yes lah, what are the capability and strength to do this job. Just because the DPM from Pahang and the royal needs money, the pressure for this project. Please develop the state first since every year Pahang short of CASH!!! And have to depend on Federal Government. Please manage Pahang first

    zamri, sunway

  28. Anonymous12:10 am


    saya nak tahu firma guaman mana yang mengendalikan penyediaan perjanjian TM bagi broadband tu?


  29. Anonymous1:11 am

    Broadband is always a contentious issue - a chicken and egg situation. The amount of fibre going along Malaysia is tremendous, but utilisation is pretty crap, due to last mile issues. Now, I wonder what the project entails, because we don't need any more fibers going around, unless its to my house (or people's house!)


  30. Anonymous7:57 pm

    Problem occus when everybody including policy makers and decision makers are also involve in business. So money will just be circulated among themselves. Allocation in 8th Malaysia Plan is actually plan to enrich thecronies and politicians. Doom Malaysia!

  31. http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_282849.html

    Home > Breaking News > Singapore > Story

    Sep 26, 2008

    OpenNet wins broadband bid

    The consortium comprises Axia NetMedia, Singapore Telecommunications, Singapore Press Holdings, and SP Telecommunications.

    By Chua Hian Hou

    The consortium, OpenNet, will operate an islandwide network offering every home and office Internet speeds of up to 1Gbps completed by 2010. -- ST PHOTO: NG SOR LUAN

    A CONSORTIUM comprising Canada's Axia NetMedia, SingTel, Singapore Press Holdings and SP Telecommunications, has won a hotly-contested bid to build Singapore's next-generation high-speed broadband network.
    The consortium, OpenNet, will design and build an islandwide network offering 95 per cent of homes and offices Internet speeds of up to 1Gbps by June 2012.

    At speeds 10 times faster than what is available today, the network will make it possible to roll out new services that require ultra-high-speeds like virtual-reality 3D games or high-definition video-conferencing services.

    Users in large households can also enjoy a smoother Internet access with the enlarged pipe.

    OpenNet's win over rival consortium Infinity, comprising StarHub, MobileOne and the Qatar Investment Authority, was announced on Friday by Minister for Information, Communications and the Arts Dr Lee Boon Yang.

    'For Singapore to remain competitive in the globalised and digital economy, we need to make careful and timely investments in our key economic infrastructure, including our infocomm infrastructure,? said Dr Lee.

    Singapore's government will fund as much as S$750 million for the OpenNet group to build the fiber-optic network.

    OpenNet will offer wholesale prices of $15 a month for home users and $50 a month for commercial users, said a statement from the consortium.

    During the construction and commissioning phase, OpenNet estimates its costs to be about S$1 billion. The group expects to spend S$1 billion to S$2 billion over the 25-year licence period for access to infrastructure.

    OpenNet forecasts its shareholder investment requirements to be in the range of S$120 million to S$160 million, which will be required during the construction and commissioning phase.

    Mr Art Price, Chairman and CEO, Axia NetMedia, said, 'OpenNet's approach is future proof with no compromises from either the technology or business structure perspectives.'

    Mr Allen Lew, SingTel's CEO Singapore, said 'The compelling proposal is a result of the strengths of each consortium partner, such as SingTel's extensive high-quality network of ducts, technical expertise and our considerable experience in deploying fibre in Singapore.'

    Added Mr Alan Chan, CEO of SPH, 'OpenNet's proposal will help realise Singapore's vision of being a next generation city. The network paves the way for an advanced broadband infrastructure, supporting seamless connectivity which will boost Singapore?s competitiveness and attractiveness as a global business and infocomm hub.'

    SingTel and Axia each own 30 per cent of the venture, while Singapore Press has a 25 per cent stake and Singapore Power 15 per cent. Singapore Press, the city's largest newspaper publisher, owns shares of MobileOne Ltd. and StarHub, which submitted the rival bid.

    Ten companies including Alcatel-Lucent, BT Group Plc, Nokia Siemens Networks and NTT West were short-listed to bid for the so-called Next Generation National Broadband Network.

    There were 4.2 million high-speed Internet subscribers at the end of Jul, according to the regulator.

    Singapore requires separate companies to build and operate the infrastructure. Singapore will pay as much as S$250 million to the company chosen to operate the network.

    Singapore has introduced an Intelligent Nation 2015 program to help triple technology-related exports to S$60 billion and create 80,000 jobs. The city also started offering free wireless Internet access for three years starting in Dec 2006.


    Singapore's Next Generation National Broadband Network To Be Nationwide by 2012

    Singapore, 26 September 2008 | For Immediate Release

    Government Selects OpenNet’s Proposal To Build Passive Infrastructure

    By 2012, homes and offices nationwide will be connected to Singapore’s ultra high-speed and pervasive Next Generation National Broadband Network (Next Gen NBN). In two years’ time, 60 per cent of homes and offices can already expect to have access to this new, pervasive, all-fibre network.

    At a media conference this afternoon, Minister for Information, Communications and the Arts (MICA), Dr Lee Boon Yang, said, “I am pleased to announce that the Government has decided to select the proposal from OpenNet Consortium to design, build and operate the passive infrastructure for the Next Gen NBN.”

    OpenNet’s proposal offers attractive wholesale prices that can stimulate a vibrant and competitive retail market. Users can look forward to innovative services from as early as 2010. OpenNet will be making use of existing ducts and other underlying infrastructure, thereby minimising disruption to the public and enabling the network to reach homes and buildings nationwide by 2012.

    OpenNet is led by Axia NetMedia Corporation with Singapore Telecommunications Ltd, Singapore Press Holdings Ltd and SP Telecommunications Pte Ltd as the other members of the consortium. The NetCo Request-for-Proposal (RFP) was launched on 11 December 2007 and closed on 5 May 2008 with proposals from two consortia, namely Infinity and OpenNet.

    OpenNet’s Proposal

    As the selected NetCo, OpenNet will design, build and operate the passive infrastructure of the Next Gen NBN that will be capable of delivering speeds of up to 1 Gbps and beyond. The Government will provide a grant of up to S$750 million to the NetCo to support the network rollout.

    OpenNet will offer attractive wholesale prices of S$15 per month per residential fibre connection and S$50 per month per non-residential fibre connection, to the Operating Companies or OpCos. Such wholesale prices are expected to bring about competitive retail prices in the ultra-high speed broadband market.

    To encourage premise owners to connect their homes and businesses to the network, OpenNet is required to waive installation charges for home and building owners when the network first reaches their premises.

    Under a Universal Service Obligation, which will take effect from 2013, OpenNet will also fulfil all subsequent requests to install fibre termination points in homes, offices and buildings.

    In its proposal, OpenNet will deploy and own all the fibre optic cables and offer wholesale dark fibre services to downstream operators on a non-discriminatory basis as set out in the RFP. OpenNet will make use of relevant existing underlying passive infrastructure assets, such as ducts, manholes and exchanges, belonging to its partner, SingTel, to facilitate the deployment of its fibre network. As part of OpenNet’s proposal, SingTel has committed to transfer these underlying assets to a neutral party within 24 months of the NetCo’s Contractual and Financial Close, or CFC in short. The CFC will take place within seven months of today’s award. The neutral party, called the Asset Company or AssetCo, will be an independent and separately managed company. It will be owned by a registered business trust or will be structured in a similar manner to be approved by IDA.

    SingTel, as a member of OpenNet, has also committed to reduce its stake in this AssetCo within five years of the CFC and seek the relevant shareholders’ and regulatory approvals, where required. As part of the successful close of the RFP, SingTel is also required to submit to IDA for approval, a detailed implementation plan on the formation of the AssetCo and subsequent partial divestment of its relevant underlying assets.

    Dr Lee mentioned at the December 2007 launch of the NetCo RFP that the Government views Effective Open Access through a structural and/or operational separation as key to the achievement of a vibrant and competitive next generation broadband market. The RFP has achieved this outcome for the Next Gen NBN. Nevertheless, Government will continue to consider the need for legislation to entrench Effective Open Access in this market over the long term.

    At today’s media briefing, Dr Lee also said: “Today, we have arrived at a significant milestone for Singapore. The Next Gen NBN propels Singapore to the forefront of broadband development internationally. Soon, Singaporeans will be able to enjoy a richer broadband experience with more choices and at affordable prices. Businesses, large and small, will find it cheaper and easier to access ultra high-speed broadband, and be able to use infocomm more extensively to boost productivity and competitiveness. The Next Gen NBN will be a strategic enabler that will transform the way we work, live, learn and play.

    To sum up, Singaporeans can look forward to the ABC of Next Gen NBN: Attractive prices for ultra-high-speed broadband; Benefits from innovative services, Coverage nationwide with minimal disruption during fast roll-out.”

    Next Steps

    With the selection of the NetCo, OpenNet is expected to work closely with the Infocomm Development Authority of Singapore to provide the necessary network information for Next Gen NBN Operating Company (OpCo) RFP bidders to finalise their bid submissions, which are expected to be due on 14 November 2008.


    Related Resources:

    Annex - Glossary of Terms
    Briefing Slides
    Related Link:

    Opening Remarks By Dr Lee Boon Yang, Minister For Information, Communications & The Arts, At The Media Briefing For The Award Of Next Generation National Broadband Network Netco Request-For-Proposal
    About Infocomm Development Authority of Singapore

    The Infocomm Development Authority of Singapore (IDA) is committed to growing Singapore into a dynamic global infocomm hub. IDA uses an integrated approach to developing infocommunications in Singapore. This involves nurturing a competitive telecoms market as well as a conducive business environment with programmes and schemes for both local and international companies. For more news and information, visit www.ida.gov.sg.

    For media clarification, please contact:

    HO Ka Wei (Mr)
    Manager, Corporate and Marketing Communication
    Infocomm Development Authority of Singapore
    Tel: +65 6211 0273
    Fax: +65 6211 2227
    E-mail: ho_ka_wei@ida.gov.sg

    Dawn LIM (Ms)
    Manager, Corporate and Marketing Communication
    Infocomm Development Authority of Singapore
    Tel: +65 6211 0514
    Fax: +65 6211 2227
    E-mail: dawn_lim@ida.gov.sg