Telecommunications plays an important role within ICT development. The success of a country's ICT policies depend on how advanced its telecommunications infrastructure is designed.

It is important to begin this section with an overview of the current telecommunications infrastructure.

* All statistics as of 2005
* Source: IDA Singapore: Telecoms Services Statistics for February 2005 [10]

History

In early 2000, Singapore decided that it would open the telecommunications market completely due the dramatic liberalization of the industry. The 49% cap on foreign ownership of public telecommunications companies was lifted.[11] The reason why Singapore decided on such a drastic action can be summarized by the following quote:

"To become the region's leading communications and information technology hub, Singapore needs a globally competitive telecommunications market where many service providers offer a range of innovative, high quality and cost effective services. The earlier introduction of full market competition will strengthen our competitiveness and help position Singapore as the choice location in the region for key infocomm players." [12]

- Mr Yeo Cheow Tong, Minister for Communications and Information Technology

As a result, AT&T, MCI WorldCom, and Deutsche Telecom were among the 37 companies awarded licenses to set up telecommunications operations in Singapore . The licenses granted these companies the opportunity to offer a full range of services, from provision of network capacity to international calling cards and Internet exchange services. Dubbed by the industry as Singapore 's "big bang" in telecommunications, the liberalization also saw an addition of about 20 Internet access service providers. Singapore 's “big Bang” resulted in the development of an advanced telecommunication infrastructure with many players providing services at competitive prices.

Current Policies

In 1992, Singapore created a telecommunications regulatory body called the Telecommunications Authority of Singapore. This organization later merged with the National Computer Board to become the Info-Communications Development Authority of Singapore (IDA). The IDA develops, promotes and regulates info-communications in Singapore , with the goal of establishing the country as a leading infocomm hub in Asia .

In order to develop infocomm into a key engine for economic growth, IDA works to build an advanced infocomm infrastructure and develop new technology and product capabilities. IDA also facilitates global partnerships and free trade agreements that allow local businesses to grow and expand internationally. IDA has played a pivotal role in establishing free trade agreements between Singapore and the USA , Japan , New Zealand , Australia , EFTA (European Free Trade Association comprising Iceland , Norway , Liechtenstein & Switzerland ) and the World Trade Organization. The IDA Standards Team plays a key role in fostering the industry's participation in local and international ICT standards forums. [13]

Singapore ONE is a national initiative by the government, as well as private sector companies, to deliver a nationwide broadband network to homes, businesses and schools throughout Singapore . The government has invested $300 million into the infrastructure as well as other programs to facilitate the initiative. This program is one of the reasons why Singapore is a global leader in broadband rollout. [14]

The telecommunications infrastructure in Singapore is very advanced, mainly due to the government's decision to open the market in 2000. Total revenue of Singapore 's infocomm industry for 2004 was $34.77 billion. [15] The open market policy has led to a competitive market with many service providers and competitive prices. This is why the penetration rates for internet, mobile phones, and broadband are so high. Singapore correctly assumed that an advanced telecommunications market is needed to build a successful ICT network.

[10] IDA Singapore: Telecom Services Statistics for February 2005

[11] Singapore to Fling Telecom Market Wide Open

[12] IDA Singapore: Singapore's Telecom Liberalization Draws ATT, MCI WorldCom and other Global Players

[13] IDA Singapore

[14] IDA Singapore: Evolution of Singapore One

[15] IDA Singapore