Proposed changes grant IDA power to impose conditions when telcos appoint CEOs, board members
TODAY file photo
SINGAPORE — The Government is seeking to empower the Infocomm Development Authority of Singapore (IDA) such that it can impose certain conditions when telcos appoint chief executive officers and board members, as part of efforts to guard against moves that could stifle competition in the industry.
This is among the amendments to the Telecommunications Act proposed by the Ministry of Communications and Information (MCI), which were put up for public consultation on Friday (Aug 5).
The MCI said the aim is to “govern the control of designated telecommunication licensees arising from changes in their ownership interests”.
“This is necessary as it enables IDA to guard against mergers and acquisitions that could substantially reduce competition, raise regulatory and competition concerns, and may not be in the public interest,” the ministry said in response to queries.
The IDA has been seeking to raise the level of competition in the telco sector. In an upcoming spectrum allocation exercise for telcos, it set lower starting bid price for aspiring new entrants for 60MHz of spectrum up for auction.
Under the proposed amendment, the IDA would be able to impose conditions such as specifying the period of appointment for CEO and board appointments, when granting approvals.
It can also require the designated telecommunication licensee or the person appointed to take actions to address any competition, public interest or other concerns, said the MCI.
Likewise, for mergers and acquisitions, the IDA can grant approvals with conditions such as requiring the acquirer or associates — or both — to take certain actions to address similar concerns.
The telcos did not comment on the proposed amendment when queried. Mr Clement Teo, principal analyst at market research firm Ovum, expressed surprise at the move. “It sounds more interventionist than necessary because the telcos are private entities beholden to their own shareholders,” he said.
