Telco bills to be made clearer for consumers in new code proposed by IMDA

SINGAPORE — Consumers may soon be able to make better sense of their telco bills.

The Infocomm Media Development Authority (IMDA), which regulates the telecommunications and media markets in Singapore, proposed a converged code for both markets on Wednesday (Feb 20).

Among the proposals in the 125-page consultation paper put up on its website is one where service providers may need to make bills clearer and more detailed.  

All telco and pay-TV providers will also need to summarise the key terms and conditions of contracts to consumers when they subscribe for services.

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PROPOSALS TO ENHANCE PROTECTION FOR CONSUMERS

1. Minimum billing information

   • The information provided in bills issued differ across service providers.

   • To make bills clearer for consumers, the level of details provided to consumers will be standardised. For example, they must include the breakdown of charges for the various services, such as ad-hoc and value-added services.

2. Summary of key terms and conditions in subscription contracts

   • At the moment, only Singtel, StarHub and M1 are required to summarise key terms and conditions when consumers sign up for a new contract.

   • With the proposed change, all telecommunications and pay-TV service providers must provide a summary of terms and conditions to consumers. This will help consumers to easily make sense of their contract terms.

3. Detrimental mid-contract changes will not be allowed for telecom services

   • For now, only Singtel, StarHub and M1 are not allowed to make any disadvantageous mid-term contract changes such as raising prices or reducing service features.

   • Under IMDA’s proposals, all telecommunication licensees will be barred from making detrimental mid-contract changes.

   • The IMDA has also proposed keeping the requirement that allows pay-TV consumers to terminate their contracts if there are changes made to disadvantage them during the contract term. For example, a consumer may terminate his or her plan if there is a significant reduction in the total number of channels. There will be no penalty for the consumer if he or she terminates the plan in such a situation.

TACKLING THE SERVICE-BUNDLING TREND

The IMDA also wants to address the potential impact on competition arising from bundling practices.

For instance, a company may offer fixed-line telephony, broadband and pay-TV services through a single package.

Such practices are relatively common today and are expected to continue, said the IMDA.

While bundling does not typically result in anti-competitive effects, it may be considered as an abuse of a dominant position where it forecloses a dominant player’s competitors from markets.

Under the code, unreasonable bundling will be considered an abuse of a dominant position.

SIMPLIFIED REGULATIONS FOR TELCOS

The IMDA will make regulations simpler and less burdensome for telcos. For instance, telecommunication licensees considered to be dominant in the market will no longer have to file tariff for retail services.

With the roll-out of the nationwide fibre network, they will also no longer have to provide services which have become less relevant, such as facilitating interconnection on copper-based networks to other licensees.

The public may provide feedback to the IMDA by noon on April 17.