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).

This is the timeline specified in the winning proposal by the OpenNet Consortium, which has been selected by the Infocomm Development Authority of Singapore (IDA) to design, build and operate the passive infrastructure for the Next Gen NBN.

Dr Lee: The Next Gen NBN propels Singapore to the forefront of broadband development internationally.

Dr Lee Boon Yang, Minister For Information, Communications & The Arts, described the award of the Next Gen NBN Netco Request-for-Proposal as "a significant milestone" for Singapore. "The Next Gen NBN propels Singapore to the forefront of broadband development internationally," he said.

OpenNet is led by Axia NetMedia with Singapore Telecommunications, Singapore Press Holdings and SP Telecommunications as the other members of the consortium. Mr Art Price, Chairman and Chief Executive Officer of Axia NetMedia, said, "I believe that Singapore will be the showcase for how compelling the no-conflict open access fibre-to-the-premise solution can be for end-users in metropolitan communities.

The NetCo Request-for-Proposal (RFP) was launched on 11 December 2007 and closed on 5 May 2008 with proposals from two consortia - Infinity and OpenNet.

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 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.

According to 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 (CFC). The CFC will take place within seven months of the NetCo RFP 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.

Commenting on the AssetCo, SingTel's Chief Executive Officer, Mr Allen Lew, said, "In an open access environment envisaged under the iN2015 plan, passive network assets like ducts and manholes will no longer be a telco's competitive advantage as every service provider has equal access to the infrastructure. Therefore, SingTel will view the AssetCo as an opportunity to unlock value. The capital released will be deployed to other businesses and for capital management initiatives. SingTel's focus on its business will also shift from network to customer-centric services to drive its customer and revenue growth."

At the December 2007 launch of the NetCo RFP, Dr Lee said 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," he said.

With the selection of the NetCo, OpenNet is expected to work closely with IDA 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.

• Opening remarks by Dr Lee Boon Yang, Minister For Information, Communications & The Arts, at the media briefing for the award of the Next Gen NBN Netco RFP.