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Enron Mail |
David - well done on the legislative change regarding bandwidth. mcs
David Merrill@ENRON_DEVELOPMENT 13/07/2000 09:39 To: donald_lassere@enron.net cc: james_row@enron.net, Nicole Palczer@ENRON COMMUNICATIONS, Mark Schroeder@ECT, Scott Bolton@ENRON COMMUNICATIONS, Colin Jackson@ECT, Sarah Goodpastor@ENRON COMMUNICATIONS Subject: Singapore Telecom Competition Code - Second Draft Bandwidth Trading The second draft of the Singapore competition code did add a reference to bandwidth trading, as we suggested. The drafters chose to put the reference in the section on the competition regime, as an example of agreements that do not restrict competition. Under Section 8 of the draft Code, which deals primarily with agreements between licensees that unreasonably restrict competition, there is a subsection dealing with "Exceptions for Agreements Necessary for Legitimate Collaborative Ventures". That section says: "Nothing [in this Code containing various prohibitions on restrictions of competition] ... prohibits agreements amongst Licensees that enter into an efficiency- enhancing integration of economic activity, where such agreement is no broader than necessary to achieve the pro-competitive benefit. For example, if competing licensees establish a joint purchasing or production venture, which is designed to increase total output and lower prices, the two parties could agree regarding the prices to be paid by the joint venture. Similarly, if competing Licensees were to establish a market for trading bandwidth, the Licensees could exclude competitors that did not agree to certain standardized terms, if those terms are necessary to allow for the efficient operation if the market." This seems to accomplish our purpose of referencing bandwidth trading in the code as a worthy concept in Singapore, and does not restrict bandwidth trading to the situation used in the example. Other changes in the second draft of the Code: - Definition of dominant carrier changed: Rather than depending on market power in a specific service, dominant definition of a carrier will relate to its control of last-mile facilities; ability to raise end-user prices and/or reduce output; and cost or difficulty of replicating facilities. Dominant carriers initially are still Singtel (wireline license only), SCV, and 1-Net. - Process for licensees to get interconnection agreements with Dominant Licensees accelerated and new entrants given options for interconnecting with Dominant Licensees even while negotiations ongoing so that DL's cannot stall new entrant operations. - Changes in unbundling requirements for dominant carriers. - Competition law regime strengthened. Schedule: The Code will be released Sept 1 and will become effective Sept 15. Dominant Licensees have to file Reference Interconnection Offers by Oct 15 and they will become effective Dec 15. DM
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