IDA issues new guidelines for telecoms contracts

New guidelines will ensure telecommunications companies offer consumers better deals.

The new guidelines will take effect on 1 March 2010.

With the new guidelines for new or renewed contracts for all fixed-line, mobile and broadband services, the maximum contract period for all such services will not exceed 24 months. Consumers who sign on to contracts longer than three months and who terminate their contracts before the end of their contract period will no longer have to pay fixed early termination charges, but will see these charges decrease over time on a month-by-month basis as they serve out their contract. In addition, operators offering these services must also ensure that these early termination charges do not include costs which they can avoid when the consumer terminates his service. Such costs could include back-end administrative and operational costs that the operator would not have to incur once the customer terminates the service.

The new guidelines were prompted by consumers’ concerns that contract periods might be becoming unduly long, and early termination charges excessively high, which together hinder them from terminating the service and switching between operators. These guidelines were subsequently developed after a public consultation and a review by the Infocomm Development Authority of Singapore (IDA).

IDA Deputy Chief Executive and Director-General (Telecoms and Post) Leong Keng Thai said, “We encourage the operators to compete with each other on price, quality and innovative services. In promoting effective competition in the telecoms sector, we have to lower barriers for consumers to terminate services legitimately and switch from one operator to another to enjoy more attractive or competitively-priced services. The new guidelines will give consumers greater flexibility and freedom to pick from the wide variety of plans in the fast-changing and dynamic telecoms market, unhindered by long contracts or excessive early termination fees.”

Join Singapore Business Review community

“On the other hand, the guidelines will continue to allow the operators freedom to innovate in designing new service plans to attract customers, including offering discounts and gifts. IDA would also like to encourage operators to provide no-frills service offerings that come with shorter contract terms, to cater to a segment of consumers who prefer such services. The consumer can look forward to more competition in telecommunication services.”

The guidelines seek to create more “reasonable and fair” industry practices, and strike a balance between protecting the interest of both consumers and providing operators with the freedom to innovate in designing service plans, while enabling them to seek early termination charges on a cost-recovery basis.

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

Vibrant Group wins suit against Blackgold Australia
The group shall be paid damages and fees by Blackgold Australia’s ex-CEO and ex-chairman.
Lorem Ipsum text in year 2025
Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old.
Lorem Ipsum is simply dummy text of the printing and typesetting industry.
Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia, looked up one of the more obscure Latin words, consectetur, from a Lorem Ipsum passage, and going through the cites of the word in classical literature, discovered the undoubtable source. Lorem Ipsum comes from sections 1.10.32 and 1.10.33 of "de Finibus Bonorum et Malorum" (The Extremes of Good and Evil) by Cicero, written in 45 BC. This book is a treatise on the theory of ethics, very popular during the Renaissance. The first line of Lorem Ipsum, "Lorem ipsum dolor sit amet..", comes from a line in section 1.10.32.