Update on Take-up Rate for Ultra-fast Fibre Broadband Network

Er Dr Lee Bee Wah asked the Minister for Information, Communications and the Arts (a) to date, what has been the take-up rate for the ultra-fast fibre broadband network installed by OpenNet; (b) if the rate has been low, whether the Ministry will be taking action to improve the sign-up rate; and (c) whether the Ministry will advise OpenNet to allow for another round of installation for residents who missed the first round of installation.

The take-up of OpenNet's offer of the free installation of fibre has been steadily increasing since OpenNet commenced the nationwide fibre rollout in 2009. About 63% of all households contacted by OpenNet have accepted its offer of free fibre installation in homes to date. In the less than two years since the launch of fibre services, more than 200,000 households, or some 17% of households, have taken advantage of the competitive pricing and innovative packages offered by retail service providers (RSPs) in the market and are now subscribers to fibre services. This is a result of the vibrant and competitive landscape afforded by the open access industry structure of the Next Generation Nationwide Broadband Network (Next Gen NBN).

The take-up rates of both installation and fibre services are respectable figures in view of the short span of time since the rollout commenced. Nevertheless, IDA has been actively working with various stakeholders, such as OpenNet, RSPs and grassroots organisations, to generate awareness of the Next Gen NBN, as well as to promote the adoption of the fibre services. Such efforts include the on-going Most Fibred-Up Constituency contests that encourage residents to take up free fibre installation as well as the showcase of possible innovative Next Gen services at the Infocomm Experience Centre.

To address the Member's query on whether we can advise OpenNet to allow another round of free installation, we need to understand the nature of the contractual relationship between OpenNet and the Government.

Under the Next Gen NBN Network Company (NetCo) contract between OpenNet and IDA, OpenNet is obliged to deploy fibre nationwide in accordance with the rollout milestones, and to make a one-time offer of free fibre installation for households as it carries out its rollout from area to area. OpenNet is eligible to apply for grants from the Government for areas covered and for each installation into homes, subject to OpenNet passing relevant checks and audits. The converse is true if OpenNet does not reach an area, or if fibre is not installed into a household, OpenNet will not be eligible to receive the relevant grants.

While we have consistently encouraged and urged OpenNet to accede to requests for free installations by households that missed out on the first round of free installations, OpenNet retains the liberty to decide on the outcome of such requests, given the nature of the contractual relationship. According to OpenNet, once it has completed works and moved off to another area, it will incur additional costs to mobilise their contractors to revisit previously covered areas to carry out ad-hoc installations. As such, there is an installation charge applicable for such ad-hoc requests. Notwithstanding this, we understand that OpenNet has acceded to a majority of the appeals. We also understand that households that had previously not signed up for installation can still get their homes wired up when they subscribe onto fibre services, and some service providers may even choose to waive the fibre installation charges.

Both MICA and IDA are closely monitoring the rollout of the Next Gen NBN by OpenNet and will ensure that OpenNet meets its contractual obligations.