Protecting Consumers from Unilateral Termination of Mobile Services by a Virtual Telco

Dr Tan Wu Meng asked the Minister for Communications and Information what safeguards exist to protect consumers when a virtual telco unilaterally terminates provision of mobile service in contravention of licence conditions.

All telcos in Singapore, including virtual telcos, must comply with the Telecommunications Act, the Telecommunications and Media Competition Code and their respective licence conditions. These include requirements to safeguard consumers’ interests, such as: (a) seeking the Infocomm Media Development Authority’s (IMDA) prior approval before discontinuing mobile services, and (b) providing all affected subscribers at least three months’ advance notice of any intention to cease services. Should consumers have disputes with their telecommunications service providers, they may submit their cases to IMDA or go through the Alternative Dispute Resolution (ADR) process set up by IMDA.

Should telcos fail to comply with their regulatory obligations, IMDA will investigate and take appropriate action. Where there is a breach of regulatory requirements, IMDA may issue warnings or financial penalties, taking into account factors such as measures adopted by licensees to mitigate impact on consumers.