Answer ... (a) Telecommunications
The Singapore telecommunications sector was fully liberalised from 1 April 2000 and since then, no direct or indirect foreign equity limits have been imposed on persons holding a licence to provide telecommunications services.
However, other than in exceptional circumstances, the Info-communications Media Development Authority’s (IMDA) current practice is to issue facilities-based telecommunications licences only to companies incorporated in Singapore, which can be wholly owned by a foreign entity.
In the case of services-based licences, the IMDA will also issue licences to foreign companies with a locally registered branch. M&A control regulations exist under the Converged Code.
IMDA differentiates between facilities-based and service-based operations. These are represented by the two types of licences: facilities-based operator (FBO) licences and services-based operator (SBO) licences:
- FBO licences apply to the deployment and/or operation of a telecommunications network, systems and/or facilities, by any person, to provide telecommunications and/or broadcasting services outside its own property boundaries to third parties. Third parties can include other licensed telecommunication operators, business customers and the general public.
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An SBO licence is required where operators intend, among other things:
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- to lease telecommunications network elements (eg, transmission capacity and switching services) from an FBO to provide their own telecommunications services; or
- to resell the telecommunications services of FBOs to third parties.
M&A control regulations exist under the Converged Code.
(b) Internet
Internet service providers (ISPs) and internet content providers (ICPs) are eligible to provide internet services in Singapore and are regulated through the Broadcasting (Class Licence) Notification.
ISPs and ICPs must abide by the conditions stated in the internet class licence and ensure that content offered complies with the Internet Code of Practice.
The Broadcasting (Class Licence) Notification defines:
- an ‘ISP’ as: “(a) an Internet Access Service Provider licensed under s5 of the Telecommunications Act; (b) a Localised Internet Service Reseller; or (c) a Non-localised Internet Service Reseller”; and
- an ‘ICP’ as “(a) any individual in Singapore who provides any programme, for business, political or religious purposes, on the World Wide Web through the Internet; or (b) any corporation or group of individuals (including any association, business, club, company, society, organisation or partnership, whether registrable or incorporated under the laws of Singapore or not) who provides any programme on the World Wide Web through the Internet, and includes any web publisher and any web server administrator”.
M&A control regulations exist under the Converged Code.
(c) Media
Part X of the Broadcasting Act regulates foreign participation in a broadcasting company – that is, is a company incorporated or registered under the Companies Act which holds any free-to-air licence, or any broadcasting licence (excluding class licences) under which a subscription broadcasting service may be provided, that permits a broadcast capable of being received in 50,000 dwelling houses or more. Unless the IMDA approves otherwise, the chief executive officer of a broadcasting company and at least half of its directors must be Singapore citizens.
The IMDA’s prior approval must be obtained if a person wishes to receive funds from a foreign source to finance any broadcasting service owned or operated by a broadcasting company.
M&A control regulations exist under the Converged Code.