Singapore Internet Case Study

THE e-CITY: SINGAPORE INTERNET CASE STUDY

April 2001 Michael Minges, Magda Ismail and Larry Press wrote this report. Vanessa Gray provided editorial comments and Nathalie Delmas handled formatting and production. Vincent Tan Fu Ming of Radin Mas Primary School in Singapore drew the picture on the cover. The authors are indebted to the Infocomm Development Authority of Singapore (IDA) for its support and particularly Meng Chung Lee who graciously dealt with the logistics. The report is based on field research undertaken 24-28 July 2000 as well as reports and articles identified in the bibliography or as footnotes. We would like to thank Jenny Yeo (Radin Mas Primary School), Alvin Kuek (AsiaStockWatch), Yap Kwang Tan (Ministry of Education), Colin Quek (National Healthcare Group), Siew Luan Yap (AsiaOne), Yoke Wah Lum (Ministry of Health), Cecilia Yip (Singa- pore Broadcasting Authority), Vivien Chow (Singapore Cable Vision) as well as IDA for their valuable comments on the draft version of this report.

The views expressed are those of the authors and may not necessarily re- flect the opinions of the International Telecommunication Union, its members, or the Government of the Republic of Singapore. This report is one of a series of Internet Case Studies. Additional information is available on the Internet Case Studies web site at www.itu.int/ti/casestudies.

ii Contents

1. Country background ...... 1 1.1 Overview...... 1 1.2 Demography ...... 1 1.3 Economy ...... 1 1.4 Human development...... 2 1.5 Political ...... 2

2. Information and Communication Technology markets ...... 4 2.1 Telecommunication Sector ...... 4 2.2 Information Technology Sector...... 11 2.3 Mass media ...... 14

3. Internet policy ...... 19 3.1 Role of incumbent telecom operator ...... 19 3.2 Pricing ...... 19 3.3 Regulatory issues ...... 22 3.4 Universal access...... 25

4. Information & Communication Technology & the Nation ... 30 4.1 Government ...... 30 4.2 Health ...... 33 4.3 Education ...... 35 4.4 Electronic commerce...... 42

5. Summary & recommendations ...... 47 5.1 State of the Internet in Singapore ...... 47 5.2 Recommendations ...... 49

Annex 1: List of meetings...... 52 Annex 2: Acronyms and abbreviations ...... 53 Annex 3: Useful links ...... 54 Annex 4: Framework dimensions ...... 55 Annex 5: Bibliography ...... 57

iii Figures

1.1 Map of Singapore ...... 1 1.2 Weathering the storm ...... 2 2.1 Singapore Inc...... 6 2.2 Telephone subscribers ...... 9 2.3 SingTel revenue ...... 10 2.4 Internet market in Singapore ...... 13 2.5 SingaporeOne Network Infrastructure ...... 14 3.1 Who is the cheapest? ...... 20 3.2 SingTel IX...... 20 3.3 Calling choices ...... 24 3.4 Whose homes are most connected? ...... 26 3.5 Internet and language ...... 27 4.1 e-citizen ...... 30 4.2 Putting the money where the mouth is ...... 32 4.3 SingAREN Network Configuration ...... 36 4.4 ICT manpower needs and training ...... 37 4.5 Whose schools are most wired? ...... 38 5.1 State of the Internet in Singapore ...... 47

Tables

1.1 Human Development Indicators ...... 3 2.1 Telecom liberalization milestones ...... 5 2.2 Licenses ...... 8 2.3 Singapore PC Market ...... 11 2.4 ISPs in Singapore ...... 12 2.5 Mass media indicators ...... 17 3.1 SingTels Internet Activities ...... 19 3.2 Internet access prices ...... 21 3.3 Broadband Internet pricing ...... 22 3.4 ISP Quality of Service conditions ...... 22 4.1 Ranking Singapore ...... 33 4.2 Singapore's health infrastructure ...... 33 4.3 Singapore at school ...... 35 4.4 E-commerce in Singapore...... 44 5.1 State of the Internet in Singapore compared to other economies ...... 49

Boxes

2.1 Mobile Internet ...... 10 2.2 From printed newspapers to online ones ...... 15 3.1 Kiosking Singapore ...... 27 3.2 Multilingual Singapore ...... 28 4.1 Future schools: Radin Mas Primary School ...... 41 4.2 AsiaStockWatch.com ...... 45

iv 1. Country background

1. Country background

1.1 Overview Singaporeans themselves have com- mitted to the policy, culture and prac- The Republic of Singapore, with an area tice of equal treatment of all races. of only 660 square kilometres, is lo- Chinese (Mandarin), Malay, Tamil and cated in Southeast Asia at the south- English are all official languages, with ern tip of the Malaysian peninsula. It English being the predominant lan- is comprised of a main island and sev- guage in business and government eral islets. Singapores northern neigh- dealings.2 Some 20 other languages bour is Malaysia, linked by a bridge are also used on the island crossing across the Johore Strait. On . In 2000, there were strategic location at the crossing of 923000 resident households for an many trade routes has contributed average household size of 3.7. The strongly to its history and economic total number of occupied housing units development. The island is relatively was 964138. flat, with a tropical temperature due to its proximity to the equa- Figure 1.1: Map of Singapore tor and abundant rainfall from its sea exposure. Less than two per cent of the land is used for agri- culture. The rest is evenly divided between developed and undeveloped areas. The name of the country is derived from a Sanskrit word SingaPura (Lion City).

1.2 Demogra- phy

In June 2000 the population of Singa- pore was four million, of which 3.0 million were citizens, 290000 were perma- nent residents and 755000 were non- resident.1 Average Source: The World Factbook 1999. annual population growth from 1990- 2000 was 2.8 per cent. The popula- 1.3 Economy tion is predominantly of Chinese descent (77 per cent), followed by With a small domestic market, few Malay (14 per cent) and Indian (8 per natural resources, and a strategic lo- cent) ethnic groups. Since independ- cation, Singapore has a long history ence, the Singapore government and as a trading nation. It leads the South

1 Singapore Internet Case Study

Figure 1.2: Weathering the storm

Singapore distribution of GDP, 1999 and GDP change over previous year

Singapore GDP Growth È È È

0DQXIDFWXULQJ È È Services 66% Construction 8%

6LQJDSRUH È *'3Ã6KDUHÃ 7RWDOÃ6ÇÃÃELOOLRQ 1995 1996 1997 1998 1999

Source: Singapore Department of Statistics.

East Asia region in imports and exports low for such an affluent nation.3 Ta- per capita. Singapore has a service- ble 1.1 compares Singapores HDI to oriented economy and its GDP per other economies in the Asia-Pacific capita of US$ 24210 ranks eighth in region. Singapore is the highest-rank- the world. The strength of the ing South East Asian nation in human economy is shown by its ability to con- development, and ranks second in tinue growing (albeit slowly) during Asia after Japan. the Asian economic downturn of 1997- 98 (Figure 1.2). While these facts re- 1.5 Political flect a healthy, robust economy, they do not reveal the active planning role Singapores recent history dates back of the government, which, in combi- to 1819 when Stamford Raffles estab- nation with an atypical Civil Service lished a British trading post on the is- policy, has had a profound effect on land. Singapore became a Crown Colony Singapore. in 1867, a situation that lasted until 1959 with an interruption during the 1.4 Human development Japanese occupation between 1942 and 1945. There was a strong inde- While Singapore enjoys the eighth pendence movement, and elections highest GDP per capita in the world, were held for self-government in 1959. it ranks only 24th on the United Na- The Peoples Action Party (PAP) won tions Development Programmes the election and Lee Kuan Yew became Human Development Index (HDI). the first Prime Minister of the State of The HDI is a function of wealth, Singapore. Lee pressed for a union with health, and education, and, while Malaya and when Malaysia was formed Singapore ranks high on GDP per in 1963, it included Singapore. Singa- capita and life expectancy, it is pulled pore withdrew in 1965 and became an down by a relatively poor perform- independent republic. The PAP has ance in education. The mean years ruled continuously since 1965 and Goh of schooling is 8.1 years and the lit- Chok Tong became the countrys sec- eracy rate 94 per cent, both relatively ond Prime Minister in 1990.

2 1. Country background

Table 1.1: Human Development Indicators

Singapore compared to selected Asia-Pacific economies, 1998

Combined Life Adult school gross GDP per expectancy literacy rate enrolment capita HDI at birth (years) (%) ratio (%) (PPP US$) Rank Economy 1998 1998 1998 1998

4 Australia 78.3 99.0 114 22'452 9 Japan 80.0 99.0 85 23'257 20 New Zealand 77.1 99.0 96 17'288 24 Singapore 77.3 91.8 73 24'210 26 Hongkong SAR 78.6 92.9 64 20'763 31 Korea (Rep.) 72.6 97.5 90 13'478 61 Malaysia 72.2 86.4 65 8'137

Note: Adult literacy and school enrolment data for Singapore vary from that reported by national authorities. See endnote 3. Source: United Nations Development Programme.

1 Singapore Department of Statistics. Singapore Census of Population 2000 A Quick Count. Press Release 17. 31 August 2000. 2 The adoption of English as Singapores working language is credited with promoting harmony and adds to Singapores competitive advantage. See Michael Richardson. English Bridges Cultural Gap in Singapore. International Herald Tribune. 12 February 2001. . 3 Literacy data reported by Statistics Singapore differs from that reported by the UNDP even though the year and concept used by both appear to be the same. Ministry of Education data on gross school enrolment also differ from the UNDP with the former reporting 86 per cent (compared to 73 per cent).

3 Singapore Internet Case Study

2. Information and Communication Technology markets

2.1 Telecommunication Sector Operators (FBO) in the country. Due to the small market and technical and Singapore has one of the most ad- financial constraints, it is unlikely that vanced telecommunication networks in the number of FBOs will grow signifi- the world with very high levels of ac- cantly. The countrys FBOs include: cess. This has been possible due to the small size of the countryessentially a · Singapore Telecom (SingTel) large cityas well as rising levels of in- is the nations come and government commitment to incumbent operator. As in many telecommunication excellence. The tel- countries, SingTel enjoyed a mo- ecommunication market has been char- nopoly until recently. However, acterized by progressive liberalization unlike many countries, the level from a state-owned monopoly provider of infrastructure development and to full competition (see Table 2.1). quality of service was high with SingTel striving to measure up to 2.1.1 Regulation and policy- international best practice. SingTel making was partially privatized in 1993 Government ministries are responsible and is a major international inves- for overall policy with subsidiary statu- tor in its own right with over tory boards providing technical support US$ 2.5 billion invested in and day-to-day regulation. The Minis- 19 countries. Singapore Post, the try of Communications and Information countrys postal service, is a sub- Technology (MCIT) is responsible for sidiary of SingTel. At end overall transportation, postal services March 2000 SingTels domestic and Information and Communications network included 1.9 million fixed Technology (ICT) policy. The Info-com- line subscribers and 1.1 million munications Development Authority mobile cellular subscribers. (IDA) is the statutory board responsible for regulating and promoting postal · Mobile One (M1) was formed in August late 1999 from the merger of the Tel- 1994 to bid for Singapores sec- ecommunication Authority of Singapore ond mobile cellular license. It was (TAS) and the National Computer Board awarded mobile cellular and ra- (NCB). dio paging licenses in May 1995. Both services were launched on The Ministry of Information and The 1 April 1997 when SingTels mo- Arts (MITA) was created in 1990. It is nopoly in these areas expired. M1 the public relations arm of the gov- started with a GSM-900 system ernment. It also oversees the regula- and introduced a CDMA network tion and promotion of the broadcast, in June 1998. M1s shareholders Internet content and print media, as are Keppel Group (Singapores well as the arts and heritage sectors. largest industrial conglomerate) The Singapore Broadcasting Author- (35%), Singapore Press Holdings ity (SBA) is the statutory board re- (35%), Cable & Wireless (UK) sponsible for broadcasting regulation, (15%) and Pacific Century including Internet content. Cyberworks (Hongkong SAR) (15%). M1 had around 2.1.2 Operators 600000 mobile cellular subscrib- Singapores small size coupled with the ers at 30 June 2000. recent introduction (April 2000) of full telecommunication means that there · StarHub won fixed and mobile

4 2. Information and Communication Technology markets

Table 2.1: Telecom liberalization milestones

Jun ’94 Opening of pre-qualification tender for one more mobile phone and three more radio paging operators. Nov ’94 Opening up of VSAT provision and operation solely for intra-corporate business communications. Dec ’94 Liberalization of resale of public switched telecommunications services for existing resellers in hotel and service apartment sector. May ’95 Licensing of one more public cellular mobile telephone operator and three more public mobile radio paging operators to commerce services in April 1997 in competition with Singapore Telecom when its exclusive license for these services expire. Opening of tender for third IASP license. Jun ’95 Six bids for third Internet Access Service Provider (IASP) licence received. Aug ’95 Resale of international telephone services via customer-owned and operated Coinafons. Further opening up of resale of public switched telecommunications services, for any company, apart from existing resellers in the hotels and service apartment sector, to apply to TAS for licensing. Sep ’95 Liberalization of IDD/STD payphones. Licensing of 2 Internet public access providers, in competition with Singnet. Oct ’95 Resale of services by Internet public access providers permitted. Apr ’96 Announcement that TAS will license additional operators to provide basic telecommunication services from April 2002. May ’96 TAS advances the expiry of Singapore Telecom exclusive licence for basic telecommunications services to year 2000. Sep ’96 TAS decides to award up to two additional licences for the provision of public basic telecommunications services from 1 April 2000. Dec ’96 Resale of leased circuit services for intra-corporate communications permitted. Jan ’97 Announcement of PBTS license fees, the release of the Information Package and the start of the pre-qualifying tender on 1 March 1997. Removal of telecommunications service surcharge levied by hotels and service apartments. Mar ’97 Announcement that up to two additional PCMTS operators will be licensed by mid-1998 to provide commercial services by 1 April 2000. Apr ’97 Waiver of licence fee for mobile communications users. New paging operators, MobileOne, ST Messaging and Hutchison Intrapage, and mobile phone operator, MobileOne, commence operations. Jul ’97 Announcement of all three consortia which had submitted proposals for the pre-qualification tender submissions for the PBTS License to be short listed to participate in the main tender. Aug ’97 Briefing for the three pre-qualified consortia for the PBTS Licence(s) on the details of the main tender. Sep ’97 Lowering of mobile and paging licence fees. Announcement of 1 October 1997 as the opening date of the public tender for the licensing of up to two more PCMTS operators which would begin operation from 1 April 2000. Nov ’97 Liberalization of Very Small Aperture Terminals (VSAT) licence with 17 VSAT operators approved to operate VSAT for intra-corporate communications. Apr ’98 StarHub wins the Public Basic Telecommunications Services and Public Cellular Mobile Telephone Services licences. Another consortium, P2P, clinches the second PCMTS licence. TAS announces it will not award PCMTS licence to P2P as the consortium’s local partners were not able to form the consortium according to the shareholding structure proposed in its tender submission. Oct ’98 The Internet access service provision market is further liberalized. Any interested party who meets the minimum criteria can apply to TAS for a public Internet Access Service Provider (IASP) licence. Jun ’99 The provision of International Internet Exchange Services is liberalized. Jul ’99 The transmission of Value-Added Network traffic over the Internet is liberalized. Sep ’99 The foreign equity limit on IASPs and IXSPs is lifted. Jan ’00 Announcement of full competition in the telecommunications sector being brought forward from 1st April 2002 to 1st April 2000. Sep ’00 IDA issued the Code of Practice for Competition in the Provision of Telecommunication Services ("Telecom Competition Code") Jan ’01 IDA approved the Reference Interconnection Offer (RIO) by Singtel. The RIO was effective 31 Jan 2001

Source: IDA.

5 Singapore Internet Case Study

cellular licenses in April 1998. It second quarter of 2001. It will launched its fixed and mobile leverage its cable television in- services (GSM 1800) on 1 April frastructure to provide cable te- 2000. StarHub bought CyberWay, lephony, its third service after an ISP in January 1999 and cable television and Internet ac- rebranded it as StarHub Internet cess. in December 1999. StarHub is owned by Singapore Technolo- 2.1.3 Market liberalization gies (34.5%), Singapore Power (25.5%), NTT (Japan) (22%) and IDA has tried to abide by a well- BT (UK) (18%). At June 2000 it planned timetable in liberalizing the had 79000 mobile subscribers industry. However, rapid global and an estimated five per cent changes have led the government to share of the international tel- advance liberalization on several oc- ephone market. casions. For example, SingTel initially had a monopoly on fixed-line and in- · Singapore Cable Vision (SCV) ternational services until , the islands 31 March 2007. In May 1996, this was cable television operator, ob- changed to a duopoly to begin 1 April tained a facilities-based (fixed) 2000. In January 2000 it was an- telecommunication license in nounced that the duopoly would be June 2000. It is expected to abolished and the market fully opened launch telephone service by the to competition in April 2000. The gov-

Figure 2.1: Singapore Inc.

Ownership of Singapore's info-communications industry, June 2000

7HPDVHNÃ È 6LQJDSRUH +ROGLQJV *RYHUQPHQW

È È È ÈÈ È

0HGLDÃ&RUS 6LQJDSRUHÃ 6LQJDSRUHÃ 0HGLDÃ&RUS 6HPE&RUS .HSSHO RIÃ6LQJDSRUH 7HFKQRORJLHV 3RZHU RIÃ6LQJDSRUH

È È È È È È 6LQJDSRUH 6LQJDSRUH È 3DFLILF 6WDU+XE 0 7HOHFRP &DEOH9LVLRQ ,QWHUQHW È È È È È È È È È

6LQJDSRUH 3&&: 177 %7 &É: 3XEOLF 3UHVV 3XEOLF +RQJNRQJ -DSDQ 8. 8. +ROGLQJV 6$5

Ã0DQDJHPHQWÃVKDUHV

Source: ITU compiled from company reports.

6 2. Information and Communication Technology markets

ernment has been successful in ad- are considered local. There are sepa- vancing the liberalization timetable by rate monthly telephone line rentals for convincing incumbent license holders residential and business subscribers. to accept the changes in return for fi- Local calls had been included in the nancial compensation.1 flat monthly charge until Decem- ber 1991 when a usage-based call Privatization charge was introduced (1.4 Singapore cents per minute peak and 0.7 Singa- SingTel was partially privatized pore cents off-peak). To compensate, through two public sales of shares to fixed telephone residential monthly the public in October 1993 and Sep- subscriptions were dropped from tember 1996. Temasek, the Singapore S$ 15.83 (US$ 9.13) to S$ 8.33 government holding company, has (US$ 4.8), and business from also made sporadic sales of its hold- S$ 24.17 (US$ 14.24) to S$ 12.50 ings to institutional investors. (US$ 7.21). A second change occurred In July 1999 Temasek held 79.74 per in 1996 when the Goods and Service cent of the company.2 Singapores Tax (GST) was introduced, adding government holdings in the telecom three per cent to telecommunication sector go beyond SingTel as it has in- charges. No further changes to na- direct stakes in all current operators tional fixed telephone charges have through intermediary companies occurred. International call charges (see Figure 2.1). have been steadily declining. SingTels average international price per minute Licensing dropped from S$ 2.05 (US$ 1.18) in 1996 to S$ 1.21 (US$ 0.7) in 2000. The provision of virtually any telecommunication service requires a licence Like fixed telephone prices, charges issued by IDA.3 There are two gen- for entry level mobile cellular service eral types of licenses: facilities or serv- have not changed dramatically despite ices. Facilities-based operators require the introduction of competition. The an individual license while services- major innovation has been the intro- based operators may require either an duction of free minutes with the sub- individual license or a class license scription. Singapore has a Receiving (i.e., providers are assumed to have Party Pays system for mobile so users read the licensing guidelines and are must also pay for incoming calls. automatically licensed but neverthe- SingTel Mobile had seven different less should register with IDA). In gen- plans in January 2000 that ranged eral, individual licensees must pay an from S$ 25 (US$ 14.5) 325 annual license fee equivalent to one (US$ 187.4) per month, depending on per cent of annual revenue subject to the number of free minutes included. the respective minimum sums as elaborated in Table 2.2 below, while Interconnection class licensees pay S$ 200 (US$ 115) every three years. Though there are Limited competition prior to April 2000 no pre-defined limits on the number has meant that interconnection has not of licenses, technical limitations (e.g., been much of an issue. Interconnec- spectrum) and market considerations tion among facilities-based operators is influence the issuance of facilities- required but left to commercial nego- based licenses. tiations. IDA is prepared to facilitate the negotiations and can intervene if nec- Tariffs essary. In addition, unbundling of network facilities is also required. IDA has IDA is responsible for approving tel- issued a Code of Practice to assist with ecommunication tariffs. There have interconnection issues. been few changes to national fixed telephone prices, whose structure is Universal service quite straightforward. There are no national long distance tariffs, as calls According to the Info-communications placed and destined within Singapore Development Authority Act of Singa-

7 Singapore Internet Case Study

Table 2.2: Licenses

Status at January 2001

/LFHQFHÃÃ 1HZÃOLFHQVHVÃ /LFHQFH5HJLVWUDWLRQÃ)HHÃ LVVXHGÃDIWHUÃ Ã$SULOÃÃ )DFLOLWLHV%DVHGÃ2SHUDWRUVÃ Ã Ã )%2ÃGHVLJQDWHGÃDVÃ37/ÃÃ Ã ,QLWLDOÃ)HHÃ1RQHÃ$QQXDOÃ)HHÃÈÃ$*72Ã 6XEMHFWÃWRÃPLQLPXPÃRIÃ6ÇÃÃ 86Ç ¶ ÃSHUÃ\HDUÃ /LFHQFHÃ'XUDWLRQÃÃ\HDUVÃUHQHZDEOHÃIRUÃDÃ IXUWKHUÃSHULRGÃDVÃ,'$ÃWKLQNVÃILWÃÃ 7HUUHVWULDOÃWHOHFRPPXQLFDWLRQÃQHWZRUNVÃIRUÃ Ã ,QLWLDOÃ)HHÃ1RQHÃ$QQXDOÃ)HHÃÈÃ$*72Ã WHOHFRPPXQLFDWLRQÃSXUSRVHVÃÃ 6XEMHFWÃWRÃPLQLPXPÃRIÃ6ÇÃÃ 86Ç ¶ ÃSHUÃ\HDUÃ /LFHQFHÃ'XUDWLRQÃÃ\HDUVÃUHQHZDEOHÃIRUÃDÃ IXUWKHUÃSHULRGÃDVÃ,'$ÃWKLQNVÃILWÃ 3XEOLFÃFHOOXODUÃPRELOHÃWHOHSKRQHÃVHUYLFHVÃ Ã 7KHÃOLFHQFHÃIHHVÃDQGÃGXUDWLRQÃZLOOÃEHÃ 3XEOLFÃPRELOHÃEURDGEDQGÃPXOWLPHGLDÃVHUYLFHVÃ Ã VSHFLILHGÃWRJHWKHUÃZLWKÃWKHÃDSSURDFKÃWRÃ 3XEOLFÃIL[HGZLUHOHVVÃEURDGEDQGÃPXOWLPHGLDÃ Ã DZDUGÃOLFHQFHVÃ7KHUHÃZLOOÃEHÃDÃVHSDUDWHÃ VHUYLFHVÃ FRPSDUDWLYHÃH[HUFLVHÃ WHQGHUÃRUÃDXFWLRQ ÃE\Ã UGÃ4XDUWHUÃÃ 3XEOLFÃUDGLRÃSDJLQJÃVHUYLFHVÃ Ã ,QLWLDOÃ)HHÃ1RQHÃ 3XEOLFÃPRELOHÃGDWDÃVHUYLFHVÃ Ã $QQXDOÃ)HHÃÈÃ$*72Ã 3XEOLFÃWUXQNHGÃUDGLRÃVHUYLFHVÃ Ã 6XEMHFWÃWRÃPLQLPXPÃRIÃ6ÇÃ¶Ã 86ÇÃ Ã SHUÃ\HDUÃ /LFHQFHÃ'XUDWLRQÃÃ\HDUVÃUHQHZDEOHÃIRUÃDÃ IXUWKHUÃSHULRGÃDVÃ,'$ÃWKLQNVÃILWÃ 7HUUHVWULDOÃWHOHFRPPXQLFDWLRQÃQHWZRUNÃIRUÃ Ã ,QLWLDOÃ)HHÃ1RQHÃ EURDGFDVWLQJÃSXUSRVHVÃRQO\Ã $QQXDOÃ)HHÃ6ÇÃ¶Ã 86ÇÃ Ã 6DWHOOLWHÃ8SOLQN'RZQOLQNÃIRUÃEURDGFDVWLQJÃ Ã /LFHQFHÃ'XUDWLRQÃÃ\HDUVÃUHQHZDEOHÃRQÃDÃ SXUSRVHVÃ \HDUO\ÃEDVLVÃ 6HUYLFHV%DVHGÃ2SHUDWRUVÃ Ã Ã 6HUYLFHV%DVHGÃ2SHUDWRUVÃWRÃEHÃ,QGLYLGXDOO\Ã/LFHQVHGÃ 6%2Ã ,QGLYLGXDO Ã Ã ,QLWLDOÃ)HHÃ1RQHÃ $QQXDOÃ)HHÃÈÃ$*72Ã VXEMHFWÃWRÃPLQLPXPÃRIÃ6ÇÃ¶Ã 86ÇÃ ÃSHUÃ\HDUÃ /LYHÃ$XGLRWH[ÃVHUYLFHVÃRQO\Ã Ã 6ÇÃÃ 86ÇÃ ÃHYHU\ÃWKUHH\HDUO\Ã 6HUYLFHV%DVHGÃ2SHUDWRUVÃWRÃEHÃ&ODVVÃ±Ã/LFHQVHGÃ 6%2Ã &ODVV Ã Ã 6ÇÃÃ 86ÇÃ ÃHYHU\ÃWKUHH\HDUO\Ã 5HVDOHÃRIÃSXEOLFÃVZLWFKHGÃWHOHFRPPXQLFDWLRQÃ Ã 1RÃUHJLVWUDWLRQÃIHHÃSD\DEOHÃ VHUYLFHVÃ 6WRUHÃDQGÃUHWULHYHÃYDOXHDGGHGÃQHWZRUNÃ Ã 1RÃUHJLVWUDWLRQÃIHHÃSD\DEOHÃ VHUYLFHVÃ ZLWKRXWÃWKHÃXVHÃRIÃOHDVHGÃFLUFXLWV Ã

Source: ITU adapted from IDA.

pore Act 1999, IDA is responsible for ice. Exact figures on household tel- ensuring that telecommunication ephone penetration are not compiled, services are reasonably accessible to probably because it is assumed that all people in Singapore, and are sup- almost every family has a phone. A plied as efficiently and economically statistical calculation based on the as practicable. It has a number of number of residential telephone lines tools at its disposal for ensuring this, results in a ratio of over 100 per cent. such as the right to impose price con- This is due to the growing portion of trols or obligate public telecommuni- homes with second fixed lines (some cation licensees to provide basic twenty per cent at March 2000). Mo- services to anyone in Singapore who bile is also helping to enhance access requests it. Singapore has achieved a to telephone services. At the end of high level of universal telephone serv- 1998, over half of Singapores house-

8 2. Information and Communication Technology markets

holds had a mobile phone. There is ME-WE 3, China-US and Japan-US. complete nationwide mobile coverage. SingTel and nine other regional telecom That fact, coupled with the availabil- operators are building a new 2.5 terabits ity of prepaid cards, means that there per second optic fibre submarine cable is no infrastructure limitation to uni- to be completed in 2002. When finished, versal telecommunication access. the Asia-Pacific Cable Network 2 will connect eight Asian economies and be 2.1.4 Network the highest capacity submarine cable in the region. The country has three Singapore has a well-developed domes- Intelsat satellite earth stations. In ad- tic communication network with 27 tele- dition, Singapore launched its own sat- phone exchanges. The fixed network ellite, ST-1, in August 1998. Its footprint has been fully digitalized since 1994. covers most of Asia and is one of the The Singapore One Network for Every- most powerful in the region. one (ONE) backbone uses ATM technology over fibre optic cable at speeds of International telecommunication traf- up to 622 Mbps. The island has five dig- fic has always been important for the ital mobile cellular networks (two island-state with a trade-oriented GSM 900, two GSM 1800 and one economy. Although revenues from in- CDMA). A significant milestone occurred ternational telephone traffic provide in July 2000 when the number of mo- the largest proportion of SingTels rev- bile cellular subscribers exceeded fixed enue, this share has declined to 34 per telephone lines (see Figure 2.2). cent in 1999 from over 50 per cent in 1993 (see Figure 2.3). Yet overall prof- 2.1.5 International service itability has not been affected due to growing revenue from other sources Singapore has over 14000 telephone such as data and Internet services. circuits with international terrestrial There were 885 million minutes of links to Malaysia and submarine cable outgoing international telephone traf- and satellite links to the rest of the fic (excluding Malaysia) in the year world. Investments in regional subma- ending 31 March 2000, up six per cent rine fibre cable systems include SEA- over the previous period.

Figure 2.2: Telephone subscribers

Fixed and mobile telephone subscribers (000s), Singapore

2’500 70%

V 60% 2’000 50% 3 Ã H UV 1’500 Q H 40% H E W UL U F 30% D V 1’000 LW E R X 20% Q 6 500 10% 0 0% Mar-98 Mar-99 Mar-00 Jul-00 Fixed lines 1’685 1’778 1’877 1’905 Mobile subscribers 849 1’095 1’631 1’970 Fixed penetration 54.3% 56.2% 58.3% 58.4% Mobile penetration 27.3% 34.6% 50.7% 60.4%

Source: ITU adapted from IDA.

9 Singapore Internet Case Study

Figure 2.3: SingTel revenue

SingTel's revenue, 1996-2000, US$ million and distribution of revenue, year ending March 2000

6LQJ7HOÃWHOHFRPÃUHYHQXHÃ86ÇÃPLOOLRQ Posts IT 7% 7% $3’500 International as % of total 50% 45% $3’000 Data Equipment 40% Mobile 16% 4% $2’500 35% 17% $2’000 30% Other 25% 8% Directory $1’500 National 20% 2% 12% Internat’l $1’000 15% 33% Others 10% 7HOHSKRQH $500 2% 5% $0 0% 6LQJ7HOÃUHYHQXHÃGLVWULEXWLRQÃ\HDUÃHQGLQJÃ 1996 1997 1998 1999 2000

Note: Years ending 31 March. Share of international revenue is based on total revenue. Source: ITU adapted from SingTel data.

Box 2.1: Mobile Internet

The islands three mobile operators have been ac- speed of 38.4 kbps. StarHub launched a GPRS tively promoting mobile data and Internet access. trial at the end of October 2000. All provide Short Messaging Service (SMS)a sort of precursor to mobile Internetincluding sup- The take-up of mobile Internet in Singapore thus port for Chinese if users have the appropriate far appears to be lukewarm compared to Japans handset. M1 claims that its users send one mil- popular i-mode service. Hard data about the number lion SMS messages a day.4 Mobile Internet based of users is difficult to come by. StarHub claimed on the Wireless Access Protocol (WAP) was initi- more than 10000 WAP users at end Septem- ated in the first half of 2000. M1 launched its Mi ber 2000 while SingTel Mobile stated it had World service in February, SingTels e-ideas serv- 20000 Mobile Office customers in early Septem- ice was commercially introduced in March and ber. There are no published figures for M1 regard- StarHubs iPower was available from April. The ing mobile Internet customers. IDAs figure for operators have been busy developing and sign- mobile data services subscriberswhich captures ing up content providers for their mobile portals. customers of Public Mobile Data licensees but does Applications include online banking, stock inquir- not include WAP userswas 11700 at September ies, and news and sports results. 2000. Extrapolating from the available data, there were less than 50000 mobile Internet users in Sep- The mobile operators have begun developing tember 2000 or about two per cent of the total faster mobile Internet services to boost GSMs mobile subscriber base. Resistance to mobile normal speed of 9.6 kbps. M1s WAP service uti- Internet is related to pricing and handset availabil- lizes a special platform that provides 14.4 kbps ity. All operators have waived WAP registration and allowing it to boast of Singapores fastest serv- subscription fees. Usage is charged on a basis of ice. In December 2000, M1 claimed to be the first ten Singapore cents (5.8 US cents) per minute. to have launched General Packet Radio Service (GPRS) roaming. It builds on the worlds first WAP In October 2000, IDA announced the procedure for roaming service with Hongkong (started in July awarding third generation (3G) mobile licenses.5 2000); roaming subscribers can access the Mi Unexpectedly, it has decided to use an auction sys- World portal at 36 kbps from Hongkong. Calls are tem to award four licenses. The rationale was that routed over an IP network to get around interna- an auction is the most objective way of awarding tional long distance rates. SingTel launched a fast the licenses. The floor price at which the auction wireless service in September using High Speed will begin has been set at S$ 100 (US$ 57) million. Circuit Switched Data (HSCSD). This provides a The auction will be held in April 2001.

10 2. Information and Communication Technology markets

2.2 Information Technology 44 per cent, the second highest in the Sector Asia-Pacific region (after Australia). Singapores household computer pen- Singapore has a vibrant IT sector. The etration stood at 59 per cent in 1999, electronics industry, including compu- up almost 20 per cent over the previ- ter equipment manufacturing, is large ous year. and the country is a major export base for big multinational companies such 2.2.2 The Internet market as IBM, Hitachi and Sun. Indeed, exports of Office Machines (which include Singapore was one of the first coun- data processing equipment) was some tries in Asia to get an Internet con- S$ 41 billion (US$ 23.7 billion) in nection. This was the culmination of 1999, more than a third of the coun- many years of connectivity experience trys total exports. There are around with academic networks preceding the 93000 people employed in the ICT Internet. The pioneering network ini- sector in the country, growing at tiatives of the National University of 10-12 per cent a year. Professional Singapore (NUS) were critical, attest- and industry associations include the ing to the importance of the academic Singapore Computer Society sector in developing a sustainable and Singapore In- Internet environment.7 Networking formation Technology Federation activities date back to the early 1980s . when Singaporeans obtained new-to- market personal computers and set up 2.2.1 Computer market Bulletin Board Systems (BBS).8 Some of these BBS had daily dial-up con- There is a large selection of computer nections to the international FIDOnet equipment available in Singapore with for exchanging emails and files with many retail outlets. There are even users in other countries. In 1987, the two shopping malls mostly devoted to NUS joined BITNET with the first email computer products. Prices are reason- received from the City University of able with a Compaq iPAQ Desktop New York in January over a 4800 bps (Pentium III, 500 MHz processor) cost- link. This was the first Asian link out- ing S$ 1588 (US$ 915) in July 2000, side of Japan to the BITNET and is around US$ 40 less than if purchased cited as a milestone in Singapores over Compaqs US web site. early Internet lead over other countries. Another first took place in Au- According to IDC, some 427000 per- gust 1990 when a 64kpbs Internet link sonal computers were sold in Singa- was established between NUS and pore in 1999, an increase of almost Princeton University in the United 30 per cent over the previous year.6 States. This was the first Internet site It is estimated that there are around in Singapore and the Southeast Asian 1.7 million PCs in use on the island, region. Full Internet connectivity for resulting in a penetration rate of NUS was officially launched in April

Table 2.3: Singapore PC Market

Ã Ã Ã PC sold (000s) 370 332 427 Estimated PC base (000s) 1’244 1’450 1’703 PCs per 100 people 33.3% 37.5% 43.7% Percent households with PC 35.8% 41.0% 58.9%

Note: Estimated base derived from sales data. Source: ITU adapted from IDC, IDA and national statistics.

11 Singapore Internet Case Study

1991. Other regional firsts for NUS years, renewable for another three include the first Gopher server in 1992 years after that. The license fee is one and the first World Wide Web server per cent of annual gross turnover. In in 1993. addition, ISPs are automatically granted a class license by SBA, which In 1992, TechNet was established to covers content issues; they are sup- provide Internet connectivity for the posed to register with SBA within islands R&D community, extending 14 days after commencing service. access beyond NUS. Technet was later commercialized and became Singa- IDA has been publishing Internet dial- pores second ISP known as Pacific up subscriber figures since January Internet. SingTel launched public 1997. At June 2000, IDA reported Internet services in July 1994 through 1.8 million dial-up subscribers, result- its SingNet subsidiary. These two ISPs ing in a penetration rate of 54.2 per were joined by the then Cyberway, cent. The number of subscribers rose which launched service in March 1996. substantially from December 1999 to These three were the only companies March 2000, since the launching of free allowed to provide Internet service un- ISP service by StarHub in December til October 1998 when the ISP market 1999. This was followed by SingNet was opened. By June 2000, there were which provides each SingTel telephone 18 licensed ISPs in Singapore (see Ta- subscriber with a free Internet account ble 2.4) although the original three re- via the mysingtel portal. In addition tain the bulk of the consumer dial-up SingNet has waived dial-up telephone market with most of the newcomers usage charges for its Internet clients either serving niche corporate markets9 that subscribe to a monthly package. or not yet in operation. Growth has been flat since March 2000, with the number of Internet subscrib- ISPs are granted a license by IDA. The ers roughly equivalent to the number license is valid for a period of three of telephone lines.

Table 2.4: ISPs in Singapore

Licensed ISPs, June 2000

,63Ã :HEÃVLWHÃ 1 1-Net Singapore 2 AT&T Worldwide Telecommunications Services 3 Cable & Wireless Network Services (Singapore) 4 Circle Dot Com (S) 5 Concert Global Network (S) 6 Dataone ( Asia) 7 Equant Singapore 8 Global One Communications 9 LGA Telecom 10 Loral Cyberstar International Inc 11 Pacific Internet 12 Singapore Telecommunication 13 StarHub Internet 14 Stt.com 15 Swiftech Automation 16 T.M.I. Telemedia International Hong Kong 17 UUNET Singapore 18 Winstar Communications Singapore

Note: These are licensed ISPs and not necessarily in operation. Source: ITU adapted from IDA.

12 2. Information and Communication Technology markets

As a result of free access, figures for cess through the nationwide Singa- Internet subscribers are a bit mis- pore ONE network (see Figure 2.5). countries where the number of regu- Singapore ONE is a government-led lar Internet users is less than the initiative to develop broadband in- number of subscribers. A number of frastructure and services. 1-Net pro- recent surveys provide differing fig- vides the infrastructure for Singapore ures on Internet use on the island ONE.12 The network is based on (see Figure 2.4). A 1999 survey pro- Asynchronous Transfer Mode (ATM) vided by SCV based on a sample of switching technology with fibre op- 4200 people states that roughly one tic transmission speeds at up to third (31.4%) of the population used 622 Mbps. the Internet. A March 2000 survey put the active Internet universe at Broadband local access is available 404000 users (10 per cent of popu- through two services. The first is ca- lation).10 Yet another study, released ble modem access provided by Sin- in September 2000, stated that Sin- gapore Cable Vision. The second is gapore had the highest Internet pen- SingNets ADSL Magix service. Over etration in Asia with 46 per cent of 99 per cent of the islands house- the population older than 15 access- holds are passed by broadband in- ing the Internet in the past month.11 frastructure and there were One explanation for these wide dis- 250000 users in September 2000.13 crepancies is that some of the surveys only cover home use and thus Singapores international Internet would not cover Singaporean resi- connectivity is, on a per capita ba- dents accessing the Internet from sis, one of the highest in the world school or work. thanks to SingTels Internet Ex- change (STIX) . It is connected to over velopment is reflected by its active 30 countries with some 800 Mbps of promotion of high speed Internet ac- bandwidth.

Figure 2.4: Internet market in Singapore

Number of Internet subscribers, 1997-2000 and estimated number of users, various surveys, June 1999 - September 2000

,QWHUQHWÃVXEVFULEHUVÃ V ,QWHUQHWÃXVHUVÃ V Ã È È 2’000 60% ÈÃ3HUÃFHQWÃRIÃSRSXODWLRQÃÃ È 1’800 ÈÃ3HUÃFHQWÃRIÃSRSXODWLRQÃÃ È 50% 1’600 Per cent of population È 1’400 40% È È 1’200 È È 1’000 30% È 800 20% 600 400 10% 200 0 0% Nielsen* IDA (6/99) SCV NetValue Nielsen** Jan-97 Dec-97 Dec-98 Dec-99 Jan-00 Jun-00 (6/00) (12/99) (9/00) (6/00)

Note: Left chart: Free Internet access was introduced in December 1999. Right chart: Figure in paren- thesis refers to date of survey. Nielsen* figure refers to home users accessing Internet in the last month. IDA refers to their household IT survey. SCV refers to Singapore Cable Vision survey. NetValue data is derived from percentage of 15+ Internet users. Nielsen** figure refers to the total Internet universe. Source: ITU adapted from IDA, Nielsen, SCV and NetValue data.

13 Singapore Internet Case Study

Figure 2.5: SingaporeOne Network Infrastructure

Source: http://www.1-net.com.sg/images/aboutus/s-one/Network.gif, December 2000.

2.3 Mass media building portals, developing content or providing audio and video stream- There is a high level of technology ing. Singapores relatively small mar- adoption by Singapores mass me- ket size encourages media dia. This includes not only the companies to develop Internet prop- Internet but also other advanced erties with regional pull. This is aided broadcasting technology such as Dig- by the perception that Singapores ital Audio Broadcasting (DAB) and media is more objectiveparticularly Digital Television (DTV). Virtually all for Chinese language reportingthan of Singapores newspapers and ra- other regional media. Despite the va- dio and television stations have web riety of newspapers and broadcast sites. Many have gone further by stations, they are all owned by two

14 2. Information and Communication Technology markets

companies. The country has recently also about 190 foreign newspapers partly liberalized the media sector by and more than 5000 foreign maga- notably allowing the leading printed zines available in Singapore. Daily cir- media company to get into broadcast- culation for the local papers is over ing and vice versa. one million with the English language papers accounting for more than half. 2.3.1 Print Seven of the papers are on the web, made easier by the fact that they are There are eleven local daily papers all published by Singapore Press Hold- six English, three Chinese and one ings (SPH) (see each in Malay and Tamil. There are Box 2.2).

Box 2.2: From printed newspapers to online ones

AsiaOne , a Singapore Press ices. A successful business model has been to Holdings (SPH) dot-com spin-off, illustrates how bring news online before it comes out in print. Singaporean media companies are embracing the AsiaOne also provides free email accounts and Internet. AsiaOne originated within SPH as a mul- sends out breaking news to subscribers. These timedia division and was listed in June 2000 when methods keep users sticky to the site. AsiaOne 13 per cent of its shares were sold to the public. has also reached out to mobile users through a AsiaOne hosts the online version of SPHs seven WAP service that provides news headlines and newspaper editions. It also has content on various restaurant listings. subjects such as food, computers and health. Other services include call centre support for horoscopes, AsiaOne claims to get an average of three million sports results, and polling over the telephone. page views a day and ranks second in terms of time spent on Singaporean sites with an average of al- The main source of AsiaOnes revenue is online most half an hour per session (see Table). AsiaOne advertising. It believes this will grow due to in- also operates Zaobao Online, the Internet version creasing Internet usage and liberalization of the of Singapores leading Chinese newspaper. Zaobao Singaporean media market, which will attract is a Chinese language portal that packages the news more advertizers. Other sources of AsiaOne rev- content of Lianhe Zaobao and overseas Chinese enue include e-commerce transaction services newspapers with a host of web features and serv- (being one of the largest online shopping malls ices aimed at Chinese-speaking audiences around with more than 200 cyber stores) and voice serv- the world.

Box Table 2.2: Singapores top web sites

Ranked by time spent per person, July 2000

Property Unique audience Reach %Time per person

1. MSN 238,014 43.38 0: 42: 33 2. AsiaOne 80,652 14.70 0: 28: 50 3. Yahoo! 278,629 50.78 0: 26: 26 4. Pacific Internet 158,823 28.94 0: 12: 51 5. Singapore Telecom 217,377 39.62 0: 11: 57 6. Lycos 131,304 23.93 0: 09: 02 7. Excite@Home 66,351 12.09 0: 08: 31 8. AOL Web sites 146,486 26.70 0: 07: 07 9. AltaVista 81,404 14.84 0: 06: 56 10. Microsoft 107,175 19.53 0: 04: 23

Note: The data cover home Internet users. Source: ITU adapted from Nielsen//NetRatings.

15 Singapore Internet Case Study

2.3.2 Broadcasting Central. Channel 5 and 8 offer viewers round-the-clock English and Man- Singapore has a diverse broadcast darin mass entertainment and scene, despite the fact that it has tra- information programs respectively. ditionally been government-owned. In Sportscity offers sports fans sporting 1994, the Singapore Broadcasting action from around the world. Corporation was corporatized as the MediaCrop News owns and manages Singapore International Media Group CNA, which provides news and infor- (SIM) whose subsidiaries include all mation on global developments with the leading broadcasters: Radio Cor- an unique Asian perspective. In Sep- poration of Singapore (known as tember 2000, MediaCorp launched its MediaCorp Radio), Television Corpo- second feed, Channel NewsAsia (In- ration of Singapore and Singapore ternational), to cater to viewers out- Television Twelve. SIM underwent a side Singapore. MediaCorp TV also restructuring in 1999 and has been owns TVMobile, Singapores first out- renamed Media Corporation of Singa- door digital television channel, and pore. MDigital, which promises viewers the interactive television experience of the Radio future. In June 2000, the government announced that is was prepared to There are 18 FM radio stations on the grant SPH licenses to run up to two island of which twelve belong to Ra- free-to-air TV and two radio channels. dio Corporation of Singapore (RCS).14 Shortly after, SPH MediaWorks was RCS, now known as MediaCorp Radio, formed and announced that it would broadcasts in four languages, reach- start its commercial TV channels, TV ing about 2.5 million listeners a week. Works and Channel U, by May 2001. All RCSs stations are on Internet via its main web page . whereby all television set owners are required to pay an annual charge. Li- The Internet has provided a way for cense fees generated S$ 92 million new stations to overcome scarce FM (US$ 53 million) for SBA during its frequency by developing web sites 1999/2000 fiscal year, accounting for with audio broadcasts. For example, 88 per cent of revenue. Ironically, de- UTV Entertainment has webcasts with six video and strict littering laws, it seems that two audio-on-demand channels over around 20 per cent of Singapores the broadband Singapore One net households are evading license fees. work. MediaCorp Radio also operates Though television penetration is felt 20 NetRadio channels at . 758683 licenses at December 2000, accounting for 82 per cent of the Television households in the country.

There are currently six free-to-air tele- Singapore Cable Vision (SCV) was li- vision channels on the island. They are censed in June 199515. It was required Channel 5, Channel 8, Suria, Central, to cable all homes on the island by Sportscity, and Channel NewsAsia 1 January 2000 in return for a 7-year (CNA). Singapores largest terrestrial exclusivity franchise. The S$ 600 broadcaster, Television Corporation of (US$ 346) million hybrid fibre-coaxial Singapore (TCS), now known as network was completed in September MediaCorp TV , owns and manages SCV has a number of subscription pack- the entertainment channels, Chan- ages offering up to 40 cable channels nel 5, Channel 8, Sportscity, and the depending on the package chosen. Malay entertainment and information SCVs entry package, the Basic Tier, channel, Suria, as well as the one spe- costs S$ 33.94 (US$20) per month and cialized in programs for and on chil- includes free channels like the six local dren, Indian- and arts communities, terrestrial stations, two Malaysian ones

16 2. Information and Communication Technology markets

Table 2.5: Mass media indicators

,QGLFDWRUÃ 9DOXHÃ 6RXUFHÃ Daily newspaper circulation 1,068,942 1999. Statistics Singapore. Per 1’000 inhabitants 275 Television licenses 758’683 December 2000. SBA. Households with license 82% 923’300 resident households per Statistics Singapore at June 2000. Television households 896’000 1999. AC Nielsen. Households with TV 99% 1999. AC Nielsen. Cable TV subscribers 255’000 2000. SBA Households with cable TV 28%

Source: ITU adapted from sources shown.

and SCVs Preview Channel. There were 1999. There were 38000 MaxOnline some 255000 cable TV subscribers by subscribers in December 2000. The December 2000 or just over one quar- connection charge is S$ 51.50 (US$ 30) ter of all homes. and the monthly fee is S$ 76 (US$ 44) (S$ 56 for existing MaxTV subscribers). Following a three-year trial period since 1996, SCV launched a cable modem There is currently a ban on Direct-To- service called MaxOnline, in December Home satellite reception.

17 Singapore Internet Case Study

1 The compensation is based on the estimated loss of earnings from competition. SingTel was compensated S$ 859 million (US$ 495 million) and StarHub S$ 1082 million (US$ 623 million) for moving forward the date of full competition from 1 April 2002 to 1 April 2000. See IDA. IDA Announces Compensation to SingTel and StarHub. IDA Media Release. 11 September 2000. 2 Temasek also owns a Special Share which ensures that no major changes can be made to SingTel without its prior written approval. Temaseks web site is http://www.temasekholdings.com.sg 3 IDAs licensing and regulatory powers are granted under the 1999 Telecommunications Act. 4 M1. M1 SMS to rival networks now free. Press Release. 26 June 2000. 5 IDA. IDA Announces 3G Licensing Framework. Press Release. 20 October 2000. 6 IDC. Asian PC Market Surges to Over 14.1 Million Units in 1999, Says IDC. Press Release. 14 February 2000. http://www.idc.com.sg/Press/releases/PR-AP-PC_99.htm. 7 Overcoming a sense of isolation has been put forth as a prime reason for the keen interest of Singapores academic community to establish international computer connections. 8 Much of the history of the Internet in Singapore in this section is based on Bernard Tan. Origins of the Internet in Singapore (Part 1). envision (Singapore Broadcasting Authority). January-March 2000 as well as a forthcoming draft of Part 2 provided to us by Dr. Tan. 9 For example a number of the newly licensed ISPs such as Equant are global ISPs; their Singaporean operations are targetted at their global customers (many of which have their regional headquarters in Singapore). Others, such as DataOne, target the business community by providing value-added services in addition to plain ISP. 10 See Nielsen/NetRatings. Nielsen//NetRatings Announces First-Ever Multi-Country Internet Audience Measurement Results. Press Release. 4 May 2000. 11 NetValue. Asian Internet Users Come Out of the Closet. Press Release. 4 September 2000. www.netvalue.com/corp/presse/cp0013.htm 12 1-Nets web site is: http://www.1-net.com.sg/index.cfm. A network diagram is available at http://www.1-net.com.sg/images/aboutus/s-one/Network.gif and a schematic of the types of services is available at http://www.1-net.com.sg/images/aboutus/s-one/s1apps.gif. In September 2000, IDA announced that 1-Nets shareholders would sell their holdings to MediaCorp. See IDA. Industry Players Divest 1-Net shares to Mediacorp. Media Release. 27 September 2000. 13 IDA. Singapore One Reaches a Quarter of a Million Users. Media Release. 18 September 2000. 14 The AM radio frequency is not used. 15 SCVs owners are Media Corporation of Singapore (41.3%), ST Telecommunications (32%), and Singapore Press Holdings (26.7%) and its web site is .

18 2. Information and Communication Technology markets

3. Internet policy

3.1 Role of incumbent Internet access service. There is re- telecom operator markably little rancour among other ISPs despite SingTels advantages. One SingTel, the incumbent telecom opera- reason is that SingTel has agreed to tor, is deeply involved in the Internet.1 provide unbundled access to other Activities range from Internet service ISPs.4 Another reason is that though provision to one of the most extensive SingTel has made the lions share of in- international Internet backbones in the vestment in national and international world.2 SingNet, SingTels Internet sub- Internet connectivity, it has thus far sidiary, was the countrys first commer- peered with other national ISPs. cial ISP, launching service in July 1994. This early start has given it an advan- 3.2 Pricing tage as today it has the largest base of paying dial-up subscribers. Another ad- There are a range of Internet dial-up vantage is SingTels fixed telephone net- plans in Singapore. They revolve around work; in December 1999 it announced three models: that it would provide free Internet and e-mail accounts to all telephone sub- · Free Internet access but subscribers.3 SingTel benefits from dial-up scriber pays for telephone usage Internet traffic since users have to pay charges - S$ 0.84 (US$ 0.48) per local telephone charges. It has an hour peak, that is 8am to 6pm agreement with StarHub to share tele- weekdays - and S$ 0.42 phone usage charges for the latters free (US$ 0.24) per hour off peak;

Table 3.1: SingTels Internet Activities

$FFHVVÃ 6LQJ1HW P\VLQJQHWFRPVJ! ,63 6LQJ7HOÃ0DJL[ ZZZPDJL[FRPVJ! $'6/ P\VLQJWHO ZZZP\VLQJWHOFRPVJ! ,QWHUQHWÃDFFHVVÃIRUÃDOOÃ WHOHSKRQHÃVXEVFULEHUV HLGHDV ZZZP\VLQJWHOFRPVJ :$3 HLGHDVKWPO! ,QIUDVWUXFWXUH 1&6Ã0HGLDÃ+XE ZZZQFVFRPVJ! :HEÃKRVWLQJ &RQVXPHUÃ&RQQHFW ZZZFRQVXPHUFRQQHFWF %&ÃHFRPPHUFH RPVJLHKWP! 6LQJ7HOÃ,; ZZZL[VLQJWHOFRP! ,QWHUQHWÃWUDIILFÃH[FKDQJH ,'6DIH ZZZLGVDIHFRPVJ! &HUWLILFDWLRQÃDXWKRULW\ &RQWHQW /\FRVÃ$VLD VJO\FRVDVLDFRP! 3RUWDO

6(6$0LFRP ZZZVHVDPLFRP! (SURFXUHPHQW

Source: ITU adapted from http://home.singtel.com/about/eactivities/eactivities.asp, December 2000

19 Singapore Internet Case Study

· Monthly Internet access fee for Figure 3.1: Who is the cheapest? a certain number of hours of use with no telephone usage charges; Dial-up Internet access charges including telephone and usage charges, selected countries, June 2000, US$

· Monthly Internet access fee plus telephone usage charges. 35 ,QWHUQHWÃDFFHVVÃFKDUJHVÃÃKRXUVÃ86ÇÃ-XQHÃ 30 The free Internet plan generally works 3.97 7HOHSKRQH out the cheapest so it is unclear why 25 anyone would opt for a paid subscrip- 11.49 ,63 20 tion unless they are really heavy us- 5 15 ers. A price comparison among Asia-Pacific countries for 30 hours per 10 month of Internet access is shown in 7.11 5 10.9 Figure 3.1. At 30 hours of use, Singa- pore has the lowest dial-up charges 0 compared to selected ISPs in the Asia- Australia Indonesia Malaysia N. Zealand Singapore Pacific region (Figure 3.1).6

Source: ITU adapted from Sources shown. Broadband access services available in Singapore include conventional leased

Figure 3.2: SingTel IX

November 2000

Europe 6 M USA 402 M Cambodia Brunei Thailand (102 M – 2Q 00) (777 M – 2Q 00) 256K 15 M 3.5 M

Nepal Philippines Pakistan Japan 2.2 M 57 M 2.2 M 57 M

Hong Kong StarHub Internet 53 M

Pacific Internet Taiwan 49 M

SingNet 6LQJ7HOÃ,; Australia 40 M (55 M – 1Q 00)

DataOne Malaysia 22 M (56 M – 1Q 00)

C&W Internet China 51 M

Bangladesh Korea 2 M 53 M

New Zealand Laos Macau Sri Lanka New Caledonia 2 M 64 k 256 k 2 M 2.3 M

Myanmar Vietnam UAE Indonesia India 128 k 2 M (8 M – 1Q 00) 2 M 14 M (30 M – 1Q00) 36 M (105 M – 1Q00)

Source: http://www.ix.singtel.com/services4.html.

20 3. Internet policy

Table 3.2: Internet access prices

Dial-up Internet access charges for 30 hours of use per month, Singapore, June 2000, Singapore Dollars, not including tax

&KDUJHÃIRUÃÃKRXUVÃÃ SHUÃPRQWKÃ ,63Ã 3ODQÃ -RLQLQJÃ 0RQWKO\Ã )UHHÃ ([WUDÃ ,63ÃÃ 7HOHÃ 7RWDOÃ IHHÃÃ IHHÃÃ KRXUVÃÃ KRXUÃÃ SKRQHÃÃ 7/ 8/ Free off-peak 0 0 0 0 0 12.6 12.60 7/ 9/ Free average 0 0 0 0 0 18.9 18.90 SingNet Plan II 40.00 24.95 35 3.00 24.95 0 24.95 7/ 10/ Free peak 0 0 0 0 0 25.2 25.20 Pacific Easy Access 39.95 19.95 40 2.95 19.95 18.9 38.85 Plus StarHub Unlimited 29.95 19.95 11/ 0 19.95 18.9 38.85 Pacific Unlimited 39.95 29.95 11/ 0 29.95 18.9 48.85 SingNet Plan I 40.00 9.50 13 3.00 60.60 0 60.60 Pacific Easy Access 39.95 4.95 13 2.95 52.15 18.9 71.05 2000 SingNet Plan Lite Surf 40.00 3.50 0 3.00 93.5 0 93.50 Pacific Surf N Save 39.95 2.95 2 2.95 85.55 18.9 104.45

Note: 1/ Connection fee for signing up with the service. 2/ Monthly fee for subscription-based packages. 3/ The number of free hours included for subscription-based packages. 4/ Amount to pay for exceeding free hours. 5/ The monthly ISP fee plus extra hour fee if applicable. 6/ Telephone usage charges where applicable S$ 0.84 (US$ 0.48) per hour peak - 8am to 6pm weekdays - and S$ 0.42 (US$ 0.24) per hour off peak. For subscription-based packages, an average of S$ 0.63 (US$ 0.36) per hour has been used. 7/ StarHub and SingTel offer free Internet access (telephone charges are applicable). The joining fee for StarHub is S$ 29.95 (US$ 17). 8/ Free Internet access based on off-peak telephone usage. 9/ Free Internet access based on average of peak and off-peak (15 hours each) telephone usage. 10/ Free Internet access based on peak-rate telephone usage. 11/ Unlimited usage. Source: ITU adapted from ISP data.

lines, Integrated Services Digital Net- more suitable for those downloading work (ISDN), Asymmetric Digital Sub- multimedia files while the volume- scriber Line (ADSL), and cable based plan is more appropriate for modem. ADSL and cable modem are those engaged in general web surf- being promoted as consumer ing. SingNet is also exploring unlim- broadband access services in Singa- ited access to local sites arguing that pore. They are cheaper than conven- an unrestricted flat rate package is not tional offerings such as leased lines feasible due to the high cost of inter- or ISDN but on a strict per price com- national Internet connectivity. parison, more expensive than dial-up Internet access. Cable modem access In November 2000, IDA announced is a better value (e.g., unlimited use) that in February 2001 it would auc- and more comparable to international tion five lots of spectrum for Fixed pricing than ADSL (see Table 3.3).7 Wireless Broadband (FWB) as yet an- In November 2000 SingNet introduced other alternative to high speed flat rate, volume-based packages for Internet access. Most FWB technology ADSL. These packages allow unlimited is based on Local Multi-point Distri- use up to between 250 1000 Mega- bution Services (LMDS) that theoreti- bytes. After those limits have been cally can provide speeds of up to passed, users are charged S$ 2.95 155 Mbps. In January 2001, IDA an- (US$ 1.7) per ten Megabytes. SingNet nounced a delay in the auction until states that the time-based package is after May based on input from poten-

21 Singapore Internet Case Study

Table 3.3: Broadband Internet pricing

September 2000, US$

([WUDÃ 7D[HVÃ 0RQWKO\Ã ,63Ã 7\SHÃ &RQQHFWLRQÃ +RXUVÃ +RXUÃ ,QFOXGHGÃ SULFHÃ 6&9Ã &DEOHÃ Ã 8QOLPLWHGÃ Ã

Note: Converted to US$ at June 2000 exchange rates. 1/ For existing cable television subscribers. Source: ITU adapted from ISP data.

tial bidders who stated they needed Market entry into the Internet access more time to assess the technical fea- provision market was further sibility and market situation. One liberalized from 1 April 2000along problem has been a deterioration of with full telecommunication market quality when it rains, something that openingwhen the one time license happens quite often in Singapore. fee was changed to a yearly payment of one per cent of annual gross 3.3 Regulatory issues revenue or a minimum of S$ 10000 per year. 3.3.1 ISP As with telecommunication ISP service falls under IDAs Service- liberalization, Singapore has Based Operator (SBO) Individual li- progressively eased the conditions for cense category.8 The license is called providing Internet access. Two new an Internet Access Service Provider ISPsPacific Internet and Cyberway (IASP). This type of license allows the (now StarHub Internet)were licensee to establish, install and licensed in September 1995 to maintain a public Internet access fa- compete with SingNet, Singapore cility for the Telecoms ISP. They were provided provision of with a five year license (renewable on public In- Table 3.4: ISP Quality of a 3 yearly basis) in exchange for a ternet access Service conditions one-time S$ 450000 (US$ 259000) services.9 license fee and an annual payment of There were one per cent of annual gross turnover 36 IASP li- 3DUDPHWHUÃ 426Ã6WDQGDUGÃ subject to a minimum of S$10000 censes at Network availability over 99.5% (US$ 5765). This trio had the market February System accessibility to themselves until October 1998 2001. ISPs - Dial-up access over 95% when IDA lifted its ban on market must seek - Leased-line access over 99% Service Activation Time entry. The combination of the relati- IDAs ap- from date of receipt of vely high license fee, small market proval for application size, and restrictions on foreign in- pricing and - Dial-up access 3 working days vestment attracted only one new meet certain - Leased-line access 7 working days entrant. In September 1999, the minimum foreign equity limit of 49 per cent was quality of Source: IDA. lifted, attracting an additional two service lev- ISPs, Cable and Wireless and UUNet. els. This in-

22 3. Internet policy

cludes 99 per cent network availabil- 3.3.2 Top level domain name ity, 95 per cent dial-up availability and processing dial-up applications within The Singaporean top level domain three days and leased lines within one (ccTLD .sg) is administered by the Sin- week. gapore Network Information Centre (SGNIC) . SGNIC An SBO (Individual) licence is neces- was formed in October 1995 to take sary to provide international Internet over domain name management from access and traffic exchange. Singa- TechNet when it was sold to pore Telecommunications was the sole Sembawang Media (establishing Pa- Internet Exchange Service Provider cific Internet). SGNICs present mem- (IXSP) until June 1999 when this mar- bers are the three original ISPs and ket segment was opened. As of Feb- IDA. Singapore follows a traditional ruary 2001, there were 18 IXSPs. scheme for second-level domain names (i.e., .com, .gov, .edu, .net, In the past, peering was not much of .org) with very specific registration re- an issue since there were only three quirements.13 A recent addition is the ISPs and they agreed to exchange personal (.per) second-level domain traffic through the Singapore One that allows applicants to use their own broadband network. Whether this situ- name for web site addresses (e.g., ation will continue is uncertain given www.yourname.per.sg). The fee for the growing competitiveness of the registering a domain name is S$ 60 ISP market. (US$ 35) per year. According to the Internet Software Consortium, there Groups such as cybercafés, hotels and were 148249 hosts using the .sg do- others are allowed to resell Internet main name in January 2000. Although access without having to apply for a practically all government-related or- license since they would normally be ganizations use the .sg domain name provided service by a IASP. They are there is some evidence that busi- not allowed to price service higher nesses are also using the three-letter than the rates of the IASP. .com for their web sites. According to Network Solutions, one of the regis- Singapore has been at the forefront of trars for the .com top-level domain, the campaign for equitable cost shar- Singapore ranks twentieth in .com ing of Internet circuits to the United registrations (although behind a States. Foreign ISPs have traditionally number of other Asia-Pacific econo- borne the full cost of the Internet cir- mies including the Republic of Korea, cuit to the United States. As a result US Japan, Australia, India, China and ISPs can provide access to Internet sites Hongkong SAR). Singaporean laws ap- around the world for their users with- ply to web sites using the .sg domain out having to pay for the costs. In Janu- regardless of whether they are physi- ary 1999 SingTel, along with seven cally located in the country. other Asian telecom operators, signed a resolution encouraging US ISPs to 3.3.3 Internet Protocol (IP) share the cost of the international telephony Internet link.10 In May 2000, the Sin- gapore Minister of Communications and Prior to full liberalization of the tel- Information Technology urged a meet- ecommunication market in April 2000, ing of the Asia-Pacific Economic Coop- only SingTel could provide IP-based eration (APEC) to support equitable telephony services as this was con- sharing of international Internet links.11 sidered a voice service. The one ex- A moral victory of sorts was obtained in ception was computer-to-computer October 2000 when the World Telecom- telephone calls between two Internet munication Standardization Assembly users. With market liberalization, a the body that proposes principles for new Internet-Based Voice and/or international telephone chargingen- Data Service class license was cre- dorsed a recommendation that calls for ated. Any organization can offer more equitable cost sharing of interna- Internet based voice or data serv- tional Internet connections.12 ices provided they have a license and

23 Singapore Internet Case Study

Figure 3.3: Calling choices gov .sg/work/sba/ internet.nsf/pages/ SingTel overseas calling plans Doc21>. This license contains the regulatory requirements for both Ç 2QHÃPLQXWHÃFDOOÃWRÃ86 ISPs and Internet Con- 86ÇÃ-XO\Ã tent Providers (ICPs). There is an automatic licensing framework and ,QWHU no need to obtain prior QDWLRQDOÃ Ç approval from SBA. 'LUHFWÃ However, ISPs eventu- 'LDO 9R,3 Ç ally need to register with SBA, after being granted 3&SKRQH a license by IDA and within two weeks of op- 9 H9RL] erating their service. ICPs do not need to register with SBA unless Source: ITU adapted from SingTel. their web pages are primarily set up to promote political or religious abide by a minimum quality of service. causes. ISPs pay an annual license fee At mid-September 2000, there were ranging from S$ 100 (US$ 57.7) to 70 companies that had been licensed S$ 1000 (US$ 577), depending on the to provide Internet-Based Voice Serv- type of service they are offering. ices. Internet Access Service Providers (IASPs) and non-localized Internet serv- While many incumbent telecommuni- ice resellers who have more than cation operators have been leery of 500 user accounts pay an annual licence Internet-based telephone calls, SingTel fee of S$ 1000 (US$ 577), while non- has launched a couple of IP telephony localized Internet service resellers with services that are significantly cheaper less than 500 user accounts and local- than its normal international tariff. eVoiz ized Internet service providers pay allows users to make a call from their S$ 100 (US$ 57.7) a year. PC to telephone subscribers in selected countries. A one-minute call to the US The SBAs content role is based on main- costs S$ 0.09 (US$ 0.05) compared to taining community social values and S$ 0.39 (US$ 0.23) per minute for In- racial and religious harmony in Singa- ternational Direct Dialling (IDD). SingTel pore. Its objective is to have minimal estimates that eVoiz will add ten mil- legislation and instead encourage indus- lion minutes a year of international traf- try self-regulation and public education. fic.14 SingTels V019 service, launched The SBA is responsible for ensuring that in August 2000, allows any telephone content broadcast on the Internet fol- user to make an international call over lows the Internet Code of Practice IP-based networks by dialling a special . The Code of Prac- US costs S$ 0.19 (US$ 0.11), almost tice identifies what the community half the normal IDD charge.15 regards as offensive, namely pornography, violence, racism and religious 3.3.4 Content slurs.

Internet content is regulated by the Sin- ICPs are liable for content that gapore Broadcasting Authority (SBA) as breaches the license restrictions men- part of its responsibility for all broad- tioned above. ISPs are not liable for cast media. SBAs regulatory framework content accessed through their con- for the Internet is embodied in the Sin- nection but are liable if they operate gapore Broadcasting Authority (Class Li- web sites for the public. SBA is con- cense) Notification 1996

24 3. Internet policy

terial to the public. Thus corporate , which was estab- Internet access for business use is lished in November 1999. PAGI pro- outside the scope of SBAs regulations, vides a support network for parents as is private communications (e.g. to share their ideas and concerns on electronic mail and instant guiding their children to use the messaging). The scope of the license Internet in a positive way. The PAGI covers all web sites physically located web site hosts an online discussion in Singapore, as well as content cre- forum for parents to exchange views, ated in Singapore. The SBA receives ideas, and experiences on safe surf- around a dozen complaints every ing and best practices. PAGI has con- month. Once the SBA receives a com- ducted workshops in various plaint, the content provider is in- languages to cater to the multilingual formed and typically takes the community. These workshops also necessary steps to make its web site help parents themselves to use the conform with the regulations. Internet.

As a symbolic gesture initiated by the For the most part, SBAs Internet con- government to indicate its concern tent role is passive in that it mainly re- over dissemination of pornography, sponds to complaints. Its preference is SBA obligates ISPs to block out for the industry to be self-regulating. 100 pornographic web sites. SBA has The fact that Singapore has tried to do also provided funding to ISPs for them something about controversial content to provide family subscriptions. These has led to the incorrect impression that subscriptions are operated through Internet use is restrictive in the coun- proxy sites that prevent access to por- try. The reality is quite different, as of- nographic and other controversial sites ficial content control is innocuous. On using commercial filtering services the other hand, the major efforts Sin- such as CyberPatrol and SmartFilter gapore is making to develop content . SBA also sup- gapore as a multilingual Internet hub ports content classification using the are to be applauded (see Box 3.2). Platform for Internet Content Selection (PICS) system developed by the World 3.4 Universal access Wide Web consortium. It urges content providers in Singapore to support Universal access takes on new mean- this effort by labelling their sites, as ing for a country with near universal part of industry self-regulation. telephone service and among the highest home PC and Internet access Since the introduction of Internet con- rates in the world. Although there is tent regulation in 1996, SBA has been not a precise measurement of home consulting with the community and telephone availability, evidence sug- industry so that it can fine tune its gests it is close to 100 per cent.16 policies to promote and facilitate the Close to 60 per cent of the islands growth of the Internet. SBA empha- homes have a PC and 42 per cent have sizes public education and awareness Internet access, the highest rates in since there is a limit to what domestic the world (see Figure 3.4). SingTel has legislation can achieve in the face of provided all its residential telephone a borderless medium like the Internet. subscribers with a free Internet ac- Through organizing exhibitions, con- count. If one assumes that all of the ducting talks for the public and work- homes with a PC also have a telephone ing with schools, libraries and line, then 59 per cent of Singapores community organizations, SBA strives households can theoretically access to build awareness. SBA also aims to the Internet for the price of a local educate parents on the tools that are telephone call. available for them to better supervise their childrens use of the Internet. The small size of the island coupled SBA works closely with a volunteer with widespread public Internet ac- group called the Parents Advisory cess at schools and community cen- Group for the Internet (PAGI) tres and a scattering of cybercafés

25 Singapore Internet Case Study

Figure 3.4: Whose homes are most connected?

Household PC and Internet penetration, 1999

,QWHUQHWÃXVHÃE\ÃODQJXDJHÃVSRNHQ Don’t use Use +RXVHKROGÃ3&ÃSHQHWUDWLRQÃ +RXVHKROGÃ,QWHUQHWÃSHQHWUDWLRQÃ 100%

Singapore 59%80% Singapore 42% 60% USA 54% USA 40% 40%

20% 146 Australia 47% 669 Australia186 44 22% 0% 2 Japan 42% Chinese MalayJapan Tamil Other13% English

Source: ITU adapted from IDA.

structural or economic (the country is Asias second wealthiest after Japan) but more social and cultural. This includes convincing people that the Internet is relevant. For example, the 1999 IDA Information Technology Household Survey found that the main reason homes did not have Internet access was there was no perceived need for it (47 per cent) compared to only 16 per cent that found it too ex- suggests that no one is very far from pensive. Other reasons included not the Internet if they need it. There- having the appropriate hardware (ten fore universal access is complete. per cent) and not knowing how to use Awareness of the Internet is also the Internet (four per cent). Ten per high; a 1998 survey found that over cent of respondents indicated that 90 per cent of Singaporeans were they were planning to get Internet aware of the Internet. All the cur- service soon. rent dot-com publicityincluding buses and cabs displaying URLs In an effort to get more Singaporeans suggests that awareness of the online, IDA announced a three-year Internet today is probably close to S$ 25 million (US$ 14 million) pro- 99 per cent. gram targeted at low-income households, different ethnic groups and the Therefore problems with access to the late adopters of infocomm technol- Internet are not primarily infra- ogy. 17 Projects include donation of used computers with free Internet access and basic training to some 30000 low-income households as well as providing free broadband access to Sin- gapore One at community centres and promoting Internet kiosks (see Box 3.1).

A profile of the Singaporean home Internet user reveals the same sort

26 3. Internet policy

Figure 3.5: Internet and language

,QWHUQHWÃXVHÃE\ÃODQJXDJHÃVSRNHQ Don’t use 1HYHUÃXVHÃ,QWHUQHWÃE\ÃODQJXDJH Use 100% 99.4% 100.0%

80% 58.5% 61.9% 60% 44.5% 40%

20% 146 669 186 44 0% 2 English Chinese Malay English & English or Chinese Malay Tamil Other English only only only Chinese Chinese

Note: The charts show the share of population and Internet use by language spoken rather than ethnic group. Source: ITU adapted from CABSAT/NETWATCH.

of Digital Divide that exists in other that do not (see Figure 3.5). It also pays nations.18 There are more males (57 per to be literate in more than one language. cent), users tend to be young (the age Around 55 per cent of Singaporeans group with the highest share are those who understand English and Chinese aged 20-29 while those over 50 account are online compared to 38 per cent of for only five per cent) and well-educated those who are literate in either Chinese (over 60 per cent have post-secondary or English but not both. Most remark- education). What is striking is the break- ably, there are hardly any Internet us- down of Internet use by language; those ers amongst those who speak only who do not speak English well have a Chinese or Malay. The government is much lower level of usage. For exam- working to overcome these linguistic ple almost half of Singaporean adults barriers by promoting the development that are literate in English are on-line of content in different languages (see compared to around one third of those Box 3.2).

Box 3.1: Kiosking Singapore

One has to look hard to find cybercafés for their on-line purchases. The I-One Net in Singapore since there is already a high portal hangs off of the Singapore One level of Internet access from work, broadband network and although it is ac- schools and homes. According to one cessible to anyone with Internet access, source, only two per cent of Singaporeans the kiosks help to push I-One Nets brand use cybercafés to access the Internet. name. In addition to on-line advertising This has not deterred i-One Net Interna- and transaction fees, I-One Net also tional, a Singaporean media company, makes money from off-line advertising from installing Internet kiosks across the by allowing merchants to display adver- island to reach out to the unwired. By tisements on the kiosks. I-One Net is pre- July 1999, they had rolled out around paring a second generation of kiosks that 500 public kiosks along the main retail will contain new features such as video- and tourist area of Orchard Road as well cams at department stores, larger moni- as shopping centres, government build- tors and on-line chatting. Because ings, community centres and schools. Singapore is so wired, I-One Net is tak- The kiosks are linked to I-One Nets main ing its public access experience abroad. portal that provides local information such as where In China, I-One Net is developing a number of public to shop and eat. Kiosk users can also purchase items Internet access franchises in Shanghai, Guangzhou, over the Internet using credit and bank cards to pay and Beijing.

27 Singapore Internet Case Study

Box 3.2: Multilingual Singapore

Widespread use of English in the educational, lation is less than a quarter million, TISCs efforts health, government and corporate business sector are reaching the 65 million Tamil speakers around has contributed to Singapores high Internet ac- the world. Singapore is also hosting the secretariat cess since most Internet content is in English. How- for a world body that is promoting the develop- ever, the majority of the islands citizens speak other ment and use of Tamil on the Internet. The Inter- languages at home. The government is making national Forum for Information Technology in Tamil strong efforts to promote content in local languages. (INFITT) is made up of Tamil speakers from Aus- These include Chinese, Malay and Tamil Internet tralia, India, Malaysia, Singapore, Sri Lanka, Swit- initiatives. zerland and the US. INFITT will develop standards and help develop the Tamil Internet. It will also The National Chinese Internet Pro- serve as a coordinating body for gramme (NCIP) provides hands-on worldwide efforts in Tamil con- training for Chinese Internet and tent creation, especially for edu- exhibitions to raise awareness of cational use. According to one Chinese Internet. NCIP has devel- government official, promoting oped a Chinese portal (Chinese and popularizing the role of the WebTop or Hua Zong Wang). The Tamil Internet to non-English potential of tapping into the huge speaking Tamil Singaporeans Chinese-speaking market in Asia is will further IDAs aim of narrow- also driving private initiatives to ing the digital divide. 19 develop content. Singapore Press Holdings online version of its Chinese-language The Malay Internet Steering Committee (MISC) was newspaper, Lianhe Zaobao, claims to be the number established in May 2000 to promote the develop- one Chinese portal in South East Asia. It hosts over ment and use of ICT among the Malay community. 2000 home pages and averages between one-two The MISC is supported by a Panel of Advisors, com- million hits a day, with 70 per cent coming from prising experts in culture, language, technology and mainland China. commerce. Formed under the auspices of IDA, the committees role is to advise IDA and MCIT in the The Tamil Internet Steering Committee (TISC) was areas of developing local Malay Internet content established in April 2000 under the auspices of IDA, and culture-based programs, the promotion of e- to act as Singapores focal group in the develop- commerce and Malay Internet usage; and trans- ment of Tamil Internet . It forming Singapore into a global multilingual Internet organized one of the largest conferences on the hub. The MISC will also facilitate the bringing to- Tamil Internet in Singapore in July 2000 with some gether of partners in content creation and public 20000 visitors. Although Singapores Tamil popu- education projects.

28 3. Internet policy

1 Internet and data services are growing and are now the second largest source of SingTels revenue. Commenting on its June 2000 quarterly results, SingTel notes: Revenue from Public Data & Private Network increased by 51.1 per cent to S$243 million as Internet usage within and out of Singapore continued to surge. This segment, which includes leased circuits and data services, has become the Groups second largest revenue contributor at 19.8 per cent, up from 13.4 per cent a year ago. SingTel. The SingTel Groups unaudited results for the quarter ended 30 June 2000. Press Release. 28 July 2000. 2 A list of SingTels Internet services can be found at: http://home.singtel.com/about/eactivities/eactivities.asp. 3 SingTel. Free Internet for every SingTel home and business. Press Release. 12 December 1999. 4 For example it has offered wholesale prices for its ADSL service to other ISPs. See SingTel. SingTel to offer broadband access service to ISPs. Press Release. 7 June 2000. 5 Free Internet access generally has limited features. However, SingTels free service provides an 8MB e-mail account and 12MB of user storage. 6 However, after 30 hours of use, New Zealand would be the cheapest country in the region for home Internet access since residential users do not pay for local telephone calls. 7 There are arguments about whether ADSL or cable modem is better. One functional advantage of ADSL is that there is no need for a second telephone line since you can talk and surf at the same time. Cable modems can theoretically send out data at 128Kbps and download it at 1.5Mbps while ADSL speed in Singapore is 512Kbps each way. However actual speed is dependent on backbone bandwidth and in the case of cable, how many users are on the same connection. Complaints about service have led IDA to look into quality of service issues for broadband networks. See IDA. IDAS Response To Public Feedback on SCV Cable Modem. Press Release. 13 April 2000. 8 The list of services that can be provided under an SBO (Individual) licence include International Simple Resale, Internet Access Services, Internet Exchange Services, Virtual Private Network and Managed Data Network Service. 9 IDA. The Regulatory Environment for the Provision of Public Internet Access and Internet-Related Services In Singapore. 3 February 2000. 10 SingTel. Asia Pacific Carriers Campaign for the US to Share Cost of International Internet Link. Press Release. 26 January 1999. 11 Ministry of Communications and Information Technology. Singapore Calls for an End to Unfair International Charging Practices for Internet Services. Press Release. 26 May 2000. http://www.mcit.gov.sg/p_00_05_26.html. 12 ITU. Major Decisions reached at World Telecommunication Standardization Assembly. Press Release. 6 October 2000. http://www.itu.int/newsroom/press/releases/2000/22.html. 13 For example, .com is for commercial companies registered with the Registry of Companies and Businesses, .org for not profit organizations registered with the Registry of Societies, .gov is for members of the Singaporean government and.edu for educational organizations registered with the Ministry of Educations. See http://www.nic.net.sg/sgdom.html. 14 SingTel. SingTel introduces eVoiz, a PC to Phone service. Press Release. 6 March 2000. 15 SingTel acknowledges that the quality of IP-based calls is inferior but notes While the V019 call quality may be somewhat below our 013 BudgetCall service, our target customers will still find it acceptable and very much value-for-money. SingTel. Say hello to easy and cheap international calls with V019. Press Release. 30 July 2000. 16 One of the reasons that there is no official statistic on home telephone ownership is that it is assumed everyone has one. For example SingTel notes: Almost all Singapore homes have basic telephone services and about 12 per cent of households have more than one DEL. SingTel. Full Financial Report. 1996/1997. 17 See Helping Singaporeans Go Online. IDA Press Release. 1 March 2000. Available on the IDA web site at www.ida.gov.sg. 18 1999 IT Household Survey. 19 Tamil Community on the Web. Singapore Wave (IDA publication). 15 September 2000.

29 Singapore Internet Case Study

4. Information & Communication Technology & the Nation

4.1 Government ants use the government e-mail system while the government Intranet The Singaporean government is in- attracts 50 million hits a year. volved with Information and Commu- nications Technology (ICT) in three One notable application is Govern- ways. One is as a user in its own right. ment eBusiness (GeBiz) The second is as a provider of elec- , launched in tronic government services to the pub- June 2000. GeBiz is an on-line por- lic. The third is as a promoter of tal for the governments business- ICTor as the Singapore government to-business dealings. The Ministry of likes to call it, infocommunications Finance intends to transfer all pro- on the island. curement processes that can be put online to GeBiz. The system inte- 4.1.1 Government as user grates financial and procurement The Singapore government was an systems of government ministries early adopter of ICT. In 1981, it intro- and agencies, allowing users to duced a Civil Service Computerization browse supplier catalogues and pur- Program to train all public employees chase products. It also displays pro- in the use of Information Technology. curement requirements of different In 1998, the Ministry of Defence government ministries and agencies launched the worlds first Internet- for potential suppliers. based government procurement system. Today the Singaporean 4.1.2 Government as provider government is recognized as one of The government is actively developing the most computerized in the world. and promoting electronic services de- Singapores some 30000 public serv- livery with the objective of creating an e-based society. All minis- Figure 4.1: e-citizen tries have a web presence, integrated through the governments central portal which averages over three million hits per quarter. As of June 2000, about 450 public services were available online. Within the next three years, all government over- the-counter procedures should be on- Source: , December 2000. line. One example of a

30 4. Information & Communication Technology & the Nation

successful application is the online frastructure and through public-pri- submission of income tax forms. So vate sector collaboration. A portion of far, about one quarter of all tax re- this fund will be set aside to develop turns have been filed on-line through programs to give civil servants in- the eFiling service provided by the depth understanding of how ICT tools Inland Revenue Authority. One incen- impact the countrys economic and tive has been allowing a one-week ex- social situation. tension for tax forms filed online. One of the success factors of One of the governments most signifi- eGovernment initiatives is the strong cant projects is eCitizen (www. coordination between ministries and ecitizen.gov.sg). The aim is to create the key leadership roles of the Minis- a single portal providing a plethora of try of Finance and IDA. The Ministry government services. The eCitizen of Finance has the financial muscle to portal is a window to public services. secure top management commitment Services are organized according to across government agencies and min- life events, rather than by depart- istries while IDA assists with techni- ments or agencies. As citizens travel cal support. down the road of life, they can stop at buildings that line the road. The 4.1.3 Government as promoter buildings represent topics such as family, housing, health and education. The government has historically Each topic integrates information from played an active role in economic plan- various government agencies. For ning and investment in several sec- example, the Family topic, has in- tors, including IT. The success of this formation on Care for the Elderly central control has been due in large from the Ministry of Health, while in- part to a unique policy, which attracts formation on Getting Married comes and retains outstanding civil servants. from the Ministry of Community De- In the 1980s, the government turned velopment. A user could find out how its attention to IT, beginning with the much a marriage license costs, where 1981 Civil Service Computerization to file the application and even sub- Program. In 1986, a Committee on mit it online. eCitizen was launched in National Computerization was formed April 1999, offering 16 service pack- to create a national IT plan. In 1992, ages and 108 electronic services. The the IT2000 plan was published, call- eCitizen portal aims to offer more than ing for the construction of a broadband 60 service packages and more than infrastructure; common network serv- 200 services by April 2001. ices (such as directories, security, au- thentication, and billing); experiments with applications; forging international The design of eCitizen allows each strategic alliances with industry lead- agency to keep its own web site but to ers in Japan, Europe and the US; and display the content by function. The establishing a policy and legal frame- new approach is accomplished by inte- work on issues like data protection, grating information and services from privacy, copyright and intellectual various government agencies. This inte- property rights, and the admissibility grated approach requires government of computer-imaged documents in agencies to adopt customer orientation court.1 In 1997, the Ministry of Edu- and strong coordination efforts. cation created an ambitious five-year plan for IT-based education (see sec- The Singaporean government will tion 4.3). spend S$ 1.5 billion (US$ 0.86 billion) on e-Government related programs in A number of government or govern- the next three years. It is adopting a ment-linked organizations were also flexible approach seen in its readiness established in the IT area: to challenge traditional methods of system procurement and implemen- · The National Computer Board tation and assumptions of delivering (NCB), playing the key role in public services on private sector in- strategic planning;

31 Singapore Internet Case Study

· 1-Net, a consortium originally was published in July 2000 . Singapore ONE, the islands ATM backbone; and In addition to planning, government agencies and government-linked cor- · The Economic Development porations make direct investments and Board, charged with attracting offer subsidies in technologies and capital and brainpower. ventures they wish to advance.

With the completion of the IT2000 plan, One might expect this deep govern- government leadership in IT has accel- ment involvement in planning, selec- erated. In December 1999, the NCB and tion of technology, granting of the Telecommunication Authority of Sin- incentives and direct investment to gapore (TAS) merged, forming the result in inefficient resource allocation Infocomm Development Authority and corruption. While the allocation (IDA), a statutory board under the Min- of resources has not been perfect4 , istry of Communications and Informa- there is no denying that Singapore has tion Technology. Next, the government made very impressive strides in IT and accelerated the introduction of full mar- other sectors of the economy. This is ket competition in telecommunications confirmed by various surveys pitting by two years, from 1 April 2002 to Singapore against other countries (see 1 April 2000, and lifted foreign equity Table 4.1). Government intervention limits for all public telecommunications in the market has been successful licenses. Between 1994 and 1999, the because it has been accompanied by government budget for communication a unique civil service policy, coupled and IT services grew from S$ 44.9 mil- with the consensus spirit of lion (US$ 25.9 million) (0.5 per cent of Singaporean society. the budget) to S$ 458 million (US$ 264 million) (3.3 per cent of the The government recruits the best and budget).2 It also invested more than the brightest, pays them well, and of- S$ five billion (US$ 2.9 billion) over the fers performance-based incentives. same period in ICT (see Figure 4.2). The mission of the Public Service Di- IDA is now working on a series of vision of the Office of the Prime Min- Infocomm Technology Roadmaps in ister is to build a first-class public consultation with industry and service for a successful and vibrant academia.3 The first of these reports Singapore, and their motto is peo-

Figure 4.2: Putting the money where the mouth is

Singapore government expenditure and investment for ICT, 1995-1999, S$ millions

*RYHUQPHQWÃ,&7ÃH[SHQGLWXUHÃ6ÇÃP *RYHUQPHQWÃ,&7ÃLQYHVWPHQWÃ6ÇÃP S$500 3.5% $S2’000 20% As % of total 3.0% S$400 18% 2.5% $S1’500 15% S$300 2.0% 13% $S1’000 10% 1.5% S$200 8% 1.0% $S500 5% S$100 0.5% 3% S$0 0.0% $S0 0% 1995 1996 1997 1998 1999 1995 1996 1997 1998 1999

Source: ITU adapted from Singapore Department of Statistics.

32 4. Information & Communication Technology & the Nation

Table 4.1: Ranking Singapore

Singapore's rank in selected international surveys, 2000

6XUYH\Ã 6LQJDSRUHÃ5DQNLQJÃ 5HPDUNVÃ *OREDOÃ&RPSHWLWLYHQHVVÃ ÃRXWÃRIÃÃ :RUOGÃ(FRQRPLFÃ)RUXPÃVWXG\ÃWKDWÃPHDVXUHÃWKHÃ 5HSRUWÃ IDFWRUVÃWKDWÃFRQWULEXWHÃWRÃWKHÃIXWXUHÃJURZWKÃRIÃDQÃ HFRQRP\Ã HEXVLQHVVUHDGLQHVVÃÃ ÃRXWÃRIÃÃ (FRQRPLVWÃ,QWHOOLJHQFHÃ8QLWÃUDQNLQJVÃPHDVXULQJÃWKHÃ Ã KLJKHVWÃUDQNHGÃ UHODWLYHÃSUHSDUHGQHVVÃRIÃWKHÃZRUOG VÃPDLQÃPDUNHWVÃ $VLD3DFLILFÃFRXQWU\ Ã IRUÃWKHÃHEXVLQHVVÃHUDÃ ,QIRUPDWLRQÃ6RFLHW\Ã ÃRXWÃRIÃÃ :RUOGÃ7LPHV,'&ÃUDQNLQJÃE\ÃZKLFKÃQDWLRQVÃDUHÃ ,QGH[ÃÃ PHDVXUHGÃDFFRUGLQJÃWRÃWKHLUÃDELOLW\ÃWRÃDFFHVVÃDQGÃ DEVRUEÃLQIRUPDWLRQÃDQGÃLQIRUPDWLRQÃWHFKQRORJ\Ã :RUOGÃ&RPSHWLWLYHQHVVÃ ÃRXWÃRIÃÃ ,QWHUQDWLRQDOÃ,QVWLWXWHÃIRUÃ0DQDJHPHQWÃ 6FRUHERDUGÃÃ 'HYHORSPHQWÃ ,0' ÃVWXG\ÃRQÃWKHÃFRPSHWLWLYHQHVVÃ RIÃQDWLRQVÃLWÃDVVHVVHVÃDQGÃUDQNVÃKRZÃDÃQDWLRQ¶VÃ HQYLURQPHQWÃVXVWDLQVÃWKHÃFRPSHWLWLYHQHVVÃRIÃLWVÃ ILUPVÃ

Source: ITU adapted from WEF, EIU, World Times and IMD.

ple our pride, service our pledge, and matic, though, and IT is adopted once integrity our core . Good students are at- to have real benefits. tracted initially through a program of university scholarships.5 Government 4.2.1 Ministry of Health salaries are reviewed annually to en- Utilization of information technology is sure that they are competitive with the pervasive at the Ministry of Health private sector. Civil servants receive (MOH).7 There is Internet access from bonuses when the economy does well, every desktop at the headquarters. and innovation and excellence are en- Polyclinics and hospitals are connected couraged by significant bonuses based to the Internet. The Ministry web site on individual accomplishment. There is provides a wealth of information rang- also the Enterprise Challenge, a S$ 10 ing from listings of all medical practi- million (US$ 5.77 million) fund for in- tioners on the island to links to the novative proposals that have the potential to create new value or significant improvements to the delivery of public service. Finally, lifelong learning is a Table 4.2: Singapore's priority with a variety of training pro- health infrastructure grams and a program to identify and Number of health facilities and develop leadership. The net result is that medical personnel, 1999 civil service positions are prestigious and sought after. Thus, government planning and investment in IT (and other Hospitals/Specialised Centres 26 areas) is conducted by well qualified, Hospital Beds 11742 motivated, and corruption-free civil Family Health Service Clinics 18 servants making industrial quality decisions.6 Public Sector Dental Clinics 205 Doctors 5325 4.2 Health Dentists 942 Nurses/Midwives 15947 Singapores health sector has been Pharmacists 1043 making steady progress in the use of IT. Singaporean hospitals are considered to be the best in the region. The health Source: Singapore Ministry of Health. sector approach to IT remains prag-

33 Singapore Internet Case Study

government StoreFront where health- Self-Help: Consumers are able to help related publications are sold online. One themselves by getting medical informa- hospital has a service called Ask a tion on the Internet. Nurse, whereby the public can receive medical consultation via asking ques- Research: The Internet has provided tions online. The national Health Edu- a wealth of information for the medical cation Department also offers a service community. It has facilitated access to called Ask an Expert, where users can information, which would not otherwise send queries about health concerns. be so easily available without the Internet. The MOH also has various web-enabled applications: Education: Consumers are becoming more knowledgeable. The patient does Continuous Medical Education not simply accept doctors explanations; . This project, some of them are even questioning implemented in collaboration with the Sin- doctors decisions. However, this has gapore Medical Council, enables doctors introduced another problem. The doc- to earn points based on their participa- tor is not seen as the sole authority. tion at medical seminars, reading jour- People can be misled by information nals, attending conferences, etc. in order they encounter over the Internet, which to maintain their on-going certification. may lead to under-treatment, mistreat- ment or self-treatment, all of which may School Health Screening Pro- have negative repercussions for the pa- gram . This system screens students in primary and secondary schools. IT at your Fingertips: The Internet Upon entry into the school system for the has allowed doctors and nurses to eas- first time, every child is registered in a ily grasp technology. The simplicity and database. An electronic notification is au- ease of use of the Internet has allowed tomatically sent to students schools prior information technology to be easily in- to immunization due dates. Medical-re- tegrated in the workplace. lated information is tracked for each student and can be downloaded to the school 4.2.3 E-Commerce from the MOH database. There are no regulations preventing A similar system, the Elderly Screening drugs from being sold over the Internet, Program, is currently underway for which the public sees as an attractive those 55 years and older. Over a period opportunity since it is more convenient of three years, 380000 people will be and cheaper to buy medicine online in screened. They are tested for choles- comparison to many retail outlets (some terol, glucose, hypertension and other add a 20 per cent premium). symptoms that affect the elderly. Re- ferral letters are automatically gener- 4.2.4 Scepticism ated, indicating actions to be taken for a particular patient. Singapore takes a very practical approach to health care applications and eCitizen has thus far been sceptical about the The MOH is currently working to develop concrete benefits of trendy applications service packages that can be delivered such as e-procurement and over the governments e-Citizen portal. telemedicine. Some Singaporean health There are currently four services avail- personnel questions whether e-procure- able: elderly care, hospital services, ment dramatically reduces costs. Al- dental care and healthy lifestyles. though there are estimates of savings between 20-30 per cent, it seems that 4.2.2 Impact of the Internet on some 60 per cent actually result from the workplace an improvement of internal processes. Regarding telemedicine, there is a pilot The Internet is viewed as having a ma- project using an ISDN connection to jor impact on both the health commu- connect a hospital to a polyclinic for nity and users: transferring x-rays. However, demand

34 4. Information & Communication Technology & the Nation

has been low. In a small place like Sin- 4.3.1 Higher Education gapore, it is far cheaper for the doctor to go directly where he/she is needed Universities in Singapore have a long, than to use telemedicine to transfer an successful history of Internet connec- x-ray. Another telemedicine application tivity and application. They are active involves a private Singaporean hospital participants in international network- and Johns Hopkins Hospital in the U.S. It based research, and have many excel- uses video-conferencing to exchange real- lent teaching programs. The latter time medical data and consultation. Pa- produce many of Singapores network- tients pay for it on an as-needed basis. ing professionals and the government Singaporean doctors do not favourably and institutions of higher education view telemedicine as a means for diag- work together to anticipate and supply nosis. X-rays are better viewed in person IT manpower. as opposed to being digitally viewed on a screen. Online resolution levels have not University Connectivity yet reached those of film. The colour of a lump, for example, cannot be as clearly As in many nations, the university com- viewed on a screen. munity pioneered computer networking in Singapore. The Computer Centre of 4.3 Education the National University of Singapore (NUS) had a Strolling around the campus of the Na- BITNET connection in 1987. In 1990, tional University of Singapore (NUS), they established an IP network, one notices many students with port- TechNet, with Gopher and WAIS serv- able computers plugged into jacks by ers. NUS established a web site in 1993. tables in common areas. This is an in- In 1995, TechNet was spun off, forming dication that the Internet is well estab- a commercial Internet service provider, lished in higher education. The Pacific Internet.8 After TechNet was sold, universities are connected and make the NUS Internet Research and Devel- good use of the Internet in teaching and opment Unit (IRDU) used the funds for research. While several nations can a variety of research and development make similar claims for higher educa- projects. In 1997, IRDU (now the Cen- tion, what sets Singapore apart is its tre for Internet Research) joined forces with Kent ondary schools and the use of IT in the Ridge Digital Labs , and the Network Technology Re-

Table 4.3: Singapore at school

Number of educational institutions, students and teachers, 1999

,QVWLWXWLRQV 6WXGHQWV 7HDFKHUV

1XPEHU Total 384 622,372 31,318 Primary Schools 199 300,153 12,132 Secondary Schools 152 173,007 9,210 Pre-University 16 25,032 1,841 Institute of Technical Education1 10 16,390 1,449 Polytechnics 4 57,126 3,422 National Institute of Education 1 3,317 511 Universities 2 47,347 2,753

Note: Figures for primary, secondary and pre-university exclude private schools. Figures for institutions of higher learning include part-time students and teachers. 1 Refer to full-time teaching staff and students. Source: Statistics Singapore.

35 Singapore Internet Case Study

search Centre of Nanyang Technological Uni- cess Point (STAR TAP) in the United versity (NTU) to States . Through form SingAREN, the Singapore Ad- STAR TAP, the Singapore research and vanced Research and Education Net- education community has access to work . Internet 2 and other research net- SingAREN is a national initiative to works in the US, Canada and Europe. create a high-speed network to sup- The Asian links tie them into the Asia port R&D and advanced technology Pacific Academic Network . academia, research organizations and industry. As usual in Singapore, SingAREN has government and commercial ties. SingAREN connects 30 higher educa- SingAREN is funded by the NSTB and tion and research institutions within the IDA. It is also connected to Sin- Singapore . There are 2 Mb/s services can be developed and tested international links to Japan, Korea and in an experimental environment then Malaysia and a 15 Mb/s link to the Na- deployed for commercially. SingAREN tional Science Foundations Science is also responsible for supporting Sin-

Figure 4.3: SingAREN Network Configuration

Source: http://www.singaren.net.sg/html/netmap.html, December 2000.

36 4. Information & Communication Technology & the Nation

gapore ONE in using new broadband ing and biological research communi- technology and protocols. The com- ties, and feels increasing emphasis on mercial relationship is captured in the the commercialization of research at SingAREN acceptable use policy, which the university. states: Meeting Singapores Manpower SingAREN is mainly intended for collabo- Needs rative research projects requiring high speed communication links between Over 20 universities, polytechnics, and local universities/research institutes/ other higher education institutions centres, and their counterpart organi- offer degrees in more than 75 ICT pro- sations overseas. However, develop- grams ranging from practical skills to ment oriented projects, which have high research. The quantity and quality of relevance e.g. developing enabling tech- these programs reflects the nologies for Singapore ONE are also Singaporean commitment to ICT. strongly encouraged. . the IDA monitors and plans ICT manpower requirements via a biennial sur- The close ties between the academic vey. The latest survey, conducted during and commercial communities are fur- the second half of 1999 found that ther illustrated by the experience of 52 per cent of ICT employees have a the Bioinformatics Centre . The Centre provides ters, and 0.2 per cent a doctorate. informatics service to the global biol- About 30 per cent have polytechnic di- ogy community, teaches and conducts plomas. The number of ICT jobs is ex- research. In addition to these tradi- pected to grow at a rate of 10-12 per tional functions, it is encouraged to cent, from 92800 at the end of 1999 to produce commercial spin-offs. To date, 114000 by the end of 2001. The great- they have spun off BioInformatrix, Kris est growth is expected in e-commerce Technology and Bioinformatics Tech- (47 per cent) and Internet development nology Group, and several others are (24 per cent) (see Figure 4.4, left). The being developed. The Director of the survey also showed that CEOs planned Centre, Tan Tin Wee, was also a to increasingly meet training demands founder and early leader of TechNet. using Web and computer-based instruc- He remains active in both the network- tion (see Figure 4.4, right).

Figure 4.4: ICT manpower needs and training

ICT manpower categories with expected biggest growth 1999-2001, and Utilization levels of training methods

Consultancy/Business 2.2 13% Web-Based Analysis 4.5 Software Research & 14% Development Computer- 2.3 Based 4.2 Specialist Support 15% Services 3.9 Classroom Internet Development 24% 4.1

1999 Current Utilization Level e-commerce È 2001 Excpected Utilization Level

Note: In the right chart, 1 = no utilization, 10 = very high utilization. Source: IDA 1999 Infocomm Manpower and Skills Survey.

37 Singapore Internet Case Study

A National Manpower Council (NMC) was working technicians build the network formed last year to do integrated man- and applications, their work must be power planning for the economy preceded by a perceived need, by de- . At their inaugural meet- what the Internet can do and are capa- ing, the NMC set new targets for univer- ble of using it. As we have seen, Singa- sities and polytechnics. For example, NUS pore is doing well with respect to and NTU were advised to expand their educating IT professionals, and, as we intakes of Engineering and Computer Sci- see in this section, it is one of the most ence students for the academic advanced nations in the world with re- year 2000/01 by about four per cent. The spect to computer availability and train- NMC also initiated a variety of IT training ing at the primary through junior college and career conversion programs, and levels (see Figure 4.5).10 training incentive programs for industry. The Ministry of Education (MOE) The universities have also acted on their has had an inter- own. Notably, there are new degree pro- est in IT since 1980s when they installed grams in e-commerce. NUS offers an e- administrative systems in the schools. commerce specialization in their MBA By 1994 there were roughly ten com- program, and starting with the July 2000 puters per school and some were be- term, their MBA core curriculum was re- ginning to connect to the Internet. In designed to incorporate e-business con- 1996, 100 computers were put in labs cepts and strategies. The Faculty of in each primary school, some of the Business and School of Computing also Junior Colleges were networked, soft- offers a joint undergraduate program in ware tools were developed for students e-commerce and will offer an MS in e- and teachers, and pilot tests were run business in July 2000 . of the Internet in teaching in a few schools. These preliminary, piecemeal 4.3.2 Pre-university Education efforts provided background experience the Master Plan and laid the groundwork for developing an integrated Master Plan. Trained and demanding users are a major determinant of Internet adoption Singapores IT2000 plan called for the and diffusion in a nation.9 While net- establishment of a broadband back-

Figure 4.5: Whose schools are most wired?

Number of students per computer, data released November 1999

Canada 11 6WXGHQW Canada 9 6WXGHQW FRPSXWHUÃUDWLRÃ FRPSXWHUÃUDWLRÃ Finland 16 LQÃSULPDU\Ã New Zealand 10 LQÃVHFRQGDU\Ã VFKRROV VFKRROV Singapore 17 Denmark 12

New Zealand 20 Singapore 12

Hongkong SAR 53 Japan 21

Japan 59 Taiwan-China 35

Taiwan-China 74 Hongkong SAR 36

Note: Based on 26 participating economies. Source: Singapore Ministry of Education.

38 4. Information & Communication Technology & the Nation

bone and availability of access for every in the use of IT. There is also an LCD Singaporean. If the people were trained projector in every classroom for com- Internet users, Singapore would be an mon viewing of local and remote ma- attractive test bed for developers of terial. Each school will also have a broadband applications. The plan also digital camera, video editing suite, anticipated widespread use of the scanner, and a science kit with trans- Internet for interaction between citizens ducers and motors and other effectors and the government, again requiring an for control systems. Equipment up- Internet-savvy citizen. Furthermore, IT grades and maintenance are budgeted skills were seen as necessary for pro- for, and a full time technology assist- ductivity in a global information ant is assigned to each school. economy, and it was felt that the utilization of IT could improve education in All teachers are provided with email general. Prime Minister Goh Chok Tong accounts and the Ministry has arranged summed up these premises by stating with ISPs to offer low-cost e-mail ac- Computers are changing the way we counts to pupils at all educational lev- work and the way we live . . . We will els. Computer purchase is also use IT to encourage students to learn subsidized for teachers. MOE will pay more independently, to learn actively, 20 per cent of the cost of a desktop and, in April, 1997, the MOE announced computer or 40 per cent of the cost of a five-year, S$ two billion (US$ 1.15 bil- a portable . (, This offer covers computers, modems, ). also the Edumall, an intranet for teachers with educational software libraries The Master Plan covers primary and and support for interest groups and the secondary schools and junior colleges. interchange of experience. Its goals are access to an IT-enriched school environment for every child, im- Curriculum development and proved linkages between schools and assessment the rest of the world, innovation in education, enhanced creative thinking, life- The entire curriculum is being revised long learning and social responsibility, to use technology effectively. It will fo- and excellence and efficiency in educa- cus on mastering concepts and skills, tion administration. Four general steps active and independent learning and were to be taken to achieve these goals: problem solving, and critical thinking providing physical and technological in- and communication, reducing the time frastructure, development of learning spent on acquiring factual knowledge. resources, curriculum revision and as- The emphasis will shift from receiving sessment, and teacher development. information to finding and managing it. Cutting rote material will save Physical and technological 10-30% of the time in the various cur- infrastructure ricula. The time saved will be used for different topics and emphasis and for The MOE decided to move away from the teaching of new material. IT-based general purpose computer labs and to instruction will increase from about emphasize networking and classroom 10-15% of the time today to 30% by connectivity. Equipment has been in- the end of 2002. stalled in phases, beginning with 22 schools in 1997. By the end of 2000, This curriculum reform has been influ- all schools will be on the Internet with a enced by developments in the US, Is- two or five Mbps links.11 There will be a rael and other nations. There will be networked computer for every five stu- awards for innovation in educational dents within secondary schools and jun- technology. For example, students are ior colleges. At the primary level, the being sent into the field with portable ratio is one computer for every 6.6 pu- computers, and assigned to create web pils. The goal is to reach a computer sites, demonstrating what they learned per two students by the end of 2002 upon return. Singaporeans are also for schools, which are more advanced active in the Think Quest competition

39 Singapore Internet Case Study

in which student teams develop cur- are approximately 25000 teachers in riculum . Sin- Singapore and all will have received gapore ranks second to the US in core training by the end of 2000. This participation and numbers of finalists entails between 30-50 hours of for- and winners. mal training with access to support personnel afterwards. Primary school While current modes of assessment teachers receive general training at remain relevant, MOE feels IT can fa- their schools and secondary teachers cilitate assessment of pupil competen- also receive discipline specific train- cies across more than one subject area ing. Training is provided by MOE per- and in several skills. Such assess- sonnel and experienced teachers. ments could include project work, Newly graduated teachers are being simulation software to assess pupils prepared for the new curriculum and ability to formulate and test hypoth- the use of IT. eses and their innovativeness, and self-assessment software for pupils to The MOE experience is that perhaps monitor their own learning. 20 per cent of the teachers are somewhat reluctant in the face of this train- Learning resources ing and curriculum change. However, The Master Plan allocates S$ 100000 MOE is confident that all will be won (US$ 57653) to each school for the over in time, and that students will purchase of software and on-line learn- add pressure by expecting IT to be a ing resources. MOE has a staff that significant part of the school experi- evaluates and recommends software ence. and web sites that are relevant to the curricula. Schools have autonomy to 4.3.3 Conclusion decide what material they want to use, Singaporean universities are among and the MOE has begun training teach- the most connected in the world. Their ers in the evaluation and selection of IT training programs are expanding in software. MOE also negotiates pub- an effort to keep up with manpower lisher discounts and has established demand and they have close ties to digital media repositories, accessible industry, government, and the inter- by both students and teachers. The national IT research community. Educational Software Procurement Scheme allows schools and teachers While university programs are out- to purchase software from authorized standing, Singapores primary-JC companies at a substantial discount program is unique. By 2002, there < www.moe.edu.sg/iteducation/ will be a 2:1 pupil-computer ratio in masterplan/schemes. htm>. IT advanced schools, every classroom in the nation will be connected In addition to purchasing software to the Internet and the high-speed packages, MOE will develop and co- Singapore ONE backbone, all teach- publish software which is needed but ers will have been trained to use IT not commercially available. For ex- and the Internet, all teachers and rd ample, programs dealing with students above 3 grade will have email accounts, and IT will be intro- Singaporean topics such as history duced in all subjects, and used in or programs in the Malay or Tamil thirty per cent of curriculum time. languages must often be developed from scratch. MOE is cooperating We stand to learn by watching this with IDA and the Economic Devel- experiment. By the time they leave opment Board of Singapore in fund- secondary school, students will have ing these efforts, and they are also acquired a variety of IT skills and ex- training a pool of educational soft- pectations, raising the possibility of ware development professionals. asking research questions like: What impact will this have on government Teacher development and industrial productivity? What Hardware and software cannot be in- sorts of applications will todays stu- tegrated into the curriculum without dents demand and invent? Which the support of a trained faculty. There skills will be important in Singapore

40 4. Information & Communication Technology & the Nation

Box 4.1: Future schools: Radin Mas Primary School12

From afar, Radin Mas gives no indication that it might nic motifs and themes such be one of the most wired primary schools in the world. as copying Chinese callig- Set amidst tropical vegetation in a middle class sec- raphy or adding batik back- tion of Singapore, it looks a bit like a military bar- grounds to black and white racks, long and sprawling. However, once a classroom Picasso backgrounds. is entered, you are in the school of the future. Com- These imaginative crea- puters proliferate like mushrooms. One room is full tions have won several of around two dozen transparent iMacs. Another is awards. filled with computers connected to midi-keyboards. Yet another is full of kids painstakingly recreating · Students are learning mu- Chinese calligraphy on computer screens. What is the sic through keyboards con- story behind all these computers? nected to computers. They can add different sounds to Radin Masnamed after the daughter of a Javanese existing music while viewing the musical score Lord, it means Golden Princess in Malaystarted in on the computer monitor. 1926 and moved to its present site in 1984. It has around 2000 students split into two daily sessions · Other applications include e-cards designed by (7:30am1pm, 1 pm-6:30pm). Radin Mas was des- children (e.g., Mothers day, Thank you, etc.), ignated as one of the six original Accelerating the a Postkid discussion list used by students and Use of IT in Primary Schools (AITP) by the Ministry of teachers to confer electronically and a cyber Education. The school has around 200 computers, a ratio aunt to whom kids can send an email when of roughly one computer per five students. Broadband they have problems. access to both the Singapore One domestic backbone and the global Internet is provided via ADSL lines. Access to the Internet is provided for both students and teachers. For example, the Kids matrix zone is Each grade has its own a place where kids who do not have computers at web page. Every grade home can go before and after school for free (and also has a computer- supervised) access to the Internet. The staff room related project ranging provides a location with computers hooked to a Local from cross-cultural e- Area Network for teachers to use e-mail, access the mail to visiting differ- Internet and carry out administrative tasks. ent countries by surfing the web, What will be the consequences of a heavy dose of through email and video-conferencing. Kids aged 9- computerization in primary schools? Will the already 11 have created a virtual zoo with a map and im- strong disposition towards myopia in Asian kids ages of different animals. around 60 per cent of first grade students in Singa- pore already wear glassesbe worsened? Will sitting Radin Mas is also using computers to teach traditional in front of computers encourage a sedentary lifestyle? subjects. It is perhaps easier to describe this by stating We witnessed half a dozen obese kids doing exer- what it is not about. It is not about using a computer to cises to a video during their recess as part of a man- teach math or science or using it as a reference tool dated program to reduce weight. Or will intense (e.g., online encyclopedia). It is not strictly teaching computer exposure how to use a computer (e.g., learning a programming create a new breed of language) although understanding how to use software cyber kid, one who such as Windows is an inevitable side effect. The focus uses the computer as is more on integrating computers into the learning and naturally as a pencil or creative process. Examples: a calculator, and armed with this intui- · Students are using Apple Macintosh computers tion, create unima- and Crayola Art as well as Kids Studio software gined future to create Digital Art. This includes using eth- applications?13

in 2020? What will be the cognitive view and temporal habits of children impact on children whose primary who take immediate global commu- contact with information is in ma- nication for granted? The chine-readable form, and who are Singaporean commitment to IT- proficient in image processing before based education presents us with an they write well? What of the world excellent opportunity for research.

41 Singapore Internet Case Study

4.4 Electronic commerce project with the former NCB but is today fully managed and run The Ministry of Communications and by the private sector. Information Technology and more spe- cifically IDA (and its predecessor or- · E-commerce infrastructure: ganizations), have launched various The government, IT industry initiatives and programs to promote partners and financial institu- electronic commerce in Singapore. A tions, have been developing in- point worth noting is that the govern- frastructure and services. For ment positions itself as ahead of the example Netrust was formed to community by determining trends and issue and manage digital keys future plans of the country and pro- and certificates to enhance con- viding support to local industry. fidence among online buyers and sellers. Other initiatives included 4.4.1 Electronic Commerce one of the first implementations Hotbed of the Secure Electronic Trans- action (SET) protocol, used for As early as August 1996, the govern- online credit card payments and ment, through the former National the C-ONE cash card allowing Computer Board (NCB) introduced the purchasers to make low denomi- Electronic Commerce Hotbed (ECH) nation online payments. Program to promote e-commerce and develop Singapore as an international 4.4.2 Electronic Commerce e-commerce centre. Key features of Master Plan the program included: The Electronic Commerce Master · EC Policy Committee: This Plan, launched in September 1998, committee was formed in Janu- followed the ECH Program.15 Con- ary 1997 to ensure that the ap- crete targets in the plan include propriate laws and regulations achieving S$ 4 billion (US$ 2.3) were developed for fostering e- worth of e-commerce revenue and commerce. Several study groups 50 per cent of businesses using were formed to analyze what e-commerce by the year 2003. Just laws might need to be introduced as the ECH, a policy committee made or amended in light of e-com- up of various government agencies merce. Recommendations in- and known as the Electronic Com- cluded the Electronic merce Coordinating Committee (EC3), Transactions Act (described be- has been created to oversee imple- low) as well as changes to laws mentation of the plan. and industry codes for computer security, copyright and privacy. The plan has five central points backed by specific programs and projects: · The Electronic Transactions Act came into force in July 1. Develop an internationally 1998.14 It provides the legal linked e-commerce infra- foundation for electronic trans- structure: This aims at actions and the recognition of partnering global expertise with electronic contracts and digital local partners to help build na- signatures. It also made provi- tional e-commerce financial and sions for government agencies logistics infrastructure. On the to accept electronic records Business-to-Consumer (B2C) without making any modifica- front, the Consumer-Connect tions to existing laws. The act service bureau provides secure also created a Controller to li- electronic transaction processing cense certificate authorities. services to web merchants and There currently are two certifi- digital content publishers. It al- cation authorities in Singapore. lows them to take advantage of The first, Netrust, was initially low set-up costs and hassle-free created as a joint-venture implementation to commerce-

42 4. Information & Communication Technology & the Nation

enable their business. On the commerce in the curricula of uni- Business-to-Business (B2B) versities and polytechnic insti- front, IDA has successfully tutes. The National University of teamed up global companies with Singapore has launched a Mas- local ones (e.g., Commerce-1 ters program in e-Business, a with Sesami.com) through the joint program of the Business Local Industry Upgrading Pro- School and the School of Com- gram (LIUP). puting. Nanyang Technological University also provides a Mas- 2. Jump-start Singapore as an ters program with a concentra- e-commerce hub: This initiative tion in electronic commerce. focuses on the sectors in which Public awareness is being raised Singapore has an inherent ad- through presentations at com- vantage as a hub as well as to munity centres and events such attract international companies as the e-Festival that took place to establish offices in the coun- March 2000.17 In an effort to be- try. Singapores advantages income a leader in the measure- clude a stable financial ment of e-commerce, infrastructure; an efficient trans- Singapores Department of Sta- port and logistics infrastructure; tistics hosted an international and strong telecommunications conference on this subject in De- connectivity and e-commerce in- cember 1999.18 frastructures. The aim is to transform Singapore from being a port 5. Harmonize cross-border e- to a portal. commerce laws and policies: The Singaporean government 3. Encourage businesses to use has been collaborating with ma- e-commerce strategically: jor trading partners to synchro- This initiative focuses on small nize e-commerce laws. It is and medium enterprises (SME) actively participating in interna- development and creation of lo- tional forums on e-commerce cal e-commerce expertise.16 related issues. Two bilateral SMEs are encouraged to utilize agreements have been signed. e-commerce for their core busi- One with Canada covers cross nesses. Several financial incen- certification where both countries tives and funding schemes are recognize respective countries available to help companies ven- digital certificates. A second with ture into electronic commerce Australia involves the develop- including tax concessions on off- ment of joint e-commerce shore income derived through e- projects. Singapore is playing a commerce. Another step was major role in the Asia-Pacific re- lifting restrictions on the import gion with regards to e-commerce of encryption products to further activities. The Asia Pacific Eco- enhance confidence among com- nomic Cooperation forum (APEC) panies conducting e-commerce in created an e-commerce Task Singapore. Singapore also aims Force in 1998. This taskforce is to attract foreign talent. Immi- co-chaired by Singapore and gration procedures have been Australia who have developed an facilitated for employees coming e-commerce plan to be imple- into Singapore to work in the ICT mented in the region. The Asso- sector. ciation of South East Asian Nations (ASEAN) e-commerce 4. Promote usage of e-com- arm (e-ASEAN taskforce) focuses merce through the public and on encouraging and facilitating private sector: This initiative the growth of e-commerce. It has aims to provide key public serv- formulated plans to accelerate ices online by the year 2001. This the development of e-commerce will be paralleled with mass edu- across the region and identified cation and incorporation of e- key factors, such as cyber laws,

43 Singapore Internet Case Study

Table 4.4: E-commerce in Singapore

HFRPPHUFHÃWUDQVDFWLRQVÃ ,QWHUQHWÃDFFHVVÃE\ÃFRPSDQLHVÃ S$ million Ã Ã Ã Ã B2B sales 955 1’600 1’800 Have Internet access 91% B2C sales 3 34 93 Have web site 46% Total 958 1’634 1’893 Engage in e-commerce 4%

Note: 1999 data are projections. Data based on top 1'000 Singaporean companies (by revenue) and top 1'000 IT companies. Source: Singapore Department of Statistics.

secure messaging infrastructure, with web sites were primarily used for payment gateways, and on-line advertising, getting feedback and car- services and products for regional rying out product searches. It is in- development. teresting to contrast those findings with another 1998 survey carried out 4.4.3 Profile of E-commerce by IDA. The IDA survey is based on a Activity random sample of 747 companies with data disaggregated based on estab- The Singapore Department of Statis- lishment size. It found that overall tics is one of the few national statisti- 80 per cent of the companies had cal agencies in the world developing Internet access; almost all companies a framework for measuring e-com- with more than 100 employees have merce. It launched a national survey access. Almost one in three compa- in February 1999 sent to the top 1000 nies (30.8 per cent) has a web site; companies in Singapore (based on this ranges from 29 per cent for en- turnover) as well as the top 1000 IT terprises with less than 25 employees companies. to 86 per cent among companies with more than 500 employees. The big- According to the survey, e-commerce gest barriers for e-commerce adop- transactions accounted for 0.1 per cent tion among the companys surveyed of the total turnover of the economy of were the cost and lack of IT exper- Singapore. However, e-commerce ac- tise. tivity is growing rapidly. The value of e- commerce transactions rose from According to IDAs 1999 IT Household S$ 958 million (US$ 552 million) in Survey, 11 per cent of Singaporean 1997 to S$ 1.6 billion (US$ 0.9 billion) Internet users have shopped online. in 1998. Business-to-business e-com- Of those, more than half made a pur- merce constituted the bulk of transac- chase. The median value of a purchase tions (98 per cent). was S$ 135 (US$ 78) . The most popular item purchased was books (39 per The survey also measured Internet cent) followed by computer-related access and usage among the compa- products (20 per cent), food (18 per nies with 91 per cent of the top 1000 cent) and movie and theatre tickets enterprises having Internet access. (16 per cent). Over 80 per cent of online The highest ratios were found in the purchases are made with a credit card; Retail Trade, Transport and Commu- twelve per cent are made by cash on nications and Manufacturing indus- delivery. The major reason for not shop- tries. Nearly half (46 per cent) of the ping online is a preference for physical top enterprises have their own web shops in order to easily compare prices sites. The study found that of those and other features.

44 4. Information & Communication Technology & the Nation

Box 4.2: AsiaStockWatch.com

AsiaStockWatch.com is a comprehensive finan- dication, advertising, sponsorship and e-com- cial web site, which empowers the growing popu- merce activities. Its parent company, SESDAQ- lation of increasingly sophisticated and listed Panpac Media.Com Limited, is a leading technologically-savvy investors. Through its In- home-grown publisher of special-interest maga- vestment Advisers License, it is regulated by the zines with offices in Singapore, Malaysia and Hong Monetary Authority of Singapore. AsiaStockWatch Kong. Panpac Media.Coms portfolio of more than provides timely and objective analysis of impor- 40 titles in three different languages covers a wide tant events affecting the local equity and finan- range of interests from IT and Internet to educa- cial scenes. Besides being an independent tion, personal investment and lifestyle. provider of financial and business information, it AsiaStockWatch is able to complement its online also offers a broad array of services and tools to activities with an offline presence by leveraging assist investors in managing their finance portfo- on the media experience of Panpac Media.Com. lio effectively. The company has a registered sub- To date it has successfully organized financial- scriber base of 45000. Revenue is derived from related seminars, exhibitions, talks with numer- retail and corporate subscriptions, content syn- ous financial institutions and organizations.

45 Singapore Internet Case Study

1 National Computer Board of Singapore, A Vision of an Intelligent Island, The IT2000 Report, SNP Publishers, Singapore March, 1992. 2 Singapore Department of Statistics, Government Finance, http://www.singstat.gov.sg/FACT/SIF/sif17.html. 3 IDA, Information Technology Roadmap, http://www.ida.gov.sg/website/IDAContent.nsf/ 14899db7846d2bcc482568360017c696/30818f31870d93b4c825691f000cbe02. 4 For example, in spite of significant subsidy and guaranteed procurement in the building of the Singapore ONE backbone and services, broadband utilization and applications have taken off slowly. Three years after the launch of Singapore ONE, there are only 47,500 DSL and cable modem subscribers, and approximately 150 Singapore ONE applications. (There were 64 pilot services in 1997). 5 There are 26 categories of scholarship for students in a variety of disciplines for studying in Singapore or abroad, http://www.gov.sg/psd/psc/award.html. 6 Singapores civil servants are renown for a lack of corruption. According to one survey, Singapore was the sixth least corrupt country out of ninety measured and the least corrupt in the Asian region. It is notably ahead of countries such as USA, Australia and Japan in this measure. See Transparency International. Transparency International Releases the Year 2000 Corruption Perceptions Index. Press Release. 13 September 2000. http://www.transparency.de/documents/cpi/2000/cpi2000.html#cpi. 7 The Ministry of Health web site is hosted off of the Singapore governments main web site: http://www.gov.sg/moh. 8 All early research and education networks have had to make a transition as a result of the commercial tidal wave which has swept over them, see, Press, L., Will Commercial Networks Prevail in Developing Nations?, OnTheInternet, Vol. 3, No. 2, March/April, 1997, pp 40-41, http://som.csudh.edu/fac/lpress/articles/commerc.htm. 9 Press, L. Developing Networks in Less Industrialized Nations. IEEE Computer. June 1995. 10 See Singapore Ministry of Education. Singapore Ranks Highly in the use of Information and Communication Technologies (ICT) in Education. Press Release. 19 November 1999. 11 MOE expects the connections to be in the 10-15 Mbps range within two or three years. 12 Two web sites are available for the school: http://www.moe.edu.sg/schools/radinmas and http:// www.rmps.moe.edu.sg. 13 Indeed, one problem is that the children are increasingly more IT-knowledgeable than teachers. See Peter Cordingley. Wired for Life. AsiaWeek. 12 May 2000. http://www.asiaweek.com/asiaweek/magazine/2000/0512/cover1.html 14 The text of the Electronic Transactions Act is available here: http://www.cca.gov.sg/eta/index.html. 15 See Singapore Launches Electronic Commerce Masterplan. NCB Press Release. 23 September 1998. 16 There is less Internet take-up by small and medium enterprises (SME)defined as firms of less than 200 employeesthan larger companies. The Local Enterprise Electronic Commerce Program, launched in November 1998, promoted SME adoption of e-commerce. SMEs could receive a grant of up to 50 per cent of project cost, including a connection to Singapore One. Moreover, the companies services were promoted to interested parties. Over 500 companies were provided assistance under this program. The program came to an end in December 2000 and has been replaced by a new one called e-Business Industry Development Scheme (eBIDS). See IDA & PSB Announce S$30 Million Incentive Scheme to Spur e-Business Development and Growth in Singapore. IDA Press Release. 19 October 2000. 17 eFestival Asia - An Enhanced Lifestyle For All. IDA Media Release. 22 February 2000 18 See the web pages for the Conference on the Measurement of Electronic Commerce at http://www.singstat.gov.sg/EC/echome.html.

46 5. Summary & recommendations

5. Summary & recommendations

5.1 State of the Internet in Singapore · connectivity infrastructure: a measure based on international The Mosaic Group (http://mosaic. and intranational backbone band- unomaha.edu/gdi.html), has devel- width, exchange points, and last- oped a framework for characterizing mile access methods. the state of the Internet in a nation. They consider six dimensions, each of · organizational infrastructure: a which has five ordinal values ranging measure based on the state of from zero (non-existent) to four the ISP industry and market con- (highly developed). The dimensions ditions. are as follow: · sophistication of use: a measure · pervasiveness: a measure based characterizing usage from con- on users per capita and the de- ventional to highly sophisticated gree to which non-technicians and driving innovation. are using the Internet. A definition of each dimension and its · geographic dispersion: a meas- levels is shown in Annex 4, and ure of the concentration of the Singaporean values for these dimen- Internet within a nation, from sions are shown below: none or a single city to nationwide availability. Pervasiveness is rated at level 4, Pervasive. Estimates of the number of · sectoral absorption: a measure users vary widely depending on fre- of the degree of utilization of the quency of use, access location, age Internet in the education, com- group and other factors. Surveys mercial, health care and public made between June-September 2000 sectors. put the number of Internet users at

Figure 5.1: State of the Internet in Singapore

Dimension Value Pervasiveness Pervasiveness 4 Geographic Dispersion 4 Sophistication Dispersion Sectoral Absorption 4 Connectivity Infrastructure 3 Organizational Infrastructure 3.5 Organizational Absorption Sophistication of Use 3.5

TOTAL 22 Connectivity

Note: The higher the value, the better. 0 = lowest, 4 = highest. Source: ITU adapted from Mosaic Group methodology.

47 Singapore Internet Case Study

anywhere between 14 43 per cent the United States. Besides conven- of the population. Government data tional dial-up for local Internet access, state that Singapore has the highest broadband access is available via household Internet access penetration leased line, ISDN, ADSL and cable in the world (42 per cent). modem.

Geographic Dispersion is rated at The Organizational Infrastructure level 4, Nationwide. The Internet is is at level 3.5, between Competitive available all over the island. Singa- and Robust. There is free entry to the pores small size of 660 square kilo- Internet Service Provider (ISP) mar- metres makes this dimension easy to ket. ISPs must be licensed and pay fulfil. Internet access is available to appropriate fees to the telecommuni- all telephone subscribers for the price cation regulatory authority. There of a local call. were 37 licensed ISPs in December 2000. ISPs are free to install their own Sectoral Absorption is rated at national and international infrastruc- level 4, Widely Used. The ranking is a ture. The ISP market has only been function of the type of connectivity in open to full competition for a relatively the education, business, government short period of time.1 Therefore a and health sectors. The university and ranking between competitive and ro- research and development community bust has been assigned until the new have high-speed connectivity to both regulatory and policy environment has the nationwide broadband network as proven itself. well as the second generation Internet. The Masterplan for IT in Edu- Sophistication of Use is at level 3.5, cation provides for Internet access between Transforming and Innovat- from every primary and secondary ing. There is a rising degree of sophis- school classroom by the year 2002. tication in the Singaporean Internet All teachers and pupils from Primary market. Hi-tech hubs such as Suntec 4 and above will be provided with City are attracting a growing number email accounts. Internet absorption in of dot-coms. Businesses are increas- the business sector is common. Almost ingly using the Internet to transform all firms with more than 100 employ- their internal and external interactions ees have Internet access. Over 80 per and e-commerce is active and grow- cent of those with less than 100 em- ing. The National University of Singa- ployees have Internet access. Over 60 pore has a connection to the second per cent of firms with more than 100 generation Internet and is carrying out employees have a web site. Govern- various Internet-related research ment absorption is high. All ministries projects while primary and secondary and statutory boards have web sites, schools are increasingly integrating there is a high degree of IT knowl- Internet applications into schoolwork. edge and use by government employ- A noteworthy government application ees and there is a government portal is the e-Citzen portal where users can for online citizen services. In the consult information and complete health sector, the Ministry of Health some forms online. The mass media as well as all hospitals and polyclinics has embraced the Internet with most are connected to the Internet. There newspapers and radio and television is a lower level of access among gen- stations online; there are also media- eral practitioners. based portals and audio and video streaming. Finally, there are a grow- The Connectivity Infrastructure is ing number of users and applications at level 3, Broad. The Singapore One on the broadband Singapore One net- national backbone uses Asynchronous work. Transfer Mode (ATM) technology over fibre optic cable at speeds of up to This framework has been applied in 155 Megabytes per second (Mbps). several other nations, including some The SingTel Internet Exchange (STIX) in the region. The dimension values has 400 Mbps of bandwidth to the for the Special Administrative Region Asia-Pacific region and 405 Mbps to (SAR) of Hongkong and Taiwan-China

48 5. Summary & recommendations

Table 5.1: State of the Internet in Singapore compared to other economies

Date P GD SA CI OI SU Total Source

Singapore 5-00 4 4 4 3 3.5 3.5 22 ITU Hongkong SAR 9-99 4 4 4 3 3 3 21 Mosaic Taiwan- China 9-99 4 4 3 3 3 3 20 Mosaic

Note: The following dimensions are considered: Pervasiveness (P), Geographic Disper- sion (GD), Sectoral Absorption (SA), Connectivity Infrastructure (CI), Organizational Infrastructure (OI), and Sophistication of Use (US). The higher the value, the better (0 = lowest, 4 = highest). Source: ITU, MOSAIC Group, .

are compared to Singapore below. All 15 per cent of general practitioners three rank practically the same with have PCs and they have been slow to similar strengths. Although Singapore adopt Internet access. A Singaporean ranked first, the surveys for the other health portal tried to promote its busi- two economies were done earlier. Fur- ness by giving doctors PCs bundled thermore, the qualitative nature of clinic management and medicine or- some of the dimensions makes a com- dering software. There is a feeling that plete accurate comparison difficult to this initiative has not been extremely achieve. Nonetheless, they suggest successful because general practition- that there is a tight race to become ers are not ICT-savvy. This suggests Asias regional Internet hub. there is a need to raise awareness and train general practitioners in ICT. 5.2 Recommendations The Ministry of Health is beginning to In a country as wired as Singapore, look at some of the regulatory issues recommendations for enhancing associated with ICT such as privacy, Internet diffusion may seem superflu- ordering drugs from overseas, etc. ous. Singapore appears to be doing There is a need to accelerate the pro- so much correctly and the government cedure for elaborating policies and a is an active supporter and promoter legal framework for health-related of Information and Communication Internet issues. There are also health Technology (ICT). But perhaps there concerns surrounding intense ICT us- is too much of a push. It may be use- age such as repetitive stress injury, ful to sit back for awhile and ponder isolation, bad eyesight, etc. There is the results and repercussions of an a need for research on the ergonomic increasingly wired society. Of course, impact of heavy ICT use. that is easier said than done since the Internet moves at lightening speed One focus of e-health applications on and there is competitive pressure to the island has been on creating elec- stay ahead of regional and global ri- tronic medical records in order to eas- vals in the race to become a premier ily deliver consistent information to ICT hub. Nonetheless, there are a few practitioners. One problem has been areas that merit attention. poor training in data entry. Another is that although much data is available 5.2.1 Health at hospitals, so far there is not a com- Although Singapores hospitals and mon island-wide system. There is a clinics are well wired, only around need to develop a standard, inte-

49 Singapore Internet Case Study

grated, up-to-date and verified medi- ing anecdote illustrates how ex- cal record for use by the entire isting procurement procedures Singaporean health community. work against e-commerce. Exist- ing procedures call for govern- The Internet has not yet progressed ment institutions receiving to being exploited routinely in the quotations from three different health community. The main applica- entities in order to make a pur- tions that are utilized are email and chase. This procedure defeats the information searching. A significant benefits of timeliness and effi- portion of the public and even some ciency of purchasing products doctors are still not aware of the online. Internets benefits. There is a need to get them used to the idea of using ICT 5.2.4 Pricing and developing basic skills before us- Dial-up Internet access tariffs are rela- ing more advanced applications. There tively low compared to other coun- is also a need to build awareness and tries. However, there is no flat rate to demonstrate value to the potential unlimited access plan combined with user. no local telephone usage charges. As a result, users remain conscious of the 5.2.2 Education time spent and are reluctant to stay Singapore has made impressive connected to experiment. This de- progress in educational access and use tracts from sophistication of use and of ICT. As a world leader in this area, innovation. Research suggests one of it would be useful to conduct research the reasons countries such as Canada, to determine the impact of ICT on cog- New Zealand and the United States nitive and social development. If the have such high Internet penetration island wants to create an Information levels is because they provide unlim- Society, then it needs to support con- ited Internet access plans and no lo- tinuous ICT training for its residents. cal telephone usage charges. Promoting attractive broadband con- Furthermore, broadband Internet ac- nectivity to educational applications cess (cable modem and ADSL) pric- from homes could facilitate this. ing is not particularly cheap, discouraging take-up. A related pric- 5.2.3 E-commerce ing issue is mobile where Singapores The government has done much to Receiving Party Pays system may ex- promote e-commerce. However, there plain why mobile take-up is lower than are still obstacles particularly relating in economies such as Taiwan-China, to awareness, lower rates of adoption Hongkong SAR or the Republic of Ko- by small and medium enterprises and rea. antiquated procedures. Recommenda- tions include: 5.2.5 Adult Literacy The one indicator that drags Singa- · Enhancing awareness of e-com- pore down in international compari- merce through wider dissemina- sons is literacy. While most developed tion of e-commerce success countries claim literacy rates of close stories. to 100 per cent, according to the UNDP, the adult literacy rate in Sin- · Encouragement of e-commerce gapore in 1998 was 91.8 per cent. by reducing the Goods and Serv- Statistics Singapore recently released ices Tax for online purchases. data from the June 2000 census show- ing adult literacy to be 93 per cent. · Incentives for online submission There is a close tie between literacy of government documents that and Internet use. Thus Singapore would trigger changes to inter- needs to improve its adult literacy rate nal business practices to become if it is to achieve a universal Internet more ICT-oriented. diffusion. Thus it is recommended that government infocommunications as- · Streamlining government pro- sistance target raising adult literacy curement practices. The follow- as a priority.

50 5. Summary & recommendations

5.2.6 Broadband example, there are varying estimates about something as basic as the Broadband penetration is surprisingly number of Internet users in Singapore. low considering the time it has been Yet another problem is that many sur- available to virtually the entire popula- veys refer only to the resident popu- tion. The major pitch behind SingONE lation of Singapore, missing out on the was to provide a test bed for forward growing number of non-citizens which thinking companies who would develop now account for almost twenty per broadband applications. Potential inves- cent of the population. Yet another tors were offered substantial incentives. limitation is that data is not centrally An objective assessment of programs available but must be obtained from such as SingONE should be conducted. numerous different sources. It is recommended that IDA, in conjunction with Statistics Singapore and others, 5.2.7 Market Research enhance its online data offerings and market research to deal with the is- There is a vast amount of easily avail- sues noted. able information for Singapore. For example, Statistics Singapore has a 5.2.8 Technical Assistance web site where it provides key statistics for free. IDA also provides some Singapore has much to teach other na- important subscriber-based telecom- tions about Information and Commu- munication statistics on its web site.2 nication Technology. It has been There are a number of market re- extremely successful at translating search companies that also provide government plans into realities. It is some data about the Singapore also at the forefront of broadband net- Internet market. However, there are working. Singapore is involved in the numerous limitations to the available ICT activities of regional and interna- data that hinder market analysis and tional organizations. However, its ICT hence policy-making. For example, status particularly as an atypical there are scarce publicly available sta- developed nation suggest that it tistics about market value. Another could play a larger role in efforts to problem is differences in data. For bridge the Digital Divide.

1 The Internet access service provision market was liberalized in October 1998, international Internet exchange services liberalized in July 1999 and foreign equity limits lifted in September 1999. 2 Hopefully IDA will be able to maintain the timeliness and completeness of the data as the number of operators increases.

51 Singapore Internet Case Study

Annex 1: List of meetings

61RÃ $SSRLQWPHQWÃ:LWKÃ 7LPHÃ 'DWHÃ 1. Prof. Bernard TanChairman, 1DWLRQDOÃ,QWHUQHWÃ$GYLVRU\Ã&RPPLWWHH. 1000-1100 July 24th 2000 2. Dr Soon Teck Wong, Director, Economic Accounts,6LQJDSRUHÃ 1100 - 1200 July 24th 2000 'HSDUWPHQWÃRIÃ6WDWLVWLFV 3. Mr Terence Seah,Chief Executive Officer,7KHÃ,QWHUQHWÃ&DOO&HQWUHÃ3WHÃ 1200 – 1300 July 24th 2000 /WG 4. Mr Daneel Pang, Acting Deputy Director, Technology Exploitation and 1400 - 1500 July 24th 2000 Mr Desmond See, Manager, Information Infrastructure Development, ,'$ 5. Mr Andrew Haire,Senior Director, Policy and Regulations, ,'$ 1500 – 1600 July 24th 2000 6. Mr Wong Wai Meng, Business Development Director, ,$VSLUHQHW3WHÃ 0900-1000 July 25th 2000 /WG 7. Mr Tan Yap Kwang, Director, Educational Technology,0LQLVWU\ÃRIÃ 1400-1500 July 25th 2000 (GXFDWLRQÃ 8. Associate Professor Chua Tat Seng, Department of Computer 1515–1615 July 25th 2000 Science,1DWLRQDOÃ8QLYHUVLW\ÃRIÃ6LQJDSRUH 9. Mr Kyong Yu, General Manager and Mr Lim Seow Tong, Deputy 0900-1000 July 26th 2000 General Manager, 6WDU+XEÃ 10. Ms Yap Siew Luan, Assistant Manager (Market Research and 1100-1200 July 26th 2000 Analysis), 63+Ã$VLD2QHÃÃ 11. Mr Darren Choo, Research and Planning Manager,6LQJDSRUHÃ 1400-1500 July 26th 2000 &DEOHYLVLRQÃ 12. Mr Leong Shin Loong, Chief Executive Officer (Multimedia Services), 1615-1515 July 26th 2000 6LQJDSRUHÃ7HOHFRPPXQLFDWLRQV and Mr Yeo See Kiat, Deputy Director (Sales & Marketing and Business Development), :KROHVDOHÃ,QWHUQHWÃ ([FKDQJHÃ%XVLQHVV 13. Mr Chiang Siew Kay, Chief Executive Officer, $VLD6WRFN:DWFK&RPÃ 0900-1000 July 27th 2000 3WHÃ/WG 14. Dr Choong May Ling,Director, Info-Communications Technology 1200-1300 July 27th 2000 Division and Mr Ng Cher Pong, Deputy Director, Info-Communications Technology Division, 0LQLVWU\ÃRIÃ&RPPXQLFDWLRQVÃDQGÃ,QIRUPDWLRQÃ 7HFKQRORJ\ 15. Ms Jenny Yeo, Principal, 5DGLQÃ0DVÃ3ULPDU\Ã6FKRRO 1330-1430 July 27th 2000 16. Ms Ling Pek Ling, Director, Policy and Planning and Mr Jason Hoong, 1500-1600 July 27th 2000 Assistant Director, New Media, 6LQJDSRUHÃ%URDGFDVWLQJÃ$XWKRULW\Ã 17. Associate Professor Tan Tin Wee, Director, Bioinformatics Centre, 1630-1730 July 27th 2000 1DWLRQDOÃ8QLYHUVLW\ÃRIÃ6LQJDSRUH 18. Mr Lim Chin Tong, Group Managing Director, and Ms Eileen Tan, 1000-1100 July 28th 2000 Personal Assistant to Managing Director, L2QHÃ1HWÃ,QWHUQDWLRQDOÃ 19. Mr Zoran Vasiljev, Vice President (Business Development), and Ms 1115-1215 July 28th 2000 Lena Lee (Business Development Executive), 6ZLIWHFKÃ$XWRPDWLRQÃ 3WHÃ/WG 20. Ms Vivien Chiam, Business and Partnership Development Manager, 1330-1430 July 28th 2000 and Ms Maria Ng, Senior Program Officer, ,'5& 21. Ms Lum Yoke Wah, Executive IT Manager, 0LQLVWU\ÃRIÃ+HDOWKÃ 1500-1600 July 28th 2000 Dr Colin Quek, Chief Information Officer, 1DWLRQDOÃ+HDOWKFDUHÃ*URXS, Ms Chng Wong Yin, Chief Information Officer, 6LQJDSRUHÃ+HDOWKÃ 6HUYLFHV

52 Annexes

Annex 2: Acronyms and abbreviations

APEC Asia Pacific Economic Cooperation Forum ASEAN Association Of South East Asian Nations ATM Asynchronous Transfer Mode DOS Department of Statistics ICT Information and Communication Technology IDA Infocomm Development Authority ISDN Integrated Services Digital Network ISP Internet Service Provider IT Information Technology LAN Local Area Network MCIT Ministry of Communications and Information Technology MITA Ministry of Information and the Arts MOE Ministry of Economy MOF Ministry of Finance NCB National Computer Board NSTB National Science and Technology Board NUS National University of Singapore NUS National University of Singapore PAGI Parents Advisory Group for the Internet SBA Singapore Broadcasting Authority SCV Singapore Cable Vision Singapore Dollar (S$) The currency used in Singapore. At 30 June 2000, one United States Dollar was equivalent to 1.73451 Singapore Dollars. SINGAREN Singapore Advanced Research and Education Network SME Small and Medium Enterprises SMS Short Messaging Service SPH Singapore Press Holdings TAS Telecommunication Authority of Singapore TDB Trade Development Board WAP Wireless Access Protocol WIPO World Intellectual Property Organization WTO World Trade Organization

53 Singapore Internet Case Study

Annex 3: Useful links

2UJDQL]DWLRQÃ :HEVLWHÃ 0DLQÃJRYHUQPHQWUHODWHGÃ,&7ÃRUJDQL]DWLRQV Ministry of Information and Communications Technology Infocomm Development Authority of Singapore Ministry of Information and the Arts Singapore Broadcasting Authority 0DLQÃ,&7ÃSURYLGHUVÃ Mobile One Pacific Internet Singapore CableVision Singapore Telecom StarHub 0DVVÃPHGLD Singapore Press Holdings MediaCorp %URDGEDQGÃQHWZRUNV Singapore One Singapore Advanced Research and Education Network $FDGHPLFÃ Ministry of Education National University of Singapore +HDOWK Ministry of Health (OHFWURQLFÃFRPPHUFHÃ IDA e-commerce site 3RUWDOVÃ Singapore government e-Citizen i-One.net AsiaOne 2WKHU Statistics Singapore

54 Annexes

Annex 4: Framework dimensions

7DEOHÃÃ3HUYDVLYHQHVVÃRIÃWKHÃ,QWHUQHWÃ Level 0 1RQH[LVWHQW: The Internet does not exist in a viable form in this country. No computers with international IP connections are located within the country. There may be some Internet users in the country; however, they obtain a connection via an international telephone call to a foreign ISP. Level 1 (PEU\RQLF: The ratio of users per capita is on the order of magnitude of less than one in a thousand (less than 0.1%). Level 2 (VWDEOLVKHG: The ratio of Internet users per capita is on the order of magnitude of at least one in a thousand (0.1% or greater). Level 3 &RPPRQ: The ratio of Internet users per capita is on the order of magnitude of at least one in a hundred (1% or greater). Level 4 3HUYDVLYH: The Internet is pervasive. The ratio of Internet users per capita is on the order of magnitude of at least one in 10 (10% or greater).

7DEOHÃÃ*HRJUDSKLFÃ'LVSHUVLRQÃRIÃWKHÃ,QWHUQHWÃÃ Level 0 1RQH[LVWHQW. The Internet does not exist in a viable form in this country. No computers with international IP connections are located within the country. A country may be using UUCP connections for email and USEnet. Level 1 6LQJOHÃORFDWLRQ: Internet points-of-presence are confined to one major population centre. Level 2 0RGHUDWHO\ÃGLVSHUVHG: Internet points-of-presence are located in at least half of the first-tier political subdivisions of the country. Level 3 +LJKO\ÃGLVSHUVHG: Internet points-of-presence are located in at least three-quarters of the first-tier political subdivisions of the country. Level 4 1DWLRQZLGH: Internet points-of-presence are located in all first-tier political sub-divisions of the country. Rural dial-up access is publicly and commonly available and leased line connectivity is available.

7DEOHÃDÃ6HFWRUDOÃ8VHÃRIÃWKHÃ,QWHUQHWÃ 6HFWRUÃ 5DUHÃ 0RGHUDWHÃ &RPPRQÃ Academic - primary and >0-10% have leased-line 10-90% have leased-line >90% have leased-line secondary schools, Internet connectivity Internet connectivity Internet connectivity universities Commercial-businesses >0-10% have Internet servers 10-90% have Internet servers >90% have Internet with > 100 employees servers Health-hospitals and >0-10% have leased-line 10-90% have leased-line >90% have leased-line clinics Internet connectivity Internet connectivity Internet connectivity Public-top and second tier >0-10% have Internet servers 10-90% have Internet servers >90% have Internet government entities servers

7DEOHÃEÃ7KHÃ6HFWRUDOÃ$EVRUSWLRQÃRIÃWKHÃ,QWHUQHWÃÃ 6HFWRUDOÃSRLQWÃWRWDOÃ $EVRUSWLRQÃGLPHQVLRQÃUDWLQJÃ 0 Level 0 1RQH[LVWHQWÃ 1-4 Level 1 5DUHÃ 5-7 Level 2 0RGHUDWHÃ 8-9 Level 3 &RPPRQÃ 10-12 Level 4 :LGHO\ÃXVHGÃ

55 Singapore Internet Case Study

7DEOHÃÃ&RQQHFWLYLW\Ã,QIUDVWUXFWXUHÃRIÃWKHÃ,QWHUQHWÃÃ Ã 'RPHVWLFÃEDFNERQHÃ ,QWHUQDWLRQDOÃ/LQNVÃ ,QWHUQHWÃ([FKDQJHVÃ $FFHVVÃ0HWKRGVÃ Level 0 1RQ None None None None H[LVWHQWÃ Level 1 7KLQÃ ≤ 2 Mbps = 128 Kbps None Modem Level 2 ([SDQGHGÃÃ >2 >128 Mbps 1 Modem – 200 Mbps -- 45 Mbps 64 Kbps leased lines Level 3 %URDGÃÃ >200 Mbps >45 Mbps More than 1; Bilateral Modem -- 100 Gbps -- 10 Gbps or Open > 64 Kbps leased lines Level 4 ,PPHQVHÃÃ > 100 Gbps > 10 Gbps Many; Both Bilateral < 90% modem and Open > 64 Kbps leased lines

7DEOHÃÃ7KHÃ2UJDQL]DWLRQDOÃ,QIUDVWUXFWXUHÃRIÃWKHÃ,QWHUQHWÃÃ Level 0 1RQH: The Internet is not present in this country. Level 1 6LQJOH: A single ISP has a monopoly in the Internet service provision market. This ISP is generally owned or significantly controlled by the government. Level 2 &RQWUROOHG: There are only a few ISPs because the market is closely controlled through high barriers to entry. All ISPs connect to the international Internet through a monopoly telecommunications service provider. The provision of domestic infrastructure is also a monopoly. Level 3 &RPSHWLWLYH: The Internet market is competitive and there are many ISPs due to low barriers to market entry. The provision of international links is a monopoly, but the provision of domestic infrastructure is open to competition, or vice versa. Level 4 5REXVW: There is a rich service provision infrastructure. There are many ISPs and low barriers to market entry. International links and domestic infrastructure are open to competition. There are collaborative organizations and arrangements such as public exchanges, industry associations, and emergency response teams.

7DEOHÃÃ7KHÃ6RSKLVWLFDWLRQÃRIÃ8VHÃRIÃWKHÃ,QWHUQHWÃÃ Level 0 1RQH: The Internet is not used, except by a very small fraction of the population that logs into foreign services. Level 1 0LQLPDO: The small user community struggles to employ the Internet in conventional, mainstream applications. Level 2 &RQYHQWLRQDO: The user community changes established practices somewhat in response to or in order to accommodate the technology, but few established processes are changed dramatically. The Internet is used as a substitute or straight-forward enhancement for an existing process (e.g. e-mail vs. post). This is the first level at which we can say that the Internet has "taken hold" in a country. Level 3 7UDQVIRUPLQJ: The user community’s use of the Internet results in new applications, or significant changes in existing processes and practices, although these innovations may not necessarily stretch the boundaries of the technology’s capabilities. One strong indicator of business process re-engineeering to take advantage of the Internet, is that a significant number (over 5%) of Web sites, both government and business, are interactive. Level 4 ,QQRYDWLQJ: The user community is discriminating and highly demanding. The user community is regularly applying, or seeking to apply the Internet in innovative ways that push the capabilities of the technology. The user community plays a significant role in driving the state-of-the-art and has a mutually beneficial and synergistic relationship with developers.

56 Annexes

Annex 5: Bibliography

IDA. IT Household Survey 1999. Available on the IDA web site under Infocomm Facts and Figures, Survey Results. IDA. Info-communications Technology (ICT) Usage Survey 1999. January 2000. Available on the IDA web site under Infocomm Facts and Figures, Survey Results. IDA. Infocomm Manpower & Skills Survey 1999. March 2000. Available on the IDA web site under Infocomm Facts and Figures, Survey Results. Ministry of Information and the Arts. inform.educate.entertain@sg: Arts & Media in Singapore. September 2000. http://www.gov.sg/mita/bksams.htm Nielsen//NetRatings. Singapore Internet Audience Activity for June 2000. Press Release. 4 Au- gust 2000. http://209.249.142.22/press_releases/pr_000804_sg.htm Press, Larry. The Internet in Singapore: A Benchmark Report. March 2000. Available at http://mosaic.unomaha.edu/SINGAPORE_2000.pdf Singapore Telecom. Annual Report. Various years.