SINGAPORE INTERNET EXCHANGE LIMITED (SGIX)

Transcription

1 SINGAPORE INTERNET EXCHANGE LIMITED (SGIX) Membership Policy and Pricing Mechanism (made pursuant to Articles 8 and 53 of the Articles of Association) (adopted at Annual General Meeting held on 28 June 2013)

2 Contents 1. PURPOSE OF THIS DOCUMENT 3 2. DEFINITIONS 3 3. REQUIREMENTS OF MEMBERSHIP 3 Conditions that must be met by new applicants 3 Conditions that must be maintained by all Members 4 4. FEES 4 2

3 1. Purpose of this document This document sets out: a. the requirements of being a Member in SGIX, which have been adopted by the Members of SGIX at a General Meeting, pursuant to Article 8 of the Articles of Association of the Company; and b. the pricing mechanism for fees payable by operators for connecting to the SGIX which has been adopted by the Members of the Company at a General Meeting, pursuant to Article 53(a) of the Articles of Association of the Company. 2. Definitions The following definitions are used throughout this document. SGIX the Singapore Internet Exchange; Company the company operating SGIX, a company limited by guarantee and incorporated in Singapore; Board the board of directors of the Company; Member a member of the Company, and/or a person who exchanges internet traffic through SGIX but is exempted from being a member of the Company pursuant to Paragraph 3.1 below 3. Requirements of Membership 3.1 Any person wishing to purchase services from SGIX must be a member of the Company, except for such persons or categories of persons as the Board shall exempt from this requirement, which include but shall not be limited to government bodies such as Ministries within the government, government departments, statutory boards, educational institutions, and companies directly or indirectly owned by the Government. Conditions that must be met by new applicants 3.2 It is intended that only persons with a legitimate interest in exchanging Internet traffic be admitted as Members. The conditions set out below must be met prior to admission of new Members: 3

4 a. New applicants must have an Autonomous System Number (ASN) as assigned by a Regional Internet Registry. b. New applicants must have the intention to, and be willing to agree to the MAA. c. Upon the applicant s agreement to the MAA, Members must exchange traffic with at least one other Member within three months. Conditions that must be maintained by all Members 3.3 The conditions set out below must be maintained at all times by existing Members: a. Members must subscribe to at least one port connection from SGIX. b. Members must have an Autonomous System Number (ASN) as assigned by a Regional Internet Registry. c. Members must at all times adhere to the Policies and Procedures. d. Members must exchange traffic with at least one other Member. 4. Fees 4.1 The pricing of services in SGIX is on a cost recovery basis. 4.2 The general procedure for calculating prices is as follows: a. Prices are reviewed once per year, when the financial accounts are available; b. Direct costs of offering a service are allocated to each service; c. Overhead costs are allocated to each service in proportion to the total direct costs of each service; d. For each service, allocated overhead costs and direct costs are added to calculate the total cost of offering that service; e. The total cost of the service is allocated according to the quantity supplied of the service to obtain the unit cost of the service; f. A margin is applied to the unit cost of the service, based on the retained surpluses recorded in the financial statements of the immediate previous financial year. If the previous year s retained surplus is below SGD 500,000, then the margin is equal to 5%. Otherwise the margin is equal to the retained surplus threshold (SGD 500,000), minus the retained surplus at the end of the previous financial year, divided by total operating expense as stated in the previous year s financial statements. The minimum margin shall be -20% in the case when the retained surplus is above the threshold value; g. Should the opinion of the Board be that the calculated cost recovery price is too high, a percentage discount may be applied to the resultant prices, to be applied equally across all services, at the discretion of the Board. h. For the first five years of operations, the price shall be set at the forecast cost based price, based on the estimated costs and membership of the SGIX in 4

5 year five. This price shall remain constant for the first five years, unless the actual cost based price for a given year falls below this price or a discount is applied. In this case, the prices charged to members shall be allowed to fall to the newly calculated price. 4.3 Costs are allocated to monthly port charges as follows: a. Direct costs of offering port capacity are allocated to ports. This includes the monthly rental and up-front installation cost of leased lines between nodes, depreciation of Ethernet switches, depreciation of servers and related equipment, costs of the SGIX website, and licence fees of SGIX; b. Total direct and overhead costs are allocated to ports such that the ratio of unit costs for 10Gbit/s port to 1Gbit/s port to 100 Mbit/s port shall be equal to 10.0:2.7: Direct costs are allocated to charges for installation and configuration of ports as follows: a. Direct labour required to install and configure ports shall be allocated to new port configurations. 4.5 Direct costs are allocated to charges for installation and configuration of link aggregation as follows: a. Direct labour required to configure link aggregation activation requests shall be allocated to new link aggregation configurations. 4.6 Direct costs are allocated to charges for installation and configuration of private peering using the IEEE 802.1q standard as follows: a. Direct labour required to configure private peering using the IEEE 802.1q standard activation requests shall be allocated to new private peering configurations using the IEEE 802.1q standard. 4.7 Overhead costs shall be allocated to all services in proportion to direct costs of each service. These include the following: a. Sales and marketing costs; b. Staff costs less the cost of direct labour for the configuration of ports, link aggregation and private peering using the IEEE 802.1q standard; c. Corporate secretarial and administrative costs; d. Office expenses including rental of property, stocking of office and maintenance of fixtures and fittings; e. Cost of maintenance and statistics services, and network operations; f. Professional service and audit fees. 5