IMDA Finalises Review Of Prices In Netlink Trust’s Interconnection Offer

Last updated: 27 May 2019

Published on: 08 May 2017

The Infocomm Media Development Authority (IMDA) has completed its review of the wholesale prices, terms and conditions of NetLink Trust’s Interconnection Offer1 (ICO).

SINGAPORE – 8 May, 2017: The Infocomm Media Development Authority (IMDA) has completed its review of the wholesale prices, terms and conditions of NetLink Trust’s Interconnection Offer1 (ICO).

As NetLink Trust is a dominant licensee, IMDA reviews NetLink Trust’s ICO every three to five years to ensure its reasonableness and cost efficiency. In its latest review, IMDA has taken into consideration market developments that have occurred since the last price review. Such developments include the restructuring of operations and internalisation of contractor functions within NetLink Trust arising from the consolidation of OpenNet and CityNet in 2013.


Outcome of Review

Most of NetLink Trust’s wholesale prices to the industry will be reduced from their current levels. For example, the price of a fibre connection for residential users will drop by 8% from $15 per month to $13.80 per month. These reductions are expected to be welcomed by retail service providers (RSPs). IMDA considers the reduction in wholesale prices likely to encourage RSPs to provide more attractive and value-added offerings to their customers, as well as support the development of more innovative and competitive services as part of Singapore’s push towards being a Smart Nation.

While there is a slight increase in the price that NetLink Trust can charge for a fibre connection to non-residential users, with multiple suppliers providing fibre connections to these end-users, businesses can continue to look forward to competitively-priced retail fibre broadband packages. The rest of the non-residential fibre connection prices, such as those to non-building address points (for example, to a lamp post or bus stop), will also be reduced.

A summary of the price changes for the more commonly-used ICO services is in the tables below.


Table 1: Price Changes
for Key Selected NLT ICO Services

ICO ServiceCurrent PriceRevised Price
Residential End-User Connection$15/month$13.80/month
Non-Residential End-User Connection$50/month$55/month
Non-Building Address Point Connection$185/month$73.80/month
Central Office (CO) to CO Connection$6,000/month$4,328.50/month

In reviewing the ICO prices, IMDA continues to uphold the key objective of the Nationwide Broadband Network, which is to encourage services-based competition through the setting up of an open-access, structurally-separated network company, i.e., NetLink Trust, with affordable regulated wholesale prices. IMDA has taken into consideration the operational efficiencies realised from the 2013 OpenNet-CityNet consolidation, the need for reasonable recovery of investments made in the nationwide fibre and passive civil infrastructure, and the continuing need for investments in network enhancements over time.

The revised prices will be effected in six months’ time to allow the industry time to make the necessary changes to their operations and systems.

For more information on the revised prices and other modifications to NetLink Trust’s ICO, please refer to: Public Consultation on NetLink Trust's Interconnection Offer.


1NetLink Trust’s ICO is a commercial agreement between NetLink Trust and Operating Companies (OpCos) which governs the prices, terms and conditions of services that NetLink Trust offers to the OpCos.


ISSUED BY THE INFOCOMM MEDIA DEVELOPMENT AUTHORITY


About Infocomm Media Development Authority (IMDA)

The Infocomm Media Development Authority (IMDA) will develop a vibrant, world-class infocomm media sector that drives the economy, connects people, bonds communities and powers Singapore's Smart Nation vision. IMDA does this by developing talent, strengthening business capabilities, and enhancing Singapore's ICT and media infrastructure. IMDA also regulates the telecommunications and media sectors to safeguard consumer interests while fostering a pro-business environment. IMDA also enhances Singapore’s data protection regime through the Personal Data Protection Commission. For more news and information, visit www.imda.gov.sg or follow IMDA on Facebook IMDAsg and Twitter @IMDAsg.



For media clarifications, please contact:

Michelle LEE (Ms)
Assistant Manager, Communications & Marketing, IMDA
DID: (65) 6202 4410
Email: michelle_lee@imda.gov.sg


Adrian CHAN (Mr)
Senior Manager, Communications & Marketing, IMDA
DID: (65) 6211 1510
Email: adrian_chan@imda.gov.sg