NetLink NBN Trust - CGS-CIMB Research 2023-11-27: Finalised ICO Pricing Removes Overhang

• The Infocomm Media Development Authority (IMDA) announced today (27 Nov) it has completed its review of the wholesale prices, terms, and conditions of NetLink Trust (SGX:CJLU)’s interconnection offer (ICO) for the next 5 years.

Revised ICO pricing

• - Read this at SGinvestors.io -
• Non-residential end-user connection at S$55.00 per month (flat), and
• NBAP (non-building address point) connection at S$70.50 per month (-4%).

Pricing terms are regulated using the Regulated Asset Base (RAB) framework, which allows NetLink Trust to recover: return of capital deployed (i.e. depreciation), return on capital employed, and operating expenditure. The WACC determined by IMDA for this review period is held stable at 7%.

- Read this at SGinvestors.io -

Review outcome slightly better than expected; overhang removed

• Read more at SGinvestors.io.

ONG Khang Chuen CFA CGS-CIMB Research | https://www.cgs-cimb.com 2023-11-27 SGinvestors.io

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