Pricing terms are regulated using the Regulated Asset Base (RAB) framework, which allows Netlink to recover return of capital deployed, return on capital employed and operating expenditure. The weighted average cost of capital (WACC) determined by IMDA for this review period is held stable at 7%. Both IMDA and Netlink may propose to conduct a mid-term price adjustment in the third year, in the event of any significant changes to cost or demand forecasts due to unforeseen circumstances.
The Infocomm Media Development Authority (IMDA) announced on Nov 27 the results of its review of the wholesale prices, terms and conditions of Netlink NBN Trust’s interconnection offer (ICO) for the next five years. This has removed a months-long overhang on the fibre network infrastructure operator, and analysts are relieved at the “long-award closure”.
Revised prices, which will take effect from April 1, 2024, are lower for residential and non-building address point (NBAP) connections, down 2% to $13.50 and 4% to $70.50 respectively. Non-residential end-user connection prices, meanwhile, will remain unchanged at $55.00 per month.
