[cellular news] Singapore Telecommunications (SingTel) has announced that it is transferring a block of its landline assets to a wholly owned subsidiary company, NetLink Trust in a transaction worth approximately S$1.89 billion (US$1.56 billion).
NetLink Trust is a business trust established as part of the telecoms regulators open access requirements under Singapore's "Next Generation Nationwide Broadband Network" ("Next Gen NBN").
In September 2008, OpenNet, in which SingTel has an interest of 30 percent., was selected to become the network company for the Next Gen NBN. SingTel undertook to the IDA to transfer certain infrastructure assets to a separate wholly-owned entity as part of the IDA's effective open access requirements. NetLink Trust was established to comply with this undertaking.
Upon completion of the transaction, CityNet will then carry on the business of ownership, installation, operation and maintenance of the relevant ducts, manholes, exchange buildings and space in exchange buildings for the purposes of facilitating telecommunications activities.
SingTel will reduce its stake in NetLink Trust to less than 25 percent by April 2014, subject to relevant approvals being obtained.
SingTel to Set Up a Business Trust to Manage Fixed Broadband Network Assets