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Base on SingTel announcement
http://infopub.sgx.com/FileOpen/555-sgx....eID=253458
Proposal on
- To reduce its stake in NetLink Trust to less than 25% by 22 April 2018. The extension from the original deadline is to allow time for NetLink Trust to integrate the operations of the Next Gen NBN fibre network and assets.
Ops... to divest more than 4 years later... If it is approved, then it will be a long wait... Netlink + OpenNet is a lucrative business, SingTel is motivated to delay the divestment as far as possible, albeit OpenNet seems has operational issue now...
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I don't quite understand this. The original idea for OpenNet bid is to have a network that is "independent" from Singtel's original telecom backbone? Divesting NetLink Trust to ensure this "independence"?
Is this considered a clawback of IDA policy deja vu Mediacorp and Mediaworks?
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(23-08-2013, 10:36 AM)specuvestor Wrote: I don't quite understand this. The original idea for OpenNet bid is to have a network that is "independent" from Singtel's original telecom backbone? Divesting NetLink Trust to ensure this "independence"?
Is this considered a clawback of IDA policy deja vu Mediacorp and Mediaworks?
It was a long story, a story of "patching", started from the day NGNBN was drafted. It has provided an opportunity for the "smarter" to gain. In this game, SingTel is the biggest winner.
OpenNet was started independent, none of the telecom has controlling stake, and only SingTel was involved. But OpenNet, an NetCo, needs infrastructure owned by SingTel to operate efficiently, so the idea of AssetCo proposed. To remain independent, Netlink was established, and SingTel agreement to divest in due time. A trust-manager was appointed to oversee the management, without SingTel involvement.
SingTel, as the owner of the "critical" infrastructure, became the sole contractor of OpenNet, and secured more than 750 mil of revenue so far and still growing. On top of that, OpenNet also paid NetLink a regular hefty fee to use the infrastructure...
I have been following the story since 2010...
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Hi CityFarmer
I know about AssetCo but I'm getting a bit confused on the cashflow here:
1) The people who came our house to install OpenNet are actually Singtel employees, acting as subcontractor of OpenNet?
2) The subcontracting fee is S$750m or you are saying the revenue of OpenNet is S$750m?
3) With the acquisition of OpenNet, the infrastructure fee and subcontracting fee will be inter-company eliminated in NetLink?
4) Who pays the OpCo run by Starhub?
Thanks much in advance
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(23-08-2013, 04:56 PM)specuvestor Wrote: 1) The people who came our house to install OpenNet are actually Singtel employees, acting as subcontractor of OpenNet?
An uniqueness due to inefficiency of OpenNet. A back-log in OpenNet forced telecom operators to take initiative to do it on behalf of OpenNet (for free). Same were happened for M1 and Starhub...
(23-08-2013, 04:56 PM)specuvestor Wrote: 2) The subcontracting fee is S$750m or you are saying the revenue of OpenNet is S$750m?
SingTel is the sole-contractor for fiber roll-out. So far the contractor fee is more than $750 mil (the sum of fiber roll-out revenues received by SingTel since 2010), in fact, base on the latest end-Jun result (1QFY14) of SingTel, the sum is $800 mil.
(23-08-2013, 04:56 PM)specuvestor Wrote: 3) With the acquisition of OpenNet, the infrastructure fee and subcontracting fee will be inter-company eliminated in NetLink?
According to original plan, the fiber roll-out should achieved 100% by end Jun 2013, so fiber roll-out should be diminishing, unless OpenNet fails to achieve it. The infrastructure fee will be inter-segment revenue IMO.
(23-08-2013, 04:56 PM)specuvestor Wrote: 4) Who pays the OpCo run by Starhub?
OpCo and NetCo's revenues are paid by RSPs.
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(23-08-2013, 10:53 AM)CityFarmer Wrote: I have been following the story since 2010...
Really?
Care to share your thoughts on how Layer 1 became the 2nd layer?
It's also interesting to read between Alan Hartslief's lines.
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It seems the subsidiary will take care the maintenance of fiber network.
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Singapore Telecommunications Limited wishes to announce that it has incorporated a
wholly-owned subsidiary in Singapore known as NetContractor Pte. Ltd. (“NCPL”).
NCPL has an issued and paid-up capital of S$2.00. The principal activity of NCPL is to
provide manpower services with respect to the construction and maintenance of
telecommunication networks. The directors of NCPL are Quah Kung Yang and Tay Soo
Meng
http://infopub.sgx.com/FileOpen/556-sgx....eID=253939
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Needs public consultation? May be IDA also confuse on current configuration...
I doubt IDA will grant the extension of divestment date to 2018, as proposed by SingTel. Netlink's operation is quite passive, the integration with OpenNet doesn't require more than 12 months.
The question of "independent" is always there, as long as Netlink is 100% owned by SingTel.
The earlier the date of the divestment, the better to me...
(vested)
IDA starts public consultation on OpenNet deal
SINGAPORE — The Infocomm Development Authority (IDA) of Singapore today (Aug 28) began the public consultation on CityNet's proposed acquisition of OpenNet. The process will close in three weeks and IDA will likely complete its review in 120 days.
In an announcement last week, CityNet, as the trustee manager of NetLink Trust, unveiled its proposal to fully acquire the next-generation broadband network operator OpenNet. Set up as a business trust, NetLink Trust owns and maintains the ducts and manholes that the broadband cables go through.
The proposal has come under public scrutiny as SingTel currently owns all of NetLink Trust's units. But SingTel has only beneficial ownership and no controlling power, which rests on trustee manager CityNet.
http://www.todayonline.com/tech/ida-star...ennet-deal
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SingTel continue to spend monies. NTA of US$1.1 mil, and with price of US$15 mil, so PB is close 14. Well, it should be OK, since the budget is S$2 bil anyway i.e. US$1.6 bil.
SingTel's goodwill is building-up on the balance sheet, slowly...
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Singapore Telecommunications Limited wishes to announce that its wholly-owned
subsidiary, Amobee, Inc. (“Amobee”), has entered into a conditional agreement to
acquire 100% of the share capital of Gradient X, Inc. (“GradientX”), a corporation
organised under the laws of Delaware, USA (the “Transaction”).
GradientX has developed a mobile advertising and marketing platform with
real-time bidding capabilities. These capabilities will help enhance Amobee’s
value proposition to customers for its digital advertising business.
The aggregate consideration for the Transaction is approximately US$15 million,
and was arrived at on a willing buyer-willing seller basis based on, inter alia, an
assessment of GradientX’s assets and business prospects. The consideration will
be paid in cash.
The Transaction is subject to certain conditions precedent, including the receipt of
relevant approvals.
As at 31 May 2013, GradientX had Net Tangible Liabilities of approximately
US$1.1 million.
...
http://infopub.sgx.com/FileOpen/558-ann-...eID=255318
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