NetLink Trust to recover cost of repairs from contractors that caused Toa Payoh service outage

AROUND 900 households lost access to broadband services after a third-party contractor not engaged by NetLink Trust CJLU damaged the company's fibre cables on Tuesday (Dec 21). The disruption was later resolved at 5.30 am on Wednesday.

The fibre optic cable owner also said that it would investigate the disruption and take action against the errant contractor.

In response to The Business Times' queries, the company said that such cable cuts can cost up to a few hundred thousand dollars per incident, depending on the extent of the damage caused and the difficulty in restoring the connection. The company said that it will recover the cost of the repairs from the contractors that cut the cables.

In March 2019, the Infocomm Media Development Authority (IMDA) investigations found that most cable-cut incidents occurred when earthworks contractors did not follow procedures laid out by telecommunication network facilities-based operators and failed to exercise their due diligence.

In response, IMDA announced standardised requirements on earthworks for telecommunication network operators and contractors to "enhance clarity and facilitate compliance" among contractors. Contractors would fall afoul of the Telecommunications Act if they fail to comply with the requirements.

Since the requirements were put in place, there have been 3 cases of cable cuts in 2020 and 2021 each, the company said. Prior to 2019, there were an average of 4 cases of cable cuts each year.

NetLink shares rose S$0.005 or 0.5 per cent to S$1.00 as at 4.32pm on Wednesday.

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