Telecom Sector - DBS Research 2016-03-11: Why a Price War Now?

M1 LIMITED B2F.SI  STARHUB LTD CC3.SI 

Telecom Sector - Why a Price War Now? 

• Effective pricing for higher-end data plans slashed by 25-50% even before the spectrum auction in 3Q16. 
• Intention to discourage the entry of new player even at the cost of near-term revenue; FY16F earnings may be reduced 5-8% for M1 and StarHub in our estimates. 
• Maintain FULLY VALUED on StarHub and HOLD on M1. 

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Telecoms Sector - OCBC Investment 2015-11-30: Maintain OVERWEIGHT in uncertain times

STARHUB LTD CC3.SI  SINGTEL Singapore Telecommunications Z74.SI  M1 LIMITED B2F.SI 

Telecoms Sector: Maintain OVERWEIGHT in uncertain times 

 Yields largely recovered above 5% 

 Defensive businesses, strong cashflows 

 M1 has the highest expected total return 

Fear of a fourth telco? 

• For nearly a year, the market has been rife with talk of a fourth telco emerging to increase competition here. However, we understand that the IDA is only likely to give its decision in early 2016. 

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