BMI Research, a Fitch Ratings group company, is cautious on the financial performance of the three Singapore telecom companies, amid rising competition in the sector.
BMI expects investments by the three operators -- Singapore Telecommunications, StarHub and M1 -- to rise due to the upcoming auction of telecom bandwidth.
BMI says the entry of a fourth telecom company can potentially be "price disruptive" for the sector.
Singapore's telecom regulator plans to bring a fourth player in the sector.
The news has hurt M1, the smallest of three companies, the most.
M1's share price has fallen 35.8% over the past year, and BMI is bearish on the outlook of the company.
Even if the regulator's aim to license a new entrant is unsuccessful, rising competition among the three incumbents, in a bid to boost subscriber base, will eat into their profits, BMI adds.
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BMI expects investments by the three operators -- Singapore Telecommunications, StarHub and M1 -- to rise due to the upcoming auction of telecom bandwidth.
BMI says the entry of a fourth telecom company can potentially be "price disruptive" for the sector.
Singapore's telecom regulator plans to bring a fourth player in the sector.
The news has hurt M1, the smallest of three companies, the most.
M1's share price has fallen 35.8% over the past year, and BMI is bearish on the outlook of the company.
Even if the regulator's aim to license a new entrant is unsuccessful, rising competition among the three incumbents, in a bid to boost subscriber base, will eat into their profits, BMI adds.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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