Brokers' take

Singapore Telco | Overweight

OCBC Investment Research, May 26

The three telcos made a pretty decent start to 2016, with results mostly within our expectations; this is especially noteworthy given the spate of Q1 earnings disappointments across a broad swathe of sectors.

Recently, we saw MVNO (mobile virtual network operator) Circles.Life launch its mobile services through a leasing agreement with M1. However, with Circles.Life offering pricing plans pretty similar to what the current incumbents are offering, there was not much of a reaction from the three telcos. Instead, we believe that the they are saving their "bullets" for the potential entry of a fourth telco. Amid a more uncertain ec…