Telcos face enduring squeezed margins as IMDA presses on for competitive 5G landscape

THE competitive pressure in Singapore's telecom market is undeniable. Consumer mobile revenues are a fraction of what they once were, and shareholders have seen share prices and dividends tumble as a result.

Analysts, investors and the telcos themselves are hopeful that 5G mobile technology will alleviate some of the pressure that competition has placed on profitability in the mobile network business. Last week, for instance, analysts cheered numbers from Singtel suggesting 5G is already bringing some higher pricing.

But shareholders would do well to remember that the fate of the telecoms industry in Singapore remains highly dependent on the moves of the regulator. And actions by the regulator seem to suggest that the high 4G consumer mobile receipts we have seen are firmly in the past.