Brokers' take

Telecom sector

DBS Group Research, April 16

THERE is a rational case for a fourth telco. SMRT's participation will beef up the case for a fourth telco with SMRT's real estate supporting network rollout and retailing of telecom services. We estimate 9.4 per cent return on investment for the new player based on 10 per cent revenue share assumption in the fifth year. We estimate potential adverse impacts of 13-16 per cent, 6-7 per cent and one per cent on group topline of M1, StarHub and SingTel respectively, if fourth telco enters the market.