02-09-2015, 05:05 PM
Nomura view on the 4th telco operator. A 10% market share, means close to 1 million users. Starhub, achieved the 1 million users mark, in about 4 years, during the good old days. Will the new operator do it, faster than Starhub, amid the much higher penetration rate now.
(vested in M1)
Fourth Singapore telco likely but viability is questionable, says Nomura
SINGAPORE (Sept 2): A new entrant to Singapore's telecommunications sector seems like a reasonable possibility given the lineup of potential candidates and a regulator review of competition in the sector, but the financial viability of a new player remains questionable, Nomura says in a note.
“"We are somewhat less concerned than the broader market on the possibility of a fourth operator emerging and being disruptive," the research house says, adding that much depends on the regulator's decisions about spectrum allocation. "To achieve a 10% return on a $500 million investment, a new entrant will need [about] 10% market share, we estimate," Nomura says.
http://www.theedgemarkets.com/sg/article...ays-nomura
(vested in M1)
Fourth Singapore telco likely but viability is questionable, says Nomura
SINGAPORE (Sept 2): A new entrant to Singapore's telecommunications sector seems like a reasonable possibility given the lineup of potential candidates and a regulator review of competition in the sector, but the financial viability of a new player remains questionable, Nomura says in a note.
“"We are somewhat less concerned than the broader market on the possibility of a fourth operator emerging and being disruptive," the research house says, adding that much depends on the regulator's decisions about spectrum allocation. "To achieve a 10% return on a $500 million investment, a new entrant will need [about] 10% market share, we estimate," Nomura says.
http://www.theedgemarkets.com/sg/article...ays-nomura
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