We hosted 18 companies at the 12th UBS Pan-Asia Telco Conference 2015
We hosted Senior management/ IR representatives of 18 Asian Telcos/ Media
companies at the 12th UBS Pan-Asia Telco Conference in Hong Kong on 4-5 June
2015. The corporate list included Bharti Airtel, Bharti Infratel, Capitel Partners, China
Mobile, China Telecom, China Unicom, DiGi.Com, HKBN, HTHK, Internet Initiative
Japan (IIJ), KT Corp, MyRepublic, PLDT, SK Telecom, SmarTone, StarHub, TVB and True
Telecom Infra Fund.
Key issues discussed – Competition and data monetisation
In China, the delay in granting 4G license to China Unicom and China Telecom
continues to benefit China Mobile. However, data tariffs are under pressure from the
regulator, given pricing differential in China vs. other markets, although likely to be
compensated by price elasticity. In India, managements expect to see improved voice
realisations (excluding near term impact from interconnect rate cuts and reduction in
roaming ceiling tariffs) and steady data yields driven by increased dominance of the
top-three telcos. RJio's focus is likely to be primarily on data.
For Singapore telcos, key
investor queries were focused around the potential entry of a fourth mobile operator.
Whilst StarHub management believes that this was unlikely, not least driven by
significant capex requirements and stringent Quality of Service (QoS) norms,
MyRepublic (which is staking its claim to become the fourth telco operator) believes
that it is well prepared given
1) Strong on-the-ground preparation
2) Superior cost
economics given low capital intensity and SACs.
In Hong Kong, operators are focused
on driving data monetisation, whilst in Philippines, management believes that the
potential entry of a new operator could impact data pricing. In Malaysia, queries were
focused on new operator – P1.
Our Most preferred and Least preferred companies amongst participants
Our most-preferred stocks are Bharti Airtel, HKBN, SK Telecom, Softbank and Telkom
. Our least-preferred stocks are Digi.com, M1, StarHub, Telekom Malaysia,
. (Read Report)
Source : UBS Global Research
Labels: M1, Starhub, Telco