Asia Telecom Sector - UBS Pan-Asia Telco Conference 2015 - Takeaways

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 Indonesia. Our least-preferred stocks are, M1, StarHub, Telekom Malaysia, and Telstra. (Read Report)

Source : UBS Global Research

Labels: , ,