Spectrum Wars Amplifies Telco Competition
Janice Chong, Director of Corporates, Fitch Ratings
The upcoming spectrum reallocation in the 2H'16 is expected to heighten competition within ASEAN markets. In Singapore, incumbents like Singtel & Starhub were reserved a smaller portion of the allocation - allowing space for new players into Singapore's concentrated telco market.
Meanwhile in Malaysia, Digi & U-Mobile are expected to be the biggest beneficiaries, gaining a larger portion of the highly-prized 900MHz spectrum. Telco players in the region are expected to commit to higher capex in response to the spectrum reallocation possibly leading to higher borrowings and strained cashflows.
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