M1 (formerly: MobileOne)

Hi all can i ask if the entry of 4th telco is it confirmed? And now, it is just a matter of just choosing who is the new 4th telco...

OR entry of 4th telco is not confirmed at all and the market may still only consist of singtel,starhub and M1?

The entry is not confirmed yet. Companies have put in their submission to be the 4th teleco to the relevant regulatory authority. However, it is subject to the authority thinking if their proposal is good enough to be given the 4th teleco license

The key is with current market condition, why do the authority still want to encourage 4th telco and with cheap band fee.

A new operator will benefit consumers as there will definitely be a reduction in prices.

Of course this will harm shareholders of the existing telcos, in a way, the collateral damage.

The authority should ideally encourage competition, because the cheap band fee can be used to subsidize the cheaper prices

I think my question is how much competition is then enough ? How do we gauge it.

IMHO:

During the m1 earnings call, m1 revealed 2 points of note.
1. Growth has plateaued. My assessment is that any mobile growth will come at expense of existing competitors, especially in view of limits on foreign labour. The market seems saturated.
2. Liberty mvno target to roll out this quarter. It may imply that liberty would in effect, play out as an effective "4th telco". If Ida were to push out the 4th telco idea, it may end up introducing a 5th telco in effect, which is much less than ideal considering the small size of market.



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A market which is similar is Hong Kong which has 4 operators.

Australia, South Korea and New Zealand (Developed countries in APAC) have 3 each.

Our neighbour, Malaysia has 6 and 4 MVNO .

I guess, therefore a fourth operator is what they would aim to have (i.e. similar to Hong Kong).

Personally I am interested in a MVNO to operate in Singapore as I dont have much appeal to always buy the latest Samsung/Apple phones. Also, this will intensify competition and give us price plans which are cheaper and of about the same level paid by other OECD nations.

I have used MVNO in UK and am pretty impressed by giffgaff coverage and price plans. (Singtel 4G 3 costs $42.90 while giffgaff similar 2 GB data plan costs s$24. Giffgaff has more sms and call minutes than Singtel) Hopefully it will shake up our other 3 telecos who are in slumber (my conspiracy theory is that the 3 do not compete among each other because of the same controlling shareholder entity)

(20-01-2016, 12:32 PM)CY09 Wrote: The entry is not confirmed yet. Companies have put in their submission to be the 4th teleco to the relevant regulatory authority. However, it is subject to the authority thinking if their proposal is good enough to be given the 4th teleco license

I reckon, the next milestone, is the bidding of 4th telco spectrum allocated by IDA. The bidding will likely happen early this year, probably in Q1.

The reason for the price movement today?

(vested)

Temasek said to discuss potential sale of Keppel stakes in M1, Keppel REIT

SINGAPORE (Jan 26): Temasek Holdings is discussing options for portfolio companies Keppel Corp. ( Valuation: 2.40, Fundamental: 1.30) and Sembcorp Industries Ltd. ( Valuation: 2.40, Fundamental: 1.10), ranging from divesting their non-core assets to selling shares, as the two Singaporean rig builders grapple with the oil-price slump, people with knowledge of the matter said.

Temasek is weighing the possibility of Keppel selling its 19.1% stake in wireless operator M1 Ltd. ( Valuation: 1.50, Fundamental: 1.35) and paring its 44.6% interest in office landlord Keppel REIT ( Valuation: 1.70, Fundamental: 0.65), the people said, asking not to be identified as the information is private. Keppel's holdings in the two firms are worth a combined $1.6 billion at current market prices, according to data compiled by Bloomberg.
...
http://www.theedgemarkets.com/sg/article...eppel-reit