Mobile prices in India are expected to rise over the next three to four years. Bharti Airtel can also lift ARPU organically as users switch to smartphones, move to postpaid, roam more and pay excess data charges, adding 5 to 8 rupees annually. Stronger cash flow and lower capital intensity should support higher dividends for Bharti, with further upside from potential disposals of Robi, Dialog and an Airtel Payments Bank IPO.
PhillipCapital analyst Paul Chew has maintained his “accumulate” call on Singapore Telecommunications (Singtel) with a raised target price of $4.86 from $4.40 previously.
The higher target price reflects improving industry dynamics, with mobile price repair taking hold in key markets such as India, Thailand and Australia. “Except for Singapore and Indonesia, most countries have a clear line of sight for mobile price repair,” he writes in a Sept 1 note.
