Although the industry is unlikely to consolidate in the near-term, Koh nevertheless sees prospects of a return to a three-player oligopoly as “favourable”.
SINGAPORE (March 27): UOB Kay Hian is reiterating its “buy” call on Singtel with a target price of $4.53, while keeping its “overweight” view on telecommunications sector after assessing the impact of increased competition with the entry of the fourth mobile operator, TPG Telecom.
In a Monday report, analyst Jonathan Koh says although TPG will bring about an increase in competitive intensity within the mobile space, this risk is offset by potential consolidation of Singapore’s mobile industry within the next 3-5 years.
