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Fitch downgrades Singapore telco outlook to ‘negative’ on rising competition

PC Lee Published on Wed, Apr 05, 2017 / 4:11 PM GMT+8

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SINGAPORE/SYDNEY (April 5): Aggressive bidding in Singapore's April 2017 spectrum auction is a clear indication of rising telecom competition, says Fitch Ratings.

“The proliferation of data services, thanks to rising smartphone penetration and over-the-top applications, drives the need for more spectrum and network capacity, at a huge cost for telecom operators,” says the ratings agency in a report on Wednesday.

As such, Fitch has revised the outlook on Singapore telecoms to “negative” from “stable” in October 2016, reflecting its expectations of heightened competition.