M1 will be the most impacted.
It is without doubt that the incumbent telcos would have to lose some of its mobile market share as the new kid comes around the corner. Analysts predict that by 2021, TPG Telecom would have captured 5% of mobile revenue share, with M1 being the most impacted given its exposure to Singapore.
"We believe M1 will be the most impacted given its 100% Singapore exposure and with more than 80% of its 9M16 revenue derived from the mobile telecom segment. Furthermore, M1 does not have 1) enterprise segment (although it is looking to build that segment up), and 2) PayTV, which could make customers “stickier” and mitigate the impact on its mobile business created by the 4th Telco," OCBC Investment Research said.
Due to the lack of PayTV bundling options, M1's plans offered are usually cheaper than the other two telcos, OCBC said.
"This means M1’s customers are likely the more price-sensitive users, and in our view, will be the first ones to switch to the even cheaper 4th Telco, despite the lack of stability over network coverage at the start," the brokerage firm stated.
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