Consistel will have lower ROI.
Between fourth telco hopefuls MyRepublic and Consistel, analysts reckon that the former will have a better chance of surviving Singapore's cutthroat mobile market.
According to a report by DBS, Consistel will likely have a return on investment (ROI) of less than 10%, compared to a possible 25% ROI for MyRepublic.
"In the absence of a heterogenous network which is a key focus area for Singapore’s Smart Nation project, this will put Consistel in an unfavourable competitive position. We believe that MyRepublic has much better chances than Consistel of entering as 4th telco, if at all," DBS said.
This comes after Consistel revealed that it wants to build a 4.5G netowrk at a cost of US$1 billion. The potential contender also claimed that it is close to securing $400m of funding.
"An aggressive data pricing initiated by incumbents in March 2016 may discourage the entry of new player," the report added.
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