Singtel faces stiff competition in Australia

Impact from device repayment plan a major revenue drag.

While Singtel's mobile business is outperforming peers in Singapore, it is bracing for more competitive headwinds in Australia on the back of pricing aggression, especially from the mobile virtual network operators (MVNO), said RHB.

This, it said, should further exert pressure on prepaid ARPUs in a slowing market.

Telstra recently upped the ante with a AUD10 prepaid starter pack offering 6GB data (including 5GB bonus data) while Vodafone (VOD LN, NR) is dishing-out 3GB
data for every AUD30 recharge.

RHB also notes that postpaid revenue would also be crimped by the service credits on its device repayment plan (DRP) – implemented in Feb 2015 – until the impact washes through its postpaid base.

"We expect the strong postpaid net-additions in 2QFY17 to also manifest in ARPU pressure in 2HFY17 as the DRP impact is magnified," it said.

Optus said it would align the increase in cost with revenue trends, noting the benefits from the exclusive English Premier League (EPL) content.

Management said it is keen on the 700MHz spectrum which would be put up for auction in 2017.

After factoring in lower revenue growth for Optus, RHB trimmed its FY17-FY19 core earnings forecasts by 1-3%.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia