Analyts review that the local mobile telecommunication industry is still profitable and provides enough room for all players.
There is a growing trends targeting foreign workers market.
Analyts do not discount a potential price war in this migrant worker segment but noted that price undercutting in the market was unsustainable for long periods of time.
A senior telecommunications analyst with a foreign research brokerage said competition was always good for both the consumer and the companies, but noted that “from a historical point of view, it is the strong ones that will endure in the end”.
The industry is awaiting the Government to allow a pass-through of the 6% service tax on prepaid charges which will benefit the players greatly.
CIMB Research telco analyst Kelvin Goh had a “neutral” call with a target price of RM5.70 on Maxis.
RHB Research, which had an “outperform” call on DiGi.com with a target price of RM4.40
Hong Leong Investment Bank chief of research Low Yee Huap expects an earnings uplift of 6% for DiGi, 4% for Maxis and 2% for Celcom if competition and usage remain status quo.
For more information, refer to ‘Enough room for all telcos‘
