Credit Suisse maintains view that Singapore’s Next Generation Nationwide Broadband Network “is really a 2012 story for the telecoms sector in light of the delays in the roll-out of OpenNet’s all-fibre network and the start-up issues faced by the NGNBN operating companies and retail service providers.” 

Says key developments shaping sector in 2011 include introduction of cross-carriage requirements, common-feature set-top boxes for pay-TV operators here. “These are expected to affect incumbents by lowering the entry barriers for newcomers, but the impact is again unlikely to kick-in immediately.” 

 

Adds given steady free cash flow, strengthening balance sheets, capital management will be key catalyst; SingTel (Z74.SG) recently raised dividend payout policy, further SingTel capital management could be key catalyst for stock, while M1 (B2F.SG) expected to revisit capital management in February 2011, M1 also largest potential beneficiary of introduction of NGNBN. Rates both Outperform, Starhub (CC3.SG) at Neutral.