SINGAPORE (May 24): UOB Kay Hian believes Singapore Telecommunications (Singtel) subsidiary Optus could get a shot in the arm in Australia, after Telstra Corporation – the largest telecommunications company Down Under – was struck by a series of three nationwide outages in May.
“The three nationwide outages suffered by Telstra in May will dent its reputation for network quality and reliability built over the years,” says analyst Jonathan Koh in a report on Thursday. “Optus is likely to maintain its growth momentum and continue to gain market share at the expense of Telstra.”
“The widespread disappointment caused by the series of three nationwide outages suffered by Telstra in May is likely to result in consumers flocking to Optus in 1Q19,” he adds. Already, Telstra’s share price has tumbled to a 7-year low.