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Is M1’s business losing reception?

Gwyneth Yeo
Gwyneth Yeo11/18/2016 11:37 AM GMT+08  • 2 min read
Is M1’s business losing reception?
SINGAPORE (Nov 18): Nomura is maintaining its “reduce” recommendation on M1, with a lower target price from $2 to $1.75, after TPG Telecom and MyRepublic received pre-qualification to participate in the New Entrant Spectrum Auction.
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SINGAPORE (Nov 18): Nomura is maintaining its “reduce” recommendation on M1, with a lower target price from $2 to $1.75, after TPG Telecom and MyRepublic received pre-qualification to participate in the New Entrant Spectrum Auction.

Nomura’s research analysts Gopa Kumar and Ankur Pant noted that the impact of the new entrant is difficult to ascertain given that little is known about TPG Telecom’s plans and it could very well vary wildly from MyRepublic.

What they are certain about, however, is that pricing pressure on the mobile business is here to stay, with M1 bearing the biggest brunt of it, given that it has an 80% revenue exposure to the local mobile market. On top of that, Kumar and Pant added that there is a risk of aggressive bids in the general auctions planned for 1Q17, if TPG wins the new entrant auction.

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