NBTC formation a boon to telecom companies
Good revenue and margin outlook for 2nd half 2011 and 2012
The earlier-than-expected drafting of the master plan from the National Broadcasting and Telecommunications Commission as well as consensus upgrades following the incorporation of 3G into valuations are two main catalysts for telecom companies' re-rating.
CIMB Research noted that the successful formation of the NBTC on Sept showed positive regulatory development, which should make investors more upbeat.
The NBTC would add greater clarity to a 2G concession-to-licence transition and 3G/2.1GHz licensing.
The successful NBTC formation could lower providers' spending as they conserve cash for a 3G/2.1GHz auction and related capital expenditures, which could begin by the fourth quarter 2012, or early-2013.
Hence, brisk 2G revenue and a good margin outlook for second half of 2011 and next year can be expected, it added.
