Telecom industry ‘faces tough year’
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Fitch Ratings says in a new report that the Thai telecommunications industry will remain under pressure in 2017 from slow revenue growth, margin pressure, and high investment requirements.
The rate of growth in mobile data revenue is likely to slow, and the pace of new data subscriptions started|to decelerate in the first half of 2016 as smartphone penetration |rose.
Margins are likely to suffer as Fitch expects marketing costs to remain high with the ongoing promotion of| fourth-generation services. In addition, spectrum fees and the continued expansion of 4G networks will drive capital expenditur.
As a result, the industry’s free |cash flow is likely to be negative, and financial leverage will rise for some operators.
