Telecommunications – Singapore

5G SA Rollout On Track; ARPU Rise To Partly Arrest Dilution From SIM Plans

The 5G standalone rollout is on track to achieve 50% population coverage by end-22. We expect the competitive landscape to remain benign as incumbents focus on monetising 5G services. A back-test of the 3G and 4G technological transition suggests telcos benefit from a new product/customer base, and this will likely come from the enterprise solution in the 5G era. Industry consolidation/JV will help to stabilise ROICs. Maintain OVERWEIGHT. Top picks: Netlink and Singtel.