Telco/Internet specialist

Kirk Boodry

Redex Research

Thematic (Sector/Industry)

<ul>
<li>Japan's telecom regulator has raised the issue of mobile spectrum auctions and is now soliciting public comments</li>
<li>We think this conflicts with national policies to boost ICT exports after years of trade deficits whilst new entrant Rakuten, which MIC supports to promote competition, would suffer</li>
<li>The proposals are for new spectrum only and current licenses and associated annual payments would not be affected. We remain overweight JP telcos, particularly NTT and KDDI</li>
</ul>


Japan's telecom regulator has raised the issue of mobile spectrum auctions and is now soliciting public comments
We think this conflicts with national policies to boost ICT exports after years of trade deficits whilst new entrant Rakuten, which MIC supports to promote competition, would suffer
The proposals are for new spectrum only and current licenses and associated annual payments would not be affected. We remain overweight JP telcos, particularly NTT and KDDI


Japan Telecoms - There Are Hurdles to the Introduction of Mobile Spectrum Auctions

<ul>
<li>Japanese auto makers have agreed to pay patent fees for mobile technology in connected cars, a win for equipment vendors</li>
<li>It is also positive for NTT's DoCoMo, which is a global leader in network technology R&amp;D (fourth overall and largest in Japan) despite being a network operator</li>
<li>KDDI also benefits as it already generates meaningful IoT revenue supported in part by automobile connectivity</li>
</ul>


Japanese auto makers have agreed to pay patent fees for mobile technology in connected cars, a win for equipment vendors
It is also positive for NTT's DoCoMo, which is a global leader in network technology R&amp;D (fourth overall and largest in Japan) despite being a network operator
KDDI also benefits as it already generates meaningful IoT revenue supported in part by automobile connectivity


Japan Telecoms - Agreement on Telecom Patent Fees Also Good for DoCoMo, KDDI

<ul>
<li>5G-Capable devices now account for 25% of total devices in Japan. So far, 5G take-up appears to be quicker than 4G although that doesn't translate into higher revenue</li>
<li>MVNO subscriptions continue to grow despite former leader Rakuten moving users to its own network. IIJ remains the segment leader</li>
<li>Rakuten Mobile's subscriber woes have been well-flagged but another issue may be ahead as the migration of MVNO subs to the MNO platform has slowed in recent quarters.</li>
</ul>


5G-Capable devices now account for 25% of total devices in Japan. So far, 5G take-up appears to be quicker than 4G although that doesn't translate into higher revenue
MVNO subscriptions continue to grow despite former leader Rakuten moving users to its own network. IIJ remains the segment leader
Rakuten Mobile's subscriber woes have been well-flagged but another issue may be ahead as the migration of MVNO subs to the MNO platform has slowed in recent quarters.


Japan Telecoms - MIC Reports Telecom Subscription Data Including a Key 5G Milestone

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nippon-telegraph-telephone-corporation" target="_blank" data-smartkarma-citation="entities:623:1" rel="noopener">NTT (9432 JP)</a> results were better than Softbank Corp's and KDDI's. The good "drift trade" may still be to be long NTT vs a basket of KDDI and Softbank Corp. </li>
<li>The <a href="https://www.smartkarma.com/entities/frasers-hospitality-trust" target="_blank" data-smartkarma-citation="entities:913:1" rel="noopener">Frasers Hospitality (FHT SP)</a> Scheme failed.  The non-vocal minority simply didn't show up. Maybe apathy. Maybe a holiday season. Maybe lack of premium paid encouraged people to not vote.</li>
<li>In a surprise move, <a href="https://www.smartkarma.com/entities/genting-bhd" target="_blank" data-smartkarma-citation="entities:14210:1" rel="noopener">Genting Bhd (GENT MK)</a>- or <a href="https://www.smartkarma.com/entities/genting-malaysia-bhd" target="_blank" data-smartkarma-citation="entities:3141:1" rel="noopener">Genting Malaysia (GENM MK)</a> - has joined the six incumbents in bidding for new casino licences in Macau.</li>
</ul>



NTT (9432 JP) results were better than Softbank Corp's and KDDI's. The good "drift trade" may still be to be long NTT vs a basket of KDDI and Softbank Corp. 
The Frasers Hospitality (FHT SP) Scheme failed.  The non-vocal minority simply didn't show up. Maybe apathy. Maybe a holiday season. Maybe lack of premium paid encouraged people to not vote.
In a surprise move, Genting Bhd (GENT MK)- or Genting Malaysia (GENM MK) - has joined the six incumbents in bidding for new casino licences in Macau.


Last Week in Event SPACE: NTT, Frasers Hospitality, Genting/Macau, United Tractor, Arb Shockers

Travis Lundy

NTT (Nippon Telegraph & Telephone) / Event-Driven

<ul>
<li>NTT announced a buyback in May as discussed in <a href="https://www.smartkarma.com/insights/ntt-9432-salutary-earnings-salutary-buyback-more-to-go" target="_blank" data-smartkarma-citation="insights:69873" rel="noopener">NTT (9432) - Salutary Earnings Salutary Buyback, More to Go</a>, via ToSTNeT-3 to buy a chunk of the govt's stake. </li>
<li>That will be <a href="https://group.ntt/en/newsrelease/2022/09/14/220914a.html" target="_blank" rel="noopener">executed</a> by ToSTNeT-3 buyback pre-open tomorrow, with a bid of 103.1725mm shares at ¥3,877. A separate report suggests the Ministry of Finance will sell 92mm shares.</li>
<li>It is like a mini tender offer so if you want to sell a large chunk of shares, you can. But I wouldn't. </li>
</ul>


NTT announced a buyback in May as discussed in NTT (9432) - Salutary Earnings Salutary Buyback, More to Go, via ToSTNeT-3 to buy a chunk of the govt's stake. 
That will be executed by ToSTNeT-3 buyback pre-open tomorrow, with a bid of 103.1725mm shares at ¥3,877. A separate report suggests the Ministry of Finance will sell 92mm shares.
It is like a mini tender offer so if you want to sell a large chunk of shares, you can. But I wouldn't. 


NTT (9432) Buyback Has Come - But NTT Is Gonna Grind Out Better EPS So I'd Keep It

Japan

Nippon Telegraph and Telephone Corporation provides a variety of telecommunication services, including telephone, telegraph, leased circuits, data communication, terminal equipment sales, and related services. The Company provides both local and long distance telephone services within Japan.

NTT (Nippon Telegraph & Telephone) (9432 JP)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

NTT (Nippon Telegraph & Telephone) (9432 JP)

Japan Telecoms - There Are Hurdles to the Introduction of Mobile Spectrum Auctions

The regulator has taken up the issue of mobile spectrum auctions again but we think a focus on ICT export and concerns on competition stand in the way

Kirk Boodry

Japan Telecoms - Agreement on Telecom Patent Fees Also Good for DoCoMo, KDDI

JP car makers have agreed to pay patent fees for mobile technology. That is good for equipment vendors but also DoCoMo, a global leader in network...

Kirk Boodry

Japan Telecoms - MIC Reports Telecom Subscription Data Including a Key 5G Milestone

MIC data highlights the rapid proliferation of 5G as capable devices exceed 25% two years after launch. The latest also reiterates mobile strength...

Kirk Boodry

Last Week in Event SPACE: NTT, Frasers Hospitality, Genting/Macau, United Tractor, Arb Shockers

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

NTT (9432) Buyback Has Come - But NTT Is Gonna Grind Out Better EPS So I'd Keep It

NTT's large buyback - possibly the only one this year - comes today. Designed for govt to sell shares, but you can participate. I wouldn't though....

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)