Differentiated global TMT & Internet Research

New Street Research Insights

New Street Research

Research is provided by our team of experienced analysts. Our work is idea driven, based on independence of thought, sector expertise, and firmly focused on fundamentals and valuation of telecoms and internet names globally. New Street is headquartered in London with offices in New York, Singapore and Australia. 

New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:

Pan European Telecom Services and Cable
US Telecoms, Cable, Satellite and Towers
Global Emerging Market Telecoms
Japan Telecoms
Asian Internet
Pan European Healthcare
US Healthcare
Japanese Healthcare

We also provide debt research on:
Pan European Telecom Services and Cable

Thematic (Sector/Industry)

When we wrote our first 5G note in <a href="https://www.smartkarma.com/insights/5g-set-to-disrupt-the-cellular-business-model" target="_blank" data-smartkarma-citation="insights:3542">5G Set to Disrupt the Cellular Business Model</a> we laid out arguments on how 5G could be more disruptive to mobile operators than fixed line in certain markets. This is NOT the case in Japan where the required network densification has already been done and there are no potential disruptors on the fixed-line side to challenge the existing business model. Instead, 5G deployments, starting with <a href="https://www.smartkarma.com/entities/1089" target="_blank" data-smartkarma-citation="entities:1089:1">NTT Docomo (9437 JP)</a> expected service launch in 2020 for the Tokyo Olympics, are likely to come at manageable cost and be focused on areas where capacity expansion is needed. Without excessive capex or spectrum costs and with little chance of market disruption, Japan’s operators are well-placed to benefit from 5G advances. This was one of the reasons we upgraded our target prices in <a href="https://www.smartkarma.com/insights/japan-telecoms-strong-1q17-results-confirm-rising-return-story-is-intact" target="_blank" data-smartkarma-citation="insights:5460">Japan Telecoms’ Strong 1Q17 Results Confirm Rising Return Story Is Intact.</a>

When we wrote our first 5G note in 5G Set to Disrupt the Cellular Business Model we laid out arguments on how 5G could be more disruptive to mobile operators than fixed line in certain markets. This is NOT the case in Japan where the required network densification has already been done and there are no potential disruptors on the fixed-line side to challenge the existing business model. Instead, 5G deployments, starting with NTT Docomo (9437 JP) expected service launch in 2020 for the Tokyo Olympics, are likely to come at manageable cost and be focused on areas where capacity expansion is needed. Without excessive capex or spectrum costs and with little chance of market disruption, Japan’s operators are well-placed to benefit from 5G advances. This was one of the reasons we upgraded our target prices in Japan Telecoms’ Strong 1Q17 Results Confirm Rising Return Story Is Intact.  

Japan's 5G Future: The Heavy Lifting Has Already Been Done

Returns in emerging market wireless telecoms have bottomed as the sector takes a capex holiday after the 4G roll-out. We continue to like low-return markets where we look for returns to rise (e.g. India, Indonesia, China are prime examples). We have also become more bullish where returns are high and stable (e.g. Hong Kong). A number of markets continue to face tough conditions typically due to rising spectrum payments (e.g. Malaysia and Thailand).Higher returns imply higher cash flows and that is good news for both debt reduction and rising dividends. it also may encourage more M&amp;A, an area we think makes sense for in market consolidation and fixed/wireless convergence.In terms of stocks, we favor names such as <a href="https://www.smartkarma.com/entities/953" target="_blank" data-smartkarma-citation="entities:953:1">Bharti Airtel (BHARTI IN)</a> , <a href="https://www.smartkarma.com/entities/1016" target="_blank" data-smartkarma-citation="entities:1016:1">China Unicom (762 HK)</a>, Telefonica Brasil, <a href="https://www.smartkarma.com/entities/15028" target="_blank" data-smartkarma-citation="entities:15028:1">XL Axiata (EXCL IJ)</a> and <a href="https://www.smartkarma.com/entities/873" target="_blank" data-smartkarma-citation="entities:873:1">PCCW (8 HK)</a>. Top shorts include <a href="https://www.smartkarma.com/entities/946" target="_blank" data-smartkarma-citation="entities:946:1">Maxis (MAXIS MK)</a> and <a href="https://www.smartkarma.com/entities/947" target="_blank" data-smartkarma-citation="entities:947:1">AIS (ADVANC TB)</a> .

Returns in emerging market wireless telecoms have bottomed as the sector takes a capex holiday after the 4G roll-out. We continue to like low-return markets where we look for returns to rise (e.g. India, Indonesia, China are prime examples). We have also become more bullish where returns are high and stable (e.g. Hong Kong). A number of markets continue to face tough conditions typically due to rising spectrum payments (e.g. Malaysia and Thailand).Higher returns imply higher cash flows and that is good news for both debt reduction and rising dividends. it also may encourage more M&amp;A, an area we think makes sense for in market consolidation and fixed/wireless convergence.In terms of stocks, we favor names such as Bharti Airtel (BHARTI IN) , China Unicom (762 HK), Telefonica Brasil, XL Axiata (EXCL IJ) and PCCW (8 HK). Top shorts include Maxis (MAXIS MK) and AIS (ADVANC TB) .

Emerging Market Telecoms: Returns Have Bottomed. Outlook Improves.

Japan

USEN-NEXT HOLDINGS Co.,Ltd. provides network information services. The Company provides video contents distribution, music contents distribution, and other services. USEN-NEXT HOLDINGS also provides internet agency, mobile communication, and other services.

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Usen-Next Holdings Co Ltd (9418 JP)

Japan's 5G Future: The Heavy Lifting Has Already Been Done

When we wrote our first 5G note in 5G Set to Disrupt the Cellular Business Model we laid out arguments on how 5G could be more disruptive to mobile...

New Street Research

Emerging Market Telecoms: Returns Have Bottomed. Outlook Improves.

Returns in emerging market wireless telecoms have bottomed as the sector takes a capex holiday after the 4G roll-out. We continue to like...

New Street Research

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