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

Event-Driven

<p>The December auction resulted in a worst case scenario with spectrum short telcos losing to TRUE and a new player (Jasmine). We now see at least one new competitor entering the market unless there is M&amp;A. Returns were already falling but the auction will accelerate the move to normal returns (or possibly lower). </p><p>It may be a case of be careful what you wish for. The government clearly wanted to raise money from the auctions but by artificially limiting spectrum supply and then folding to state authorities on spectrum that was planned for future auctions, there will now be a real shortage in coming years. That made winning spectrum a necessity. For the losers there are real issues on how to operate going forward.  For the winners the issue is how to make money after overpaying for an asset. We remain negative on the Thai telecom sector which is now faced with much higher costs, more competition and much lower returns. Multiples to be paid for stocks will be reduced and even after sharp price declines we fear there is more to go. . </p>

The December auction resulted in a worst case scenario with spectrum short telcos losing to TRUE and a new player (Jasmine). We now see at least one new competitor entering the market unless there is M&amp;A. Returns were already falling but the auction will accelerate the move to normal returns (or possibly lower). It may be a case of be careful what you wish for. The government clearly wanted to raise money from the auctions but by artificially limiting spectrum supply and then folding to state authorities on spectrum that was planned for future auctions, there will now be a real shortage in coming years. That made winning spectrum a necessity. For the losers there are real issues on how to operate going forward.  For the winners the issue is how to make money after overpaying for an asset. We remain negative on the Thai telecom sector which is now faced with much higher costs, more competition and much lower returns. Multiples to be paid for stocks will be reduced and even after sharp price declines we fear there is more to go. . 

Advanced Info Service

Assessing the Damage to Thai Telcos