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>China is looking to improve SOE returns. Regulators are pushing for a level playing field among the Chinese telcos. However, scale at China Mobile (CM) and the recovery from a weak 3G offering mean profits and returns are stronger at CM while returns are (and likely to remain) sub optimal at China Telecom (CT) and China Unicom (CU).</p><p>A merger of CT and CU would improve competitive dynamics and result in up to $17bn of synergies. While not imminent, we expect merger talk to increase in the next 6-12 months. A merged CT/CU would create a credible competitive counter to CM's growing market dominance. In our view the key beneficiary would be CT in this process. Combined with strong execution and rising market share, CT is attractive at current valuations and prospects and more so under a merger.</p>

China is looking to improve SOE returns. Regulators are pushing for a level playing field among the Chinese telcos. However, scale at China Mobile (CM) and the recovery from a weak 3G offering mean profits and returns are stronger at CM while returns are (and likely to remain) sub optimal at China Telecom (CT) and China Unicom (CU).A merger of CT and CU would improve competitive dynamics and result in up to $17bn of synergies. While not imminent, we expect merger talk to increase in the next 6-12 months. A merged CT/CU would create a credible competitive counter to CM's growing market dominance. In our view the key beneficiary would be CT in this process. Combined with strong execution and rising market share, CT is attractive at current valuations and prospects and more so under a merger.

Chinese Telecoms: A merger of China Telecom and China Unicom would improve competitive dynamics.

China Telecom (H)

Chinese Telecoms: A merger of China Telecom and China Unicom would improve competitive dynamics.