China Mobile Recovery Continues as Data Demand Grows Rapidly

From Famine Comes Feast: China Mobile's Strong 1Q16 Driven by Rising Mobile Data Usage

Chinese Telcos: Underlying Return Story Intact Despite Poor Quarterly Results.

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

Equity Bottom-Up

China Unicom Hong Kong / Equity Bottom-Up

<p>We look at concerns over whether Chinese consumers are being overcharged for their telco service. Our analysis on revenue/pop concludes that factoring in wealth differentials, consumers are not overspending relative to their peers and in fact are under-spending on mobile services as a % of income. This supports revenue growth, as the elasticity of data demand in China is the highest of markets where data is available. We remain positive on the sector and see rising returns as essential for the ongoing health of the smaller operators. We favor <a href="https://www.smartkarma.com/entities/1016" target="_blank" data-smartkarma-citation="entities:1016:1">China Unicom (762 HK)</a> of the three on valuation and turnaround potential but are positive on all three operators. </p>

We look at concerns over whether Chinese consumers are being overcharged for their telco service. Our analysis on revenue/pop concludes that factoring in wealth differentials, consumers are not overspending relative to their peers and in fact are under-spending on mobile services as a % of income. This supports revenue growth, as the elasticity of data demand in China is the highest of markets where data is available. We remain positive on the sector and see rising returns as essential for the ongoing health of the smaller operators. We favor China Unicom (762 HK) of the three on valuation and turnaround potential but are positive on all three operators. 

Chinese Telecoms: The Demand Opportunity Remains Intact.