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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)

Denmark Telecom services / Thematic (Sector/Industry)

We have looked at wireless supply and demand for 92 operators in 25 countries (but the focus here is largely on Asian markets). The various parameters in our analysis show great diversity between markets – usage growth, network density, spectrum in use, network stress levels and unit costs. We think it is important to understand the specific dynamics between operators in individual national markets and the position of each market relative to regional and global ‘norms’.  The opportunity and risk profile for individual operators depends on both of these.<ul class=""><li>We like markets where the lack of network stress can lead to rising returns through lower capex, such as China, Japan and Korea.</li><li>We like companies that are well placed to exploit the network stresses of others, including US cable names (<a href="https://www.smartkarma.com/entities/1059" target="_blank" data-smartkarma-citation="entities:1059:1">Comcast (CMCSA US)</a> and <a href="https://www.smartkarma.com/entities/1058" target="_blank" data-smartkarma-citation="entities:1058:1">Charter (CHTR US)</a>) and a number of Emerging Market telcos such as <a href="https://www.smartkarma.com/entities/24634" target="_blank" data-smartkarma-citation="entities:24634:1">America Movil (AMXL MM)</a>, <a href="https://www.smartkarma.com/entities/943" target="_blank" data-smartkarma-citation="entities:943:1">Telekom Malaysia (T MK)</a>, <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/953" target="_blank" data-smartkarma-citation="entities:953:1">Bharti (BHARTI IN)</a>.</li><li>We are concerned about companies with high network stress and no clear solutions, including Reliance Jio, <a href="https://www.smartkarma.com/entities/790" target="_blank" data-smartkarma-citation="entities:790:1">Verizon (VZ US)</a>, <a href="https://www.smartkarma.com/entities/784" target="_blank" data-smartkarma-citation="entities:784:1">AT&amp;T (T US)</a> , <a href="https://www.smartkarma.com/entities/945" target="_blank" data-smartkarma-citation="entities:945:1">DIGI (DIGI MK)</a> and M<a href="https://www.smartkarma.com/entities/946" target="_blank" data-smartkarma-citation="entities:946:1">axis (MAXIS MK)</a> as well as those where network stress restricts cash generation, such as in Thailand (<a href="https://www.smartkarma.com/entities/948" target="_blank" data-smartkarma-citation="entities:948:1">DTAC (DTAC TB)</a>. </li><li>We remain bearish on European wireless, where the lack of network stress precludes operators gaining any real pricing power, keeping data monetization weak. This leaves us negative on <a href="https://www.smartkarma.com/entities/21687" target="_blank" data-smartkarma-citation="entities:21687:1">Telefonica Deutschland (O2D GR)</a> and neutral on <a href="https://www.smartkarma.com/entities/22204" target="_blank" data-smartkarma-citation="entities:22204:1">Vodafone (VOD LN)</a>.</li></ul>Network stress by market ranked at 2017 implied stress<div class="content-caption">Data usage (PB/month) / Nominal network capacity (Tbps)<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/035/034/original/global%20net%20stress%20implied.png?1507164070" class="editor-image img-responsive" data-smartkarma-image-id="35034"></figure>Source: New Street Research </div>

We have looked at wireless supply and demand for 92 operators in 25 countries (but the focus here is largely on Asian markets). The various parameters in our analysis show great diversity between markets – usage growth, network density, spectrum in use, network stress levels and unit costs. We think it is important to understand the specific dynamics between operators in individual national markets and the position of each market relative to regional and global ‘norms’.  The opportunity and risk profile for individual operators depends on both of these.We like markets where the lack of network stress can lead to rising returns through lower capex, such as China, Japan and Korea.We like companies that are well placed to exploit the network stresses of others, including US cable names (Comcast (CMCSA US) and Charter (CHTR US)) and a number of Emerging Market telcos such as America Movil (AMXL MM), Telekom Malaysia (T MK), XL Axiata (EXCL IJ) and Bharti (BHARTI IN).We are concerned about companies with high network stress and no clear solutions, including Reliance Jio, Verizon (VZ US), AT&amp;T (T US) , DIGI (DIGI MK) and Maxis (MAXIS MK) as well as those where network stress restricts cash generation, such as in Thailand (DTAC (DTAC TB). We remain bearish on European wireless, where the lack of network stress precludes operators gaining any real pricing power, keeping data monetization weak. This leaves us negative on Telefonica Deutschland (O2D GR) and neutral on Vodafone (VOD LN).Network stress by market ranked at 2017 implied stressData usage (PB/month) / Nominal network capacity (Tbps)Source: New Street Research 

Global Telecoms: Wireless Supply and Demand Compared. Huge Variations in Network Stress