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

Twelve months ago Thai analysts were almost certain that telco margins would rise and stay at elevated levels as concession fees ran off. The auction process delivered a major shock and share prices collapsed. Instead of a cosy three player oligopoly there is now a 4th entrant ( <a href="https://www.smartkarma.com/entities/949" target="_blank" data-smartkarma-citation="entities:949">Jasmine Intl Public Co Ltd</a> ) (JAS) and possibly additional player using TOT and CAT capacity. Thai telcos will never be the same again.Following the stocks move, there has been a partial recovery. Investors point to yields and damage being a one off event. We are not so sure. Thailand remains spectrum scarce although there is now a path to gaining control of the required spectrum. But it will be expensive. The impact on balance sheets is significant. There is also an issue of spectrum imbalance with the no3 player now controlling significantly more spectrum than the market leader. That suggests market share shifts and rising competitive pressure. This will occur in a telecoms market that is already ex growth. There are doubts about JAS and <a href="https://www.smartkarma.com/entities/8" target="_blank" data-smartkarma-citation="entities:8">True Corp Pcl</a> (TRUE) ability to pay for the 900MHZ spectrum. We do not profess intimate knowledge of the banking negotiations  but for now at least we assume they will eventually make the payment. To fail would cast them into the wilderness in future auctions.

Twelve months ago Thai analysts were almost certain that telco margins would rise and stay at elevated levels as concession fees ran off. The auction process delivered a major shock and share prices collapsed. Instead of a cosy three player oligopoly there is now a 4th entrant ( Jasmine Intl Public Co Ltd ) (JAS) and possibly additional player using TOT and CAT capacity. Thai telcos will never be the same again.Following the stocks move, there has been a partial recovery. Investors point to yields and damage being a one off event. We are not so sure. Thailand remains spectrum scarce although there is now a path to gaining control of the required spectrum. But it will be expensive. The impact on balance sheets is significant. There is also an issue of spectrum imbalance with the no3 player now controlling significantly more spectrum than the market leader. That suggests market share shifts and rising competitive pressure. This will occur in a telecoms market that is already ex growth. There are doubts about JAS and True Corp Pcl (TRUE) ability to pay for the 900MHZ spectrum. We do not profess intimate knowledge of the banking negotiations  but for now at least we assume they will eventually make the payment. To fail would cast them into the wilderness in future auctions. 

Thai Telcos: The Worst Is Over. Or Is It?

Advanced Info Service

Thai Telcos: The Worst Is Over. Or Is It?