Singtel

Singtel: CLSA has a SELL on the Group with a TP of $3.31. Above structural concerns on the outlook for SingTel, they are in a position where M1 could take broadband share over the next 18 months by reselling open-access next-generation national broadband network (NGNBN), threathening SingTel's ADSL subs base. Experience in Korea and Japan suggests that fibre rollouts hurt ADSL first but that cable can grow alongside fibre. Additionally, the Company is also competing by selling loss-making TV content.