Telco

Telco: The IDA and MDA have decided not to go ahead with Project NIMS, which is the universal set top box that would have allowed sharing of just one set top box for delivering video and other digital services over the Next Generation Nationwide Broadband Network (NGNBN). Under the current system, all operators deploy their own set top box, hence households subscribing to StarHub, mio TV and 1box (from M1) would have required 3 set top boxes to be installed in their homes. The cancellation of Project NIMS would likely have a negative impact on M1, given its lack of content relative to StarHub and SingTel. M1 had hoped to ride on the platform to advance its Pay TV plans. StarHub is the likely beneficiary, as the barriers to distribution are retained. StarHub has the most number of Pay TV customers under its belt, and viewed as having the strongest content offering. Trailing 12m yield for the 3 telcos as follows. SingTel – 8.4% (incl special div of 10cts) StarHub – 6.2% M1 – 5.9%