M1

M1: At the ongoing dbAccess Asia 2014 conference, management stated the broadband market had become a lot more competitive. But recent competition has been driven by aggressive promotional pricing by incumbents, rather than smaller new entrants. Management views base pricing as having reached a floor, but conceded adhoc promotions/discounts may continue to constitute a pressure point. In response to IDA's recent industry consultation on introducing more players into the mobile market, management appears to see few risks of the sector becoming more crowded in the near term. The business model for a greenfield MNO would be extremely challenging. Management sees limited opportunities for new MVNOs in this market, and does not believe regulated wholesale pricing can be easily implemented or enforced. Management expressed optimism around continued mobile ARPU momentum, with the positive impact of tiered pricing and doubling of excess data charge (effective Jan) still working through the base, as these are applied to new/recontracting subscribers. ARPUs should get an additional boost when the existing 4G VAS charge waiver is lifted. DB has a Buy rating with $3.82 TP.