Telco

Telco: Yesterday, MyRepublic received $30m in funding from Indonesian telco Sunshine Network, owned by Sinar Mas and French telecom billionaire, Xavier Niel. This should help lay down the first bricks for the group to embark on its bold ambition to penetrate a sector dominated by three players. Market watchers generally described MyRepublic’s presence in the market as annoying but inconsequential, with the group citing that they plan to disrupt the market by undercutting prices. The IDA will be releasing its plan by this quarter, on whether to allow a fourth telco network to operate in Singapore. In view of the uncertain regulatory and competitive landscape, this could spell greater uncertainty and earnings volatility for the three incumbent telco players, SingTel, StarHub and M1, which have been enjoying a stable competitive environment for the past decade.