- We believe SingTel (SGX:Z74)’s Indonesian associate’s integration with its parent’s fixed broadband (FBB) business (IndiHome) will expand its addressable market and drive customer stickiness with potential for greater ARPU uplift.
- - Read this at SGinvestors.io -
- We also see SingTel paying FY23F dividend at the top-end of guidance. Our target price for SingTel factors in a 6% ESG premium based on our in-house methodology.
- - Read this at SGinvestors.io -
Fixed-mobile convergence (FMC) deal signed.
- SingTel’s 35%-owned associate Telekomunikasi Selular (Telkomsel) has inked a conditional spin-off agreement (CSA) that will see parent Telkom Indonesia (TLKM IJ)'s wholly-owned fibre broadband wing integrated into Telkomsel’s mobile business. See SingTel's announcement dated 06 April 2023.
- This transaction crystallises the FMC (Fixed-Mobile Convergence) strategy articulated earlier and is consistent with SingTel’s business pivot towards high-growth assets.
- Globally, there is some evidence of FMC serving as a potent acquisition tool to snare and lock-in mobile subscribers from rivals.
Stake dilution should be viewed in the context of a larger addressable market.
- Read more at SGinvestors.io.
