- SingTel announced on 29 Apr a Multi-Operator Core Network (MOCN) sharing agreement with TPG in Australia. Optus expects to receive total service fees of approximately AUD1.6bn over the 11-year term of the agreement. This translates to incremental cashflow of approximately AUD900m over the same time frame.
- - Read this at SGinvestors.io -
- We highlighted a potential Optus rejig in the offing and see it as a key catalyst for SingTel share price. See report: SingTel - 42% HoldCo Discount Unfair Amid Multiple Catalysts.
We think regulatory approval won’t be a challenge
- - Read this at SGinvestors.io -
- Also when the Telstra-TPG network deal was announced, Optus warned that it may have to reconsider its regional Australia rollout which bought risk of only one regional network. Telstra is already an incumbent regional operator with a massive reach and thus we don’t see it scaling back its investments in response to an Optus-TPG deal.
Optus impairment unlikely to hit SingTel dividends
- Read more at SGinvestors.io.
