Skip to main content

M’sia, S’pore regulators ordering telcos to cut roaming rates between countries, says CIMB

This is good news for the consumers.

WRITTEN BY THE EDGE
TUESDAY, 01 JUNE 2010 11:58
The regulators of Malaysia and Singapore are ordering cellcos to reduce the roaming rates between the two countries by 20% for retail and 30% for wholesale rates by Aug 2010, according to CIMB’s industry contacts.

The research house says this is not entirely surprising as the issue was first brought up two years ago but subsequently died down.

“We think that the Singapore telcos will be more affected than the local ones as roaming is a bigger contributor to total revenue because of Singapore’s more open economy. We expect M1 and StarHub to be most affected by such a move which could crimp both their core net profit by 4-5%. Our top pick continues to be XL Axiata which remains an Outperform with a target price of Rp4,750.”

According to CIMB sources, a letter was sent by the regulators to all the telcos directing them to lower their roaming rates by 30% for wholesale and 20% for retail by August 2010.

“We gather that the telcos are protesting against this move and it remains to be seen if the regulators will get their way. A wholesale rate is how much a hosting telco charges the foreign operator while the retail rate is how much the roaming telco charges its customers.”

CIMB believes lower roaming charges would be net negative for the Singaporean and Malaysian cellcos due to the inelastic nature of roaming revenues, at least in the short term.

“As most of the roamers are business users, we do not think that lower roaming rates will change their call patterns much in the short term. But over the longer haul, lower roaming tariffs could stimulate usage,” the research house adds.

It says Singapore telcos will generally be more affected than the Malaysian telcos given Singapore’s more open economy, higher percentage of travellers and smaller domestic base.

“We estimate that M1’s core net profit could be affected by 5%, followed by StarHub at 4% and SingTel at 1%.”

Among the Malaysian operators, CIMB estimates that Maxis will be the most affected at 2% of core net profit, followed by DiGi at about 1% and Axiata at 0.8%.

Popular Posts

Ho Ching named 5th most powerful and is mistaken as first lady by Forbes

Forbes named Singapore Prime Minister wife and CEO of Temasek Holdings, Ho Ching, as the 5th most powerful woman in the world. Ho Ching is mistaken as Singapore's first lady! OMG!

I wonder how can Forbes makes such a blunder. For a complete list, refer to here.

How to stop FortiClient from starting automatically?

Installed FortiClient recently but the challenge in disabling the application/service from running automatically on every start-up annoyed me. Attempt to stop 'FortiClient Service Scheduler' only return 'Parameter is incorrect' error message.

An article on Technet help solve my trouble. To stop FortiClient from starting automatically, try the following:
Shut down FortiClient from the system tray.
Run net stop fortishield on command prompt.
Run msconfig.
On msconfig, switch to the Services tab. Clear the FortiClient Service Scheduler check box and click Apply.Run services.msc on command prompt to open up show all available services.Look for FortiClient Service Scheduler. Switch Startup type to Manual.Restart your computer. FortiClient should not be running automatically the next time round. Hope it helps.

DBS Coin Deposit Machines

DBS Bank has installed quite a few Coin Deposit machines at various locations e.g. Woodlands Civic Centre, Bedok, Towner Rd, South Bridge Rd, etc. These machines even accept 1 cent coins. However, the use of these machines do incur charges.

Read on
100 pieces = 75 cents ($0.75) chargeIf you deposit before 2pm on a working day, you will only see it in your bank account by 8pm on the same dayIf you deposit after 2pm on a working day or on a non-working day, you will only see it in your bank account by 8pm on the next working dayCharges are waived for kids account Correction: Charges will still be debited from a kid's (less than 12 years old) account when doing coin deposit. To waive the charges, you are required to retain the receipts and bring them personally to a DBS/POSB counter for a refund. Yes, the Coin Deposit machines are not intelligent enough to determine if the designated account is a kid's account.Currently, DBS website does not have information on this new Coin Deposi…