Thanks Azwin for a very interesting article.
As it stands, it remains a proposal but there seems to be a lot of resistance from the existing service providers.
We just analysed SingTel so lets look at Starhub and Mobile One
Mobile One H1 2015
Revenue Growth 19.1%
Profit Growth 3.8%
Current Ratio 0.44 (Should be more than 1)
Debt to Equity Ratio 1.71 (should less than 1.5)
Cash and equivalents S$33M
Starhub H1 2015
Revenue Growth 5.2%
Profit Growth -3.2%
Current ratio 0.51 (should be more than 1)
Debt to Equity Ratio 11.0 (should be less than 1.5)
Cash and equivalents S$154M
So you can see that SingTel has the financial muscle to take on any competitors. But Mobile One and Starhub will face some headwinds.
Whether the authorities will allow a fourth competitor is anyone’s guess. SingTel would remain the Number 1 brand in Singapore.
