Smarter News Now
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting
No Result
View All Result
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
No Result
View All Result
Smarter News Now
No Result
View All Result
Home Investing News

5G capex risk a top issue for investors — Fitch

by
January 18, 2021
in Investing News
0
5G capex risk a top issue for investors — Fitch
0
SHARES
4
VIEWS
Share on FacebookShare on Twitter

FITCH Ratings said the pace of investment in the fifth-generation (5G) technology is among the top issues for credit investors in the telecommunications sector in the Asia-Pacific region.

The global debt watcher said emerging markets in the Asia-Pacific region like the Philippines are “likely to pace 5G investments over the next few years to support cash flow, and enable investments to meet proven demand.”

“Capex (capital expenditure) intensity in these markets typically hover around 25%-40%, above the region’s average in the low 20s,” it said in a non-rating action commentary e-mailed to reporters on Monday.

In advanced markets like South Korea, China, Taiwan, Singapore, and Australia, telecommunications companies are likely to position 5G as a “network differentiator to strengthen their competitiveness.”

The debt watcher expects operating cash flow to significantly “lag behind 5G investments, keeping free cash flow (FCF) constrained over the next three years,” Fitch Ratings added.

Near-term uplift from 5G revenue is unlikely to be significant, Fitch Ratings said further, citing a lack of “compelling” applications that differentiate 5G services from 4G.

“Our forecasts assume staggered 5G capex and spectrum costs as these become certain, with low visibility on returns over the next three years. The impact will, however, be uneven across the portfolio in light of the asymmetrical developments,” it explained.

PLDT, Inc. Chief Revenue Officer Alfredo S. Panlilio said in a virtual briefing in October last year that the telco may set a higher budget for 5G in 2021.

PLDT’s wireless arm Smart Communications, Inc. launched its 5G service commercially in July last year.

The company also plans to roll out more fiber lines and ports nationwide, as it aims to serve the “continuously rising demand of more Filipinos for high-speed broadband and connectivity.”

Globe Telecom, Inc. is also rolling out more 5G areas this year. Globe’s 5G is currently available in 1,045 areas in the country.

PLDT’s 5G network is available in its headquarters in Makati City, New Clark City in Pampanga, and Araneta in Quezon City.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

ShareTweetPin

Related Posts

BIR tobacco tax take ahead of 2020 pace after JTI expansion
Investing News

BIR tobacco tax take ahead of 2020 pace after JTI expansion

February 28, 2021
PEMC to take over supervision of metering services providers
Investing News

PEMC to take over supervision of metering services providers

February 28, 2021
Securities regulator launches online payment portal
Investing News

Securities regulator launches online payment portal

February 28, 2021
Senate trade committee sets hearing on creative industries bill
Investing News

Senate trade committee sets hearing on creative industries bill

February 28, 2021
Investing News

Narrowing the scope for transfer pricing reporting

February 28, 2021
Price controls, food imports, and roadmaps
Investing News

Price controls, food imports, and roadmaps

February 28, 2021
Next Post
Fewer Filipino families had access to basic water, sanitation facilities in 2020 — PSA

Fewer Filipino families had access to basic water, sanitation facilities in 2020 — PSA

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Email Address *
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!
 

Recommended

U.S. business to Trump: Go slowly on Hong Kong response

U.S. business to Trump: Go slowly on Hong Kong response

May 28, 2020
France to see worst post-war downturn this year: minister

France to see worst post-war downturn this year: minister

April 6, 2020
Top 5 Things to Know in the Market on Friday, July 10th

Top 5 Things to Know in the Market on Friday, July 10th

July 10, 2020
Denmark’s Novo Nordisk to buy Emisphere Technologies in $1.8 billion deal

Denmark’s Novo Nordisk to buy Emisphere Technologies in $1.8 billion deal

November 6, 2020
Cash-strapped Venezuela hikes public service fees amid coronavirus outbreak

Cash-strapped Venezuela hikes public service fees amid coronavirus outbreak

March 19, 2020

How to be financially stable in coming years

January 22, 2021
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

Copyright © 2021 SmarterNewsNow.
All Rights Reserved.

Disclaimer: SmarterNewsNow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

No Result
View All Result
  • About Us
  • Contact Us
  • Email Whitelisting
  • Home
  • Privacy Policy
  • Terms & Conditions
  • Thank You

Copyright © 2020 SmarterNewsNow. All Rights Reserved.







Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Email Address *




Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!