Published: 2010/06/18
OSK Research Sdn Bhd has largely maintained a "neutral" call on Singaporean and local telecommunications operators (telcos) under its coverage, pending further development on possible lower roaming call rates between both countries.
Both communication ministries in Singapore and Malaysia jointly announced earlier this week a proposal for mobile operators in Malaysia and Singapore to cut voice call charges by 30 per cent and SMS charges by 50 per cent for roaming services between both countries.
The regulators are expected to provide an update on the proposal in the third quarter of the year.
"While lower roaming rates (by the host operator) and call charges (by the principal operator) would be positive for the growing number of inbound and outbound travellers from either countries, we believe the upside from potentially higher usage offsetting lower call revenues will only accrue over the longer term, given that roaming calls are typically inelastic in nature," said the research house.
It added that Singaporean telcos tend to lose more if the new roaming rates and agreements come into force as they have a higher proportion of roaming revenue and roamers on their networks, both inbound and outbound.
OSK estimates that roaming revenue makes up 10-25 per cent of Singaporean telcos' overall mobile revenue and some 8-10 per cent of Malaysian telcos
http://www.btimes.com.my/Current_News/BTIMES/articles/jtelco17/Article/
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