Equity Analysis /
Indonesia

ID : Telco - Tower - Potential impacts from telco consolidation

    Willy Suwanto
    Willy Suwanto

    Research Analyst

    Follow
    CGS-CIMB
    15 January 2021
    Published byCGS-CIMB

    As the ISAT-H3I deal is likely to go through, we believe slower lease growth would be the potential short-term negative impact on tower companies. However, operator consolidations will reduce price competition, enhance returns, fueling growth eventually, given the still under-penetrated market. We view telco consolidation to 3 or 4 players as being more beneficial than detrimental to tower industry over the mid-to-long term. Maintain Overweight.