http://www.straightstocks.com Leading Stock Market News, Opinions and Commentary Thu, 26 Nov 2009 02:21:14 +0000 http://wordpress.org/?v=2.8.5 en hourly 1 http://www.straightstocks.com/stock-watch/telekomunikasi-downgraded-analyst-blog/ http://www.straightstocks.com/stock-watch/telekomunikasi-downgraded-analyst-blog/#comments Tue, 24 Nov 2009 16:43:27 +0000 Zacks Market Commentaries http://www.zacks.com/stock/news/27581/Telekomunikasi+Downgraded+-+Analyst+Blog We downgrade our recommendation for P.T. Telekomunikasi Indonesia Tbk. (TLK) to Neutral following the company’s current valuation and increasing competition in the Indonesian telecom market.
 
Deregulation of telecom segment by the Indonesian Government has enabled several competitors to provide similar services at lower costs to subscribers. That country’s wireless service providers slashed prices in 2008 in order to capture market share. As a result, ARPU (average revenue per user) reduced across the industry. Major competitors of Telekomunikasi are P.T. Indosat Tbk. (IIT), and P.T. Excelcomindo Pratama.
 
Indonesia's wireless users often switch service providers to take advantage of low promotional rates and available credit. About 10% of Telkomsel's reported prepaid subscriptions still remain inactive. Moreover, in November 2009, Excelcom and Axis Telecom have signed an agreement for Indonesia’s first roaming network. The deal will allow Axis customers to use Excelcom's network. Telekomunikasi may lose its market share if Axis further expands its operations in the country.
 
Telekomunikasi has decided to spread out its radio access network infrastructure throughout Indonesia. The company’s wireless division Telkomsel has decided to raise its capital expenditure to $1.4 billion in fiscal 2009, an increase of 25% over previous fiscal. This may put further pressure on the company’s leveraged balance sheet.
 
At the same time, current stock price is at the high end of its 52-week price range and moved up more than 53% in 2009. Despite facing competition, the company is exhibiting solid growth in cellular services and data & Internet revenue. Telekomunikasi commands 45% market share for both mobile and fixed-line telecom services in Indonesia. However, we believe these positive factors are already reflected in the current valuation leaving little room for above market gain.
Read the full analyst report on "TLK"
Read the full analyst report on "IIT"
Zacks Investment Research
]]> http://www.straightstocks.com/stock-watch/telekomunikasi-downgraded-analyst-blog/feed/ 0 http://www.straightstocks.com/stock-watch/china-gearing-up-for-3g-warfare-analyst-blog/ http://www.straightstocks.com/stock-watch/china-gearing-up-for-3g-warfare-analyst-blog/#comments Thu, 25 Jun 2009 20:24:29 +0000 Zacks Market Commentaries http://www.zacks.com/stock/news/21487/China+Gearing+Up+for+3G+Warfare+-+Analyst+Blog China, the world's biggest nation by population, also harbors the largest number of wireless users in the world. China Mobile (CHL) remains the incumbent Chinese wireless carrier with a 70% market share, well ahead of the second-place China Unicom (CHU). However, the recently concluded restructuring of the Chinese telecom industry has intensified domestic competition by allowing an additional market entrant.

As per the restructuring mandate, China Unicom merged with China Netcom (a leading fixed-line service provider) and sold its CDMA wireless business to the largest fixed-line operator, China Telecom (CHA), for RMB 110 billion (US$16 billion), creating two entities offering wireless and fixed-line services in China.

Following the overhaul of the Chinese telecom industry, the Ministry of Industry and Information Technology of China issued three 3G wireless licenses in early 2009. China Mobile was awarded the license for TD-SCDMA (an indigenously developed 3G standard), while China Unicom and China Telecom received licenses for the widely adopted WCDMA and CDMA2000 3G standards, respectively.

Currently, three operators are aggressively implementing their respective 3G deployment initiatives. China Unicom had targeted the launch of its 3G services in 55 cities (including Beijing and Shanghai) during the first half of 2009, covering 284 cities by the end of the year, with 74% penetration of China's population.

China Telecom had test-launched 3G services in Shanghai in March 2009 and was supposed to have begun commercial services in April. China Mobile is also conducting trial runs for its homegrown TD-SCDMA based 3G network, with a target of reaching 238 cities in 2009. The company plans to spend RMB 58.8 billion (US$8.6 billion) on 3G network build-outs in 2009 and aims to deploy 60,000 3G base stations during the year.

China Mobile may face challenges of adaptability and performance of TD-SCDMA technology given the faster network speeds offered by the competing technologies of its two rivals. However, the TD-SCDMA based 3G initiative is backed by the Chinese government, which has enforced a number of favorable policies to expedite its development and wider deployment.

Nevertheless, the launch of 3G services is expected to boost data usage and provide all three operators an opportunity to grow their respective subscriber bases. We reiterate our Hold recommendation for CHU and CHA while maintaining Buy rating for CHL.
Read the full analyst report on "CHL"
Read the full analyst report on "CHU"
Read the full analyst report on "CHA"
Zacks Investment Research
]]> http://www.straightstocks.com/stock-watch/china-gearing-up-for-3g-warfare-analyst-blog/feed/ 0 http://www.straightstocks.com/small-cap-and-micro-cap-stocks/crown-castle-international-corp-ccikoob-finds-relative-stability-in-shared-wireless-tower-fees-solid-growth-forecasted-through-2009-2/ http://www.straightstocks.com/small-cap-and-micro-cap-stocks/crown-castle-international-corp-ccikoob-finds-relative-stability-in-shared-wireless-tower-fees-solid-growth-forecasted-through-2009-2/#comments Fri, 05 Dec 2008 16:40:12 +0000 QualityStocks http://Blog.QualityStocks.net/?p=14031 http://www.straightstocks.com/small-cap-and-micro-cap-stocks/crown-castle-international-corp-ccikoob-finds-relative-stability-in-shared-wireless-tower-fees-solid-growth-forecasted-through-2009-2/feed/ 0 http://www.straightstocks.com/small-cap-and-micro-cap-stocks/westwood-one-inc-won-a-major-content-provider/ http://www.straightstocks.com/small-cap-and-micro-cap-stocks/westwood-one-inc-won-a-major-content-provider/#comments Mon, 15 Sep 2008 18:15:46 +0000 QualityStocks http://Blog.QualityStocks.net/?p=12354 http://www.straightstocks.com/small-cap-and-micro-cap-stocks/westwood-one-inc-won-a-major-content-provider/feed/ 0