The telecoms sector in Asia Pacific (APAC) will face stronger competition and increasing commoditisation in 2019, with revenue gains expected to lag average GDP growth in the region, Moody’s forecast.
In a report, the financial services company predicted overall revenue growth in 2019 will sit at between 2 per cent and 2.2 per cent, while average GDP growth is forecast at 4.6 per cent.
Nidhi Dhruv, a Moody’s senior analyst, said all the telecoms operators in the 11 markets it covers in the region will face strong competition in 2019, with new entrants spurring competitive intensity in Singapore, Japan and Australia.
Moody’s covers operators in Australia, Bangladesh, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines and Singapore.
While overall revenue growth in the region will be modest, the situation will be most pronounced in emerging markets, which are expected to see growth fall to between 3 per cent and 3.5 per cent in 2019 compared with 3.9 per cent in 2017.
Moody’s outlook for the sector in APAC during 2019, however, remains stable with companies in the region likely to show relatively steady leverage and debt levels over the next 12 to 18 months.
Moreover, while liquidity is weakening, such levels remain supported by the companies’ access to the banks and bond market, it said.Subscribe to our daily newsletter Back