[ET Net News Agency, 18 October 2018] Telecommunication companies in Asia-Pacific's
largest markets are well placed in the global move toward fifth generation (5G) wireless.
That's according to a report, titled "The Future Of 5G: In Asia-Pacific, Developed
Countries Are Leading The Charge," that S&P Global Ratings published today.
"Korea, Japan, and Australia are leading the 5G race in Asia-Pacific, with China aiming
to emerge on top globally over the medium to long term," said S&P Global Ratings credit
analyst JunHong Park.
"The strong cash flows of operators in most of these large markets will enable them to
absorb the 5G spending." he added.
With developments well underway, South Korea is likely to launch 5G wireless as early as
first-half 2019, with Australia, Japan, and China following suit. Other developing markets
in the region, such as India, Indonesia, Malaysia, and Thailand, are still investing in
fourth generation technology, and will be late followers.
"Telcos in Korea and Japan will likely have lower incremental capital outlays, given the
advanced level of their current network," said Park. "While in Australia, capital
expenditure is likely to go up for 5G fixed wireless broadband services."
The telcos in Asia-Pacific's largest markets will continue to benefit from their strong
market position and ability to generate steady cash flows even in the face of intense
competition and increasing regulatory pressure on tariff.
Nevertheless, larger-than-expected 5G investments or debt-financed acquisitions could
pose downside risks. Also, developing new and profitable 5G revenue streams will be a
challenge, at least in the near term. (KL)