[ET Net News Agency, 19 September 2018] Citi Research noted that HKT subsidiaries will
start to raise monthly fees of certain 4G plans by 20% from 21 September. The research
house believes this is positive to HK mobile operators, indicating a suspension of a
two-year long price competition.
However, Citi expects the chance is not high for other mobile players to follow HKT with
aggressive price increases, and the revenue/earnings benefit from a mobile price hike
could be limited without flagship smartphone or apps as major selling points.
Citi prefers HKT Trust (06823) among HK telcos on better earnings visibility and
compelling valuations (over 6% dividend yield). Smartone (00315) would benefit the most if
there is significant sector price hike. (KL)