TRUE-ADVANC-DTAC Ready for a High Jump as Article 44 Will Extend the 900MHz Installment!

It is highly expected that the National Council for Peace and Order (NCPO) will execute Article 44, the government’s absolute power to give any order deemed necessary, to extend the 4th installment of 900 MHz spectrum (4G), giving Advanced Info Service Public Company Limited (ADVANC), Total Access Communication Public Company Limited (DTAC), and True Corporation Public Company Limited (TRUE) the opportunity to participate in the 5G bidding.

Three telecom operators had submitted petitions in order to extend the 4th installment, so that they could participate in the bidding for 5G spectrum.

 

Nomura Securities stated that TRUE would receive the most benefit from this extension as the 4th installment is due in 2020 for a total of THB 60,218 million. The interest the TRUE have to pay would decrease by THB 1,000 million per year. Nomura has given a target price for TRUE at ฿8.10/share, upgraded by ฿0.30/share from the previous target price.

DTAC is the operator that Nomura viewed as the second most beneficial in the extension as the company has THB 30,024 million from its 4th installment due in 2022. The interest that DTAC needed to pay would decrease by THB 525 million per year. Nomura has chosen DTAC a top pick share out of the three operators, given a target price at ฿54.80/share, upgraded by ฿1.80/share from the previous target price.

Lastly, ADVANC will be the one who receives this benefit as the company has THB 59,574 million on its 4th installment due in 2020. Even though the extension would save the interest by THB 1,000 million per year, it is accounted to only 3% of ADVANC’s profit which is about THB 30,000 million a year. Nomura has given a target price for ADVANC at ฿208.2/share, upgraded by ฿3.20/share from the previous target price.