Communications

Report by the IDEA!

Having received a growing number of questions from investors about the dynamics in the Dutch FttH/O market, the IDEA! takes a deep dive into the market with this 67-page report and stumbles on some surprising findings. They discover that there will be overbuild on a massive scale (by almost 50%), which will hamper profitability and capital allocation for the telecom sector, have negative effects for consumers / society at large and will slow down the rollout in areas without fibre.

Communications

Report by New Street Research

Can prices be lifted to offset rising costs? Some operators have a legally defined right in customer contracts to lift price in line with inflation - whether they actually will lift will come down to local competitive dynamics and consumer attitudes to rising prices. New Street’s proprietary consumer survey results suggest that companies need to think very carefully about lifting price, as attitudes have shifted toward being more price conscious, even for the incumbents. New Street thinks owning BT, Tele2 and KPN are the best ways to insulate against rising costs.

Report by New Street Research

Russell Waller wasn’t sure what to expect when researching the financial merits of ESG investing in the Telecoms sector, but in his latest report he found clear evidence of better TSR for Telco ESG leaders, that those with better Governance (no Government ownership) outperformed, and that ESG can help companies in the sector have lower borrowing costs. Russell shows how the stocks stack up on a variety of ESG ratings and identifies which ones should do well from the next wave of ESG money. His “Climate Champions” include Deutsche Telecom, Telefonica and KPN.