Telekom: Back to basics

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD

Research House: ECMLIBRA

Price Call: HOLD

Target Price: 4.78

Telekom Malaysia Bhd (T MK, Hold, TP: RM4.78) will go back to basics when it comes to competing against rivals and maintaining its lead in the broadband market. TM currently faces direct competition from several players, including Maxis Bhd and Time Dotcom Bhd. Moreover, direct competition will get more intense with the entry of players like REDtone International Bhd and Packet One Networks (Malaysia) Sdn Bhd in the near term. What makes this landscape interesting is that players like REDtone and P1 will be offering fibre broadband services to customers - via TM's own network. "While they are our customers on the wholesale side, on the retail side, we will have to fight it out. At the end of the day, it's all about understanding our customers' needs and meeting their expectations," said Group CEO Datuk Seri Zamzamzairani Isa. (Business Times) 

Source: ECM Newz Bits 20 March 2012