Here's why M1 will be the biggest loser if a new telco comes to town

It'll lose a huge chunk of its spectrum allocation.

The game has already begun for the aspiring telcos to join the three industry giants. But for incumbent M1 Limited, the worse is yet to come.

According to Maybank Kim Eng, M1 is likely to be the most badly affected by the new incoming competition.

"We view M1 as likely to be the most badly affected by new incoming competition due to its pure mobile-only business that will be squarely targeted by the new entrant," analyst Gregory Yap said in a report.

Three aspiring telco has already submitted their Expressions of Interest (EOI) to Infocomm Development Authority of Singapore (IDA) including MyRepublic, AirYotta and TPG Telecom.

Yap argued that as the two smallest operators, M1 and Starhub could be losing more consumer market share to the new entrant, with the latter losing less due to its stronger multi-play hold on subscribers.

"The new operator should begin operations by 2H17, but the market is likely to go into aggressive price promotion mode over the next 12-18 months and after the new entrant launches and prices its services. We expect M1 to be most at risk of losing market share," Yap said.

He noted that M1 spectrum allocation might be reduced if the fourth telco emerges and takes up its full reserve.

Another downside for the telco, Yap said is the subscriber churns once users decide they need more than mobile and broadband.

IDA Will review the three telco aspirants' EOIs and decide who qualifies within the next 20 days.