Sorry, all circuits are busy now: Brace yourselves for more network outages

The price to pay for newer services.

Tech-savvy Singaporeans will have to prepare for network outages as these are the prices they have to pay for telcos' newer services like voice over LTE and wider video content coverage.

According to Maybank Kim Eng, data monetisation accelerated in 1Q14, driving mobile revenue to record levels with growth rate at its fastest in more than four quarters. 

Here's more from Maybank Kim Eng:

Tiered data plan users have also hit new highs of more than 50%, and we expect 70% by year-end. Fast-falling handset subsidies are another positive trend that would benefit margins.

Lastly, data roaming has finally stabilized after six quarters of YoY decline. The upshot: Stronger earnings growth prospects for the industry.

As the telcos expand the capabilities of their networks to handle newer services such as VoLTE (Voice over LTE) and the greater demand for video content, there could be network outages.

Regulatory fines aside, the key risk lies in higher user churn owing to unstable networks. One risk particular to SingTel is an acquisition of Shin Corp as was rumoured a few months ago, which we would view cautiously if it materialises.