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HSBC cuts price targets on Kuwait telecoms operators |
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Wednesday, 07 December 2011 01:55 |
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Kuwait: HSBC has cut its price targets on shares of Kuwait's telecoms operators Wataniya and Zain and said it expects the government's new decree to increase licence fees to hurt margins of all operators, Reuters has reported. In the third quarter, the Kuwaiti communication ministry issued a new law to increase licence fees paid to the government, which will likely ease competition as operators scramble to clean up their subscriber count by terminating inactive accounts to reduce costs, the
brokerage said. The new decree is also expected to impact Saudi Telecom-owned Viva the most, which could lose its cost advantage going forward, HSBC said. [AMEInfo.com] Read more:
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