DISCLOSUREAPPENDIXATTHEBACKOFTHISREPORTCONTAINSIMPORTANTDISCLOSURES,ANALYSTCERTIFICATIONS,LEGALENTITYDISCLOSUREANDTHESTATUSOFNON-USANALYSTS.USDisclosure:CreditSuissedoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethattheFirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.13February2019AsiaPacificEquityResearchTelecommunicationServicesAsiaTelecomsSectorCONNECTIONSSERIESTheCreditSuisseConnectionsSeriesleveragesourexceptionalbreadthofmacroandmicroresearchtodeliverincisivecross-sectorandcross-borderthematicinsightsforourclients.ResearchAnalystsColinMcCallum,CA85221016514colin.mccallum@credit-suisse.comKeiichiYoneshima81345509740keiichi.yoneshima@credit-suisse.comSunilTirumalai912267773714sunil.tirumalai@credit-suisse.comEntchoRaykovski61392801716entcho.raykovski@credit-suisse.comVarunAhuja,CFA6562123017varun.ahuja@credit-suisse.comDannyChan60327232082danny.chan@credit-suisse.comSoyunShin82237073736soyun.shin@credit-suisse.comBillyLee85221016529billy.lee@credit-suisse.comViralShah912267773827viral.shah@credit-suisse.comLachlanBrown61392801659lachlan.brown@credit-suisse.com5G:CountingthecostandpickingthewinnersFigure1:5Gcostsbecomingareality—telcocapexforecasts(US$mn)020,00040,00060,00080,000100,000120,000FY17FY18FY19FY20ChinaIndiaIndonesiaMalaysiaThailandAustraliaHongKongKoreaTaiwanSingaporeJapanSource:,CreditSuisseestimates■Operatorsbeginningtoincurrealcostsfor5G.OperatorsinKoreaandAustraliahavealreadypurchased5Gspectrumatauction.InChina,on7December2018,theMIITissuedallocationsofmid-band5GspectrumtothethreeChinatelcosfornationwide‘trials’,andinJapanallocationsaretobeawardedinMarch2019.Operatorsarethereforebeginningtoincurrealcostsfor5G,intheformofspectrumfeesand,in2019,capex.■Endusecasesstillnotconvincing.Therestillseemstobenopressingneedfornationwide5Gcoveragefor‘massmarket’consumers,inthewaythatvideo,e-comme...
