KUALA LUMPUR (Oct 24): Malaysian telecommunication companies (telcos) will continue to experience intense competition, margin squeeze and high capex, according to Fitch Ratings. In an outlook report published yesterday, Fitch sees continuing pressure on data tariffs, limiting any meaningful recovery in mobile operators' revenues. However, it said competition in the fixed-line and fibre broadband segments will remain moderate. To preserve cash flows, operators are likely to monetise non-core assets or cut dividends to ease pressure on leverage,”it said. Fitch anticipates limited upside on the sector outlook, as the ongoing weakness in the Malaysian ringgit and intense competition are likely to weigh on operating cash flows.

Source: The Edge Markets October 23, 2016 22:52 UTC