A-Pac telcos to consolidate in pursuit of 5G scale: Fitch

Singapore: Tough competition and advantages of scale will drive consolidation in the Asia Pacific telecoms industry ahead of higher 5G investments, according to Fitch Ratings.

The 5G technology will favour larger operators with strong balance sheets which are expected to contribute to diverging credit quality over time among telecom operators, it said.

Scale becomes increasingly important for telcos to drive cost efficiencies and manage cash flows amid a subdued growth environment.