Asian telecommunications company bonds could outperform those of their European counterparts as their credit ratings are unlikey to be as dented by high third-generation license costs, according to a report by Merrill Lynch.
European telecommunications companies including British Telecom, France Telecom and Deutsche Telekom have seen their credit ratings drop after they paid high prices for European 3G licenses. Third generation licenses allow higher data transmission rates than existing second-generation standards.
You're not buying the same credit story in Asia as you are in Europe, says Jason Carley, head of fixed income credit research at Merrill Lynch in Hong Kong. Even in Korea, Hong Kong and Australia, where demand for...
