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Stock impact report

PLDT: More Entrants Encouraged By Konektadong Pinoy Act Can Pose A Significant Downside [Seeking Alpha]

PLDT Inc. Sponsored ADR (PHI) 
US:NYSE Investor Relations: pldt.com/investor-relations
Company Research Source: Seeking Alpha
The Konektadong Pinoy Act can significantly alter the current business structure, opening up opportunities for Virtual Network Operators to compete with PLDT. Waves of competition will enter a period where PLDT's profitability is declining and growth is slowing, which could further worsen the problem. Using the Capital Cycle analysis, Konektadong Pinoy may deliver excess capital investment into an industry that is already mature and highly penetrated, thereby depressing its participants' profitability. Despite the attractive valuation of PLDT, I believe that the threat of entrants is more than enough reason to stay on the sidelines. Aleksandr_Vorobev/iStock via Getty Images Downside Thesis PLDT Inc.( NYSE: PHI ) is one of the leading telecommunications companies in the Philippines. The company is a market leader in the fixed-line broadband market and mobile broadband. PLDT is known in the Philippines as a This article was written by Analyst's Disclosure: I/we have no Show less Read more
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