Buy Time dotCom shares: OSK

Time dotCom Bhd's wholesale segment would be the beneficiary of an increasing demand for internet bandwidth and the rising trend of mobile operators fiberising their 3G networks with an estimated RM3.75 billion market potential.

OSK Research in a research note today said there is a strong upside potential as Time dotCom's share of the wholesale market is a paltry nine per cent of an indicative addressable market of RM1.83 billion.

"We believe Time dotCom's current management team has the credentials to move the company to the next level, after having successfully engineered its turnaround in 2009," it said in a research note today.

It also said the soon-to-be concluded acquisition of three companies with business synergies, should drive the group's next leg of growth, and enable it to ride on the robust regional prospects.

"The purchase would allow Time dotCom to capitalise on soaring demand for international and intra-regional bandwidth, which is projected to hit 4 Tbps by 2020 from 0.2 Tbps currently," it added.

The research house has commenced coverage on the telecommunications company, initiating a "buy" call and a fair value of 67 sen. -- Bernama