Buy StarHub for upside, 6% yield: DBS Vickers

Buy StarHub for upside potential and 6% yield, DBS Vickers says, noting falling 3G smartphone prices are expected to benefit regional telcos; “besides a lower subsidy burden from Android phones, StarHub is managing its traffic costs better than peers.” It expects StarHub to benefit from the National Broadband Network due to higher adoption grant as an official OpCo and on gains in the corporate data market where SingTel commands a more than 80% market share. The stock is up 1.4% at $3.63.