Singapore’s telco sector is seing a shakeup with three contenders throwing their hat into the ring to be the republic’s fourth player.

This has led Daiwa Capital Markets to downgrade the sector from “neutral” to “negative”. M1 has also been downgraded to “hold” with StarHub and Singtel held at “underperform” and “hold” respectively.

The possibility of a new player in the telecom market is now highly likely, notes analyst Ramakrishna Maruvada in a Monday report. This has a knock-on effect on the three incumbents, as they might have to spend more and offer larger discounts to retain their customers.

Of the three contenders, MyRepublic, airYotta and TPG Telecom, Ramakrishna notes that airYotta possesses a slim chance of meeting the prequalification criteria set by newly formed Infocomm Media Authority of Singapore (IMDA).

MyRepublic claims that it could survive with just 5% of the market rather than the conventional telecom yardstick of …