ECM Libra Investment Research is maintaining a neutral recommendation on the telecommunications sector due to its attractive yields as YTL Communications Sdn Bhd's entry into the business with the launch of the 4G WIMAX service is unlikely to cause any immediate and irrational increase in competition.

Constrained by a lack of variety of popular smartphones, ECM Libra said it expected the initial take-up rate of Yes's mobile voice and SMS services to be limited.

'Until more 4G WIMAX smartphones are available in the market,

Yes is likely to be just a pure data play, and not yet a quad-play,' it said in a research report today. - Bernama