Singtel's Optus adds 147,000 subscribers in Q1

It seeks to fend off competition from TPG.

Telco giant Singtel continues to see growth in its Australian operations as competition heats up.

According to RHB, Optus added 147,000 subscribers during the quarter, which is a five year high.

"We expect the strong momentum to continue on the back of the improvement in 4G network coverage," RHB said.

Optus expects to close the coverage gap with Telstra (98% population coverage) by 2018, which alongside the strong content bundling would put it in a solid position to fend off competition from TPG Telecom (TPG), which would likely compete on price.

"While competition remains intense across all segments, Optus would look to further optimise its cost base via digitalisation initiatives, and to capitalise on group-wide procurement savings. On network/tower sharing, management indicated it had commercially negotiated with Optus, and is already sharing certain sites with Vodafone Hutchison," RHB said.