5G spectrum award to telcos defers capex risk, says Maybank Investment

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It says financial impact on these companies can only be ascertained on disclosure of the spectrum fees. FMTNews MCMC 5G

One of the biggest challenges in 5G deployment is investment cost, with infrastructure — including spectrum and small cell towers — accounting for a big chunk of the cost.

“5G capex risk appears to have been deferred for now, although the impact on share prices is still unclear pending further disclosures, given that the tenure, mode of assignment and use case for the 700MHz were not specified,” it said in a research note today. Earlier this year, the MCMC issued a report mentioning that the 700MHz and 3.5GHz bands would not be allocated to individual licensees.

Moving forward, it said one of the biggest challenges in 5G deployment is investment cost, with infrastructure — including spectrum and small cell towers — accounting for a big chunk of the cost.

 

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