Reuters had reported that Malaysia might introduce a second 5G network in 2024.
A second 5G network will see improved profitability for telcos, and it is beneficial for consumers as competition will result in better services, broader bandwidth, improved speed and affordability, accorsing to the research house. “Recall, the Single Wholesale Network or SWN model for the rollout of 5G via Digital National Bhd that had come under constant criticisms due to its monopolistic nature, which could lead to excessive pricing, and to a certain extent, lack of transparency,” it added.
“They also have to pay a fixed upfront fees regardless of how far the 5G population coverage progresses – a concern to the market as dividend payments might be significantly reduced given the additional costs,” said Kenanga Research. “Wider coverage, better affordability and faster speed are set to boost subscriptions and average revenue per user,” the research house added.The research house liked CelcomDigi as the group is the new market leader in the mobile market with a combined market share of 43%.It also has competitive pricing and attractive bundling to attract migrant and domestic customers as well as the Bottom 40 group.