KUALA LUMPUR – Local telecommunications companies will fret the retirement of all 3G networks by end of the year, in line with the National Digital Infrastructure Plan (Jendela).
In a note today, Kenanga Research said however, the expected payoff is a more efficient management of remaining infrastructures to ensure optimal network quality.
“3G spectrums could possibly be used later to boost 4G capability to accelerate Jendela’s connectivity targets.
“Moving ahead, it is hoped that we will have a strong enough backbone infrastructure to introduce the national 5G network post-2022.”
On cell phone companies, Kenanga Research anticipates to see fewer further downside pressure on the average revenue per unit (mainly prepaid) in the coming quarters, as consumers become desensitised by “unlimited data” plans.
It also expects some uplift in total subscribers as affordability concerns progressively wane away.
“As the industry works towards a leaner operating model with more optimised use of resources, investments and efforts in the near-term might not assure investors on potential rewards until further down the road.
“Henceforth, we believe investment interest might be muted for the time being, as investors focus on more robust plays, at least for the coming quarter,” ” said the research house, adding that it maintains a ‘neutral’ on the telecommunications sector. – Bernama, January 6, 2021
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