GE15 NEWS   Kudat Independent MP backs unity government | Hamas leader congratulates Anwar on appointment as PM | GRS will abide by Agong 's decision on formation of unity govt - Hajiji | Zahid, Wan Azizah, Loke win while Saifuddin, Rezal Merican lose | 
BUSINESS

Kenanga says it believes four of six telcos will soon sign SWN deal

04/10/2022 12:54 PM

KUALA LUMPUR, Oct 4 (Bernama) -- Kenanga Research said it believes telcos and investors alike will soon settle to accept the Single Wholesale Network (SWN) model.

It said that after much delay, “four of the six telco operators are expected to sign on the dotted line” with regard to the SWN in the 5G rollout.

“We reiterate our view that the commitment by the mobile network operators to Digital Nasional Bhd's (DNB) equity participation would likely boost DNB’s credit rating in its bond-raising exercise to roll out 5G.

“This is also a win for the national interest as it accelerates Malaysia’s IR 4.0 progress, boosted by efficient mobile speeds at affordable tariffs,” the research house said in a note.

Kenanga said the firm commitment from all industry players and stakeholders has seen 5G coverage reaching 27 per cent of the population with the targeted 37 per cent expected to reach by end of 2022.

“The coverage in urban and populated areas first makes perfect sense given the need for a more stable consistent coverage in densely populated and business areas.

“From other countries’ experience we expect pricing for 5G services to be slightly higher which should minimise the impact of outlay costs,” it said.

For the 5G side, Kenanga has remained positive on the sector’s outlook premised on resilient demand from both consumers and businesses, locally and regionally.

“Demand for local mobile and broadband will be supported with wider coverage at the end of Phase 1 of the Jendela Initiative.

“Players like Axiata (via CELCOM) and Digi look set to benefit from the wider coverage and reaching to the remote corners of Malaysia, and the return of migrant workers.

“Telco operators which are able to roll out 5G services the soonest will have a first mover advantage given the limited availability of 5G at the moment,” it added.

Hence, Kenanga has reiterated its “overweight” call for the sector with Digi (target price RM4.25), Telekom Malaysia (target price RM7.95), and OCK (target price RM0.95) as top picks.

-- BERNAMA


Bernama provides the latest authentic and comprehensive news and information to media agencies and the public. The news and information is disseminated via the website www.bernama.com; BERNAMA TV broadcasts on the Astro 502, unifi TV 631 and MYTV 121 IFLIX channels as well as BERNAMA Radio on the FM93.9 frequency in the Klang Valley, FM107.5 in Johor, FM107.9 in Kota Kinabalu and FM100.9 in Kuching.

Follow us on social media :
Facebook : @bernamaofficial, @bernamatv, @bernamaradio
Twitter : @bernama.com, @BernamaTV, @bernamaradio
Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial
TikTok : @bernamaofficial

© 2022 BERNAMA   • Disclaimer   • Privacy Policy   • Security Policy