Phasing out 3G networks by end of 2021

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KUALA LUMPUR: In conjunction with the National Digital Infrastructure Plan (Jendela) initiative, telcos will fret the retirement of all 3G networks by end-2021, said Kenanga Research.

However, the payoff is expected by way of 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 further ahead, it is hoped that we will have a strong enough backbone infrastructure to introduce the national 5G network post-2022,” the research house said in a note today.

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 the availability of ‘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.

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“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 Kenanga Research, adding that it maintains a ‘neutral’ on the telecommunications sector. – Bernama

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