Maxis is expected to ink the 5G access agreement to pave the way for commercial 5G rollout soon.
RHB Research stated in a note that the telco’s group chief executive officer Goh Seon Eng has confirmed that the agreement is a foregone conclusion.
“Significantly, we gather discussions are focused on aligning the wholesale agreement to reflect the policy shift (towards a dual 5G network). “This portends lower access cost/outlay under modified terms, with the likelihood of a shorter tenure (vs a 10-year agreement) contracted in,” said its analyst Jeffrey Tan.
It said discussions also factored in certain conduct by mobile network operators (MNOs) with explicit terms and clauses forming part of the investment in Digital Nasional Bhd (DNB) which would see MNOs divesting their equity stakes in DNB for spectrum in the second 5G network.
It added that while management’s current capex guidance implies a manageable capex/sales (ex-5G) of 11 percent, the narrative on growth capex suggests potentially higher capex intensity in the medium term, which could come at the expense of dividend payouts.
“Clarity on the new 5G wholesale model remains a key share price catalyst, in our view,” RHB Research said.
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