CelcomDigi and Maxis Spectrum Awards Could Improve Network Efficiency

Dow Jones10-16 12:05

0405 GMT - Network capacity and efficiency are expected to improve as CelcomDigi and Maxis secure additional spectrum adjacent to their existing holdings, Hong Leong IB analyst Toh Woo Kim says in a note. The awards, worth 381.8 million ringgit for CelcomDigi and 203 million ringgit for Maxis, give both operators direct ownership of spectrum previously accessed through partners, he notes. The additional capacity should support rising data demand without requiring as much spending on new network sites, he says. The financial impact is expected to be broadly neutral, as spectrum costs should be offset by lower network spending, he adds. Hong Leong maintains an overweight rating on the Malaysian telco sector, pegging Telekom Malaysia and CelcomDigi as its top picks.

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