Opcom Holdings Berhad

1) Opcom Holdings Bhd is a Malaysian based investment holding company engaged in the manufacturing of fibre optic cables and cable-related products

2) The business activity of the group is functioned through the following segments:-

a) Manufacturing

b) Trading and Engineering Services

c) Other Operations

3) All the operations are functioned through Malaysia and it derives the majority of revenue from Manufacturing segment which includes fibre optic cables, systems, accessories and thixotropic gel

4) The company also provides management related services

5) In addition, the company is also involved in trading of cable filing, flooding compounds and industrial products, and provision of engineering services

6) Opcom is the major listed optic fiber manufacturer in Malaysia

7) In 2009, Opcom received a huge Rm 359 mio job award fr Telekom Malaysia (TM) for the purchase of fiber optics

8) In 2011, Opcom announced a Special Dividend of 22.5 sen

9) In 2012, a Special Dividend of 11 sen plus a Normal Dividend of 1.5 sen, making it 12.5 sen for that year of 2012

10) So, in just 2 years, total 34 sen Dividend was paid

11) While telecommunication companies (telcos) say they have consistently expanded their infrastructure for an improved 4G experience, Malaysians have continued to complain about poor connectivity and speed, even in major cities

12) This, in turn, has not effectively narrowed the digital divide in Malaysia, particularly between the urban and rural areas

13) As the world ushers in the new era of Internet through the adoption of 5G, the government realises the pressing need to step up the efforts to improve domestic Internet accessibility

14) Hence, a new model - which could potentially be the first in the world - has been adopted to roll out 5G

15) The government, via a wholly-owned special purpose vehicle (SPV), will build, own and implement the 5G infrastructure and spectrum

16) Telcos, on the other hand, would have access to the infrastructure and spectrum through a wholesale pricing mechanism

17) This would essentially make the 5G spectrum a "shared commodity", instead of individually owned as in the previous generations of mobile networks

18) The 5G SPV, or Digital Nasional Bhd to be exact, will invest about Rm 15 B over a period of 10 yrs to roll out 5G, beginning from end 2021

19) CEO Ralph Marshall said the shared 5G network presents a unique opportunity that benefits the telco ecosystem and the end-users

20) The shared infrastructure model will enable Malaysia's leading operators to catch up with global leaders across multiple customer experience metrics

21) Benefits to Telcos are:-

a) Shared infrastructure reduces capital expenditure and operating expenditure for telcos - who will only incur about 1/3 of the cost

b) Generate new revenue streams by offering 5G services

c) Enables operators to focus on 4G coverage, migrate 3G subscribers to 4G and improve customer experience

22) Benefits to Users are:-

a) Early access to 5G

b) Empowering and integrating the rakyat into the digital economy

c) Translating into lower 5G costs

d) Bridging the urban-rural digital divide

23) Marshall argued that there is an urgency to accelerate the 5G deployment in order to increase Malaysia's competitiveness

24) Countries across the world have been working towards creating a 5G-enabled environment, which is a key factor in growing local businesses and attracting foreign investors

25) The adoption of 5G will also mark the beginning of a more advanced and extensive digital economy in Malaysia

26) The government's obligation is to make sure they create sufficient opportunities for wealth creation and income generation such that people can pay for these 5G services

27) A good nationwide 5G accessibility at affordable prices would create employment opportunities, especially high skilled jobs that would drive businesses and revenue generation

28) The estimated Rm 15 B price tag for the 5G rollout is inclusive of the operations and maintenance costs as well as capital expenditure or cost of equipment over a 10 year period

29) On average, the O&M costs to roughly be about Rm 600 mio to Rm 800 mio a year depending on how intensive the rollout would be in a particular year

30) It will be privately funded through a Private-Public Partnership arrangement

31) Digital Nasional will likely front load the investments, possibly investing 25% of the Rm 15 B in the first 2 years

32) Following that, about 15% to 20% will be spent in the next few years and the percentage will gradually drop in the following years

33) The focus is to achieve a fast rollout and making sure it don't compromise on 5G connectivity nationwide

34) Digital Nasional will be run by professionals, efficiently and transparently

35) The MyDigital blueprint, which was unveiled on 19 February 2021, not only focuses on rolling out 5G internet connectivity but also aims to enhance the usage of cloud services across the government, ensure full adoption of digital signature by the public sector and undertake the full implementation of the National Digital identity

36) The fast 5G rollout will greatly benefit Opcom Holdings Bhd as it is the major listed optic fiber manufacturer in Malaysia