s focus on growth in postpaid and fixed subscribers as well as B2B revenue could help to mitigate the risk of further declines in average revenue per user (Arpu). Among other targets in Digi s three-year growth plan, Digi is targeting to achieve a 20% growth in postpaid and fixed (FTTH) subscribers and a 33% growth in
B2B revenue, both from 2020 base, said Kenanga Research in a note.
It added that it foresees continued downward pressure on prepaid subs due to migrant workers being unlikely to return to Malaysia in 2021.
Kenanga, which has a market perform recommendation on Digi, raised its FY21/22 core net profit forecasts by 22%/20% to RM1.16bil/RM1.19bil respectively on lower Opex assumptions and 1% adjustment to FY22 revenue on stronger postpaid subs growth.
Axiata building
TALKS between Norway’s Telenor ASA and Malaysia’s Axiata Group (pic) Bhd for a merger of their mobile telecom units have resumed, sources say.
Or as one industry player in the know puts it, “the talks never really ended” since the merger plan was aborted two years ago.
The renewed interest in a merger deal between Digi.com Bhd and Celcom Axiata Bhd comes after the announcement that a government special purpose unit will be building out and owning the country’s 5G infrastructure that will be leased out to telecom operators to use and deliver their services.
Digital econ
PETALING JAYA: The government’s decision to fast-track 5G services in Malaysia by year-end, underscores the urgent shift towards digital technologies that has been accelerated by the global Covid-19 pandemic.
Analysts said the move would help reap numerous benefits for the economy, especially for the local telecommunications sector.
“The 5G rollout, which will be deployed by a special purpose vehicle (SPV) that is wholly-owned by the government, will reduce the investment burden on telecommunications companies or telcos, ” said an analyst.
“This means that the local telcos can breathe easy, yet still stay committed to the Jendela digital infrastructure plan, which aims to increase Malaysia’s 4G coverage from 91.6% to 96.9% by 2022.”
New digital industry code to limit spread of misinformation
Tech companies including Twitter, Google, Facebook and Microsoft adopt new voluntary code to help prevent spread of disinformation and misinformation
A new industry code has been launched aimed at reducing misinformation on digital platforms. It comes in the wake of the Digital Platforms inquiry, conducted by the Australian Communications and Consumer Commission (ACCC), into the dominance of the platforms and the News Media Bargaining Code currently in parliament.
“This new code of practice has seen a diverse set of digital companies collaborate with each other, government, academia and civil society to propose solutions to the incredibly complex challenges of misinformation and disinformation online,” said DIGI MD, Sunita Bose.
An Australian lobby group for Facebook and Google has said its members would move to label and remove false content. Lawmakers have said they would not change a proposal to make the companies pay news outlets.