Fitch: Telekom Malaysia affected by licensing

Fitch Ratings said that in the recent WiMAX (Worldwide Interoperability for Microwave Access) licensing by the Malaysian Communications and Multimedia Commission, spectrum was awarded to four small applicants, while the three largest telecom operators - Telekom Malaysia Bhd. (A- with stable outlook), Maxis Communications Bhd. and DiGi.com Bhd. - emerged unsuccessful in the tender evaluation, which reportedly comprised a total of 17 applicants.

Whilst Maxis should remain relatively unaffected, there are implications for Telekom Malaysia's fixed broadband operations and DiGi's longer-term competitive position in mobile, Fitch said.

Although WiMAX, the trade name for a group of wireless standards that encompasses both fixed-wireless and portable/mobile deployments, is still largely an unproven technology, Fitch said it believes that it could prove moderately disruptive to telecom markets over the longer term. By eliminating the need for copper or fiber last-mile installation, WiMAX offers a lower-cost replacement option for traditional broadband solutions such as digital subscriber lines and cables, the agency said. However, mobile WiMAX is still at an embryonic stage, Fitch said and its potential viability versus 3G telecom services will depend on the availability of network/user equipment and comparative costs of deployment.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.