Merger bodes well for Digi’s market share

PETALING JAYA: Following its proposed merger with Celcom Axiata Bhd which will be completed soon, Digi.Com Bhd will be well entrenched in the public sector and migrant worker space, commanding the dominant market share in the mobile market at 43%.

Kenanga Research stated it likes Digi based on its competitive pricing and attractive bundling to attract migrant and domestic customers; the rollout of 5G that will likely further boost its subscribers given the absence of Maxis Bhd in this early stage of the rollout and the the superior margins of both Digi and Celcom at five to six percentage points above the industry average of 41% and 42%.