PETALING JAYA: The 5G spectrum bands which consist of 700 megahertz (MHz), 3,500 MHz and 26 gigahertz (GHz) will be split equally between the two 5G networks, Entities A and B, according to the industry regulator.
RHB Research stated in a report that each entity will have 40MHz of the 700-MHz band, 100MHz of the 3.5GHz C-band and 800MHz of the 26GHz band each.
The research house noted the regulator has not yet decided on a timetable for the reallocation of the frequency bands or restoring spectrum neutrality, which allows mobile network operators (MNOs) to use their 4G spectrum for 5G.
Discussions are also ongoing between Digital Nasional Bhd (DNB) and the MNOs on modifications to the reference access offer which governs the 5G wholesale rates.
According to RHB Research, the industry regulator also stated the second 5G network provider will need to adhere to similar rollout requirements as DNB in order to meet the 80% population coverage target within a stipulated time.
The research house noted this would suggest the industry’s capital expenditure could remain elevated, with DNB benefitting from a natural head start.
On another note, the Jendela phase two project is expected to start in the third or fourth quarter of 2023.
RHB Research has maintained a “neutral” call on the telco sector with its top pick being Telekom Malaysia Bhd
. The research house has a “buy” call on the group with a target price of RM6.20 per share.
