OCK set to gain from robust Laos telecoms market

Kenanga Research expressed optimism the move will allow OCK to expand its tower portfolio in various markets.

PETALING JAYA: OCK Group Bhd’s foray into Laos is deemed as a good venture, given the robust growth prospects.

Earlier this week, OCK entered into a 15-year build-and-lease tower agreement with Best Telecom Co Ltd, a telecommunication player which was awarded the 5G spectrum in Laos.

Kenanga Research, in a recent report, expressed optimism the move will allow OCK to expand its tower portfolio in various markets, including Malaysia where it has between 150 and 200 towers and Vietnam with about 500 towers.

“We believe there is minimal counter-party risk as we understand that Laos’ Ministry of Finance is one of the key shareholders in Best Telecom,” it noted.

To kickstart the deployment, Kenanga Research said OCK was awarded several site clusters located within the metropolitan area of Vientiane and a few major cities.

“The group believes it is able to replicate its success in Vietnam in Laos, given similarities between both markets,” the research house noted.

Given the agreement is at the preliminary stage, Kenanga Research said the actual number of tower sites to be deployed have not been finalised.

This is given the need to conduct site surveys and feasibility studies prior to the actual roll-out.