Telekom Malaysia Bhd (TM) is making significant strides in its commitment to 5G initiatives, which are expected to have a positive impact on service quality and customer satisfaction. Analysts believe that TM’s convergence strategy and the role of Unifi Mobile will play a crucial part in driving its success.
The convergence strategy seeks to improve Unifi’s average revenue per user, positioning TM as a strong contender in the industry. The introduction of 5G products is seen as a transformational move, setting it apart from TM’s previous 4G services that lacked appeal.
By switching to Maxis for 4G infrastructure, Unifi Mobile has experienced a notable improvement in network quality, resulting in increased customer satisfaction for TM. Currently, Unifi Mobile offers 95% population coverage for 4G services, positioning it as a competitive player in the market.
One of Unifi Mobile’s key advantages is its competitively priced postpaid plans, ranging from RM39 to RM99 per month. In comparison to competitors like CelcomDigi, Maxis, and Digi, whose postpaid plans are priced higher (ranging from RM60 to RM139 per month), this favorable pricing is expected to elicit a positive response and contribute to TM’s convergence strategy.
TM is also actively exploring opportunities to monetize its 5G offerings, particularly for enterprise and public sector customers. Successful implementations, such as PETRONAS’ private 5G network and the deployment of 5G solutions on offshore platforms, demonstrate TM’s ability to leverage 5G and big data trends.
To support its 5G access, TM has entered into a 10-year RM2 billion fiber leasing service contract with Digital Nasional Bhd (DNB). This agreement allows DNB to lease TM’s fiber cable network to connect its 5G mobile sites and nodes, providing TM with recurring leasing fees.
Kenanga Research maintains an “outperform” recommendation for TM’s stock, setting a target price of RM6.76 per share. The research firm expresses confidence in TM’s long-term prospects, citing favorable structural data trends.
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