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PETALING JAYA: Digital Nasional Bhd (DNB) can heave a sigh of relief with five telecoms players inking deals to buy access for its 5G network.

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PETALING JAYA: Digital Nasional Bhd (DNB) can heave a sigh of relief with five telecoms players inking deals to buy access for its 5G network. However, it has yet to convince the nation's largest mobile player, Maxis Bhd, to do so. DNB will have to work harder to get Maxis on board soon, so that a lot of users who are with Maxis are able to experience the promises that 5G holds. Maxis is still accessing the governance requirements for the access agreements (AA). Any terms that are unfavourable will have an impact on consumers, especially when it comes to pricing and quality of services. That aside, the inking of the AA between DNB and the players, namely, Celcom Axiata Bhd, Digi.com Bhd, Telekom Malaysia Bhd (TM), U Mobile Sdn Bhd and YTL Communications Sdn Bhd, is seen as a positive development for the sector by analysts. CGS-CIMB Research said it was a key condition precedent for the completion of Celcom, Digi, TM and YTL's share subscription agreement to acquire equity stakes in DNB. Both Maxis and U Mobile had opted out of stake buys in DNB. This should provide greater clarity on the 5G situation in Malaysia and help dispel investors' fears over potentially worst-case scenarios. Surprisingly, the signing did not lift the share price of most of the telecoms stocks. Perhaps, the 5G wholesale fees had already been factored into the telcos' share prices. TA Research said ultimately, 5G commercialisation will allow mobile network operators (MNOs) to enrich their services offered to both consumers and enterprises. It expects a competitive consumer services landscape, but felt rather than raising mobile tariffs, MNOs could attempt to drive 5G monetisation via the upselling of higher value plans supplemented with attractive 5G data quotas andior device bundles. This could in turn provide upside to their average revenue per user. As for the enterprise space, it said the 5G promise of faster speeds, negligible latency and higher bandwidth is expected to unlock a multitude of new use cases across industries. Financial contributions are only expected to be meaningful over the medium to longer term alongside the growth of the network and maturity of use cases, TA Research added. RHB Research foresees an 8% to 15% financial year 202324 core earnings dilution on the revised wholesale terms with 2% to 8% reductions in the telcos' target price. The net impact on TM is overall positive. CGS-CIMB Research said it remained "overweight" on the sector. A major hurdle for the sector is the Mandatory Standard on Access Pricing review as a raise could potentially affect pricing for high-speed broadband access. This is so since fibre is a major component of 5G backhaul and any rise could trigger price hikes for consumer access plans. That is an issue the industry regulator will have to manage, given the fact that rising inflation is already biting into consumers' pockets. Pending the regulator's final decision on access prices and the upcoming general election, which brings uncertainties to regulatory development, MIDF Research is maintaining a "neutral" view on the sector. [Source: The Ster Eusiness Section (thovember 2 , 2022). inving of 56 sccess egeemanfs a posilve for esctor - Onine at anossond an Nowmber 43,K127J Questions 2. Select one specific industry in Malaysia (other than the telcos industry), critically evaluate the benefits of the Internet marketplace to businesses and customers within the context of this case study. [ Your selection of industry must be based on the "Section" listed in e-MSIC portal at https:/imsic. stats.gov.myibi/carianinteraktif.php It can be any industry listed in the section search under MSIC Structure Search either from the services or non-services economic activities. Name and elaborate that one specific industry available in the "Section" listing. You do not need to expand further into the lower subcategories such as "Division", "Group, "Class", or "Description".] (20 marks)

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