PETALING JAYA: The telecommunications sector could see more consolidation moving forward as players strive to reduce costs amid declining yields and growing pressure to invest in new spectrum.
In a research note, AmInvestment Bank said the consolidation theme remained in play as the reimposition of the movement control order (MCO) is expected to have an impact on various business sectors.
The research house highlighted that declining data yields, new 5G spectrum fees and capital expenditure pressures are likely to drive players to seek consolidation to cut costs, secure economies of scale and reduce rivalry.
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