PETALING JAYA: Analysts remain “neutral” on the telecommunication sector amid uncertainty over the impact of the takeover of Digital Nasional Berhad (DNB) by mobile network operators (MNO).
Kenanga Research said in contrast, fixed-line players are more compelling, as they are largely insulated from this overhang that affects earnings, capital expenditure (capex), and dividend outlooks for the MNOs.
A senior telco analyst concurs, saying that the market is increasingly viewing fixed-line operators as the “higher-quality” part of telcos.
“Mobile operators are more mature in a sense, and margin pressures within that segment feels higher,” he told StarBiz.
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