02-24-2021, 11:36 AM
Fitch unit: Putrajaya SPV for spectrum sale could drive 5G costs up, deter adoption and development
KUALA LUMPUR, Feb 24 — The government’s move to use a special purpose vehicle (SPV) to auction off the 5G spectrum will raise adoption costs for companies and slow down development of the technology in Malaysia, said Fitch Solutions Country Risk & Industry Research.
The Fitch Group unit said the SPV was a departure from the usual mode of an open auction that has typically been used in other Asian countries for the rollout of the next-generation broadband cellular network.
Noting that the previous Pakatan Harapan administration had undertaken to use the open auction model, the Fitch Group unit said the current government’s decision could drive wholesale cost higher, hurt operator margins, and hurt the development of 5G services locally.
“Prior to the new government plans, operators had independently reached agreements with each other, as well as with telecoms vendors to jointly deploy networks and share infrastructure.
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