PETALING JAYA: Telecommunications operators are still evaluating the various 5G options and have yet to come to a conclusion on ownership structures.

In the near term, the government would be looking into the imposition of additional fees for consumers to access the 5G network.

In the case of Maxis Berhad, it has imposed RM11 per month, although rebates are provided, according to CGS-CIMB Research in a report. The operators are charging for 5G network access as they need to pay Digital Nasional Bhd (DNB) for the access. However, CGS-CIMB Research said once the ownership structures for DNB are concluded, and the 5G network access costs are internalised, the 5G “premium” for consumers would be removed.

With 5G network coverage at 70.2% as at end-September 2023 and an adoption rate of 7.4%, the actual impact of surcharges and rebates on operators would be insignificant, said the research house. It said Maxis’ fibre broadband pricing announcement on Oct 27 brought to a close the uncertainties around the fibre broadband market.

With price points similar to Telekom Malaysia Berhad's, it said fears of an increase in broadband pricing competition had also eased.

Against the backdrop, CGS-CIMB Research maintained its forecasts for Maxis’ broadband revenues, with a 14% financial year (FY) 2022-2025 compounded annual growth rate.

It reiterated its “hold’’ call on Maxis with a reduced target price of RM4.26 a share, based on 10.8 times FY24 enterprise value/earnings before interest tax depreciation and amortisation.