KUALA LUMPUR, April 16 — Maxis Berhad is expected to face renewed pressure on its postpaid average revenue per user (ARPU).
As more prepaid users migrate to lower-cost postpaid plans, according to Kenanga Investment Bank. Despite steady subscriber growth, analysts warned that this trend could dilute earnings.
Especially as competition in Malaysia’s mobile sector remains intense. Kenanga noted that while the broader mobile market remains stable, converged bundles combining mobile, fibre and devices are helping major players retain customers.
However, Maxis’ strategy to defend fibre ARPU may limit subscriber growth as consumers increasingly opt for more affordable alternatives.
Meanwhile, CelcomDigi Berhad is expected to see more stable postpaid ARPU after previous declines, supported by improved subscriber quality following post-merger adjustments.
In the prepaid segment, competition is likely to keep subscriber numbers volatile, although ARPU for both Maxis and CelcomDigi is expected to remain resilient.
Due to upselling strategies and a cleaner subscriber base. However, uncertainty surrounding Digital Nasional Berhad (DNB) continues to weigh on the sector.
DNB’s reported RM1.2 billion loss in 2024 raises concerns over future earnings, capital expenditure and dividend capacity as telcos move towards taking control of the 5G network.
Kenanga highlighted that stronger opportunities lie in fixed broadband, enterprise and wholesale connectivity, driven by rising demand from data centres and cloud investments.
Companies like Telekom Malaysia and TIME dotCom Berhad are expected to benefit more from these structural trends.
Overall, the sector outlook remains neutral, with mobile operators facing ongoing uncertainties while fixed-line players appear more resilient.
