Celcom studying possible quantum of increase in capex for 5G

PETALING JAYA: Celcom Axiata Bhd is still studying the possible quantum of increase in capital expenditure (capex) that it needs to fork out with the introduction of 5G, says chief executive officer (CEO) Idham Nawawi.

While noting that the adoption of new technology would require an increase in spending, he said the telecommunications company was still looking into it because the capex would depend on various factors such as the spectrum.

“If you look at the trend, whenever a new technology comes up, there will be an increase in capex and it will stabilise two to three years after that. We saw this scenario happening with the migration from 2G to 3G and subsequently 4G,” he told reporters today, after signing a memorandum of understanding (MoU) with Alliance Bank Malaysia Bhd to offer affordable all-in-one connectivity and hassle-free financing to small-and-medium sized enterprises.

He said the telco company has a capex guidance of between RM700 mil and RM800 mil per annum for the “business as usual” scenario, although it would be readjusted to take into account for 5G.

When asked whether Celcom would partner with another telco to bid for the new 5G spectrum, he said: “Time will tell. We are looking at all of our options.”

Currently, Celcom is running demonstration projects for 5G by collaborating with the Langkawi Royal Malaysian Police (PDRM) and Langkawi Municipal Council (MPLBP) to deploy the latest 5G Safety & Security Smart City use-case.

The telecommunications company said 5G technology would offer a breakthrough in security and monitoring effectiveness with multiple 360-degree ultra-high definition (UHD) 4K panoramic live video surveillance cameras installed at the famous and picturesque Pantai Cenang in Langkawi.

Furthermore, Celcom’s 5G Digital Boundary Control is being adopted at Langkawi port which would offer an enhanced security and safety monitoring system for the Langkawi port authority, Dermaga Tanjung Lembung, to carry out daily operations seamlessly.

“These are not merely demonstration projects but are real cases that can actually continue as the new way for these sectors,” Idham added. – Jan 15, 2020, Bernama

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