,The country’s dominant fixed line player with nearly 90% market share, Telekom Malaysia Bhd (TM), may see some erosion in earnings in the longer term if fixed line portability (FNP) picks up, especially among enterprises and businesses.
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PETALING JAYA: Land line subscribers will be allowed to change their service provider between the different telecommunication providers and keep their phone number by the end of 2022 that could see more competition emerge in what was once seen as a dormant business.
The country’s dominant fixed line player with nearly 90% market share, Telekom Malaysia Bhd (TM), may see some erosion in earnings in the longer term if fixed line portability (FNP) picks up, especially among enterprises and businesses.
Experts, however, believe that erosion can be somewhat averted by TM becoming more aggressive in its value-added services offerings to protect its turf.
They said TIME Dotcom Bhd (TDC), a fixed broadband player, may also stand to see some of its business being shaved off in that segment but it can also gain in an FNP environment depending on its strategies.
Those companies that can stand to benefit would be mobile players that already have fibre optics network, including Celcom Axiata Bhd and Maxis Bhd.“Celcom Axiata supports the implementation of FNP. It would benefit consumers as it will remove significant barriers for customers to remain connected and drive more competition in the market,’’ said its CEO Idham Nawawi.
All the players, except TM, were in favour of the FNP implementation based on public consultation findings by the industry regulator revealed recently.
In the paper, TM noted that it would be put at an “unfair disadvantage’’ if FNP was implemented.
FNP is similar to mobile number portability (MNP), which was implemented in 2008, where a mobile user can port out to other mobile networks without giving up his original mobile number.
With FNP, fixed line users, both residential and commercial, will have a choice to switch networks while retaining their existing numbers.
Currently, if a fixed line user changes network, he gets a new phone number, thereby creating hesitancy in switching, especially among corporations and SMEs.
Industry observers praised the industry regulator Malaysian Communications and Multimedia Commission (MCMC) for wanting FNP to proceed after the public inquiry was completed.