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The report states Southeast Asia’s 5G outlook stays ‘bleak’ in the short term despite firm tech associations

The report states Southeast Asias 5G outlook stays bleak in the short term despite firm tech associations

December 13, 2022: -The Tech Mahindra-Axiata Group Berhad partnership may support the acceleration of 5G in Southeast Asia. Still, the short-term outlook for the industry is “bleak,” Fitch Solutions stated in a country by risking and industry research report.

In the previous week, Indian IT and consulting firm Tech Mahindra and Malaysian telco conglomerate Axiata Group Berhad inked a deal to develop and commercialize 5G enterprise outcomes in Malaysia, Sri Lanka, Nepal and Cambodia.

“We believe this is a promising partnership as it combines Tech Mahindra’s 5G enterprise solutions capabilities with Axiata’s expertise in mobile connectivity, the infrastructure of the network and product service,” added Fitch Solutions.

In Bangladesh, for instance, Fitch Solutions does not anticipate significant 5G adoption over the coming 18-24 months due to expensive mobile phones and complete-generation services.

On the other hand, Sri Lanka is battling a slump, fuel shortages and extended power outages.

“This is leading to a contraction of the economy, and we anticipate the wider technology market to face huge pressures that will effectively cripple the sector. These factors will be on the investment returns of 5G deployment and discourage further meaningful funding,” the report said.

But there is an increase in demand for 5G services, which could guide the growth operational efficiency for the firms, like supporting better crop yield to predict or climate control in agriculture.

In the previous week, Axiata Group Berhad, Telenor Asia and Malaysian telco provide Digi completed the merger of telco operations to create Celcom Digi.

Fitch Solutions said the merger would likely support Axiata’s better take on rival Telekom Malaysia in the enterprise connectivity market.

Celcom Digi invested up to 250 million Malaysian ringgit over five years to build an innovation centre in Kuala Lumpur to support the adoption of the internet of the areas, artificial intelligence, cloud computes and 5G in the area.

The report states Southeast Asia’s 5G outlook stays ‘bleak’ in the short term despite firm tech associations