Tech Mahindra-Axiata Group Berhad partnership could help accelerate 5G in Southeast Asia. Still, the short-term outlook for business ‘bleak’, Fitch Solutions said in a rural risk, and business analysis report Is.
Last week, Indian IT and consulting giant Tech Mahindra and Malaysian telco Axiata Group Berhad signed an agreement to develop and commercialize enterprise 5G options in Malaysia, Sri Lanka, Bangladesh, Nepal and Cambodia.
“We believe this is a promising partnership as it combines Mahindra’s 5G Tech enterprise solutions capabilities with Axiata’s expertise in mobile connectivity, network infrastructure and product services,” Fitch Solutions said.
While 5G has many benefits, the report states that it is still in its infancy for many international locations in Southeast Asia. 5G is the fifth mobile network technology 100 times faster than 4G.
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Fitch Solutions is aware of financial difficulties and hurdles in the two markets where Axiata and Tech Mahindra intend to cooperate.
In Bangladesh, for example, Fitch Solutions is not counting on critical 5G adoption in the next 18 to 24 months driven by high-end mobile phones and next-generation carriers.
Sri Lanka instead struggles with economic stagnation, gas shortages and prolonged power outages.
“This has led to a contraction in the economy, and we expect the broader technology market to face significant pressures that will effectively cripple the sector. These factors will impact the return on investment of 5G deployments and may prevent further funding.” be.”
But there is a growing demand for 5G that may help improve operational effectiveness for companies, similar to supporting higher crop yield forecasting or local weather management in agriculture.
Last week, Axiata Group Berhad, Telenor Asia and Malaysian telecom provider Digi completed the merger of telecom operations with Celcom Digi.
Fitch Solutions said the merger would help Axita take on rival Telkom Malaysia in the enterprise connectivity market.
Cellcom Digi will invest 250 million Malaysian ringgit ($56.8 million) over five years to build an innovation heart in Kuala Lumpur to help the country’s adoption of the web of things, artificial intelligence, cloud computing and 5G.