Not a good start for Telekom Malaysia Bhd (TM) after it was the biggest loser in Monday's opening trade.
This follows the latest announcement by the Malaysian Communications and Multimedia Commission (SKMM) to cut the fees received from other telecommunication companies for its broadband infrastructure.
Last Thursday, the stipulation on the Mandatory Standard on Access Prices (MSAP) was issued by the MCMC which saw a cut in access prices to fiber infrastructure across the country by 51%-65%.
However, the cost for installation is increased and the termination unit port charge remains the same. The new access price will take effect on March 1 and will be valid until December 31, 2025.
As a result, TM shares plunged 28 sen or 5.42% to a low of RM4.89, before reducing its losses to RM4.96 in the afternoon trading session (3.00pm), with a market value of RM18.92 billion.
Analysts at RHB Investment Bank see the reduction as potentially affecting Telekom's fiber broadband segment, which accounts for about 36% of the company's revenue and renews retail price competition across the industry.
