KUCHING: The Fixed Broadband Unity package which recently announced by the Ministry of Communications and Digital, will not likely have a material impact on Telekom Malaysia Bhd’s (TM) revenue, analysts observed.

Of note, the package aims to provide affordable internet for B40, veterans, people with disabilities and senior citizens.

The new package will provide high-speed broadband up to 30Mbps with unlimited data at RM69 per month. The plan will start to be offered from March 2023 and comes with a 24-month contract.

According to a report by the research team at AmInvestment Bank Bhd (AmInvestment), at RM69 per month, the package is 22 per cent cheaper than the current RM89 per month plan offered by TM.

“Given that the plan is targeting a very niche group, we do not expect the impact will be material to TM’s revenue. Assuming 30 per cent of total unifi fixed broadband subscribers (2.9mil as at September 2022) are opting for the current RM89 per month at 30Mbps plan, the worstcase scenario impact is estimated at RM17 million or less than one per cent of the group’s FY22F revenue, in our view,” it opined.

“All in, we made no changes to our earnings forecasts given that the impact will likely be negligible,” the research team added.

AmInvestment maintained its ‘buy’ recommendation on the stock.