September 27, 2015 Malaysia Media NEUTRAL (Unchanged) The future is in High Definition Analysts Yin Shao Yang . TV digitalisation has kicked off and Malaysia must be ASO (603) 2297 8916 Malaysia ready by 2018 at latest. Viewers can expect HD channels,
[email protected] | more TV channels, interactive services and mobile TV. Jade Tam . Beneficiaries are telcos and related industries, IT companies (603) 2297 8687 specialising in TV, payment and courier service providers,
[email protected] game developers and new FTA TV channel operators. MPR may be negatively impacted but we believe this is already reflected in its share price. Maintain BUY on MPR. RESEARCH Astro may be negatively impacted too but not as severely. What’s New This is our maiden report / special feature on TV digitalisation. Puncak Semangat (PS; Not Listed) was awarded the concession, in SECTOR 2014, to build, operate and manage the necessary infrastructure for 15 years. Thereafter, PS transferred the concession to MYTV. MYTV has budgeted MYR4.5b to be expended over 15 years (MYR2.5b for opex and MYR2b for capex). The digital terrestrial TV broadcasting (DTTB) rollout commenced in Apr 2015 and Malaysia must be ASO (analogue switch off) ready by 2018 at latest. Viewers can expect HD channels, more TV channels, interactive services (e.g. news, VOD, games, T- commerce) and mobile TV. What’s Our View From the DTTB rollout, we foresee that telcos (Maxis, Digi, Axiata and TM), telco infrastructure fabricators (OCK, Instacom, Weida), IT companies specialising in TV (Digistar), payment service providers (ManagePay, GHL Systems, My E.G.