Rollout of 5G to be closely watched for earnings potential

Singapore

WITH 5G networks finally rolling out in the new year, how to make money off the new wireless technology will top the agenda for mobile network operators (MNOs) in 2021.

But the incoming CEOs at mainboard-listed Singtel and StarHub, and counterparts at Keppel Corp-owned M1 and Australia's TPG Telecom, have their work cut out for them.

Sai Tunuguntla, a partner at McKinsey, said global telcos "need to prioritise their focus and resources", as mobile service revenues decline while capex stays the same or rises.

Even as telcos ride out Covid-19 headwinds, it's unlikely that 5G will rescue depressed revenues - especially with the industry's initial focus on a crowded consumer market.

Testing the 5G…