Malaysian mobile operator Packet One (P1) is reportedly mulling over an alliance with larger rival Telenor’s Digi Telecoms, as it would allow it to expand its spectrum base and offer 4G services as of 2014.
According to local newspaper Business Times,…
Malaysian mobile operator Packet One (P1) is reportedly mulling over an alliance with larger rival Telenor’s Digi Telecoms, as it would allow it to expand its spectrum base and offer 4G services as of 2014.
According to local newspaper Business Times, two options are being considered: an acquisition by Digi of P1, or a spectrum sharing agreement between the carriers.
In the Malaysian mobile market, home to eight operators, several companies are already sharing their networks. Both U-Mobile and Redtone use Maxis’s frequencies in the 2600 MHz band, while Altel uses Celcom’s.
Earlier this year, media reports had already suggested Green Packet was open to selling its majority stake in P1 for MR1bn (US$306m). P1, number five is Malaysia, was the first company in the country to launch a commercial WiMax service in 2008 and Digi is said to be eyeing its 2300 MHz spectrum.
Separately, Malaysian newspaper The Star suggested that Telekom Malaysia (TM) is also interested in P1’s frequencies and could acquire a 30% stake in the company. The report does not mention its sources but cites RHB Research as saying a deal would enable incumbent TM to expand from its fixed broadband services and offer a wireless platform to diversify its revenue sources.
TM recently received approval for new shariah-compliant commercial paper and medium term note programmes, which will allow it to issue up to MR3bn (US$915m) in Islamic bonds. Proceeds will be used for TM’s capital expenditure and general business operations in compliance with sharia law.
Telekom Malaysia and Digi declined to comment on the reports while Packet One was not immediately available for comment.
