TM strikes deal with Packet One (Update 2)

Published: Thursday March 27, 2014 MYT 1:34:00 PM
Updated: Thursday March 27, 2014 MYT 5:44:26 PM

by leong hung yee

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KUALA LUMPUR: Telekom Malaysia Bhd (TM) has entered into an agreement with Green Packet Bhd (GP) and SK Telecom Co Ltd to collaborate on developing a next-generation LTE infrastructure to offer customers a full-suite of converged communications services.

As part of the deal, TM is investing RM350mil into Packet One Networks (Malaysia) Sdn Bhd (P1) via the subscription of new shares that will see TM emerging as a 57% shareholder in P1. In addition, TM will invest up to RM210mil into Green Packet via newly issued redeemable exchangeable bonds, which may be exchanged into Green Packet’s stake in P1 in the future.


Green Packet and SK Telecom would remain key strategic shareholders of P1 upon the completion.


TM expects the investment agreement to be completed within the next few months.


The agreement would set out a partnership framework for the three parties to share in the ownership and collaborate in the future growth of P1, Malaysia’s leading WiMAX provider.


“The parties will seek to leverage on LTE technology to deliver high-quality and reliable data services across all segments of the community.


“P1 will capitalise on its spectrum assets, existing wireless platform and network footprint of close to 2,000 sites, and experienced management and organisation to expedite its entry into the LTE space,” it said.



TM group CEO Tan Sri Zamzamzairani Mohd Isa said the agreement was in line with TM’s vision of being an “Information Exchange” and Malaysia’s Broadband Champion.


“We are further expanding our capabilities into the adjacent wireless broadband space, as a natural evolution of our suite of internet and data services, in order to better serve our customers’ needs.


“The partnership provides an LTE-ready platform for us to more efficiently roll out wireless broadband products and accelerate time-to-market for our customers,” he said.


The framework would see each party contribute its unique strengths into P1 in order to offer customers high-quality wireless data services with an overall better customer experience.

TM, as the leading fixed-line and broadband provider in Malaysia, would anchor the growth and development of P1’s business. SK Telecom would contribute valuable technical and strategic know-how.