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Latest News
Maxis Opens Door To Sharing Network Infrastructure
News From : DagangHalal.com (6/16/2010)

KUALA LUMPUR, June 15 (Bernama) -- Maxis Bhd is opening its door to other telecommunication operators on the possibility of sharing network infrastructure to reduce cost, chief executive officer Sandip Das said Tuesday.

Speaking after the company's annual general meeting here, he said the local telecommunications industry could benefit from extensive network sharing as it would allow the industry players to explore new ways to provide wider coverage at lower cost.

"Maxis has an open mind to share the network infrastructure with whoever, even with a new player, especially for new territories and areas," Sandip said.

"However, we are not making any announcement on this matter, but we are definitely willing to share the network," he said when asked whether the company had talks with any telecommunication companies to share network infrastructure.

Last week, Celcom Axiata Bhd and DiGi Telecommunications Sdn Bhd signed a memorandum of understanding on plans to explore long-term network and infrastructure collaboration, especially on operations and maintenance, transmission and site sharing, and radio access network.

ECM Libra in a research note said that this was a positive development for Celcom and DiGi subject to signing a definite agreement by year-end once both parties determined the long-term viability of the collaboration.

It added that reducing costs would help boost margins and generate bottomline growth which has tapered off due to the saturating mobile market.

"Network sharing is a good move, we are already sharing 40 per cent of our tasks (such as the development of fibre optics) with others," Sandip said.

"When we look at the investment of the telecommunications industry in Malaysia, you really need to conserve that monies so that most of it will go towards new development growth for the country," he said.

"For example, we should conserve that monies for broadband or 3G network, the two areas which are not geographically served, then why should two or three companies duplicate and replicate that expenses?"

Maxis is looking forward to support the national vision of bridging the digital divide among Malaysians and the country's resolve to achieve a broadband household pentration rate of 50 per cent this year, Sandip said.

On other developments, he said that Maxis hoped for its second-quarter results to be better than the first quarter.

"We also hope to continue to record another year of over 50 per EBITDA (earnings before interest, tax, depreciation and amortisation) margin in 2010. We will work very hard to achieve this target, focusing on revenue growth and reduce our operation costs," he added.

Maxis, the fifth largest company on Bursa Malaysia by market capitalisation, recorded a revenue of RM8.611 billion in 2009.

The company has allocated RM1.4 billion for capital expenditure this year to, among others, increase its high speed wireless broadband coverage and expansion of fibre-to-the-home broadband.

Maxis' chief operating officer Jean Pascal Van Overbeke said the company was also looking to introduce new exciting services such as Internet protocol television (IPTV) this year.

"In the third quarter this year, Maxis will have a soft launch and hope our customers can try the service and give their feedback before the official launch later," he said.


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