Telekom Malaysia Berhad (TM) is pleased to announce the completion of the Investment Agreement for its partnership with Green Packet Berhad (Green Packet) and SK Telecom Co., Ltd (SK Telecom) for the three parties to share in the ownership and collaborate in the future growth of Packet One Networks (Malaysia) Sdn Bhd (P1), Malaysia’s leading WiMAX wireless provider. Applicable approvals, including from the relevant regulatory bodies and Green Packet shareholders have been duly obtained.
Following the completion, TM emerges as the new holding company for P1 with a shareholding of 55.3%; and the remaining 44.7% is shared between Green Packet (31.1%) and SK Telecom (13.6%).
The partnership drives strong synergies from the three (3) complementary partners to work together to capitalise on a viable mobile opportunity and deliver the next generation of converged communication services. It essentially enables P1 to crossover to LTE and offer full mobility while providing TM with an LTE-ready platform to accelerate and more efficiently make wireless broadband products available to its customers. This includes access to suitable spectrum bands, the ability to draw on advanced technological knowhow of SK Telecom, an existing customer base to build on, and the strong base of LTE upgradeable WiMAX sites to quickly achieve extensive LTE coverage.
TM sees the provision of mobility solutions to customers as a natural progression in line with industry evolution towards true convergence, not just from a technology or device perspective, but more importantly from a customer experience point of view, in the delivery of end-to-end broadband and data services. Its investment into P1 and the recent launch of its first 4G broadband offering, TMgo are part of TM’s roadmap towards becoming the No. 1 converged communications service provider. It is also in line with TM’s vision of being an “Information and Innovation exchange” and will further bolster its position as Malaysia’s broadband champion.
The partners, together with P1, are currently developing a joint business plan and strategies for the realisation of partnership synergies. At the same time, the partners are conducting an operational review to further optimise operations for P1’s future business. Product development and commercial plans are also under discussion.
TM will play an active role in the management and direction of P1 through its strong representation at the board level. As the holding company, it also has nomination rights for key management positions. P1’s new board and management line-up will be announced in due course.