Malaysia’s Maxis Communications dismisssed reports it is planning to sell its 74% stake in India’s Aircel, a Reuters report said.
Earlier, the Economic Times of India said Maxis is looking to sell the stake to US giant AT&T.
The unlisted, Kuala Lumpur-based Maxis denied the report and reiterated its commitment to build Aircel’s mobile business in India, the world’s fastest-growing cellular market, the Reuters report said.
“This news item is based on speculation, having no basis whatsoever. We are not aware of any discussions with AT&T about this matter,” Maxis said in a statement.
“Maxis Communications and its partners remain committed to the accelerated growth and development of Aircel to be a successful Pan-Indian operator,” it said.
In May, Maxis said it would spend €2.5 billion (US$4 billion)-€3.1 billion (US$5 billion) in India by 2009/10 to expand its network. It has in the past denied newspaper reports that it planned to exit its Aircel unit.
Unlisted Aircel, which has 7,000 telecom towers, has nearly 11 million subscribers in India.
AT&T, which has applied for licences in India in partnership with the Mahindra Group, was reported last year to be eyeing a wireless acquisition in the fast-growing market.
It said earlier this year it would invest €635 million (US$1 billion) worldwide for expansion.
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Malaysia’s Business Edge newspaper writes that Maxis Mobile is aiming to hit the target of two million 3G subscribers, having achieved the figure of 1.3 million by the end of March 2008. Maxis chief executive Sandip Das said: ‘As 3G services are increasingly being offered globally, we hope to see the prices of 3G handset devices falling. With that, we hope we will be able to cross the two million mark very shortly. Most of Malaysians buying new phones now are buying 3G-enabled phones, and that gives us a very big opportunity.
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Citing figures from a survey conducted last year by research firm Synovate, a Yahoo! executive said a growing number of Asians are spending more time using the Internet than any other medium. Singapore and Taiwan are currently leading the pack, followed by Hong Kong, Malaysia and Thailand. Television remains the main information source for Filipinos but the Internet has outranked newspapers, magazines and radio.
Though traditional advertisers dictate that marketing budgets go to traditional media, such as TV, radio and print, the gap is closing for online advertising, particularly with the rise of new content such as online video.
“Rich media will become premium content,” said Yahoo! Southeast Asia managing director Ken Mandel in his opening remarks at the Yahoo! Southeast Asia Advertising Summit here.
Yahoo! is upping the ante in the advertising space, specifically in Southeast Asia, as it sees more users in the region shifting toward the Internet for services and information. Beyond the Web, however, the company is also plans to cash in on the potential revenue it could generate from advertising on different platforms.
Mandel noted that the first that should be targeted are the consumers. While the company is said to already enjoy a 53-million-user figure in Southeast Asia, Yahoo! is still aiming to be the “starting point” for most consumers, where they could check their e-mail, chat via Yahoo! messenger, and access news and information, among other services. Users have also embraced rich media, such as online video and podcasts, to create and distribute content. As the number of users grows, Mandel said Yahoo! will then turn into a “must-buy” platform for advertisers who would have the capability to target users for their advertising campaigns.
At the summit here, Yahoo! executives showcased some of the services that the company hopes will entice new users and advertisers. Some of the services also delve into the mobile space, wherein mobile phones will be the next stage for content aggregation, distribution and revenue generation.
Yahoo! sees the mobile phone as a ubiquitous platform for information sharing and distribution, as well as a possible market for advertising.
Mandel said the company has been introducing new mobile services, including Yahoo! Go 2.0, but has set its sights on mobile advertising as well. Though he said that this will be small at first, he expects this segment to eventually grow as mobile phones become more powerful and enable users to access different online services.
Last year, Yahoo! acquired Blue Lithium, a startup firm that is able to do demographics analysis to better determine the advertising and marketing campaigns for companies.
Prashant Mehta, Yahoo! vice president for Advertiser and Publisher Group for Emerging Markets, said that by analyzing the online behavior of users, advertisers can create better marketing campaigns and get higher gains. As such, Yahoo! can also focus on creating values according to the requirements of the user, then measure what kind of information can be delivered to them. Advertisers will be able to see where they can fit their marketing strategies.
“We’re investing in common hosted platforms to connect the advertiser and publisher to ad networks where they could easily measure their gains,” Mehta said.
Mehta said he is optimistic that online advertising will continue to grow tremendously, stating that it is currently worth 43 billion US dollars but could grow up to 78 billion US dollars by 2010.
“User behaviors are changing very fast and so we need to adapt to them,” Mehta said.
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The British and Dutch-owned global oil company, Royal Dutch Shell, has awarded a series of managed services deals worth billions of euros to AT&T, T-Systems and EDS. Almost 3,000 workers – about 1,800 staff and 1,100 contractors – will be transferred to the employ of service providers as part of the deal while T-Systems will relocate its US headquarters to Houston, Texas.
According to the Financial Times, Shell’s action was motivated by the pressing need to cut costs in the face of rampant cost inflation in the global oil and gas sector, caused by shortages of staff and equipment. Shell hinted that it expected to save around €317 million (US$500 million) overall this year and that these contracts would be a significant contribution to that total.
AT&T has won a five-year contract valued at €1.01 billion (US$1.6 billion) to manage Shell’s networks and communication services, including VOIP, mobile, and remote access services.
As part of the agreement, AT&T will provide managed services in more than 100 countries, and manage relationships with more than 300 third party suppliers, including suppliers of local access connections. AT&T will also take on 560 Shell staff in the Netherlands, Malaysia, the UK and the US.
Shell awarded Deutsche Telekom’s T-Systems division, a contract about €1.01 billion (US$1.6 billion) to provide global hosting and storage services to Shell. T-Systems will take over and run Shell’s global data centres, including three in the Netherlands, one in Malaysia and one in the US, taking on about 900 Shell staff in the process.
IT services company Electronic Data Systems (EDS) has also won a five-year, €1.01 billion (US$1 billion) contract to provide “end-user computing services including desktop, service desk, on-site services, back-up and disaster recovery, mobile information protection and managed messaging services,” according to a company statement.
BT Global Services also bid for a contract, but was unsuccessful. One pundit, who did not wish to be named, said the BT business unit is struggling to increase its profit margins and make the headway it was supposed to as part of BT’s reincarnation a 21st century telco. The failure to win part of the Shell spoils is a considerable blow and will give BT Global Services’ CEO, Francois Barrault, some serious pause for thought.
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Celcom claims to have become the first operator in Malaysia to establish a single core network platform for its GSM and W-CDMA networks, using a Mobile Softswitch solution from Ericsson. The deployment also marks the first step for Celcom in migrating its core network to an all-IP architecture. Upon completion, Celcom will benefit from having a single, common infrastructure that will handle both 2G and 3G network services, including the current available voice, data and TV services such as MMS, mobile broadband and mobile TV. The common infrastructure will also enable Celcom to introduce innovative new services such as dual numbers in one SIM card or same number in multiple devices, 3G services on 2G SIM card and mobile number portability, to name a few.
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- March 31st, 2008
- 11:06 am
Celcom today became the first operator in Malaysia to establish a single core network platform for both GSM and WCDMA technology with the deployment of Mobile Softswitch solution from Ericsson (NASDAQ: ERIC), in its network.
The move is in line with Celcom’s continuous focus to modernize its network to deliver classic telephony services over a more modern and cost efficient network while creating a common foundation for new services. The deployment of Ericsson Mobile Softswitch also marks the first crucial step for Celcom in migrating its core network to an all-IP architecture.
Upon completion, Celcom will benefit from the convenience and simplicity of having a single, common infrastructure that can handle both 2G and 3G network services, including the current available voice, data and TV services such as MMS, mobile broadband and mobile TV.
The common infrastructure will also enable Celcom to be ahead of its competition in introducing innovative services such as dual numbers in one SIM card or same number in multiple devices, 3G services on 2G SIM card and mobile number portability, to name a few.
By deploying Ericsson Mobile Softswitch, Celcom is able to introduce a layered architecture design in its GSM/WCDMA mobile circuit core. Layered architecture enables separation and centralization of the equipment responsible for call control and network intelligence, enabling a reduction in the number and size of main core network sites for Celcom. This will ultimately provide significant savings for Celcom and reduces the company’s core network operating expenditures (OPEX).
“As a long-time partner to Celcom, Ericsson is excited to play a prime role in supporting Celcom’s decision to create yet another milestone in the industry. Ericsson is fully committed to ensure a smooth evolution of Celcom’s core network to an all-IP architecture.” said Krishna Kumar, President and Country Manager of Ericsson Malaysia.
Ericsson is the world’s leading provider of technology and services to telecom operators. The market leader in 2G and 3G mobile technologies, Ericsson supplies communications services and manages networks that serve more than 185 million subscribers. The company’s portfolio comprises mobile and fixed network infrastructure, and broadband and multimedia solutions for operators, enterprises and developers. The Sony Ericsson joint venture provides consumers with feature-rich personal mobile devices.
Ericsson is advancing its vision of ‘communication for all’ through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 70,000 employees generated revenue of USD 27.9 billion (SEK 188 billion) in 2007. Founded in 1876 and headquartered in Stockholm, Sweden, Ericsson is listed on the Stockholm, London and NASDAQ stock exchanges.
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Japan’s NTT is to sell its entire stake in Sri Lanka Telecom to Malaysia’s Maxis Communications after a long legal battle.
The Reuters report quoted Sri Lanka Telecom head of investor relations Upali Mahamithawa as saying that “Maxis has agreed to buy the whole NTT holding,” soon after a court ruling that allowed a sale to proceed.
The 35.19 % stake would be worth about $214 million at current share prices, the report said.
The last condition is for transparency and prior public notice in the event of a management agreement, the report said.
NTT had planned to sell mobile network operator Maxis 25.3% of Sri Lanka Telecom early last year, but the deal was temporarily blocked by the country’s Supreme Court in June after an opposition member of parliament opposed it, the report.
This week, the court allowed NTT to proceed with a sale.
The government has a 49.5% stake in Sri Lanka Telecom. The rest is held by the public.
Analysts said the court ruling and NTT’s decision to sell the entire stake would boost the market.
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State-controlled Telekom Malaysia Bhd ™ said on Thursday shareholders have approved its proposed demerger, and plans to float its mobile and overseas operations by June remain on track.
Malaysia’s largest telecommunications company is planning to spin off its mobile and non-Malaysian businesses, housed under TM International Bhd (TMI). TMI will then be listed as a separate entity on the main board of the Malaysian bourse.
Telekom Malaysia’s fixed-line voice, data and broadband operations will be housed under TM, the existing listed company.
Under the demerger proposal, TM shareholders will receive one TMI share for every single TM share held.
‘We believe that this will result in significant operational and strategic benefits to both TM and TMI moving forward. Their approval is an endorsement of the group’s transformation efforts,’ said TM chairman Mohammad Radzi Mansor.
Abdul Wahid Omar, chief executive officer of TM, said TMI is on track to be listed in the second quarter.
‘We still have a few other approvals to be obtained, we hope we will be able to get all these remaining approvals in the next two months,’ said Wahid.
The TM chief said the demerger is expected to be completed next month when the company holds its annual shareholder meeting, and the listing of TMI will happen thereafter.
‘We have been given the time guidance by the end of the second quarter, so indeed, the listing should happen before June,’ he said.
Wahid said the company has yet to decide whether or not to bring in a foreign partner at TMI. The company previously said it may sell a portion of its stake in TMI to a foreign entity.
‘We are still evaluating, there is no specific proposal to be evaluated per se. The first step will be to determine whether we really need a partner,’ he said.
Earlier media reports said TM has shortlisted at least three foreign parties for the proposed sale of the TMI stake and France’s Vivendi SA and China Mobile Ltd were quoted as among the interested telcos.
TM has a 95 percent market share in the Malaysian fixed-line industry and controls 96 percent of the broadband business. It also owns significant mobile assets in Sri Lanka, India, Indonesia, Singapore and Bangladesh.
The company, controlled by government investment arm Khazanah Nasional Bhd, is the contractor for the 15.2 billion ringgit project to develop Malaysia’s nationwide high-speed broadband infrastructure.
At 4.06 pm, TM shares were up 10 sen or 0.9 percent at 11.10 ringgit. TM’s share price has dropped 0.9 percent so far this year, against the benchmark composite index’s 7.7 percent fall.
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- February 28th, 2008
- 2:39 pm
US technology giant Motorola has announced a 350 million ringgit ($109 million) reinvestment into Malaysia, which spreads from 2007 over five years, local media reported.
The reinvestment, which will be put into the company’s operations via Motorola Technology in Malaysia’s northern Penang state, houses the company’s biggest design center for two- way radio products in the world.
Motorola’s investment history in Malaysia dates back to 1972 and the new investments will result in a cumulative amount of 3.85 billion ringgit ($1.2 billion).
The announcement by Motorola senior vice-president Gene Delaney in Penang comes on the heels of an award given by the Malaysian government to Motorola recently for public safety communication products.
“This award is testament to the fact that Motorola has the right expertise to provide an advanced integrated secure communication solutions for the country using Made-in-Malaysia products,” the New Straits Times quoted Delaney as saying.
Motorola Penang, with its 4,000 jobs, serves as a major site for Motorola’s 24-hour Asia technical support center.
Delaney, who is also the company’s president for Motorola’s Government and Public Safety Enterprise Mobility Solutions business sector, said the reinvestment will focus on key areas like human capital and research and design technology developments in manufacturing products such as digital two-way radios, advanced wireless communication products, equipment and accessories.
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- February 28th, 2008
- 2:09 pm
Telekom Malaysia Bhd., Southeast Asia’s second-largest phone company, said it will keep control of its wireless business in any stake sale, dimming the appeal for potential suitors including Orascom Telecom Holding SAE.
“We must be able to actually control its operations,'’ Telekom Malaysia Chief Executive Officer Abdul Wahid Omar, 44, said in an interview at the company’s Kuala Lumpur headquarters yesterday after reporting record full-year profit. “Should any decision be made to bring in a partner it will not be a majority, it would be a minority stake.'’
Insisting on control may hamper Telekom’s ability to reap a premium for the business, which it estimates is worth 28 billion ringgit ($8.7 billion). Orascom, the biggest mobile carrier in the Middle East and North Africa by users, has said it is interested in bidding for joint control of Telekom.
“The issue has always been: who would want to pay that kind of valuation for a minority stake?'’ said Khair Mirza, an analyst at Aseambankers Malaysia Bhd. in Kuala Lumpur with a “fully valued'’ rating on Telekom shares. “Would Telekom cede control, holding 90 percent?'’
Orascom Telecom Chief Executive Officer Naguib Sawiris didn’t immediately reply to an e-mail seeking comment.
Telekom shares rose 0.9 percent to 11.50 ringgit at 10:51 a.m. in Kuala Lumpur after the company announced a record profit yesterday.
Book Value
The phone operator is trading at twice its book value, compared with an average of 30 times for telephone companies in the Pacific Rim, Bloomberg data show. Singapore Telecommunications Ltd., Southeast Asia’s biggest phone company, is trading at more than three times book value.
Telekom may opt for a partner who can help the Malaysian company expand in Vietnam or Pakistan to complement its overseas operations, instead of accepting the highest offer, said Abdul Wahid, who will leave Telekom Malaysia to become chief executive officer of Malayan Banking Bhd., the country’s largest bank, in July.
The phone carrier, which has mobile-phone operations in nine countries including Indonesia, Singapore and India, might consider a suitor with assets in other Asian nations, he said.
“There are some partners that may be able to add in terms of assets, assets which we couldn’t have otherwise gotten,'’ he said. It’s “not just pure money.'’
Interested Parties
Vodafone Group Plc, Emirates Telecommunications Corp., AT&T Inc., China Mobile Communications Corp. and Vivendi SA have expressed interest in bidding for a stake in TM International Bhd., the holding company for Telekom’s domestic and overseas mobile assets, the Malaysian company said last month. TM International is scheduled to be listed in Malaysia by July.
Greg Brutus, a Hong Kong-based spokesman for AT&T, didn’t immediately reply to messages left on his phone. Rainie Lei, a Hong Kong-based spokeswoman for China Mobile, said she wasn’t aware of any expression of interest by the company in Telekom Malaysia’s mobile-phone unit.
China Mobile bought Pakistan’s Paktel Ltd. last year, while Emirates Telecommunications, based in Abu Dhabi, owns 16 percent of PT Excelcomindo Pratama, Telekom Malaysia’s Indonesian mobile unit. Vodafone bought control of Hutchison Essar Ltd., India’s third-largest wireless operator, in May, and AT&T has operations in Vietnam.
Telekom is separating the faster-growing wireless division from the domestic fixed-line business to increase the appeal of a possible sale. In Malaysia, where at least 70 percent of the population own a mobile phone, the company is relying on demand for Internet connections to sustain earnings as it rolls out a high-speed nationwide network.
Telekom, which yesterday reported full-year profit rose 23 percent to a 2.55 billion ringgit, may not need an investor. TM International’s listing may raise $700 million, the company has forecast, and Abdul Wahid said yesterday the company hasn’t decided if a partner is required at all.
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Maxis denies plans to sell Aircel stake to AT&T (Malaysia)
