Wireless Federation

Axiata may be looking to acquire stake in Tikona (Asia)

On 01.20.12, In Mobile, By Editor

Leading telecommunications company Axiata is reportedly looking to buy a stake in Indian internet service provider, Tikona Digital, in an attempt to increase its presence in the Indian broadband market. According to reports, the Malaysian telecom operator has been holding discussions with Tikona’s main shareholders comprising of Goldman Sachs Group Inc., Oak Investment Partners and Everstone Capital Advisors Ltd.

As per industry reports, Tikona acquired broadband spectrum in five circles including Rajasthan, Himachal Pradesh, Gujarat and Uttar Pradesh (East and West), for US$ 206 million, during the 2010 auctions.

In the event that the deal goes through, it is likely to intensify competition in one of the world’s largest telecom market with a huge potential for data revenue. With voice and text revenues steadily declining, operators have been turning towards data services to maintain their profit margins.

The company is yet to make an official statement concerning the same.

Filed under:Mobile Tagged with: Axiata • broadband spectrum • data revenue • India • Internet Service Provider • Malaysia • Tikona Digital

Thailand’s ICT minister to propose fresh bids

On 03.07.11, In Mobile, By Editor

The Information and Communications Technology (ICT) minister has stated that he is prepared to submit his proposal to the cabinet to invite foreign telecom firms to take over the concessions of local mobile operators if they fail to pay compensation for past concession amendments.

According to Juti Krairiksh, the proposal would apply to all three mobile operators- Advanced Info Service (AIS), DTAC and True Move, if compensation negotiations fail.

The minister and executives of TOT Plc met in Spain last month with executives of eight international telecom companies to discuss the possibility of selling the concession of mobile leader AIS to them.

The eight are Telecom Italia of Italy, China Mobile, NTT DoCoMo of Japan, SK Telecom of South Korea, Axiata of Malaysia, and three US operators.

Mr Juti insisted the ministry would not intervene in continuing negotiations between an ICT Ministry committee, private operators and state enterprises on compensation figures.

However, he acknowledged that negotiations were unlikely to be settled amicably given the wide gap in the stances of TOT and CAT Telecom and the private operators.

TOT and CAT, despite having approved the concession amendments, some made as long as 15 years ago, are seeking tens of billions of baht to cover losses from deals that they say favored the operators.

Juti added that if concession negotiations cannot be settled, the matter reverts to the ICT ministry, so he will submit the proposal to the cabinet for consideration. Then, he will announce the opportunity for prospective foreign operators to submit their proposals to take over the mobile concessions from operators that could not settle with the state.

Filed under:Mobile Tagged with: Advanced Info Service • AIS • Axiata • CAT • China • China Mobile • DTAC • ICT • Information and Communications Technology • Italy • Japan • Juti Krairiksh • Malaysia • Mobile • NTT DoCoMo • SK Telecom • South Korea • Spain • Telecom Italia • TOT Plc • True Move • U.S

Telekom, Axiata has initiated a probe into the Alcatel bribe case

On 01.05.11, In Mobile, By Editor

Telekom Malaysia Bhd. and Axiata Group Bhd., two state-controlled telecommunications providers have stated that they will investigate alleged improper payments admitted to by Alactel-Lucent SA.

According to separate exchange filings yesterday, the Malaysian companies jointly appointed a private consultancy firm as forensic accountants and Shearn Delamore & Co as legal advisor to assist in the probe.

Alcatel-Lucent, the world’s biggest provider of fixed line phone networks, agreed on Dec. 28 to pay $137 million to resolve U.S. criminal and civil probes after admitting to bribing officials in countries including Taiwan, Malaysia and Costa Rica.

According to analyst, this is much-welcomed news as it speaks well of both Telekom Malaysia and Axiata’s corporate governance procedures, given their quick response to investigate the case. It indicates the boards’ seriousness in tackling the issue.

Alcatel Malaysia made at least 17 improper payments from 2004 to 2006 to employees of Telekom for non-public information relating to ongoing tender offers, according to a statement of facts admitted by Alcatel in its deferred- prosecution agreement with the U.S.

Filed under:Mobile Tagged with: Alactel-Lucent SA • Axiata • bribe case • Costa Rica • Malaysia • Mobile • Shearn Delamore & Co • Taiwan • Telekom • USA

Axiata sells Samart Corp stake (Malaysia, Thailand)

On 12.24.10, In Mobile, By Editor

Malaysia’s Axiata has sold its18.9% stake in the parent company of Thai mobile operator Samart i-Mobile for $34.8 million.

Samart Corporation shareholders – Charoenrath Vilailuck and Watchai Vilailuck bought back the 18.9% stake, which Axiata has held since 1997. The deal increases the Vilailuck family’s stake in Samart Corp to 53.12%.

According to Axiata President and group CEO Datuk Seri Jamaludin Ibrahim, the sale reinforces their commitment to focus on their primary business of mobile communications.

According to Axiata, the deal is not expected to have any material financial impact on its consolidated earnings for 2010.

Axiata still holds a 24.4% stake in Samart subsidiary Samart I-Mobile, which it purchased in 2006.

Filed under:Mobile Tagged with: Axiata • Axiata President and group CEO Datuk Seri Jamaludin Ibrahim • Charoenrath Vilailuck • Malaysia • Mobile • Samart Corp • Samart i-Mobile • Thailand • Watchai Vilailuck

Telekom Malaysia to sell Axiata shares

On 12.06.10, In Mobile, By Editor

If sources are to be believed, Telekom Malaysia Bhd., the state- controlled fixed telephone operator has lifted US$131 million to sell 90 million shares of Axiata Group Bhd.

According to sources, the shares were sold at US$1.46 each. CIMB Investment Bank Bhd. and Credit Suisse Group AG managed the sale.

According to Telekom, it plans to dispose a total of as much as 191.5 million shares in Axiata through private placements and on the open market.

Telekom Malaysia is the largest telecommunication company in Malaysia. It has a monopoly on the fixed line network and has a considerable market share of the mobile communications market after its acquisition of Celcom and merging with its mobile operation arm, TMTouch.

Filed under:Mobile Tagged with: Axiata • Celcom • CIMB Investment Bank Bhd • Credit Suisse Group AG • Malaysia • Mobile • Telekom Malaysia • TMTouch

Five Bidders for the Thai 3G auction scheduled for September 28-29

On 08.18.10, In Mobile, By Editor

Five companies bought bid documents for the 3G license auction scheduled for September 28-29 when the National Telecommunications Commission opened the sale of documents on Tuesday

According to the reports, AIS, DTAC and True Corp the three main operators of Thailand have bought bid documents for the 3G auction. The other two applicants are Samart and Loxley who operates as in MVNOs.

All the three operators bought two bid documents each AIS for itself and its subordinate AWN, DTAC for itself and its unit DTAC Internet Service, and True for its two units True Move and SK Wireless, while only one operating company from each will be able to take part.

The government has set a reserve price for a 15-year license of $403.1 million. Operators can file their bid proposals by the end of this month.

AIS has dedicated US$ 1.578 million to developing 3G services over the next three years. According to MVNO Loxley, it was in talks with an Asian company to form a possible JV to bid for a licence. The establish investment of the JV would be around US$ 0.946 million.

According to Samart President Watchai Vilailuck., Samart is considering following Loxley’s track. The company is in talks with Malaysian giant Axiata and another Asian telco over forming a JV for the purpose. The venture would have initial funding of US$ 0.631 million and about 51% would be owned by Samart’s MVNO unit Samart I-Mobile. The company would wait until the results of a feasibility study to determine whether the project would be worth its hefty price tag.

Filed under:Mobile Tagged with: 3G • AIS • ASIA • AWN • Axiata • DTAC • I-Mobile • Loxley • Malaysia • Mobile • MVNO • NTC • Samart • SK Wireless • Thailand • True Corp

Axiata’s profit rises in Q1 (Malaysia)

On 05.29.10, In Mobile, By Editor

www.WirelessFederation.com/news: Net profit of Malaysia-based telecoms group Axiata increased from MYR63.89 million (USD17.5 million) in 1Q09 to MYR921.48 million (USD281.7 million) in the three months ended March, 31 2010. Operational improvements and cost management at three of its subsidiaries Malaysia’s Celcom, XL of Indonesia and Sri Lanka’s Dialog has been attributed as the reason behind increased profitability.

Disposal of shares in XL has also been hailed as the reason behind the gain. 31% year-on-year rise in the revenue has also been reported which reached MYR3.81 billion while the EBITDA rose 52% against the same period a year earlier to MYR1.68 billion. Axiata’s total customer base rose by 37% y-o-y to reach 129.7 million at end-March 2010.

According to the company, it expects to face continued challenges in the coming year, and reiterated its plans to take a long term view by adopting prudent measures to optimize financial performance.

Filed under:Mobile Tagged with: ASIA • Axiata • EBITDA • Indonesia • Malaysia • Sri Lanka

Axiata Bangladesh & Vietnam’s MobiFone plan IPO

On 02.11.10, In Mobile, By Editor

www.WirelessFederation.com/news: With the return of confidence in the share market, Axiata Bangladesh and Vietnam’s MobiFone- two leading mobile operators in developing Asia- have started preparing for IPO. Aktel which is the third largest operator, with 9.3 million customers at end-December is owned by Axiata and its listing, comes amid huge demand for stock in the no. 1 cellco GrameenPhone.

According to Securities and Exchange Commission (SEC) chairman, Ziaul Haque Khondker, as price volatility in Grameenphone shares has appeared during the last few days’ trading; the commission has stopped the financial adjustment facilities to bring back stability in prices of the company.

Meanwhile, Vietnam’s dominant cellco MobiFone has taken its long-delayed IPO plans off the backburner, reportedly hiring Credit Suisse to manage its local listing.

Filed under:Mobile Tagged with: Aktel • ASIA • Axiata • Bangladesh • GrameenPhone • IPO • MobiFone • operator • Vietnam

Airtel- Warid deal receive regulatory nod

On 01.05.10, In Mobile, By Editor

www.WirelessFederation.com/news: By receiving the regulatory approval to pay $300 million for a 70% stake in Bangladesh’s fourth-largest cellco Warid Telecom via a new share issue, Bharti Airtel has strengthened its Asian asset portfolio.

If the move is successful, Indian mobile behemoth can compete with global magnates Telenor, Axiata and Orascom Telecom in Bangladesh. The moves have become imperative for Bharti in order to help prop up its profits from the low ARPU, highly competitive Indian market. Kuwait’s Zain Telecom and Sweden’s Millicom International Cellular are also on its target.

Late last year, South African government’s disapproval led to the failure of the Airtel’s deal to merge with South African giant MTN. However, for Bangladeshi investment, Airtel have big plans hoping the investment to surpass a total of $1 billion in the next few years.

Filed under:Mobile Tagged with: ARPU • ASIA • Axiata • Bangladesh • Bharti Airtel • India • Kuwait • Millicom International Cellular • MTN • Orascom • South Africa • Sweden • Telenor • Warid Telecom • Zain

Millicom to exit Asia totally by Q1 of 2010. Sells Laos share to Vimpelcom for $66 Million.

On 09.23.09, In Mobile, By Editor

Millicom has agreed to sell its GSM business in Laos to Russia’s VimpelCom and has bidders lining up for its Sri Lankan operations, the sale of which will end Millicom’s activities in Asia. VimpelCom will pay about $66 million for Millicom’s 78 percent stake in Millicom Lao Co. Ltd.

Last month Millicom agreed to sell its 58.4 percent share in CamGSM, Royal Telecam International, and Cambodia Broadcasting to its Cambodian partner, The Royal Group, for $346 million in cash.

That leaves just Sri Lanka from Milicom’s Asian portfolio, and its operations there are also up for grabs. Millicom is the sole owner of Celltel Lanka (Pvt) Ltd. It was the first mobile operator in Sri Lanka. Mobitel and Tigo both claim to be the second largest. Dialog GSM is the country’s largest operator.

Indian State owned, Bharat Sanchar Nigam Ltd. (BSNL), UAE’s Etisalat, Malaysia’s Axiata Group and India’s Bharti are also said to be bidding to acquire Tigo Lanka.

Axiata’s Dialog and Airtel already operate in Sri Lanka. Airtel winning the bid might sit better with the regulator since Axiata winning it would give Dialog an overwhelming position in the market.

Millicom expects to exit Asia Q1 of 2010. At the end of the first quarter, Millicom had a total of just over 4.5 million subscribers in Asia. Millicom’s Asian Revenues for 2008 are at $262 million with an EBDITA of $101.5 million. This is a year-on-year increases of 24.4 percent and 27.5 percent respectively.VimpelCom will pay approx $66 million for Millicom’s 78 percent stake in Millicom Lao Co. Ltd.

Filed under:Mobile Tagged with: ASIA • Axiata • Axiata group • Bharti • BSNL • Cambodia • CamGSM • Celltel • Celltel Lanka • Dialog • Etisalat • India • Laos • Malaysia • Milicom • Millicom • mobile operator • Mobitel • Regulator • Royal Group • Royal Telecam • Russia • Sri Lanka • telecam • Tigo • UAE • VimpelCom