Telekom Malaysia Bhd. (TM), Packet One Networks Sdn. Bhd. (P1), Green Packet Bhd. and South Korean mobile operator SK Telecom have agreed to extend the longstop date for TM’s investment in P1 by two months until September 30th, 2014, according to Digital News Asia (DNA). The extension is to give TM more time to obtain necessary approvals from local telecommunications industry regulator the Malaysian Communications and Multimedia Commission (MCMC).
On March 27th, 2014, TM, Malaysia’s largest fixed-line telco, announced that it had agreed to buy a majority stake in P1 for RM350 million and would invest a further RM210 million into P1’s parent company, Green Packet, through the purchase of 8-year redeemable exchangeable secured bonds that could be swapped for P1 shares held by Green Packet at a later date.
South Korea telco, SK Telecom is celebrating its 30th anniversary in the mobile business. Founded back in March 1984 as Korea Mobile Telecommunications Services Corp, it started off as an analog mobile carrier and has evolved into a pioneer telco in 3G and 4G networks.
To commemorate the special occasion. they have connected 30 mobile phones and 4 pages from 1985 to 2010 in a special mobile orchestra. You can see some popular classics of old like the Nokia 101 from 1991.
Check out the video after the break.
In today’s announcement event, TM will be signing a partnership with Green Packet, SK Telecom and P1 for the development for a converged next-gen communication services. This signifies TM’s strong desire to venture into the wireless broadband space particularly LTE services.
In this partnership, TM is expected to anchor and take the lead while Green Packet that have founded P1 WiMAX will ensure P1’s business continuity. SK Telekom being a major wireless player in South Korea will be providing strategic and technical expertise. Through the collaboration, they will be focusing on delivering high quality LTE data services leveraging on P1’s 2.6GHz spectrum and its network of over 2,000 sites nationwide. P1 owns the valuable 50MHz spectrum in the 2.3GHz and 2.6GHz bands.
TM will hold 57% stake in P1 by injecting RM350 million into the wireless operator. Through the partnership, P1 will be a subsidiary under TM. In addition, TM will also invest up to RM210 million into Green Packet through redeemable exchangeable bonds. The investment is made through Mobikom Sdn Bhd which is a wholly owned subsidiary of TM.
According to TM Group CEO, Tan Sri Zam, the partnership is in line’s with TM’s vision of being an Information Exchange and Malaysia’s Broadband Champion. The partnership provides an LTE-ready platform to efficiently roll out wireless broadband products and accelerate time to market for its consumers.
SK Telecom is a big Android advocate and they had tremendous success with their bundling of Samsung Galaxy S in Korea. To celebrate their Android fever, they have released a special Android figurine pack called ANDROSKI that flexes. You could even turn this into a handphone stand for your android device too. Pretty neat accessory coming from a telco. Maxis should consider having one too since they are the most active Android player in Malaysia. You can check out Androski website here but its all in Korean.
Check out the video of the figurine after the jump along SK’s press video of their on ground Android campaign.
The Samsung Galaxy Tab that’s expected to come to SK Telecom will have a new contender. Its rival KT has its own 7″ Android tablet that also looks awfully similar to the iPad with its aluminium construction.
The device will be called KT Identity Tab which is powered by a 1GHz processor, 8GB of memory, DMB TV tuner and a 3 Megapixel Camera. It is said to be priced at 300,000 Korean Won (approx RM789) which will go head on against its rival Samsung Galaxy Tab.
Koreans are previously labeled as copycats in the automobile industry and now this might be regarded as carbon copy of an iPad.
Check out the pics after the jump
This is very interesting. After much speculation, Green Packet, the owners of P1, have confirmed that P1 and SK Telecom of Korea will be going into a strategic partnership with the Korea giant taking about a 25% stake in P1.
In a statement issued by Green Packet today, the purchase will pump in US$100 million (about RM330 million) investment money into P1. Though, the statement says that the proposed agreement between the two companies is subject to “certain closing conditions to be confirmed in June“.
In the telco game, RM300 million is considered chump change but it would be interesting to see what other injections in terms of knowhow and technology expertise that SK Telecom can offer to Malaysia’s leading WiMAX operator.
Looking forward to see what P1 can and will offer once this deal is confirmed.
The telco game is a money game. For you to be taken seriously in this industry, you need money and loads of it, bucket loads.
P1, was the first to market WiMAX in Malaysia but it appears that they’ve grown to big and too fast for their own good. And when that happens, you need money.
Word has it that P1 is currently looking for strategic investors to allow the telco to further expand both its WiMAX network coverage and subscriber base.
Business Times report that P1 has approached Korea’s largest telco, SK Telecom for the said injection of funds.
Both declined to comment on the report but it is said that a one fifth stake in P1 is worth about US$100m of investor’s money.
With Wizard, Michael Lai at the helm, P1 showed tremendous promise early last year with good performance and solid packages. One year into the business, it is now plagued by frequent network outages and what could possibly be one of the country’s most unreliable networks, P1 could very well put the funds to good use, if the investment does happen.
Many would like to see major improvements in network reliability and performance as well as an increase in coverage areas especially in buildings.
For 2010, P1 targets to double its subscriber base and coverage areas. As of December 2009, P1 has crossed the 140,000 subscriber mark with coverage across 35% of Peninsular Malaysia.