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.
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.