Telekom Malaysia Buys Majority Stake in Local WiMAX Network
Published on: 27th Mar 2014
By: Ian Mansfield
Telekom Malaysia is buying a majority stake in the local WiMAX network operator Packet One Networks and will migrate the company over to a LTE platform.
Telekom Malaysia will initially invest RM350 million into P1 via the subscription of new ordinary shares to make it the majority shareholder with an estimated 57% stake, with Green Packet and SK Telecom remaining as minority shareholders of P1 upon completion.
South Korea's SK Telecom currently owns a 25% stake in the company, which it bought in May 2010 for USD100 million.
TM will additionally invest up to RM210 million into Green Packet via a debt issuance, which may be exchangeable into Green Packet's stake in P1 in the future.
Packet One (P1) will then capitalise on its spectrum assets, existing wireless platform and network footprint of close to 2,000 sites to speed its entry into the LTE space.
P1 owns 30MHz of radio spectrum in the 2.3GHz band, and was one of the eight companies to be awarded with 20MHz of the 2.6GHz spectrum in 2012.
TM Group Chief Executive Officer, Tan Sri Zam said, "The partnership provides an LTE-ready platform for us to more efficiently roll out wireless broadband products and accelerate time-to-market for our customers".