KUALA LUMPUR (Feb 21): Celcom Axiata Bhd has bagged a related party award from Telekom Malaysia Bhd (TM) to provide the 4G Multi-Operator Core Network (MOCN) to TM's subsidiary webe digital Sdn Bhd.
TM said 4G MOCN is an alternative network sharing technology which complements the existing 2G and 3G domestic roaming (DR) services arrangement through an agreement which was entered into between TM, webe and Celcom in January 2016.
“This 4G MOCN award will enable webe to further enhance its existing network coverage. This current initiative is in line with TM’s continuous efforts to improve customers’ experience and its aspiration towards a converged digital lifestyle,” TM said in a stock exchange filing.
The value of the award will be determined based on usage and the rates, as stipulated in the contract, it added.
Axiata Group Bhd, the parent company of Celcom, in a separate filing said it will provide the 2G DR,3G DR, 4G DR and/or 4G MOCN services and facilities for webe for a period of three years.
“The 4G MOCN award will enable Celcom to enhance the current collaboration, by offering complete (2G/3G/4G) wholesale services to webe.
“In return, this will accelerate webe’s ongoing effort of a continuous and rigorous roll-out of its Long-Term Evolution services nationwide, leveraging on Celcom’s high quality network and wide coverage,” Axiata added.
Axiata said the award is expected to contribute positively towards the group’s future earnings.
Shares of Axiata fell one sen or 0.23% to RM4.30 today, giving the group a market capitalisation of RM39.01 billion. TM, meanwhile, rose 12 sen or 4.04% to RM3.09, for a market value of RM11.61 billion.
The group is selling the two towers which have a combined gross floor area of 679,015 sq ft. A tender viewing will be held on Feb 27 at the group’s headquarters.