Thursday 28 Mar 2024
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KUALA LUMPUR (July 8): Mestron Holdings Bhd's wholly-owned subsidiary Mestron Engineering Sdn Bhd signed today a memorandum of understanding (MoU) with Platinum Core Solutions Sdn Bhd (PCS) to explore a joint venture involving the conversion of telecommunication signals to boost Internet speed.

In a filing with Bursa Malaysia today, steel pole manufacturer Mestron Holdings said the MOU expresses the intention of Mestron Engineering and PCS to explore the collaboration in providing a centralised system for a base-band unit (BBU) that convert cellular base-band signals into radio frequency signals (centralised BBU system) to licensed network service providers in Malaysia.

"The company, through its subsidiary, is currently involved in the telecommunication infrastructure industry, through its offering of specialty poles, specifically telecommunication monopoles. The MOU provides the company with an opportunity to expand its foothold in the telecommunication infrastructure business by participating in the centralised BBU system project.

"The participation in the centralised BBU system project would also allow the company to leverage on the favourable outlook of the telecommunication infrastructure industry, specifically through the periodic roll out of 5G technology in Malaysia to improve the profitability of its manufacturing business segment," Mestron Holdings said.

Mestron Holdings said Mestron Engineering and PCS will negotiate the planned collaboration and enter into a definitive agreement within one month from the date of the MOU or within an extended period, as may be mutually agreed by the parties.

The centralised BBU System is developed by PCS as a network solution to boost Internet speed. Mestron Holdings said the centralised BBU System is a carrier neutral network solution for all mobile network operators and is managed centrally at a centralised facility hosted by PCS, with the necessary service infrastructure. 

Mestron Holdings said the implementation of the centralised BBU system will entail the replacement of existing telecommunication towers and monopoles with new multi-functional poles or smart poles that are able to support street lighting application, broadband transmission, surveillance cameras and wireless network components.

Mestron Holdings' managing director Por Teong Eng said in a separate statement that pursuant to the MOU, Mestron Engineering and PCS will work together and cooperate as joint venture partners, to implement the centralised BBU project "and such other projects as may be identified and agreed by both companies." 

At Bursa Malaysia today, Mestron Holdings shares finished 0.5 sen or 3.45% lower at 14 sen. The stock saw 6.4 million shares traded.

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