Three Malaysian Telcos Sign Agreement to Jointly Develop Fiber Infrastructure to Avoid Duplication



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KUALA LUMPUR (March 18): Telecommunications companies (telcos) Celcom Axiata Bhd, Digi Telecommunications Sdn Bhd and Maxis Bhd have concluded a definitive agreement to jointly develop and share fiber infrastructure.

The announcement comes a year after the three telcos signed a memorandum of understanding to explore how to leverage each other’s resources to implement a more extensive and efficient fiber network.

In a statement, the telcos said this would allow a faster and more efficient deployment of fiber backhaul to base stations, avoiding the duplication of fiber infrastructure in the country.

They added that this collaboration will allow a better generalization of 4G connectivity and will increase the country’s fiber infrastructure in accordance with the ambitions of the National Digital Infrastructure Plan (JENDELA), in addition to preparing the tower infrastructure for 5G.

Telecommunications companies will also work to intensify the exchange of fiber infrastructure and improve mutual exchange agreements.

It was explained that the collaboration essentially leverages the strengths of fiber technology to complement microwave technology. Microwave technology will bring advantages in terms of rapid deployment, but fiber infrastructure upgrades will allow all three companies to be better prepared for Internet traffic growth, especially in high-impact areas.

The collaboration would also allow the industry to extend 4G mobile backhaul to support new 5G and fiber sites all the way to home expansion, they added.

The fiber collaboration is effective for 20 years. They noted that planning is well under way for joint construction and swap arrangements expected to take place in the future, and that other operators will also have the possibility to take advantage of the additional network capacity from this deal.

“This partnership marks an important milestone for Celcom in furthering our ambition to deliver an excellent and consistent network experience for all Malaysians.

“Celcom’s partnership with Maxis and Digi, which are also major telecommunications players in the country, will result in increased profitability for the deployment of network infrastructure and services across the country, supporting the ever-increasing demand for traffic. Celcom will continue to actively collaborate across various industries towards creating a ‘win-win-win’ situation that will benefit the rakyat, government and industry, “said Celcom Chief Executive Officer (CEO) Idham Nawawi.

Digi CEO Albern Murty added that the partnership will create opportunities to avoid infrastructure duplication and enable faster growth of mobile network capacity through efficient fiberization of sites.

“We will continue to explore synergies in our shared purpose of providing affordable, high-quality 4G connectivity to all consumers, while paving the way for 5G technology and services,” said Murty.

“We are pleased to see our collaboration move to the next level as it supports our collective ambition to provide fiber connectivity that is robust, pervasive, high-quality and affordable for all Malaysians. Infrastructure sharing is key to achieving this and enabling improved efficiencies especially in bridging the digital divide and creating a constructive environment for new technologies such as 5G. We remain committed to playing a role in supporting the country’s digital ambitions, “said Maxis CEO Gokhan Ogut.

Maxis shares closed 1.28% or six sen below RM4.63, valued at RM36.22 billion. Digi’s parent company DiGi.Com Bhd closed 1.08% or four sen lower at RM3.68, yielding a market capitalization of RM28.61 billion. Axiata shares were five sen or 1.3% lower at RM3.80, valued at RM34.84 billion.



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