Monday, July 16, 2012

Malaysian Operators Agree to LTE Infrastructure Sharing


Maxis , Malaysia's leading integrated communications service provider, and REDtone, a broadband service provider, signed an infrastructure and spectrum sharing agreement.


The deal paves the way to faster LTE roll out across Malaysia. Both Maxis and REDtone are looking to launch their 4G LTE services early next year in selected areas of the Klang Valley, with other regions to follow closely thereafter.


Maxis Chief Executive Officer, Sandip Das said, “We have been at the forefront of promoting networks to be shared as we have recently commissioned active network sharing on 3G with U Mobile. Data networks are onerous and have to be built carefully. The demand for data is not disputed, but the inflection point is some time away. Sharing will get REDtone up and running quickly and also fetch adequate returns on our investments, besides conserving spends at a national industry level. We are looking to set a new benchmark in data service quality as this will help us design a more effective infrastructure."


"The network sharing and alliance agreement with Maxis is a significant development for REDtone as we build on our broadband business. It will help to address REDtone’s rollout obligation to cover 50% of the country’s population," said REDtone Managing Director Dato’ Wei Chuan Beng. “For REDtone to comply with the 50% rollout requirement, our capex would have been RM390 million as is stated in our detailed business plan (DBP). However, this has been mostly replaced by riding on Maxis’ existing infrastructure and leasing the necessary capacity from Maxis,” added Dato’ Wei.


Maxis noted that it has invested RM3.7 billion in capex in the past three years resulting in 95% 2G and 81% high speed 3G coverage of the population. Maxis now has 3,400 of its 5,200 3G sites enabled with 42Mbps capability, and has also built the capability for efficient LTE rollout.


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