Home Mobile Network Operators Celcom Axiata Celcom buys 49% of Tune Talk (Update 1)

Celcom buys 49% of Tune Talk (Update 1)

Last month, Celcom (M) Bhd, a subsidiary of TM International Bhd (TMI) made the surprising announcement that it will subscribe to 2.625 million shares of Tune Talk Sdn Bhd, a mobile virtual network operator (MVNO) in Malaysia.

In a statement to Bursa Malaysia, TMI said that Celcom has the option to buy another 16 per cent of Tune Talk, three years after the launch of its business or after it has 1.5 million active subscribers, whichever is earlier.

The RM2.62 million investment made by Celcom will “not likely to be a major threat to incumbent operators” according to research firm OSK Research Sdn Bhd in an article published by the Business Times.

Branding itself as a “No Frills” service, Tune Talk said that it will offer basic prepaid voice and short message service packages to consumers when it was first announced. Of course, being an MVNO, Tune Talk needs to buy wholesale “minutes” from Celcom before it can repackage those “minutes” and offer it to the market under the Tune Talk brand.

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