Home / Mobile Operators / Celcom Axiata / TM & Celcom Axiata signs MoU

TM & Celcom Axiata signs MoU

Telekeom Malaysia(TM) & Celcom Axiata have signed a MoU to provide complete fixed and mobile convergence solutions.

(Group CEO of TM and CEO of Celcom Axiata signing the MoU, witnessed by Deputy Minister of Information, Communications and Culture, Dato’ Joseph Salang)

Part of the agreement include:

  • High speed broadband (HSBB) services comprising HSBB (access), HSBB (transmission) and internet connectivity services for Celcom Axiata
  • Digital subscriber line access (DSL) services for Celcom
  • Fiber network system via wholesale long term lease for Celcom network; and
  • Mobile virtual network operators(MVNO) services to TM

Press Release from TM below.

Celcom Axiata Berhad (“Celcom”) and Telekom Malaysia Berhad (“TM”) today signed a Memorandum of Understanding (MoU) towards delivering multi-access, multi-media, fixed and mobile convergence services to Malaysian consumers.

The MoU was signed in the presence of Deputy Minister of Information, Communications and Culture, Y.B. Dato’ Joseph Salang. Signing on behalf of their respective companies were Dato’ Sri Shazalli Ramly, Chief Executive Officer of Celcom and Dato’ Sri Zamzamzairani Mohd Isa, Group Chief Executive Officer of TM.

The MoU, which is unprecedented in scope, encompasses several areas of collaboration, specifically High Speed Broadband (HSBB) Services comprising HSBB (Access) and HSBB (Transmission); Wholesale Internet Access (WIA), Digital Subscriber Line (DSL) access, Fiber Network System via Wholesale Long Term lease and Mobile Virtual Network Operator (MVNO) services.

“In this day and age of multiple screens, be it phones, tablets or TVs, consumers are now being entertained and are interacting with each other in a multitude of ways. The old paradigm of fixed versus mobile access is becoming increasingly irrelevant due to consumer behaviour,” said Dato’ Sri Shazalli.

He added further, “All that matters moving forward is giving consumers what they want, in the best possible format, on any device, whenever and wherever they may be. We are extremely excited to be working with TM to make this convergent future a reality, not just for Celcom but for TM as well and ultimately for all Malaysians.”

The HSBB service collaboration will allow Celcom to provide its own fibre-based fixed broadband service to millions of homes and offices, while enabling future IPTV, VoD and other rich multimedia services. For areas not currently covered by HSBB, Celcom will be able to utilize TM’s Digital Subscriber Line access service to offer Celcom’s own DSL service to complement Celcom’s widest 3G/HSDPA mobile broadband coverage.

According to Dato’ Sri Zamzamzairani, this signing reiterates TM’s Public-Private Partnership (PPP) commitment to make HSBB an Open Access Network and encourage all SKMM-licensed access seekers and value-added service providers to become TM’s
partners.

“We are confident that this collaboration will bring enormous benefits to all end users, as it is in the consumers’ best interest to have a range of options to choose from, based on quality of service, extent of coverage, range of features and the most competitive price. TM sees this from both a Wholesale and Retail perspective. As a leader in fixed broadband, TM will also benefit from a further potential wireless play to enhance our offerings. Towards this end, TM will deliver an even better overall service experience to the customers.”

To support the growing surge in data traffic across Celcom’s mobile network, TM will in turn undertake the fiberisation of all main sites and network aggregation points for Celcom on a long-term 10-year fiber network system lease arrangement. TM will have the opportunity to gain access to Celcom’s cellular network as a Mobile Virtual Network Operator (MVNO) to offer its own branded mobile voice and data services to complement its existing fixed line portfolio.

“Celcom is proactive in encouraging and creating greater competition and innovation in the marketplace through MVNO partnerships. In fact, we remain the only operator in the country that is actively pushing towards this end and our openness will give TM the opportunity to re-enter the vibrant mobile services sphere,” said Dato’ Sri Shazalli.

“TM will continuously support the Government’s initiative to provide ICT accessibility to all. We believe in working together, cooperating with other service providers and complementing each other in bringing the nation closer to achieving the National Broadband Initiative, and the Government’s aspiration to increase the household broadband penetration to 75% by 2015. This is how committed TM is in delivering innovative communications services to enrich the lives of Malaysians, opening up possibilities through connection, communication and collaboration,” said Dato’ Sri Zamzamzairani.

“As the largest infrastructure services provider in the country, it is encouraging for us that fixed infrastructure is increasingly becoming more important in the development of our telecommunications industry. As much as the lifestyle of Malaysian consumers moves towards mobile, the fixed network backbone has the muscle to power this mobility. Through collaborations such as these, the industry is leveraging on TM’s extensive state-of-the-art network assets to give consumers fast, reliable and an enriched communications experience,” he added.

The services collaboration between TM and Celcom represents an innovative two-way partnership that brings together a comprehensive suite of access mediums, encompassing mobile, fiber and DSL which will ultimately enhance customers’ experience and increase stakeholders’ value. Both parties are already in advanced discussions and definitive agreements are expected to be reached within two months of the MoU signing.

About Kugan

Kugan is the founder of MalaysianWireless. He has been observing the mobile industry since 2003. Connect with him on Twitter: @scamboy