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Maxis share its 3G network with U Mobile

Maxis Broadband Sdn Bhd (Maxis) and U Mobile Sdn Bhd (U Mobile) have entered into a multi-billion ringgit agreement to share Maxis’ 3G radio access networks (RAN) with U Mobile. The agreement will be for an initial period of 10 years.

(From L to R– Mark Dioguardi, CTO Maxis Berhad, Sandip Das, CEO of Maxis Berhad,Dr.Kaizad Heerjee, CEO of U Mobile & Too Tian Jen, CTO, U Mobile.)

Basically, via the agreement, selected Maxis base station will start using U Mobile’s 3G frequency. This allows U Mobile to offer 3G coverage for voice and data to its customers via Maxis radio network. To make the network sharing possible, Maxis is using Multi-Operator Core Network MOCN for 3G/LTE which is standardized by 3GPP.

The network sharing will exclude urban market centers, such as Klang Valley, Penang, Johor Bahru and Ipoh, where U Mobile requires high bandwidth for high speed mobile broadband services.

The agreement also allows LTE sharing when the spectrum becomes available.

In a statement, Chief Executive Officer of Maxis, Sandip Das, said: “Active sharing results in greater cost savings which in turn translates to increased direct revenue for both companies.”

“As a strong advocate of network-sharing, this will add to our existing carbon footprint reduction initiatives. To date, over 54% of our base stations sites are shared with other operators. This partnership will also accelerate broadband penetration in the country, paving the way towards achieving Digital Malaysia aspirations.” he added.

CEO of U Mobile, Dr. Kaizad added that “This mutually beneficial partnership with Maxis will accelerate the expansion of our current 3G footprint to more than 4,000 3G sites in Malaysia by early-2013.”

According to both Telcos, the RAN partnership also responds to the Government’s call for telcos to reduce duplication of network assets, enabling operators to deliver better services. In addition, this pact promotes increased competition at the service level rather than at the infrastructure level.

As a result of the collaboration, Maxis will receive a significant new source of revenue and will enhance utilization of its network in areas that are currently underutilized.

The value of the deal was not disclosed.

About Kugan

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