Telekom Malaysia Berhad (TM) announced the completion of the Investment Agreement for its partnership with Green Packet Berhad (Green Packet) and SK Telecom Co., Ltd (SK Telecom) for the three parties to share in the ownership and collaborate in the future growth of Packet One Networks (Malaysia) Sdn Bhd (P1), a WiMAX Internet provider in Malaysia.
The agreement was first signed in March this year. TM said that the applicable approvals, including from the relevant regulatory bodies and Green Packet shareholders have been duly obtained.
Following the completion, TM emerges as the new holding company for P1 with a shareholding of 55.3%; and the remaining 44.7% is shared between Green Packet (31.1%) and SK Telecom (13.6%).
TM said the partnership essentially enables P1 to crossover to LTE and offer full mobility while providing TM with an LTE-ready platform to accelerate and more efficiently make wireless broadband products available to its customers. This includes access to suitable spectrum bands, the ability to draw on advanced technological know how of SK Telecom, an existing customer base to build on, and the strong base of LTE upgradeable WiMAX sites to quickly achieve extensive LTE coverage.
Its investment into P1 and the recent launch of its first 4G broadband offering, TMgo are part of TM’s roadmap towards becoming the No. 1 “converged communications service provider”.
The partners, together with P1, are currently developing a joint business plan and strategies for the realisation of partnership synergies. At the same time, the partners are conducting an operational review to further optimise operations for P1’s future business. Product development and commercial plans are also under discussion.
At the moment, there are no management changes in P1, however TM said that P1’s new board and management line-up will be announced in due course. TM will play an active role in the management and direction of P1 through its representation at the board level. As the holding company, TM also has nomination rights for key management positions.