3G Spectrum transfer completed
Alliance to leverage on both parties’ key strengths
KUALA LUMPUR, 7 May 2008: TIME dotCom Berhad (TdC) and DiGi.Com Berhad (DiGi) can now execute their joint business plans to strengthen their core businesses with the successful transfer of the 3G Spectrum from TdC to DiGi today. An allotment of 27.5 million new shares to TdC was made as well in consideration for the transfer of the 3G spectrum with all its rights and benefits to DiGi.
This was announced at the official transfer ceremony where Datuk Dr. Halim Shafie, Chairman of the Malaysian Communications and Multimedia Commission handed the Spectrum assignment documents to DiGi Chief Executive Officer, Johan Dennelind. The event was witnessed by the Deputy Secretary General 1 for the Ministry of Energy, Water and Communications, Dr. Mohd Padzil Hashim, who represented the Minister, Yang Berhormat Dato' Shaziman Abu Mansor; and Dato' Wan Muhammad Wan Ibrahim, Chairman of TdC.
As outlined in the Definitive Agreement between both parties on 25 January 2008, TdC and DiGi would leverage on their respective core businesses to fully optimise the existing networks and resources currently owned by both parties.
The 3G Spectrum transfer exercise was also approved by the shareholders of both parties at their respective Extraordinary General Meetings.
For DiGi, the 3G Spectrum offers opportunities to enhance its mobile network capacity and efficiency, and provide a platform for ongoing innovation and development of enhanced mobile and broadband services.
"We have been very successful without 3G in the past; however, we believe the timing is right for DiGi to start the rollout of broadband services to our customers. We are excited that this Spectrum will enable us to contribute actively to the extensive deployment of broadband infrastructure and services in keeping with the aspirations of the National Broadband Plan," said Johan Dennelind.
"We are currently working hard undertaking technical trials and with these approvals, we are targeting to launch 3G services and mobile broadband during the second half of this year," he added.
"I am very happy today because with this transfer, TIME dotCom and DiGi have entered into a service agreement, which sees TIME dotCom, through our subsidiary TT dotCom Sdn Bhd, appointed as DiGi's wholesale partner for a 3-year period, contributing fixed bandwidth businesses worth at least RM12.5 million each year. With the completion of the 3G Spectrum transfer, TIME dotCom stake in DiGi will increase to 10% of the enlarged paid up capital of DiGi," said Dato' Wan Muhamad.
The transfer of the 3G Spectrum to DiGi does not result in TIME dotCom exiting from the 3G market because it will be able to participate via an MVNO arrangement with DiGi once DiGi have rolled out the 3G network. In the meantime, TIME dotCom will focus on enhancing its Next Generation-IP network and Broadband services for the Corporate, Government and Wholesale market segments.
The completion of the 3G Spectrum transfer establishes the foundation for the Alliance between both parties to collaborate on several business areas that can further contribute towards enhancing the nation’s telecommunications needs. Both parties will look into:
DiGi is Malaysia's fastest growing mobile operator driving innovation, simplicity and best value through DiGi Prepaid, DiGi Postpaid and DiGi Business. For more information, please visit: www.digi.com.my
About TIME dotCom Berhad (www.time.com.my)
TIME dotCom as the preferred communications solutions provider offers a complete and comprehensive range of services to both domestic and international markets from voice and data communications to broadband, Internet, global managed services, payphones and various multimedia solutions. Our strong capabilities in providing broadband solutions well position us for a high-speed data world.