Telcos need to consolidate more so than ever, with the recent budget calibration- the government will seek to optimise revenue through a redistribution and a bidding process which will be implemented soon. Stocks of Maxis, Celcom and Digi were all seen affected by this piece of news!
Announcing as a landmark agreement, Celcom Axiata, TM and P1 Networks (which all belong to the Axiata Group) have signed 3 agreements to maximise their existing infrastructure collectively, they being TM Next-Gen Backhaul, High Speed Broadband and domestic roaming services. Out of which Celcom and TM inked an infrastructure collaborative deal to extend their existing partnership for the next phase of backhaul services provision. The mobile operator also signed an agreement for domestic roaming service provision with P1.
The majority of the fibre backbone in the country belongs to TM, with the exchange of fixed broadband service to Celcom and in return TM being extended to provide mobile domestic roaming services from the telco, the group can now interplay on their strengths and reach out to their customers with a more comprehensive layered product. Maxis and Digi though great at marketing, will soon feel the heat on this tripartite.
P1 Master Stroke
P1 is currently being developed as the mobile arm and mobility centre of excellence within TM Group, whilst managing TM’s LTE network and planning for its future growth. This strategic collaboration will further strengthen P1’s readiness to launch its mobile services this year. The company bought from Green Packet has yet to make any headway in the market, but with the agreement now in place P1 will be the biggest beneficiary gaining access to the countries widest and extensive fixed and mobile network minus the capital expenditure. Which in theory should mean cheaper products.
With domestic roaming, customers will be able to tap onto Celcom’s network while still retaining their number and service enjoyed over at P1. Early patiently holding on subscribers, will also get the best of both worlds.
“We are aware of the fact that the challenge for service providers today, where more competitors are emerging into the market. Although Celcom is leading the wireless market today, we want to continuously to be the provider of choice. With a robust backhaul and resilient network, we are confident that we are able to attract the prudent customers today” Commenting about Celcom’s entry into converged market, Dato’ Sri Shazalli said, “It is a part of our ongoing commitment to the customers in providing value and better experience.
P1 is due to launch its mobile services in the first half of 2016m and convergence is being the key word being bandied around.
As consumers we can expect to see competition intensifying as operators continue to push for acquisition, with maximum penetration, new customers can only be acquired from competitors.The fight has turned to 3 against one now, with the trio taking on Maxis and Digi one at a time in the ring, looks unfair for now. Watch this space.
