CELCOM CEO: NEED FOR CONSOLIDATION AMONG TELCOS
Greater need for consolidation, not new entrant, says Kuehner
CELCOM Axiata Bhd believes there is a greater need for consolidation among the country’s telco players rather than having new ones in the market.
Chief executive officer (CEO) Michael Kuehner, in responding to a news report of a new service provider coming into the market by month-end, said it could not accommodate new entrants.
“If you look at the typical number of telcos in the market of this size, there is a need for consolidation more than new entrant, and this is what the people are talking about and waiting for,” he said after a collaboration announcement by Celcom and Malaysia Airlines Bhd (MAB), here, yesterday.
It was earlier reported Yoodo would enter the market as early as January 30 and it would focus on customisation. This could be similar to the space tapped by Digi.Com Bhd, which allowed consumers to design their own plans.
Kuehner also said rumours of a re-merger of parent company Axiata Group Bhd and Telekom Malaysia Bhd (TM) would make sense to Celcom as there would be a lot of synergies for both parties if it were to happen.
“The re-merger would make sense obviously for a couple of reasons — scale, specifically in the delivery part, which is the network, as we both run extremely big assets that need to be maintained, and fixed mobile convergence, which is now the trend worldwide.
“TM is very strong in the fixedline business and we are on the mobile side. So yes, the re-merger, if it were to happen, would make a lot of sense,” he said.
However, Kuehner said the merger would depend on shareholders, adding that Celcom had not received any notification to date.
The comment comes on the heels of Khazanah Nasional Bhd’s managing director Tan Sri Azman Mokhtar’s comment that the major shareholder of TM and Axiata was open to a re-merger.
Meanwhile, Celcom and MAB yesterday signed a memorandum of understanding on a strategic partnership to provide benefits across multiple areas.
The long-term joint venture will include Enrich rewards and special offers in the coming months.
The benefits include easier ways to earn and spend Enrich miles, flight discounts for all Celcom customers and attractive roaming plans.