Digi continues 5G rollout
Telco to collaborate in facing challenges in telecoms sector
SUBANG: Digi.com Bhd will continue to collaborate within the telecommunications ecosystem to address challenges or opportunities within the industry, particularly in the rollout of 5G network in Malaysia.
This is despite the termination of Telenor ASA and Axiata Group Bhd’s proposed merger.
Digi & Telenor senior vice-president and chairman of the board Hakon Bruaset Kjøl noted that while Telenor continues to believe in the strategic rationale behind the proposed merger, both parties were unable to conclude discussions.
“Pertaining to discussions about the merger, I think we have said what we need to say.
“But having said that, this does not stop Digi’s efforts in ensuring that we are working with the ecosystem (players) and are collaborating within the industry,” he said on the sidelines of the Small Business, Big Impact: Sustainability as a Key Business Driver forum held in conjunction with the group’s Sustainability Day.
Meanwhile, Axiata continues to pursue mergers as a key strategy, potentially for its Indonesian and Malaysian operations over the next three to five years.
In a Bloomberg report, Axiata CEO Tan Sri Jamaludin Ibrahim was quoted as saying, “Consolidation is key to future-proof us in the medium term given the challenges in the industry,” and that “the cancellation of the merger does not deter us from looking at other possibilities”.
Axiata has received offers for its Us$3bil tower unit edotco Group Sdn Bhd and will explore all options for edotco, which entails the revival of a listing plan.
Jamaludin said a decision on edotco would be made by year-end.
Apart from edotco, Axiata has been informally approached by several investors for its other assets.
Earlier this month, both Axiata and Telenor mutually ended talks to merge their Asian telecommunications assets and infrastructure, which would have created a new company with 300 million customers across nine markets, citing “complexities” as reasons for the termination of the proposed merger.
On May 6, Axiata announced in a Bursa Malaysia filing that both entities were set to create a new global champion by combining their Asian operations under a new merged global entity.
An agreement was expected to be finalised within the third quarter of this year.
On sustainability, Kjøl said large organisations could help build competencies in small and medium enterprises (SMES) through supply chain and technical areas.
“Organisations should not approach it in a compliance mindset, but take it as a competency development mindset and see how they can lift all players within the sector.
“Consider sustainability a journey and include this as part of your goal strategy and mindset more than just a business practice.
“You might be surprised at how suppliers down the line will search for companies that have similar sustainability standards to work with,” he elaborated.