Axiata has clarified the post-merger role of both Celcom and Digi, giving a glimpse of what we can expect to see the in the next couple of years of the two biggest telecommunication companies in the country.
This stems from the regulator the Malaysian Communication and Multimedia Commission’s insistence on adhering to certain guidelines before the agency gave the green light for the merger to proceed.
In its financial statement to shareholders, Axiata believes that these undertaking listed below will fully address the issues identified by MCMC and ensures that consumers in Malaysia will continue to benefit from effective competition in mobile telecommunications services.
Among the undertaking includes, the divestment of 70 MHz of MergeCo’s spectrum across 1800 MHz, 2100 MHz, and 2600 MHz, the first band to be returned to MCMC within 24 months after completion of the merger and the second and third bands to be returned within 36 months after completion of the merger;
Establishing a separate independent business unit for Mobile Virtual Network Operator (“MVNO”) wholesale business under MergeCo within 6 months after completion of the merger and ensuring continuity of access to wholesale services
for MVNOs at terms no worse off than existing agreements;
Divestment of Celcom’s “Yoodo” brand within the stipulated time after completion of the merger as committed to MCMC, which currently offers fully digital and customisable retail mobile plans to subscribers.
Enabling non-exclusive distributors in the Sabah, Sarawak, Kelantan, Pahang, and Terengganu regions by the end of Year 3 after completion of the merger; and positioning the existing Digi and Celcom brands as products under a single MergeCo corporate brand by the end of Year 2 after completion of the merger.
Upon this, the company will submit its application to Bursa where an EGM is scheduled to take place in November. Axiata also states that the final proposal and the completion of the transaction will be subject to the approval of both the Company and Digi shareholders, regulatory approvals, and other customary terms and conditions.
