TRI and DiGi to Team Up for Next Generation Licence

date: March 14, 2002

Malaysia's Technology Resources Industries (TRI) has agreed to team up with rival DiGi.Com to jointly bid for a 3G mobile technology licence, the company said on Wednesday.

The tie-up between Malaysia's second and third largest mobile phone network operators, with a combined subscriber base of over 3.3 million, may encourage other alliances in the industry in the race to win the prized licence.

State-controlled Telekom Malaysia had already expressed possible interest in acquiring TRI, which is in the middle of a debt restructuring exercise.

Third-ranked DiGi is 61 percent controlled by Norway's telecoms group Telenor ASA , while TRI, whose cellular network operator Celcom is the second largest in the sector, is controlled by tycoon Tajudin Ramli.

"The two parties have agreed to establish GSM National Roaming and facilitate the incorporation of a joint venture company for the submission of a joint 3G bid," TRI said in a statement to the Kuala Lumpur Stock Exchange.

Back in November, Maxis and Technology Resources Industries have both said that they are looking to the 3GVNO model rather than acquire licenses and expand any existing networks. It has been the Malaysian government's intention to force consolidation amongst the five operators in the industry and so it is highly likely they will allow 3GVNOs to exist.

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