Axiata taps Tata Comm for regional IP network

Malaysia's Axiata has contracted Tata Communications to build and operate its regional IP network.

 

The network, which will carry voice and mobile traffic from Axiata affiliates in four countries, will be built on Tata Comms’ Tier-1 IP backbone and its IPX network.

 

The network would offer lower latency and better service support for web browsing, downloads, and other apps, Tata Comms said.

 

The two-year deal covers local Malaysian unit Celcom Axiata, Dialog Telecom in Sri Lanka, XL Axiata in Indonesia and MobileOne in Singapore.

 

“This significant partnership represents the start of a long-term relationship that will benefit businesses and consumers in Asia,” Tata Comm president of carrier solutions Byron Clatterbuck said.

 

The network is being built to address the soaring growth in mobile traffic in the region, which according to Admob metrics has increased sixfold in the past two years.

 

Axiata shares on the Kuala Lumpur exchange grew 0.45% yesterday to $4.47. The operator reported a 9.5% increase in profit for the second quarter to 576.8 million ringitt ($183.3m).

 

Financial terms were not disclosed.