Axiata, Celcom sign network sharing MoU

Nicole McCormick
11 Jun 2010

Malaysian operators Celcom Axiata and Digi have signed an active network sharing Memorandum of Understanding (MoU).

The agreement between the market’s second and third biggest operators covers operations and maintenance, transmission and site sharing, and radio access network.

“Right now, there is passive sharing, especially in terms of tower sharing,” Celcom CEO Datuk Seri Shazalli Ramly toldBusiness Times.

“More than 60% of our towers are shared with other operators. But the collaboration with Digi will take it a step further into active [network] sharing," he said.

The pair hopes the proposed active sharing model will generate “significant operational and cost efficiencies” by removing duplication of base stations and cutting rents, utility bills and transmission costs.

The pact also aims to optimize deployment of base stations and redeploy equipment between redundant and new sites.

A definitive agreement is expected to be reached before the end of 2010.

A firm deal could make Malaysia one of the region’s most progressive network sharing countries.

Malaysian operators have been discussing ways to prop up ebitda in the wake of the global financial crisis, including trimming opex costs through network sharing.

In Bangladesh, sister firms Axiata Bangladesh and Telenor-owned Grameenphone agreed to share network resources in February.

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