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3G fall-out: Jaring to acquire Time dotcom?

UPDATED VERSION. Unknowingly, Reuters picked up a new spin, quoting anonymous sources as saying the Jaring-Time merger is not a matter of when.

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It's a known fact that the Government had, at one point, been trying to decouple ISP Jaring from Mimos and merge it with Time dotcom, as both are government-linked companies offering multimedia services to the downstream users. Talk to Minister Dr Lim Keng Yaik on this and his eyes still sparkle.

But the news had been on-and-off, hot-and-cold, for the past two years or so. Jaring has still not separated from Mimos, while Time dotcom found itself dog-gone on mobile telephony business by having to sell off 017 network to Maxis.

I hope this time B.K. Sidhu had got it right when she reports, quoting vague sources, that Jaring is to buy over Time dotCom assets for about RM500mil to create another broadband giant.

The chips on the table include Time dotcom's extensive fibre optic network in the country, plus submarine cables that are virtually under-utilised. And the 3G license that Time dotcom obtained in an eyebrow raising manner.

Would Khazanah, the de facto controlling stakeholder of Time dotcom, make a counter proposal to buy over Jaring as words has it that DiGi is not interested in "renting" the two new 3G licensees' spectrum?

Whichever way, textbook theorists would be quick to testify that there are synergies in the merger, if ever it happens. Jaring will get a strong and wide fibre optic backbone network, which it is renting for the cliched Super Jaring now, and Time dotcom will find a meaningful partner to deploy 3G and broadband services. That's the sing-along we have been hearing in the past fews years.

Having keener competition in the market is not a bad thing for end-users. Mobile telephony has proven that.

But does Time dotcom, which has been bleeding consecutively in the past three quarters, have the money to buy Jaring? Does it have the expertise to run the business now its better human resources have defected to other operators?

All that, only time will tell.

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Comments

nor wonder the G said only have three 3G licenses but now role out four...

is jaring set up the wireless internet services for this purpose?! is jaring using the 3G spectrum already for it wireless internet services?!

No need to buy. just merge.Only problem, some management staff will have to go. That is always the stumbling block. Compensation will be in the 7 figure region for the CEO, minimum.

There is an industry rumour going around. Remember last year, Temasek bought 5% of TM? Then TM bought a lot of M1 shares? Well, Temasek has now sold all the shares in TM. So that leaves a Malaysia telco with a substantial ownership of a Singaporean telco.

So there is another suitor for Time present. And there is no Dr M to prevent the Singaporeans from aquiring Time, especially when we Malaysians own part of M1.

In any sense, the money will not fall to me, so as a consumer, i'll more interested on the service improvement and pricing instead of worrying the acquire or merge.

Like Whatsoever rightly said, I don't know jackshit about 3G or OG and I don't care how are they going to merge or to play other fellow out as we already know anything is possible in the land of "boleh". End of the day, we want a realiable service and don't want to get screwed over and over again.

lol...this could be the plan from the start, that's why the 3G licence is being given to TTDotCom and MiTV.

they knew about this merger between TTDotCom and Jaring. And MiTV, being owned by the former owner of DiGi, they thought the two can work together. Lol.

now MiTV is without any strong back up to run 3G. All the best.

Looking back at history, Digi was started as Mutiara Telecom, then Mutiara Swisscom and subsequently Digi Telecom. Of these 3 phases of Digi’s life, I think the one that had impacted and benefited most to the general Malaysia public was the one when Telenor came in as majority share holder and made Digi as it is today. I think Digi as a Telenor company is an extremely good and well run company. This can be seen from their innovation in term of driving down the call rates, new services, products marketing, channel management, etc. These I think they had done consistently, constantly and often outpaced the others celcos. Without a doubt, I think Digi had done its role effectively, especially in keeping the other celcos on their toes and most importantly forcing the other celcos to stay honest and run their company efficiently.

As I remember, there is no such scandal in Digi like spending of hundreds of million of RM for non existence telecommunication towers or spending many US millions to buy “rusty” Russian satellite in mid 1990s!! As for one other celco which had been absorbed into Maxis, well, I think they were also been given chances and opportunities. Unfortunately the best that they could produce was to make many many millions of NETT losses in their years of existence and treat the company like a football involving changes of ownership as well as brand names from MRTel, ADAM and then to what not.

On the wholesale side of business, this may not be a well known fact as it is only known to those involved:- Digi had also been pretty innovative and supportive to other smaller communication ASP or discounted call service providers all these years. This had allowed these ASPs to get involved in this new area of business and indirectly also helped to drive down the long distance calls rates and benefited the Malaysian public in general greatly. As for the other Tier 1 telcos or celcos, I think they do not quite like these mosquito size ASPs that come in to disturb the market and chipping away their piece of pies.

In all, I think Digi – Telenor had introduced to Malaysia telecommunication industry a new level of integrity, honest work and corporate culture. And this had produced good financial results as well as new low rates that are benefiting the consumers in Malaysia. I suppose this sort of high integrity and honest culture are reflecting the long tradition of a liberal democratic socialist country in a far away Scandinavian place called Norway.

If one google around or drill down a bit further, I think one will find one consistent fact:- Norway is famous not only for the various Nobel Prizes, notably the Nobel Prize, it is also such a respected and successful international peace maker. The Oslo Accord and peace processes are still continuously helping to resolve conflicts in countries like South Africa, Northern Ireland, Middle East, Sri Lanka, Aceh, etc. I think their ability to make peace for multiple warring parties as well as to maintain peace was due to the same key success factor that Digi-Telenor possesses, i.e. high degree of integrity and honestly in their dealings. In my opinion, this key success factor had made Digi as it is today that had benefited the stake holders (i.e. both owners and Govt’s tax revenues) as well as their customers alike.

As for the other “rent-seeker” who managed to get the license, well, I agree to that telco guy’s comment :- “Good luck to you….” as this particular tycoon needs more than just luck to be successful. In this age of fast pace products and technical changes, I think ONLY high degree of integrity and transparency will make all the rapid advancement in ICT technologies to benefit all of us Malaysians and also to make real money profits for the high financiers.

I think the tycoon if he is a wise person should know that profits are not made by merely holding or having a licence. That age of strong “regulation” should have been long gone in Malaysia as it is so in other developed countries. If the tycoon is a serious player, he should have known that in many developed countries, foreign telecommunication companies are most welcome to set up shops freely and even to buy up or own the “national” telecommunication company. As market performance results clearly show that there is absolute no benefits or “national interest” to continue owing or allow monopoly in the telecommunication spaces as it benefits no one. This is I suppose is the same reason that there is rarely a single nation in this planet that practices monopoly or strong regulation in the IT, PC or mobile as well as handset industries.

May be a bit of diversion here :- Of late, there was an apparent attempt to make AP mandatory to import mobile handsets into Malaysia. Not difficult to see, this is again the act of those traditional “rent seekers” who would just want to continue to maintain their “lifestyle”, i.e. to have a “free ride” on the general Malaysian public without lifting a finger. I wonder how one can get rid of these annoying “rent seekers”…

Over to you guys, sorry if I am a bit long winded here.

Can't agree more with Chong318! Having work with all the telecoms companies since the 80s, the ones that really made a difference were Maxis in its infancy stage and Digi - when the foreigner had management control. Swisscom was a fantastic partner BUT they didnt have control and had to bow to politics too many frequently. As for the rest of the GLCs, the financial results tell best. Whenever meritocracy is practised, the organisation will succeed.

Watch out for Digi's new corporate HQ, it'll definitely set the standards of what a 21st century corporate office should be. Hint - no multi-million $$ paintings and fanciful cups and saucers but IT stuff in abundance!

services definately realiable as long as u pay...

hmmm... just wonder what will happen without the cheap service provider... 1 bux for a 3G call now... will it be 3 buxz later since no one is competed with the 2 giants...

still... i wonder how the 2 'winners' are going to get the business going. the cash cow is actually the 2G biznes - i don't think 3G is making $$ for the current telcos (correct me if i'm wrong).

mitv & time will hv a hard time getting subscribers, considering they got the spectrum, build the network in some cities, with poor coverage and no 2G, whats ther to sell?

who would buy a 3G phone to hv internet broadband wit Time/Jaring? thers streamyx and whole lot of free wifi around. how to compete?

mitv's case is the same.. for me, making calls, sms & mms (occasionally) would be good enough for, nx few years.

i wonder whats next.. 014, 015 for the two winners?

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