Maxis and REDtone Share Infrastructure to Provide 4G Services in Malaysia

Maxis and REDtone Share Infrastructure to Provide 4G Services in Malaysia

Maxis and REDtone International Bhd, a data and broadband service provider, have recently entered into an infrastructure and spectrum sharing agreement that will enable both companies to roll out ultra-high speed 4G networks throughout the country in a shorter amount time. What this means is that customers will be able to access the highest 4G broadband speeds in the country – up to 150Mbps, with the latest 4G LTE technology through the combined spectrum.

Both companies are looking to launch their 4G LTE services early 2013 in selected areas of the Klang Valley, with other regions to follow closely thereafter. Also with the newly signed agreement, Maxis and REDtone customers will be able to enjoy twice the broadband speeds of other 4G services whilst at the same time both companies will be able to achieve significant cost-savings through network sharing.

“We have been at the forefront of promoting networks to be shared as we have recently commissioned active network sharing on 3G with U Mobile. Data networks are onerous and have to be built carefully. The demand for data is not disputed, but the inflection point is some time away. Sharing will get REDtone up and running quickly and also fetch adequate returns on our investments, besides conserving spends at a national industry level. We are looking to set a new benchmark in data service quality as this will help us design a more effective infrastructure,” said Sandip Das, Maxis' Chief Executive Officer.

This infrastructure partnership between Maxis and REDtone responds to the Government's call for telcos to reduce duplication of network assets, enabling operators to deliver better services. This collaboration will also accelerate broadband penetration in the country, paving the way towards achieving the nation's National Broadband Initiative aspirations besides enhancing digital lifestyles and the content industry. Infrastructure sharing also helps to reduce capex outflow from the country and maximizes usage of spectrum, a scarce and valuable resource.

“The network sharing and alliance agreement with Maxis is a significant development for REDtone as we build on our broadband business. It will help to address REDtone’s rollout obligation to cover 50% of the country’s population. For REDtone to comply with the 50% rollout requirement, our capex would have been RM390 million as is stated in our detailed business plan (DBP). However, this has been mostly replaced by riding on Maxis’ existing infrastructure and leasing the necessary capacity from Maxis,” said REDtone Managing Director Dato’ Wei Chuan Beng.

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