Today Axiata finally announces that they will merge with Telenor Asian operations to create a new global champion that will be based in Malaysia. As for now, the merging process is still in the baby stage where discussion between these two entity is happening as we speak.
Digi has seen a drastic fall of prepaid users have either switch to a different service provider or they have terminated their mobile number. More than 400,000 Digi subscribers have found their exit door from Digi within the month of January, February, and March. By combining both Axiata and Telenor operations, network quality could be improved tremendously throughout Malaysia.
Once the merging is completed, it will create a true Malaysian Champion which soon it will be the largest telco service provider in Malaysia. Malaysia is already working on the upcoming 5G network technology. The merging of Celcom and Digi will create a vast opportunity to establish the largest Innovation Centre in the region. This covers both IoT and 5G.
In conclusion, after the merging Telenor will be the majority shareholder of 56.5%, whereas Axiata will have 43.5%. What do you think about this merging? We hope they don’t increase the monthly price. From the announcement, both these companies have agreed to work together towards a binding agreement before the end of Q3 this year.
