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Superior 4G LTE for Malaysians: Maxis, REDtone

AvantiKumar | July 20, 2012
Collaboration between Maxis and REDtone on shared infrastructure in Malaysia.

Maxis Redtone signing in Malaysia

PHOTO - (From left) Mark Dioguardi, joint chief operating officer, Maxis;  YM Raja Tan Sri Arshad Bin Raja Tun Uda, chairman, Maxis; and  Dato' Wei Chuan Beng, managing director, REDtone International at the signing of the Infrastructure Sharing Agreement between Maxis and REDtone International.

Superior 4G LTE (long term evolution) wireless services will be made available to Malaysians as a result of a new partnership between two local firms- telco Maxis and broadband service provider REDtone.

Under the infrastructure sharing agreement signed on 13 July 2012, the combined spectrum will allow the fastest 4G broadband speeds in Malaysia of up to 150Mpbs (Megabits per second), said representatives from both firms. Maxis and REDtone expect to launch their 4G LTE services early next year in selected areas of the Klang Valley, with other regions to follow.

Maxis chief executive officer Sandip Das said the infrastructure sharing partnership was also a response to the Malaysian government's call for telcos to reduce duplication of network assets as well as accelerate brooadband penetration in the country.

"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," said Das. "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."

"The network sharing and alliance agreement with Maxis is a significant development for REDtone as we build on our broadband business," said REDtone managing director, Dato' Wei Chuan Beng. "It will help to address REDtone's rollout obligation to cover 50 percent of the country's population."

"For REDtone to comply with the 50 percent rollout requirement, our capex would have been RM390 million [US$122.49 million] as is stated in our detailed business plan [DBP]," said Wei. "However, this has been mostly replaced by riding on Maxis' existing infrastructure and leasing the necessary capacity from Maxis."

REDtone is expected to launch its mobile broadband services and products riding on the shared network in 2013. This will provide an additional source of revenue to the group.


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