Telecommunication Issue #5

TIME dotCom sells payphone subsidiary

Malaysia’s Business Times is reporting that TIME dotCom (TIME) is to sell its payphone subsidiary TIME Reach, divesting its stake to local pre-paid fixed line telco Paycomm for MYR8.3 million (USD2.29 million). The sale is expected to be completed by the end of February 2009. The move comes as TIME looks to focus on its more profitable operations, which include subsidiaries TT dotCom, which offers voice, data and video communications, and TIME dotNet, which offers internet services. TIME’s chief executive officer, Afzal Abdul Rahim, commented, ‘We are highly committed and are in the midst of identifying several recovery programmes with an objective of returning TIME to profitability in the long term. TIME Reach will be the only asset divestment made by TIME in the near future and recovery of the group will mainly focus on strengthening our operational capabilities, improving competitiveness as well as cost management.’

P1 WiMAX launches in Johor

Packet One Networks (P1) has announced that its WiMAX-based broadband services have been launched in the Johor region, its first region of operation outside of the Klang Valley state, the Star Online is reporting. P1 chief executive offer Michael Lai has also reiterated plans for the operator’s rollout of WiMAX services, stating, ‘P1 will expand the coverage of P1 WiMAX to Skudai, Batu Pahat, Muar, Segamat and Kluang by the end of 2009 and Yong Peng in 2010. P1 expects to cover at least 70% of the population in Johor Baru by the end of next year and 30% of the Malaysian population by mid-2009.’ According to TeleGeography’s GlobalComms database, P1 launched its WiMAX network using the 2.3GHz band in August 2008 in the Klang Valley, and the company expects to have 600 base stations in operation by the end of 2008.

Qtel agrees to up Indosat offer price, reports say

Qatar Telecom (Qtel) has reportedly agreed to increase its offer price to raise its ownership in Indosat. Reuters writes that Indonesia's capital market regulator reported Qtel’s decision on Friday, pushing shares in the mobile phone firm up 20%. Qtel is holding a tender offer to acquire more Indosat shares and is hoping to increase its stake to the maximum limit allowed under local law, 65%, after it bought a stake from Singapore Technology Telemedia for USD1.35 billion in June, which increased its ownership to 40.8% from around 10%.