Big Bang in Malaysian Telecom: Axiata & Telenor Team Up
In a move that’s putting a new giant on the scene, the Malaysian Communications and Multimedia Commission (MCMC) gave the green light Friday morning to a merger that will merge Axiata Group’s Celcom with Norway’s Telenor ASA’s Filipino‑backed Digi.Com. The two will become the country’s largest mobile operator, a title traditionally held by Maxis.
Why It Matters
- Combined forces bring roughly 19 million subscribers under one brand, setting the stage for a mega‑customer base.
- The deal is projected to generate US$3 billion in revenue and net profit of about US$1.4 billion.
- Both companies will share equal stake – 33.1% each – giving them a balanced say in strategy and growth.
- They’re eyeing 5G rollout, a major thrust in Malaysia’s digital future.
Keeping Competition in Check
The merger isn’t just a handshake; the parties pledged some corporate gymnastics to keep the playing field fair:
- They’ll sell off 70 MHz of spectrum that could otherwise give one side a monopoly advantage.
- Celcom will spin out the Yoodo brand, preserving a competitive edge for that service.
- A dedicated independent unit will manage the wholesale side of their mobile virtual network operators.
- All existing offerings will be unified under a single corporate banner to streamline marketing.
Chasing the Finish Line
The merger should wrap up by the second half of 2022, pending approval from the Securities Commission, Bursa Malaysia, and their shareholders. Digi.Com’s chair, Haakon Bruaset Kjoel, is quick to say it’s a solid step toward a “strong Malaysian company” that can “lead the digital growth” in the years to come.
On the market front, Digi.Com shares bloomed by up to 7.7%, while Axiata’s ticker rose nearly 3%. Every investor’s eye is on the next big chapter in Malaysia’s telecom saga.
