KUALA LUMPUR (JULY 13): Maxis Bhd and RedTone International Bhd have inked an infrastructure and spectrum sharing agreement today that will enable both players to fast track their roll out of ultra-high speed 4G networks throughout the country.
In a joint statement Friday, the companies said this would mean customers will have the opportunity to access the highest 4G broadband speeds in the country - up to 150 Mbps, with the latest 4G LTE technology through the combined spectrum.
Both Maxis and REDtone are looking to launch their 4G LTE services early next year in selected areas of the Klang Valley, with other regions to follow closely thereafter, they said.
Maxis chief executive officer Sandip Das said the company had been at the forefront of promoting networks to be shared as it 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,” he said.
This newly signed agreement will provide benefits to both Maxis and REDtone customers as it enables twice the broadband speeds of other 4G services whilst at the same time achieving significant cost-savings through network sharing, he said.
Meanwhile, RedTone managing director Datuk Wei Chuan Beng said the network sharing and alliance agreement with Maxis was 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,” he said.
Wei said that for RedTone to comply with the 50% rollout requirement, its capex would have been RM390 million as is stated in its detailed business plan (DBP).
“However, this has been mostly replaced by riding on Maxis’ existing infrastructure and leasing the necessary capacity from Maxis,” said Wei.
Wei said RedTone was 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,” said Wei.
Maxis said that as the biggest network investor in the country, it had invested RM3.7 billion in capex in the past three years resulting in 95% 2G and 81% high speed 3G coverage of the population.
“Maxis now has 3,400 of its 5,200 3G sites enabled with 42Mbps capability, and has also built the capability for efficient LTE rollout,” it said.