DiGi inks MVNO agreement with Baraka Telecom

Malaysian cellco DiGi Telecommunications has inked a mobile virtual network operator (MVNO) agreement with Baraka Telecom, the Business Times reports. Under the deal DiGi will allow Baraka to provide voice and data services over its GSM network nationwide, and it is understood that the contract also includes an option allowing Baraka to expand the scope of agreement in the future; it is expected that the inclusion of 3G services could be allowed.

The initial deal will last for three years from Baraka’s commercial launch, and could be renewed for a further two years subject to the two companies agreeing on certain terms and conditions.

Baraka is a private limited company incorporated in Malaysia on 3 April 2008 with an authorised and paid-up share capital of MY10 million; it is majority owned by foreign individuals from the Middle East.

-By Telegeography CommsUpdate (http://www.telegeography.com)

Sumitomo Japan Injects RM30 Million In Merchantrade

KUALA LUMPUR, Feb 19 (Bernama) -- Sumitomo Corporation, Japan, has invested RM30 million (750 million Yen) in Merchantrade Asia Sdn Bhd, a Malaysia incorporated company, engaged in prepaid mobile and remittance services.

Sumitomo will contribute to the company by supporting its deployment of new services like integrated service and marketing expansion as well as enhancing its corporate governance, it said in a statement.

As the first Mobile Virtual Network Operator, Merchantrade capitalises on mobile network infrastructure facilities owned by Celcom (Malaysia) Bhd.

The strength of the company is its unique business model, providing both mobile and remittance services which serve foreign workers' basic needs.

As at January, Merchantrade has over 94,000 active subscribers.

The company is currently studying market acceptance to launch mobile remittance in the country.

Sumitomo is in the telecommunications and information technology business such as mobile communication, mobile content, wireless broadband service and fixed-line communication.

Source: BERNAMA (http://www.bernama.com/bernama/v5/newsbusiness.php?id=390923)

'TMI-TuneTalk deal no threat to other MVNOs'

OSK Research expects Celcom and Tune Talk to leverage on the strong paternal links with AirAsia and Tune Hotels to aggressively market Tune Talk products and services



TM INTERNATIONAL Bhd's (TMI) (6888) investment in a local mobile virtual network operator (MVNO) is unlikely to pose a major threat to incumbent operators, a research firm says.

OSK Research Sdn Bhd said the RM2.6 million investment in Tune Talk Sdn Bhd via wholly-owned Celcom (M) Bhd, announced on Tuesday, follows TMI's earlier alliances with two other MVNOs, namely Merchantrade and Redtone, and U Mobile, a hybrid mobile network operator (MNO).

"Overall, we are neutral on the (TMI's Tune Talk) investment given that MVNOs have very patchy track record overseas and are not likely to be a major threat to incumbent operators," the firm said in a note yesterday.

The investment by Celcom confirmed market talks months ago.Tune Talk, it noted, was slated to launch commercial service in the second quarter 2008, but the launch was postponed pending the award of a Network Services Provider (NSP) licence from the Malaysian Communications and Multimedia Commission.

OSK Research said once it is launched, Tune Talk will raise competition by a notch, putting further pressure on operators' margins, which are already crimped with the introduction of MNP in October.

It expects Celcom and Tune Talk to leverage on the strong paternal links with AirAsia and Tune Hotels to aggressively market Tune Talk products and services with substantial cross-selling potential for the foreign travellers and workers market (via Merchantrade).

"We expect Tune Talk to target the no-frills or low-cost subscribers with a basic voice and SMS product.

"OSK Research added that since it would likely purchase wholesale minutes from Celcom at a slightly higher price, Tune Talk would not be able to price its tariff as competitively as the incumbent operators.

The firm maintains its "neutral" call on TMI, with a target price of RM4.20.

- By Zuraimi Abdullah (Business Times)