Deutsche Telekom AG has expanded its presence in Asia through a strategic alliance in Malaysia.
Deutsche Telekom will buy 21 percent equity interest in Technology Resources Industries Berhad, which operates Malaysia’s largest cellular network, Celcom. The purchase will be in the form of newly issued shares representing 10 percent of TRI’s existing share capital, and existing shares.
TRI is a publicly traded company based in the capital city of Kuala Lumpur. It is an investment holding/telecommunications firm involved in landline telephone, international calling, cellular, microwave, paging, data communications, trunked radio and more.
TRI has been looking for a strategic partner for several years, said equity analyst Richard Read of Amhold & S. Bleichroeder Inc.
Deutsche Telecom said TRI has accomplished several things in recent years to broaden its range of offerings. TRI completed its analog cellular network and installed a system based on Global System for Mobile communications technology. The company also installed a new international switching center and is developing plans to lay a fiber optic long-distance transmission network, as well as a fixed line local network.
TRI could connect its international gateway to the cellular network to allow direct international calling, and that the wireless network also could be used for domestic long-distance service as well, Read noted.
Deutsche Telekom, Germany’s most powerful telecommunications company, hails the alliance as a strategic step that strengthens the Bonn-based company’s move into the Asia-Pacific region.
Deutsche Telekom owns 25 percent of Indonesian wireless operator Satelindo, has holdings in Singapore, as well as activities in New Delhi, Hong Kong, Beijing and Tokyo. The German firm recently announced a memorandum of understanding with China.
