Speculation rises over DiGi-TIME tie-up

3 Oct 2006

There has been renewed speculation that Malaysian operators DiGi Telecommunications and TIME dotcom are considering a merger, with a number of local newspapers claiming there have been ‘high level meetings’ between owners of the two companies. The New Straits Times, citing an unnamed DiGi executive, claims a team from DiGi’s majority shareholder Telenor had visited Malaysia twice this year to meet up with TIME officials. The renewed speculation has been prompted by DiGi’s failure to secure a 3G mobile licence earlier this year, and fuelled by Telenor’s plan to cut its stake in DiGi from 61% to below 49% to comply with rules laid down by Malaysia’s Foreign Investment Committee (FIC). There are also rumours that DiGi’s recently submitted bid for a WiMAX concession is doomed to failure due to the company’s limited rollout plan covering just a few states.

Malaysia, Digi Telecommunications, Telenor Group, TIME dotCom