Axiata and Huawei sign global framework agreement

29 Feb 2012

Malaysian telecoms group Axiata has inked a five-year strategic global framework agreement with China’s Huawei Technologies to establish a streamlined procurement platform, telecomlead.com reports. It is claimed that the new platform will help Axiata realise business efficiencies and competitive advantage through cash flow improvement and timely purchasing, as well as better leverage on its volume, resulting in cost savings for the group. The two companies were cited as saying that the extended collaboration would explore innovative solutions in areas of innovation, procurement and financing, with Axiata’s operations in five countries expected to benefit from the development. The framework agreement is expected to create a common platform for Axiata’s subsidiaries in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia to purchase telecommunications infrastructure products, including provision of related works and services, from Huawei.

‘The Axiata-Huawei collaboration will see company-wide improvements in realising business efficiency and a competitive advantage. Furthermore, access to financial facilities towards innovative financing structures and a flexible financing tenure will provide a solid base for long-term growth,’ Axiata president and group CEO Datuk Seri Jamaludin Ibrahim said of the announcement.

The tie-up follows on from an earlier agreement between the two companies. As noted in TeleGeography’s GlobalComms Database, November 2009 saw Axiata reveal that it would form a strategic partnership with Huawei for the development of new technology. The two-year memorandum of understanding was also expected to see Huawei streamline Axiata’s equipment procurement. At the time of that earlier deal Axiata said that it represented ‘a strategic partnership with Huawei … in areas to improve Axiata’s revenue stream in the longer term … while reducing costs for the Axiata Group through significant savings in terms of capital and operating expenditures.’