PETALING JAYA: Maxis Bhd and U Mobile Sdn Bhd have extended their 3G radio access network (RAN) share agreement in limited areas until end of June 2019.
In a filing with Bursa Malaysia, Maxis said its wholly owned subsidiary Maxis Broadband Sdn Bhd had entered into a 3G Network Agreement with U Mobile on Dec 12, 2018.
The 3G Network Agreement is for a limited scope of the provision of 3G network access services by Maxis Broadband to U Mobile from Dec 28, 2018 up to and including June 30, 2019.
Maxis does not expect the agreement to have material impact on its consolidated financials for the financial year ending 2018.
To recap, the two telcos had earlier signed a network sharing and alliance agreement dated Oct 21, 2011, under which Maxis was to share its 3G RAN for a period of 10 years.
However in June last year, U Mobile decided to end the agreement. The progressive termination of the agreement will be completed on Dec 27, 2018.
U Mobile said that it has embarked on an aggressive network replacement exercise across Malaysia over the past 18 months and is in its final phase of roll-out.
“To ensure the transition to its very own newly built network is seamless for customers, the telco decided on entering into the agreement,” it said in a statement today.
U Mobile said it is spending over RM5 billion on building a new and robust network to ensure its customers are able to enjoy superior experience.
Maxis’ share price fell 1.53% or 8 sen to close at RM5.14 today with 1.62 million shares traded.
