According to reports, Multinet Pakistan Ltd, a subsidiary of Telekom Malaysia, has signed capacity supply and service contracts worth 40 Million USD with Telenor Pakistan. Telekom Malaysia controls 78% stake in Multinet Pakistan, which is a broadband company (ISP).  Multinet is also licensed to provide Long Distance/International (LDI) services.

The capacity contract will allow Telenor to use fibre-optic cable pairs and associated co-location facilities along Multinet Pakistan’s national long haul transmission network, known locally as Project Ittehad. The service contract entails maintenance and associated services from Multinet for the duration of 20 years. Project Ittehad is a 4,100 km fibre-optic backbone connecting 107 cities across Pakistan, the first backbone project to be launched after the state-owned carrier Pakistan Telecommunication Co Ltd’s long haul network was completed in 1996. More on this here.

Telekom Malaysia has faced sluggish growth in its domestic market due to fixed-mobile substitution and VoIP offerings. However Telekom has finally become successful at the international front. In 2006 its Asian investments brought solid revenue and earnings contributions to its financials.

Telekom Malaysia had spent much of the late 1990s saddled with unprofitable investments in Africa but by 2004, it decided to switch its focus to Asia by acquiring a stake in Indonesian mobile operator, Excelcom. Having acquired a 49% stake in Spice, Telekom re-established itself in the Indian market at an opportune moment. It is doing business in many additional Asian countries: Indonesia (Excel), Bangladesh (Aktel), Cambodia (Casacom), SriLanka (Dialog), Singoapore (MobileOne). Telekom had announced creation of a separate group management team to overseas business development projects.

It is one of the companies to watch for as its current projects can position it for long-term success.

Advertisements