Celcom, DiGi to share network resources

Two of the country's mobile network operators, Celcom Axiata and DiGi, have announced plans to collaborate on network and infrastructure sharing.

The effort is largely geared towards bringing down operation and infrastructure maintenance costs while sharing and optimising base stations.

Celcom Axiata chief executive officer Datuk Seri Shazalli Ramly said with higher Internet penetration, networks are becoming more data-centric than voice-centric and this is driving up capacity requirements.

"This agreement will not only benefit Celcom and DiGi by removing duplication of base station sites but also consumers by improving the quality of service provided by both companies," he said.

Echoing Shazalli's sentiments, DiGi chief executive officer Henrik Clausen said the reality is that the demand for mobile data services is increasing rapidly and it can only be met by pooling resources together.

Celcom said the collaboration will result in greater network coverage especially in the rural areas.

"Without this agreement, it would take a significantly longer time to expand network coverage to the rural areas where it is needed the most," said Datuk Seri Jamaludin Ibrahim, managing director of Axiata Group.

Shazalli says both parties are still in the process of studying the viability of network sharing as well as on other areas that can be improved.

"It is an evolutionary development that will take time and it needs to happen gradually," he added.

Though both parties will collaborate on sharing infrastructure, Celcom and DiGi maintain that they are still in competition with one another and will look towards improving their services respectively.

By CHONG JINN XIUNG
intech@thestar.com.my