Enterprise Innovation — XL Axiata has selected the Amdocs Mobile Financial Services (MFS) solution to enhance its existing XL Tunai mobile financial services platform and introduce new services under a seven-year managed services revenue-sharing contract. Amdocs’ solution is expected to enable XL Tunai customers, both banked and unbanked customers across Indonesia, to use a single wallet for all financial services including airtime top-up, money transfer, credit purchase, as well as online and retail payments.
Telecom Asia — Malaysia-based Axiata Group has entered the Nepal telecoms market with the acquisition of the nation’s largest mobile operator Ncell. Axiata has paid $1.36 billion for an effective 80% stake in Ncell from previous owners TeliaSonera UTA Holdings and Reynolds Holdings’ SEA Telecom Investments. Local partner Sunivera Capital Ventures will retain a 20% direct stake in Ncell, as required under Nepalese law.
Telecom Asia — India’s Bharti Airtel is reportedly in talks with Malaysia-based Axiata Group to merge their respective mobile units in Sri Lanka. Negotiations are underway regarding a potential deal, the Economic Times reported, citing two people familiar with the deal. The potential merger would create the largest mobile operator in Sri Lanka with over 12 million customers.
Malaysia’s Axiata Group has revealed plans to expand its presence in Asia with the $1.36 billion purchase of an 80% stake in Nepalese mobile operator Ncell. Sweden-based TeliaSonera has arranged to sell its stake in Reynolds Holdings to Axiata Group for $1.03 billion, Axiata announced.
Myanmar Times — This is the largest-ever corporate bond issued with proceeds to be invested into a Myanmar towers business, demonstrating considerable investor confidence in the frontier market. Telecoms towers companies have led the way in terms of innovative cross-border financing into Myanmar – last year Pan Asia Majestic Eagle completed the first cross-border, non-recourse financing arrangement in the country.
Myanmar Times — MTC, which is owned by Digicel Asian Holdings, a joint venture between Digicel Group and YSH Finance, was valued on a cash and debt free basis at US$221 million, “in line with market benchmarks for similar assets”, according to an Axiata announcement on October 2. The business was put up for sale earlier this year, including all its contracts and sites, as reported by The Myanmar Times. Several companies made initial bids, including a number of competitors within Myanmar, according to market sources who did not want to be named.
2014 was an interesting year for mobile operators in Malaysia. Celcom Axiata Bhd appeared to have lost pole position in terms of subscriber base, Maxis Bhd starting to regain some of its lost ground, and Digi.Com Bhd continued to grow its market share in most, if not all, areas. Last year, Celcom’s total revenue fell by 4% to RM7.74 billion, while net profit declined 19% to RM1.7 billion. The decline was partly due to the hiccups it suffered when it implemented an IT transformation programme.
Axiata Malaysia’s subsidiary Multinet has used Business Value Planning (BVP) to successfully implement enterprise resource planning (ERP) in its organisation. Multinet, an independent telecommunication solution provider in Pakistan operates a nationwide optical fiber cable network, connecting major cities across Pakistan. It was acquired by Axiata Malaysia in year 2005 and struggled with ERP implementation following this strategic move.