KUALA LUMPUR: M-Mode Bhd has clarified Celcom Mobile Sdn Bhd's suspension of the current content mobile platform also impacts all of Celcom mobile content providers.
It said on Monday the suspension of the current content mobile platform does not not indicate Celcom has suspended the master content provider agreement with its unit, M-Mode System Sdn Bhd (MMS).
M-Mode said the suspension was in relation to the new acquisition of subscribers by MMS for the purpose of migration of new platform introduced by Celcom.
The company issued the statement following an earlier announcement about the suspension.
Below is the earlier statement issued by M-Mode:
Pursuant to Paragraph 9.03 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Board of Directors of M-Mode (“Board”) wishes to announce that MMS, a wholly owned subsidiary of the Company, had on 1 April 2016 (via registered mail) received a Notice of Suspension of Services pursuant to Clause 15.1(b) of the Master Content Provider Agreement entered into between MMS and Celcom dated 7 June 2013 in relation to the New Acquisition (“Notice”).
According to the Notice, Celcom has decided to embark on a Sincere journey to provide a trusted mobile content services to its customers in view of the current rapid increase of customer complaints in the mobile content industry.
The suspension of the current Content Mobile Platform shall be effective from 12.00 a.m., 5 March 2016 (until further notice) (“Suspension Period”). During the Suspension Period, MMS shall:-
1. be migrated to a new platforms introduced by Celcom i.e. GAMESTORE, BIG WIN, ESCAPE AND EMOMI365,
2. ensure that MMS’s platforms continue to integrate with Celcom’s new platforms;
3. ensure that there is no new acquisition of services and
4. allow the present subscribers who have paid for the services to continue enjoy the services until they opt-out of the services.
For the financial year ended 31 December 2015, the revenue generated from the subscriptions of the services pursuant to the Agreement is approximately RM2.6 million per month. The Board is unable to ascertain the actual financial impact on the New Acquisition at this juncture.
The New Acquisition will not have any effect on the share capital and substantial shareholders’ shareholding of the Company.
None of the directors and/or major shareholders of the Company, or persons connected with them have any interest, direct or indirect, in the New Acquisition.
Limited time offer:
Just RM5 per month.
