U Mobile ends network sharing deal with Maxis

U Mobile Sdn Bhd is terminating the network sharing and alliance agreement with Maxis Bhd

KUALA LUMPUR: The fourth-largest mobile operator U Mobile Sdn Bhd is terminating its network sharing and alliance agreement with Maxis Bhd which was signed in 2011.

Maxis said on Wednesday the termination would take place in stages over 18 months and the completion date is on Dec 27, 2018.

On Oct 21, 2011, both parties had signed the agreement for Maxis' 3G radio access network made between Maxis Broadband Sdn Bhd and U Mobile. The agreement then was for 10 years.

Maxis said that last Friday, Maxis Broadband had received a letter from U Mobile to end  the agreement. This was pursuant to a termination for convenience option available to U Mobile.

On the impact of the termination, Maxis said it did not expect the latest development to have a material effect on the consolidated financial results of Maxis for the financial year ending 2017.

Under the 2011 multi-billion ringgit agreement, Maxis had shared its 3G radio access networks (RAN). 

The agreement also encompassed long-term evolution (LTE) sharing when the spectrum becomes available and the technology is rolled out which would deliver even better benefits to customers.

Click here for the 2011 announcement: http://bit.ly/2sfBpym

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