Telekom Malaysia sees profitable ring to Vodafone deal

KUALA LUMPUR (AFP) - Malaysia's state-owned telecommunications company Telekom Malaysia is eyeing a rise in profits following a tie-up with British-based mobile giant Vodafone Group.

Telekom group chief executive Abdul Wahid Omar was quoted as saying by the New Straits Times that the company is expecting to earn up to "tens of million ringgit" as a result of the strategic partnership.

The two companies signed a partner network agreement here this week which will boost access to each other's networks for customers travelling abroad.

The pact will allow Telekom, Malaysia's largest telco, to gain access to nearly 200 million additional subscribers and ultimately increase roaming revenues from international travellers, said the daily.

Telekom currently has interests in Sri Lanka, Bangladesh, Pakistan, Indonesia, Singapore, Thailand and Cambodia. It also has investments in Africa.

The agreement is also expected to boost Telekom's brand and allow it to access Vodafone's expertise in product development.

In return, Vodafone will be able to tap into Telekom's 23 million subscriber base and strengthen its presence in the region.

"We expect roaming revenues to increase," said Vodafone group director of business development Devin Brongham.

Telekom said the partnership will allow co-branding arrangements between Vodafone and Telekom Malaysia subsidiaries Dialog Telekom of Sri Lanka, PT Excelcomindo Pratama of Indonesia and Celcom of Malaysia.

In the individual markets of Malaysia, Sri Lanka and Indonesia, Vodafone's products and services will be marketed under a dual brand, it said.

Vodafone chief executive Arun Sarin said the Telekom partnership would boost its network presence in the region, building on Vodafone's existing relationships with Mobile One in Singapore and SmarTone in Hong Kong.

"This is helping to improve our roaming footprint in the Asia Pacific region, providing our customers with a greatly enhanced service," he said in a statement.

Vodafone is the world's biggest mobile phone operator in terms of revenues.