MAXIS DEMONSTRATES ITS COMMITMENT TO ENHANCING MALAYSIA’S TELECOMMUNICATIONS SECTOR AS THE PREFERRED WHOLESALE PROVIDER OF 2G AND 3G SERVICES

• Maxis provides 3G RAN Sharing services to U Mobile - the first active 3G RAN sharing in South East Asia – ensuring greater efficiency in services delivery
• Maxis now “miles ahead” of other Network Operators with regards to infrastructure sharing and open to even more sharing with other players
• Maxis heeds Government’s call to avoid duplication of infrastructure and for greater cooperation on network sharing among industry participants

Kuala Lumpur, 2 November 2012. Malaysia’s leading integrated communications service provider, Maxis Berhad (Maxis), is pleased to be the preferred wholesale provider of 2G and 3G network infrastructure access to the market. As one of the major highlights in its network sharing initiatives, the Company now provides 3G Radio Access Network (RAN) access across over 1300 sites to U Mobile under a mutually beneficial multi-billion ringgit agreement for both companies ensuring greater efficiency in services delivery. This demonstrates the Company’s continued commitment to the Government and the Multimedia Communications and Multimedia Commission’s (MCMC) call for greater cooperation on network sharing among industry participants.

Mark Dioguardi, Joint Chief Operating Officer, Maxis Berhad said, “One of our key strategies is to maximise the return on our network assets, especially in underutilised parts of the network.  By doing so, we create economies of scale, reduce our cost to serve and as a result can pass on additional value to both our Maxis subscribers and our shareholders. It’s good for the environment and good for balance of trade.  Overall it just makes good business sense.”

Maxis understands that connectivity plays a crucial role in expediting the growth and development of the country and by cooperating with other Service Providers, we are able to ensure our Superior Network can be accessed by even more customers.

“We are confident that U Mobile will benefit from the high-quality and extensive coverage of the country's widest high-speed network from Maxis. We are open to any form of infrastructure sharing and if our spare capacity can be used by a new player, it is mutually beneficial for us to sell that capacity as opposed to there being even more duplication. We run great networks with the best engineers in the country and have a lot of network know-how,” added Mark.

Jaffa Sany Ariffin, Chief Executive Officer of U Mobile said, “We are delighted to be working together with Maxis under this unique agreement as it enables us to expand our physical network coverage area by 4-5 times, almost overnight. Through this partnership, we are delivering to our business strategy of continuously expanding our network and, at the same time, the Company will enjoy considerable savings on operating and capital expenditure. We also expect to grow our subscriber base as more and more consumers across Peninsula Malaysia come to understand the value U Mobile offers through our innovative and affordable packages and services.”

The benefits of the Maxis and U Mobile RAN shared network - the first of its kind in Southeast Asia - will be extended to many locations outside urban market centres where U Mobile is committed to providing high speed mobile broadband services. The network sharing arrangement also includes Maxis providing Nationwide 2G Roaming to ensure seamless services to U Mobile subscribers.

In a related recent development, Maxis entered an infrastructure and spectrum sharing agreement with REDTone International that will enable both players to fast track their roll out of ultra-high speed 4G networks throughout the country. This will present customers with the opportunity to access the highest 4G broadband speeds in the country - up to 150 Mbps, with the latest 4G LTE technology through the combined spectrum.

“Mobile operators worldwide are looking for cost efficiencies across the industry. In a mature market such as Malaysia, infrastructure, spectrum and RAN sharing can considerably reduce CAPEX and OPEX, increase the speed of network rollouts, enhance coverage and more importantly, meet the rapidly increasing demands for data and voice capacity while still allowing operators to differentiate on services. Sharing is about working smarter as an industry and focusing spend where it matters most. We’re not just talking about it, we have done it and on a huge scale,” concluded Mark.

Maxis is the biggest wireless network investor in the country investing RM3.7 billion in capex in the past three years resulting in 95% 2G and 81% high speed 3G coverage of the population. Maxis now has 3,400 of its 5,200 3G sites are enabled with 42Mbps capability and is ready for 4G LTE activation.