KUALA LUMPUR (Sept 30): Telekom Malaysia Bhd (TM) announced it has completed the investment in wireless network player Packet One Networks (M) Sdn Bhd (P1), together with Green Packet Bhd and SK Telecom Co Ltd.

Following the completion of its investment, TM has emerged as the largest shareholder of P1 with a 55.3% stake, with Green Packet and SK Telecom holding the remaining 31.1% and 13.6% respectively.

In a statement today, TM said the three complementary partners will work together to capitalise on a viable mobile opportunity and deliver the next generation of converged communication services through P1.

“It essentially enables P1 to crossover to LTE [long term evolution] and offer full mobility, while providing TM with an LTE-ready platform to accelerate and more efficiently make wireless broadband products available to its customers.

“This includes access to suitable spectrum bands, the ability to draw on advanced technological knowhow of SK Telecom — an existing customer base to build on, and the strong base of LTE upgradeable WiMAX sites to quickly achieve extensive LTE coverage,” it said in a statement today.

In realising partnership synergies, TM said the partners — together with P1 — are currently developing a joint business plan and strategies.

“At the same time, the partners are conducting an operational review to further optimise operations for P1’s future business,” the group said, adding product development and commercial plans are also under discussion.

Meanwhile, being a holding company, TM also said it has nomination rights for key management positions.

“TM will play an active role in the management and direction of P1, through its strong representation at the board level,” it said, adding that P1’s new board and management line-up will be announced in due course.

On the P1 venture, TM has invested RM560 million, of which RM350 million has been ploughed into P1 via the subscription of new shares, while another RM210 million has been invested into Green Packet via newly-issued exchangeable bonds, which may be exchanged for Green Packet's stake in P1 in the future.