Published: Friday May 6, 2011 MYT 10:03:00 AM
Updated: Friday May 6, 2011 MYT 10:06:28 AM
PUBLIC DISPUTE: Mobile Internet devices of Huawei Technologies Ltd (right) and ZTE Corp for sale at a computer mall in Beijing. China's biggest technology companies have launched a court battle in Europe over mobile phone patents in a rare public clash between firms Beijing is promoting as national champions. It is the first case of its kind between major Chinese companies, which usually settle disputes in private. - AP
BEIJING: Two of China's biggest technology companies have launched a court battle in Europe over mobile phone patents in a rare public clash between firms Beijing is promoting as national champions.
The fight between Huawei Technologies Ltd and ZTE Corp highlights the challenge for communist leaders who need to manage Chinese corporate ambitions as they try to create global competitors in telecoms, energy and other fields.
It is the first case of its kind between major Chinese companies, which usually settle disputes in private.
"We're going to see more of this in this industry and others," said David Wolf, a technology marketing consultant in Beijing. "The government will find, wow, we've got these national champions, but now they're trying to kill each other."
The dispute centres on fourth-generation mobile technology, which companies that are developing it say will deliver more stable connections, wireless broadband and other advances. It is in limited use in the United States and being tested elsewhere.
Control of key patents could help decide which equipment suppliers are positioned to reap billions of dollars in sales once it is rolled out in other markets.
Huawei and ZTE make network gear, the core of phone systems. They have multibillion-dollar annual sales in China, Africa and Latin America and see themselves as potential global 4G leaders. That fits with Communist Party hopes to transform China from a low-cost factory into a creator of profitable technology.
Huawei has filed patent infringement lawsuits against ZTE in France, Germany and Hungary. ZTE rejected the claims and said it has asked a French court and Chinese regulators to invalidate a Huawei patent.
Huawei and ZTE are among China's first wave of fledgling multinational companies. They compete with Nokia-Siemens Networks, Ericsson and Alcatel-Lucent and have a small but growing US and European presence.
Their dispute comes amid mounting complaints by foreign business groups about Beijing's industrial policy. They say China is improperly supporting favoured companies by limiting market access and providing low-cost loans and other support.
Huawei's lawsuits accuse ZTE of infringing patents for data cards and improperly using a Huawei-registered trademark on some of its products.
"We will do whatever is required to ensure that the use of Huawei's intellectual property by any company is based on internationally accepted protocols and practices," said Huawei's chief legal officer, Song Liuping, in a statement.
ZTE said its lawsuit accused Huawei of infringing its 4G patents. The company said it also has asked a French court and China's State Intellectual Property Office to invalidate Huawei's patents for a rotary USB connector used to exchange data between devices.
"ZTE respects the intellectual property rights of other companies, but it will not stop protecting its own intellectual property rights," said a company statement.
Huawei, founded in 1987 by a former Chinese military engineer, has 110,000 employees and reported 2010 revenues of 182bil yuan (RM84bil).
ZTE, founded in 1985, has 70,000 workers and reported 2010 revenues of 70bil yuan (RM32bil).
Their status as industry leaders gives both high-level political influence. But Chinese leaders want both to succeed - a possible reason for a stalemate and the decision to go to court.
An impartial ruling by a European court also might add to the winner's appeal for potential customers by reinforcing its status as a technology creator, rather than a Chinese policy tool.
"They are making an interesting statement by filing those lawsuits not in Chinese courts but overseas, because Chinese courts are perceived to be very political, and they want this matter obviously adjudicated on the legal merits," said Wolf, CEO of Wolf Group Asia.
Huawei and ZTE are unusual among major Chinese companies because they compete directly with each other, offering similar products in the same markets.
Authorities who want China's potential global companies to focus their competitive energies on foreign rivals have tried to head off clashes in other industries by assigning different markets or products to individual enterprises.
Huawei has suffered setbacks as it tries to expand in the United States. It was forced in February to unwind its acquisition of 3Leaf Systems, a maker of cloud-computing technology, after it failed to win approval from a US security panel.
In a separate case, Huawei won a court order that temporarily blocked the sale of Motorola Solutions Inc's network business to rival Nokia-Siemens Networks.
Huawei said the deal might reveal business secrets because Motorola sold Huawei equipment. Motorola settled with Huawei for an undisclosed fee.
Also this month, Ericsson said it has filed lawsuits against ZTE in Britain, Germany and Italy accusing the company of infringing patents for handset and network technology.
The Swedish company asked the courts to block ZTE from selling mobile phones that contain the disputed technology and some network products. - AP
http://techcentral.my/news/story.aspx?file=/2011/5/6/it_news/20110506101236&sec=it_news
Saturday, May 7, 2011
Broadband services focused on urban areas due to demand, Senate told
Published: Tuesday April 26, 2011 MYT 1:28:00 PM
KUALA LUMPUR: The Dewan Negara sitting on Tuesday was told that greater awareness and demand for broadband services from residents and companies in urban centres resulted in these services being more focused on the urban areas.
Deputy Minister of Information Communication and Culture Datuk Joseph Salang Gandum said, however, this factor did not mean that the government was ignoring the needs of the rural residents for broadband services.
"It is undeniable that the broadband services are more concentrated in the urban areas, but emphasis is also given to the provision of such services in the suburban and rural areas," he told the Senate when replying to a question from Senator Datuk Abdul Rahim Abdul Rahman.
Abdul Rahim wanted to know what measures were being taken by the government to ensure that internet services were extended to all parts of the country instead of being concentrated in certain areas.
Salang said that, in order to meet all requests, the ministry and the Malaysian Communications and Multimedia Commission (MCMC) were implementing various initiatives to enhance broadband coverage and to provide awareness on and promote demand for the broadband services. - Bernama
http://www.thestar.com.my/news/story.asp?sec=nation&file=/2011/4/26/nation/20110426133936
KUALA LUMPUR: The Dewan Negara sitting on Tuesday was told that greater awareness and demand for broadband services from residents and companies in urban centres resulted in these services being more focused on the urban areas.
Deputy Minister of Information Communication and Culture Datuk Joseph Salang Gandum said, however, this factor did not mean that the government was ignoring the needs of the rural residents for broadband services.
"It is undeniable that the broadband services are more concentrated in the urban areas, but emphasis is also given to the provision of such services in the suburban and rural areas," he told the Senate when replying to a question from Senator Datuk Abdul Rahim Abdul Rahman.
Abdul Rahim wanted to know what measures were being taken by the government to ensure that internet services were extended to all parts of the country instead of being concentrated in certain areas.
Salang said that, in order to meet all requests, the ministry and the Malaysian Communications and Multimedia Commission (MCMC) were implementing various initiatives to enhance broadband coverage and to provide awareness on and promote demand for the broadband services. - Bernama
http://www.thestar.com.my/news/story.asp?sec=nation&file=/2011/4/26/nation/20110426133936
High Speed Broadband for JB Folk
Saturday April 30, 2011
CITY dwellers in Johor Bahru will enjoy highspeed Internet by 2012 following an agreement signed between Maxis Broadband Sdn Bhd and KSL Properties Sdn Bhd.
Maxis is KSL Properties’ technology partner and had secured rights to provide integrated end-to-end high speed broadband Fibre-to-the-Home (FTTH) solutions to KSL Properties’ residential development.
The telecommunication company was represented by its senior Vice President, home services Harold Quek while KSL Properties’ Chairman Ku Hwa Seng signed the agreement witnessed by Maxis senior Vice President business services Mohamed Fitri Abdullah and KSL Properties Executive Director Wendy Ku.
Done deal: (left to right) Wendy, Harold, Ku and Fitri Abdullah formalising the partnership between Maxis and KSL Properties Sdn Bhd.
Under the terms of the agreement, Maxis will provide the design, supply, installation, testing and commissioning of telecommunications infrastructure for the provision of broadband services for KSL Properties’ residential developments in Johor.
The immediate beneficiaries of the broadband services are residents of 602 units of D’Esplanade Residence at KSL City.
http://thestar.com.my/metro/story.asp?file=/2011/4/30/southneast/8571418&sec=southneast
CITY dwellers in Johor Bahru will enjoy highspeed Internet by 2012 following an agreement signed between Maxis Broadband Sdn Bhd and KSL Properties Sdn Bhd.
Maxis is KSL Properties’ technology partner and had secured rights to provide integrated end-to-end high speed broadband Fibre-to-the-Home (FTTH) solutions to KSL Properties’ residential development.
The telecommunication company was represented by its senior Vice President, home services Harold Quek while KSL Properties’ Chairman Ku Hwa Seng signed the agreement witnessed by Maxis senior Vice President business services Mohamed Fitri Abdullah and KSL Properties Executive Director Wendy Ku.
Done deal: (left to right) Wendy, Harold, Ku and Fitri Abdullah formalising the partnership between Maxis and KSL Properties Sdn Bhd.
Under the terms of the agreement, Maxis will provide the design, supply, installation, testing and commissioning of telecommunications infrastructure for the provision of broadband services for KSL Properties’ residential developments in Johor.
The immediate beneficiaries of the broadband services are residents of 602 units of D’Esplanade Residence at KSL City.
http://thestar.com.my/metro/story.asp?file=/2011/4/30/southneast/8571418&sec=southneast
Support National Athletes by Wearing the Panthera
Saturday April 30, 2011
By SHAUN HO
newsdesk@thestar.com.my
KUALA LUMPUR: Malaysians can now sport the same team colours as their favourite local sporting heroes with the launch of the Team Malaysia Panthera jersey.
Officially worn by national athletes competing in international sporting events, supporters would now be able to put on a show of solidarity with the jersey's striking black on yellow stripes.
Telekom Malaysia Bhd (TM) signed agreements with the National Sports Council (NSC) and the Olympic Council of Malaysia (OCM) for exclusive rights to produce and distribute the jersey as well as other merchandise bearing the striped design and the Olympic rings logo.
Show of solidarity: (From left) Zamzamzairani, TM chairman Datuk Dr Halim Shafie, Shabery, Tunku Imran and Zolkples holding up the Panthera jerseys which would be available for sale at selected TMPoint outlets.
The agreements were signed by TM group CEO Datuk Seri Zamzamzairani Mohd Isa, NSC director general Datuk Zolkples Embong and OCM president Tunku Imran Tuanku Ja'afar.
Youth and Sports Minister Datuk Seri Ahmad Shabery Cheek, who witnessed the signing, said it was a bold move to market clothing and to associate it with Malaysian sports as the brand.
“Sports is not just about the athletes but also the supporters. TM will produce other apparel too and this will encourage fans to wear it at all sporting events,” Shabery said after the launch of the Team Malaysia jersey at Menara TM here yesterday.
He added that profits from the jersey's sales would be channelled to the NSC trust fund for all youth sport.
Zolkples Embong said TM was given the rights because he felt the company could promote the jersey to NSC's expectations.
“Nobody has presented a comprehensive plan to promote a national sports attire on a massive scale before. TM is big enough to do it,” said Zolkples.
The Team Malaysia Panthera jersey is available in adult and children sizes and can be purchased at selected TMPoint outlets as well as TM events and roadshows for RM79.90.
The jersey can also be purchased online via www.tm.net.my, www.tmrewards.com.my and www.everyoneconnects.net for RM69.90.
http://thestar.com.my/metro/story.asp?sec=nation&file=/2011/4/30/nation/8576265
By SHAUN HO
newsdesk@thestar.com.my
KUALA LUMPUR: Malaysians can now sport the same team colours as their favourite local sporting heroes with the launch of the Team Malaysia Panthera jersey.
Officially worn by national athletes competing in international sporting events, supporters would now be able to put on a show of solidarity with the jersey's striking black on yellow stripes.
Telekom Malaysia Bhd (TM) signed agreements with the National Sports Council (NSC) and the Olympic Council of Malaysia (OCM) for exclusive rights to produce and distribute the jersey as well as other merchandise bearing the striped design and the Olympic rings logo.
Show of solidarity: (From left) Zamzamzairani, TM chairman Datuk Dr Halim Shafie, Shabery, Tunku Imran and Zolkples holding up the Panthera jerseys which would be available for sale at selected TMPoint outlets.
The agreements were signed by TM group CEO Datuk Seri Zamzamzairani Mohd Isa, NSC director general Datuk Zolkples Embong and OCM president Tunku Imran Tuanku Ja'afar.
Youth and Sports Minister Datuk Seri Ahmad Shabery Cheek, who witnessed the signing, said it was a bold move to market clothing and to associate it with Malaysian sports as the brand.
“Sports is not just about the athletes but also the supporters. TM will produce other apparel too and this will encourage fans to wear it at all sporting events,” Shabery said after the launch of the Team Malaysia jersey at Menara TM here yesterday.
He added that profits from the jersey's sales would be channelled to the NSC trust fund for all youth sport.
Zolkples Embong said TM was given the rights because he felt the company could promote the jersey to NSC's expectations.
“Nobody has presented a comprehensive plan to promote a national sports attire on a massive scale before. TM is big enough to do it,” said Zolkples.
The Team Malaysia Panthera jersey is available in adult and children sizes and can be purchased at selected TMPoint outlets as well as TM events and roadshows for RM79.90.
The jersey can also be purchased online via www.tm.net.my, www.tmrewards.com.my and www.everyoneconnects.net for RM69.90.
http://thestar.com.my/metro/story.asp?sec=nation&file=/2011/4/30/nation/8576265
M'sia Taking Steps to Reduce Broadband Rates
Tuesday April 26, 2011
By LEONG HUNG YEE
hungyee@thestar.com.my
KUALA LUMPUR: A new consortium, Konsortium Rangkaian Serantau Sdn Bhd under the Entry Point Projects (EPPs), has been set up to buy international bandwidth for Internet traffic to lower the costs of Internet protocol (IP) transit, according to Information, Communication and Culture Minister Datuk Seri Utama Dr Rais Yatim.
The announcement confirmed a StarBiz report on March 23 that a consortium was being set up to buy international bandwidth for Internet traffic in bulk in a bid to reduce IP transit cost.
StarBiz reported that the consortium may build and own an undersea cable network or partner other cable networks for capacity in a private-public partnership to address the problem of high IP transit cost.
The reduction of IP transit cost is part of the “extend the regional reach” initiative under the Economic Transformation Plan. IP transit cost is the cost service providers pay to carry Internet traffic around the world but because most sites are hosted in the United States, traffic volumes to the US are high.
The consortium comprises 24 members including Telekom Malaysia Bhd (TM), Time Dotcom Bhd, Maxis Bhd, Celcom Axiata Bhd, DiGi.Com Bhd, U Mobile Sdn Bhd, Green Packet, YTL Communications Sdn Bhd, RedTone International Bhd, OCE, Fibrerail Sdn Bhd, Jaring, Sacofa, Sarawak Information Systems, Fibrecomm Networks (M) Sdn Bhd, and V Telecoms.
Fiberail and Fibrecomm are subsidiaries of TM.
“The main objective in setting up the consortium is to lower the broadband subscription cost for users through cost savings as the subscription cost of international bandwidth capacity accounts for 40% of the total cost of providing broadband services.
“To achieve the cost savings, the consortium will buy the capacity in bulk as well as plan and manage the international submarine cable on behalf of its members,” Rais said at a briefing to announce three all-new EPPs under the National Key Economic Area (NKEA) Communications Content and Infrastructure (CCI) yesterday.
The other two projects announced are the tracking and tracing of swiftlet nests using radio frequency identification technology and the enhancement of basic infrastructure in rural areas.
From left: Time dotCom Bhd CEO Afzal Abdul Rahim, National Key Economic Area, Communications Content and Infrastructure (CCI) director Dr Fadhullah Suhaimi Abdul Malel, Veterinary Services Department director-general Datuk Dr Abdul Aziz Jamaluddin, Datuk Seri Utama Dr Rais Yatim, Deputy Information, Communication and Culture Minister Datuk Joseph Salang Gandum and Malaysian Communications and Multimedia Commission chairman Tan Sri Khalid Ramli at the signing ceremony.
According to filings with Bursa Malaysia by various service providers, the authorised share capital of the consortium shall be RM10mil divided into 10 million ordinary shares of RM1 each and may be increased from time to time in accordance with the memorandum and articles of association of the consortium.
The initial issued and paid-up share capital of the consortium is RM240,000 comprising 240,000 ordinary shares of RM1 each, of which each party holds an equivalent of 10,000 shares of RM1 each issued at par value in the consortium.
The parties have also agreed to commit an additional capital contribution in cash of RM40,000 each by subscribing to 40,000 ordinary shares of RM1 each, at such later time as may be determined by the consortium's board of directors.
Although broadband subscription costs are expected to be lower, Rais expects the service level would continue to be improved at the same time.
To a question, he said that given the number of parties involved in the consortium, the cost should naturally come down. However, he did not have a specific time when the lower subscription cost for broadband would come into effect.
“I cannot tell you now when the real results will be seen and the CCI will be closely monitoring this,” Rais said, adding that the project did not involve public funds as it was a private sector initiative.
DiGi said its participation in the consortium would enable additional IP transit and domestic bandwidth capacity to be available in Malaysia at a lower cost.
“This will consequently benefit consumers in terms of price and experience for Internet and broadband services,” it said.
Maxis said the consortium would enable all its members to enjoy lower bandwidth cost due to bulk purchase and economies of scale.
TM said its participation together with its subsidiaries in the consortium was in support of the Government's initiative under the Economic Transformation Programme, which would enable additional bandwidth capacity for Malaysia in anticipation of increasing demand requirements at lower costs.
http://biz.thestar.com.my/news/story.asp?file=/2011/4/26/business/8551291&sec=business
By LEONG HUNG YEE
hungyee@thestar.com.my
KUALA LUMPUR: A new consortium, Konsortium Rangkaian Serantau Sdn Bhd under the Entry Point Projects (EPPs), has been set up to buy international bandwidth for Internet traffic to lower the costs of Internet protocol (IP) transit, according to Information, Communication and Culture Minister Datuk Seri Utama Dr Rais Yatim.
The announcement confirmed a StarBiz report on March 23 that a consortium was being set up to buy international bandwidth for Internet traffic in bulk in a bid to reduce IP transit cost.
StarBiz reported that the consortium may build and own an undersea cable network or partner other cable networks for capacity in a private-public partnership to address the problem of high IP transit cost.
The reduction of IP transit cost is part of the “extend the regional reach” initiative under the Economic Transformation Plan. IP transit cost is the cost service providers pay to carry Internet traffic around the world but because most sites are hosted in the United States, traffic volumes to the US are high.
The consortium comprises 24 members including Telekom Malaysia Bhd (TM), Time Dotcom Bhd, Maxis Bhd, Celcom Axiata Bhd, DiGi.Com Bhd, U Mobile Sdn Bhd, Green Packet, YTL Communications Sdn Bhd, RedTone International Bhd, OCE, Fibrerail Sdn Bhd, Jaring, Sacofa, Sarawak Information Systems, Fibrecomm Networks (M) Sdn Bhd, and V Telecoms.
Fiberail and Fibrecomm are subsidiaries of TM.
“The main objective in setting up the consortium is to lower the broadband subscription cost for users through cost savings as the subscription cost of international bandwidth capacity accounts for 40% of the total cost of providing broadband services.
“To achieve the cost savings, the consortium will buy the capacity in bulk as well as plan and manage the international submarine cable on behalf of its members,” Rais said at a briefing to announce three all-new EPPs under the National Key Economic Area (NKEA) Communications Content and Infrastructure (CCI) yesterday.
The other two projects announced are the tracking and tracing of swiftlet nests using radio frequency identification technology and the enhancement of basic infrastructure in rural areas.
From left: Time dotCom Bhd CEO Afzal Abdul Rahim, National Key Economic Area, Communications Content and Infrastructure (CCI) director Dr Fadhullah Suhaimi Abdul Malel, Veterinary Services Department director-general Datuk Dr Abdul Aziz Jamaluddin, Datuk Seri Utama Dr Rais Yatim, Deputy Information, Communication and Culture Minister Datuk Joseph Salang Gandum and Malaysian Communications and Multimedia Commission chairman Tan Sri Khalid Ramli at the signing ceremony.
According to filings with Bursa Malaysia by various service providers, the authorised share capital of the consortium shall be RM10mil divided into 10 million ordinary shares of RM1 each and may be increased from time to time in accordance with the memorandum and articles of association of the consortium.
The initial issued and paid-up share capital of the consortium is RM240,000 comprising 240,000 ordinary shares of RM1 each, of which each party holds an equivalent of 10,000 shares of RM1 each issued at par value in the consortium.
The parties have also agreed to commit an additional capital contribution in cash of RM40,000 each by subscribing to 40,000 ordinary shares of RM1 each, at such later time as may be determined by the consortium's board of directors.
Although broadband subscription costs are expected to be lower, Rais expects the service level would continue to be improved at the same time.
To a question, he said that given the number of parties involved in the consortium, the cost should naturally come down. However, he did not have a specific time when the lower subscription cost for broadband would come into effect.
“I cannot tell you now when the real results will be seen and the CCI will be closely monitoring this,” Rais said, adding that the project did not involve public funds as it was a private sector initiative.
DiGi said its participation in the consortium would enable additional IP transit and domestic bandwidth capacity to be available in Malaysia at a lower cost.
“This will consequently benefit consumers in terms of price and experience for Internet and broadband services,” it said.
Maxis said the consortium would enable all its members to enjoy lower bandwidth cost due to bulk purchase and economies of scale.
TM said its participation together with its subsidiaries in the consortium was in support of the Government's initiative under the Economic Transformation Programme, which would enable additional bandwidth capacity for Malaysia in anticipation of increasing demand requirements at lower costs.
http://biz.thestar.com.my/news/story.asp?file=/2011/4/26/business/8551291&sec=business
Telstra aims to conclude network talks this month
Tuesday May 3, 2011
MELBOURNE: Telstra Corp, Australia's biggest phone company, is looking to conclude long-delayed talks with the government by the end of May to hand over its copper network to the National Broadband Network for A$11bil (US$12.07bil), a newspaper reported yesterday.
The government is believed to want an announcement as soon as possible after the May 10 federal budget, while an industry source pointed to May 23 as a more likely date, the Australian Financial Review said.
NBN Co and Telstra were in the final stages of negotiation,' NBN chief executive Mike Quigley said on Friday.
Uncertainty over the final agreement has dogged Telstra's share price, and Telstra shareholders are eager for the deal to be signed so they can see the details surrounding how the company will be compensated, ahead of voting on the deal.
Telstra shares closed on Friday at A$2.91, not far off a record low of A$2.55 hit about six months ago. - Reuters
http://www.thestar.com.my/news/story.asp?sec=business&file=/2011/5/3/business/8594105
MELBOURNE: Telstra Corp, Australia's biggest phone company, is looking to conclude long-delayed talks with the government by the end of May to hand over its copper network to the National Broadband Network for A$11bil (US$12.07bil), a newspaper reported yesterday.
The government is believed to want an announcement as soon as possible after the May 10 federal budget, while an industry source pointed to May 23 as a more likely date, the Australian Financial Review said.
NBN Co and Telstra were in the final stages of negotiation,' NBN chief executive Mike Quigley said on Friday.
Uncertainty over the final agreement has dogged Telstra's share price, and Telstra shareholders are eager for the deal to be signed so they can see the details surrounding how the company will be compensated, ahead of voting on the deal.
Telstra shares closed on Friday at A$2.91, not far off a record low of A$2.55 hit about six months ago. - Reuters
http://www.thestar.com.my/news/story.asp?sec=business&file=/2011/5/3/business/8594105
TM’s Islamic Debt on Stable Outlook
Friday April 22, 2011
PETALING JAYA: Telekom Malaysia Bhd’s (TM) proposed RM2bil Islamic commercial papers programme and Islamic medium term notes programme has been respectively assigned a final short and long term ratings of P1 and AAA by RAM Ratings.
The long term rating has been given a stable outlook.
This reflects TM’s strong credit and financial profiles, which were underpinned by the company’s strategic importance as the national telecommunications company, the rating arm of RAM Holdings Bhd said in a press release yesterday.
RAM Ratings noted that the company’s financial position was characterised by relatively stable revenue and cashflow as well as strong debt-coverage levels.
Even assuming a full drawdown of the debt facilities by 2012, the rating agency said TM’s debt-servicing ability would remain intact over the next two years.
“However, the additional borrowings will affect TM’s balance sheet (on a pro-forma basis); its gearing ratio is envisaged to peak at 1.12 times by end-2012 (with RM7.53bil debt load), from 0.7 times (and RM5.53bil of debt) as at end-2010, before tapering off thereafter,” RAM Ratings said.
http://biz.thestar.com.my/news/story.asp?file=/2011/4/22/business/8533783&sec=business
PETALING JAYA: Telekom Malaysia Bhd’s (TM) proposed RM2bil Islamic commercial papers programme and Islamic medium term notes programme has been respectively assigned a final short and long term ratings of P1 and AAA by RAM Ratings.
The long term rating has been given a stable outlook.
This reflects TM’s strong credit and financial profiles, which were underpinned by the company’s strategic importance as the national telecommunications company, the rating arm of RAM Holdings Bhd said in a press release yesterday.
RAM Ratings noted that the company’s financial position was characterised by relatively stable revenue and cashflow as well as strong debt-coverage levels.
Even assuming a full drawdown of the debt facilities by 2012, the rating agency said TM’s debt-servicing ability would remain intact over the next two years.
“However, the additional borrowings will affect TM’s balance sheet (on a pro-forma basis); its gearing ratio is envisaged to peak at 1.12 times by end-2012 (with RM7.53bil debt load), from 0.7 times (and RM5.53bil of debt) as at end-2010, before tapering off thereafter,” RAM Ratings said.
http://biz.thestar.com.my/news/story.asp?file=/2011/4/22/business/8533783&sec=business
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