EA Holdings Bhd, a Bumiputra ACE Market-listed company since 2010, has inked a non-binding memorandum of understanding (MOU) with Third Telecom Sdn Bhd which is currently vying to be among the first mobile virtual network operators (MVNO) to provide 5G broadband solutions and services to the Malaysian market.
Pursuant to the signing of the MOU, both parties will collaborate in the design, provision and distribution of broadband access connectivity solutions, services and equipment utilising the newly launched 5G technology in Malaysia.
Third Telecom will primarily be operating as an MVNO, leveraging on the 5G framework and access built and provided by Digital Nasional Bhd (DNB).
The company is helmed by its CEO Aminuddin Abu Khalid who is a highly experienced telecommunication expert with more than 40 years of experience in fixed and mobile telephony networking in Malaysia.
“EAH has been around for more than 10 years and they are very experienced in system implementations, software and application designs which are some of the crucial skillsets that Third Telecom needs urgently to launch our MVNO plans,” Aminuddin pointed out. “EAH’s broad networks of established clients are an added bonus too.”
Together with Third Telecom, EAH wants to be the prime MVNO offering innovative services and solutions using the 5G technology to our customers, according to the company’s CEO Sobri Saad.
“Our primary target markets would be the multinationals, enterprises and industries,” he enthused.
By December 2021, DNB is expected to roll out 500 5G sites in Putrajaya, Cyberjaya and Kuala Lumpur, effectively covering 10% of the populated area.
This will increase to 4,018 sites (40% of populated areas and covering all major towns) by 2022, and reach 80% of the populated areas by 2024 with 7,509 sites.
From 2025-2030, it is expected that 5G will cover more than 90% of the populated areas with at least 10,167 sites. By then, most of the 4G sites and non-5G sites would be made redundant, similar to the 3G sites which would be non-operational after Dec 31.
“Unlike the traditional telco framework which required billions ringgit of outlays for infrastructure, the 5G infrastructure will be built and maintained by DNB who in turn will charge other mobile network operators (MNOs) and MVNOs for access to the 5G framework,” noted Aminuddin.
“This 5G initiative by the Government will enable MNVOs like us to get involved in helping Malaysia to transit quickly into the new era as we can help by offering new and innovative products and solutions to both local and international markets as well.
“This is a real game changer for the telco industry and we need to act quickly to take advantage of this new opportunity.”
EA Holdings’ Sobri sees huge potential of 5G adoption whereby together with Third Telecom, both companies can strategically position themselves to be one of the enablers to bring 5G connectivity to the markets.
“Revenue and profits aside, this collaboration is also about national duty as Malaysia has been lagging behind in 5G adoption compared to other countries like China, South Korea, US and even the Philippines. It’s time we to catch up,” he added.
At 4.12pm, EA was down 0.5% or 25% at 1.5 sen with 6.9 million shares traded, thus valuing the company at RM93 mil. – Dec 1, 2021
