Axiata picks Ericsson, Huawei, NEC for global network; to save $100 million

Telecom service provider Axiata Group announced the global framework agreement with network vendors including Ericsson, Huawei, NEC and SIAE and plans to save $100 million over three years.

Axiata has presence in India through Idea Cellular, an Aditya Birla group company.

The agreements are aimed at establishing a streamlined procurement platform to realize business efficiencies and competitive advantage through cash flow improvement and timely purchasing. Earlier this year, Axiata has allocated RM4.4 billion as Capex for 2014, of which part of it would be used by the group to roll out its 4G LTE network.

Axiata group President and CEO Datuk Seri Jamaludin Ibrahim said: “Speed is crucial in the telecommunications industry and this agreement reduces the time required by each of the companies in purchasing products and services thereby translating into faster time to market which will ultimately benefit customers.”

Axiata group CEO Dato’ Sri Jamaludin Ibrahim

The agreement will enable Axiata, which has 250 million mobile subscribers in Asia with group revenue of $5.8 billion in 2013, to leverage on its volume, across five countries in the region through group pricing arrangements covering all Axiata markets.

Axiata is targeting to save $100 million over a three year period from implementation.

The global framework agreement will enable Axiata group to benefit from a common platform for the purchases of network equipment and other telecom products as well as the provision of related works and services from the selected vendors.

Axiata will have better visibility of each mobile network vendor’s roadmap and can leverage the knowledge base and plan Capex (capital spending) more efficiently.

Axiata Group is targeting to grow its RM18.4 billion revenue by another 10 percent this year, driven by its enlarged Indonesian entity.

Last month Axiata Group said it would set up a RM100 million venture fund with Malaysia Venture Capital Management Bhd (Mavcap) to nurture bumiputra and Malaysian digital services innovators.

Image: The Star

Baburajan K

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