Telekom Malaysia boosts stake in fixed wireless broadband operator

12 February 2016 | Alan Burkitt-Gray

Telekom Malaysia has increased its stake in wireless broadband operator Packet One to a controlling 72.9%.

The transaction, via TM’s mobile subsidiary Mobikom, was carried out via a conversion of notes worth 410 million ringgit ($99 million) into 10.6 million shares. TM’s previous stake in P1 was 55.3%.

SK Telecom of South Korea remains a minority shareholder in P1, with 8.2%. Local Malaysian investor Green Packet now has 18.9%, down from 31.1%.

P1, which offers last-mile broadband access via wireless technology, started out as a subsidiary of Green Packet, a vendor of wireless networking equipment based in Malaysia.

In January 2016 three mobile networks in Malaysia, Celcom Axiata, Telekom Malaysia and P1 signed an agreement to use one another’s infrastructure to improve national broadband coverage.