Selangor Journal
A salesperson at a telecommunications store uses a phone in Kuala Lumpur, on January 6, 2022. — Picture by REUTERS

Celcom, Digi asked to address preliminary competition concerns in ongoing merger assessment

KUALA LUMPUR, April 2 — Celcom Axiata Bhd (Celcom) and Digi Telecommunications Sdn Bhd (Digi Tel) have been asked to collectively address preliminary competition concerns across indicated market areas and respond to possible remedy recommendations provided in the Statement of Issues (SOI).

The SOI was issued to both Celcom and Digi Tel on April 1, 2022, by the Malaysian Communications and Multimedia Commission (MCMC) pursuant to its Guidelines on Mergers and Acquisitions.

It sets out the MCMC’s preliminary view on competition effects that could arise from the proposed merger and invites Digi Tel and Celcom as applicants to submit comments, information and remedies on its assessment, both Axiata Group Bhd (Axiata) and Digi.Com Bhd said in separate filings to Bursa Malaysia on Friday. Celcom is an operating unit of Axiata Group while Digi Tel is a subsidiary of Digi.Com.

The MCMC in its SOI informed that Digi Tel and Celcom will need:

1. The national retail market for mobile and low-speed fixed broadband and data services, including the related local distribution channel markets;

2. The national retail market for mobile voice and Person-to-Person (P2P) messaging services, including the related local distribution channel market (s);

3. The national wholesale market for mobile voice and P2P messaging services (including network sharing arrangements); and,

4. The national wholesale market for mobile broadband services (including network sharing arrangements).

The issuance of the SOI is part of the merger assessment process under the Guidelines. It is intended to provide an opportunity for Digi Tel and Celcom to make submissions in response to the MCMC’s preliminary findings, in line with the Guidelines.

“The SOI indicates that this is not the final decision of the MCMC.”

Celcom and Digi Tel will continue to engage with the MCMC to provide a comprehensive response to the SOI for the MCMC’s considerations prior to their final decision, it added.

— Bernama

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