February 29, 2012

Axiata: Extends collaboration with Huawei, Celcom to check drop

Stock Name: AXIATA
Company Name: AXIATA GROUP BERHAD
Research House: ECMLIBRAPrice Call: HOLDTarget Price: 5.19




Axiata Group Bhd (AXIATA MK, Hold, TP: RM5.19) is extending its 5-year strategic global framework arrangement with global ICT solutions provider Huawei to establish a streamlined procurement platform. The framework agreement will create a common platform for Axiata group of companies to purchase network telecommunications infrastructure products, including provision of related works and services, from Huawei. (The Sun)

Separately, Celcom Axiata Bhd, a unit of Axiata Group Bhd will continue efforts to arrest the drop in voice revenues, which is suffering an industry-wide decline due to the increasingly higher takeup of data services consumed through smartphones and tablets. "We are not so worried about voice (cannibalisation). There will be substitution for sure, but most of our subscribers have kept their voice and still buy data, some have 2 or even 3 devices," CEO Datuk Seri Shazali Ramly said. (StarBiz)



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