KUALA LUMPUR: XOX Bhd has announced its intention to explore the fifth generation (5G) mobile network deployment regionally in partnership with a Chinese telecommunications (telco) group.
Its wholly-owned XOX Media Sdn Bhd signed a Heads of Agreement (HoA) with Jiangsu Sulian Asset Management Co.Ltd (Sulian Capital) and forms a collaboration with the undisclosed Chinese telco for the 5G plan.
The HoA will give Sulian Capital, a Shanghai-based venture capital and advisory firm, a 10 per cent carry on profitability from any eventual partnership signed with the Chinese telco whom it represents, XOX said in a filing with Bursa Malaysia today.
XOX said its local footprint of 2.2 million subscribers and plans to venture into the regional MVNO arena with its One E-Sim deployment represented an interesting proposition for Chinese investors to capture the regional 5G mobile network market.
The company said while the identity of the Chinese telco remained unidentified, an indication by Sulian Capital had narrowed the list to one of the top three players in the Chinese market, namely China Mobile, China Telecom and China Unicom.
"This non-circumvention agreement is designed to secure the introducing party's interest in the 5G project, so that more concrete discussions can take place," XOX said.
It added that the agreement was timely given that the Malaysian government had recently announced that it would decide on the allocation of the country's 5G spectrum band, which is essential to maximise usage and adoption nationwide.
Deputy Communications and Multimedia Minister Datuk Zahidi Zainul Abidin said the government was still discussing whether to allocate the 700 MHz spectrum, the pioneering spectrum for the implementation of the 5G network to a consortium or directly to individual licencees.
Priority would be given to telecom companies with existing subscribers, he said during a visit to the 5G Command Centre at the Langkawi district and land office on Saturday.