KUALA LUMPUR: Telenor is reportedly considering options for its 49 per cent stake in Malaysia’s Digi, amid fierce competition in the country.
According to Bloomberg, Telenor could partner with an Asian operator in a joint venture, or sell the stake, which has a market value of approximately $4.6 billion. The review is at an early stage, and no final decision has been made, said a source.
Telenor said in its Q2 results that markets conditions remained “challenging” in Malaysia, as it saw revenue drop 4 per cent in local currency due to reduced handset sales.
ARPU in the country also decreased by 6 per cent “due to continued price pressure on international traffic and domestic data, combined with decline in voice revenues”, it said in July.
GSMA Intelligence data highlights how ripe competition is in the country between the leading operators in terms of connections.
Digi is the country’s second largest operator, with more than 12.3 million connections as of Q2 2016, trailing behind market leader Maxis with 12.8 million connections. Meanwhile, Number three player Celcom has 12.1 million.
In addition to Malaysia, Telenor has a wide presence across Asia, with operations in India, Pakistan, Bangladesh, Thailand and Myanmar.
