DiGi-Time DotCom Merger

It has been quite some time that we heard about DiGi.Com Bhd and Time dotCom Bhd (TDC) going to merge but there is no official news from both parties until yesterday. The merger will see DiGi gaining access to the much needed 3G spectrum that it was denied in the last 3G bidding exercise and at the same time have access to TDC’s fibre optic network. Currently, DiGi offers EDGE network which is very much slower than 3G. Gaining access to 3G spectrum, DiGi can compete with other operators like Maxis and Celcom.

However in short term, the deal won’t make any significant effect on DiGi earning and investors act negatively because TDC is a lost making company. DiGi shares fell 80 sen to RM23.60 while TDC lost 2.5 sen to 87 sen. Time Engineering Bhd, which owns 33% in TDC, fell 13 sen to 78 sen yesterday.