Thursday, November 15, 2007

Digi + TimeDotCom

The merge might be a good news for us as Digi has finally secured a 3g license to develop their industry further and become more competitive in the telco industry. But note that TimeDotCom is a lost-making company which was backed by the government and don't have much experience in this field. Why would the government award the 3g license to them at the first place? It’s been 5 years and the company has not done anything to utilize their 3g yet. Now they are just going to 'lease' their license to Digi for 700million for 10 years, and waiting for Digi to 'teach' them how to run the business. Not to mention that Digi will have to pay some fees to them every year as per agreement. So what will you do if you are TimeDotCom? Sit there doing nothing and wait for money to come into their pocket lar!

The good part is that Digi will not only gain the 3g license but also the fiber optics infrastructure (which TimeDotCom owns and was sitting there catching dust) which will give them an upper hand in the future broadband business. They will also have access to develop WiMax technology, which so far haven't seen the light from other companies yet.

We will be seeing a new look from Digi next year, but will it be better or worst? I hope TimeDotCom will not mess up everything.

This article may interest you

Bail out with a piece of paper worth 700million