NTT DoCoMo, KTF Jointly Acquire 33% Stake in Malaysia's U Mobile
December 07, 2007
Aiming to expand their share in the emerging 3G markets including Malaysia, Japanese telecom operator NTT DoCoMo and Korean telecom operator KTF (KT Freetel) announced on December 3 that they will jointly invest US$200 million in U Mobile, a fledgling Malaysian 3G telecom operator. U Mobile obtained a national 3G license in 2006 and is scheduled to launch national 3G service in March 2008.
According to AFX News, the deal is slated for completion in February 2008. Through the acquisition, NTT DoCoMo and KTF will each hold 16.5% stake in U Mobile, whose subscriber base is expected to reach 3.1 million by 2010. With ample experience in 3G mobile communications, the two companies will provide technical and management support to U Mobile. Furthermore, the two companies plan to leverage U Mobile's existing 3G network to promote international roaming services for their respective customers traveling in Malaysia.
NTT DoCoMo currently owns 10% stake in KTF.