South Korea’s mobile service provider KT Freetel and Japan-based NTT DoCoMo have signed an agreement to jointly acquire 33% of Malaysian 3G mobile carrier U Mobile, which is scheduled to launch commercial service in 2008.
Both the companies are expected to invest $100m each to acquire 16.5% in the mobile operator, to expand their services in Malaysia. Further, DoCoMo owns a 10.5% stake in KT Freetel.
According to the agreement, the companies will provide technical and management support to U Mobile for its 3G business. The companies declared that they intend to promote roaming services to their customers through U Mobile’s 3G network in Malaysia.
According to the Forbes, Cho Young-Chu, chief executive at KT Freetel said: We plan to consolidate our mid- to long-term growth base by entering overseas markets where investment efficiency is relatively high. By 2015, we plan to earn more than 10% of our total service revenue outside of Korea.
DoCoMo plans to expand its sources of income after reporting seven quarters of declining profit. It started selling handsets compatible with GSM system to encourage customers to use their phones overseas, according to Bloomberg.
Source: ComputerWire daily updates