This telecommunications (telcos) are looking out for local mid-size telcos as it ratchet up efforts to accelerate the commercialisation of superfast 5G technology.
Industry sources said the Chinese group is looking at companies which are under valued and have 5G capability to grow the business and at this moment are targeting TWO local telcos.
“They may target Green Packet Bhd and XOX Bhd. XOX is the cheapest telco stock on Bursa Malaysia and are now one of the fastest growing telcos in Malaysia,” said industry sources with knowledge on the matter.
For information, XOX has about RM35 million cash on hand and currently offers the most competitive and innovative 4G data plan. It is focusing to build 5G infrastructure in the region.
This 5G technology has many to offers and some are:
- to transform the landscape of telecoms as it promises faster download speeds and high network reliability
- will open opportunities for new services, network operation and improved customer experience
- providers will be able to increase both download speeds and monthly data capacity on unlimited plans
- The transition to 5G is expected to generate a windfall for network, infrastructure, and equipment vendors
Three months ago XOX partnered with Advance Tech Communication Sdn Bhd (ATC) to launch 4G and 5G smartphones, with additional satellite communication capabilities termed XPLORE.
Therefore, XOX will be the FIRST MALAYSIAN telco to market and distribute the products to its users across Southeast Asia.
The smartphone, equipped with satellite connectivity and digital mobile radio, will be launched by ATC to XOX users. It is said that XOX’s Executive Director Steve Tan has mentioned that the company aims to provide a unified network plan by integrating XOX’s prepaid plans and messaging platform with ATC’s extensive satellite emergency services. However, Tan was not available for comment at press time.
“XOX is quite strong as a company. It implemented the right marketing strategy as well as innovation ideas and products to see it through the current Covid-19 pandemic and drive the company forward. The success factor for XOX is built by leveraging on the brand, distribution channel with a solid growth of customer base,” said a source close to XOX.
Analysts believe telco stocks will rally as the sector is making handsome profits, amid the Covid-19 pandemic.
XOX is ranked FIFTH in the telco sector and is the Number ONE MVNO company in Malaysia with current customer base almost reaching three million, including prepaid and post paid mobile phone users.
Last month XOX inked an agreement with DGB Asia Bhd to collaborate in the deployment of up to 1,000 next generation AI vending machines. This move is in line with XOX’s strategy to focus on different silos of its business to build up its revenue streams.
Valuations of telcos in Malaysia are becoming attractive again and the sector is expected to grow at an accelerated rate with the current shifts happening in digital landscapes such as 5G, the Internet of Things (IoT) and artificial intelligence (AI).