Malaysia will decide soon on the allocation of the country’s fifth generation (5G) spectrum band which is important to maximise usage nationwide.
Deputy Communications and Multimedia Minister Datuk Zahidi Zainul Abidin said the government is still discussing whether to allocate the 700 MHz spectrum, the pioneering spectrum for the implementation of the 5G network to a consortium or directly to individual licensees.
Zahidi said priority will be given to telecommunication (telecom) companies with existing subscribers, reported Bernama.
He said this after a visit to the 5G Command Centre at the Langkawi district and land office on Saturday.
No wonder XOX Bhd, which has 2.2 million subscribers now and which is increasing rapidly on a day-to-day basis is making its way into the 5G wireless mobile network business here in a venture with one of China’s top telecommunications (telecom) groups.
There are only three top players in China – China Mobile, China Telecom, or China Unicom.
XOX chief executive officer Ng Kok Hen had said one of the telecom groups had approached the company to develop a 5G spectrum in Malaysia and that planning is underway.
The Chinese telecom group is expected to invest up to RM10 billion to develop the infrastructure over five to six years.
It is clear now the intention of a venture capitalist or equity fund in China which is eyeing a substantial stake in XOX.
Also, it is not surprising that XOX has attracted a new substantial, Daniel Tam, who is associated with Hong Kong billionaire Li Ka-Shing.
Tam now controls 8.22 per cent of XOX.
In a latest filing with Bursa Malaysia, XOX said Tam acquired 20 million shares in the company via open market transaction on July 24.
A day earlier, Tam acquired 120 million shares via the company’s Private Placement granting him 7.05 per cent control of the company.
The stock traded heavily on Friday with 546 million shares exchanging hands. XOX rose to 20.5 sen in early morning trade, and closed the day unchanged at 18.5 sen.
Tam’s entry into XOX raises some questions as to whether he is buying the shares for himself to ride on the company’s 5G potential, or is he acquiring them as a proxy for Li Ka-Shing, also known as “Superman”.
Just imagine the potential in XOX as it develops the 5G spectrum and also the company’s indirect link to Ka-Shing! We can expect XOX to be at par with some of the biggest local telecom companies in Malaysia which are also eyeing to develop the GF spectrum.
Tam is linked to Ka-Shing via their shareholding in a large Hong Kong-listed investment group, in which the billionaire holds a substantial stake. Tam is a director of the group.
According to Forbes, Li Ka-Shing has a networth of US$26.5 billion as of July 21, 2020 and he is one of the most influential businessmen in Asia. The billionaire retired as chairman of CK Hutchison Holdings and CK Asset Holdings in May 2018 but remains senior advisor.
