Maxis share price down on network termination by U Mobile

PETALING JAYA: Maxis Bhd saw its share price drop by 4 sen or 0.72% today, after the group said the terminated 3G radio access network sharing and alliance agreement (NSA) with U Mobile contributes less than 3% of revenue in 2016.

Maxis said in a filing with the stock exchange last Friday, the NSA only contributed less than 3% to its audited revenue for 2015 and 2016.

At 12.30pm, Maxis shares lost 4 sen to RM5.51, with a market capitalisation of RM43.04 billion. A total of 4.73 million shares changed hands.

The termination will take place progressively in stages over a period of 18 months with completion on Dec 27, 2018.

U Mobile had said the network termination is in line with its growing subscriber base and it will be more appropriate to focus on expanding its own network, especially with the additional spectrum of 2x15MHz of 1800MHz bands and 2x5MHz of 900MHz bands that were awarded by the government last year.