KUALA LUMPUR: Axiata Group Bhd and China's next-generation telecommunication solutions providers Huawei Technologies Co. Ltd are teaming up to search for optimal and mutually beneficial solutions.
Axiata said on Wednesday, Nov 18 an MoU was signed for the proposed collaboration to exploring innovative solutions in TECHNOLOGY [], financing and procurement.
It said the MoU with Huawei, which is a large supplier of telecommunications equipment to Axiata Group, was to improve Axiata's revenue stream in the longer term.
This would be by using more network traffic simulation and faster time-to-market, while reducing costs for the Axiata Group through significant savings in terms of capital and operating expenditures.
"The Axiata-Huawei strategic cooperation will also have the added benefit of realising business efficiencies and competitive advantage through cash flow improvement, risk sharing and timely purchasing.
"In addition, the collaboration with Huawei, particularly on the financing facilities, would enable Axiata to gain a competitive advantage from having access to financing facilities of lower financing cost, innovative financing structures and flexible financing tenure," it added.
Axiata said the emphasis would be to streamline Axiata's procurement process by using global frame agreements between Huawei and the Axiata group which will govern the supply of products and services by Huawei.
It added the MoU was also to look into arranging financing options such as export credit agency backed facility, vendor financing facility, fixed term non-cancellable lease structure and direct loan facility at favourable financing terms for procurement of equipment by Axiata Group from Huawei.
Axiata said the non-binding MOU is valid for a period of two years from the abovementioned date unless mutually terminated.
No comments:
Post a Comment