Axiata Group Berhad (Axiata), one of Asia’s largest telecommunications companies, has entered into strategic global framework arrangements with several vendors including Ericsson, Huawei, NEC and SIAE.
In keeping with global best practices, the agreements will establish a streamlined procurement platform which will realize business efficiencies and competitive advantage through cash flow improvement and timely purchasing. The agreement will also enable Axiata to leverage on its volume, across five countries in the region through Group pricing arrangements covering all Axiata markets, with expected savings of USD100 million over a three year period from implementation.
Specifically, the Axiata-global framework agreement will provide the Axiata group of Companies (OpCos) a common platform for the purchases of network equipment and other telecommunications products as well as the provision of related works and services from the selected vendors.
This cooperation, will involve the regular exchange of information on technical and technology areas relating to products, works and services purchased by the Axiata Companies. Axiata will therefore have better visibility of each vendor’s roadmap and be able to leverage off this knowledge base and target spend more efficiently.
President and Group Chief Executive Officer of Axiata, Dato’ Sri Jamaludin Ibrahim said “Speed is crucial in the telecommunications industry and this agreement reduces the time required by each of the companies in purchasing products and services thereby translating into faster time to market which will ultimately benefit customers. We look forward to working closely with all our vendors, towards a mutually beneficial agreement”
One of the largest Asian telecommunications companies, Axiata has controlling interests in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia with significant strategic stakes in India and Singapore. In addition, the Malaysian grown holding company has a stake in non-mobile telecommunication operations in Pakistan.
The Group’s mobile subsidiaries and associates operate under the brand name ‘Celcom’ in Malaysia, ‘XL’ in Indonesia, ‘Dialog’ in Sri Lanka, ‘Robi’ in Bangladesh, ‘Smart’ in Cambodia, ‘Idea’ in India and ‘M1’ in Singapore.