Axiata enters into global framework agreement with strategic suppliers


Kuala Lumpur 15 December 2014 - Axiata Group Berhad (Axiata), one of Asia’s largest telecommunications companies, today announced that it 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”

Axiata is 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.

The Group, including its subsidiaries and associates, has over 250 million mobile subscribers in Asia. The Group revenue for 2013 was USD5.8 billion. The Group provides employment to over 20,000 people across Asia. Axiata’s vision is to be a regional champion by 2015 by piecing together the best throughout the region in connectivity, technology and talent, uniting them towards a single goal: Advancing Asia.

Axiata was awarded the Frost & Sullivan 2009, 2010, 2011, 2012, 2013 and 2014 Asia Pacific ICT Award for Best Telecom Group and the Telecom Asia Best Regional Mobile Group 2010 and 2011 for its operations in multiple Asian markets.