Telekom decides not to buy Jaring

The Star - Tuesday, 15 May, 2001  Page 1

KUALA LUMPUR: Telekom Malaysia has called off its proposal to acquire the country's main Internet service provider, Jaring.  Telekom, in a reply to the KLSE's query, said a preliminary assessment was carried out to determine the possibility of acquiring Jaring.

"After further assessment, the company has decided not to proceed with the proposal to acquire Jaring," Bernama quoted Telekom as saying in a statement.

Earlier this year, Telekom and Mimos Bhd were said to be in discussions over the proposed acquisition of Jaring by Telekom.  Telekom, which also provides Internet access through its TMNet network, had intended to acquire Jaring to place itself as the number one ISP in the country.

Jaring - owned by Mimos Bhd, the Government's information technology research arm - is believed to hay c about 800,000 subscribers.  However, the proposal came under fire from many Internet users, who feared that the acquisition may reduce competition among the ISPs.

Mimos chief operating officer Dr Mohamed Awang-Lah had said Mimos faced stiff challenge in the ISP market, primarily from telecommunications network providers.

Mimos does not own and operate network facilities for Jaring to ride on. Instead, it leases capacity from telecommunication network operators - believed to be primarily from Telekom.