N. Balaganesh, telecom analyst, Frost & Sullivan: -

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N. Balaganesh, telecom analyst, Frost & Sullivan: -

February 15, 2005

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The government's decision to increase the foreign direct investment limit to 74 per cent is likely to benefit existing foreign partners that have already invested in the telecom segment. Most service providers are in spending mode as there is enough opportunity to grow. Other foreign service providers can look for local service providers interested in fresh capital for their spending programmes. Foreign service providers can obtain equity ownership. A timely investment by Telekom Malaysia in Idea Cellular is a great example.