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NTT DoCoMo Pulls out of Malaysian Mobile Market
(15 Sep 2009, BWCS Staff)In what appears to be a reversal of its recent expansionist policy, NTT DoCoMo is to sell its stake in Malaysian operator U Mobile. According to reports in the Japanese business press DoCoMo will sell its 16.5% holding in the Kuala Lumpur-based company for around US$100 million. U Mobile's parent company is expected to purchase the shares outright. The Nikkei in Japan, reports that a "difference of opinion" with other shareholders over the way the company is being managed has prompted the sale.
It was only last year that DoCoMo and KT Freetel jointly purchased a 33% holding in U Mobile. However, the South Korean operator has already sold its stake in U Mobile back to the Malaysian operator's parent company.
U Mobile started operations in the Spring of last year, offering 3G services across Malaysia, with assistance from DoCoMo and KT Freetel. However, the company has been unable to pry many customers away from its more established rivals.
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