M1 says no bitterness over Starhub-Vodafone partnership

M1 is also quick to defend itself over assumptions that the termination of its contract with Vodafone effective December 31,2011 will bring significant losses to the company.

The telco’s senior communications manager Petrina Teoh reiterated that M1 and Vodafone have “mutually agreed” to not renew the partnership and the entry of StarHub into the scene has nothing to do with it.

Ms. Teoh also expressed disagreement with CIMB estimates published yesterday, Sept 20, which says that cutting line with Vodafone may shave M1’s profits by 5-10% as roaming revenue from Vodafone and its partners form a substantial 8-10% of telco’s total revenue.

“While we are not providing specific guidance, we disagree with CIMB’s estimate on potential impact for M1. In the Vodafone agreement, there are fees to be paid to Vodafone as well. Hence, the net impact is not significant,” she said.

“In addition, there are revenue opportunities for M1 in having roaming arrangements with new partners, which were previously not possible while being a Vodafone partner, added Ms. Teoh.

The story on CIMB’s estimates could be found here.

According to Ms. Teoh, an M1-Vodafone partnership is still possible but of course unlikely in the near future.

StarHub-Vodafone partnership will start the day after the latter’s deal with M1 ends.

“M1 has existing roaming partnership arrangements with operators in all the key countries, and we seek opportunities in tie-ups with new partners,” said Ms. Teoh.

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