REDtone bags RM88.57m job from MCMC

by **Cals** Wed 10 Dec 2014, 03:37

REDtone bags RM88.57m job from MCMC

By Yimie Yong / theedgemarkets.com | December 9, 2014 : 8:09 PM MYT

KUALA LUMPUR (Dec 9): REDtone International Bhd ([You must be registered and logged in to see this image.] Financial Dashboard)'s wholly-owned subsidiary, REDtone Marketing Sdn Bhd (RMSB), has bagged a RM88.57 million contract from the Malaysian Communications and Multimedia Commission (MCMC) to build, operate and maintain radio access network (RAN) infrastructure in rural areas in Sarawak and Johor.

In a filing with Bursa Malaysia today, REDtone said RMSB today received a letter of award from MCMC for the proposed job as part of MCMC’s Time 3 Programme which is aimed at further providing voice and data connectivity in rural areas of the country.

Under the deal, RMSB is responsible for completing the services within 35 days from notification from the designated universal service providers that the tower and its associated site/facilities are ready for RMSB to commence work to build the RAN infrastructure.

"RMSB will work with at least three specific public cellular network providers to enable them to offer cellular services to their end customers," said REDtone.

The company will also provide maintenance and operation support services for three years from the completion of the services.

REDtone said the contract is expected to contribute positively to the net assets of the group for the financial year ending May 31, 2015 and the next two financial years.

"The contract is not expected to have material effect on the gearing of REDtone Group as it will be funded mainly from internal funds and some short-term bank facilities," it added.
[size=14]REDtone shares closed up 1.4% at 72.5 sen today, bringing a market capitalisation of RM375.25 million. [/size]