Nextnation: US$7m profit from IT infra project with Indonesia’s Inovisi

KUALA LUMPUR (Jan 17): NEXTNATION COMMUNICATION BHD [] expects cumulative profit of about US$7 million over the
initial period of three years from its IT infrastructure project with Indonesia’s PT Inovisi Infracom, Tbk.
Nextnation said on Tuesday it would sell mobile platform infrastructure hosting and maintenance services to Indonesia’s PT
Inovisi Infracom, Tbk.
Under the heads of agreement inked on Thursday, it would sell to Inovisi an IP interconnection platform to serve telecom
operators offering IP services and an IP bandwidth optimiser, allowing data to be sent out via faster and more consistent IP
networks.
“Inovisi will provide Nextnation a minimum revenue guarantee of not less than US$22.50 million over an initial period of three
years, with an option to extend for another three years subject to overall performance. Nextnation's initial investment
commitment for this Project is estimated at US$5 million.
“The funds will be used to purchase the necessary equipment and to set up the IT infrastructure to fulfil the project's
requirements. From this project, Nextnation targets to achieve a cumulative profit contribution of about US$7 million over the
initial period of three years,” it said.