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Spice Receives NLD, ILD Licences

2007-05-17

17 May 2007, Kuala Lumpur -- Telekom Malaysia Berhad (TM), the emerging leader in Asian communications with operations in nine Asian countries, announced today that its associate company in India, Spice Communications Limited (Spice), has received the nod to provide National and International Long Distance (NLD / ILD) services.

The NLD / ILD licences were obtained from the Department of Telecom (DoT) on 11 May 2007. Spice had in August 2006 applied for both licences. Its application for licences in 20 circles for a pan-Indian presence remains pending.

"We are delighted with this piece of news," said Yusof Annuar Yaacob, Chief Executive Officer of TM International Sdn Bhd. TM has a 49 percent stake in Spice through TMI India Limited, a wholly-owned subsidiary of TM's international investment holding company, TM International Sdn Bhd.

Spice, which commenced operations in 1997 as a cellular services provider in the states of Punjab and Karnataka in India, is required to pay the licence fee and deposit of USD10 million within 30 days of attaining the licence.

Yusof explained that Spice plans to launch international long distance services by the second quarter of 2007, leveraging on TM's international points of presence (POPs) - to distribute its traffic to the rest of the world. Spice will utilise its ILD gateway and its existing two NLD POPs to distribute traffic to all over India.

"Spice plans to ride on TM's ILD infrastructure to tap into the ILD market. As part of the bigger TM family and because of its relationship with TM, Spice has access to TM's infrastructure, apart from access to TM's management and operations expertise," Yusof added.

Meanwhile, commenting on the news, Dato' Abdul Wahid Omar, Group CEO of TM said: "These licences will enable Spice to capitalize on the growing demand for communication services in India, a rapidly growing market. TM looks at this development with excitement and enthusiasm."

Spice's ability to leverage on TM's global connectivity exemplifies the synergy that exists between TM's international as well as domestic operations. TM offers a comprehensive range of communication services and solutions in fixed-line, mobile, data and broadband. This is made possible via TM's extensive infrastructure investments in major submarine cable networks, satellite connectivity, and TM Points of Presence (POP) in US, UK, Singapore, Hong Kong, Egypt and Bahrain. In addition, TM also has co-location facilities at major data centres and tele-houses globally.

About TM

Telekom Malaysia Berhad (TM), a leading regional information and communications group, offers a comprehensive range of communication services and solutions in fixed-line, mobile, data and broadband. As one of the largest listed companies on Bursa Malaysia with an operating revenue of more than RM16 billion, TM is driven to deliver value to its stakeholders in a highly competitive environment.

The Group places emphasis on continuing customer service quality enhancements and innovations. Currently, with investments and operations in 13 countries around Asia and globally, TM is focused on sustainable growth in both the local and international markets.

On the Corporate Social Responsibility (CSR) front, the Group has always been a major corporate contributor towards responsible activities in the belief that these practices are a fundamental tenet of good corporate governance. The Group promotes 3 major platforms i.e. education, sports development and community/nation-building. Under education, TM has spent some RM800 million to develop Multimedia University with more than 20,000 students. TM has also provided scholarships to over 10,000 graduates pursuing academic programmes locally and overseas. On the sports front, TM is actively contributing towards the upliftment of football at all levels while under the community/nation-building platform, the Group contributes towards causes that bring value to the community and nation at large.

For further information on TM, visit www.tm.com.my.

About Spice Telecom

Spice Telecom, the brand name of Spice Communications Limited, is presently operating Cellular Phone Services in the states of Punjab and Karnataka. Considered as one of the best service providers of mobile telephony in India, Spice Telecom is a flagship company of MCorp Global (www.mcorpglobal.com) a pioneer in introducing cellular mobile telephone services in India and has interests in the fields of Information, Communication and Entertainment (ICE). Launched over nine years ago, Spice's cellular services have a strong customer base of over 2.45 million as at end 2006 in the challenging and lucrative Punjab and Karnataka markets.

For further information on Spice, visit www.spiceindia.com.