By BERNAMA / Pic By TMR File

The proposed merger between Telekom Malaysia Bhd (TM) and Axiata Group Bhd “makes sense”, but it is still up to the shareholders to make the final decision, said Celcom Axiata Bhd CEO Michael Kuehner.

He said both TM and Celcom are telco giants which run extremely big networks in the country.

“This need to be maintained, and I can imagine a lot of synergy could come out of a merger,” he told reporters after signing a memorandum of understanding on behalf of Celcom Axiata with Malaysia Airlines Bhd group CEO Captain Izham Ismail in Kuala Lumpur yesterday.

Rumours about a merger between TM and Axiata surfaced since last year after both companies demerged in 2008.

Kuehner, however, said it was difficult to ascertain the outcome of the rumours.

Asked if new market player Yoodo, which will enter the Malaysian market by end of this month, would post a stiff competition to Celcom, Kuehner said he did not think so.

Instead, he said it could make the industry more competitive and offer more choices to the customers.

On the outlook, he said the industry would remain flattish next year as telco companies registered lower revenue for the past three years.