KUALA LUMPUR: A large telecommunications (telco) provider from China is believed to be working on a plan with XOX Bhd to build the fifth-generation (5G) wireless mobile network in Malaysia, with an investment of up to RM10 billion.
Sources with knowledge on the matter said that the deal was being brokered by a China-based venture capitalist and that XOX would receive the letter of intent (LoI) this month.
Officials from XOX were not contactable at press time.
It is understood that the China telco would invest in the infrastructure to roll out the 5G as early as next year.
The names of five telcos have emerged, including Huawai and China Mobile.
5G is a new global wireless standard after 1G, 2G, 3G, and 4G networks.
5G enables a new kind of network that is designed to connect virtually everyone and everything together including machines, objects, and devices.
The United States, China and South Korea, are leading the world in building and deploying 5G technology.
Some of the key players in global 5G infrastructure market include Qualcomm, Samsung, Huawei, Verizon Communications, Cisco, AT& T, ZTE, and China Mobile.
Shares of XOX traded heavily on Friday, surging 47.83 per cent to hit a four-year high of 17 sen in afternoon trade after it announced a micro-finance partnership with Wetek Technology (M) Sdn Bhd.
The stock closed 15 sen, giving the company a market capitalisation of about RM204 million.
It was also the most active stock on Bursa Malaysia with around 824.3 million shares traded, representing a massive increase over its 200-day average trading volume of 31.52 million.
On Friday, XOX said its subsidiary XOX Media Sdn Bhd had inked an agreement with Wetek, to provide micro-financing to the tune of RM1 billion to its existing 2.2 million subscribers in Malaysia.
This service will be extended to individuals and small businesses without access to conventional banking and related services by populating XOX's eWallet for usage in the XOX Digital Marketplace.
XOX chief executive officer Ng Kok Hen had told the New Straits Times that a second tranche was also in the plan and it would be rolled after the successful take-up of the initial RM1 billion.
Wetek director Howard Leung Hao, who is also chairman and CEO of Brilliant (Hong Kong) Holdings Ltd, said the company had formed a partnership with XOX to ride on the latter's strong subscriber base.
The other director of Wetek is Liang Zeng, who is an internet entrepreneur and venture capitalist.
It is unclear whether it is Liang Zeng and Leung Hao who are brokering the 5G deal between the Chinese telco and XOX.
Liang Zeng invests and incubates the companies in digital marketing, artificial intelligence and enterprise services.
He has held senior positions as senior vice-president (VP) of Kingdee International Software Group, VP of Microsoft Greater China, and most recently, VP of Baidu Inc. and chief executive officer of Baidu Nuomi.