afford, adding to the weakness of incapability of capital strength to win over a huge opportunity in the marketplace. But as the saying says, "in every problems there lies opportunities", the scenario leads to so many strategic moves among the telcos. It has been the talk of town that soon there will be a big event of marriage between Digi and Celcom. A huge change is going to take place in the landscape of telecommunication industry in Malaysia. Those strategic moves were the evidence of how companies could be to bring out their ability to compete, and conquer, and such an interesting piece of real event where reflection on Organizational Change and Development could be realised and discussed. Below are few newspapers releases that student could use in attempting to answer the assessment questions with regards to Organizational Change and Development. News 1: Celcom-Digi merger receives MCMC clearance Decision paves the way for parties to advance to next phase of regulatory and shareholder approvals Kuala Lumpur, 29 June 2022 - The Board of Directors of Axiata Group Berhad ("Axiata") and Digi.Com Berhad ("Digi") announced in filings to Bursa Malaysia today that the parties have received a Notice of No Objection ("Notice") from the Malaysian Communications and Multimedia Commission ("MCMC") to proceed with the proposed merger of Celcom's and Digi's telco operations ("MergeCo"). The merger application for Celcom and Digi was submitted to MCMC in July 2021. The issuance of the Notice follows a substantive assessment of the proposed merger application, and due consideration of Axiata's and Digi's ("the parties") response to MCMC's Statement of Issues ("SOI") released earlier in April 2022. The Notice signifies that MCMC does not object the proposed merger and that the parties to advance to the next phase of the proposed transaction. MergeCO well-poised to accelerate the nation's digital aspirations and spur new growth opportunities for all Axiata and Digi are positive on the prospects of the proposed merger having passed a significant milestone in the ongoing approval process. Upon completion of the transaction, the 4 parties look forward to realising the potential of the proposed merged company, which is expected to culminate in a stronger capacity to drive digitalisation in society broadly, for consumers, businesses, the partner ecosystem and for the development of local talent. MergeCo will provide better network quality and coverage as it will be primed to invest in network expansion to support growing demand for data and digitalisation. In addition, as societies and businesses increasingly turn to digitalisation for productivity and efficiency gains, MergeCo will be well-placed to drive 5G solutions, catalyse new growth opportunities for large enterprises and SMEs, and attract and partner global digital giants in support of JENDELA and MyDigital aspirations. MergeCo will also leverage on combined economies of scale to deliver benefits to customers through strengthened core distribution, improved network operations, and efficiencies realised from operational activities. In further unlocking the nation's digital potential, MergeCo has proposed to invest up to RM250 million over five years to build a world-class Innovation Center in Kuala Lumpur to keep Malaysia at the forefront of the global digital evolution. The Innovation Center will be pivotal in advancing extensive research and development leveraging 5G, AI and IOT technology. In addition to catalysing and nurturing a knowledge-based workforce in line with Malaysia's digital aspirations, local digital start-ups will be also able to leverage the platform to leapfrog their technology and innovation capabilities. To address the preliminary issues identified by the MCMC, the parties have offered a set of undertakings to ensure that consumers in Malaysia will continue to benefit from effective competition in the telecommunications sector. The undertakings include: 1. Divestment of 70MHz of MergeCo's spectrum across 1800MHz,2100MHz, and 2600 MHz, the first band to be returned to the MCMC within 24 months after completion of the merger, and the second and third bands to be returned within 36 months after completion of the merger; 2. Establishing a separate independent business unit for MVNO wholesale business under MergeCo within six months after completion of the merger and ensuring continuity of access to wholesale services for MVNOs at terms no worse off than existing agreements; 3. Divestment of Celcom's "Yoodo" brand within the stipulated time after completion of the merger as committed to MCMC, which currently offers fully digital and customisable retail mobile plans to subscribers; Enabling non-exclusive distributors in the Sabah, Sarawak, 5 Kelantan, Pahang and Terengganu regions by the end of Year 3 after completion of the merger; and 4. Positioning the existing Celcom and Digi brands as products under a single MergeCo corporate brand by the end of Year 2 after completion of the merger. The parties have assured that they will place the highest priority on minimising any potential service quality impact to customers, while delivering these undertakings. Tan Sri Shahril Ridza Ridzuan, the Chairman of Axiata said, "We thank the MCMC for their approval and guidance to reach this significant milestone. We reiterate our commitment to ensure that the proposed merger delivers benefits to the nation as a whole. It is aimed at combining the best of Celcom and Digi so that our customers and community have good options in accessing solutions to participate more equitably in this digital era." "Delivering improved network and connectivity for our customers is clearly an imperative. As two companies with a strong track record in contributing towards nation-building, we are also excited about the digital inclusion and growth opportunities that MergeCo and the proposed Innovation Centre will catalyse. We look forward to playing an active role in encouraging national competitiveness through the provision of world-class connectivity and research platforms whilst also supporting the nation's entrepreneurs and digital talents in the race to confidently position Malaysia for growth in the digital economy." "Today brings us a step closer to creating a strong Malaysian company with the combined scale, experience, network, and innovation leadership to drive Malaysia's digital growth in the coming years. Together, Celcom and Digi will bring better innovations to meet our customers' growing digital needs and for all participating in the digital economy to capture new growth opportunities in a fast-changing world. We will now focus on completing the remaining necessary steps to conclude this transaction and work on delivering a seamless integration programme to bring the vision and value of the merged entity to reality for the benefit of many," said Haakon Bruaset Kjoel, Chair of the Board of Directors of Digi.Com Bhd. "We have reached a positive milestone in the Malaysian merger process with this regulatory clearance. We are excited to move towards realising the full potential of bringing these two companies together, establishing a commercially stronger and more resilient digital service provider. With the proposed structural moves in Thailand and Malaysia, Telenor has a clear ambition to create future-fit companies that can better support ambitious national digital aspirations and bring new, advanced services to consumers across the region," said Jrgen Arentz Rostrup, Executive Vice President and Head of Telenor Asia. The parties believe that the strategic and financial rationale of the proposed transaction represents a compelling value-creation opportunity for all stakeholders. The parties remain confident that MergeCo will realise the full value of the estimated synergies, and that the combined entities will establish a stronger, more resilient digital converged services provider well-positioned to respond to shifting market conditions and to drive Malaysia's digital ambitions forward. The completion of the proposed transaction will now be subject to the approval of the Securities Commission, Bursa Malaysia, by both Axiata and Digi shareholders, and other customary terms and conditions. The parties estimate to complete the proposed merger within the second half of 2022 as announced previously. At completion, Axiata and Telenor will hold equal ownership of 33.1 percent each in the new merged company, which will be named Celcom Digi Berhad and will continue to be listed on Bursa Malaysia. News 2: Celcom-Digi merger to enable better end user experience Monday, July 11th, 2022 at Business | News With the aim set by the Malaysian Communications and Multimedia Commission (MCMC) for the amalgamation of the fifth-generation network (5G) into 80 per cent of Malaysians' lives by 2024, the Celcom Digi Bhd merger announcement would undoubtedly enhance and be the precursor for a better end-user cellular experience said an academician. Universiti Teknologi Malaysia (UTM) School of Electrical Engineering lecturer, Leow, who is also a research fellow with the UTM Wireless Communication Centre, said the infrastructure from these two companies would undoubtedly be a plus point from the cellular user point of view. He said the inculcation of 5G enhances the limitation of the existing technologies - the 4G, in terms of bandwidth, connection density as well as latency, as demonstrated during the COVID-19 pandemic where many users access the Internet. "Whenever a network is busy with too many users, there will be bottlenecks in the network. On capacity ratio, we don't have enough bandwidth to cater to users' demand and by the end of the day, users' experience will be affected," he said. On the 5G rollout, although comparatively slower than other developed countries which started in 2019, Malaysia has to deal with the challenges other countries may not have. Citing South Korea and Singapore as examples, Leow said they have very extensive and comprehensive fibre connectivity and just needed to install 5G bay stations as fibre connections are there to support it and Singapore's geographical terrain attributes made it easier to implement. He said the country's 5G rollout will take some time, particularly in areas where the nation doesn't have extensive availability of high bandwidth fibre links and may need additional time to construct fibre networks to provide the connectivity to 5G bay stations. "We already have commercial 5G services in Malaysia since 2021 in several major cities and it will be coming to different parts of Malaysia eventually. Based on MCMC's plan to have 80 per cent population to be 5G-enabled by 2024 , we are on track although we started a bit later compared to other developed countries," he added. - BERNAMA News 3: Malaysia govt, telcos on collision course over 5G wholesale plan Date: 5/25/2022 The Malaysian government is on a collision course with domestic mobile operators over its 5G wholesale network plan. Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz has rejected an appeal by the telcos to allow them to take a controlling stake in the new network, the Malay Mail reported Monday. He has told them that he will not extend the June 30 deadline for investors to sign up for the scheme. The operators - Digi Telecom, Celcom Axiata, Maxis and U Mobile - have told the government that a "passive minority" stake in the project would not allow them to safeguard their investment. The Ministry of Finance has offered nine Malaysian telcos a combined 70% stake in the newly-formed state-backed wholesaler, Digital Nasional Berhad (DNB). So far, only two smaller operators, Telekom Malaysia and YTL Communications, have accepted. In a letter to the minister earlier this month, the four incumbents asked that they be allowed to acquire 51% of DNB, Reuters revealed last week. 8 "The MoF-proposed role as minority shareholders does not appear to make it feasible for any of us to add value as shareholders and is not commensurate to our contribution to the industry, or our duty to our shareholders and customers," they said. Repeated roadblocks The impasse threatens to further delay Malaysia's path to commercial 5G, which has hit repeated roadblocks as the government has attempted to shoehorn the industry into its single wholesale network plan. Alternatively, if Aziz is genuinely set on calling the telcos' bluff, Malaysia will be trying to implement 5G without the support of the existing network operators. That is an approach even more radical than the wholesale network concept. Reportedly, if the operators don't take a stake in the DNB network, Aziz is willing to allow investment from private equity firms. His refusal to allow the four incumbents isn't his first rebuff. Last December, he rejected their call for the issue of a second wholesale license (see Malaysia 5G network boss blames 'posturing' MNOs for delays). Besides the ownership structure of DNB, the four telcos are also unhappy with the proposed interconnection terms for access to the wholesale network, that they may need to lease DNB instead of having autonomy of running their own network. Quick References: FIVE-YEAR GROUP FINANCIAL SUMMARY Ooerational Hiahilehts Figure 1: Celcom Axiata's 5 year Group Financial Summary E Vadu Einanaial Cummave Figure 2: Digi's Financial Report Summary QUESTION 1: 10 MARKS Based on the materials given, describe and specify the most obvious OCD intervention formulated by the soon to happen merging exercise. Justify your answer and support you answer with clear evidence(s) within the articles given. afford, adding to the weakness of incapability of capital strength to win over a huge opportunity in the marketplace. But as the saying says, "in every problems there lies opportunities", the scenario leads to so many strategic moves among the telcos. It has been the talk of town that soon there will be a big event of marriage between Digi and Celcom. A huge change is going to take place in the landscape of telecommunication industry in Malaysia. Those strategic moves were the evidence of how companies could be to bring out their ability to compete, and conquer, and such an interesting piece of real event where reflection on Organizational Change and Development could be realised and discussed. Below are few newspapers releases that student could use in attempting to answer the assessment questions with regards to Organizational Change and Development. News 1: Celcom-Digi merger receives MCMC clearance Decision paves the way for parties to advance to next phase of regulatory and shareholder approvals Kuala Lumpur, 29 June 2022 - The Board of Directors of Axiata Group Berhad ("Axiata") and Digi.Com Berhad ("Digi") announced in filings to Bursa Malaysia today that the parties have received a Notice of No Objection ("Notice") from the Malaysian Communications and Multimedia Commission ("MCMC") to proceed with the proposed merger of Celcom's and Digi's telco operations ("MergeCo"). The merger application for Celcom and Digi was submitted to MCMC in July 2021. The issuance of the Notice follows a substantive assessment of the proposed merger application, and due consideration of Axiata's and Digi's ("the parties") response to MCMC's Statement of Issues ("SOI") released earlier in April 2022. The Notice signifies that MCMC does not object the proposed merger and that the parties to advance to the next phase of the proposed transaction. MergeCO well-poised to accelerate the nation's digital aspirations and spur new growth opportunities for all Axiata and Digi are positive on the prospects of the proposed merger having passed a significant milestone in the ongoing approval process. Upon completion of the transaction, the 4 parties look forward to realising the potential of the proposed merged company, which is expected to culminate in a stronger capacity to drive digitalisation in society broadly, for consumers, businesses, the partner ecosystem and for the development of local talent. MergeCo will provide better network quality and coverage as it will be primed to invest in network expansion to support growing demand for data and digitalisation. In addition, as societies and businesses increasingly turn to digitalisation for productivity and efficiency gains, MergeCo will be well-placed to drive 5G solutions, catalyse new growth opportunities for large enterprises and SMEs, and attract and partner global digital giants in support of JENDELA and MyDigital aspirations. MergeCo will also leverage on combined economies of scale to deliver benefits to customers through strengthened core distribution, improved network operations, and efficiencies realised from operational activities. In further unlocking the nation's digital potential, MergeCo has proposed to invest up to RM250 million over five years to build a world-class Innovation Center in Kuala Lumpur to keep Malaysia at the forefront of the global digital evolution. The Innovation Center will be pivotal in advancing extensive research and development leveraging 5G, AI and IOT technology. In addition to catalysing and nurturing a knowledge-based workforce in line with Malaysia's digital aspirations, local digital start-ups will be also able to leverage the platform to leapfrog their technology and innovation capabilities. To address the preliminary issues identified by the MCMC, the parties have offered a set of undertakings to ensure that consumers in Malaysia will continue to benefit from effective competition in the telecommunications sector. The undertakings include: 1. Divestment of 70MHz of MergeCo's spectrum across 1800MHz,2100MHz, and 2600 MHz, the first band to be returned to the MCMC within 24 months after completion of the merger, and the second and third bands to be returned within 36 months after completion of the merger; 2. Establishing a separate independent business unit for MVNO wholesale business under MergeCo within six months after completion of the merger and ensuring continuity of access to wholesale services for MVNOs at terms no worse off than existing agreements; 3. Divestment of Celcom's "Yoodo" brand within the stipulated time after completion of the merger as committed to MCMC, which currently offers fully digital and customisable retail mobile plans to subscribers; Enabling non-exclusive distributors in the Sabah, Sarawak, 5 Kelantan, Pahang and Terengganu regions by the end of Year 3 after completion of the merger; and 4. Positioning the existing Celcom and Digi brands as products under a single MergeCo corporate brand by the end of Year 2 after completion of the merger. The parties have assured that they will place the highest priority on minimising any potential service quality impact to customers, while delivering these undertakings. Tan Sri Shahril Ridza Ridzuan, the Chairman of Axiata said, "We thank the MCMC for their approval and guidance to reach this significant milestone. We reiterate our commitment to ensure that the proposed merger delivers benefits to the nation as a whole. It is aimed at combining the best of Celcom and Digi so that our customers and community have good options in accessing solutions to participate more equitably in this digital era." "Delivering improved network and connectivity for our customers is clearly an imperative. As two companies with a strong track record in contributing towards nation-building, we are also excited about the digital inclusion and growth opportunities that MergeCo and the proposed Innovation Centre will catalyse. We look forward to playing an active role in encouraging national competitiveness through the provision of world-class connectivity and research platforms whilst also supporting the nation's entrepreneurs and digital talents in the race to confidently position Malaysia for growth in the digital economy." "Today brings us a step closer to creating a strong Malaysian company with the combined scale, experience, network, and innovation leadership to drive Malaysia's digital growth in the coming years. Together, Celcom and Digi will bring better innovations to meet our customers' growing digital needs and for all participating in the digital economy to capture new growth opportunities in a fast-changing world. We will now focus on completing the remaining necessary steps to conclude this transaction and work on delivering a seamless integration programme to bring the vision and value of the merged entity to reality for the benefit of many," said Haakon Bruaset Kjoel, Chair of the Board of Directors of Digi.Com Bhd. "We have reached a positive milestone in the Malaysian merger process with this regulatory clearance. We are excited to move towards realising the full potential of bringing these two companies together, establishing a commercially stronger and more resilient digital service provider. With the proposed structural moves in Thailand and Malaysia, Telenor has a clear ambition to create future-fit companies that can better support ambitious national digital aspirations and bring new, advanced services to consumers across the region," said Jrgen Arentz Rostrup, Executive Vice President and Head of Telenor Asia. The parties believe that the strategic and financial rationale of the proposed transaction represents a compelling value-creation opportunity for all stakeholders. The parties remain confident that MergeCo will realise the full value of the estimated synergies, and that the combined entities will establish a stronger, more resilient digital converged services provider well-positioned to respond to shifting market conditions and to drive Malaysia's digital ambitions forward. The completion of the proposed transaction will now be subject to the approval of the Securities Commission, Bursa Malaysia, by both Axiata and Digi shareholders, and other customary terms and conditions. The parties estimate to complete the proposed merger within the second half of 2022 as announced previously. At completion, Axiata and Telenor will hold equal ownership of 33.1 percent each in the new merged company, which will be named Celcom Digi Berhad and will continue to be listed on Bursa Malaysia. News 2: Celcom-Digi merger to enable better end user experience Monday, July 11th, 2022 at Business | News With the aim set by the Malaysian Communications and Multimedia Commission (MCMC) for the amalgamation of the fifth-generation network (5G) into 80 per cent of Malaysians' lives by 2024, the Celcom Digi Bhd merger announcement would undoubtedly enhance and be the precursor for a better end-user cellular experience said an academician. Universiti Teknologi Malaysia (UTM) School of Electrical Engineering lecturer, Leow, who is also a research fellow with the UTM Wireless Communication Centre, said the infrastructure from these two companies would undoubtedly be a plus point from the cellular user point of view. He said the inculcation of 5G enhances the limitation of the existing technologies - the 4G, in terms of bandwidth, connection density as well as latency, as demonstrated during the COVID-19 pandemic where many users access the Internet. "Whenever a network is busy with too many users, there will be bottlenecks in the network. On capacity ratio, we don't have enough bandwidth to cater to users' demand and by the end of the day, users' experience will be affected," he said. On the 5G rollout, although comparatively slower than other developed countries which started in 2019, Malaysia has to deal with the challenges other countries may not have. Citing South Korea and Singapore as examples, Leow said they have very extensive and comprehensive fibre connectivity and just needed to install 5G bay stations as fibre connections are there to support it and Singapore's geographical terrain attributes made it easier to implement. He said the country's 5G rollout will take some time, particularly in areas where the nation doesn't have extensive availability of high bandwidth fibre links and may need additional time to construct fibre networks to provide the connectivity to 5G bay stations. "We already have commercial 5G services in Malaysia since 2021 in several major cities and it will be coming to different parts of Malaysia eventually. Based on MCMC's plan to have 80 per cent population to be 5G-enabled by 2024 , we are on track although we started a bit later compared to other developed countries," he added. - BERNAMA News 3: Malaysia govt, telcos on collision course over 5G wholesale plan Date: 5/25/2022 The Malaysian government is on a collision course with domestic mobile operators over its 5G wholesale network plan. Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz has rejected an appeal by the telcos to allow them to take a controlling stake in the new network, the Malay Mail reported Monday. He has told them that he will not extend the June 30 deadline for investors to sign up for the scheme. The operators - Digi Telecom, Celcom Axiata, Maxis and U Mobile - have told the government that a "passive minority" stake in the project would not allow them to safeguard their investment. The Ministry of Finance has offered nine Malaysian telcos a combined 70% stake in the newly-formed state-backed wholesaler, Digital Nasional Berhad (DNB). So far, only two smaller operators, Telekom Malaysia and YTL Communications, have accepted. In a letter to the minister earlier this month, the four incumbents asked that they be allowed to acquire 51% of DNB, Reuters revealed last week. 8 "The MoF-proposed role as minority shareholders does not appear to make it feasible for any of us to add value as shareholders and is not commensurate to our contribution to the industry, or our duty to our shareholders and customers," they said. Repeated roadblocks The impasse threatens to further delay Malaysia's path to commercial 5G, which has hit repeated roadblocks as the government has attempted to shoehorn the industry into its single wholesale network plan. Alternatively, if Aziz is genuinely set on calling the telcos' bluff, Malaysia will be trying to implement 5G without the support of the existing network operators. That is an approach even more radical than the wholesale network concept. Reportedly, if the operators don't take a stake in the DNB network, Aziz is willing to allow investment from private equity firms. His refusal to allow the four incumbents isn't his first rebuff. Last December, he rejected their call for the issue of a second wholesale license (see Malaysia 5G network boss blames 'posturing' MNOs for delays). Besides the ownership structure of DNB, the four telcos are also unhappy with the proposed interconnection terms for access to the wholesale network, that they may need to lease DNB instead of having autonomy of running their own network. Quick References: FIVE-YEAR GROUP FINANCIAL SUMMARY Ooerational Hiahilehts Figure 1: Celcom Axiata's 5 year Group Financial Summary E Vadu Einanaial Cummave Figure 2: Digi's Financial Report Summary QUESTION 1: 10 MARKS Based on the materials given, describe and specify the most obvious OCD intervention formulated by the soon to happen merging exercise. Justify your answer and support you answer with clear evidence(s) within the articles given