Mobile operator Celcom Bhd is on track to complete its merger with Telekom Malaysia Bhd's cellular operator TM Cellular by March next year, a top official said today.

"We hope in first quarter to complete the merger. That's the target date," Celcom group chief executive Ramli Abbas said.

"I'm very happy with the way things are, we are progressing," he told reporters, adding he did not expect any changes in valuations.

State-owned communications giant Telekom Malaysia will increase its hold on the country's mobile phone sector after selling TM Cellular to Celcom for RM1.68 billion in exchange for new shares.

Pricing strategy

The deal inked last month ended months of negotiations and sealed Telekom's control over Celcom, Malaysia's second top mobile phone operator.

Ramli said a lot of work had to be done on a few areas including pricing strategy.

German operator Deutsche Telekom AG, which holds an eight percent stake in Celcom and was understood to have veto rights, earlier objected against the merger but Celcom has said it did not need Deutsche's consent for the deal.

The merger could create the country's biggest mobile phone entity with a subscriber base of more than three million and a 40 percent market share.

The new group will overtake top operator Maxis Communications, which signed a deal in September worth up to RM1.6 billion to buy Time dotCom Bhd's cellular unit to boost its subscriber base by some 650,000. AFP