Yoodo, the popular digital telco that allows users the freedom to customise their plan, will cease operations in a couple of months time. According to a notice published on their website, the Yoodo brand will be discontinued from 29 August 2024 as part of the undertakings committed to the Malaysian Communications and Multimedia Commission (MCMC) following the merger of Celcom and Digi.
For now, existing Yoodo customers can continue to enjoy existing Data, Voice and SMS service on the CelcomDigi network without interruptions until further notice. It added that more details including transition options will be shared with customers on 17th June 2024.
We reckon that existing Yoodo customers might be offered options to switch to one of CelcomDigi’s prepaid offerings.
Yoodo is required to be divested within 18 months after CelcomDigi merger is completed
As announced by the MCMC in June 2022, Yoodo which is an MVNO under Celcom, is required to be divested within 18 months after the merger with Digi is completed. The CelcomDigi merger was completed on 30th November 2022 and this month marks the end of the 18-month period.
The divestment is among the requirements set by the MCMC for the CelcomDigi merger to address concerns about reducing competition in the telco industry. Other undertakings required include Celcom and Digi setting up a separate independent business unit to manage their Mobile Virtual Network Operator (MVNO) business to ensure a clear separation from the merged telco retail mobile business.
The divestment of Yoodo includes all tangible and intangible assets including intellectual property rights, employment of staff, contracts, leases and all subscribers. To ensure the continuity of the brand, CelcomDigi must find a new buyer who is independent of Celcom, Digi and its stakeholders. Failing which, they would have to cease Yoodo operations within 3 months of the expiry of the divestiture period, which is August 2024.
In August last year, CelcomDigi CEO Datuk Idham Nawawi revealed there were a lot of interest from various local and international parties to acquire Yoodo. He shared that Yoodo is a very strong brand when it comes to eSports and they hope that the next owner of Yoodo is someone who can take the brand to the next level with the resources to grow the brand.
With the latest announcement, it appears that CelcomDigi has failed to find a new owner to take over the digital telco brand. Yoodo was established by Celcom in 2018 and remains one of the most popular telcos for its affordable and highly customisable plans. They are well known for its 20GB for RM20 offering which is now offered with free 5G access. Yoodo is also one of our top picks for SoyaCincau.com’s best telco of the year.
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