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The rationalisation will take effect on 15 October 2005, and from that date onwards, the companies will operate as follows:-

a) Celcom’s subscribers will be transferred to Celcom Mobile, and the latter will provide mobile communications services and value added services to these subscribers in addition to Celcom Mobile’s current subscriber base;
b) Celcom Mobile will undertake all activities relating to marketing the mobile communications services and the services will be branded as "Celcom” products;
c) Celcom’s contracts relating to the marketing of mobile communications services and content provision will be novated to Celcom Mobile;
d) Celcom will continue to manage and operate its existing network and Celcom will provide network capacity to Celcom Mobile pursuant to a Network Capacity and Services Agreement which was signed concurrently with the Master Agreement;
e) There will be no transfer of network facilities or equipment and Celcom and Celcom Mobile will each retain their respective individual licences for network facilities and network services and class licence for applications services.

This rationalisation will not result in any change to the corporate structure of Celcom or any of its subsidiaries nor will it affect the quality of services and coverage which subscribers of Celcom and Celcom Mobile currently enjoy.

This rationalisation will not have any adverse material effect on TM’s consolidated earnings for the financial year ending 31 December 2005.