TeleChoice International has secured a contract renewal valued at up to S$1.3 billion from U Mobile, which takes effect from February 2027. TeleChoice’s wholly-owned subsidiary Planet Telecoms Managed Services (PTMS) will continue to provide end-to-end supply chain services to U Mobile for a term of three years, with an option to extend for a further two years.
TeleChoice Re-Elected For U Mobile’s Supply Chain Services
The renewed TeleChoice contract carries a higher annual value than the original agreement, which was announced in February 2024 and valued at S$500 million over three years. The expanded scope reflects the growing scale of the partnership, with the number of touchpoints PTMS manages across Malaysia having grown from over 600 to more than 1,000 since the partnership began.
Under the agreement, PTMS manages U Mobile’s device supply chain from end to end, covering the full product lifecycle. Its services include stock management, warehousing, order fulfilment and distribution. PTMS also finances device inventories and provides insurance coverage for deliveries, with real-time data used to monitor performance and manage stock levels.
Since the partnership began, PTMS has broadened U Mobile’s product portfolio to include new brands and models, accessories and wearables. It ensures products remain available across U Mobile’s touchpoints, particularly during campaigns and promotional periods. Going forward, the company plans to invest further in its people, systems and technology, including exploring the use of AI in demand forecasting and inventory planning.
The renewal is expected to have a positive impact on TeleChoice’s consolidated net tangible assets per share and consolidated earnings per share for the financial year ending 31 December 2027. The U Mobile partnership has been a significant contributor to TeleChoice’s Personal Communications Solutions Services Division.
Pokdepinion: A S$1.3 billion handshake is a pretty loud way of saying the first three years went well.
