SK Telecom (NYSE:SKM) announced today that it made another investment in Packet One Networks Sdn Bhd (P1), Malaysia’s leading WiMAX provider.

Following its initial investment of USD 100 million in July 2010, SK Telecom decided to invest an additional MYR 50 million (approximately USD 16.5 million) as P1 is projected to maintain its strong growth in the Malaysia’s broadband market, which is expected to grow threefold in the next two years. 

P1 started off as Malaysia’s first WiMAX operator in 2008 and successfully secured 274,000 subscribers, or 7% of WiMAX market share, as of the end of 2010 and annual revenue of USD 68 million in 2010. Continuing its strong growth, P1, at present, has over 300,000 subscribers.

Although there will be some changes to the equity ownership since the rights offering has not been completed yet, SK Telecom (existing stake of 25.8%) is expected to remain the second largest shareholder after Green Packet, a WiMAX equipment and solutions company (existing stake of 57.1%). 

P1 plans to use SK Telecom’s capability in network optimization, customer service and marketing to provide a higher quality of service in Malaysia, thereby covering 65% of the total population and securing 1 million subscribers in 2013.

SK Telecom said the additional investment in P1 carries significant meaning as it will be able to engage in leading wireless network business in an emerging market and secure a bridgehead for developing telecommunications business opportunities in Southeast Asia.