Maxis plans RM700m broadband expansion

By Goh Thean Eu
Published: 2010/04/01

MAXIS Bhd (6012), the country's largest mobile operator, will be spending more than RM700 million to expand its wireless broadband network this year as it wants to become the number one player in that segment.

"We plan to allocate more than half of our RM1.4 billion capital expenditure on mobile broadband (expansion) this year," said its chief executive officer Sandip Das on the sidelines of Invest Malaysia 2010 in Kuala Lumpur yesterday.
The investment may turn Maxis into the number one player in the mobile broadband segment in terms of coverage.
It hopes to hit 75 to 80 per cent in mobile broadband coverage by year-end. It is understood that most mobile operators' mobile broadband network now covers less than 70 per cent of the population.

"We are clear that we want to be the number one in broadband," Sandip said.
Currently, rival Celcom Axiata Bhd holds the pole position in the mobile broadband subscriber market. However, industry players believe the market leadership is still up for grabs as the market remains underpenetrated and at its infant stage.
The company - which saw its market share decline in the first half of last year - is optimistic that the worst is over and is ready to pounce on its rivals.
"I think Maxis is back with a big bang. We have some small issues in the first half, (and) we have fixed them. We have come back very strongly in the broadband (segment) in the last quarter.
"This is the hype of competition in the country. Malaysia has never seen this kind of competition. You must give credit to Maxis that we still remain number one in most segments such as postpaid, prepaid and value-added services.
"We are also still a very strong Ebitda-margin company. We have 50 per cent Ebitda margin, which is six to seven percentage points better than competitors," said Sandip.
Maxis registered a net profit of RM503 million on revenue of RM2.2 billion for the fourth quarter ended December 31 2010. For the full year, it posted a net profit of RM2.2 billion and revenue of RM8.6 billion.
 
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