By B.K. SIDHU
bksidhu@thestar.com.my
Quad network offers mobility, voice, data and video
PETALING JAYA: A mobile/cellular gamble may be the next thing that Telekom Malaysia Bhd (TM) will have to consider getting itself into if it wants to enhance its existing triple play offering.
But TM will have to wait till early next year as it had in 2008 signed an agreement with Axiata Group Bhd that forbids it to get involved in the cellular business.
However, early next year it will be free of that bond and it can either get into the cellular business by building a network or work with existing players to offer the missing link which is the cellular/mobile services to complement its triple play offering.
If it so decides then it would be the only operator in the country to offer quadruple or quad play.
Datuk Zamzamzairani ... 'We have options to consider wireless (or cellular) technology to enhance what we have.'
A quadruple-play network is one that offers mobility in addition to the voice, data and video provided by a triple-play network.
TM group chief executive officer Datuk Zamzamzairani Mohd Isa when asked, said “it is too early to talk about it'', however he also added that “we are open to opportunities.''
TM recently launched its high speed broadband services under the UniFi brand name and the company has bundled images via its Internet protocol TV (IPTV) offering. To complement that, it needs to add mobility solutions. UniFi is now available in four areas in the Klang Valley.
“We are excited about UniFi and we will exploit it when the time comes. We have options to consider wireless (or cellular) technology to enhance what we have. To enhance UniFi we could use some other (player's) network, have a technology partner or even build it ourselves (to bundle the services),'' he told StarBiz in an interview recently.
Spectrum-wise, the company is sitting on the 450 and 800 Mhz spectrum, but whether these could be used for fourth generation offerings is unclear should TM decide to build its own network.
But TM's re-entry into the cellular world would also seem odd as it had been in and out of it and the whole idea of the demerger was to have a dedicated cellular company for mobile play.
However, technological advancements and consumer behavioural changes are driving convergence and mobility has become increasingly important in our daily lives.
TM's entry into the cellular world began over three decades ago when it was first to offer cellular services in the country via Atur 450. Then entered Celcom with its cellular service in 1989 and Celcom was once upon a time also majority-owned by TM. In 2003 Celcom went back to TM's stables.
In 1993, to introduce competition into the market place, the Government awarded several licences to operators and in came Mobikom. Here again, TM was shareholder of Mobikom alongside Edaran Otomobil Nasional Bhd and PNB Equity Resource Corp Sdn Bhd.
With so many licences dished out, the industry became fragmented and had to be consolidated. As a result, TM picked up Emartel (formerly owned by MRCB Telecommunications Sdn Bhd) cellular network as part of the industry's consolidation and also ended up with Mobikom and Celcom in 1998 and 2003 respectively. Celcom, by that time, had ended up with national asset management company Pengurusan Danaharta Nasional Bhd.
TM got out of the cellular business in 2008 in a demerger exercise. Its cellular business were hived off to Axiata, but it retained both the 450 and 800 Mhz spectrums. The 800 Mhz spectrum was with Mobikom which was embroiled in a legal suit during the demerger exercise.
“Armed with a high-speed broadband, fixed line business network and IPTV offering, the next wave for TM is get into the cellular business. It would be a waste not to capitalise on the cellular business to complement broadband, video and voice businesses. Of course, it can be done via working partnerships with existing players.
“Whatever it does this time, the offering has to be compelling and the bundling of cellular/mobile services has to complement broadband and voice,'' said an analyst.
While TM may be mulling over its move, Maxis Communications Bhd is all set for triple play with its offer today of a sneak peek into the future of its home offerings including IPTV. Maxis is a mobile player while its sister company, Astro, is into the broadcasting business on which it can rely for images for its IPTV offering.
http://biz.thestar.com.my/news/story.asp?file=%2F2010%2F4%2F28%2Fbusiness%2F6145132&sec=business
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