Time dotCom plans RM110m capex

Published: 2010/06/28Share PDF




Time dotCom Bhd (TdC) will spend about RM110 million on capital expenditure (capex) this year, with the bulk of investment for the expansion of its network coverage.



Chief executive officer Afzal Abdul Rahim said the company's focus for this year would be on expanding network coverage in key market segments, offering complete end-to-end communication solutions.



"We very much believe in the fixed-broadband business compared with mobile segment which is nearing saturation," he told reporters after the company's annual general meeting in Kuala Lumpur today.



"The growth that we see for the telecommunication industry going forward is the provision of data and Internet broadband services, that is where our focus is," he said.







Consisting of broadband, Internet and managed services, TdC's data business contributed 60 per cent of the company's revenue in 2009 and saw a double-digit growth of 14 per cent year-on-year in the first quarter ended March 31, 2010.



Riding on this growth, Afzal said TdC will edge out the competition by offering innovative data product packages and price plans that emphasised higher bandwidth capacity and service quality to meet the void in the current marketplace.



"We have already rolled out the country's first 50 megabits per second fibre-to-the-home connectivity at Mont Kiara in February this year and it is gaining momentum with an average revenue per user of RM150 per month. The next area will be in Kuala Lumpur city centre around the third quarter this year," he

said.



Afzal said the company was looking at gaining market share in vertical sectors such as wholesale, corporate and government.



The wholesale market segment is a biggest revenue contributor to TdC, with business growing by 29 per cent in 2009 and 39 per cent year-on-year in first quarter this year.



"We have made significant strides in a relatively short period. We now have a healthy balance sheet and more than enough to support our capex. Moving forward, I'm confident that the company is able to grow our market share from 2010 and beyond," he said.



TdC, Malaysia's alternative fixed-line telecommunication solution provider besides Telekom Malaysia Bhd and Maxis Bhd, has about RM175 million in cash to date.



It hosts the country’s most robust fibre-optic network with its 6,000 kilometres of land and submarine cables. -- Bernama



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