Monday, February 28, 2011
Maxis Q4 profit Up
Tuesday March 1, 2011
By LEONG HUNG YEE
hungyee@thestar.com.my
KUALA LUMPUR: Maxis Bhd's net profit rose 21.3% to RM610mil for the fourth quarter ended Dec 31, 2010 from RM503mil previously due to increased contribution from the non-voice segment and a bigger subscriber base.
Its revenue rose to RM2.31bil versus RM2.21bil previously.
“The group recorded a quarter-on-quarter revenue growth of 4% or RM94mil primarily driven by an increase in non-voice revenue by RM84mil or 10% to RM893mil. This was contributed by advanced data services, short message service and wireless broadband businesses, partially offset by reduction in interconnect revenue,” Maxis said in the notes accompanying its financial results.
The telco's profit from operations stood at RM887mil while earnings per share was 8.10 sen against 6.70 sen posted a year ago.
However, Maxis said the comparative figures did not represent a like-for-like comparison of the operational performance of the group because of the accounting treatment adopted for the business combination by Maxis, which was completed on Oct 1, 2009.
Maxis' EBITDA (earnings before interest, taxation, depreciation and amortisation) margin for the fourth quarter was lower at 50.6% against 51.4% in the preceeding quarter.
During the quarter, Maxis also declared an interim dividend of 8 sen per share and also proposed a final dividend of 8 sen per share totalling up to a RM1.2bil payout.
For the full financial year ended Dec 31 (FY10), Maxis' net profit stood at RM2.3bil on revenue of RM8.87bil. Its EBITDA margin for the year stood at 49.8%.
As at Dec 31, the company had a cash and cash equivalent of RM898mil.
Chief executive officer Sandip Das said Maxis had managed to maintain its EBITDA margin close to 50% level despite margin contraction pressure in its voice segment last year.
“The sluggishness or maturity of the voice market came much faster than we thought,” he said at a briefing yesterday.
Going forward, Das expects growth to come from data and broadband. He said the company had spent the past two years since its re-listing in late 2009 building a strong network.
“We need to build (the network) for the tsunami that's to come ... the tsunami for data and broadband,” he said, adding that Maxis managed to secure 330,000 net adds in the broadband segment in FY10 to a total of 594,000 subscribers.
As at Dec 31, Maxis' had a total of 13.95 million subscribers while its prepaid subscribers crossed the 10 million mark.
To a question, Das said expected Maxis to achieve a mid-single-digit growth revenue for FY11 to be driven by non-voice services, including data and broadband.
He said non-voice revenue was among the global best in the FY10, accounting for 41.5% of mobile revenue contribution.
“We aim to increase the contribution to 50% by mid-2012. The company will continue to maximise its mobile revenue and continue to be the leader in the market,” he said.
On capital expenditure for FY11, Das said the company planned to spend RM1.4bil, of which 40% to 50% would be used to upgrade its 3G network including fibre optic build-up, and about RM300mil for the infrastructure of its fixed line.
One focus this year would be the commercialisation of home services which would take effect next month, he said.
Among the services to be offered include IP-based services (to be delivered over high-speed broadband access), interactive television, telepresence and eHealth hosting services.
Maxis' blended average revenue per user (ARPU) stood at RM51 against RM56 a year ago.
Its prepaid ARPU fell 12% to RM36 in FY10 from RM41 previously while wireless broadband ARPU fell 30% to RM68 from RM97 in 2009.
Chief financial officer Rossana Rashidi said the prepaid ARPU was partly cannibalised due to lifetime schemes and youth plans, which were now being phased out, and revenue-enhancing plans were being introduced.
She said the lower broadband ARPU was due to promotion packages used to encourage take-up from fresh segments.
http://biz.thestar.com.my/news/story.asp?file=/2011/3/1/business/8160707&sec=business
By LEONG HUNG YEE
hungyee@thestar.com.my
KUALA LUMPUR: Maxis Bhd's net profit rose 21.3% to RM610mil for the fourth quarter ended Dec 31, 2010 from RM503mil previously due to increased contribution from the non-voice segment and a bigger subscriber base.
Its revenue rose to RM2.31bil versus RM2.21bil previously.
“The group recorded a quarter-on-quarter revenue growth of 4% or RM94mil primarily driven by an increase in non-voice revenue by RM84mil or 10% to RM893mil. This was contributed by advanced data services, short message service and wireless broadband businesses, partially offset by reduction in interconnect revenue,” Maxis said in the notes accompanying its financial results.
The telco's profit from operations stood at RM887mil while earnings per share was 8.10 sen against 6.70 sen posted a year ago.
However, Maxis said the comparative figures did not represent a like-for-like comparison of the operational performance of the group because of the accounting treatment adopted for the business combination by Maxis, which was completed on Oct 1, 2009.
Maxis' EBITDA (earnings before interest, taxation, depreciation and amortisation) margin for the fourth quarter was lower at 50.6% against 51.4% in the preceeding quarter.
During the quarter, Maxis also declared an interim dividend of 8 sen per share and also proposed a final dividend of 8 sen per share totalling up to a RM1.2bil payout.
For the full financial year ended Dec 31 (FY10), Maxis' net profit stood at RM2.3bil on revenue of RM8.87bil. Its EBITDA margin for the year stood at 49.8%.
As at Dec 31, the company had a cash and cash equivalent of RM898mil.
Chief executive officer Sandip Das said Maxis had managed to maintain its EBITDA margin close to 50% level despite margin contraction pressure in its voice segment last year.
“The sluggishness or maturity of the voice market came much faster than we thought,” he said at a briefing yesterday.
Going forward, Das expects growth to come from data and broadband. He said the company had spent the past two years since its re-listing in late 2009 building a strong network.
“We need to build (the network) for the tsunami that's to come ... the tsunami for data and broadband,” he said, adding that Maxis managed to secure 330,000 net adds in the broadband segment in FY10 to a total of 594,000 subscribers.
As at Dec 31, Maxis' had a total of 13.95 million subscribers while its prepaid subscribers crossed the 10 million mark.
To a question, Das said expected Maxis to achieve a mid-single-digit growth revenue for FY11 to be driven by non-voice services, including data and broadband.
He said non-voice revenue was among the global best in the FY10, accounting for 41.5% of mobile revenue contribution.
“We aim to increase the contribution to 50% by mid-2012. The company will continue to maximise its mobile revenue and continue to be the leader in the market,” he said.
On capital expenditure for FY11, Das said the company planned to spend RM1.4bil, of which 40% to 50% would be used to upgrade its 3G network including fibre optic build-up, and about RM300mil for the infrastructure of its fixed line.
One focus this year would be the commercialisation of home services which would take effect next month, he said.
Among the services to be offered include IP-based services (to be delivered over high-speed broadband access), interactive television, telepresence and eHealth hosting services.
Maxis' blended average revenue per user (ARPU) stood at RM51 against RM56 a year ago.
Its prepaid ARPU fell 12% to RM36 in FY10 from RM41 previously while wireless broadband ARPU fell 30% to RM68 from RM97 in 2009.
Chief financial officer Rossana Rashidi said the prepaid ARPU was partly cannibalised due to lifetime schemes and youth plans, which were now being phased out, and revenue-enhancing plans were being introduced.
She said the lower broadband ARPU was due to promotion packages used to encourage take-up from fresh segments.
http://biz.thestar.com.my/news/story.asp?file=/2011/3/1/business/8160707&sec=business
Analysts Positive On TM’s Capital Distribution
Tuesday March 1, 2011
By JEEVA ARULAMPALAM
jeeva@thestar.com.my
Cash return makes it a steady preference
PETALING JAYA: Telekom Malaysia Bhd (TM)'s proposed capital distribution of 29 sen per share has been viewed positively by telecommunication analysts, as TM returns excess cash from the disposal of non-core assets such as the sale in Measat Global Bhd shares.
In conjunction with its full-year 2010 results release last Friday, TM said it wanted to carry out a capital distribution to its shareholders of some RM1.04bil, or 29 sen per RM1 each, in line with its capital management framework to return excess cash to shareholders and given its strong cash position as a result of disposal of non-core asset.
According to the company's year to date accounts ending Dec 31, total gains of RM366.6mil were made from the disposal of Measat and Axiata Group Bhd shares.
TM also proposed a final gross dividend of 13.1 sen per share, on top of its interim gross dividend of 13 sen last September.
“Post capital distribution and final dividend distribution, TM's balance sheet is expected to remain solid due to its huge cash balance of RM3.5bil or 97.56 sen per share,” Kenanga Research said in a report yesterday.
A foreign research analyst covering TM said the capital distribution was sufficient, considering the company's commitment to dividend returns of RM700mil or up to 90% of normalised profit after taxation and minority interests.
Meanwhile, Inter-Pacific Research Sdn Bhd said that TM's financial year 2010 gross dividend total of 21.6 sen with a 29 sen per share capital distribution made it a steady preference.
Last September, TM sold 60.02 million Measat shares to Measat Global Network Systems Sdn Bhd for RM252.1mil.
In December, TM said it was looking to dispose off 191.46 million Axiata shares through private placements or the open market, which was estimated to fetch RM879.4mil in total if it sold Axiata shares at RM4.60 per share.
It subsequently managed to place out 90 million from the 191.46 million Axiata shares at RM4.60 per share, making a disposal gain of RM209.7mil.
The last capital repayment from TM to its shareholders was in 2009, as it paid out 98 sen per share or a total of RM3.51bil.
TM came into excess cash then as Axiata (then known as TM International Bhd) paid it some RM4.03bil as part of interest earned on monies according to the demerger agreement between both parties.
HwangDBS Vickers Research said that TM's fourth-quarter 2010 core earnings before interest, taxation, depreciation and amortisation (Ebitda) growth of 7% quarter-on-quarter on the back of a 6% revenue increase was within its expectation.
It added that growth for the present fiscal year's earnings would be driven by growth in the data and broadband segments as broadband demand was expected to remain robust.
“However, we understand that Ebitda margin may be slightly lower this year as the group may incur additional operating costs in rolling out the high-speed broadband,” HwangDBS said.
http://biz.thestar.com.my/news/story.asp?file=/2011/3/1/business/8155108&sec=business
By JEEVA ARULAMPALAM
jeeva@thestar.com.my
Cash return makes it a steady preference
PETALING JAYA: Telekom Malaysia Bhd (TM)'s proposed capital distribution of 29 sen per share has been viewed positively by telecommunication analysts, as TM returns excess cash from the disposal of non-core assets such as the sale in Measat Global Bhd shares.
In conjunction with its full-year 2010 results release last Friday, TM said it wanted to carry out a capital distribution to its shareholders of some RM1.04bil, or 29 sen per RM1 each, in line with its capital management framework to return excess cash to shareholders and given its strong cash position as a result of disposal of non-core asset.
According to the company's year to date accounts ending Dec 31, total gains of RM366.6mil were made from the disposal of Measat and Axiata Group Bhd shares.
TM also proposed a final gross dividend of 13.1 sen per share, on top of its interim gross dividend of 13 sen last September.
“Post capital distribution and final dividend distribution, TM's balance sheet is expected to remain solid due to its huge cash balance of RM3.5bil or 97.56 sen per share,” Kenanga Research said in a report yesterday.
A foreign research analyst covering TM said the capital distribution was sufficient, considering the company's commitment to dividend returns of RM700mil or up to 90% of normalised profit after taxation and minority interests.
Meanwhile, Inter-Pacific Research Sdn Bhd said that TM's financial year 2010 gross dividend total of 21.6 sen with a 29 sen per share capital distribution made it a steady preference.
Last September, TM sold 60.02 million Measat shares to Measat Global Network Systems Sdn Bhd for RM252.1mil.
In December, TM said it was looking to dispose off 191.46 million Axiata shares through private placements or the open market, which was estimated to fetch RM879.4mil in total if it sold Axiata shares at RM4.60 per share.
It subsequently managed to place out 90 million from the 191.46 million Axiata shares at RM4.60 per share, making a disposal gain of RM209.7mil.
The last capital repayment from TM to its shareholders was in 2009, as it paid out 98 sen per share or a total of RM3.51bil.
TM came into excess cash then as Axiata (then known as TM International Bhd) paid it some RM4.03bil as part of interest earned on monies according to the demerger agreement between both parties.
HwangDBS Vickers Research said that TM's fourth-quarter 2010 core earnings before interest, taxation, depreciation and amortisation (Ebitda) growth of 7% quarter-on-quarter on the back of a 6% revenue increase was within its expectation.
It added that growth for the present fiscal year's earnings would be driven by growth in the data and broadband segments as broadband demand was expected to remain robust.
“However, we understand that Ebitda margin may be slightly lower this year as the group may incur additional operating costs in rolling out the high-speed broadband,” HwangDBS said.
http://biz.thestar.com.my/news/story.asp?file=/2011/3/1/business/8155108&sec=business
Sunday, February 27, 2011
Saturday, February 26, 2011
TM Reinvents Mobile Strategy
Saturday February 26, 2011
By B.K. SIDHU
bksidhu@thestar.com.my
THE landscape in the country's telecommunications sector is changing ever so rapidly which has led many telco players to re-invent themselves and reverse their strategies to stay competitive.
So, when over the week, Telekom Malaysia Bhd (TM) announced its plans to partner Celcom Axiata Bhd, no one bat an eyelid. They are after all, sister companies. The tie-up closely followed a similar pact TM signed with Maxis Bhd a few weeks ago. And globally too, the trend to outsource and form tie-ups to save on capital expenditure is also picking up.
But TM's latest move has raised a question: Wasn't it only about four years ago when TM and Celcom split up into separate entities, all in the name of unlocking value?
The signs were there much earlier. Two years ago, TM's boss Datuk Seri Zamzamzairani Mohd Isa had said that mobile was an option. That stance has become more compelling lately given the surge in demand for mobile broadband and the robust growth in data traffic.
Indeed, while the fixed high-speed broadband (HSBB) network brings enormous potential for TM, it still can do a great deal more with the mobility/wireless equation. Mobility is the game changer in the world of communications even though fibre is a major component for the backhaul for exponential growth.
In a recent report, Cisco projected that mobile data traffic would increase 205 times, reaching 6.3 exabytes per month by 2015 due to a projected surge in mobile Internet-enabled devices delivering popular video applications and services. With that, capacity on current 3G networks will likely be exhausted by 2013 putting pressure on providers for additional investment in radio access and backhaul networks.
Against that backdrop, it may be easy to understand why, after operating separately for three years, TM and Celcom have decided to come together again.
The pact
TM has signed a memorandum of understanding with Celcom to explore areas where infrastructure can be shared. The parties will hammer out a definitive agreement in two months for a 10-year partnership.
The collaboration will cover access and transmission on TM's high-speed broadband (HSBB), wholesale Internet access and digital subscriber-line access. Essentially, this means that Celcom will have access to both TM's copper and fibre line while TM can tap the mobile realm by riding on Celcom's infrastructure.
“It is a sibling factor,” says Celcom CEO Datuk Seri Shazalli Ramly. Both companies share a common shareholder, Khazanah Nasional Bhd, which owns 33% of TM and 44.5% of Axiata.
Celcom has the widest coverage in populated areas for its cellular network. It also claims to have wide coverage for wireless broadband. Evidently, Shazalli has great plans for Celcom but without a fibre network, it may be difficult to realise the vision as the telco will need plenty of “dump pipes and content.''
Celcom also has a partnership with rival DiGi.Com Bhd to work together in many areas, mainly with the aim of cutting cost.
TM wants a slice of the mobile voice and data business and it wants to ride on a MVNO (mobile virtual network operator) model just like TuneTalk, XOX Bhd, Merchantrade Asia Sdn Bhd and REDtone International Bhd, instead of building an entirely new network. Many years ago, it used to own TM Touch but had eventually merged it with Celcom.
In a statement issued on Wednesday, TM says it will have an opportunity to gain access to Celcom's cellular network as a MVNO to offer its own branded mobile voice and data services to complement its existing fixed line portfolio.
(An MVNO offers mobile phone services such as phone calls and text messages but does not have its own licensed frequency allocation of radio spectrum. It also may not have the necessary infrastructure to provide mobile phone services. For example, TuneTalk rides on Celcom's network to offer cellular services.)
In the case of TM, it has the 450MHz and 800MHz bandwidth. The question is whether it is economically viable to build a whole new network or just hop on to an existing network.
Zamzamzairani says: “We are using the existing bandwidth that we have for CDMA.''
Sharing obviously has its benefits. AmResearch points out that TM would not have to overly burdened with capex to build a full-blown mobile business. Instead, it says TM will capitalise on Celcom's network via wholesale capacity purchase and operate its own subscribers franchise and monetise its own user base, which currently stands at 2.8 million of residential subscribers.
Demerger a right move?
With the latest development, the question begs itself on hindsight was it a right decision to hive off Celcom back in 2008?
Back then, Celcom used to be TM's wholly-owned unit. TM had forked out about RM4bil to buy Celcom in 2002 only to let go of the cellular unit in 2008 under a demerger exercise, along with other international cellular operations, which is now parked within Axiata Group.
“It was the right decision then. Just look at the market capitalisation that has grown. TM used to be a laggard and now it has a second chance to shine with HSBB.
“Even if Celcom was listed, it would be a worth a lot more but that's not the route Celcom will take,” says a source close to the companies.
At the point of demerger, both companies were worth nearly RM40bil. Today, Axiata is worth RM41bil and TM about RM14bil.
John Cheah the associate market analyst with IDC Malaysia says the demerger allows TM and Axiata to focus on their individual resources to excel in the fixed line and wireless markets respectively.
“Looking at the present, this new strategic partnership attempts to address the fast-evolving communications user habits. In terms of infrastructure, TM has a wide coverage, in addition to its recent HSBB network that has enabled it to provide FTTH services and fibre resale to other parties.
“As for Celcom, it currently has one of the widest wireless coverage within Malaysia and Axiata's mobile subsidiaries in other emerging Asian markets are also showing good growth,'' Cheah says.
The growth in data and video usage has beaten all projections which is placing pressure on celcos and telcos to ramp up network capacity.
Cheah of IDC says “when we look at current market, the increase in ubiquitous computing and the need for constant connectivity with mobility now calls for more converged services. Current market saturation, declining ARPU and constant capex spending have also driven the need for product and service innovation.”
“Future quad play environments that require both cellular and fixed line components is the reason behind this collaboration. IDC believes that the TM-Celcom MoU will be beneficial not only to the respective parties, but to the end users as well,'' he adds.
The shift from voice centric services to data-centric services is real.
Players like Celcom, TM, Maxis and DiGi can remain operators of dumb pipes/wireless networks or they can monetise further these pipes/networks to make more money in the future.
A report says that if telcos do not conform to the new reality, they face the risk of becoming nothing more than access only, “dump pipes utilities,'' like many of the fixed line cousins, with much of the new data related revenue growth leaking from the sector to new service providers.
“That is not to say that an access dump utility model is not sustainable in the long term but we should expect such a model to have lower financial returns than currently enjoyed from that perspectives. Operators need to try and maintain a content/service focus in the increasing data-centric world,'' the report says.
Hwang-DBS Vickers Research believes that Celcom is a bigger beneficiary of the recent tie-up given that the fixed broadband services will complement its current mobile offerings to existing subscribers.
It added that TM may have difficulty to compete with other bigger celcos (DiGi, Celcom and Maxis which collectively control 99% of the country's subscriber base), being the last to enter the MVNO market.
“Although we think the deal is positive for Celcom, near-term earnings impact would likely be minimal,'' says Hwang-DBS.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/26/business/8142791
By B.K. SIDHU
bksidhu@thestar.com.my
THE landscape in the country's telecommunications sector is changing ever so rapidly which has led many telco players to re-invent themselves and reverse their strategies to stay competitive.
So, when over the week, Telekom Malaysia Bhd (TM) announced its plans to partner Celcom Axiata Bhd, no one bat an eyelid. They are after all, sister companies. The tie-up closely followed a similar pact TM signed with Maxis Bhd a few weeks ago. And globally too, the trend to outsource and form tie-ups to save on capital expenditure is also picking up.
But TM's latest move has raised a question: Wasn't it only about four years ago when TM and Celcom split up into separate entities, all in the name of unlocking value?
The signs were there much earlier. Two years ago, TM's boss Datuk Seri Zamzamzairani Mohd Isa had said that mobile was an option. That stance has become more compelling lately given the surge in demand for mobile broadband and the robust growth in data traffic.
Indeed, while the fixed high-speed broadband (HSBB) network brings enormous potential for TM, it still can do a great deal more with the mobility/wireless equation. Mobility is the game changer in the world of communications even though fibre is a major component for the backhaul for exponential growth.
In a recent report, Cisco projected that mobile data traffic would increase 205 times, reaching 6.3 exabytes per month by 2015 due to a projected surge in mobile Internet-enabled devices delivering popular video applications and services. With that, capacity on current 3G networks will likely be exhausted by 2013 putting pressure on providers for additional investment in radio access and backhaul networks.
Against that backdrop, it may be easy to understand why, after operating separately for three years, TM and Celcom have decided to come together again.
The pact
TM has signed a memorandum of understanding with Celcom to explore areas where infrastructure can be shared. The parties will hammer out a definitive agreement in two months for a 10-year partnership.
The collaboration will cover access and transmission on TM's high-speed broadband (HSBB), wholesale Internet access and digital subscriber-line access. Essentially, this means that Celcom will have access to both TM's copper and fibre line while TM can tap the mobile realm by riding on Celcom's infrastructure.
“It is a sibling factor,” says Celcom CEO Datuk Seri Shazalli Ramly. Both companies share a common shareholder, Khazanah Nasional Bhd, which owns 33% of TM and 44.5% of Axiata.
Celcom has the widest coverage in populated areas for its cellular network. It also claims to have wide coverage for wireless broadband. Evidently, Shazalli has great plans for Celcom but without a fibre network, it may be difficult to realise the vision as the telco will need plenty of “dump pipes and content.''
Celcom also has a partnership with rival DiGi.Com Bhd to work together in many areas, mainly with the aim of cutting cost.
TM wants a slice of the mobile voice and data business and it wants to ride on a MVNO (mobile virtual network operator) model just like TuneTalk, XOX Bhd, Merchantrade Asia Sdn Bhd and REDtone International Bhd, instead of building an entirely new network. Many years ago, it used to own TM Touch but had eventually merged it with Celcom.
In a statement issued on Wednesday, TM says it will have an opportunity to gain access to Celcom's cellular network as a MVNO to offer its own branded mobile voice and data services to complement its existing fixed line portfolio.
(An MVNO offers mobile phone services such as phone calls and text messages but does not have its own licensed frequency allocation of radio spectrum. It also may not have the necessary infrastructure to provide mobile phone services. For example, TuneTalk rides on Celcom's network to offer cellular services.)
In the case of TM, it has the 450MHz and 800MHz bandwidth. The question is whether it is economically viable to build a whole new network or just hop on to an existing network.
Zamzamzairani says: “We are using the existing bandwidth that we have for CDMA.''
Sharing obviously has its benefits. AmResearch points out that TM would not have to overly burdened with capex to build a full-blown mobile business. Instead, it says TM will capitalise on Celcom's network via wholesale capacity purchase and operate its own subscribers franchise and monetise its own user base, which currently stands at 2.8 million of residential subscribers.
Demerger a right move?
With the latest development, the question begs itself on hindsight was it a right decision to hive off Celcom back in 2008?
Back then, Celcom used to be TM's wholly-owned unit. TM had forked out about RM4bil to buy Celcom in 2002 only to let go of the cellular unit in 2008 under a demerger exercise, along with other international cellular operations, which is now parked within Axiata Group.
“It was the right decision then. Just look at the market capitalisation that has grown. TM used to be a laggard and now it has a second chance to shine with HSBB.
“Even if Celcom was listed, it would be a worth a lot more but that's not the route Celcom will take,” says a source close to the companies.
At the point of demerger, both companies were worth nearly RM40bil. Today, Axiata is worth RM41bil and TM about RM14bil.
John Cheah the associate market analyst with IDC Malaysia says the demerger allows TM and Axiata to focus on their individual resources to excel in the fixed line and wireless markets respectively.
“Looking at the present, this new strategic partnership attempts to address the fast-evolving communications user habits. In terms of infrastructure, TM has a wide coverage, in addition to its recent HSBB network that has enabled it to provide FTTH services and fibre resale to other parties.
“As for Celcom, it currently has one of the widest wireless coverage within Malaysia and Axiata's mobile subsidiaries in other emerging Asian markets are also showing good growth,'' Cheah says.
The growth in data and video usage has beaten all projections which is placing pressure on celcos and telcos to ramp up network capacity.
Cheah of IDC says “when we look at current market, the increase in ubiquitous computing and the need for constant connectivity with mobility now calls for more converged services. Current market saturation, declining ARPU and constant capex spending have also driven the need for product and service innovation.”
“Future quad play environments that require both cellular and fixed line components is the reason behind this collaboration. IDC believes that the TM-Celcom MoU will be beneficial not only to the respective parties, but to the end users as well,'' he adds.
The shift from voice centric services to data-centric services is real.
Players like Celcom, TM, Maxis and DiGi can remain operators of dumb pipes/wireless networks or they can monetise further these pipes/networks to make more money in the future.
A report says that if telcos do not conform to the new reality, they face the risk of becoming nothing more than access only, “dump pipes utilities,'' like many of the fixed line cousins, with much of the new data related revenue growth leaking from the sector to new service providers.
“That is not to say that an access dump utility model is not sustainable in the long term but we should expect such a model to have lower financial returns than currently enjoyed from that perspectives. Operators need to try and maintain a content/service focus in the increasing data-centric world,'' the report says.
Hwang-DBS Vickers Research believes that Celcom is a bigger beneficiary of the recent tie-up given that the fixed broadband services will complement its current mobile offerings to existing subscribers.
It added that TM may have difficulty to compete with other bigger celcos (DiGi, Celcom and Maxis which collectively control 99% of the country's subscriber base), being the last to enter the MVNO market.
“Although we think the deal is positive for Celcom, near-term earnings impact would likely be minimal,'' says Hwang-DBS.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/26/business/8142791
Investment Gains Boost TM Net Profit
Saturday February 26, 2011
By JEEVA ARULAMPALAM
jeeva@thestar.com.my
KUALA LUMPUR: Telekom Malaysia Bhd (TM) saw its fourth quarter ended Dec 31, 2010 net profit more than double to RM400.63mil from RM170.25 a year ago due to higher revenue and investment gains made by the disposal of shares.
TM booked a net gain of RM213.3mil from the sale of Measat Global Bhd and Axiata Group Bhd shares attributed to lapsed ESOS options.
The company also announced plans to carry out a capital distribution to its shareholders of some RM1.04bil, or 29 sen per RM1 each, in line with its capital management framework to return excess cash to shareholders.
While the business environment for its current financial year will remain challenging due to the intense competitive landscape, TM group chief executive officer Datuk Seri Zamzamzairani Mohd Isa says the company is set to take its stage of growth to the next level.
This would be on the back of its performance improvement programme, its focus on customer centricity and as it sought to achieve 1.1 million premises passed and a total of 78 exchange areas by the end of this year under its high-speed broadband project, UniFi, he told reporters at the company's result briefing yesterday.
The company's financial year ending Dec 31, 2011 (FY11) headline key performance indicators include a revenue growth of 2.5%, earnings before interest, tax, depreciation and amortisation margin of 32% and customer satisfaction measure of 70, which uses TRI*M index measuring end-to-end customer experience at all touch points. TM was able to meet all three headline KPIs for FY10.
For the quarter under review, revenue was up 2.11% to RM2.32bil from RM2.27bil from a year ago, due to higher revenue from data, Internet and multimedia and non-telecommunications-related services, which mitigated the impact of lower revenue from voice and other telecommunications-related services.
TM said data revenue increased by 14.4% to RM490.8mil in the quarter compared with RM428.9mil previously due to demand for higher bandwidth services.
Internet and multimedia posted higher revenue by 12.6% to RM436.6mil owing to an increase in broadband customers to 1.68 million in the quarter compared with 1.43 million a year ago.
Its earnings per share was 11.2 sen.
For its full year, TM's net profit was up 88% to RM1.21bil from RM643.03mil in FY09. Its revenue was up 2.1% to RM8.79bil driven by higher operating revenue from data services, Internet and multimedia and other telecommunications-related services, which grew by 15.4%, 5.9% and 4.2% respectively, and helped mitigate the decline in voice revenue.
TM has proposed a final gross dividend of 13.1 sen on top of the interim gross dividend of 13 sen distributed last September.
Its earnings per share for FY10 was 33.9 sen.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/26/business/8144845
By JEEVA ARULAMPALAM
jeeva@thestar.com.my
KUALA LUMPUR: Telekom Malaysia Bhd (TM) saw its fourth quarter ended Dec 31, 2010 net profit more than double to RM400.63mil from RM170.25 a year ago due to higher revenue and investment gains made by the disposal of shares.
TM booked a net gain of RM213.3mil from the sale of Measat Global Bhd and Axiata Group Bhd shares attributed to lapsed ESOS options.
The company also announced plans to carry out a capital distribution to its shareholders of some RM1.04bil, or 29 sen per RM1 each, in line with its capital management framework to return excess cash to shareholders.
While the business environment for its current financial year will remain challenging due to the intense competitive landscape, TM group chief executive officer Datuk Seri Zamzamzairani Mohd Isa says the company is set to take its stage of growth to the next level.
This would be on the back of its performance improvement programme, its focus on customer centricity and as it sought to achieve 1.1 million premises passed and a total of 78 exchange areas by the end of this year under its high-speed broadband project, UniFi, he told reporters at the company's result briefing yesterday.
The company's financial year ending Dec 31, 2011 (FY11) headline key performance indicators include a revenue growth of 2.5%, earnings before interest, tax, depreciation and amortisation margin of 32% and customer satisfaction measure of 70, which uses TRI*M index measuring end-to-end customer experience at all touch points. TM was able to meet all three headline KPIs for FY10.
For the quarter under review, revenue was up 2.11% to RM2.32bil from RM2.27bil from a year ago, due to higher revenue from data, Internet and multimedia and non-telecommunications-related services, which mitigated the impact of lower revenue from voice and other telecommunications-related services.
TM said data revenue increased by 14.4% to RM490.8mil in the quarter compared with RM428.9mil previously due to demand for higher bandwidth services.
Internet and multimedia posted higher revenue by 12.6% to RM436.6mil owing to an increase in broadband customers to 1.68 million in the quarter compared with 1.43 million a year ago.
Its earnings per share was 11.2 sen.
For its full year, TM's net profit was up 88% to RM1.21bil from RM643.03mil in FY09. Its revenue was up 2.1% to RM8.79bil driven by higher operating revenue from data services, Internet and multimedia and other telecommunications-related services, which grew by 15.4%, 5.9% and 4.2% respectively, and helped mitigate the decline in voice revenue.
TM has proposed a final gross dividend of 13.1 sen on top of the interim gross dividend of 13 sen distributed last September.
Its earnings per share for FY10 was 33.9 sen.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/26/business/8144845
TM : Net Profit Surges to RM400.6m
By Zaidi Isham Ismail
Published: 2011/02/26
Telekom Malaysia Bhd's (4863)net profit for the fourth quarter ended December 2010 almost doubled to RM400.6 million from RM170.2 million in the comparable quarter in 2009.
This was mainly attributed to higher revenue from data, Internet and multimedia and non-telecommunications related services.
Group revenue climbed 2.1 per cent to RM2.3 billion from RM2.2 billion which mitigated the impact of lower revenue from voice and other telecommunications related services.
For the full year, its net profit doubled to RM1.2 billion while revenue edged up slightly to RM8.7 billion from RM8.6 billion.
TM group chief executive officer Datuk Seri Zamzamzairani Mohd Isa said its prospects for the current financial are positive in line with the country's economic recovery which started in mid 2009 and will continue this year.
"TM sees itself working hand in hand with the government especially in business service and communications content and infrastructure," Zamzamraini told reporters at TM's headquarters in Kuala Lumpur yesterday.
He added TM will continue to expand its data centre footprint aimed at positioning Malaysia as a world-class data centre hub.
TM's group data revenue increased 14.4 per cent in fourth quarter to RM490.8 million compared to RM428.9 million in the same quarter 2009 arising from demand for higher bandwidth services.
Internet and multimedia registered higher revenue by 12.6 per cent to RM436.6 million in the arising from increased broadband customers to 1.68 million from 1.43 million in the corresponding quarter in 2009.
Group operating profit before finance cost of RM408.3 million increased 55.4 per cent compared to RM262.8 million recorded in the same quarter last year. This was largely due to higher operating revenue and higher gain on disposal of available-for-sale investments net of higher depreciation, impairment and amortisation.
TM's fibre optic fixed line UniFi has strengthened its market leadership in high speed broadband with close to 50,000 subscribers activated as of February 22.
TM has more than 780,000 premises passed covering a total of 60 exchange areas spanning 770km. These include the inner Klang Valley, Iskandar Malaysia, and Northern Corridor Economic Region.
The group is on track to deliver a total of 1.1 million premises passed by end 2011 covering 78 exchange areas.
http://www.btimes.com.my/Current_News/BTIMES/articles/TMONE/Article/
Published: 2011/02/26
Telekom Malaysia Bhd's (4863)net profit for the fourth quarter ended December 2010 almost doubled to RM400.6 million from RM170.2 million in the comparable quarter in 2009.
This was mainly attributed to higher revenue from data, Internet and multimedia and non-telecommunications related services.
Group revenue climbed 2.1 per cent to RM2.3 billion from RM2.2 billion which mitigated the impact of lower revenue from voice and other telecommunications related services.
For the full year, its net profit doubled to RM1.2 billion while revenue edged up slightly to RM8.7 billion from RM8.6 billion.
TM group chief executive officer Datuk Seri Zamzamzairani Mohd Isa said its prospects for the current financial are positive in line with the country's economic recovery which started in mid 2009 and will continue this year.
"TM sees itself working hand in hand with the government especially in business service and communications content and infrastructure," Zamzamraini told reporters at TM's headquarters in Kuala Lumpur yesterday.
He added TM will continue to expand its data centre footprint aimed at positioning Malaysia as a world-class data centre hub.
TM's group data revenue increased 14.4 per cent in fourth quarter to RM490.8 million compared to RM428.9 million in the same quarter 2009 arising from demand for higher bandwidth services.
Internet and multimedia registered higher revenue by 12.6 per cent to RM436.6 million in the arising from increased broadband customers to 1.68 million from 1.43 million in the corresponding quarter in 2009.
Group operating profit before finance cost of RM408.3 million increased 55.4 per cent compared to RM262.8 million recorded in the same quarter last year. This was largely due to higher operating revenue and higher gain on disposal of available-for-sale investments net of higher depreciation, impairment and amortisation.
TM's fibre optic fixed line UniFi has strengthened its market leadership in high speed broadband with close to 50,000 subscribers activated as of February 22.
TM has more than 780,000 premises passed covering a total of 60 exchange areas spanning 770km. These include the inner Klang Valley, Iskandar Malaysia, and Northern Corridor Economic Region.
The group is on track to deliver a total of 1.1 million premises passed by end 2011 covering 78 exchange areas.
http://www.btimes.com.my/Current_News/BTIMES/articles/TMONE/Article/
Friday, February 25, 2011
Thursday, February 24, 2011
Tuesday, February 22, 2011
TM Targets to Provide More Premises in Iskandar With HSBB
Tuesday February 22, 2011
By ZAZALI MUSA
zaza@thestar.com.my
JOHOR BARU: Telekom Malaysia Bhd (TM) plans to increase the number of premises which have access to its UniFi high-speed broadband (HSBB) service in Iskandar Malaysia this year.
Johor TM general manager Mohd Roslan Mohd Rashidi said it was looking to achieve 45,000 commercial and residential premises connected with the services by year-end from 4,500 premises now.
He said the areas of coverage would be extended from three presently to five more zones to offer wider coverage for the HSBB connectivity within Iskandar Malaysia for its customers.
The five new zones are the Johor Baru Central, Pelangi, Pasir Gudang, Skudai and Tampoi areas while the existing areas are Nusajaya, Permas Jaya and Senai.
“Last year was the pre-introduction of the services for our potential customers in Iskandar and this year we are going on the ground to push the services to them,'' Mohd Roslan told StarBiz yesterday.
He was speaking after signing a HSBB service agreement with United Malaysia Land Bhd's (UM Land) wholly-owned subsidiary Seri Alam Properties Sdn Bhd acting head Frankie Tan Kiat How for its project in Pasir Gudang.
The event was witnessed by Pulai MP Datuk Nur Jazlan Mohamed and UM Land group chief executive officer Pee Tong Lim.
Last year, TM signed similar agreements with Mudra Tropika Sdn Bhd for its housing scheme in Jalan Kolam Ayer, Johor Baru and Dynasty View Sdn Bhd for its Seri Austin project in Tebrau corridor.
“We are going to sign with 15 more developers in Iskandar Malaysia for similar services this year,'' added Mohd Roslan.
He said the company preferred to sign with developers to provide and install the HSBB connectivity for their new residential and commercial launches rather than having the system installed at the completed properties.
However, Mohd Roslan said it would not totally ignore the brown field area. The company would be selective in offering the service to such areas as it involved high cost of laying down fibre-optic cables compared to green field areas.
He said one area which required careful planning was the RM1.8bil Johor Baru city centre transformation project, where the masterplan to be unveiled in the second-quarter of the year would involve the redevelopment of Johor Baru into a vibrant city.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/22/business/8109380
By ZAZALI MUSA
zaza@thestar.com.my
JOHOR BARU: Telekom Malaysia Bhd (TM) plans to increase the number of premises which have access to its UniFi high-speed broadband (HSBB) service in Iskandar Malaysia this year.
Johor TM general manager Mohd Roslan Mohd Rashidi said it was looking to achieve 45,000 commercial and residential premises connected with the services by year-end from 4,500 premises now.
He said the areas of coverage would be extended from three presently to five more zones to offer wider coverage for the HSBB connectivity within Iskandar Malaysia for its customers.
The five new zones are the Johor Baru Central, Pelangi, Pasir Gudang, Skudai and Tampoi areas while the existing areas are Nusajaya, Permas Jaya and Senai.
“Last year was the pre-introduction of the services for our potential customers in Iskandar and this year we are going on the ground to push the services to them,'' Mohd Roslan told StarBiz yesterday.
He was speaking after signing a HSBB service agreement with United Malaysia Land Bhd's (UM Land) wholly-owned subsidiary Seri Alam Properties Sdn Bhd acting head Frankie Tan Kiat How for its project in Pasir Gudang.
The event was witnessed by Pulai MP Datuk Nur Jazlan Mohamed and UM Land group chief executive officer Pee Tong Lim.
Last year, TM signed similar agreements with Mudra Tropika Sdn Bhd for its housing scheme in Jalan Kolam Ayer, Johor Baru and Dynasty View Sdn Bhd for its Seri Austin project in Tebrau corridor.
“We are going to sign with 15 more developers in Iskandar Malaysia for similar services this year,'' added Mohd Roslan.
He said the company preferred to sign with developers to provide and install the HSBB connectivity for their new residential and commercial launches rather than having the system installed at the completed properties.
However, Mohd Roslan said it would not totally ignore the brown field area. The company would be selective in offering the service to such areas as it involved high cost of laying down fibre-optic cables compared to green field areas.
He said one area which required careful planning was the RM1.8bil Johor Baru city centre transformation project, where the masterplan to be unveiled in the second-quarter of the year would involve the redevelopment of Johor Baru into a vibrant city.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/22/business/8109380
TM Poised To Return to Cellular Business
Wednesday February 23, 2011
By B.K. SIDHU
bksidhu@thestar.com.my
KUALA LUMPUR: Telekom Malaysia Bhd (TM) and Celcom Axiata Bhd may potentially be entering into a 10-year collaboration that allows TM to get back into the cellular business it once sold off but now needs mobility solutions to bridge the gap in its current product offering.
For Celcom, the collaboration allows it access to a high-speed broadband (HSBB) network. Its foray into the fibre business gives it exposure to millions of homes and offices to push rich multimedia services such as IPTV and video on demand and stay in competition with rival Maxis Bhd which aspires to become an integrated player.
The partnership may be a game changer in the way Celcom and TM operate in the future. Each will have a platform that they need to push multimedia, fixed and mobile solutions to users.
“We will not become a full-blown cellular player as our focus is our fixed-line business. (But we will opt for the) mobile virtual network operator (MVNO) model as it allows us to get into the cellular business that we can monetise on,'' TM group CEO Datuk Seri Zamzamzairani Mohd Isa said.
TM in a statement said it would opt for the MVNO model to offer its own brand of mobile voice and data services to complement its existing fixed-line portfolio.
Zamzamzairani said they (TM and Celcom) could either offer services jointly or individually.
This TM/Celcom partnership also means Maxis may have more competitors on hand than it had hoped for. Hopefully, the consumer will be the big winners in terms of choices. And with more players competition should drive rates down and, perhaps, improve the quality of services and offerings.
Yesterday, both Celcom and TM inked a memorandum of understanding (MoU) to cooperate on several areas and gave themselves two months to hammer out a definitive collaborative agreement.
Celcom was once upon a time a unit of TM but, after the demerger, it was hived off to Axiata Group.
Asked if it was a mistake to demerge with Celcom years ago since it now needed to also offer cellular services to its users, Zamzamzairani said “it was a shareholder issue and not management.''
This MoU signing came just over a month after Maxis inked a deal to use TM's HSBB for a 10-year period. The sharing of resources will save the country millions in infrastructure build-up but both Celcom and TM could not give any estimates of how much they would save in infrastructure sharing.
“It is in the best interest of the telecoms industry, especially the service providers, to progress towards network infrastructure sharing to minimise capital expenditure. It does not make sense for the industry to duplicate infrastructure,'' Information, Communications and Culture Deputy Minister Datuk Joseph Salang said after witnessing the signing ceremony yesterday.
Under the MoU, Celcom and TM will explore possible collaboration in the areas of HSBB be it access or transmission, wholesale Internet access, digital subscriber line access (end-mile copper network), fiber network system via wholesale long-term lease or MVNO services.
“In this day and age of multiple screens, be it phones, tablets or TVs, consumers are now being entertained and are interacting with each other in a multitude of ways,” Celcom CEO Datuk Seri Shazalli Ramly said. “The old paradigm of fixed versus mobile access is becoming increasingly irrelevant due to consumer behaviour, the lines are blurring (and we need to provide content via multiple access and devices, thus the need to collaborate).''
IDC Malaysia associate market analyst John Cheah believes TM will be able to regain a foothold in the lucrative mobile market with a tie-up with Celcom.
“However, taking into account that there are already numerous mobile operators and MVNOs, TM would need to identify a niche market or provide competitive rates,” he said. “TM could leverage on its existing broadband brands and provide a mobile data plan to complement its fixed-line counterparts.''
As for Celcom, he said: “It would be able to develop new fixed-line products. It would help control capital expenditure for Celcom in terms of long-term investments and maintenance of its next generation backhaul networks.''
http://biz.thestar.com.my/news/story.asp?file=/2011/2/23/business/8118522&sec=business
By B.K. SIDHU
bksidhu@thestar.com.my
KUALA LUMPUR: Telekom Malaysia Bhd (TM) and Celcom Axiata Bhd may potentially be entering into a 10-year collaboration that allows TM to get back into the cellular business it once sold off but now needs mobility solutions to bridge the gap in its current product offering.
For Celcom, the collaboration allows it access to a high-speed broadband (HSBB) network. Its foray into the fibre business gives it exposure to millions of homes and offices to push rich multimedia services such as IPTV and video on demand and stay in competition with rival Maxis Bhd which aspires to become an integrated player.
The partnership may be a game changer in the way Celcom and TM operate in the future. Each will have a platform that they need to push multimedia, fixed and mobile solutions to users.
“We will not become a full-blown cellular player as our focus is our fixed-line business. (But we will opt for the) mobile virtual network operator (MVNO) model as it allows us to get into the cellular business that we can monetise on,'' TM group CEO Datuk Seri Zamzamzairani Mohd Isa said.
TM in a statement said it would opt for the MVNO model to offer its own brand of mobile voice and data services to complement its existing fixed-line portfolio.
Zamzamzairani said they (TM and Celcom) could either offer services jointly or individually.
This TM/Celcom partnership also means Maxis may have more competitors on hand than it had hoped for. Hopefully, the consumer will be the big winners in terms of choices. And with more players competition should drive rates down and, perhaps, improve the quality of services and offerings.
Yesterday, both Celcom and TM inked a memorandum of understanding (MoU) to cooperate on several areas and gave themselves two months to hammer out a definitive collaborative agreement.
Celcom was once upon a time a unit of TM but, after the demerger, it was hived off to Axiata Group.
Asked if it was a mistake to demerge with Celcom years ago since it now needed to also offer cellular services to its users, Zamzamzairani said “it was a shareholder issue and not management.''
This MoU signing came just over a month after Maxis inked a deal to use TM's HSBB for a 10-year period. The sharing of resources will save the country millions in infrastructure build-up but both Celcom and TM could not give any estimates of how much they would save in infrastructure sharing.
“It is in the best interest of the telecoms industry, especially the service providers, to progress towards network infrastructure sharing to minimise capital expenditure. It does not make sense for the industry to duplicate infrastructure,'' Information, Communications and Culture Deputy Minister Datuk Joseph Salang said after witnessing the signing ceremony yesterday.
Under the MoU, Celcom and TM will explore possible collaboration in the areas of HSBB be it access or transmission, wholesale Internet access, digital subscriber line access (end-mile copper network), fiber network system via wholesale long-term lease or MVNO services.
“In this day and age of multiple screens, be it phones, tablets or TVs, consumers are now being entertained and are interacting with each other in a multitude of ways,” Celcom CEO Datuk Seri Shazalli Ramly said. “The old paradigm of fixed versus mobile access is becoming increasingly irrelevant due to consumer behaviour, the lines are blurring (and we need to provide content via multiple access and devices, thus the need to collaborate).''
IDC Malaysia associate market analyst John Cheah believes TM will be able to regain a foothold in the lucrative mobile market with a tie-up with Celcom.
“However, taking into account that there are already numerous mobile operators and MVNOs, TM would need to identify a niche market or provide competitive rates,” he said. “TM could leverage on its existing broadband brands and provide a mobile data plan to complement its fixed-line counterparts.''
As for Celcom, he said: “It would be able to develop new fixed-line products. It would help control capital expenditure for Celcom in terms of long-term investments and maintenance of its next generation backhaul networks.''
http://biz.thestar.com.my/news/story.asp?file=/2011/2/23/business/8118522&sec=business
Monday, February 21, 2011
Some See WiFi As Cheaper Means to Cater to Increasing Bandwidth Demand
Monday February 21, 2011
By TEE LIN SAY
linsay@thestar.com.my
PETALING JAYA: Cellular operators are considering deploying more WiFi technology as a cost-efficient means to cater to increasing bandwidth demands on their networks, according to some industry experts.
“Celcos are projecting a huge increase in data usage coming from the growing use by consumers of devices such as Apple's iPhone and iPad and other tablet-type devices,” one technology specialist from a leading celco said.
WiFi was being touted by some telecommunications vendors as a cheaper means to cater to the increasing demand, he added.
»WiFi technology is being examined by some telcos, including Maxis, to serve as offload to increasing data traffic demand in localised hotspots« MAXIS COMMUNICATIONS’ MARK DIOGUARDI
The increased use of WiFi by cellular players was also featured at the recent Mobile World Congress 2011 in Barcelona.
At the conference, Wang Jianzhou, chairman of China Mobile Communications Corp, the world's largest mobile operator by subscribers, outlined plans to deploy 1 million Wi-Fi access points in high-density areas over the next three years.
US-based wireless technology vendor Ruckus Wireless won an award at the conference for one of its products as the “Best Mobile Broadband Technology.”
According to the company, the product Ruckus Wireless Services Gateway enables mobile device subscribers to move more easily between cellular and Wi-Fi connections for data and even voice.
When asked to comment on this, Maxis Communications Bhd's head of network and technology Mark Dioguardi said: “WiFi technology is being examined by some telcos, including Maxis, to serve as offload to increasing data traffic demand in localised hotspots. However, depending on the network usage and customer profile, WiFi (due to small coverage and limited end-user device transmit power) may not able to offload data traffic from all wireless broadband customers, for example indoor residential wireless broadband users.
“WiFi is more suitable for localised hotspots and nomadic users, and not for wide-area offload.”
He said solutions today existed for voice calls to move from a 3G network to WiFi seamlessly.
“This will involve solutions from the network, end-user device and client software,” he said.
“However, WiFi coverage is small, spotty and non-contiguous. This will not provide a good experience for high-mobility users. Also, the voice quality on WiFi will be uncertain due to the best effort nature of WiFi.”
Meanwhile, OSK Research telecommunications analyst Jeffrey Tan holds the view that the move to WiFi is a slow but sure trend.
“There appears to be a gradual move towards that direction. The 3G backhaul fiber investments are on the rise and WiFi networks or femtocells offer attractive propositions, are cheaper to roll out and less strenuous compared with building up network capacity,” he said.
“It could be more cost effective for the telco players over the longer term given that the bulk of data traffic demand from small- and big-screen devices are Internet related.
“Having more WiFi hotspots would benefit the celcos by providing ubiquitous coverage and the ability to mitigate the congestion on mobile networks. Consumers get seamless connectivity and better quality bandwidth, while the celcos enjoy cost savings.”
Service providers who currently provide WiFi hotspots include Green Packet Bhd and Palette Multimedia Bhd.
Green Packet group managing director Puan Chan Cheong said demand for mobile data presently exceeded the network infrastructure.
“People can't get enough of bandwidth. We need multiple infrastructures to give users a richer experience. WiFi is part of our strategy as it captures some of the share of the mobile broadband segment,” said Puan.
Green Packet subsidiary Packet One Networks (Malaysia) Sdn Bhd (P1) introduced the WiFi personal hotspot unit in December last year.
Green Packet has installed some 1,500 hotspots in Kuala Lumpur while Palatte has installed a few hundred hotspots and some 20 hotzones in the Klang Valley.
Palette chairman Eg Kah Yee said Apple's iPhones and other smart phones come with WiFi built-in, making the hand-held devices access of Internet possible.
“All these applications consume very high 3G bandwidth. The increasing demand of bandwidth is putting a heavy burden on the telcos and a tight squeeze on voice.
“As such, telcos are back to deploy more WiFi hotspots to offload the 3G to WiFi as soon as the users enter into a hotspot area,” said Eg.
He said Palette had pioneered and developed the 3G offload to WiFi technology and had started to deliver such products.
However, Maxis' Dioguardi added that the WiFi rollout cost might not necessarily be cheap.
“There will be high investment needed in transmission backhaul to build a WiFi network with similar coverage as a 3G network and with sufficient capacity. Hence, WiFi rollout is not necessarily cheap. WiFi also uses unlicensed frequencies and there could be interference issues with other WiFi networks or other devices that use the same unlicensed frequency,” he said.
According to Dioguardi, there were other solutions in the core and radio network to manage the growth in the demand of data traffic.
“In summary, WiFi can be a solution in localised public data hotspots or within customers' homes where fixed broadband exists. But in the short to medium term, it will not provide sufficient or significant data offload for a pan-Malaysian wireless broadband network,” he said.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/21/business/8105423
By TEE LIN SAY
linsay@thestar.com.my
PETALING JAYA: Cellular operators are considering deploying more WiFi technology as a cost-efficient means to cater to increasing bandwidth demands on their networks, according to some industry experts.
“Celcos are projecting a huge increase in data usage coming from the growing use by consumers of devices such as Apple's iPhone and iPad and other tablet-type devices,” one technology specialist from a leading celco said.
WiFi was being touted by some telecommunications vendors as a cheaper means to cater to the increasing demand, he added.
»WiFi technology is being examined by some telcos, including Maxis, to serve as offload to increasing data traffic demand in localised hotspots« MAXIS COMMUNICATIONS’ MARK DIOGUARDI
The increased use of WiFi by cellular players was also featured at the recent Mobile World Congress 2011 in Barcelona.
At the conference, Wang Jianzhou, chairman of China Mobile Communications Corp, the world's largest mobile operator by subscribers, outlined plans to deploy 1 million Wi-Fi access points in high-density areas over the next three years.
US-based wireless technology vendor Ruckus Wireless won an award at the conference for one of its products as the “Best Mobile Broadband Technology.”
According to the company, the product Ruckus Wireless Services Gateway enables mobile device subscribers to move more easily between cellular and Wi-Fi connections for data and even voice.
When asked to comment on this, Maxis Communications Bhd's head of network and technology Mark Dioguardi said: “WiFi technology is being examined by some telcos, including Maxis, to serve as offload to increasing data traffic demand in localised hotspots. However, depending on the network usage and customer profile, WiFi (due to small coverage and limited end-user device transmit power) may not able to offload data traffic from all wireless broadband customers, for example indoor residential wireless broadband users.
“WiFi is more suitable for localised hotspots and nomadic users, and not for wide-area offload.”
He said solutions today existed for voice calls to move from a 3G network to WiFi seamlessly.
“This will involve solutions from the network, end-user device and client software,” he said.
“However, WiFi coverage is small, spotty and non-contiguous. This will not provide a good experience for high-mobility users. Also, the voice quality on WiFi will be uncertain due to the best effort nature of WiFi.”
Meanwhile, OSK Research telecommunications analyst Jeffrey Tan holds the view that the move to WiFi is a slow but sure trend.
“There appears to be a gradual move towards that direction. The 3G backhaul fiber investments are on the rise and WiFi networks or femtocells offer attractive propositions, are cheaper to roll out and less strenuous compared with building up network capacity,” he said.
“It could be more cost effective for the telco players over the longer term given that the bulk of data traffic demand from small- and big-screen devices are Internet related.
“Having more WiFi hotspots would benefit the celcos by providing ubiquitous coverage and the ability to mitigate the congestion on mobile networks. Consumers get seamless connectivity and better quality bandwidth, while the celcos enjoy cost savings.”
Service providers who currently provide WiFi hotspots include Green Packet Bhd and Palette Multimedia Bhd.
Green Packet group managing director Puan Chan Cheong said demand for mobile data presently exceeded the network infrastructure.
“People can't get enough of bandwidth. We need multiple infrastructures to give users a richer experience. WiFi is part of our strategy as it captures some of the share of the mobile broadband segment,” said Puan.
Green Packet subsidiary Packet One Networks (Malaysia) Sdn Bhd (P1) introduced the WiFi personal hotspot unit in December last year.
Green Packet has installed some 1,500 hotspots in Kuala Lumpur while Palatte has installed a few hundred hotspots and some 20 hotzones in the Klang Valley.
Palette chairman Eg Kah Yee said Apple's iPhones and other smart phones come with WiFi built-in, making the hand-held devices access of Internet possible.
“All these applications consume very high 3G bandwidth. The increasing demand of bandwidth is putting a heavy burden on the telcos and a tight squeeze on voice.
“As such, telcos are back to deploy more WiFi hotspots to offload the 3G to WiFi as soon as the users enter into a hotspot area,” said Eg.
He said Palette had pioneered and developed the 3G offload to WiFi technology and had started to deliver such products.
However, Maxis' Dioguardi added that the WiFi rollout cost might not necessarily be cheap.
“There will be high investment needed in transmission backhaul to build a WiFi network with similar coverage as a 3G network and with sufficient capacity. Hence, WiFi rollout is not necessarily cheap. WiFi also uses unlicensed frequencies and there could be interference issues with other WiFi networks or other devices that use the same unlicensed frequency,” he said.
According to Dioguardi, there were other solutions in the core and radio network to manage the growth in the demand of data traffic.
“In summary, WiFi can be a solution in localised public data hotspots or within customers' homes where fixed broadband exists. But in the short to medium term, it will not provide sufficient or significant data offload for a pan-Malaysian wireless broadband network,” he said.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/21/business/8105423
Green Packet's Breakeven Target Pushed Again
Monday February 21, 2011
Corporate Portrait by Leong Hung Yee
Green Packet remains bullish on nomadic segment
PETALING JAYA: Investors in Green Packet Bhd must be concerned. The WiMAX player has again missed its breakeven target.
The company got listed in 2005 with ambitious plans of breaking into the telecommunications scene. To be fair, as a new kid on the block, Green Packet has made a significant impact on the market it just announced its results for the financial year ended Dec 31, 2010, with revenues hitting close to RM400mil and customer base that had hit 274,000.
Since 2008, there had been pronouncements that it would turn EBITDA (earnings before interest, tax, depreciation and amortisation) positive.
Its target has since been pushed to end-2011.
To be fair, Green Packet is still in its growth stage. And aggressively so.
Puan Chan Cheong says the company has strategies in place
In a briefing last week, CEO Puan Chan Cheong said the deferment of its EBITDA breakeven was due to the more competitive environment and lower price point in the nomadic segment that its subsidiary, Packet One Networks (M) Sdn Bhd (P1), planned to grow going forward.
The nomadic segment refers to the mobile broadband services. Prior to this, P1 was focused on capturing market share from the fixed broadband segment.
P1 has been venturing aggressively into the nomadic segment since its South Korean partner, SK Telekoms Co Ltd, bought into the company and input in the management.
In the fourth quarter ended Dec 31, 2010, PI added 56,000 subscribers, its highest ever net adds. The total network subscribers added for 2010 was a 101% growth to 134,000. It plans to have 450,000 subscribers by year-end.
“Previously, we were targeting the fixed broadband segment. However, the growth segment is the nomadic segment. On a compounded basis, it is expected to grow by some 70% up to 2014. We want to make an impact in the mobile segment now,” Puan said.
While it is aggressively acquiring new customers, P1's average revenue per user (ARPU) has been slightly dented by fiercer competition and lower price point in the nomadic segment which P1 plans to grow in the fourth quarter.
Puan expected some short-term erosion of P1's ARPU but said the company had strategies in place to ensure a strong ARPU in the long run.
Its ARPU fell to RM72 in the fourth quarter from RM81 in the preceeding quarter on the back of a three-fold growth in its nomadic segment. It was also having a short-term promotional package, thus the lower ARPU.
Green Packet believes that if does not not acquire these nomadic subscribers aggressively now, it is going to be more expensive later on.
The subscriber acquisition cost will rise as more branding will be needed with more competition. It will have to cut prices steeply to win over customers from other providers and there is still a lot of unserved market.
For the fourth quarter, Green Packet's revenue increased 58.08% to RM116.25mil, while net loss was reduced to RM77.68mil from RM100.71mil previously.
For the full year, the group's revenue increased by 81% to RM394mil. Its EBITDA losses decreased 34% to RM78mil.
Green Packet had last last year also announced its corporate re-branding to “P1 4G” from “Pl WiMAX” and launched several advertising campaigns, thus incurring cost for the marketing exercise.
The corporate branding to P1 4G buoyed well with Green Packet's plans to venture into the long-term evolution networks going forward.
This year, Green Packet plans to invest RM200mil to RM250mil in capital expenditure as part of its target to build an additional 650 sites to reach 1,600 by year-end to cover slightly more than 50% of the population nationwide. Currently, it has a network coverage of some 45%.
While these are plausible explanations for Green Packet to keep pushing its breakeven target dates, the question remains whether investors will be patient. Following the company's latest statement on Wednesday on its deferred breakeven target timeline, Green Packet's shares lost 7.19% the next day. The shares have since recovered 1.41% to close last Friday at 72 sen.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/21/business/8104660
Corporate Portrait by Leong Hung Yee
Green Packet remains bullish on nomadic segment
PETALING JAYA: Investors in Green Packet Bhd must be concerned. The WiMAX player has again missed its breakeven target.
The company got listed in 2005 with ambitious plans of breaking into the telecommunications scene. To be fair, as a new kid on the block, Green Packet has made a significant impact on the market it just announced its results for the financial year ended Dec 31, 2010, with revenues hitting close to RM400mil and customer base that had hit 274,000.
Since 2008, there had been pronouncements that it would turn EBITDA (earnings before interest, tax, depreciation and amortisation) positive.
Its target has since been pushed to end-2011.
To be fair, Green Packet is still in its growth stage. And aggressively so.
Puan Chan Cheong says the company has strategies in place
In a briefing last week, CEO Puan Chan Cheong said the deferment of its EBITDA breakeven was due to the more competitive environment and lower price point in the nomadic segment that its subsidiary, Packet One Networks (M) Sdn Bhd (P1), planned to grow going forward.
The nomadic segment refers to the mobile broadband services. Prior to this, P1 was focused on capturing market share from the fixed broadband segment.
P1 has been venturing aggressively into the nomadic segment since its South Korean partner, SK Telekoms Co Ltd, bought into the company and input in the management.
In the fourth quarter ended Dec 31, 2010, PI added 56,000 subscribers, its highest ever net adds. The total network subscribers added for 2010 was a 101% growth to 134,000. It plans to have 450,000 subscribers by year-end.
“Previously, we were targeting the fixed broadband segment. However, the growth segment is the nomadic segment. On a compounded basis, it is expected to grow by some 70% up to 2014. We want to make an impact in the mobile segment now,” Puan said.
While it is aggressively acquiring new customers, P1's average revenue per user (ARPU) has been slightly dented by fiercer competition and lower price point in the nomadic segment which P1 plans to grow in the fourth quarter.
Puan expected some short-term erosion of P1's ARPU but said the company had strategies in place to ensure a strong ARPU in the long run.
Its ARPU fell to RM72 in the fourth quarter from RM81 in the preceeding quarter on the back of a three-fold growth in its nomadic segment. It was also having a short-term promotional package, thus the lower ARPU.
Green Packet believes that if does not not acquire these nomadic subscribers aggressively now, it is going to be more expensive later on.
The subscriber acquisition cost will rise as more branding will be needed with more competition. It will have to cut prices steeply to win over customers from other providers and there is still a lot of unserved market.
For the fourth quarter, Green Packet's revenue increased 58.08% to RM116.25mil, while net loss was reduced to RM77.68mil from RM100.71mil previously.
For the full year, the group's revenue increased by 81% to RM394mil. Its EBITDA losses decreased 34% to RM78mil.
Green Packet had last last year also announced its corporate re-branding to “P1 4G” from “Pl WiMAX” and launched several advertising campaigns, thus incurring cost for the marketing exercise.
The corporate branding to P1 4G buoyed well with Green Packet's plans to venture into the long-term evolution networks going forward.
This year, Green Packet plans to invest RM200mil to RM250mil in capital expenditure as part of its target to build an additional 650 sites to reach 1,600 by year-end to cover slightly more than 50% of the population nationwide. Currently, it has a network coverage of some 45%.
While these are plausible explanations for Green Packet to keep pushing its breakeven target dates, the question remains whether investors will be patient. Following the company's latest statement on Wednesday on its deferred breakeven target timeline, Green Packet's shares lost 7.19% the next day. The shares have since recovered 1.41% to close last Friday at 72 sen.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/21/business/8104660
P1 Confident of 450,000 Subscribers
Thursday February 17, 2011
By TEE LIN SAY
linsay@thestar.com.my
PETALING JAYA: Green PacketBhd's 4G broadband service unit, Packet One Networks (M) Sdn Bhd(P1), is confident of achieving 450,000 subscribers and expandingits base stations to more than 1,600sites to cover 55% of the populationnationwide by end-2011.
Thus, it is also deferring its target of being EBITDA (earnings before interest, taxation, depreciation and amortisation) positive to end-2011, as it focuses to aggressively acquire nomadic customers from the mobile broadband segment.
Puan Chan Cheong
The nomadic segment refers to the mobile broadband services. Prior to this, P1 was focused on capturing market share from the fixed broadband segment.
Previously, Green Packet had mentioned that it would be EBITDA positive in the first quarter of its financial year ending Dec 31, 2011.
However, with the more intense competition and lower price point in the nomadic segment which P1 plans to grow, the breakeven target needs to be delayed to year-end.
Green Pack et group managing director Puan Chan Cheong expects some short-term erosion of P1's average revenue per user (ARPU) over the short term as it embarks on this strategy.
“The major shareholders in P1 have decided to accelerate subscriber acquisition efforts with a specific short-term focus on the nomadic segment.
P1 will be introducing additional packages, devices and bundles at competitive prices to clearly differentiate it from the competition for both the fixed and nomadic segments. We will launch a new advertising campaign in the first quarter,” said Puan.
Green Packet plans to spend some RM200mil to RM250mil to increase P1's network coverage this year. It will set up a further 650 base sites, achieving a total of 1,600 sites by year-end. Currently, it has a network coverage of some 45%.
“Previously, we were targeting the fixed broadband segment. However, the growth segment is in the nomadic segment. On a compounded basis, it is expected to grow by some 70% up to 2014. We want to make an impact in the mobile segment now,” he said.
For the fourth quarter end ed Dec 31, 2010, Green Packet's revenue increased 58.08% to RM116.25mil, while net loss was reduced to RM77.68mil from RM100.71mil previously.
For the full year, the group's revenue increased by 81% year-on-year to RM394mil. Its EBITDA losses decreased 34% to RM78mil. Under P1, its 4G subscribers reached 274,000 as at end-2010, with a record 56,000 subscribers added in the fourth quarter.
This was contributed by the nomadic segment, which grew three-fold in the fourth quarter, resulting in decreased ARPU to RM72.
The total network subscribers added in P1 in 2010 was a 101% growth to 134,000.
As at end-2010, P1 had a 7% market share out of a total subscriber base of 3.8 million. On its market share extrapolated based on P1's coverage area, it had a 16% market share.
Green Packet shares ended the day unchanged at 76.5 sen.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/17/business/20110217072536
By TEE LIN SAY
linsay@thestar.com.my
PETALING JAYA: Green PacketBhd's 4G broadband service unit, Packet One Networks (M) Sdn Bhd(P1), is confident of achieving 450,000 subscribers and expandingits base stations to more than 1,600sites to cover 55% of the populationnationwide by end-2011.
Thus, it is also deferring its target of being EBITDA (earnings before interest, taxation, depreciation and amortisation) positive to end-2011, as it focuses to aggressively acquire nomadic customers from the mobile broadband segment.
Puan Chan Cheong
The nomadic segment refers to the mobile broadband services. Prior to this, P1 was focused on capturing market share from the fixed broadband segment.
Previously, Green Packet had mentioned that it would be EBITDA positive in the first quarter of its financial year ending Dec 31, 2011.
However, with the more intense competition and lower price point in the nomadic segment which P1 plans to grow, the breakeven target needs to be delayed to year-end.
Green Pack et group managing director Puan Chan Cheong expects some short-term erosion of P1's average revenue per user (ARPU) over the short term as it embarks on this strategy.
“The major shareholders in P1 have decided to accelerate subscriber acquisition efforts with a specific short-term focus on the nomadic segment.
P1 will be introducing additional packages, devices and bundles at competitive prices to clearly differentiate it from the competition for both the fixed and nomadic segments. We will launch a new advertising campaign in the first quarter,” said Puan.
Green Packet plans to spend some RM200mil to RM250mil to increase P1's network coverage this year. It will set up a further 650 base sites, achieving a total of 1,600 sites by year-end. Currently, it has a network coverage of some 45%.
“Previously, we were targeting the fixed broadband segment. However, the growth segment is in the nomadic segment. On a compounded basis, it is expected to grow by some 70% up to 2014. We want to make an impact in the mobile segment now,” he said.
For the fourth quarter end ed Dec 31, 2010, Green Packet's revenue increased 58.08% to RM116.25mil, while net loss was reduced to RM77.68mil from RM100.71mil previously.
For the full year, the group's revenue increased by 81% year-on-year to RM394mil. Its EBITDA losses decreased 34% to RM78mil. Under P1, its 4G subscribers reached 274,000 as at end-2010, with a record 56,000 subscribers added in the fourth quarter.
This was contributed by the nomadic segment, which grew three-fold in the fourth quarter, resulting in decreased ARPU to RM72.
The total network subscribers added in P1 in 2010 was a 101% growth to 134,000.
As at end-2010, P1 had a 7% market share out of a total subscriber base of 3.8 million. On its market share extrapolated based on P1's coverage area, it had a 16% market share.
Green Packet shares ended the day unchanged at 76.5 sen.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/17/business/20110217072536
GPacket Signs Pact With Time Warner
Thursday February 10, 2011
PETALING JAYA: Green Packet Bhd has signed an agreement with Time Warner Cable, the second largest cable operator in the United States, to provide its next generation connection management solutions.
Time Warner Cable would use customised versions of Green Packet's Intouch connection manager, Intouch reporting server and Intouch update server for its Windows and Mac platforms, it said in a statement.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/10/business/8035296
PETALING JAYA: Green Packet Bhd has signed an agreement with Time Warner Cable, the second largest cable operator in the United States, to provide its next generation connection management solutions.
Time Warner Cable would use customised versions of Green Packet's Intouch connection manager, Intouch reporting server and Intouch update server for its Windows and Mac platforms, it said in a statement.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/10/business/8035296
Higher Costs May Hurt Green Packet Earnings
Thursday February 3, 2011
Its Arpu declined on heavy advertising and promotion activities
PETALING JAYA: Higher sales and marketing costs as well as declining average revenue per user (Arpu) are expected to drag down telecommunications company Green Packet Bhd's fourth-quarter ended Dec 31, 2010 (4Q10) results, according to a research house.
HwangDBS Vickers Research said in a report that Green Packet would likely record another Ebitda (earnings before interest, tax, depreciation and amortisation) loss in 4Q10 although broadband subscribers achieved was close to its 280,000 target.
“We think its broadband Arpu for the quarter may have been dampened with the promotion for 50% discount for second and third month bills, while sales and marketing costs may have jumped as the group began advertising heavily in the quarter to ramp up the number of net adds.
Puan Chan Cheong says details on Green Packet break-even levels will be announced this month.
“We estimate that Green Packet has achieved a record 56,000 net adds in the quarter, significantly higher than 22,000 to 35,000 quarterly net adds recorded in the first three quarters of 2010,” it said in a report yesterday.
Net adds refer to the number of new subscribers, or gross adds, minus the number of customers that dropped service.
Given the expected weak 4Q10 results, HwangDBS said it had raised the company's LBITDA (loss before interest, tax, depreciation and amortisation) for financial year ended Dec 31, 2010 by 13% to RM71.1mil.
However, it said core net loss (for financial year 2010) was reduced by 35% on higher minority interests based on first nine-month results of 2010 accounting adjustment (which includes the impact of SK Telecom's entrance as one of the major shareholders in Packet One Networks (M) Sdn Bhd in the third quarter of 2010).
Green Packet subsidiary Packet One and SK Telecom entered into a strategic alliance in June 2010, whereby SK Telecom invested US$100mil in Packet One for a 25.8% equity stake.
On Ebitda turnaround, HwangDBS said it would likely be much later this year.
“We think that with higher-than-expected sales and marketing costs as well as declining Arpu in the broadband segment, it may take a while before Green Packet achieves profitability.
“Maintaining Arpu will be crucial for Green Packet. However, competition from other players may continue to exert pressure.
“Green Packet's Arpu has fallen from a high of RM94 in first quarter of 2009 to RM81 in the third quarter of 2010 and we expect it to continue to fall as the group cuts its prices to grow its subscriber base especially, in the wireless segment (via its Wiggy plans) where competition is more intense. We project Arpu to fall to RM65 in the current financial year and RM60 in 2012. Although we project Green Packet to be Ebitda positive in the second half of 2011, there could still be downside risk from increasing competition, especially in the wireless broadband segment,” the research house said.
The estimated Arpu for the financial year 2010 is around RM77.
For the first nine months of financial year 2010 ended Dec 31, Green Packet posted a net loss of RM56.8mil compared with a net loss of RM81.9mil for the same period in 2009.
Revenue for the period under review stood at RM277.7mil against RM161mil in 2009.
However, in the middle of last month, StarBiz reported that the company was on track to be Ebitda-positive by this year, especially since it had achieved its milestone subscriber base of 280,000.
The news report said the company had been registering lower Ebitda losses for the past three consecutive quarters on the back of a growing subscriber base and revenue contribution.
The report, quoting its group managing director and chief executive officer Puan Chan Cheong, said Green Packet would reveal more details on its break-even levels when it announced its full-year results for 2010 this month. When contacted, Puan declined to comment.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/3/business/7926780
Its Arpu declined on heavy advertising and promotion activities
PETALING JAYA: Higher sales and marketing costs as well as declining average revenue per user (Arpu) are expected to drag down telecommunications company Green Packet Bhd's fourth-quarter ended Dec 31, 2010 (4Q10) results, according to a research house.
HwangDBS Vickers Research said in a report that Green Packet would likely record another Ebitda (earnings before interest, tax, depreciation and amortisation) loss in 4Q10 although broadband subscribers achieved was close to its 280,000 target.
“We think its broadband Arpu for the quarter may have been dampened with the promotion for 50% discount for second and third month bills, while sales and marketing costs may have jumped as the group began advertising heavily in the quarter to ramp up the number of net adds.
Puan Chan Cheong says details on Green Packet break-even levels will be announced this month.
“We estimate that Green Packet has achieved a record 56,000 net adds in the quarter, significantly higher than 22,000 to 35,000 quarterly net adds recorded in the first three quarters of 2010,” it said in a report yesterday.
Net adds refer to the number of new subscribers, or gross adds, minus the number of customers that dropped service.
Given the expected weak 4Q10 results, HwangDBS said it had raised the company's LBITDA (loss before interest, tax, depreciation and amortisation) for financial year ended Dec 31, 2010 by 13% to RM71.1mil.
However, it said core net loss (for financial year 2010) was reduced by 35% on higher minority interests based on first nine-month results of 2010 accounting adjustment (which includes the impact of SK Telecom's entrance as one of the major shareholders in Packet One Networks (M) Sdn Bhd in the third quarter of 2010).
Green Packet subsidiary Packet One and SK Telecom entered into a strategic alliance in June 2010, whereby SK Telecom invested US$100mil in Packet One for a 25.8% equity stake.
On Ebitda turnaround, HwangDBS said it would likely be much later this year.
“We think that with higher-than-expected sales and marketing costs as well as declining Arpu in the broadband segment, it may take a while before Green Packet achieves profitability.
“Maintaining Arpu will be crucial for Green Packet. However, competition from other players may continue to exert pressure.
“Green Packet's Arpu has fallen from a high of RM94 in first quarter of 2009 to RM81 in the third quarter of 2010 and we expect it to continue to fall as the group cuts its prices to grow its subscriber base especially, in the wireless segment (via its Wiggy plans) where competition is more intense. We project Arpu to fall to RM65 in the current financial year and RM60 in 2012. Although we project Green Packet to be Ebitda positive in the second half of 2011, there could still be downside risk from increasing competition, especially in the wireless broadband segment,” the research house said.
The estimated Arpu for the financial year 2010 is around RM77.
For the first nine months of financial year 2010 ended Dec 31, Green Packet posted a net loss of RM56.8mil compared with a net loss of RM81.9mil for the same period in 2009.
Revenue for the period under review stood at RM277.7mil against RM161mil in 2009.
However, in the middle of last month, StarBiz reported that the company was on track to be Ebitda-positive by this year, especially since it had achieved its milestone subscriber base of 280,000.
The news report said the company had been registering lower Ebitda losses for the past three consecutive quarters on the back of a growing subscriber base and revenue contribution.
The report, quoting its group managing director and chief executive officer Puan Chan Cheong, said Green Packet would reveal more details on its break-even levels when it announced its full-year results for 2010 this month. When contacted, Puan declined to comment.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/3/business/7926780
Thursday, February 17, 2011
Get Ready to Reinvent for A New Mobile Lifestyle
Friday February 18, 2011
Friday Reflections - By B.K. Sidhu
THERE are 20 things you should do when in Barcelona from eating paella to tapas, sipping Spanish wine and feasting the delicious chocolates.
The city has breathtaking architecture, loads of museums to visit and value-for-money shopping be it leather or cotton products.
The Gaudi's fairytale architecture, the breathtaking Sagrada Familia and grotesque Gothic cathedral is a must, so are Picasso and Salvador Dali's works.
But wherever you go, keep your eyes to your belongings as snatch theft is rampant here. And if you are, like me, hoping to catch Leo Messi on the streets, you'd be disappointed.
This week, Barcelona was home to nearly 50,000 people from the mobile world as this is where the Mobile World Congress (MWC) was held. Moving from Cannes, Barcelona seems to have the stickiness other cities do not offer as MWC has been held here every February for nearly a decade.
Participants gather around the Google Android stand at the Mobile World Congress in Barcelona, Spain, Thursday. - AP
Eight halls were filled with people, equipment and solutions. Malaysia was represented by its regulator and the many service providers. There were officials from Telekom Malaysia Bhd, Maxis Bhd, Axiata Bhd, Time dotcom Bhd and even Asiaspace.
Those from the vendor industry made their impact with big and colourful booths. Ericsson, Huawei, Nokia Siemens, Alcatel-Lucent, Cisco and Samsung they were all there. So were the content providers there were small companies from all over the world but only one from South-East Asia and it was from Singapore, not Malaysia. Wonder what happened to all the big talk about innovation and creativity.
MWC is a place where buyers and sellers look out for trends and set trends. This year's event focused on several topics. But the way forward is smartphones they will rule and those which are user-friendly will see top sales. That is why HTC has a special button for Facebook in its latest creation.
Sony Ericsson's Xperia range comes with Bravia technology and the company has unveiled a PlayStation phone that is set to change the way people play games.
Tablet will be the game changer in the way you eat, entertain and work, and maybe, eat, love and pray. If vendors are not creating tablets now, they will be left out of the explosive growth.
Data traffic is growing exponentially and LTE is the next-generation technology being promoted to be able to efficiently use spectrum. There are nearly 200 rollouts to pilots conducted globally. The big boys China Mobile (the biggest globally in terms of subscriber base, with 600 million users), India's Bharti Airtel, Google and Japan's Softbank are backing LTE.
Android is the operating system of the future even though Nokia went against the grain to opt for Microsoft Windows Phone 7 platform.
Mobile TV that is what some say will be the last frontier to video viewing. But one expert poured buckets of cold water on this belief. To him, the old way of watching TV on big screens will never fade; no one can watch TV for hours on small screens.
From the congress, it is clear that the vendors are hoping for greater capital expenditure by operators, who in turn hope to get a bigger slice of content business, leaving the content creators will little share of the market.
A clear message from the congress is that operators cannot remain suppliers of dumb pipes; they need to monetise the pipes but first, they need to listen to customers.
A big issue raised was how some service providers are coining the word 4G to advertise their products when the speed and capacity they provide is far from what a real 4G network should be. There is a big misconception of what 4G can actually deliver.
The regulators were told to stop “auto-pilot” and let players compete. Those players, which also do not subscribe to open access of networks, should close shop as the only way forward is by opening up networks and allowing competition.
The way spectrum is dished out in some countries was critised as regulators should know that spectrum is a rare commodity no single party should get a large chunk of it and telcos should not just sit on it.
The crux of it all is about reinventing oneself be it regulators or service providers to ride on the explosion in data and allow consumers to have the lifestyle that the world is ready to embrace. Can operators and regulators in Malaysia risk that?
Deputy news editor B.K. Sidhu can't seem to get enough of the delicious Spanish paella.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/18/business/8088958&sec=business
Friday Reflections - By B.K. Sidhu
THERE are 20 things you should do when in Barcelona from eating paella to tapas, sipping Spanish wine and feasting the delicious chocolates.
The city has breathtaking architecture, loads of museums to visit and value-for-money shopping be it leather or cotton products.
The Gaudi's fairytale architecture, the breathtaking Sagrada Familia and grotesque Gothic cathedral is a must, so are Picasso and Salvador Dali's works.
But wherever you go, keep your eyes to your belongings as snatch theft is rampant here. And if you are, like me, hoping to catch Leo Messi on the streets, you'd be disappointed.
This week, Barcelona was home to nearly 50,000 people from the mobile world as this is where the Mobile World Congress (MWC) was held. Moving from Cannes, Barcelona seems to have the stickiness other cities do not offer as MWC has been held here every February for nearly a decade.
Participants gather around the Google Android stand at the Mobile World Congress in Barcelona, Spain, Thursday. - AP
Eight halls were filled with people, equipment and solutions. Malaysia was represented by its regulator and the many service providers. There were officials from Telekom Malaysia Bhd, Maxis Bhd, Axiata Bhd, Time dotcom Bhd and even Asiaspace.
Those from the vendor industry made their impact with big and colourful booths. Ericsson, Huawei, Nokia Siemens, Alcatel-Lucent, Cisco and Samsung they were all there. So were the content providers there were small companies from all over the world but only one from South-East Asia and it was from Singapore, not Malaysia. Wonder what happened to all the big talk about innovation and creativity.
MWC is a place where buyers and sellers look out for trends and set trends. This year's event focused on several topics. But the way forward is smartphones they will rule and those which are user-friendly will see top sales. That is why HTC has a special button for Facebook in its latest creation.
Sony Ericsson's Xperia range comes with Bravia technology and the company has unveiled a PlayStation phone that is set to change the way people play games.
Tablet will be the game changer in the way you eat, entertain and work, and maybe, eat, love and pray. If vendors are not creating tablets now, they will be left out of the explosive growth.
Data traffic is growing exponentially and LTE is the next-generation technology being promoted to be able to efficiently use spectrum. There are nearly 200 rollouts to pilots conducted globally. The big boys China Mobile (the biggest globally in terms of subscriber base, with 600 million users), India's Bharti Airtel, Google and Japan's Softbank are backing LTE.
Android is the operating system of the future even though Nokia went against the grain to opt for Microsoft Windows Phone 7 platform.
Mobile TV that is what some say will be the last frontier to video viewing. But one expert poured buckets of cold water on this belief. To him, the old way of watching TV on big screens will never fade; no one can watch TV for hours on small screens.
From the congress, it is clear that the vendors are hoping for greater capital expenditure by operators, who in turn hope to get a bigger slice of content business, leaving the content creators will little share of the market.
A clear message from the congress is that operators cannot remain suppliers of dumb pipes; they need to monetise the pipes but first, they need to listen to customers.
A big issue raised was how some service providers are coining the word 4G to advertise their products when the speed and capacity they provide is far from what a real 4G network should be. There is a big misconception of what 4G can actually deliver.
The regulators were told to stop “auto-pilot” and let players compete. Those players, which also do not subscribe to open access of networks, should close shop as the only way forward is by opening up networks and allowing competition.
The way spectrum is dished out in some countries was critised as regulators should know that spectrum is a rare commodity no single party should get a large chunk of it and telcos should not just sit on it.
The crux of it all is about reinventing oneself be it regulators or service providers to ride on the explosion in data and allow consumers to have the lifestyle that the world is ready to embrace. Can operators and regulators in Malaysia risk that?
Deputy news editor B.K. Sidhu can't seem to get enough of the delicious Spanish paella.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/18/business/8088958&sec=business
Tuesday, February 15, 2011
Monday, February 14, 2011
Maxis confident 7.1 million mobile internet users to use movies application
Monday February 14, 2011
KUALA LUMPUR: Maxis Bhd is confident its 7.1 million active mobile internet users will use the newly launched Maxis Movies Application by end of this year.
Its vice-president and head of products, devices and innovation, T. Kugan, said since the soft launch of the Maxis Movies iPhone application three months ago, there have been 50,000 downloads.
As of Sept 30, 2010, Maxis had 13.52 million mobile subscriptions with 39.2 percent of non-voice revenue as part of mobile revenue.
“Malaysians are addicted to two things food and movies. Therefore, we are positive that our total mobile internet users will use the application as it is convenient,” he told reporters at the launching ceremony last Friday.
Maxis is the first operator in the country to launch the new Maxis Movies Application that allows moviegoers to purchase movie tickets on the go, anytime, anywhere, adding convenience to their lives.
The application's integration with PayPal's mobile payment service ensures that all movie ticket payments made are consistently simple and secure in as little as two clicks.
Kugan said the partnership with Paypal is for a year. “We will look at the take up rate and demand for the application and then will set up further based upon it,” he added.
In keeping with its focus on delighting customers, Maxis also launched Buy-1 Get-1 Free movie ticket deal every Maxis Movie Day (every Tuesday) on movies screened after 6pm at TGV and Golden Screen Cinemas till the end of the year.
The application can be downloaded for free by smartphone users while 50 sen will be charged for booking. - BERNAMA
http://biz.thestar.com.my/news/story.asp?file=/2011/2/14/business/20110214164047&sec=business
KUALA LUMPUR: Maxis Bhd is confident its 7.1 million active mobile internet users will use the newly launched Maxis Movies Application by end of this year.
Its vice-president and head of products, devices and innovation, T. Kugan, said since the soft launch of the Maxis Movies iPhone application three months ago, there have been 50,000 downloads.
As of Sept 30, 2010, Maxis had 13.52 million mobile subscriptions with 39.2 percent of non-voice revenue as part of mobile revenue.
“Malaysians are addicted to two things food and movies. Therefore, we are positive that our total mobile internet users will use the application as it is convenient,” he told reporters at the launching ceremony last Friday.
Maxis is the first operator in the country to launch the new Maxis Movies Application that allows moviegoers to purchase movie tickets on the go, anytime, anywhere, adding convenience to their lives.
The application's integration with PayPal's mobile payment service ensures that all movie ticket payments made are consistently simple and secure in as little as two clicks.
Kugan said the partnership with Paypal is for a year. “We will look at the take up rate and demand for the application and then will set up further based upon it,” he added.
In keeping with its focus on delighting customers, Maxis also launched Buy-1 Get-1 Free movie ticket deal every Maxis Movie Day (every Tuesday) on movies screened after 6pm at TGV and Golden Screen Cinemas till the end of the year.
The application can be downloaded for free by smartphone users while 50 sen will be charged for booking. - BERNAMA
http://biz.thestar.com.my/news/story.asp?file=/2011/2/14/business/20110214164047&sec=business
Sunday, February 13, 2011
TM to Invest RM12m In New Cable System
Saturday February 12, 2011
KUALA LUMPUR: Telekom Malaysia Bhd (TM) will be investing US$4mil (RM12.2mil) for its portion of the Batam-Dumai-Malacca cable system.
“The amount is rather small so we will be funding it ourselves,” TM Global executive vice-president Mohamad Rozaimy Abdul Rahman said after signing a construction and maintenance agreement with PT XL Axiata Tbk and PT Mora Telematika of Indonesia to jointly build high-bandwidth optical fibre submarine cable system between Malaysia and Indonesia.
The submarine cable, Batam-Dumai-Malacca (BDM) cable system is about 400km long, costing about US$7.6mil.
The BDM will connect two routes, Malacca-Batam and Malacca-Dumai. The landing station in Malaysia will be provided by TM while the Indonesian landing stations will be established by XL Axiata.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/12/business/8051918&sec=business
KUALA LUMPUR: Telekom Malaysia Bhd (TM) will be investing US$4mil (RM12.2mil) for its portion of the Batam-Dumai-Malacca cable system.
“The amount is rather small so we will be funding it ourselves,” TM Global executive vice-president Mohamad Rozaimy Abdul Rahman said after signing a construction and maintenance agreement with PT XL Axiata Tbk and PT Mora Telematika of Indonesia to jointly build high-bandwidth optical fibre submarine cable system between Malaysia and Indonesia.
The submarine cable, Batam-Dumai-Malacca (BDM) cable system is about 400km long, costing about US$7.6mil.
The BDM will connect two routes, Malacca-Batam and Malacca-Dumai. The landing station in Malaysia will be provided by TM while the Indonesian landing stations will be established by XL Axiata.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/12/business/8051918&sec=business
Temasek pays US$1.7mil Indonesia telecom fine
Saturday February 12, 2011
SINGAPORE: Singapore state investment firm Temasek Holdings yesterday it had paid a 15 billion rupiah (US$1.7mil) fine imposed for breaching anti-competition laws in Indonesia's telecoms sector.
The commission ruled in November 2007 that Temasek was guilty of anti-competitive behaviour through its stakes in Indonesia's two biggest domestic mobile phone operators.
Temasek said it made the payment in compliance with an Indonesian Supreme Court ruling that upheld the commission's decision, but maintained the company had “never been involved” in any irregularity.
Analysts said Temasek decided to pay the fine to avoid any repercussions non-payment would have had for further investment in Indonesia.
“I think that they clearly are looking to Indonesia as a potentially lucrative market for their investments,” said David Cohen, director of Asian economic forecasting at Action Economics.
He said it was easier for Temasek to pay the fine and “get on with things.” AFP
http://biz.thestar.com.my/news/story.asp?file=/2011/2/12/business/8049166&sec=business
SINGAPORE: Singapore state investment firm Temasek Holdings yesterday it had paid a 15 billion rupiah (US$1.7mil) fine imposed for breaching anti-competition laws in Indonesia's telecoms sector.
The commission ruled in November 2007 that Temasek was guilty of anti-competitive behaviour through its stakes in Indonesia's two biggest domestic mobile phone operators.
Temasek said it made the payment in compliance with an Indonesian Supreme Court ruling that upheld the commission's decision, but maintained the company had “never been involved” in any irregularity.
Analysts said Temasek decided to pay the fine to avoid any repercussions non-payment would have had for further investment in Indonesia.
“I think that they clearly are looking to Indonesia as a potentially lucrative market for their investments,” said David Cohen, director of Asian economic forecasting at Action Economics.
He said it was easier for Temasek to pay the fine and “get on with things.” AFP
http://biz.thestar.com.my/news/story.asp?file=/2011/2/12/business/8049166&sec=business
NGSB withdraws claims against TM
Saturday February 12, 2011
PETALING JAYA: Network Guidance Sdn Bhd (NGSB) has withdrawn claims for damages amounting to RM400mil and loss of profit of RM500mil against Telekom Malaysia Bhd and TM Net Sdn Bhd over an alleged breach of contract.
TM told Bursa Malaysia yesterday that NGSB withdrew its claims for aggravated damages of RM200mil and exemplary damages of RM200mil and also abandoned the claim for loss of profit of RM500mil.
In the re-amended claim, NGSB sought a declaration that both parties had entered into an agreement for a joint-venture project but TM breached the agreement. As a result of the breach of agreement, NGSB suffered loss and damages. NGSB was now claiming special damages totalling RM23.95mil.
In the re-amended claim, NGSB stated it had changed its name to Fine TV Network Sdn Bhd.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/12/business/8052934&sec=business
PETALING JAYA: Network Guidance Sdn Bhd (NGSB) has withdrawn claims for damages amounting to RM400mil and loss of profit of RM500mil against Telekom Malaysia Bhd and TM Net Sdn Bhd over an alleged breach of contract.
TM told Bursa Malaysia yesterday that NGSB withdrew its claims for aggravated damages of RM200mil and exemplary damages of RM200mil and also abandoned the claim for loss of profit of RM500mil.
In the re-amended claim, NGSB sought a declaration that both parties had entered into an agreement for a joint-venture project but TM breached the agreement. As a result of the breach of agreement, NGSB suffered loss and damages. NGSB was now claiming special damages totalling RM23.95mil.
In the re-amended claim, NGSB stated it had changed its name to Fine TV Network Sdn Bhd.
http://biz.thestar.com.my/news/story.asp?file=/2011/2/12/business/8052934&sec=business
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