Saturday, April 23, 2011

Smartphone Subsidy May Hit Celcom Margin

Saturday April 23, 2011
By LEONG HUNG YEE
hungyee@thestar.com.my


KUALA LUMPUR: Celcom Axiata Bhd expects high subsidy on smartphones will put a dent on its earnings before interest, tax, depreciation and amortisation (EBITDA) margin.

“It (subsidy) will put a pressure on our ebitda margin but we will have to find ways so as not to crush our EBITDA,” chief executive officer Datuk Seri Shazalli Ramly said after launching iPhone 4 for its enterprises customers.

“We will have to be creative in the way we create our smartphone packages and build a smart infrastructure. We are now sharing sites with DiGi.Com Bhd,” he said, adding that it had managed to sustain its EBITDA margin for the last 19 consecutive quarters.


Datuk Seri Shazalli Ramly giving a presentation at the launch of Celcom’s iPhone4 service.
For the financial year ended Dec 31, 2010 (FY10), Celcom's ebitda rose 13% to RM3.2bil from RM2.8bil a year ago. EBITDA margins stood at 46.7% for the full year.

Analysts said the costs in the form of handset subsidies for both new subscribers and upgraders were set to increase further as smartphone usage continued to rise.

They said mobile handset subsidies had always been an industry paradox increasing smartphone penetration and Arpu (average revenue per user) on one hand, but pressuring margins on the other.

Nevertheless, analysts said these subsidies were “positive investments” since they helped Celcom to acquire and retain higher Arpu and lower churning rate as customers would be bounded on longer-term contracts of at least 12 months.

Shazalli said Celcom was unperturbed in being a late comer in offering iPhone. “I don't mind being the last. In fact, we were the first to be contacted by Apple Inc in 2005. Our network was not ready then.”

He said the group had decided to wait for all its infrastructure, including network, back-end system and customer services, to be ready to provide consumers with the best user experience.

“When we unveil Blackberry smartphones in 2005, we weren't the first to introduce it. We want to enhance out network then to allow our infrastructure to be ready before rolling out the Blackberry.

“Today, we are the No. 1 Blackberry provider in Malaysia,” Shazalli said, adding that it hoped to replicate its success in marketing Blackberry for iPhone.

Some 51 “touch points” would be available by May 18 for Celcom iPhone subscribers to walk in to service their iPhones.

The current iPhone packages by Celcom is only available to its enterprise subscribers. It will offer the product to the mass market in a month's time. Its iPhone 4 is available from as low as RM248 for the 16GB model.

Shazalli said smartphone users now constitute 20% of Celcom's total subscribers of 11.2 million and the company aimed to increase this to 30% by the year-end.

http://biz.thestar.com.my/news/story.asp?file=/2011/4/23/business/8540408&sec=business

Khazanah Sells Pos Malaysia stake to DRB-HICOM

Saturday April 23, 2011
By SHARIDAN M. ALI
sharidan@thestar.com.my


KUALA LUMPUR: Government investment arm, Khazanah Nasional Bhd will divest its strategic stake of 32.21% in Pos Malaysia Bhd to DRB-Hicom Bhd at RM3.60 per share or RM622.79mil.

The transaction is deemed as a landmark divestment as it is Khazanah's first divestment of its entire stake in a major government-linked company (GLC).
http://biz.thestar.com.my/news/story.asp?file=/2011/4/23/business/8541352&sec=business
The decision was made after an extensive two-stage process as well as rigorous selection to ensure that the new shareholder was able to bring Pos to the next level of growth.

Khazanah managing director, Tan Sri Azman Mokhtar said DRB-HICOM was chosen based on their overall bid, which offered not only a defined strategy but also an executable business plan and an acceptable offer price.


Stage one of the divestment process saw the resolution relating to the salary of postmen and the revision of postal tariffs.

“Their proposed strategy and business plan in turn provides an effective platform for Pos' growth, if adopted by the board of Pos as a whole,” he said in a statement yesterday.

The offer price of RM3.60 per share is subject to the modification of the special rights redeemable preference share in Pos (special share) held by Minister of Finance Inc. (MoF).

This modification inter alia includes the reservation to appoint up to two board members in Pos; and the removal of rights to appoint the chairman and managing director of Pos and fix their respective remunerations.

This condition precedent is not within Khazanah's control, as it is the sole prerogative of MoF to make any modification on the special share.

The conditional offer price is also subject to the variation in the use of 16 plots of identified lands owned by the Federal Lands Commissioner and leased to Pos. The current terms of the lease only allows for postal services use, while the variation provides for the inclusion of commercial use, over and above the mandatory postal use. In the event the variation does not happen by Dec 31, DRB-HICOM will be refunded 10 sen per share or RM17.30mil.

Khazanah adopted a robust strategic divestment process which involved an open bidding process and a merit-based and transparent selection process. Conducted in two stages the first stage involved addressing key aspects of Pos' macro business and regulatory environments, while the second stage revolved around the restricted tender process.

Stage one saw the resolution of the long-running issue relating to the salary of postmen and the revision of postal tariffs. The postal rate revision took effect in July 1, last year and subsequently, Pos also resolved a long outstanding pay revision for postmen in the same month.

Stage two started with the pre-qualification phase, where Khazanah appointed CIMB Investment Bank Bhd and McKinsey & Company as advisors for the transaction. A total of 48 parties were approached to submit their respective proposals, of which 10 parties expressed their interest to participate and were pre-qualified.

Khazanah then proceeded to the indicative bid phase where all 10 parties were invited to submit their bids. Of these, five reverted with their respective bids where they were all given detailed and equal opportunities to meet Khazanah's advisors and explain their respective strategy and business plan submission.

Of the five bidders, four parties submitted their binding bids.

An independent evaluation panel comprising five senior professionals from the public and private sector with extensive postal and corporate experience had evaluated all the bidders' proposal on the basis of anonymity, where the bidders' names were coded.

The panel, with the assistance of Khazanah's advisors, evaluated the strategy and business plans first. Based on this, the bidders were shortlisted to a final two. Subsequently, the offer price envelopes were opened and evaluated compositely. Both shortlisted bidders were given the opportunity to present to the panel. The panel's evaluation was based on a composite score between strategy and pricing, whereby strategy accounted for 60% and pricing 40%. Based on the composite score, the panel unanimously recommended DRB-HICOM.

Azman said there was a fit and proper test of the new majority shareholder which includes promoting the sustainable development of the universal service obligations (USO), as well as the commitment to retain existing staff in their business plan.

“The commitment to fulfil the social obligations under the USO (as required under the Postal Services Act, 1991) is crucial as postal services have an impact on the rakyat, especially for those residing in remote or rural areas,” he said.

Khazanah's emphasis on strategy and business plans within the evaluation process does not in itself make any assumption of control or otherwise. The process required bidders having to state, in their own opinion, whether a general offer (GO) would be necessary or not.

Khazanah's executive director of investments, who was the project director for this strategic divestment, Mohammed Rashdan Mohd Yusof said it was the buyer's prerogative, and not of the seller, to determine whether a GO was necessary, as only the buyer can ascertain the extent of control they exert over Pos after they acquired the 32% stake.

“Furthermore, the divestment process did not reveal any information to the bidders beyond readily available market information” he said.

Azman concluded: “As a responsible seller to stakeholders including minorities and the rakyat, our emphasis was to ensure that the successful bidder had a robust business plan to both deliver their USO and unlock value and for them to discuss at the Pos board.

The divestment of Khazanah stake in POS was first announced in March 2010 by Prime Minister Datuk Seri Najib Razak at Invest Malaysia 2010 conference.

Since then, many prominent names were speculated to be the buyer of the stake. It was reported that besides DRB-HICOM, Nationwide Express Courier Services Bhd and Scomi Group Bhd were among the shortlisted bidders.

Related Story:

Friday, April 22, 2011

If life is as senang to menang prizes like this. Just subscribe to DiGi's SMS content for news & more to win! #DiGiSenang2Menang

If life is as senang to menang prizes like this. Just subscribe to DiGi's SMS content for news & more to win! #DiGiSenang2Menang

Why am I still in the middle of the track?! I need to overtake my friends to get the iPad 2! #Churp2race

Why am I still in the middle of the track?! I need to overtake my friends to get the iPad 2! #Churp2race

Let's come together and create the largest FB invite card so we can be acknowledged as the FB capital of the world! #DiGiFBforall

Let's come together and create the largest FB invite card so we can be acknowledged as the FB capital of the world! #DiGiFBforall

Celcom to Draw 10pc More Smartphone Users

Celcom to draw 10pc more smartphone users

Are You Getting a Rude Shock With Hidden Charges When You Get Telephone Bills?

Friday April 22, 2011
Friday Reflections - By B.K. Sidhu



Don't hide, be transparent in charges and rates.

No one likes a rude shock in the form of a big bill after a holiday, certainly not for making voice calls or just for some music downloads.

But that is the global reality. Blame it on the “blacks, iPhones, Galaxy and tablets.''

These are irresistible devices; they provide flexibility and keep you connected. They can also rack up big bills without you knowing it because they access the Internet to carry out automatic updates.

Some don't even allow data roaming but many have been surprised with weird charges' creeping into the bills, no matter how careful they are. Of course, all these nasty big bills can be avoided if there is greater transparency in plans, charges, bills and caps, similar to what is practised in Europe.

Data is the story of today but if you look back over a decade ago, voice roaming was the story and it was a very expensive affair to roam and talk. Frequent travellers have a lot of stories to tell of their nasty' roaming bills. It is not that it has stopped but people have found alternatives in IDD cards, buying SIMs from the country they travel to and even skype or chat on the many social platforms that are available.

There has been a call to reduce roaming rates for a long time. In 2007, the government did ask the celcos to reduce the rates but then, the celcos were not ready to stomach a reduction.

Then, voice was king and no matter how small the roaming revenue contribution was, it was still a contribution.

But things have changed and they are more willing to reduce rates, more so since voice revenues are going downhill.

So effective May 1, the voice and SMS roaming rates between Malaysia and Singapore will be slashed by 20% and 30% respectively. Call it a landmark pack to curb sky-high usage charges, but it could not have been achieved without the intervention of the ministries and regulators from both the countries.

Going by the original plan, the rates should be reduced by 30% and 50% but it will be done in stages. This May, it is 20% and 30% and next May, it will be adjusted to 30% for voice and 50% for SMS within both countries. It is only applicable for two years; after that, rates can go north, south or remain status quo.

This will be a test case before we can see any more reduction in roaming. And the whole of Asean will watch how this deal fares. If it works, they may want to replicate it. Hopefully, we will have a single rate across Asean one day - the way Europe has one rate for voice roaming.

The impact of the reduction is not going to be huge on the celcos in the two countries since voice revenues are going down. For now, roaming revenues make up about 10%-25% of Singapore telcos' mobile revenue versus 8%-10% for Malaysian telcos, says an analyst in his report.

He adds that “a reciprocal 20% reduction in roaming tariffs between the two countries (assuming a third of telcos' roaming revenue is derived from inbound/outbound roamers in both countries) would slice Singapore mobile revenue by 1%-2% compared with an estimated 0.5%-0.9% for Malaysian celcos, all else being equal.''

But if you ask the celcos, they may paint a “pitiful story'' of how much they will lose.

Perhaps, they should think of more creative ways to monetise their dumb pipes and with data growing the way it is, the loss in voice roaming can be easily compensated by data growth. Operators can also share and swap minutes with one another.

So, it is a great effort but the fear of users is that the celcos may reduce one sector and increase another to compensate for the shortfall. To avoid that, there should be a transparent pricing formula and rates.

Or else you cannot avoid a situation where users say “if there is no transparency, we will not be surprised if we end up paying the same amount even after May 1.”

It will become the story of “unlimited data usage,'' but in reality, there is a limit and if you surpass that, the charges roll in. So do you wonder where the unlimited factor is?


Deputy news editor B.K. Sidhu feels that there should be a massive revamp of data charges to bring down the entry level cost so that more Malaysians can be part of the “connected net world.''


http://biz.thestar.com.my/news/story.asp?file=/2011/4/22/business/8535371&sec=business

Apple Accused of Secretly Collecting Data from iPhone, iPad Users

Published: Friday April 22, 2011 MYT 7:25:00 AM
Updated: Friday April 22, 2011 MYT 7:27:13 AM


SAN FRANCISCO: Privacy watchdogs are demanding answers from Apple Inc. about why iPhones and iPads are secretly collecting location data on users - records that cellular service providers routinely keep but require a court order to disgorge.

It's not clear if other smartphones and tablet computers are logging such information on their users.

And this week's revelation that the Apple devices do wasn't even new - some security experts began warning about the issue a year ago.

But the worry prompted by a report from researchers Alasdair Allan and Pete Warden at a technology conference in Santa Clara, California, raises questions about how much privacy you implicitly surrender by carrying around a smartphone and the responsibility of the smartphone makers to protect sensitive data that flows through their devices.

Much of the concern about the iPhone and iPad tracking stems from the fact the computers are logging users' physical coordinates without users knowing it - and that that information is then stored in an unencrypted form that would be easy for a hacker or a suspicious spouse or a law enforcement officer to find without a warrant.

Researchers emphasize that there's no evidence that Apple itself has access to this data. The data apparently stays on the device itself, and computers the data is backed up to. Apple didn't immediately respond to a request for comment by The Associated Press.

Tracking is a normal part of owning a cellphone. What's done with that data, though, is where the controversy lies.

A central question in this controversy is whether a smartphone should act merely as a conduit of location data to service providers and approved applications - or as a more active participant by storing the data itself, to make location-based applications run more smoothly or help better target mobile ads or any number of other uses.

Location data is some of the most valuable information a mobile phone can provide, since it can tell advertisers not only where someone's been, but also where they might be going - and what they might be inclined to buy when they get there.

Allan and Warden said the location coordinates and time stamps in the Apple devices aren't always exact, but appear in a file that typically contains about a year's worth of data that when taken together provide a detailed view of users' travels.

"We're not sure why Apple is gathering this data, but it's clearly intentional, as the database is being restored across backups, and even device migrations," they wrote in a blog posting announcing the research.

Allan said in an email to the AP that he and Warden haven't looked at how other smartphones behave in this regard, but added there's suspicion that phones that run Google Inc.'s Android software might behave in a similar way and is being investigated.

Google did not immediately respond to a request for comment.

Alex Levinson, a security expert, said the tracking Apple's devices do isn't new - or a surprise to those in the computer forensics community.

The Apple devices have been retaining the information for some time, but it was kept in a different form until the release of the iOS 4 operating software last year, Levinson, technical lead for the Katana Forensics firm, wrote on his blog.

Through his work with law enforcement agencies, Levinson said he was able to access the location data in older iPhones and warned about the issue over a year ago. The location data is now easier to find because of a change in the way iPhone applications access the data, he said.

"Either way, it is not secret, malicious, or hidden," Levinson wrote. "Users still have to approve location access to any application and have the ability to instantly turn off location services to applications inside the settings menu on their device."

The existence of the location-data file on the phone is alarming because it's unencrypted, the researchers said, which means that anyone with access to the device can see it.

Charlie Miller, a prominent iPhone hacker, said a security change that Apple made last month would make extracting the file from the phone in a remote attack very difficult. Even if an attacker were to break into someone's phone looking for the file, he wouldn't have the right privileges to access the file.

The data is "pretty well-protected on the phone," Miller, principal security analyst with Independent Security Evaluators, said in an interview.

"On the phone, they take a lot of precautions." He said. "It's sort of frightening in the sense that it's there, and it's full of information about where you've been, but the good news is it's not easy to get to."

But it's a different matter when the data is transferred to another computer in a backup. If the backup computer is infected with malicious software, the file could easily be located and sent to the hacker. A way to protect against that is to encrypt the iPhone backup through iTunes, the researchers said.

The issue has prompted several members of Congress to write letters to Apple, based in Cupertino, California, to ask questions about the practice.

Sen. Al Franken said it raises "serious privacy concerns," especially for children using the devices, since "anyone who gains access to this single file could likely determine the location of a user's home, the businesses he frequents, the doctors he visits, the schools his children attend, and the trips he has taken - over the past months or even a year."

Rep. Edward Markey questioned whether the practice may be illegal under a federal law governing the use of location information for commercial purposes, if consumers weren't properly informed.

"Apple needs to safeguard the personal location information of its users to ensure that an iPhone doesn't become an iTrack," he said in a statement. "Collecting, storing and disclosing a consumer's location for commercial purposes without their express permission is unacceptable and would violate current law."

Apple shares rose $9.20, or 2.7 percent, to $351.71 on the strength of the company's latest quarterly financial results, which showed Apple's net income nearly doubled, in large part on strength of iPhone sales. - AP

http://biz.thestar.com.my/news/story.asp?file=/2011/4/22/business/20110422073307&sec=business

TM’s Islamic Debt on Stable Outlook

Friday April 22, 2011


PETALING JAYA: Telekom Malaysia Bhd’s (TM) proposed RM2bil Islamic commercial papers programme and Islamic medium term notes programme has been respectively assigned a final short and long term ratings of P1 and AAA by RAM Ratings.

The long term rating has been given a stable outlook.

This reflects TM’s strong credit and financial profiles, which were underpinned by the company’s strategic importance as the national telecommunications company, the rating arm of RAM Holdings Bhd said in a press release yesterday.

RAM Ratings noted that the company’s financial position was characterised by relatively stable revenue and cashflow as well as strong debt-coverage levels.

Even assuming a full drawdown of the debt facilities by 2012, the rating agency said TM’s debt-servicing ability would remain intact over the next two years.

“However, the additional borrowings will affect TM’s balance sheet (on a pro-forma basis); its gearing ratio is envisaged to peak at 1.12 times by end-2012 (with RM7.53bil debt load), from 0.7 times (and RM5.53bil of debt) as at end-2010, before tapering off thereafter,” RAM Ratings said.

http://biz.thestar.com.my/news/story.asp?file=/2011/4/22/business/8533783&sec=business

Astro, Time dotCom launch IPTV service

Thursday April 21, 2011

New offering, bundled with broadband, starts from RM128

KUALA LUMPUR: Pay television operator, Astro All Asia Networks Plc (Astro) has officially embarked on the high definition Internet protocol television (IPTV) segment in collaboration with fibre network company Time dotCom Bhd (TdC).

The new service, which was bundled together with broadband, would start from RM128, Astro Malaysia chief executive officer Datuk Rohana Rozhan said at the launch of the service yesterday.

Called the Astro B.yond IPTV, the service will allow customers to watch a multiplay of Astro channels in high definition with personal video recording and video-on-demand services, which will be delivered via TdC's 100% fibre broadband service.

“The service will be progressively available to 167,000 high rise residences in the Klang Valley and Penang by the end of the year,” Rohana said.


TIME dotCom Bhd CEO Afzal Abdul Rahim and Datuk Rohana Rozhan at the launch of Astro B.yond IPT

These homes have been deprived of high definition services since Astro first launched its Astro B.yond decoders at end December 2009.

Currently, the IPTV service is available at 60 high rise condominiums , which works out to about 11,000 homes within the selected areas of Mont Kiara, Kuala Lumpur City Centre, Bangsar and Penang.

Rohana said Astro might work with other broadband service providers to extend the new service to landed homes but did not elaborate.

Meanwhile, in a note to clients yesterday after the launch, OSK Research said Astro's IPTV offering followed that of Maxis Bhd which had also recently launched its own IPTV service (available at over 700,000 premises mostly within the Klang Valley) on Telekom Malaysia Bhd's (TM) high speed broadband (HSBB) network.

“We note that TM's own IPTV-broadband offering, Unifi has captured over 60,000 customers since the commercial launch in March 2010 and is available in 800,000 homes,” the research house said.

OSK said it believed that Astro posed an indirect threat to TM's Unifi in areas where subscribers already had existing subscription to Astro's satellite service, which has a near 50% share of the pay-TV market.

http://biz.thestar.com.my/news/story.asp?file=/2011/4/21/business/8524858&sec=business

Malaysia Equity 'neutral' on telco sector

Malaysia Equity 'neutral' on telco sector

Pos Malaysia divestment

Wednesday April 20, 2011
Comment by Rita Benoy Bushon



INVEST Malaysia has come and gone, and still there is no winner in the sale by Khazanah Nasional Bhd of its 32.2% stake in Pos Malaysia Bhd.

Perhaps that is apt, since the interests of minorities are very much in focus here, and the sellers need to carefully assess and address what might ultimately be not in line with the spirit of best practises.

Fact: Pos Malaysia's shareholding is highly fragmented about 23,800 shareholders, and ironically, majority owned by minorities.

We can see this from Pos' shareholding at the end of December, where there were 5,478 shareholders who owned a maximum of 100 shares in the postal company. This body of shareholders amounts to 23% of the total number.

A level higher, there are 8,443 shareholders who own between 100 and 1,000 shares, amounting to 35% of the total number of shareholders. And then there are another 8,531 shareholders who own a maximum of 10,000 shares in the company, also comprising about 35% of the total number of shareholders.

This would mean that 93% or a total of 22,452 retail minority shareholders of Pos Malaysia's may not enjoy the potential premium to the current price of RM3.51 as I write this article.

The rest of the shareholders are institutional funds such as the EPF, Socso and other unit trusts which will not enjoy this premium either.

(In a recent media release, Khazanah said it had shortlisted three and recently two bidders from five with offers ranging from RM3.38 to RM4.62 per share.)

Is this right? Should minorities be excluded from the potential upside on offer if the mandatory general offer (MGO) threshold of 33% is not breached?

This debate would be moot if the new owner is merely strategic. But as StarBiz rightly points out, Khazanah is asking bidders for their business plans for Pos Malaysia and rigorously vetting them. This suggests that the new owner could control the company with the 32.2% stake.

On the other hand, we also understand that Khazanah desires a “responsible exit” from Pos Malaysia as its services will impact all Malaysians thus the morally right thing for the seller to do whether control takes place or otherwise.

But the flipside is the possible exclusion of minorities from the premium potentially on offer that goes to only Khazanah because the sales falls short of the threshold level for an MGO by 0.8% .

Pos' book value per share stands at RM1.54 a share and it was reported initially that three shortlisted candidates were bidding between 2.2 times and 3 times, implying an offer range of RM3.38 to RM4.62 per share.

There are convincing arguments for minorities to be unhappy in such a situation where a new owner “slips in” without their consent or participation.

Firstly, there have been occasions in the past where minorities have not benefited from the exercise (such as Tan Sri Tajudin Ramli's 1994 acquisition of a 32% stake in Malaysia Airlines and Primus Pacific Partners' 2008 acquisition of a 20.2% block in EON Capital Bhd at a 55% premium).

Of course, the sellers might cite the possible upside from the stringent due diligence as a mitigating factor. After all, the reported final two shortlisted each bring their own niche expertise to the table, with one possibly looking to inject a bank via DRB, where, Khazanah the seller owns a substantial portion of it.

And Pos itself has been hard at work transforming itself. In June it announced a strategic alliance with UPS and jointly launched PosLaju International Premium, an international express delivery service serving over 215 countries.

And before that in January, Pos Malaysia and Maybank jointly launched a partnership to provide shared banking services at over 400 Pos Malaysia outlets around the country.

Is there a possible resolution to this? It depends.

Existing rules in the Takeover Code deem control as passing only when the 33% threshold has been breached and only then will there be a MGO for the remaining shares at the prevailing price by the offeror. It is essentially a numerical test, the same as in Britain, Hong Kong and Singapore, but the threshold levels are lower at 30%. The reasons cited is that determination of control is subjective.

The reality is that control in many cases can take place way below this threshold levels depending on the shareholding structure.

The more dispersed the shareholding, the easier to wrest control over the company as in this typical case of Pos.

Given the circumstances, it is important for the regulators to go beyond what is contained in the Takeover Code in certain cases, in assessing whether control has passed, and in assessing whether the rights and privileges of minorities might be compromised.

Pos Malaysia could be one such example?

Rita Benoy Bushon is chief executive officer of Minority Shareholder Watchdog Group.

http://biz.thestar.com.my/news/story.asp?file=/2011/4/20/business/8515969&sec=business

Saturday, April 16, 2011

This is going to be big, better and wait for it.. BERRIER! Check out what berry are you this instant! #digiwhatberry

This is going to be big, better and wait for it.. BERRIER! Check out what berry are you this instant! #digiwhatberry

Mobile Broadband Gains Popularity

Thursday April 14, 2011


BY DALJIT DHESI

daljit@thestar.com.my

PETALING JAYA: Mobile broadband in Malaysia is fast gaining popularity among Internet users and has overtaken fixed broadband in market share.

Market share of for this channel of Internet connection had more than doubled to 54% last year compared with 20% in 2009, according to the Nielsen Mobile Insights Survey 2010.

“Fixed broadband, however, decreased by 23 points to 42%. Dial-up is close to obsolete with only 2% of subscriptions,” The Nielsen Company director of customised research client services Luca Griseri said at a press briefing on the findings of the survey.

The Nielsen Mobile Insights Survey was conducted between October and December 2010. Almost 4,000 consumers across the nation were polled about their usage of mobile phones and the Internet.

As the mobile broadband gains more market share, Griseri added, it was not surprising that laptops and netbooks were the devices most frequently used to access the Internet (55%).

Accessing the Internet on mobile phones has increased significantly to 11% (up nine points compared to 2009).

As for large screen access to the Internet, uploading on social networking is the most common activity across all age groups.

Almost half of the respondents aged 20-34 own a 3G phone.

“Over the last year, advanced phones have become more available and more affordable, with many new models and many more data plan options being launched. This is important because, as our data show (and as observed in most countries in South-East Asia), increased ownership of advanced phones does gradually change users' behaviours.

“For example, smartphone owners are more likely to access the Internet on their mobile phones, and in general use more data,” he noted.

But Griseri said there were still almost half of the respondents (at 48%) in the age group of 20-34 years who had not been using the 3G functions even though they owned a 3G phone, as cost was the main barrier.

For this year, he said he expected it to be another exciting and dynamic year for mobile phone and Internet usage in the country.

“The main trends started last year, such as the uptake of smartphones, and the increasing usage of data will continue. At the same time, new trends, for example the success of tablet computers, will further change the market and affect consumers' expectations,” he added.

Internet usage stood at 41% last year compared with 25% a year ago, he said, adding that the highest usage was among the youth group aged 20 to 24 years old.

Griseri said with the rapid changes in the Internet and mobile broadband space, telecommunications players, besides offering the latest products and services, should also focus on the customer experience, i.e. delivering what really matters to users, with a strong emphasis on the quality of service.

“Even more than in the past, flexibility and simplicity will be key success factors: allowing users to do what they want, where and when they want to, and avoiding confusing them, by ensuring that simplicity really permeates all aspects of the propositions offered, from product to service and price,” he added.

http://biz.thestar.com.my/news/story.asp?file=/2011/4/14/business/20110414110328&sec=business

Axiata Seeks to Buy Back Shares

Tuesday April 12, 2011


PETALING JAYA: Axiata Group Bhd is seeking the approval from its shareholders to buy back its own shares of up to 10% of its issued and paid-up share capital at the forthcoming AGM.

It also proposed in a statement to Bursa Malaysia yesterday to exempt Khazanah Nasional Bhd from the obligation to undertake a mandatory takeover offer on the remaining shares it did not already own in Axiata upon the latter’s purchase of its own shares. Khazanah holds 41.3% stake in Axiata. Future purchases by Axiata of its own shares pursuant to the proposed share buy-back could increase Khazanah’s shareholding in Axiata by more than 2% in any six-month period.

As a result, Khazanah would trigger an obligation to undertake a mandatory takeover offer on the remaining voting shares in Axiata.

“Causing Khazanah to trigger a mandatory takeover obligation is not the objective of the proposed share buy back,” Axiata said.

http://biz.thestar.com.my/news/story.asp?file=/2011/4/12/business/8463354&sec=business

Thursday, April 7, 2011

Latest 4G trial by P1 soon

Thursday April 7, 2011
By LEE KIAN SEONG
lks@thestar.com.my


Firm will do pilot commercial run of new technology by year-end

PORT DICKSON: Packet One Networks Malaysia Sdn Bhd (P1) expects to embark on a pilot commercial trial for the latest 4G wireless technology, Long-Term Evolution Time Division Duplex (LTE TDD) by the year-end, said chief executive officer Michael Lai (pic).

LTE TDD provides higher data rates and larger capacity and can reduce service delay. It also offers improved real-time and high-speed services.

Lai told a briefing yesterday that P1 would upgrade its current WiMAX network to LTE TDD when the technology and devices had reached its mature status, probably by the end of 2012.

However, he said the cost to upgrade the system was still unknown, noting that China Mobile Ltd had just started its trial on the technology in China and would take at least six months to see the outcome.


Packet One Networks Malaysia Sdn Bhd chief executive officer Michael Lai speaking at the Media Retreat 2011 in Port Dickson on April 6.

On Tuesday, P1 hosted the world's first WiMAX-LTE TDD live demonstration.

“The LTE TDD investment will be like our regular network spending that we apply for WiMAX annually. We will continue with our trial on LTE TDD to make sure that it can co-exist with WiMAX,” he said.

Lai said P1 had invested RM650mil in its WiMAX system and the investment was expected to reach RM1bil next year to cover 65% of the population. P1's WiMax services now has about 300,000 subscribers and covers 45% of the population.

http://biz.thestar.com.my/news/story.asp?file=/2011/4/7/business/8431014&sec=business

Maxis Aims to Raise Non-Voice Revenue

Wednesday April 6, 2011


KUALA LUMPUR: Maxis Bhd aims to raise its non-voice revenue to 50% by next year, from the current 41.5%, boosted by the introduction of the Maxis integrated partner in education (Mipe) programme, launched yesterday.

Vice-president and head of products, devices and innovation T. Kugan said the educational programme, provided to selected higher learning institutions, would encourage students and administrative staff to use more data services for their academic works.

“This will contribute to the overall usage of data and definitely be a significant contributor to revenue in the future for Maxis,” he told reporters after the launching of the Mipe programme here yesterday.

The Mipe programme is an integrated communication suite of solutions for tertiary institutions and their student populations, aimed at providing quality broadband connectivity and services, internship and entrepreneurial opportunities as well as preferential smart devices packages.

Kugan said in the initial stage, eight higher learning institutions were chosen to participate in the programme, namely, UCSI University, Limkokwing University of Creative Technology, Cempaka International Ladies College, SEGi University College, INTI International University, KDU University College, the Asia-Pacific University College of Technology and Innovation and Universiti Malaysia Sarawak.

More universities and colleges would be added to the list as Maxis was currently in talks with other public and private higher learning institutions, he added.

On the iPad 2, he said the company was expected to launch the device in the third quarter of this year. — Bernama

http://biz.thestar.com.my/news/story.asp?file=/2011/4/6/business/8422654&sec=business

TM Gets Approval for RM2bil Islamic Debt Programmes

Wednesday April 6, 2011

PETALING JAYA: Telekom Malaysia Bhd (TM) has received Securities Commission's approval to establish Islamic commercial papers (ICP) and Islamic medium-term notes (IMTN) programmes with a combined limit of up to RM2bil.

TM said in a filing with Bursa Malaysia yesterday that the proposed programmes, with tenures of seven and 15 years respectively, have been assigned ratings of P1 and AAA respectively by RAM Rating Services Bhd.

It said the proceeds would be used to meet TM's capital expenditure requirements.

The company said the proposed programmes were in line with its capital management framework to drive capital structure or cost optimisation and shareholders' value enhancement.

“TM will also have the flexibility to time its fund-raising exercise over the tenures of the programmes as well as having an alternative access to debt funding, in addition to conventional bank borrowings,” it added.

CIMB and AmInvestment Bank have been appointed the joint principal advisers, lead arrangers, book runners and lead managers for the programmes.

http://biz.thestar.com.my/news/story.asp?file=/2011/4/6/business/8422265&sec=business

Service Providers Start Taking Down Telco Antennas

Friday April 1, 2011


GEORGE TOWN: Technicians have started to take down rooftop telecommunication antennas of five service providers at the Sungai Nibong’s Crystal Point base station.

The structures, which provide services to Celcom, DiGi, Maxis, P1 and U Mobile users, were switched off yesterday morning before dismantling work began, said a spokesperson of one of the service providers.

“The dismantling process is expected be completed within the next few days.

“This will result in intermittent service disruption which will likely affect customers in Bayan Baru, Bayan Lepas Free Industrial Zone and Sungai Nibong,” she said.

It was reported yesterday that the structures had to be taken down in response to a directive issued by the Penang Municipal Council which was prompted by protests from residents.

The residents feared that electro-magnetic frequencies (EMF) from the telecommunication structures would affect their health.

The spokesperson expressed regret that the structures had to be dismantled, saying that they were put up according to international safety guidelines.

On whether the rooftop antennas would be rebuilt if customers complained of poor call quality, she said future undertakings would only be carried out with council approval.

http://thestar.com.my/news/story.asp?sec=north&file=/2011/4/1/North/8392047

Tuesday, April 5, 2011

P1 to Harness WiMAX and LTE

Wednesday April 6, 2011


PORT DICKSON: Packet One Networks Malaysia Sdn Bhd (P1), Malaysia’s first and leading 4G broadband provider, plans to be the first to harness the combined powers of WiMAX and LTE technologies in the country.

P1 chief executive officer Michael Lai said customers would soon be able to embrace higher data speed by leveraging on the power of WiMAX and LTE technologies.

“By combining the power of WiMAX and LTE, lives will be further enriched with the provision of truly mobile and personal Internet,” Lai said in a statement.

As to when P1 could expect to commence the commercial roll-out of WiMAX and LTE in Malaysia, he said various factors would have to be assessed, including the readiness of the LTE eco-system.

P1 hosted the world’s first WiMAX-Long Term Evolution Time Division Duplex (LTE TDD) live demonstration to members of the media here yesterday. — Bernama

http://biz.thestar.com.my/news/story.asp?file=/2011/4/6/business/8423276&sec=business

Vegetables? Tofu? Wholemeal bread? What we all need now is a profile test to determine what we need to improve. Thank you, #NestleProfiler!

Vegetables? Tofu? Wholemeal bread? What we all need now is a profile test to determine what we need to improve. Thank you, #NestleProfiler!

Choco Boom!! Experience #Choclairs "chocolate explosion" at Awesome Island and Grumpy Island @ChoclairsMalaysia

Choco Boom!! Experience #Choclairs "chocolate explosion" at Awesome Island and Grumpy Island @ChoclairsMalaysia

Saturday, April 2, 2011

Boost to Maxis Revenue

Friday April 1, 2011

By B.K. SIDHU
bksidhu@thestar.com.my


Home Services to contribute to celco over the long term

KUALA LUMPUR: Maxis Bhd does not expect significant contributions from its “home services” in the near term, but for the longer term it would become a major revenue generator since voice revenues are falling.

“We can't say how much but the next bit of revenue will be coming from there (home services),'' Maxis chief executive officer Sandip Das said.

For now its non-voice revenue accounts for 40% of total revenue and Sandip said he would be surprised if the contributions would kick in this year.

The launching of its home services, which it also calls multi-play services, marks a significant shift in the way Maxis will conduct its business in the future. It is not longer a mere mobile company but has transformed into an integrated player, something it has been aspiring to do for a long time.


Deputy Information, Communications and Culture Minister Datuk Joseph Salang Gandum (left) and Sandip Das at the launch of Maxis Home Services yesterday.

This new phase opens a lot more opportunities for the company at a time when voice traffic is falling and globally operators are monetising their dump pipes so as to avoid an erosion in earnings.

What it is offering is a gamut of product and services, not just for the user but also for the entire family.

Yesterday Maxis launched its home services which will operate on many access modes, be it fibre or wireless, and on multiple devices such as mobile phones, computers, television and tablets, and the content carried on the access networks and devices will be varied.

Initially it would just be broadband access and 15 different services including music, security, television. Sandip said new products and services would be added every other week.

“We will aggregate the best content (for our users) and by the third quarter of this year, customers will receive a full suite of services that improve their lives by having every service category brought to their homes,” he said.


Its e-learning offering will be made available by end-April.

To provide the services, it will ride on its existing wireless and fibre infrastructure while it is buying capacity on Telekom Malaysia Bhd's high speed broadband network and Tenaga Nasional Bhd's fibre network. Presently, the fibre is available to limited houses and multi-dwelling units, but Maxis will continue to look into ways to extend its reach as its aim is to reach out to urban and rural centres including kampungs.

Its capex investment last year was RM1.4bil. This year it will spend the same amount to expand and improve its network.

Maxis also launched its pricing packages for the home services RM128 per month for 4 Megabits per second in speed and 30GB in quota package; RM158 per month for 6Mbps/60GB and RM218 for 10Mbps/100GB respectively. It comes with some free calls.

Asked whether Maxis can get users since its pricing packages and services are somewhat similar to that of TM's Unifi, Sandip said: “We have 10,000 users who have expressed interest and with the kind of content richness and inter-operability that we will offer, it will be a completely new experience and we are confident we will have the customers.''

Also yesterday Time dotCom Bhd announced to Bursa Malaysia that it had signed a definitive 10-year agreement with Astro to provide its fibre infrastructure for Astro IPTV solution bundled with Time fibre broadband and voice telephony services across the Klang Valley and Penang to apartment blocks, multi-dwelling units or commercial buildings.


http://biz.thestar.com.my/news/story.asp?file=/2011/4/1/business/8393752&sec=business

Maxis Tawar Khidmat Kediaman Pertama

KUALA LUMPUR 31 Mac - Maxis Bhd. telah melancarkan perkhidmatan pelbagai jenis (multi-play), Perkhidmatan Kediaman Maxis pertama di Malaysia.

Ketua Pegawai Eksekutifnya, Sandip Das berkata, pelanggan Maxis yang berada di kawasan yang mempunyai rangkaian gentian optik di seluruh negara boleh menikmati perkhidmatan itu mulai suku ketiga tahun ini.

Perkhidmatan Kediaman Maxis adalah kepelbagaian perkhidmatan yang merangkumi akses kepada suara, Internet berkelajuan tinggi, perkhidmatan nilai tambahan serta kandungan.

Pelanggan boleh mengakses pelbagai aplikasi, video muzik, permainan dan sebagainya menerusi pelbagai saluran termasuklah telefon pintar, komputer riba, tablet dan televisyen di mana-mana sahaja.

" Pelanggan kini semakin bijak berbelanja walaupun pada masa yang sama mahu menjalani gaya hidup moden yang menggunakan gajet-gajet yang lebih moden, " katanya selepas majlis pelancaran Perkhidmatan Kediaman Maxis di sini hari ini.

Majlis disempurnakan Timbalan Menteri Penerangan, Komunikasi dan Kebudayaan, Datuk Joseph Salang.

Menurut Sandip, untuk fasa pertama, Perkhidmatan Kediaman Maxis menawarkan pelbagai akses yang dipakejkan bersama tiga pelan Internet berkelajuan tinggi yang berbeza.

Tiga pelan tersebut bermula dari harga RM128 sebulan untuk pakej standard, RM158 untuk pakej nilai dan RM218 untuk pakej termaju.

http://www.utusan.com.my/utusan/info.asp?y=2011&dt=0401&pub=Utusan_Malaysia&sec=Korporat&pg=ko_04.htm

Innity Reaches 75.5% of Malaysia’s Internet Population

Wednesday March 30, 2011


KUALA LUMPUR: Innity, a leading Southeast Asian ad network, ranked highly in comScore's latest reports revealing the top ad networks in the region.

The company recently deployed comScore's tagging technology allowing for web tags to be placed on the website content of participating publishers, advertising networks and content creators which is in turn recorded by comScore servers every time the tagged content is accessed guaranteeing more accuracy in reporting.

In Malaysia specifically, Innity reaches 75.5% of Malaysia's 10.6 million internet audience.

Additionally, according to the report, Innity's results exceeded that of the scores of the Content Network of the first ranking network by a mile.

Innity also ranked as the largest ad network in Vietnam reaching more than 85% of the internet population and the largest in Indonesia reaching more than 77% of the internet audience aside from reaching nearly 78% of the internet users in Singapore where the company also continues to be one of the largest ad networks.

“We firmly believe in the growth potential and increasing dynamism within the Southeast Asian region.

"The comScore ratings reinforce our industry and technological leadership and the potential for this market in Malaysia.

"Innity is committed to continue providing marketers with the best and most innovative online interactive marketing solutions in the industry,” said Inity CEO Phang Chee Leong.

“Advertising networks are gaining popularity amongst advertisers and marketers across the world spurring growth within this area and is seen today to be a key component within the marketing mix,” said Joe Nguyen, VP, comScore, Southeast Asia.

“Innity's adoption of comScore's tagging technology across a number of South East Asian countries provides them with access to the completeness and granularity of comScore's Unified Digital Measurement giving them access to more precise tracking, avoids confusion arising from differences in reporting resulting from estimates and provides an integrated view of web activity across the breadth of the Internet universe”.

Innity is the leading provider of interactive online marketing platforms and technologies for advertisers and publishers.

Established in 1999, Innity has a strong foothold in the South East Asian market spanning over 10,000 websites, including major newspaper portals and premier sites in more than 16 content interest channels such as technology, lifestyle, automotive, business and entertainment.

http://biz.thestar.com.my/news/story.asp?file=/2011/3/30/business/20110330113411&sec=business

AT&T Buys T-Mobile for US$39bil and Becomes Largest US Mobile Telco

Published: Monday March 21, 2011 MYT 8:54:00 AM
Updated: Monday March 21, 2011 MYT 8:55:26 AM


NEW YORK: AT&T Inc. said Sunday it will buy T-Mobile USA from Deutsche Telekom AG in a cash-and-stock deal valued at $39 billion that would make it the largest cellphone company in the U.S.

The deal would reduce the number of U.S. wireless carriers with national coverage from four to three, and is sure to face close regulatory scrutiny. It also removes a potential partner for Sprint Nextel Corp., the struggling No. 3 carrier, which had been in talks to combine with T-Mobile USA, according to Wall Street Journal reports.

AT&T is now America's second-largest wireless carrier and T-Mobile USA is the fourth largest. The acquisition would give AT&T 129 million subscribers, vaulting it past Verizon Wireless' 102 million. The combined company would serve about 43 percent of U.S. cellphones.

For T-Mobile USA's 33.7 million subscribers, the news doesn't immediately change anything. Because of the long regulatory process, AT&T expects the acquisition to take a year to close. But when and if it closes, T-Mobile USA customers would get access to AT&T's phone line-up, including the iPhone.

The effect of reduced competition in the cellphone industry is harder to fathom. Public interest group Public Knowledge said that eliminating one of the four national phone carriers would be "unthinkable."

"We know the results of arrangements like this - higher prices, fewer choices, less innovation," said Public Knowledge president Gigi Sohn, in a statement.

T-Mobile has relatively cheap service plans compared with AT&T, particularly when comparing the kind that don't come with a two-year contract. AT&T CEO Randall Stephenson said one of the goals of the acquisition would be to move T-Mobile customers to smart phones, which have higher monthly fees. AT&T "will look hard" at keeping T-Mobile's no-contract plans, he said.

AT&T's general counsel, Wayne Watts, said the cellphone business is "an incredibly competitive market," with five or more carriers in most major cities. He pointed out that prices have declined in the past decade, even as the industry has consolidated. In the most recent mega-deal, Verizon Wireless bought No. 5 carrier Alltel for $5.9 billion in 2009.

Stifel Nicolaus analyst Rebecca Arbogast said the deal will face a tough review by the Federal Communications Commission and the Justice Department. She expects them to look market-by-market at whether the deal will harm competition. Even if regulators approve the acquisition, she added, they are likely to require AT&T to sell off parts of its business or T-Mobile's business. Verizon had to sell off substantial service areas to get clearance for the Alltel acquisition.

To mollify regulators, AT&T said in a statement Sunday that it would spend an additional $8 billion to expand ultrafast wireless broadband into rural areas. Instead of covering about 80 percent of the U.S. population with its so-called Long Term Evolution, or LTE network, AT&T's new goal would be 95 percent, it said. That means blanketing an additional area 4.5 times the size of Texas. The network is scheduled to go live in a few areas this summer, but the full build-out will take years.

The offer would help the FCC and the Obama administration meet their stated goals of bringing high-speed Internet access to all Americans. They see wireless networks as critical to meeting that goal - particularly in rural areas where it does not make economic sense to build landline networks.

AT&T said its customers would benefit from the cell towers and wireless spectrum the deal would bring. In some areas, it would add 30 percent more capacity, AT&T said.

"It obviously will have a significant impact in terms of dropped calls and network performance," Stephenson said.

AT&T would pay about $25 billion in cash to Deutsche Telekom, Germany's largest phone company, and stock that is equivalent to an 8 percent stake in AT&T. Deutsche Telekom would get one seat on AT&T's board.

Like Sprint, T-Mobile has been struggling to compete with much larger rivals AT&T and Verizon Wireless, and its revenue has been largely flat for three years. Bellevue, Wash.-based T-Mobile USA's subscriber count has stalled at just under 34 million, though it posts consistent profits.

Deutsche Telekom has been looking at radical moves to let it get more value out of its U.S. holding, including a possible combination with a U.S. partner.

There was a big hurdle to a T-Mobile USA-Sprint deal: The two companies use incompatible network technologies. The same hurdle would apply in a Verizon Wireless-T-Mobile USA deal. But the networks of AT&T and T-Mobile use the same underlying technology, so to some large extent, AT&T phones can already use T-Mobile's network, and vice versa.

The deal has been approved by the boards of both companies. Dallas-based AT&T can increase its cash portion by up to $4.2 billion, with a reduction in the stock component, as long as Deutsche Telekom receives at least a 5 percent equity ownership interest in the buyer.

The agreement doesn't leave room for other buyers to jump in with a higher bid, AT&T said.

AT&T would finance the cash part of the deal with new debt and cash on its balance sheet and will assume no debt from T-Mobile. - AP

http://biz.thestar.com.my/news/story.asp?file=/2011/3/29/business/20110329084751&sec=business

Telekom, Axiata ban Alcatel-Lucent from bids

Telekom, Axiata ban Alcatel-Lucent from bids