Packet One wants more spectrum

Thursday May 12, 2011
By B.K. SIDHU
bksidhu@thestar.com.my


It needs additional bandwidth to roll out more sophisticated services

PETALING JAYA: Packet One Networks Sdn Bhd (P1), a unit of Green Packet Bhd, is in dire need of more spectrum and hopes to get an additional 30Mhz of the 2.3G spectrum given the growth rates it is registering for its broadband service.

Sources said it had written to the industry regulator, Malaysian Communications & Multimedia Commission (MCMC), sometime in April to ask for the additional spectrum.

It now has a 30Mhz block on the 2.3G band. The additional 30Mhz block on the same band would allow it to cater to the demand for its services. Without that, it would have problems expanding to new areas to support the Government's vision of having a wider broadband reach in the country, said a source.

The company has more than 320,000 subscribers; its coverage has surpassed 45% of the populated areas in Peninsular Malaysia.

In addition, sources said, it also wanted to double the capacity of the 20Mhz earmarked for each player on the 2.6G band. Nine players are supposed to be assigned 20Mhz of the 2.6G spectrum and P1 is one of them. All the nine players know that 20Mhz is far too little for the fourth generation of wireless technology to work optimally.


»The challenge (for P1) is really roll-out as, for now, its network faces congestion and this deteriorates the WiMAX user experience« SOURCE

The LTE which is a 4G technology promises to improve the throughput and capacity of wireless phone networks.

P1 also wants a slice of the controversial 700Mhz spectrum given the fact that the spectrum is on a lower band, its coverage is wider and there is better penetration into buildings.

P1 was the first player to roll out wireless broadband on the 2.3G bandwidth some years ago. It is one the four players that have rights to the spectrum. The others are Asiaspace Sdn Bhd, REDTone International Bhd (is only able to offer WiMAX-related services to east Malaysia) and YTL Communications Bhd.

Thus far, the company has invested RM1bil in its roll-out and now has a South Korean SK Telecom as an investor.

SK has invested US$100mil for a 25.8% equity stake in P1. Intel is also a shareholder since 2008 in P1's parent, Green Packet. P1 is also planning LTE trial with ZTE.

Since its inception P1 has managed to be a contributor towards the Government's vision of increasing broadband penetration in the country and claims that its contribution is about 7% towards the 55.6% achieved in broadband penetration in the country as at end-2010.

“The challenge is really roll-out as, for now, its network faces congestion and this deteriorates the WiMAX user experience. Any measure taken to address the congestion would be seen as temporary,'' a source said, adding that what the company needed was a permanent solution, which was more bandwidth.

P1 is also not alone in wanting more bandwidth. In fact every company that is offering services by riding on spectrum wants more spectrum to roll out more sophisticated services.

Players such as DiGi.Com Bhd and Celcom Axiata Bhd have made their intentions known for a long time. There is a spectrum re-farming exercise under way, though it will take a long time. The progress of the exercise, to date, is not known.

http://biz.thestar.com.my/news/story.asp?file=/2011/5/12/business/8664674