Monday, August 16, 2010

Green Packet to spend RM150m more on network

Published: 2010/08/17




GREEN Packet Bhd (0082) will invest a further RM150 million to improve the network quality of its telecommunication services.



"Investment in our network quality ensures better customer acquisition and retention. We want to improve on coverage as well as capacity," said group chief executive officer Puan Chan Cheong.



"This year, we've allocated RM250 million in capital expenditure for network upgrade. So far, we've spent RM100 million in the first half of the year," he told reporters at a briefing in Petaling Jaya yesterday.



"We have the resources to fund these investments. Our partner SK Telecom has committed a certain amount and there is RM500 million from our vendor ZTE (Malaysia) Corp Sdn Bhd," Puan said, in response to a query if the group has enough money to carry on with its pledge to invest RM1 billion in infrastructure upgrade.

In its filing to Bursa Malaysia yesterday, Green Packet saw its second quarter net loss expand to RM35.64 million from RM27.87 million a year ago.



"The higher losses were mainly attributed to higher amortisation and depreciation cost in relation to aggressive rollout of broadband infrastructure," Puan said.



He remained hopeful of achieving an Ebitda (earnings before interest, tax, depreciation and amortisation) break-even by the end of this year.



The group now has 196,000 broadband customers as it added 21,000 new clients in the second quarter. It expects a significant increase in the latter half of the year as it has recently introduced laptops that have built-in WiMAX chips.



"We're on track to achieve 280,000 subscribers and 45 per cent national coverage by the end of the year," he said.



In two years, Green Packet harbours coverage ambition of 65 per cent of Malaysia's population.

http://www.btimes.com.my/Current_News/BTIMES/articles/gp16/Article/

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