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
Saturday, May 7, 2011
First Issuance by TM for RM150mil ICPs
Tuesday April 26, 2011
PETALING JAYA: Telekom Malaysia Bhd (TM) yesterday made its first issuance of RM150mil nominal value Islamic commercial papers (ICPs).
TM told Bursa Malaysia the issuance was part of its recently approved sukuk programmes whereby it would be able to issue ICPs and Islamic medium-term notes (IMTN) to meet its capital needs, provided that the aggregate outstanding nominal value of such ICPs and/or IMTNs did not exceed RM2bil at any point in time.
http://biz.thestar.com.my/news/story.asp?file=/2011/4/26/business/8550904&sec=business
PETALING JAYA: Telekom Malaysia Bhd (TM) yesterday made its first issuance of RM150mil nominal value Islamic commercial papers (ICPs).
TM told Bursa Malaysia the issuance was part of its recently approved sukuk programmes whereby it would be able to issue ICPs and Islamic medium-term notes (IMTN) to meet its capital needs, provided that the aggregate outstanding nominal value of such ICPs and/or IMTNs did not exceed RM2bil at any point in time.
http://biz.thestar.com.my/news/story.asp?file=/2011/4/26/business/8550904&sec=business
Deutsche Telekom net off 37% to US$696mil
ublished: Friday May 6, 2011 MYT 3:14:00 PM
FRANKFURT, Germany: Germany telecommunications company Deutsche Telekom AG says net profits fell 37 percent in the first quarter as it lost mobile phone customers in the U.S. and its business suffered in crisis-stricken Greece.
Friday's earnings show net profit of 480 million ($696 million), down from 767 million a year ago. Revenue was down 7 percent to 14.597.
The company said its business remained relatively strong in its home country, Germany. But it faced a variety of difficulties elsewhere. Those include an ongoing struggle against bigger competitors in the United States; slow economies in Greece and Romania; a new tax in Hungary, and expensive efforts to attract and keep customers in Netherland and Poland.
The company saw its customer base and revenue slip at T-Mobile USA, which is in the process of selling to AT&T for $39 billion. A high churn rate among contract customers of 2.4 percent was a weak point, only partly offset by growth in prepaid customers.
As a result, the overall customer base in the U.S. declined by 99,000 during the quarter to 33.6 million. "Notwithstanding the announced sale of T-Mobile USA, the company will continue to pursue its strategy as an aggressive competitor on the market until the transaction has been closed," the company said in a statement.
The sale to AT&T would reduce the number of mobile phone companies with national coverage from four to three, and must pass scrutiny from anti-trust regulators. The Justice Department and the Federal Communications Commission could take a year or longer to review the proposed transaction.
Deutsche Telekom earnings were also reduced because the company also no longer includes earnings from T-Mobile UK, now part of a joint venture with France Telecom's Orange. - AP
http://biz.thestar.com.my/news/story.asp?file=/2011/5/6/business/20110506152447&sec=business
FRANKFURT, Germany: Germany telecommunications company Deutsche Telekom AG says net profits fell 37 percent in the first quarter as it lost mobile phone customers in the U.S. and its business suffered in crisis-stricken Greece.
Friday's earnings show net profit of 480 million ($696 million), down from 767 million a year ago. Revenue was down 7 percent to 14.597.
The company said its business remained relatively strong in its home country, Germany. But it faced a variety of difficulties elsewhere. Those include an ongoing struggle against bigger competitors in the United States; slow economies in Greece and Romania; a new tax in Hungary, and expensive efforts to attract and keep customers in Netherland and Poland.
The company saw its customer base and revenue slip at T-Mobile USA, which is in the process of selling to AT&T for $39 billion. A high churn rate among contract customers of 2.4 percent was a weak point, only partly offset by growth in prepaid customers.
As a result, the overall customer base in the U.S. declined by 99,000 during the quarter to 33.6 million. "Notwithstanding the announced sale of T-Mobile USA, the company will continue to pursue its strategy as an aggressive competitor on the market until the transaction has been closed," the company said in a statement.
The sale to AT&T would reduce the number of mobile phone companies with national coverage from four to three, and must pass scrutiny from anti-trust regulators. The Justice Department and the Federal Communications Commission could take a year or longer to review the proposed transaction.
Deutsche Telekom earnings were also reduced because the company also no longer includes earnings from T-Mobile UK, now part of a joint venture with France Telecom's Orange. - AP
http://biz.thestar.com.my/news/story.asp?file=/2011/5/6/business/20110506152447&sec=business
Pos to Defend Mail Business, Eyes E-mail Project
Friday May 6, 2011
By JEEVA ARULAMPALAM
jeeva@thestar.com.my
KUALA LUMPUR: Pos Malaysia Bhd will defend its government-related mail business as it discusses with government officials on how it can participate in the recently-proposed 1Malaysia e-mail to be implemented by Tricubes Bhd.
Should the postal services company fail to inch its way into this project, it is prepared to roll out its own e-commerce initiatives that will target government as well as commercial entities as the e-commerce pie continues to grow bigger, according to Pos Malaysia group managing director and chief executive officer Datuk Syed Faisal Albar.
“We have been working on e-commerce initiatives, such as online shopping portal posme.my, but we have also taken the cue from the Government to deepen e-government service and have worked on it as we know that it would be a significant threat to physical mail business,” he told reporters after the company's shareholders meeting yesterday.
Syed Faisal confirmed a StarBiz report last week that Pos Malaysia would see mail volumes drop further as the 1Malaysia e-mail proposal eats into the former's government-related mail portfolio.
Pos Malaysia Bhd group managing director and chief executive officer Datuk Syed Faisal Albar (right) and group chief of corporate service Datuk Jezilee Mohamad Ramli (left) speaking to reporters after the company's annual general meeting on Thursday. - Starpic by M. Rajan
“Since the project has been awarded to Tricubes, we would like to engage with both Pemandu and Mampu to understand this project and explore ways of how Pos Malaysia can play a role in this project,” he said.
“We have formulated a good plan, which includes an official inbox as we are in the delivery business, be it for digital and physical, and will table it to Pemandu and Mampu. There is no plan to charge the public but we also do not want to cannibalise our physical mail so whatever charges (imposed on the sender) will have to be reasonable to us.”
Pos Malaysia's government mail business accounted for some RM20mil in revenue from its total mail business revenue of RM624.3mil made last year.
Syed Faisal said Pos Malaysia, which has 700 post offices nationwide, was keen to develop all its land parcels, provided the amendments to the Federal Lands Commissioner Act were made. Currently, the postal services company can only carry out postal operations on these land parcels due to the Act's legislation.
“For instance, we have the general post office in KL centre built some 30-40 years ago. It is dynamic in terms of location and we can seek further value creation (by redeveloping the property). If we are allowed to re-develop, we certainly don't have the skill sets to re-develop ourselves but we would look elsewhere for the skill sets required,” he said.
Meanwhile, Pos Malaysia has not engaged with DRB-HICOM Bhd on the expected synergies that would arise from the latter emerging as a major stakeholder in Pos Malaysia or was it privy to DRB-HICOM's business proposal for the postal services company.
“All parties are observing the fact that the sale has not been consummated yet. There are certain conditions that have to be met between Khazanah (Nasional Bhd) and DRB-HICOM and some of it is beyond the control of both of them. Only when it is finalised and concluded, then we will engage with each other,” said Syed Faisal.
Government-investment arm Khazanah announced last month that it would sell its 32.21% stake in Pos Malaysia to DRB-HICOM for RM3.60 per share or RM622.8mil in total. The deal is expected to be completed by end-June and the conditional offer price of RM3.60 per share is subject to the variation in the use of 16 plots of identified lands owned by the Federal Lands Commissioner and leased to Pos Malaysia.
If the terms of the lease cannot be amended to include commercial use by year-end, then DRB-HICOM would be refunded 10 sen per share or RM17.30mil.
Analysts said a key reason for DRB-HICOM clinching Khazanah's stake in Pos Malaysia was because tie former owned Bank Muamalat Malaysia Bhd, and post offices could act as a financial agent and benefit the rural folk.
Currently, Pos Malaysia has already tied up with RHB Bank Bhd and Malayan Banking Bhd (Maybank) to offer financial services in selected branches.
“We will continue to respect whatever agreements we have with RHB and Maybank as we started our share banking services with them two-and-a-half years ago. If there are future plans (on Bank Muamalat), it will have to be brought to the Pos Malaysia board and decided upon,” said Syed Faisal.
http://biz.thestar.com.my/news/story.asp?file=/2011/5/6/business/8616781&sec=business
By JEEVA ARULAMPALAM
jeeva@thestar.com.my
KUALA LUMPUR: Pos Malaysia Bhd will defend its government-related mail business as it discusses with government officials on how it can participate in the recently-proposed 1Malaysia e-mail to be implemented by Tricubes Bhd.
Should the postal services company fail to inch its way into this project, it is prepared to roll out its own e-commerce initiatives that will target government as well as commercial entities as the e-commerce pie continues to grow bigger, according to Pos Malaysia group managing director and chief executive officer Datuk Syed Faisal Albar.
“We have been working on e-commerce initiatives, such as online shopping portal posme.my, but we have also taken the cue from the Government to deepen e-government service and have worked on it as we know that it would be a significant threat to physical mail business,” he told reporters after the company's shareholders meeting yesterday.
Syed Faisal confirmed a StarBiz report last week that Pos Malaysia would see mail volumes drop further as the 1Malaysia e-mail proposal eats into the former's government-related mail portfolio.
Pos Malaysia Bhd group managing director and chief executive officer Datuk Syed Faisal Albar (right) and group chief of corporate service Datuk Jezilee Mohamad Ramli (left) speaking to reporters after the company's annual general meeting on Thursday. - Starpic by M. Rajan
“Since the project has been awarded to Tricubes, we would like to engage with both Pemandu and Mampu to understand this project and explore ways of how Pos Malaysia can play a role in this project,” he said.
“We have formulated a good plan, which includes an official inbox as we are in the delivery business, be it for digital and physical, and will table it to Pemandu and Mampu. There is no plan to charge the public but we also do not want to cannibalise our physical mail so whatever charges (imposed on the sender) will have to be reasonable to us.”
Pos Malaysia's government mail business accounted for some RM20mil in revenue from its total mail business revenue of RM624.3mil made last year.
Syed Faisal said Pos Malaysia, which has 700 post offices nationwide, was keen to develop all its land parcels, provided the amendments to the Federal Lands Commissioner Act were made. Currently, the postal services company can only carry out postal operations on these land parcels due to the Act's legislation.
“For instance, we have the general post office in KL centre built some 30-40 years ago. It is dynamic in terms of location and we can seek further value creation (by redeveloping the property). If we are allowed to re-develop, we certainly don't have the skill sets to re-develop ourselves but we would look elsewhere for the skill sets required,” he said.
Meanwhile, Pos Malaysia has not engaged with DRB-HICOM Bhd on the expected synergies that would arise from the latter emerging as a major stakeholder in Pos Malaysia or was it privy to DRB-HICOM's business proposal for the postal services company.
“All parties are observing the fact that the sale has not been consummated yet. There are certain conditions that have to be met between Khazanah (Nasional Bhd) and DRB-HICOM and some of it is beyond the control of both of them. Only when it is finalised and concluded, then we will engage with each other,” said Syed Faisal.
Government-investment arm Khazanah announced last month that it would sell its 32.21% stake in Pos Malaysia to DRB-HICOM for RM3.60 per share or RM622.8mil in total. The deal is expected to be completed by end-June and the conditional offer price of RM3.60 per share is subject to the variation in the use of 16 plots of identified lands owned by the Federal Lands Commissioner and leased to Pos Malaysia.
If the terms of the lease cannot be amended to include commercial use by year-end, then DRB-HICOM would be refunded 10 sen per share or RM17.30mil.
Analysts said a key reason for DRB-HICOM clinching Khazanah's stake in Pos Malaysia was because tie former owned Bank Muamalat Malaysia Bhd, and post offices could act as a financial agent and benefit the rural folk.
Currently, Pos Malaysia has already tied up with RHB Bank Bhd and Malayan Banking Bhd (Maybank) to offer financial services in selected branches.
“We will continue to respect whatever agreements we have with RHB and Maybank as we started our share banking services with them two-and-a-half years ago. If there are future plans (on Bank Muamalat), it will have to be brought to the Pos Malaysia board and decided upon,” said Syed Faisal.
http://biz.thestar.com.my/news/story.asp?file=/2011/5/6/business/8616781&sec=business
MyEmail project is non-exclusive: Pemandu
By Presenna Nambiar
Published: 2011/05/06
Kuala Lumpur: The MyEmail project is a non-exclusive project and any interested party is free to submit a proposal, Performance Management And Delivery Unit (Pemandu) says.
Pemandu's communications content and infrastructure for business services (National Key Economic Areas) director Dr Fadhlullah Suhaimi Abdul Malek told Business Times this yesterday via e-mail.
This gives the green light to postal company Pos Malaysia Bhd to send in its own proposal.
Yesterday, its group managing director and chief executive officer Datuk Syed Faisal Albar said the company is keen to participate in the MyEmail project and that it has "pretty much formulated a plan" for it.
Currently, government mails, notices and statements make up about RM20 million, or 3 per cent, of Pos Malaysia's total mail revenue.
"If there is any company that can come up with a better, cheaper and even more secure email service, the government and public agencies are completely at liberty to use their services.
"There is no fixed term contract to any company that is selected to provide this service. Any contract will be negotiated on open market commercial terms," Fadhlullah said.
Proposals submitted for MyEmail, an Entry Point Project , are assessed by a team that includes Malaysian Administrative Modernisation and Management Planning Unit and GITN Sdn Bhd to ensure that only sustainable and implementable business models are supported.
Every proposal is assessed based on best in-practice technology, sustainable business model, track record and security.
To date, financially-troubled Tricubes Bhd is the first company selected by the team.
Meanwhile, Syed Faisal said the management of the company is not privy to the business plans DRB-HICOM Bhd may have for the company.
"I believe all parties are observing the fact that the sale has not been completed yet, there is certain condition precedence that has to be met between Khazanah Nasional Bhd and DRB-HICOM and some of it is beyond the control of the both of them.
"So, we respect that, and only when it is finalised and concluded, we (DRB-HICOM and Pos Malaysia) will engage with each other," he said.
On April 22, Khazanah announced that DRB-HICOM had won the bid for its 32.2 per cent stake in Pos Malaysia.
Both parties have under two months to seal the deal.
On its 15 per cent stake in Transmile Group Bhd, Syed Faisal said Pos Malaysia will only make a decision once the group completes its regularisation plan.
Transmile managed to secure creditors' approval for its debt restructuring plan in mid-April.
Read more: MyEmail project is non-exclusive: Pemandu http://www.btimes.com.my/Current_News/BTIMES/articles/psf05f/Article/index_html#ixzz1LYkfPx3m
Published: 2011/05/06
Kuala Lumpur: The MyEmail project is a non-exclusive project and any interested party is free to submit a proposal, Performance Management And Delivery Unit (Pemandu) says.
Pemandu's communications content and infrastructure for business services (National Key Economic Areas) director Dr Fadhlullah Suhaimi Abdul Malek told Business Times this yesterday via e-mail.
This gives the green light to postal company Pos Malaysia Bhd to send in its own proposal.
Yesterday, its group managing director and chief executive officer Datuk Syed Faisal Albar said the company is keen to participate in the MyEmail project and that it has "pretty much formulated a plan" for it.
Currently, government mails, notices and statements make up about RM20 million, or 3 per cent, of Pos Malaysia's total mail revenue.
"If there is any company that can come up with a better, cheaper and even more secure email service, the government and public agencies are completely at liberty to use their services.
"There is no fixed term contract to any company that is selected to provide this service. Any contract will be negotiated on open market commercial terms," Fadhlullah said.
Proposals submitted for MyEmail, an Entry Point Project , are assessed by a team that includes Malaysian Administrative Modernisation and Management Planning Unit and GITN Sdn Bhd to ensure that only sustainable and implementable business models are supported.
Every proposal is assessed based on best in-practice technology, sustainable business model, track record and security.
To date, financially-troubled Tricubes Bhd is the first company selected by the team.
Meanwhile, Syed Faisal said the management of the company is not privy to the business plans DRB-HICOM Bhd may have for the company.
"I believe all parties are observing the fact that the sale has not been completed yet, there is certain condition precedence that has to be met between Khazanah Nasional Bhd and DRB-HICOM and some of it is beyond the control of the both of them.
"So, we respect that, and only when it is finalised and concluded, we (DRB-HICOM and Pos Malaysia) will engage with each other," he said.
On April 22, Khazanah announced that DRB-HICOM had won the bid for its 32.2 per cent stake in Pos Malaysia.
Both parties have under two months to seal the deal.
On its 15 per cent stake in Transmile Group Bhd, Syed Faisal said Pos Malaysia will only make a decision once the group completes its regularisation plan.
Transmile managed to secure creditors' approval for its debt restructuring plan in mid-April.
Read more: MyEmail project is non-exclusive: Pemandu http://www.btimes.com.my/Current_News/BTIMES/articles/psf05f/Article/index_html#ixzz1LYkfPx3m
4G – Pure Hype or Hope?
Friday May 6, 2011
Friday Reflections - By B.K. Sidhu
THE buzz word in the telecoms industry is 4G.
You cannot but notice the advertisements popping up claiming that 4G is here. It is a global phenomenon but some say operators are coining their own definitions for the term “4G'' as a marketing gimmick.
We have heard of 1G, 2G and 3G over the past two decades. The next is 4G and the flavour of the so-called 4G technology a new generation of radio upgrades is that it promises to improve the throughput and capacity of wireless phone networks.
Some weeks ago, a chief of a cellular company did ask if 4G was indeed here. He represents a 3G company, which is rival to the two companies now offering Wimax in the country. These two Wimax players claim their networks are 4G enabled.
The chief's cynicism can be understood and he is not alone to raise the question.
The view of the 3G players is that, they are able to deliver what the customers need today and when combined with LTE (long term evolution - which is the natural technology path from 3G) they can conquer the future.
Although the Wimax players had to go through some rough patches in trying to establish Wimax as a 4G technology “an effort is under way by leading Wimax and LTE suppliers and operators to provide a common framework for 4G coexistence.''
Experts claim the Wimax equipment market will reach US$6.9bil by 2014 and this is hardly a sign of a technology that is running out of steam and US-based Clearwire remains the biggest Wimax provider in the world,
It was YTL Communications that used the 4G word extensively at the launch of their “Yes” service last November. Rival Packet One Networks (P1) did not wait a second to rename theirs to 4G too. YTL claims that the speed it offers is three to five times faster than 3G.
So when YTL and P1 used the 4G word in November last year there was much buzz if Wimax was indeed in the 4G band.
Things have changed.
In early December the International Telecommunication Union (ITU) adopted a broader definition of “4G.” Among other things it said “all forerunners like Wimax can call themselves 4G.''
In essence, two of the technologies Wimax and LTE now counted as 4G are made of much of the same stuff.
All these technology lingo does not mean much to the consumer. He just wants what is promised by the provider, be it reliability of speed, capacity, coverage, quality and at a price which is reasonable.
The 4G networks may not be 100% mature and like any new technology, nothing is perfect, more so since choice of devices is still lacking.
But if the two players claim theirs is 4G and it meets ITU guidelines then 4G has arrived and if they are not transparent, the truth will be uncovered sooner rather than later.
There may be a lot of hype about 4G but this next generation technology is also hope for providers to take consumers on the next journey where the lifestyle demands will be more intense than in the 3G era.
So it would help if the licences for LTE were issued sooner rather than later. The eventual date for LTE spectrum assignment is Jan 1, 2013 and if this can be pushed a year ahead, it would help the market move faster and be in sync with other developed markets.
For any technology to mature, the consumer has a role too as mass adoption helps and we can begin by warming up to Facetime and Tango.
Deputy news editor B.K. Sidhu feels that operators should give all the speed that users want with the bandwidth and not throttle and spoilt the user experience they talk about.
http://biz.thestar.com.my/news/story.asp?file=/2011/5/6/business/8629202&sec=business
Friday Reflections - By B.K. Sidhu
THE buzz word in the telecoms industry is 4G.
You cannot but notice the advertisements popping up claiming that 4G is here. It is a global phenomenon but some say operators are coining their own definitions for the term “4G'' as a marketing gimmick.
We have heard of 1G, 2G and 3G over the past two decades. The next is 4G and the flavour of the so-called 4G technology a new generation of radio upgrades is that it promises to improve the throughput and capacity of wireless phone networks.
Some weeks ago, a chief of a cellular company did ask if 4G was indeed here. He represents a 3G company, which is rival to the two companies now offering Wimax in the country. These two Wimax players claim their networks are 4G enabled.
The chief's cynicism can be understood and he is not alone to raise the question.
The view of the 3G players is that, they are able to deliver what the customers need today and when combined with LTE (long term evolution - which is the natural technology path from 3G) they can conquer the future.
Although the Wimax players had to go through some rough patches in trying to establish Wimax as a 4G technology “an effort is under way by leading Wimax and LTE suppliers and operators to provide a common framework for 4G coexistence.''
Experts claim the Wimax equipment market will reach US$6.9bil by 2014 and this is hardly a sign of a technology that is running out of steam and US-based Clearwire remains the biggest Wimax provider in the world,
It was YTL Communications that used the 4G word extensively at the launch of their “Yes” service last November. Rival Packet One Networks (P1) did not wait a second to rename theirs to 4G too. YTL claims that the speed it offers is three to five times faster than 3G.
So when YTL and P1 used the 4G word in November last year there was much buzz if Wimax was indeed in the 4G band.
Things have changed.
In early December the International Telecommunication Union (ITU) adopted a broader definition of “4G.” Among other things it said “all forerunners like Wimax can call themselves 4G.''
In essence, two of the technologies Wimax and LTE now counted as 4G are made of much of the same stuff.
All these technology lingo does not mean much to the consumer. He just wants what is promised by the provider, be it reliability of speed, capacity, coverage, quality and at a price which is reasonable.
The 4G networks may not be 100% mature and like any new technology, nothing is perfect, more so since choice of devices is still lacking.
But if the two players claim theirs is 4G and it meets ITU guidelines then 4G has arrived and if they are not transparent, the truth will be uncovered sooner rather than later.
There may be a lot of hype about 4G but this next generation technology is also hope for providers to take consumers on the next journey where the lifestyle demands will be more intense than in the 3G era.
So it would help if the licences for LTE were issued sooner rather than later. The eventual date for LTE spectrum assignment is Jan 1, 2013 and if this can be pushed a year ahead, it would help the market move faster and be in sync with other developed markets.
For any technology to mature, the consumer has a role too as mass adoption helps and we can begin by warming up to Facetime and Tango.
Deputy news editor B.K. Sidhu feels that operators should give all the speed that users want with the bandwidth and not throttle and spoilt the user experience they talk about.
http://biz.thestar.com.my/news/story.asp?file=/2011/5/6/business/8629202&sec=business
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