HOTLINK and DIGI Prepaid top-ups good for a Year!
The competition between Malaysia’s mobile player has become to so intensify. Mobile operators have repackaged and unveiled new packages to attract more customers. With the implementation of mobile number portability (MNP), this is definitely is NOT a surprise move.
This much-anticipated move could shake up the whole mobile industry, shrinking customers’ monthly bills and add pressure to the profit margins of the mobile operators. With the increased competitive, CONSUMER is the biggest WINNER!
Current prepaid services in Malaysia offer a validity period of 10 to 60 days. After that validity period, customers have to top up their accounts to make calls, even if they still have balance money in the account. This is definitely a GOOD news for those who seldom use their hand phones or just use to received call or SMS.
Maxis Communications Bhd, which has been leading the very competitive industry with over 41% market share has also repackaged its prepaid service and introduced Hotlink 365 facility for prepaid Hotlink last month. For just RM33 subscription, deducted from the unspent balance on their card, Hotlink users can extend the validity of that balance by one year. To take advantage of the Hotlink 365 facility, the user needs a valid account with a balance of at least RM33. The remaining balance will then be valid for the next 365 days, provided he or she tops up the account by at least RM30 in the next six months.
DiGi Prepaid subscribers now can reload RM100 on your DiGi Prepaid and stay active for 1 year (equivalent to 365 days’ validity). The Good news is there will No subscription fee required and no further top up is required to enjoy 1 year validity after reload RM100.
Look like Maxis need to improve the Hotlink 365 facility in order to win more customer.
The Hotlink 365 facility is on going promotion and the Digi promotion is valid from 23rd July to 31st August 2008. Celcom Bhd, Happy Prepaid and U Mobile Sdn Bhd has not announce any plan on yearly reload promotion up to now.
By extending the validity of the prepaid balance to one year, customers can also avoid having to reload their accounts frequently or having to locate a shop selling top-up cards at inconvenient places and times, such as at night or on public holidays
On a different development, Maxis is said to be bidding the first right from Apple Inc to bring the iPhone into the local market. I am Looking forward more interesting news from Malaysia’s mobile player very soon.
Hi, I’m the digi user. Why the extension promotion only valid till 31st august? What about to those who miss this chance?
Big orders for DiGi’s iPhone show huge market demand
PETALING JAYA: Pre-orders for DiGi.Com Bhd’s iPhone hit 10,000 and since the smartphone’s launch yesterday, new orders are stacking up as DiGi’s tariff plan appears to be reasonable, at least for now.
Its cheapest plan costs RM88 per month, comes with 1GB of data, 200 voice minutes and SMS each and is RM12 cheaper than Maxis Communications Bhd’s iValue 1 offering.
The most striking package is DiGi’s all-in-one monthly fee of RM106 per month where a user commits to 36 months’ subscription but there is no upfront payment for the device. However, Maxis’ iValue 1 plan has the lowest iPhone prices and each model generally costs RM200 cheaper than DiGi’s offerings.
The big volume of pre-orders that DiGi gets shows there is a huge market for smartphones like the iPhone but it also has to do with the expectation of lower pricing plans from DiGi.
“The pre-orders are beyond what we would sell in the first quarter,’’ chief executive officer Johan Dennelind said in an interview with StarBiz, but declined to reveal figures of the company’s commitment of iPhone sales to Apple Inc.
DiGi has a three-year commitment to sell iPhones in the country and it is the second player after Maxis, which had exclusive rights for one year until yesterday. There are nearly 100,000 iPhones in the local market currently.
The iPhone is supposed to help DiGi grow its revenues this year and Dennelind expects the company to surpass the 5% industry average growth rates.
DiGi marked the iPhone launch by making three major centres in Kuala Lumpur, Penang and Kota Kinabalu collection points for customers to collect the 10,000 pre-ordered phones.
While it is difficult to bring down the cost of the device too much, the strategy that DiGi has adopted is to reduce the price of its services.
At the launch yesterday, DiGi head of marketing Albern Murty said the company was offering three pricing plans – RM88, RM138 and RM238 a month – and giving two times more bundled data, SMS and MMS.
“We hope to fulfil the 10,000 pre-orders within the next few days. There is no real waiting time as when we sell, we make sure there is enough stock,’’ Albern said.
Dennelind added: “Our strategy is to do it differently. To us, the iPhone is not just for the top-notch (executive but the larger population) and that is why we brought the entry levels down and our pricing is compelling. Our data offering is also generous.’’
With DiGi’s entry, the stage is set for competition as seen in many markets, but will the incumbent further reduce prices of its packages?
An analyst reckons some price pressure can be expected going forward and any price drop will be good for the consumer. Maxis had a few days ago in anticipation of DiGi’s launch introduced a plan to slash RM200 off its subsidised iPhone price for its iValue plans and the offer is valid till April 20.
Being the second player means DiGi has Maxis to thank for the groundwork, something Dennelind acknowledges.
“Being a challenger has worked well for us but we also like to try to stand out against Maxis on some key things,” he said, adding that “there are also other devices that we want to push such as BlackBerry, Android and Symbian as we want to stand for a variety of phones.”
Asked if DiGi had the rights to distribute the iPhone 4G that Apple Inc was expected to launch later this year, Dennelind said: “We are a partner and expect to be treated as a key partner. That is our clear expectation. Our customers will also expect the latest as well.”
The commitment with Apple is there but according to Dennelind, DiGi is not going to “push the phone just to rake up sales as it wants to find a balance so that customers have a good experience” without clogging up its network.
The company’s 3G network covers 30% of populated areas and this is complemented with its Edge network which has 60% coverage. Even if users moved out of the 3G coverage area, Dennelind said they could continue to use the iPhones as the Edge network was there.
“By the end of this year, the coverage will be about 50% and by 2011 it would be close to (the) competition,’’ he said. DiGi’s service is now available in the Klang Valley, Ipoh, Penang, Kota Kinabalu and Kuching.
fr:biz.thestar.com.my/news/story.asp?file=/2010/4/1/business/5973340&sec=business
Digi Q1 profit up slightly
PETALING JAYA: Mobile-phone service company DiGi.Com Bhd registered a marginal 1.02% increase in net profit to RM278.25mil for the first quarter ended March 31, 2010 (Q1) compared to the same period a year ago largely due to the amortisation of 3G spectrum investments and higher financing costs.
Revenue rose 6% to RM1.29bil on encouraging subscriber acquisition in prepaid segments, higher usage of mobile internet services and growing brand strength across all segments.
DiGi chief executive officer Johan Dennelind told StarBiz yesterday that the company would likely achieve a higher growth rate than the industry average of 5% for the year as long as the year-on-year pace of growth was maintained.
“We’re positive that the company will maintain the growth momentum, we’ve no reason to change our guidance on earnings, it’s looking bright,” he said.
However, Dennelind, who leaves DiGi on May 17, said that going forward, margins at Q1 levels would not be sustainable due to higher handset subsidies driven by the company’s smartphone sales.
Margins for Q1 had strengthened to 44.6% compared to a year ago.
“From April onwards, we’re seeing heavier handset subsidies driven by smartphone sales which we’re absorbing up front but to mitigate this, we’ve cost-saving measures,” Dennelind said.
In a press statement, DiGi said its subscriber base rose almost 10% year-on-year to 7.9 million customers but average revenue per user (Arpu) was lower at RM53 per user in Q1 compared to RM56 per user in the same period a year ago, largely due to “a very competitive market place”.
The company said continued growth would be supported by key areas in mobile internet for big and small screens and market share gain.
The company said in a separate announcement to Bursa Malaysia that it was declaring a first interim dividend payout of 35 sen per share payable on June 18.
Maybank Investment Bank Bhd analyst Khair Mirza said although DiGi’s Arpu was trending down, subscriptions were up which in turn would lead to higher usage.
“We expect DiGi to achieve high single-digit growth in revenue for the year due to a higher subscriber base,” he said.
fr:biz.thestar.com.my/news/story.asp?file=/2010/5/5/business/6190099&sec=business
Maxis testing 4G technology
Celco also conducting trials for IPTV as part of growth strategy
PETALING JAYA: Maxis Communications Bhd is testing the 4G LTE (fourth generation long term evolution) technology and at the same time conducting trials for its IPTV (Internet protocol TV) offering in the Klang Valley. These exercises are all part of its growth strategy for the future.
“Maxis has always made sure that we trial-test new technology ahead of time. We were first to launch 3G and have done testing even for DVB-H (digital video broadcasting – handheld), HSDPA and even WiMAX,’’ Maxis chief executive officer Sandip Das said.
Whether Maxis will eventually deploy LTE will depend on spectrum allocation by the Government, but as a celco, it is exploring all possibilities given the fact that demand for mobile broadband is growing very rapidly.
“Maxis has a strong track record for adopting leading-class technology to enrich the lives of its customers and LTE is one of a number of technologies on the radar to enhance customer experience.
“However, no decision has been made at this point in time on the LTE vendor,’’ Sandip added.
LTE is the fourth generation wireless technology that was first deployed globally by TeliaSonera in Stockholm and Oslo at the end of last year. The Global Suppliers Association (GSA) said there were more than 59 LTE network commitments in 28 countries globally. LTE allows a peak download speed of 100 megabits per second on mobile phones.
It would be challenging to get new spectrum and that was why Maxis was also looking into ways of exploiting fully what it had, said Sandip. However, he added: “LTE promises efficient use of spectrum.’’
It has 2G, GPRS and 3G technologies and, at the moment, offers products and services for voice, data and images to its 12.3 million subscribers in the country.
Traditionally players look to the next generation of technologies to solve the problems presented within existing technology such as lack of capacity and speed. LTE and WiMAX are seen to be 4G technologies that can be used to increase bandwidth availability and resume an acceptable level of quality for data services.
However, there is presently much debate globally as to which 4G technology is superior.
Maxis, which was recently re-listed on Bursa Malaysia, said it would have the largest mobile footprint and 3G coverage in the country by year-end.
Besides LTE, the company has nearly 50 people trying out its IPTV offering. This would be the next big thing the company intends to offer. To Maxis, IPTV is just the conduit for more content to be delivered to its users.
It has reached 5.4 million mobile Internet users, with the number growing by the day.
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DiGi expects some pressure on earnings
CEO: Higher handset subsidies to impact EBITDA margin
KUALA LUMPUR: DiGi.Com Bhd’s earnings before interest, tax, depreciation and amortisation (EBITDA) margin for 2010 may face some pressure due to its higher level of handset subsidies.
Chief executive officer Johan Dennelind said the handset subsidies, which were given out to customers to capture data traffic growth, was expected to have some impact on its EBITDA margin.
“We had a strong first quarter with EBIDTA margin of about 45%. We expect this to go to last year’s level mainly due to handset subsidies,” he said after the company’s AGM which lasted for two hours yesterday.
Last year, the telco achieved an EBITDA margin of 43.3%. For the first quarter, it achieved a net profit of RM278.2mil, or 35.80 sen per share on revenue of RM1.29bil.
He said the subsidies were coming more into play as DiGi drove smartphones sales not just for the iPhone but also other phones such as the Android.
Dennelind, in its CEO review, said while its EBITDA margin would continue to be under some pressure but it targeted to improve the margin with further cost optimisation measures.
“We are confident of achieving an absolute operating cash flow higher than that of 2009. Operational efficiency will continue to be an important focus area to ensure we remain competitive,” said the outgoing CEO.
Overall, Dennelind said DiGi was optimistic of its growth. “The industry is still growing. Industry-wise, we anticipate revenue growth to be around 5% this year but DiGi aims to grow its revenue above this level.”
He said the group was in a great position in terms of capital management. He said its yield over the last five to six years was “superior”. He added that the accumulated dividend payout over the last five years was some RM6bil and its shareholders were very happy with the fact.
Dennelind said DiGi would “not compromise” on dividend and was looking to maintain its dividend policy of distributing a minimum 80% of annual net profit to shareholders.
On the sales of its iPhone, he said the takeup rate was “very encouraging”, but he did provide any numbers.
He said DiGi continued to see intense competition, its new business model being attacked and the rise of Internet usage. “There are many (challenges) but we rather see it as opportunities.”
On its 3G network coverage, he said the group was playing catch up. DiGi’s 3G network currently covers some 30% of populated areas. By year-end the coverage will be about 50%.
fr:biz.thestar.com.my/news/story.asp?file=/2010/5/14/business/6258570&sec=business
Maxis, PayPal in strategic tie-up
KUALA LUMPUR: Maxis Bhd’s customers can now make secured payments via online and mobile using PayPal.
The new service, Maxis-PayPal account, was introduced yesterday by Maxis in a strategic partnership with PayPal.
Maxis chief operating officer Jean-Pascal Van Overbeke said the collaboration was the world’s first involving a mobile operator and an online payment service provider. The tie-up, he said, was set up to fuel the e-commerce eco-system in the country.
“As the leader in mobile Internet, Maxis will share its strong expertise in this collaboration, bring customers and merchants beneficial applications that they will enjoy and find easy to use,” he said at the launch yesterday.
The collaboration between Maxis and PayPal will enable consistent and simple purchase experiences for all Maxis customers. It will also enable small businesses to pay and sell easily.
According to Van Overbeke, Maxis had over 12 million customers, half of whom were active mobile data users.
Today, there are over 16 million Malaysian interact online. He said some 80% of consumers went online to identify what they wanted to buy and where they wanted to buy it from while about 30% of consumers actually proceeded to make an online purchase.
“This collaboration complements Maxis’ integrated play proposition where we will enable payments across mobile, online broadband and IPTV in the new future,” Van Overbeke said.
To a question, he said the group was looking at introducing its IPTV but declined to reveal the timing.
Meanwhile, vice president and head of data and new business T. Kugan said the adoption of smartphones had been growing exponentially. He said Maxis was trying to bring more customer experiences for its subscribers while the new service was expected to drive data usage.
Kugan said it was also looking at introducing more smartphones going forward and not just Blackberry or iPhone but also other such as android or window platforms smartphones.
PayPal Asia Pacific vice-president Farhad Irani said the Maxis-PayPal account was highly secure, leveraging on PayPal’s fraud controls.
“Customers can enjoy high level of privacy with their financial details such as credit card numbers and expiry dates kept confidential from merchants during payment.
“They just need to log-in with Maxis-PayPal credentials and click to pay. Maxis customers would log in with their mobile numbers,” he said, adding that there would be no additional service charges when transactions were done on this service.
To a question, Irani said customers on Maxis network would be upgraded to Maxis-PayPal and it would be done seamlessly. He added that PayPal was in the midst of finalising details to partner with a local bank to extend its services portfolio.
fr:biz.thestar.com.my/news/story.asp?file=/2010/5/15/business/6264775&sec=business
Maxis to spend RM1.4bil on coverage extension
KUALA LUMPUR: Maxis Bhd will be investing a total of RM1.4bil to upgrade its 2G and 3G network to extend its coverage to 80% nationwide by year-end from 60% currently.
Executive vice-president and Network and Technology head Mark Dioguardi said the amount would be the largest ever invested by Maxis to provide better integrated network service on a single platform to its 12 million subscribers in Malaysia.
“We will also be looking to improve our coverage in East Malaysia with the funds and other remote places in the country,” he told reporters at a media rountable on transformation of network yesterday,” he said.
Dioguardi said Maxis network was at the core of the company’s development of the mobile and fixed communications ecosystem offering services which fit “specific needs.”
“Some years ago, we made a necessary choice to significantly invest in the kind of network which will be capable of supporting explosive demand for mobile and fixed browsing and of providing a fully converged platform,” he noted.
Dioguardi said Maxis had invested RM4bil over four years from 2005 to 2009 to built a network involved in altering its physical infrastructure in an intense programme known as future-proofing.
“We now have a network which goes measurably further in call quality, nationwide coverage, browsing speed and thanks to Internet Protocol-based infrastructure – is scalable to deliver useful new technologies and applications – allowing us to continue being the first to offer customers relevent innovations,” he said.
On the RM1.4bil fund disbursement, Dioguardi said the fund would be roughly split into three equal portions and channelled equally to upgrade 2g, 3G and other necessary infrastructure works (hard and soft) to support the business.
“Currently all our 2G sites are data-capable and all our 3G sites deploy High-Speed Packet Access technology. We have also recently received our license to undertake trials in Long-Term Evolution. We will provide customers with the best service offerring in the market complete with devices and compleiing content,” said Dioguardi.
fr:biz.thestar.com.my/news/story.asp?file=/2010/5/20/business/6298442&sec=business
Maxis teams up with PayPal
In just three simple steps Maxis subscribers will soon able to pay for online purchases using their PayPal account via their mobile phone or a laptop connected to the Maxis broadband service.
Expect to start early next month, new users can sign up for a Maxis-PayPal account while existing PayPal customers have to upgrade their account to the Maxis-PayPal version for the purpose.
According to Maxis, any phone that can connect to the mobile Internet can use the service.
Users can register at the company’s website and download the free Maxis-PayPal application for their smartphones from the respective vendor mobile application stores such as the iTunes App Store, Ovi Store, BlackBerry App World or Android Market.
Feature phone users can get the app from the Maxis WAP portal.
Once registered users only need to key in their phone number, the PIN number and click on the “pay” button in the application.
The details of purchases made via a Maxis-Paypal account will appear in the customer’s itemised billing.
However the application will only be available in stages depending on the platforms. Maxis expects the service to be fully up and running in August.
In the meantime, users can also download the generic PayPal application directly from the company if the Maxis-PayPal application is not yet available for their mobile phone model.
As a standard, PayPal payment will be deducted from the user’s linked bank account, debit card or credit card.
However, with this partnership, a source close to Maxis revealed that charging the PayPal amount to a user’s monthly bill is also a possibility but no official information was available at press time.
According to Maxis chief operating officer Jean-Pascal Van Overbeke, mobile Internet is fast gaining traction here and this collaboration is slated to fuel the local e-commerce ecosystem further.
He said that over 16 million Malaysians interact online with 80% going online to identify what they want to buy and where they want to buy it from.
“However only about 30% actually proceed to make the online purchase,” he said.
One of the main reasons cited is that local users are not comfortable in revealing their financial details due to the increasing problem of online fraudulent transactions, he added.
With the Maxis-PayPal initiative in place, Maxis hopes that the number of online transactions will increase as the process is highly secure thanks to PayPal’s renowned antifraud controls.
Customers will also enjoy a high level of privacy because information such as credit card numbers and expiry dates are kept confidential from merchants during payment, he added.
Maxis has over 12 million subscribers out of which over 50% are active mobile data users. Meanwhile PayPal has over eight million merchants and 84 million active accounts worldwide.
fr:star-techcentral.com/tech/story.asp?file=/2010/5/14/technology/20100514180004&sec=technology
Spectrum auction the way to go
Friday Reflections – BY B.K. Sidhu
MALAYSIA should consider auction of spectrum in the future.
India just netted a cool US$14.6bil from its 3Ghz spectrum auction two days ago. It has also plans to auction the 4Ghz spectrum.
Several years ago some governments in Europe netted several billion dollars each for auctioning 3G spectrum.
Spectrum allocation in Malaysia in the past has been done in so many ways with political patronage not excluded. That also explains why some players are hogging more spectrum than they need while there are others hoping to get more.
The journey of spectrum award began many years go when frequency was awarded for broadcasting of TV and radio, the UHF and VHF as well as satellite broadcasting. In the mobile world the old Atur network began over three decades ago and it was running on the 450 band.
Then came the GSM and PCN 1800 standards. In early 2000, the 3Ghz spectrum was given out via a beauty pageant-like contest, which means the best man with the best business plan wins.
The regulator has also awarded a host of other spectrum including 2.5Ghz, 2.3Ghz and last year, the 10.5Ghz for mobile backhaul and wireless local loop. Next is 4Ghz.
To make sure there is better spectrum management in the future the regulator has come up with a draft spectrum plan. With the plan, the regulator is a bit like “stargazing” as to what is needed for the future by the players. It wants feedback so that it can twig the plan.
We are a bit late in crafting the comprehensive spectrum plan, it should have been done at least two years ago. Re-farming is a must for efficiency spectrum planning and several blocks will be up for grabs in due time.
Why go for auctions?
It is adopted globally, it can be a money spinner for the Government and only serious players get into the game. It will do away with political patronage provided of course the whole process is transparent.
There should not be “behind the scenes price fixing” and the final word should that be of the regulator and there should be no room for “over-riding of decisions” made by the commission.
Of course, the process also marks the start of life under a pile of debt for the companies that put in high bids to secure the spectrum and this could strain their balance sheets for years. There is also fear that all this will drive up prices for consumers.
But let’s look at how Europe has done it where consumers still get fair value packages. There are pros and cons but auctions is a viable option.
For a country that thrives to be in the forefront of technology the spectrum plan is vital. More important is the way the spectrum will be awarded as that will determine if fairness prevails and whether there really is a level playing field.
● Deputy news editor B.K. Sidhu says reading parts of the 280-page document was a trying experience.
fr:biz.thestar.com.my/news/story.asp?file=/2010/5/21/business/6309209&sec=business
Malaysia to allocate bandwith for 4G
MCMC draws up spectrum plan
PETALING JAYA: The telecom’s industry regulator has come up with a draft spectrum plan in which it proposes to re-farm several blocks of frequency including those in the 850 Mhz, 900 Mhz and 2.5 Ghz bands.
Those in the know say that the 900 Mhz and 2.5 Ghz spectra may be allocated for 4G services sometime next year. But it is not clear what the plan is for the 850 Mhz.
“The 900 Mhz band can be used for wider reach while the 2.5 Ghz is good for capacity since demand for broadband services is growing in the country,” said a source.
Mobility, fast speed and bigger bandwidth services is pushing greater usage of spectrum. Convergence of telecoms, broadcasting and information technology has also made managing radio frequency spectrum much more complex.
Spectrum is also a scarce resource, so having a plan for future spectrum allocation and assignment is necessary to make it easier for service providers to know what spectrum is available for their own planning.
Re-farming is a way to free up spectrum of an age-old technology that is not used or a frequency that may not have been fully developed and re-assign it where demand is huge.
This is also the first time the regulator, Malaysian Communications & Multimedia Commission (MCMC), has come up with such a comprehensive spectrum plan. It has posted the draft on its website for public feedback.
Some industry players contacted said it was a good move but they needed more time to read the entire document, which is 280 pages, to comment on it.
For now some players have more spectrum than others. There are other players that want more spectrum but have not got it while some other newer players have not been able to get spectrum. The spectrum plan hopes to address all that and potentially open up new avenues for others to come in.
DiGi.Com Bhd chairman Sigve Brekke said the company was hoping to get more spectra and was still in talks with the regulator on it.
“From a fairness point, have a regulated industry where all players have equal frequency allotted on equal frequency bands so that there is a level playing field,” he said.
In the draft document, MCMC said that “due to greater demand for broadband services, several spectrum bands had been identified to be re-farmed in the near future. It cited the 450-470 Mhz, 790-960 Mhz, 1,710-1,885 Mhz and 2,500-2,690 Mhz frequency bands as potential candidates for re-farming.”
Refarming also does not mean that the regulator will forcibly take back spectrum allocated to players especially those it wants to refarm. All spectrum awards have a tenure period. Since the regulator may be awarding several 4G spectra and is likely to use the 2.5G spectrum, it will look into the tenures of these spectra before allocating it accordingly, said a source.
The draft plan also identifies the need to review blocks allocated for fixed and backhaul, short-range devices, radio frequency identification systems, and private/public mobile radio or walkie-talkie.
Other industries such as defence, the police force, fire brigade, ambulance and maritime enforcement agency also use spectrum for radio communications.
Broadcasting is an area extensively covered in the draft as the shift from analogue to digital terrestrial TV will take place in 2015. The new digital broadcasting technologies not only allow for more efficient use of radio spectrum and support users’ demands for mobility but are also changing traditional methods of watching TV.
This process will require more spectra and the commission in the draft said it was looking at various new technologies such as digital terrestrial TV, digital sound broadcasting and digital multimedia.
“That is why spectrum management is vital and the draft hopes to address a lot of spectrum requirement for the future,” the source said.
fr:biz.thestar.com.my/news/story.asp?file=/2010/5/21/business/6308397&sec=business
DiGi focused on wireless services
It aims to win bigger share of broadband for small-screen market
KUALA LUMPUR: DiGi.Com Bhd wants to concentrate on wireless services rather than venture into Internet protocol television (IPTV) or broadcast so as not to spread its risks, says chairman Sigve Brekke.
He said the company would strive to achieve higher margins and win a bigger share of the broadband for the small-screen market.
“We will not be at a disadvantage if we did not go into the IPTV or broadcast business. We have to stay focused on wireless services and not spread into too many areas,’’ he told StarBiz in an interview.
“We believe there is enough growth for us to remain in data and voice business,’’ he said.
Telcos and celcos globally are increasingly venturing into broadcast to diversify their earnings and while that requires big investments, the returns can be lucrative if content is compelling.
As for DiGi, it prefers to stick to what it knows best. And it is unwilling to invest millions to lay fibre because it doesn’t foresee credible returns if it were to make such an investment.
“We need to have an attacker’s mindset, bring in value propositions and segmentise the market further. That will allow us to take a fair share of the broadband market for small screens,” Brekke said.
“We are also coming to a situation where the industry growth is in the single digit. It will become more competitive and managing costs will become more crucial for us to improve our margins,’’ he said.
The mobile-phone industry is expected to grow by 5% this year.
Brekke did not give any targets but for the first quarter ended March 31, 2010, DiGi’s EBITDA (earnings before interest, tax, depreciation and amortisation) margin was at 44% compared with 43.3% a year earlier.
The company could face some pressure on margins due to its higher level of handset subsidy for iPhone sales but it is working on other areas to offset any shortfalls.
In contrast, Maxis’ EBITDA margin as at December last year was 50.4%, while for Axiata Group Bhd it was 39.3%.
For its fiscal first quarter ended March 31, DiGi reported net profit of RM278.2mil on revenue of RM1.29bil. In that period, data services made up 20.6% of mobile revenue.
DiGi recently saw a change at the helm. Henrik Clausen, who has worked in markets that thrive on broadband, took over from Johan Dennelind on May 17. Clausen is the sixth CEO for DiGi, in which Telenor has a 49% stake.
“We see benefits from changing CEOs at every different stage the company goes through. DiGi has had six CEOs in 11 years and all have different characters and expertise and each one has taken DiGi to a new level,’’ Brekke said.
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Subscribers to gain from Maxis network upgrade
Maxis Bhd is spending RM1.4bil to upgrade its cellular network, promising its 12 million subscribers nationwide improved call quality, wider coverage and faster mobile access to the Internet.
After the upgrade is completed this year, it will also be able to offer next-generation products and services, such as 3G wireless access on the 900MHz spectrum and High-Speed Packet Access + (HSPA+) technology.
What this will translate to for subscribers is clearer voice calls, smoother running video calls, and an all round improvement to websurfing via smartphones and other devices.
“We will provide more customers with the ultimate in mobility and seamless access to rich content and services, anywhere they are and on any device,” said Mark Dioguardi, executive vice-president for network and technology at Maxis.
With the improvements to its network, Maxis aims to reach 80% 3G coverage of the country by year end, up from the 60% recorded in January.
This is good news for Malaysians who are waiting for Apple’s iPad tablet computer to get here, expecially the 3G version that will free its users from only being able to surf the Web from a WiFi hotspot to truly anytime, anywhere access.
It is widely speculated that that version of the iPad will be offered by Maxis, which already pushes Apple’s iPhone in the country, as does rival DiGi Telecommunications. The speculation increased when Maxis recently announced support for the micro SIM format that is used by the iPad 3G and one other device.
According to Dioguardi, it used to be that 80% of the cellular network was for voice calls and the remaining 20% for data services. “But now that has been reversed (as more people take to accessing the Internet from phones and other portables),” he said.
Future proofing
The other developments taking place at Maxis include an initiative to test Long-Term Evolution (LTE) technology. The trial is expected to begin in the next month or two; Dioguardi declined to provide more details on the programme.
LTE is a fourth-generation wireless technology that was first deployed internationally by TeliaSonera in Stockholm and Oslo at the end of last year. It touts a peak download speed of 100 megabits per second on mobile phones. At that speed, a high-definition movie (8 gigabytes in size) would download in 11 minutes.
Maxis is also in the midst of testing fibre-to-the-home technology; it wants to exploit the 10,000km of fibre-optic cable that is already in place in the country. This would mean improved and speedier Internet connections to homes.
Also, Maxis is going to work with Tenaga Nasional Bhd (TNB) to using electrical power lines as a means to bring the Internet to more homes, particularly those in the rural areas.
It is also discussing with TNB the stringing of fibre-optic cables along electrical poles to homes and offices, especially where it would be costly to run the cables on the ground.
Until now, Maxis has installed fibre-optic cables to 400 buildings in the Klang Valley and will expand these connections to include Johor Baru and Penang.
fr:techcentral.my/news/story.aspx?file=/2010/5/21/it_news/20100521130644&sec=IT_News
Celcom and DiGi to collaborate
PETALING JAYA: Two cellular rivals, Celcom Axiata Bhd and DiGi.Com Bhd, are coming together to work on a proposal to share infrastructure that could lead to cost savings and reduce duplication in the areas of network operations, transmission and site sharing for towers and radio access.
This is the first time a collaboration of this scope is being explored by the players in Malaysia and perhaps regionally. Similar tie-ups, although few, are found in other parts of the world. The whole idea to explore a partnership is led by thinning of margins and rising costs especially in the broadband area.
If it eventually takes off it could have a huge impact in the market place, giving the two an edge over its rivals but it could also be anti-competitive for the consumer as these two could fix prices of services to consumers.
Yesterday both parties inked a memorandum of understanding and a definitive agreement is expected to be hammered out before the year is out. The sharing is for existing and future infrastructure but both will not jointly bid for future spectrum.
“Previously we were just sharing the transmission towers but this new arrangement allows us to be more efficient, provides more capacity and wider reach to more consumers,’’ Axiata Group managing director/CEO Datuk Seri Jamaludin Ibrahim said. Last night he was named CEO of the Year at the Frost and Sullivan Asia Pacific ICT Award 2010.
Telenor head of Asia Pacific and chairman of DiGi Sigve Brekke said he was “bullish over its prospects’’ as it was getting difficult to manage cost, and sharing will bring prices down and make services better for consumers.
All this cost sharing is great for the telcos and could force other players to be on their toes but for consumers, the threat is there that service providers could become monopolistic.
But Jamaludin does not think so. To him “this collaboration will have zero impact to reducing competition; in fact it will lead to more competition.’’
He cited an earlier collaboration between the two that led to 60% of tower sharing and that helped the companies save cost and cut redundancies.
Celcom CEO Datuk Seri Shazalli Ramly said the alliance was at the technical level and not marketing of products and services; hence, operators would have to compete by coming up with better and more innovative products. He said any cost savings would be passed on to the consumers.
“The collaboration in itself starts with the customer and we can promise it will be a tough fight, (competition) will not change, it will be (more intense),’’ added Henrik Clausen, the newly appointed CEO of DiGi.
Axiata has a similar tie-up with Telenor, the parent of DiGi, for their operations in Bangladesh and it’s that new friendship that led Axiata and Telenor group to explore collaboration between DiGi and Celcom.
Also present at the event was Malaysia Communications and Multimedia Commission chairman Tan Sri Khalid Ramli who hopes to see more collaborative efforts in the sector.
Celcom is also not opposed to working with other parties.
“If (Maxis Communications Bhd) says let’s talk, (we would say) why not, this is an industry effort,’’ Jamaludin said. Axiata is Celcom’s parent.
fr:biz.thestar.com.my/news/story.asp?file=/2010/6/11/business/6448138&sec=business
Telco tie-up could lead to more dividends
PETALING JAYA: While the network and infrastructure collaboration between Celcom Axiata Bhd and DiGi.Com Bhd promises to bring about cost savings for the two companies, it is still early days to know if this will translate into better dividends from both companies, analysts said.
“It’s short-term neutral but potentially long-term positive, depending on the finalisation of the plan, and if and when the third stage will be achieved,” a telecommunications analyst with a foreign research house pointed out.
“Before we reach that stage, it is difficult to assume that there will be significant savings that can translate into better dividends,” he added.
To recap, the two telcos signed a memorandum of understanding (MoU) on Thursday for an active sharing of network and infrastructure, covering operations and maintenance, transmission and site sharing, and radio access network.
ECM Libra said in a research note yesterday that it was positive on the collaboration, subject to the signing of the definitive agreement by year’s end.
“Reducing costs will boost margins and generate bottom-line growth (for Celcom and DiGi), which has tapered off due to the saturating mobile market.
“Also, Celcom and DiGi stand to close the gap with Maxis, which currently commands the highest EBITDA (earnings before interest, tax, depreciation and amortisation) margins.
“In addition to operational expenditure savings, we believe both parties may benefit from significant capital expenditure savings as well, in terms of 3G rollout,” ECM Libra said.
The research house said this in turn would free up more cashflow for DiGi to sustain its high dividend payouts, as well as for Axiata, which is expected to announce a more concrete dividend policy in the third quarter of 2010 for its maiden dividend payment in FY2011.
But ECM Libra added: “As it is still early days, we make no changes to our earnings forecasts for now, pending the signing of a definitive agreement.”
Meanwhile, RHB Research in a report yesterday reckons that the collaboration would allow Celcom to expand its capacity requirement in city areas at lower cost, given that DiGi tends to have a stronger presence in urban areas.
“Celcom’s network cost has been around 9.6% of revenue since Q4 FY2009, which would suggest that in order to squeeze out further savings, some form of collaboration would be required,” it said.
It is still unclear at this point though as to how Maxis Bhd, the largest mobile operator in Malaysia, will react to the collaboration between its two competitors.
“Going by the trend seen in other developed markets, Maxis may possibly be left out in the cold,” ECM Libra said.
Another analyst pointed out though that Maxis still has the option of joining this collaboration. “Maxis could also embark on other cost-savings measures to ensure it, too, protects its attractive EBITDA margins,” the analyst added.
fr:biz.thestar.com.my/news/story.asp?file=/2010/6/12/business/6454387&sec=business
Maxis mulls options to raise up to RM4.5b
KUALA LUMPUR: Maxis Bhd is preparing to raise as much as RM4.5bil to upgrade its network and pay back debt, chief financial officer Rossana Rashidi said.
The carrier, controlled by billionaire T. Ananda Krishnan, was in talks with bankers to weigh options that included the company’s first sale of bonds, Rossana said in an interview on Tuesday. Maxis may raise the funds in the next three to six months, she said.
The company plans to invest RM1.4bil on its mobile phone and broadband networks this year as revenue from voice calls shrinks. Analysts estimate Maxis’s profit will climb to RM2.46bil this year, fuelled by demand for wireless Internet access.
“They need to raise long-term money to be used for capital expenditure and a combination of other things,” said Jeffrey Tan, an analyst at OSK Research Sdn Bhd.
“Perhaps a special dividend is one of them.” OSK has a “neutral” rating on Maxis and a share price estimate of RM5.80.
Maxis closed down one sen to RM5.30 yesterday.
The company would use RM2.5bil of the proceeds to repay a bridging loan and the rest for capital expenditure, Rossana said. Maxis’ initial public offering raised RM11.2bil for the parent in November.
Maxis has a net debt-to-equity ratio of 43%, compared with 17% for Advanced Info Service Pcl of Thailand, 57% for Philippine Long Distance Telephone Co and 124% for Indonesia’s PT Indosat, according to Bloomberg data.
Maxis and its parent, Maxis Communications Bhd, don’t have debt ratings. Binariang GSM Sdn Bhd, which owns a controlling stake in Maxis Communications, is rated AA3 by Rating Agency Malaysia Bhd.
The mobile phone operator was exploring both Islamic and conventional financing, Rossana said. It was also considering whether to use ringgit or dollars, she said.
The company had RM8.32bil in liabilities as at March 31, according to data compiled by Bloomberg.
Profit is poised to climb 56% to RM2.46bil this year, according to the average of 26 analyst estimates compiled by Bloomberg. The company, which has more than 12.6 million subscribers, posted profit of RM552mil last quarter.
Maxis wanted to expand its third-generation network to reach 80% of Malaysia’s population by the year-end, it said in Tuesday’s statement.
“Clearly, there’s a lot of pressure on voice,” chief executive officer Sandip Das said in an interview. “The next revenue is going to come from underserved geography, data and broadband. That’s where the company is investing big time.”
fr:biz.thestar.com.my/news/story.asp?file=/2010/6/17/business/6483913&sec=business
Axiata Group Bhd does not see the need to invest in the Wimax (worldwide interoperability for microwave access) technology, as it is now riding on the uptrend of the third generation (3G) wave.
Axiata president and group chief executive officer Datuk Sri Jamaluddin Ibrahim said 3G technology has gained traction, with handset prices coming down, and nearly every mid-tier handphone being equipped with 3G.
He added that the biggest Wimax player in the world was also the smallest 3G player in the world.
“In that respect, we believe we have an edge. However, Wimax players can still be successful players and pose a threat to us,” he told reporters after the company’s AGM.
fr:biz.thestar.com.my/news/story.asp?file=/2010/6/22/business/20100622154446&sec=business
Maxis under dividend pressure
Group’s India ops facing increasing funding needs
PETALING JAYA: With its major shareholder Maxis Communications Bhd (MCB) facing increasing funding needs for the Indian market, Maxis Bhd is under pressure to declare more dividends, according to analysts.
The unlisted MCB’s Indian unit Aircel Ltd recently won wireless broadband Internet licences in eight circles in India, for which it had to pay US$750mil. This is aside from the US$1.3bil it had to pay for the previous 3G licenses last month.
MCB owns 70% of Maxis as at April 19. To recap, Aircel and other overseas assets of the Maxis group was carved out of Maxis when the latter was relisted on Bursa Malaysia on Nov 18 last year.
AmResearch said: “This puts more strain on Aircel’s cash flow for capital investment in the next five to seven years. This may put pressure on Maxis to pay dividends to MCB to part-finance this new undertaking.” It said Maxis had not commented on special dividends in store this year but this could be the excuse it was looking, adding that Maxis currently had a net debt to equity ratio of 455%.
“Early last week, its management mentioned that it might issue debt up to RM4.5bil this year. This capital management may indicate that Maxis is gearing up to pay dividends,” it said in a statement.
Another local analyst said Aircel was committed to be a significant player in India, thus a significant investment was needed.
“This will eventually affect Maxis’ profit growth going forward as the major shareholder needs more capital to fund Aircel expansion in India,” he said, adding that this might increase the dividend payout from Maxis.
AmResearch said there was no immediate impact on Axiata Bhd, as its unit Idea did not enter the bidding in India at all.
“However, in the long run, the dynamics of Internet access market might change and put some risk on Idea’s long-term sustainability,” it said. It noted that Axiata’s Idea and DiGi’s sister company Uninor passed the chance to bid.
“Idea is concentrating on 3G licences it already has while Uninor is not vying for Internet subscribers as yet,” it said.
According to AmResearch, the Indian government raised over 385 billion rupees (US$8.2bil) from the broadband service exercise, this after raking in 677 billion rupees (US$14.4bil) from auctioning 3G licences. The Government had offered two slots of bandwidth to offer wireless broadband Internet services in the country’s 22 service areas.
Some established cellular players like Reliance Communication, Vodafone-Essar and Idea Cellular had opted out as they perceived the prices to be unrealistically high. Newcomer Infotel Broadband Services, which is related to Mukesh Ambani’s Reliance Industries, bid for and got the only all-India licence across all areas for 128 billion rupees (US$2.74bil).
Another recipient of the licence, Qualcomm, spent US$1bil to buy slots of broadband in metros Delhi and Mumbai and the states of Kerala and Haryana.
fr:biz.thestar.com.my/news/story.asp?file=/2010/6/22/business/6516441&sec=business
Mobile money transfer for Maxis, Hotlink subscribers
MAXIS Berhad, in collaboration with the Western Union Company, recently launched a pilot programme of a mobile money transfer service which enables Maxis and Hotlink subscribers to send money to any one of more than 370,000 Western Union Agent locations in 200 countries and territories.
The launch marks the first time Western Union has enabled mobile money transfer transactions from a mobile phone (a “mobile send”) with a mobile network operator outside the United States.
The service will mainly benefit the large number of foreign workers in Malaysia, especially those from Indonesia, the Philippines and Bangladesh, providing convenience and efficiency in global funds transfers.
“Mobile commerce is part of our future, and we intend to collaborate with strong companies such as Western Union to build an ecosystem that will have the potential to change our customers’ lives,” said Maxis chief operating officer Jean-Pascal Van Overbeke.
“In this instance, we are simplifying the customer experience by offering them easy access to a global money transfer service that cuts across borders and processes.”
“This service will provide customers with a more immediate option of transferring money more frequently to family and friends,” he said.
Western Union mobile transaction services head Khalid Fellahi said with the launch of the pilot programme, Maxis subscribers can now send cross-border remittances virtually anywhere in the world using their mobile phones.
“The way people send money is changing, and Western Union is proud to be an industry leader in the introduction of mobile financial services,” he said.
Customers who take part in the programme can send money from their mobile phones and receive an SMS notification when the funds are collected in the destination country.
To participate, customers need to sign up for M-money via SMS (type REG and send to 27007) and top-up cash into the M-money account before remitting money via SMS. Registered M-money customers with money in their M-wallets can use the service immediately.
The first top-up transaction must be done physically at a Maxis Centre and select retailers at the pilot locations.
Once a customer has registered at a physical location, he can top up cash online through mobile and internet banking channels and via cheque or cash deposit machines at participating banks.
During the initial launch of the service, enrolment and top-ups of mobile accounts can be done at any of the 13 Maxis locations in the Klang Valley, Pahang and Sabah.
fr:thesundaily.com/article.cfm?id=49324
Analysts don’t expect lower prices for mobile phone services
By LEONG HUNG YEE
Price war unlikely but telcos are expected to compete on device offerings, say analysts
PETALING JAYA: While cellular companies may have posted rosy profits during the latest reporting season, analysts say the second half will not be an easy period for them.
Analysts do not expect an all-out price war between telcos but they do see competition heating up on device offerings such as smartphones.
“Both DiGi.Com Bhd and Maxis Bhd will be offering Apple Inc’s iPhone 4 soon. Pricing details have yet to be revealed but consumers will always opt for the best bargain,” an analyst said, adding that the average revenue per user (ARPU) and earnings before interest, tax, depreciation and amortisation (EBITDA) margin for telcos would remain under pressure.
DiGi had earlier cautioned that its EBITDA margin for 2010 might be pressured due to higher level of handset subsidies.
AmResearch Sdn Bhd said that despite a recent reduction in interconnection fees to 5 sen from 8 sen previously, the competitive landscape between telcos remained status quo. “There is yet to be a full-fledged price war,” it said.
The research house said ARPU continued to decline on a blended basis and reckoned that ARPU was almost reaching saturation point.
Within the postpaid segment, AmResearch said ARPU increased 2% to 4% in all three companies in line with the growth recorded in usage minutes.
“Voice is taking a backseat to non-voice, parallel to other developed countries. This trend should persist to a saturated level, where voice usage would hit its floor – as observed in the fixed line segment – within the next two to three years,” it said.
AmResearch said all three mobile companies were recording significant growth in broadband usage, with Celcom Axiata Bhd leading with more than 50% market share followed by Maxis (35%) and DiGi (15%).
The research house said the telecommunications sector was still undervalued, with enterprise value to earnings before interest, tax, depreciation and amortisation (EV/EBITDA) ranging between 5.42 times and 8.11 times. It said regional peers were valued at an EV/EBITDA of at least 9 times.
An analyst said the possible slowdown in the second half could lead to a cut in consumer spending.
However, the analyst said he was still confident about the industry’s outlook given the number of new mobile devices being introduced into the market.
He expects non-voice revenues from wireless broadband and data value-added services, including mobile Internet, messaging and content services, to drive growth for telcos moving forward.
The analyst said his top pick was Axiata Group Bhd as it “has a good regional story with presence in 10 countries and good-performing assets in Indonesia, Sri Lanka and Bangladesh.”
fr:biz.thestar.com.my/news/story.asp?file=/2010/9/9/business/6997082&sec=business
Maxis and DiGi to launch iPhone 4 packages
PETALING JAYA: The battle is on!
Maxis Bhd will be launching the iPhone 4 at midnight while DiGi.Com Bhd will announce its price packages hours ahead of the former.
Maxis is all set to launch the iPhone on Sept 24, 12am and had disclosed its price packages two days ago.
However, Maxis will not be hogging all the limelight.
DiGi has also been sending out press invites for an event to announce its iDiGi plans for the much anticipated iPhone 4 at 6pm today, just before the grand launch from Maxis.
These developments will definitely spice up the local smartphone scene as consumers await manoeuvres from DiGi given that Maxis had already released their pricing.
Industry observers expect DiGi and Maxis to go head-to-head and there could still be surprises to come prior to the official announcement.
“This is not surprising. Some people are already speculating that DiGi could beat Maxis to the launch by several hours,” an observer said.
Maxis chief executive officer Sandip Das will be at the launch while DiGi head of marketing Albern Murty will be announcing iDiGi plans for iPhone 4.
Both DiGi and Maxis have been accepting pre-orders from customers.
Maxis has also introduced contract upgrades which would allow existing customers on a contract to purchase a new iPhone while retaining their existing mobile number.
DiGi is expected to announce its price plan today while the launch cum roadshow would kick-start on Saturday to promote its latest offering.
Subsequently, without disclosing details, iPhone 4 is expected to be available at DiGi stores and the roadshow this weekend, a source said.
Although there are no details from the DiGi side as yet, analysts expect DiGi to live up to its reputation to be innovative in their pricing packaging and marketing.
Sept 24 is believed to be the date given by Apple Inc for iPhone 4 to be launched in Malaysia.
The iPhone 4 will be launched simultaneously or at about the same time in several countries, including China, the Philippines, Thailand and Turkey.
In a press release dated Sept 19, Apple announced that the iPhone 4 will be available to customers in China on Sept 25 at 8 am.
The Philippines is reportedly getting the iPhone 4 on Sept 26 and Turkey on Sept 24.
fr:biz.thestar.com.my/news/story.asp?file=/2010/9/23/business/7085368&sec=business
Maxis and DiGi start selling iPhone 4 in M’sia
By SHARIDAN M. ALI LEONG HUNG YEE
PETALING JAYA: DiGi.Com Bhd and Maxis Bhd will begin selling iPhone 4 from today, with DiGi.Com expecting encouraging iPhone 4 sales based on the 30,000 inquiries received prior to its launch in Malaysia.
“We are thrilled to bring iPhone 4 to our customers where Malaysians are fast becoming regular users of mobile Internet,” said DiGi head of marketing Albern Murty.
“Now, with the phone already available in the market, we expect to see strong uptrend,” told reporters after the launching of iPhone 4 monthly commitment packages yesterday
“All the buzz of the iPhone 4 on many social media sites may also help to promote it,” Murty added.
In a separate event early this morning, Maxis held a grand ceremony to launch the much anticipated iPhone 4 at midnight.
Maxis chief operating officer Jean-Pascal van Overbeke said the company strove to bring the latest technology to its customers.
“Over the past 12 months, Maxis has more than doubled the data-carrying capacity of its mobile network, ensuring a truly optimised iPhone 4 experience with better speed and coverage.”
To date, mobile Internet users registered with DiGi stands at 2.8 millions.
On the iPhone 4 antenna-attenuation issue, Murty said Apple had addressed the problem and DiGi did not expect it to dampen the demand of the phones.
The newly launched iconic phone from Apple Inc features FaceTime for video calling and new retina display – the highest resolution display ever built into a phone – resulting in super crisp text, images and video.
The iPhone 4 also features a five-megapixel camera with LED flash, high-definition video recording and up to 40% longer talk time.
It also comes with iOS 4, the newest version of Apple’s mobile operating system.
fr:biz.thestar.com.my/news/story.asp?file=/2010/9/24/business/7094455&sec=business
DiGi shares up on iPhone 4 buzz
PETALING JAYA: DiGi.Com Bhd’s shares rose in Friday’s early trade, boosted by the hype of its much anticipated iPhone 4 launch today.
In a report by StarBiz today, the telecommunications company said it expects encouraging iPhone 4 sales based on the 30,000 inquiries received prior to its launch in Malaysia.
At 11am, DiGi’s shares rose 14 sen to RM24.04.
Maxis Bhd also launched the much anticipated iPhone 4 at midnight early this morning at a grand ceremony. Its shares were unchanged at RM5.37.
The phone, which is designed and developed by US-based multinational corporation Apple Inc, is the fourth generation of iPhone and successor to the iPhone 3GS.
fr:biz.thestar.com.my/news/story.asp?file=/2010/9/24/business/20100924111408&sec=business
iPhone 4 launched by Maxis, DiGi; but which has better plans for subscribers?
By LEONG HUNG YEE
PETALING JAYA: Hundreds of buyers queued for hours to get their hands on the newly launched iPhone 4 when it was up for grabs last week. Both Maxis Bhd and DiGi.Com Bhd launched Apple’s latest iPhone 4 last week.
Plenty of employees and security personnel were deployed to keep order as long queues formed outside a grand ballroom where Maxis Bhd launched the iPhone 4 at the strike of midnight.
Some arrived up to six hours before the official event, which started at 9pm and by 10.30pm the queue was so long that it almost reach the exit of the mall’s carpark. The foyer was packed to the brim restricting movements at the area.
It was rather a surprise to see a big turnout at both events by Maxis and DiGi given the well publicised antenna attenuation issue.
The iPhone 4 features FaceTime for video calling and new retina display – the highest resolution display ever built in a phone – resulting in super crisp text, images and video.
The iPhone 4 also features a five-megapixel camera with LED flash, high-definition video recording and up to 40% longer talk time.
Jenny Teo, 28, queued for more than eight hours to get hold of the latest gadget. She rushed from her office in KLCC to Mid Valley and got her number around 5pm. Teo could only manage to get her brand new phone after 1am.
She said she did not mind the long wait as long as she could get the latest gadget.
Teo, a first-time iPhone user, said she had been waiting for the phone ever since it was launched in the United States in the middle of the year.
Teo said she was attracted more by the “cool” aura that iPhones conveyed than the technology itself.
Another iPhone 4 owner David Tan said he bought the phone because it was cool. Tan bought the iPhone 4 for his wife but since he had been using it more than her, he planned to get another one.
He admitted that not everyone would want or needed an iPhone 4.
Although no official data were disclosed by both carriers, DiGi had some 30,000 people registering their interest in the product while the response was also said to be strong for Maxis.
The iPhone 4 comes with iOS 4, the newest version of Apple’s mobile operating system.
The two telcos have different pricing strategies to attract subscribers. With the plans revealed, the question is … which one is cheaper and offers better value for money?
Maxis is offering higher handphone subsidies but more expensive plans.
DiGi, on the other hand, has offered minimum subsidies but is offering subscribers much cheaper plans.
Maxis subscriber can get a free iPhone 4 16GB and 32GB if they sign up for the iValue 4 plan (RM375 per month) for a 24-month contract.
For the cheapest monthly commitment of RM100 for iValue 1, subscribers pay RM1,990 for iPhone 4 32GB and RM1,690 for a iPhone 4 16GB on a 12-month contract.
DiGi is currently offering iPhone 4 32GB for RM2,490 and the iPhone 4 16GB for RM2,090, both for 24-month contracts. The cheapest monthly commitment is RM63 and if subscribers opt for auto billing, they need to pay only RM58.
The comparison is only based on face value. Of course, all the plans come with different voice-call minutes, free and bundled Internet.
However, DiGi’s plans are tied with a 24-month contract. Maxis is the choice if subscribers do not wish to be tied for too long.
DiGi is reported to be offering non-contract iPhone 4 next month.
So who is the clear-cut winner?
fr:biz.thestar.com.my/news/story.asp?file=/2010/10/4/business/7147503&sec=business
Higher DiGi profit in Q3
By B.K. SIDHU
Net profit came in at RM289mil on improved data revenue
PETALING JAYA: DiGi.Com Bhd net profit for third quarter ended Sept 30 rose 19% year-on-year to RM289mil on higher data revenue.
The celco, which is in the midst of changing the way it operates and dealing with its customers in its quest to record better growth, posted RM1.35bil in revenue for the quarter.
For the same period a year ago, the revenue was RM1.23bil.
Pre-tax profit for the third quarter was 17% higher at RM390mil compared with RM333mil a year ago.
Earnings per share were 37.2 sen compared with 31.4 sen previously. The celco has announced a 50 sen per share net interim dividend for the quarter.
“We are satisfied with the third-quarter performance. It is a comfortable level of growth that we are seeing.
“In fact, we have been experiencing the momentum of growth for several quarters now but as we go forward, we (need) to work on the way we do our business and deal with our customers,’’ chief executive officer Henrik Clausen told StarBiz.
The need to change the way it operates is to meet the needs of the more demanding consumers.
Clausen said the change would involve tweaking all areas of its operations – customer care, call centres, distribution network and even the build-up of its network.
For the nine months ended Sept 30, DiGi net profit rose to RM845mil from RM753mil while revenue increased to RM3.97bil from RM3.66bil. The revenue reflects a 9% growth, which is above the industry’s average of 5%-6%.
The celco has 8.2 million subscribers as at end-September compared with 7.4 million as at end-December 2009.
There is a decline in average revenue per user to RM53 compared with RM55 in 2009 mainly due to competitive price pressures.
DiGi will invest to improve on its coverage and network capacity to cater to the rising demand for Internet services for small and large screens.
Its capital expenditure this year is expected to be about RM718mil, the same amount invested in 2009.
Clausen said DiGi would continue to leverage on bundling its services and reach out to a wider population in rural and urban ares by increasing its distribution channels.
“The major drivers of growth will be mobile Internet and mobile broadband. We will also defend our voice business.
“There are several areas of growth, one of which is the youth segment which we intend to capitalise on,’’ he said.
fr:biz.thestar.com.my/news/story.asp?file=/2010/10/27/business/7303074&sec=business