Telecommunication Issue #11

Axiata stresses new identity; cuts IDD rates

Malaysian news source Bernama is reporting that Malaysian telecoms group Axiata, formerly TM International (TMI), plans to embrace its recent name change, and will introduce the new brand in the consumer space. To that end, Axiata has announced that, whilst it has not renamed its mobile subsidiaries, it has refreshed their respective logos to include the Axiata prism. Malaysia’s Celcom, Sri Lanka’s Dialog Telekom, Excelcomindo (XL) of Indonesia and Telekom Malaysia International Cambodia (TMIC) have all had their logos updated. In addition, Axiata has announced that it is cutting IDD rates across its network in the region by up to 50%, with the offer applying to calls made to Singapore, India, Bangladesh, Cambodia, Sri Lanka and Indonesia.

StarHub enlists in APG cable consortium

Singaporean telecoms group StarHub joined forces with the consortium set up to develop the Asia-Pacific Gateway (APG) submarine cable system that will link the Asia-Pacific region. Once completed, APG will span 8,000km linking eight countries, namely Malaysia, Singapore, Thailand, Vietnam, Hong Kong, the Philippines, Taiwan, China, Japan and South Korea. The link will utilise Dense Wavelength Division Multiplexing (DWDM) technology with a minimum design capacity of 4Tbps of data bandwidth. The other carriers in the APG consortium are Chunghwa Telecom (Taiwan), China Telecom (China), China Unicom (China), KT Corporation (South Korea), NTT Communications (Japan), PLDT (Philippines), Telekom Malaysia (Malaysia) and VNPT (Vietnam).

TM partners with Verizon Business to launch IP node

Malaysian incumbent Telekom Malaysia (TM) has launched a new Internet Protocol (IP) node in partnership with US-based Verizon Business, Bernama reports. TM expects the node, christened Platinum Transit IP, to position Malaysia as an internet hub for the Asia Pacific region, and the launch comes just four months after the two companies signed a memorandum of understanding to develop the hub. The operator expects the new infrastructure to provide faster connections among local ISPs, lower broadband costs and more reliable international connections. Commenting on the launch Datuk Zamzamzairani Mohd Isa, TM’s CEO, said: ‘The IP node will enable TM to offer high-end network services at competitive price, which will enhance its ability to offer high-quality IP-based services to local service providers and hence companies with operations in Malaysia.’

TIME dotCom focusing on wholesale and corporate data sectors

Malaysian news source Business Times is reporting that fixed line and broadband operator TIME dotCom (TdC) is planning to focus its attention on its data service offerings directed at the wholesale, enterprise and corporate market segments. It is understood that TdC plans to concentrate on these specific areas as it believes there is stronger growth potential. Commenting on the strategy Afzal Abdul Rahim, TdC’s CEO, said: ‘The focus on data service offerings will allow us to optimise our existing infrastructure and take advantage of the many opportunities currently available in the market place.’ The announcement followed the release of the operator’s financial results for the three months ended 31 March 2009, with TdC posting a 12.1% increase in revenue to MYR74 million (USD20.5 million). Net loss meanwhile narrowed by 61.7% at MYR34.7 million for the quarter, compared to MYR56 million in the same period last year. TdC attributed the improved performance to higher data revenues helping to offset the decline in voice revenue, while the reduction in losses was a result of lower depreciation and finance charges.

SE-ME-WE 3 CABLE FAILURE AT 282 KM away from Deep Water Bay CLS (HONG KONG)

Telecommunication Issue #10

XL claims a ‘first’ with ‘funbook’ mobile media service

Indonesian mobile operator Excelcomindo Pratama (XL) has launched a new mobile social networking application ‘XL funbook’, claiming a first for Indonesia. The operator’s new service allows users to share content with a variety of third-party social networking and web sites including Facebook, Friendster, Photobucket and many others directly from their mobile handsets or through XL funbook’s web site. The mobile client supports a number of operating systems such as J2ME, Symbian, and Windows Mobile and currently supports over 500 phone models from the likes of Nokia, SonyEriscsson, HTC, and Samsung.

Bayanat Al-Oula extends WiMAX with Samsung

Saudi mobile operator Mobily has announced that its broadband arm, Bayanat Al-Oula, has contracted Samsung Electronics to expand its WiMAX operations. Under the terms of the USD100 million deal Samsung will extend Bayanat’s WiMAX coverage from four cities to 20 by the end of 2009. Samsung will install 1,400 base stations to increase Bayanat's overall total to 1,800 nationwide. Mobily CEO, Khaled al-Kaf, said, ‘Bayanat's existing WiMAX network currently serves 30,000 subscribers. With this expansion, we will be able to increase Bayanat's WiMAX capacity by at least three times.’

Telecommunication Issue #9

1. TM’S FY2008 REVENUE UP 4.6% to RM8.67 BILLION

Telekom Malaysia Berhad (TM) finished the year 2008 with an improved performance driven by growth in broadband and data. For the financial year ended 31 December 2008, TM posted a revenue of RM8,674.9 million, a growth of 4.6% from RM8,296.0 million recorded in 2007. The Company continued to win new customers and maintained leadership position in the broadband segment registering 1.6 million customers as at end of 2008, a growth of 26.7% from 1.2 million customers a year ago.
TM also announced a proposed final gross dividend of 14.25 sen per share less tax of 25%, amounting to RM382 million. Combined with the interim dividend of 12 sen per share less tax of 26% paid in September 2008, the total dividend in respect of financial year 2008 is 26.25 sen per share, which translates into a total dividend payout of RM700 million

2. XL swings into loss despite strong subscriber growth

Indonesia’s third largest mobile operator by subscribers, PT Excelcomindo Pratama (XL), reported full-year losses of IDR15 billion (USD1.26 million) for 2008 despite increasing its subscriber base by a healthy 68% to 26 million, a fact it attributes to higher interest rates on loans it assumed and foreign-exchange losses. The company posted year-on-year revenue growth of 45% to IDR12.2 trillion, said XL president Hasnul Suhaimi, ‘driven by a 705% increase in our total [voice] minutes to 54.9 billion minutes, and 68% growth in our subscriber base.’ He added that the firm’s strategy of offering a high quality service at lower prices ‘helped us gain about 5% market share in terms of revenue’. Earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed 46% y-o-y to IDR5.13 trillion last year, while the EBITDA margin remained stable at 42%. Hasnul said that XL booked higher than expected interest expenses in FY2008, relating to additional loans it took out. Excluding the impact of FOREX and other losses, the operator would have booked normalised net income of IDR348 billion, he added.

In 2008 Excelcomindo invested heavily in its networks and services, Hasnul noted, upgrading both its hardware and software platforms to improve subscriber and traffic capacity levels. XL deployed an additional 5,572 base transceiver stations (BTSs) last year, at a total cost of USD1.2 billion, to end the year with a total of 16,729 BTSs. The CAPEX forecast for 2009 is a less ambitious USD600-USD700 million, which will be targeted at selected investment projects, he said.

3. Saudi cellco sees stronger than expected sales

Zain Saudi Arabia, the cellular operator which began commercial operations last August, has reported revenues of SAR505.2 million (USD135 million) for the 120-day period from its launch to the end of December, exceeding its own revenue targets by 27%. Active customers totalled 2.01 million at the end of 2008, which the firm says represents a 7% share of all Saudi users. Gross profit for the period stood at SAR16 million, though hefty start-up and initial operating costs left the company facing a net loss of SAR2.28 billion. Zain competes with the Kingdom’s two established cellular providers, STC and Mobily.

SUBMARINE CABLE CUT

1. APCN2 System: Cable cut at Segment 1 between Kuantan (Malaysia) and Katong (Singapore)Cable Station at 7 KM from repearter 1.
2. APCN2 System: Cable Shunt Fault at Segment 7 between Shantau and Tanshui Cable Station.