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Cloud Call Center Community Featured Article

[September 26, 2006]

Maxis to invest RM2b on 3G, broadband

(Business Times (Malaysia) Via Thomson Dialog NewsEdge) MALAYSIA'S biggest mobile firm, Maxis Communications Bhd, will spend a total of RM2.2 billion over the next three years to expand its third generation (3G) network and wireless broadband Internet services.


Chief executive officer Datuk Jamaludin Ibrahim said plans are to invest RM1.5 billion for the next three years, starting in 2007, to expand 3G coverage to more than 60 per cent of the population by 2009.

Currently, its 3G services are only available in the Klang Valley, Penang and Johor Baru. So far, RM650 million has been invested on 3G networks.

Maxis also plans to give existing Internet service providers a run for their money, with the launch of its own wireless broadband Internet services for home users.

It will invest RM700 million over the next three years to expand its wireless broadband Internet services - making it available to 60 per cent of Malaysians.

"With household broadband penetration standing at only 13 per cent today and being dominated by one provider, we believe there is room for a second, major national player like Maxis," Jamaludin said at its wireless broadband services launch in Kuala Lumpur yesterday.

Maxis wireless Internet services are currently available in Klang Valley, and will be extended to Penang next month.

Maxis expects a break-even period of about three years.

"We are expecting broadband services to contribute positively to our revenue in 2008, and to our profit in 2009," said Jamaludin.

Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik, officiated the launch.

Maxis aims to make broadband available to three quarters of all households by 2010. At the end of June, there were more than 650,000 broadband subscribers.

Under the country's ICT blueprint, MyICMS 886, the Government aims to have 1.3 million broadband subscribers by the end of this year. This translates into a 22 per cent penetration rate for households.

Although the short-term goal may seem hard to achieve, Dr Lim remains focused on achieving the long-term goals.

He said the Government aims to have five million broadband subscribers by 2010, or 75 per cent of households in the country.

"We do not just set targets, they are meant to be achieved. We've so far been engaged in publicising the blueprint. Now we have gotten down to drafting the action plans," Dr Lim said.

He also believes that the broadband industry will accelerate now that more broadband service providers are appearing.

The wireless broadband services are currently riding on the High Speed Data Packet Access (HSDPA) technology, which is at least three times faster than the speed of 3G.

Moving forward, Maxis hopes to be able to offer broadband services via WiMAX technology. It is one of the 17 companies that submitted bids for the WiMAX spectrums.

Maxis' wireless broadband Internet services currently come in two packages, the Standard and the Premium package. The Standard Package, which costs RM68 a month, includes modem rental and provides users a speed of up to 384 kilobit per second (kbps). The Premium Package (RM98/ month) offers up to 768kbps. There will also be a one time RM100 activation fee and RM88 installation charge.

Although its speed is slower than the average wired broadband speed of 1 megabit per second (Mbps), Maxis' wireless broadband services allow home users to get access to the Internet without the presence of a telephone line - as long as the home is within the radius of Maxis high speed 3G coverage.

"All they need to do is to connect the modem to the computer or notebook, and after three minutes, you are connected," Maxis senior general manager Dr Nikolai Dobberstein said.

The company also plans to upgrade its entire 3G network to HSDPA by early 2007. Jamaludin said that the cost of using broadband may be lower in six months.

Copyright 2006 The New Straits Times Press (Malaysia) Berhad. Source: Financial Times Information Limited - Asia Intelligence Wire

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