Broadband fees unlikely to fall just yet
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IT WILL be a crowded market for Internet service providers this year but consumers shouldn´t expect prices to fall.
Although competition will be tougher, Packet One Networks (Malaysia) Sdn Bhd (P1) believes the broadband market is big enough for all currently.
"I don´t think there´s a need for a price war. The market is still quite open, relatively untapped, and plenty of opportunities out there," chief executive officer Michael Lai said in a media briefing in Petaling Jaya yesterday.
Today, P1 has more than 100,000 subscribers, which is the highest among Malaysian peers using WiMAX technology like YTL Group, Redtone International and Asiaspace.
However, P1 is also competing with bigger rivals like Telekom Malaysia Bhd, mobile operators Maxis Bhd, Celcom Axiata Bhd and DiGi.Com Bhd.
With YTL slated to officially launch its wireless broadband services by the end of this year, and more aggressive broadband push by giants TM and other mobile operators, P1 expects margins to come under pressure this year.
"We see challenges in margins, but at the end of the day, whether or not your margin can be maintained is dependent on two things, revenue and cost. So, the key thing for us now is to increase our sales, and manage our cost properly," said Lai.
Still, P1 remains positive on the industry and its prospects. "This year, we aim to at least double our last year´s subscriber base," he said.
The company has invested some RM400 million to roll out its wireless network since its launch in August 2008 and it will spend another RM200 million this year.
It plans to go to East Malaysia in the second half of the year.
P1 is planning to introduce more devices to the market this year, including the much-anticipated netbook that uses WiMAX, developed by P1 and its partners.
He did not disclose the prices and specifications of the netbook, but promised that prices will be "attractive" for customers.
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