BARCELONA: DiGi.Com Bhd (DiGi), the last of Malaysia’s big three telecommunications (telco) players to receive a third generation (3G) licence, is stepping up its 3G game, with a current emphasis on broadband Internet to catch up with its rivals.
“On the broadband Internet side, we are in the game. We haven’t been in the game because of the licence’s delay, but now, since last year, we have quickly been rolling out our 3G broadband programme,” its CEO Johan Dennelind told The Edge Financial Daily here on the sidelines of the 2010 Mobile World Congress recently, organised by the GSM Association.
“We’re very excited about this year, when it comes to mobile Internet as a whole. Bringing the Internet to the people is really now starting to be a key part of DiGi.”
DiGi only received its 3G licence in 2008, following a transfer from debt-ridden Time dotcom Bhd. The government had previously blocked DiGi’s bid for a licence due to its foreign ownership. DiGi is 49% owned by Norway’s Telenor Group.
In contrast, the local industry’s two largest players — Maxis Bhd and Celcom Axiata Bhd — won their 3G licences back in 2002, and began rolling out their services in 2005.
“On the broadband Internet side, we are in the game. We haven’t been in the game because of the licence’s delay, but now, since last year, we have quickly been rolling out our 3G broadband programme,” its CEO Johan Dennelind told The Edge Financial Daily here on the sidelines of the 2010 Mobile World Congress recently, organised by the GSM Association.
“We’re very excited about this year, when it comes to mobile Internet as a whole. Bringing the Internet to the people is really now starting to be a key part of DiGi.”
DiGi only received its 3G licence in 2008, following a transfer from debt-ridden Time dotcom Bhd. The government had previously blocked DiGi’s bid for a licence due to its foreign ownership. DiGi is 49% owned by Norway’s Telenor Group.
In contrast, the local industry’s two largest players — Maxis Bhd and Celcom Axiata Bhd — won their 3G licences back in 2002, and began rolling out their services in 2005.
Dennelind said DiGi is prepared to invest to beef up its 3G operations, which it began rolling out last year.
The company, which has targeted a capital expenditure of around RM700 million in the financial year ending Dec 31, 2010 (FY10), is expected to spend “more than half” of that amount on its broadband business.
“More than half of that will be spent on 3G broadband platforms and support systems to deliver better speed for less to the people. That’s something we’ll have to re-evaluate as we go along, and are prepared to do more if needed,” he said.
Dennelind said revenues from its mobile broadband are expected to be “visible” in FY10, before showing “significant growth” in FY11, although he declined to provide a specific breakdown of revenue contributions according to business segment.
The company recently reported a 2% year-on-year growth in revenue to RM4.9 billion in FY09, driven by steady demand for its mobile services, although net profit declined marginally to RM1 billion from RM1.14 billion.
Dennelind added, however, the company was more focused on providing value services, rather than emphasising locking in customer growth numbers.
“When we started out last year, we said the only target we have is to make sure we deliver good customer experience, which we have delivered on.
This year, it’s about bringing in the customers, but continuing to deliver that customer experience. Better speed for less is our slogan, and we are determined to deliver that proposition wherever we go.
“It’s all going according to plan, and even better than expected, but we’re going to step up that game a little more,” he said.
He added that while the company is targeting to cover as much of Malaysia as possible with its services, there existed logistical constraints, such as receiving permits to roll out more sites.
He added, however, DiGi expected to provide its broadband Internet services to 50% of Malaysia by year-end.
“As of now, we cover about 30% nationwide in less than a year. We are happy with the progress,” he said. Of its 500,000 3G customer base, about 10% are broadband Internet users, which is more than what it targeted, he added.
He said DiGi remained committed to its “green” agenda, which it instituted internally around two years ago and is now being brought to the wider community.
Being a telco, which consumes a lot of energy in running its network, he said the company has targeted to reduce its carbon footprint by 50%. For example, this could be done by raising the temperature at its 6,000 base stations, to reduce energy consumption from air conditioning.
He also said the company is building a green data centre, a first of its kind in Malaysia, which will be launched soon and will showcase how to do green business.
In an effort to bring the agenda to the communities, Dennelind also said it has launched a “Challenge for change” programme that engages universities here to come up with solutions for a better future.
He said the winners will be announced in March, with the solutions suggested likely able to be used nationwide, within DiGi, and possibly across the Telenor group.
“The green agenda is our anchor corporate responsibility programme. It’s not just a nice-to-have, but it is a need-to-have,” he said.
“It’s all going according to plan, and even better than expected, but we’re going to step up that game a little more,” he said.
He added that while the company is targeting to cover as much of Malaysia as possible with its services, there existed logistical constraints, such as receiving permits to roll out more sites.
He added, however, DiGi expected to provide its broadband Internet services to 50% of Malaysia by year-end.
“As of now, we cover about 30% nationwide in less than a year. We are happy with the progress,” he said. Of its 500,000 3G customer base, about 10% are broadband Internet users, which is more than what it targeted, he added.He said DiGi remained committed to its “green” agenda, which it instituted internally around two years ago and is now being brought to the wider community.
Being a telco, which consumes a lot of energy in running its network, he said the company has targeted to reduce its carbon footprint by 50%. For example, this could be done by raising the temperature at its 6,000 base stations, to reduce energy consumption from air conditioning.
He also said the company is building a green data centre, a first of its kind in Malaysia, which will be launched soon and will showcase how to do green business.
In an effort to bring the agenda to the communities, Dennelind also said it has launched a “Challenge for change” programme that engages universities here to come up with solutions for a better future.
He said the winners will be announced in March, with the solutions suggested likely able to be used nationwide, within DiGi, and possibly across the Telenor group.
“The green agenda is our anchor corporate responsibility programme. It’s not just a nice-to-have, but it is a need-to-have,” he said.
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