U Mobile Sdn Bhd plans to invest RM1.5 billion to expand its network via the roll-out of 2,000 new 3G and 4G long term evolution (LTE) sites.
Chief executive officer Wong Heang Tuck said following the establishment of these sites, the company aims to grow its customer base to seven million nationwide from five million currently.
“The customer growth will be driven by the increased network capacity and the provision of superior high-speed 3G and 4G LTE mobile experience,” Wong said at a press conference here today.
The expansion, targeted for completion by end-2015, is expected to enhance U Mobile’s quality of service through wider network coverage while delivering more innovative products and services.
“We want to aggressively increase our market share and achieve the target of 10%, and record 50% increase in revenue once the sites are fully completed.”
The new network rollout will cover key cities and strategic areas within Malaysia including Kuala Lumpur, Putrajaya, Selangor, Seremban, Port Dickson, Nilai, Ipoh, Lumut, Penang, Johor Baru, Muar, Kluang, Segamat and Batu Pahat.
This expansion will also ensure better network performance that is geared towards a new generation of consumers who are data-hungry and highly connected.
Reuters reported that U Mobile is planning an initial public offering (IPO). But Wong declined to say how much the company planned to raise or when it would launch the IPO.
Asked about the offering, Wong said: “It depends on where the market is at that point in time… but we are on our way there.”
Privately-owned U Mobile is Malaysia’s fourth largest mobile phone operator by subscriber numbers. Its stakeholders include Malaysian billionaire Tan Sri Vincent Tan and Singapore Technologies Telemedia.
Wong said U Mobile expects its revenue to grow 50% and market share to rise to 10% in 2015 from around 6-7% now after the expansion, which will see it add 2,000 new sites to the 4,400 already operating.
The company is planning to expand its network as bigger rivals such as Maxis and Axiata face declining profits mainly due to intense competition. In the second quarter, Maxis said its net profit fell 15.5% while Axiata posted a 30.5% drop.
Wong said U Mobile’s strategy of targeting younger users would help it remain competitive. “Our value proposition is that we are in the right market segment, especially where most of our subscribers are young. This is the growing market segment.”
Read more: http://www.therakyatpost.com/business/2014/09/09/rm1-5b-expansion-u-mobile/#ixzz3CstJUTAu
No comments:
Post a Comment