Business

Saturday November 7, 2009

P1 to set aside up to RM300mil for capex

By DANNY YAP


PETALING JAYA: Packet One Networks (Malaysia) Sdn Bhd (P1) plans to allocate RM200mil to RM300mil for capital expenditure (capex) next year to expand its coverage, which will include Sabah and Sarawak, chief executive officer Michael Lai said.

He said P1 had spent RM300mil over the past 13 months to roll out its WiMAX (Worldwide Interoperability for Microwave Access) programme and was on track to achieve network coverage of 45% of Peninsular Malaysia’s population by 2010, and 65% by 2012. Currently, P1 has 35% network coverage in the peninsula.

Lai said to achieve network coverage of 65% or more, the company would need to invest between RM1bil and RM1.5bil.

“The target is to work within RM1bil to cover 65% of the population but ideally, we want to reach 75% to 85% coverage of the population, then top up with RM500mil investment, if needed,” he said at a media briefing yesterday.

Lai said the company would have no problem raising funds through various channels, if the need arose.

He also said the company expected to break even on its investment outlay for WiMAX by end-2010.

On P1’s expansion plan, Lai said it would focus on Malaysia and the surrounding region first before looking globally.

He said the company had recently secured a licence to deploy WiMAX throughout Singapore and a commercial rollout was likely at the end of next year.

Lai said P1 was awaiting confirmation from the WiMAX Forum of its appointment to its board of directors. WiMAX Forum is an industry-led organisation formed to certify and promote broadband wireless products based on WiMAX. He said P1’s appointment to the WiMAX Forum board meant that for the first time, Malaysia could play a critical role in shaping the future of fourth-generation wireless broadband.       

He claimed that no other telecommunications company in Malaysia has yet to be given such an important role within the telecoms world.

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