Business

Thursday August 6, 2009

REDtone’s WiMAX taking shape well

By B.K. SIDHU


PETALING JAYA: REDtone International Bhd believes it has met the 25% broadband coverage requirement in Sabah and Sarawak and now wants to be considered for a nationwide WiMAX licence similar to that offered to the other three players.

“We have written to the Government and the commission asking for a nationwide licence but have not got any reply from them.

“We are expanding our services in Sabah and Sarawak and want to do more to help achieve the Government’s goal of 50% broadband penetration by end of 2010,’’ chief executive officer Zainal Amanshah told StarBiz yesterday.

He also believed that the playing field was not level, and his rationale for that was: “If the other players could offer services in Sabah and Sarawak, why shouldn’t REDtone be allowed to do so in Peninsular Malaysia?’’

Zainal Amanshah (left) and Mohamad Sharil Tarmizi discussing a point at a REDtone’s WiMAX site in Sabah

Zainal added: “Despite not having a spectrum in Peninsular Malaysia and riding on alternative technologies, we have more than 600 broadband users now. Imagine what we can do if we have a spectrum? Our clients which are MNCs are asking for broadband services.

“We also have a ready customer base of 10,000 – which are our voice subscribers in Peninsular Malaysia – now that we can offer broadband services to. So it really makes logical sense to award us a spectrum and the playing field will be more levelled.’’

REDtone is one of the four players given the spectrum to roll out broadband services on a WiMAX platform. The other three with nationwide licences are Packet One Networks (M) Sdn Bhd, Asiaspace Sdn Bhd and YTL e-Solutions Bhd, and it is unclear whether all have apparatus assignment for East Malaysia. But REDtone can only roll out its services in Sabah and Sarawak.

Whether the Government has enough spectrum to dish out to REDtone remains its prerogative.

But since it has been reported that Information, Communication and Culture Minister Datuk Seri Dr Rais Yatim said the Government planned to issue WiMAX licences to more companies, REDtone believes it has the right to ask for the licence in all fairness.

Rais was quoted as saying that three of the four companies licensed now were not up to the mark in rolling out the broadband services but there were many other companies capable of doing it.

Zainal said REDtone had over 1,000 subscribers in East Malaysia and, even though it is three to four times more costly to build a network there, “we are doing national services by investing another RM20mil this and next year to expand the coverage.”

“So it would not be right to say we are not moving. In fact, acting chairman and chief operating officer of Malaysian Communications and Multimedia Commission Mohamad Sharil Tarmizi and commissioner Datuk Idris Abdullah have gone to the ground to check if we really have a network in Sabah and Sarawak.

“They know the bottlenecks we face in rolling out our services in Sabah and Sarawak,’’ he said.

Having built a network in Kota Kinabalu and Kuching, Zainal said plans were in place to accelerate greater coverage there and soon in other areas, including Sandakan, Tawau, Sibu and Miri.


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