REDtone International Bhd will launch WiMAX services for the corporate market in peninsular Malaysia next year (2011) pending the apparatus assignment (AA) approval of the 2.6GHz band from Malaysian Communications and Multimedia Commission (MCMC).
It is pending MCMC approval and also subject to availability of [network] equipments. It has submitted a detailed business plan to MCMC and has gotten feedback from the commission. It is now in the midst of tweaking the details of the plan and hopes to conclude the exercise by early next year (2011).
REDtone intends to stay out of the consumer market in peninsular Malaysia as it is “highly competitive” and will build upon its expertise in the corporate market. As for network investment, the group did not foresee a significant investment as the core network has been built over the years.
The award of 20MHz on the 2.6 GHz frequency band bodes well for the group that had been running losses in its WiMAX operations being the sole WiMAX operator in East Malaysia.
For the financial year ended 31 May 2010, the group’s net losses narrowed to RM4.99 million from RM6.95 million a year ago. Revenue rose 3.5% year-on-year to RM82.21 million from RM79.42 million.
The losses were attributed to bad debts provision and write-off from associate company Ebtech and the loss-making operation in East Malaysia where the infrastructure cost is three times higher, coupled with a substantially smaller market. Expenses were also incurred for a rights issue to raise RM40.6 million in August and further seeding in the group’s Internet Protocol television (IPTV) business.
Redtone still has a healthy cash balance of RM48.95 million. Its total borrowings and overdrafts stood at RM12.53 million, which puts the group in a net cash position of RM36.42 million.
For long-term growth will be the broadband and data segment together with China operations in prepaid discounted call services. The group has a target to double the topline contribution from broadband and data space to 50% from the current 25% within five years.
Meanwhile, China has seen robust growth by contributing about 16.4% of revenue or RM13.46 million for FY2010 compared with RM7.36 million from the last financial year ended 31 May, 2009. Its call services now have around one million active users in Shanghai. The China operations offer the best profit margin for this financial year.
As for new areas, the group plans to offer niche Malay and Indian contents on its Chinese-centric IPTV that was launched early 2010.
It is pending MCMC approval and also subject to availability of [network] equipments. It has submitted a detailed business plan to MCMC and has gotten feedback from the commission. It is now in the midst of tweaking the details of the plan and hopes to conclude the exercise by early next year (2011).
REDtone intends to stay out of the consumer market in peninsular Malaysia as it is “highly competitive” and will build upon its expertise in the corporate market. As for network investment, the group did not foresee a significant investment as the core network has been built over the years.
The award of 20MHz on the 2.6 GHz frequency band bodes well for the group that had been running losses in its WiMAX operations being the sole WiMAX operator in East Malaysia.
For the financial year ended 31 May 2010, the group’s net losses narrowed to RM4.99 million from RM6.95 million a year ago. Revenue rose 3.5% year-on-year to RM82.21 million from RM79.42 million.
The losses were attributed to bad debts provision and write-off from associate company Ebtech and the loss-making operation in East Malaysia where the infrastructure cost is three times higher, coupled with a substantially smaller market. Expenses were also incurred for a rights issue to raise RM40.6 million in August and further seeding in the group’s Internet Protocol television (IPTV) business.
Redtone still has a healthy cash balance of RM48.95 million. Its total borrowings and overdrafts stood at RM12.53 million, which puts the group in a net cash position of RM36.42 million.
For long-term growth will be the broadband and data segment together with China operations in prepaid discounted call services. The group has a target to double the topline contribution from broadband and data space to 50% from the current 25% within five years.
Meanwhile, China has seen robust growth by contributing about 16.4% of revenue or RM13.46 million for FY2010 compared with RM7.36 million from the last financial year ended 31 May, 2009. Its call services now have around one million active users in Shanghai. The China operations offer the best profit margin for this financial year.
As for new areas, the group plans to offer niche Malay and Indian contents on its Chinese-centric IPTV that was launched early 2010.
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