DiGi: 30pc of capital spending will go to 3G
By Goh Thean Eu
Published: 2008/12/22
http://www.btimes.com.my/Current_News/BTIM...icle/print_html
The mobile operator 'will not rush' into launching the 3G services until it has a 'solid go-to-market strategy,' says its chief executive officer Johan Dennelind

MOBILE operator DiGi.Com Bhd (6947) plans to invest over RM300 million on high-speed mobile access next year, as it enters the third-generation (3G) battlefield for the first time.

"Our guidance for 2009's capital expenditure is RM1.1 billion to RM1.3 billion, of which 30 per cent will go to 3G networks," chief executive officer Johan Dennelind told Business Times in Kuala Lumpur last week.

The company, which lags rivals Maxis Communications Bhd and Celcom (Malaysia) Bhd in terms of 3G network coverage, hopes to blanket more than half of the population within two and a half years.

"We hope do it within that time frame ... For a start, you can be rest assured that we will be in major areas as fast as possible," said Dennelind.

He believes the services will be able to meet the expectations of "internet-starved, bandwidth-hungry" consumers, without compromising on its voice quality.

Currently, 3G operators are not meeting their customers' expectations because calls and data rides on the same spectrum, raising the risk of drop calls, he said.

Dennelind believes that by managing the capacity "cleverly", the issue can be solved. He did not elaborate.

"Best value for Internet is quite interesting. Because, best value doesn't always have to be the cheapest everywhere. The quality and the speed plays a big role. So we have to be a bit smart on the way to the market," he said.

Since 2005, DiGi has been competing against rivals Maxis and Celcom in an "uneven level playing field", as it could not offer more advanced services like what its rivals do. The "gap" has been removed since it bought the spectrum rights from Time dotCom Bhd in 2007.

With 3G, DiGi will be able to offer new services like video calls as well as broadband services - allowing customers to surf the Internet with their handphones, as well as providing Internet access to homes without a fixed-line.

Since DiGi is late in the mobile broadband market, it will take the company more than three years to gain the top spot or to secure one-third of the market.