HI there,

After the announcement that Intel had purchased a substantial stake in GPacket, it doesn't seems like the stock manage to attract any upswing to its price. With its plan to roll out wimax services in M'sia by June and *fingers crossed* no news of it postponing the plan either. I'm wondering if any body had bought the share and take a gamble on it?

It just amazes me that the share price did not move up by much after the announcement. Did you guys saw something fishy that I don't?

cherroy,

saw the newspaper clip that goldman sachs had reduced their holdings to a mere 5% but another Datuk from some other company is snaping up the shares they sold. But I guess Intel would only invest rm50 million if they foresee a substantial return from it and the reason its financial result is in the red is because of the initial investment in rolling out the wimax service.

dreamer101,

have friends working in maxis and they said the internet service based on 3g connection sucks big time and connection speed + coverage is a main issue here, but i'm not sure about the speed of the 3g services provided by celcom though. developed countries only started using the wimax technology recently so I would not say it will be profitable for sure but gpacket claimed its wimax coverage can cover up to 80% of the population base (note population base & not geographical area) and I believe going wireless is cheaper than laying down cables for a broadband (m referring to TM) in the long run. GPacket even hired former TM streamyx's division president as its staff overseeing the wimax department, mind you it is that guy who laid the foundation for tm's successes in streamyx (in term of marketing & sales).

I'm not sure bout the price and I can see why you asked so with celcom & tm bundling their services together but with wimax tech based on a an enhanced version of wifi frequency, I don't expect any problem with speed. :-) I myself is no tech genius though. lol.

To sum it all up, if the statistics provided by gov is true, broadband penetration is sitll less than 20% (out of all the internet users) so I see potentials here.

Besides the divestment by goldman sachs & its financial standing in red, any other news worth to be noted huh?

thanks for participating in the discussions.

to be frank, I'm taking a gamble with this stock, high risk high gain you see =) this is what tech stocks are all about, bout still, it's worth digesting all the risks surrounding it.

dreamer,

what makes you think it won't be profitable then? I'm sure the financial analyst hired by them would have done the required calculations and risk assesment as we are talking now. You're right, either they price their service at rm99 or lower or they would not be able to compete with the other 3 giants in the industry. But by the time they reveal their price, I believe the share prices would reflect the actual value of it already, just thought of speculating on the potential movement of the price before hand


cheers guys

1. WiMAX has clear advantage over 3G because the cost of implementation is relatively inexpensive over 3G. Therefore, WiMAX provider would able to provide affordable services to subscribers.

2. WiMAX covers huge distances compared to 3G.

3. There is a flaw in the argument itself, because 3G is originally intended as mobile phone technology targeting cellphones, PDA and handheld devices to access Internet. However, there are also demands from mobile users (including laptop users) to access Internet using 3G network. So, crossover device like 3G data card is rolled out for users to surf internet using 3G network. By right WiMAX should be compared against WiFi not 3G.

4. Anyone here surfing Internet using 3G network on laptop? well, not much because you need a crossover device plus expensive monthly charges and within limited 3G coverage.

5. To TS, there is potential for WiMAX in Malaysia or else you wont see 1P investing in WiMAX infrastructure, followed by other mobile service operators. Also take note there are also a lot of uncertainties in telecommunication arena.

I m not into these, but those interested should read more.