YTL launches converged 4G network,Extending Internet coverage; cheapest & survive?

YTL launches converged 4G network

Eva Yeong

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KUALA LUMPUR (Nov 19, 2010): YTL Communications Sdn Bhd today launched the world’s first fully converged 4G mobile Internet service with voice offering the industry’s lowest rates at nine sen a minute, per SMS or per 3MB of data through its pay-as-you-go plan.

The Yes service incorporates fully converged data and voice services, speeds of up to five times faster than 3G, new devices and a unified communication tool. The Yes service was officially launched by Deputy Prime Minister Tan Sri Muhyiddin Yassin (pix above).

YTL Communications executive chairman Tan Sri Dr Francis Yeoh said: “Every Yes account comes with high-speed Internet access and a mobile phone number, making the convergence of data and voice seamless. Our subscribers will have not only high-speed mobile data access but will also enjoy voice, online chat and SMS services that can be accessed from anywhere in the world, through the Internet.”

The Yes plan, which offers nine sen per minute/SMS/3MB is up to three times lower than current prepaid mobile Internet and voice packages, and combines voice, mobile Internet and mobile broadband into an integrated plan so that consumers do not have to pay multiple bills.

YTL Communications chief executive officer Wing K Lee said there is no throttling of data services and there is no wastage as customers are charged only for what they use.

He said there is no contract or lock-in period and there is no expiry for the credits.

Yes also offers up to 30% rebate to power users who consume a high amount of data that reduces the rates to as low as two sen per MB or RM20 per GB.

Yes is also a SIM-less service that comes with a user ID and telephone number that works across all devices, turning any device connected to the Internet into a phone.

During the launch today, YTL Communications and Samsung introduced the first all-4G mobile phone, the Yes Buzz. Other Yes 4G devices include Yes Huddle (4G mobile router), Yes Go (4G USB dongle) and Yes Zoom (4G WiFi router).

At the launch, the Yes 4G covers 65% of the population in Peninsular Malaysia and the company aims to increase the coverage to at least 80% by end- 2011.

Yeoh said that it currently has the licence for only Peninsular Malaysia but will extend the service to Sabah and Sarawak at the right time.

He said Malaysians travelling abroad can also keep in touch with friends and family at home through Yes at local rates without worrying about roaming charges.

He added that it would be giving 300MB of data or 100 minutes of voice calls a month free to every student registered under its Education Partner programme. “I am also pleased to announce that we will be extending the Education Partner programme to all government-sponsored scholars abroad.”

Speaking at the launch, Muhyiddin said the service would help the government improve the household broadband penetration which is currently at 54.5%.

“I am confident that we can reach even more households and help establish high quality and affordable broadband network that will reach 95% of the population by 2020,” he said.

He added that it is critical for the nation to balance market-friendly environment to drive private investments with maintaining its inclusive policy aims, particularly on affordability of access and quality of service in rural area.

YTL Comms extending coverage

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Its Yes service will cover 80% of population by end-2011 from 65% now.

KUALA LUMPUR: YTL Communications Sdn Bhd (YTL Comms) will roll out its 4G mobile Internet-with-voice service, Yes, to cover 80% of the population by end-2011.

YTL Comms, a unit of YTL Power International Bhd, currently has a coverage of 65%. To date, it has invested some RM2.5bil in the Yes 4G infrastructure.

We will extend to Sabah and Sarawak at the right time, executive director Datuk Yeoh Seok Hong told a briefing prior to the service launch by Deputy Prime Minister Tan Sri Muhyiddin Yassin yesterday.

Seok Hong said that with 1,500 base stations, the event marked the largest network ever launched in the country.

We still have 1,000 base stations to be deployed. By then, 80% of the population will be covered, he said.

Chief executive officer Wing K. Lee said Yes was the most affordable 4G mobile Internet-with-voice service in Malaysia.

He said its pay-as-you-go rate of nine sen for 3MB (megabit) data, one-minute call or one short-messaging service was the cheapest in town.

Lee said Yes also offered up to 30% rebate to power users who consume high amounts of data.

The saving starts at 2.5GB (gigabit). The more you use, the less you pay, he said, adding that for usage of 4GB and above, subscribers would get a 30% rebate for every GB used.

Yes subscribers will receive a rebate of RM9 for data usage of 2.5GB while usage of 3GB will get RM23 rebate.

The rebates will reduce Yes’ rates to as low as two sen per MB or RM20 per GB while giving users the power to self-manage by setting temporary data caps.

YTL Comms and Samsung have also introduced the world’s first all-4G mobile phone, Yes Buzz, which will be available next month.

The 4G network will be SIM-less with the 018 prefix.

YTL Comms chairman Tan Sri Francis Yeoh declined to give a specific target of pre-registered subscribers but said the numbers were healthy.

He said the response to the pre-registration had exceeded the group’s expectations by three times.

Yeoh said the group was keen to cooperate with telecommunications service providers in China and other Asian countries to offer 4G services.

Prior to the launch, Yes 4G faced interconnectivity issues with other networks as it was unable to interconnect with the operators. However, the group managed to sign interconnectivity agreements with them yesterday.

We’re now finally interconnected with everybody. We have received full cooperation (from other telcos), Seok Hong said, adding that other operators had welcomed them onboard.

At the launch, Muhyiddin spent five minutes on a video call with Malaysian students in London.

Also present were YTL Corp executive chairman Tan Sri Yeoh Tiong Lay; Information, Communications and Culture Minister Datuk Seri Utama Dr Rais Yatim; Tun Lim Kheng Yaik; and Datuk Seri Chua Soi Lek.

YTL : [Stock Watch] [News]

Can YTL keep promise to be cheapest mobile phone service and survive?

AS expected, the mobile Internet service from YTL Communications Sdn Bhd, Yes, was launched last Friday with much fanfare. Some consumers are excited and rightly so.

YTL is promising the cheapest communication rates in the country with a simple integrated plan that combines voice, SMS and mobile data. There is also talk that YTL could offer Internet protocol TV soon.

YTL’s Yes launch, however, is reminiscent of a couple of other launches of telecommunications-related services in the past by newcomers attempting to break into the scene.

Those following the telco or broadband scene will remember that in the last 10 years or so, there have been many players who have come into the wireless broadband scene.

Alas, despite their ambitious and sometimes colourful ad campaigns, many have not been able to sustain their businesses.

Here are some examples:

EB Capital Bhd launched its wireless broadband service in 2001, got listed in 2005 and went into major financial difficulties by 2008, when it was de-listed.At one point, had more than 1,500 corporate and retail customers for its wireless broadband service and had even done trials on WiMAX.

AtlasOne Sdn Bhd, started by a bunch of former Celcom employees around 2000. It was hailed as the new broadband player in town when it announced that it had garnered a significant amount of funding.At one point, it was said to have raised RM370mil partly from the Islamic Development Bank in Jeddah and partly from Bank Pembangunan Malaysia Bhd. But AtlasOne fizzled out and little has been reported about whether its funders had got their money back.

Time dotCom Bhd (TdC) in 2004 launched its wireless broadband service called Webbit in certain areas of Petaling Jaya. It is believed that TdC had not even managed to move beyond its pilot phase for various reasons, the bulk of them being technical in nature.

MiTV Corp Sdn Bhd, launched in 2005 as the country’s second pay-TV operator, had expected to sign up 100,000 subscribers for the first year.It failed to gain a foothold in the pay-TV market and suspended its new subscription activities in late 2006, only to morph its business model into a cellphone service provider in the country.It changed its name to U Mobile Sdn Bhd, and operates the 018 prefix service and is now running trials on a wireless broadband service. Singapore’s STT Communications Ltd and Multi-Purpose Holdings Bhd have bought stakes in U Mobile.

Green Packet Bhd, the most significant licensed WiMAX player in Malaysia (considering its widest coverage), has so far reported losses over the last few years due to its high capital expenditure in rolling out its network.It promises profitability, at least from an Ebitda (earnings before interest, tax, depreciation and amortisation) calculation, by next year.

No doubt, many players are driven to the industry by the attractive Ebitda margins achieved by the entrenched players, such DiGi.Com, Celcom and Maxis. But those starting afresh face major challenges and this is why many have failed.

First, you are up against some serious competition the incumbents are not about to give up a customer easily and these players have to some extent, sunken costs that put them in a better position to fight on price.

Then there are the huge costs involved in rolling services, on multiple fronts actually. Firstly, there is the network itself, which includes not only the equipment costs but also having pay real estate owners a rental for using their area to put up base stations and other equipment.Then you have to continuously ensure your service is up and running and of a certain quality.

It can cost a lot of money to deploy a sufficient number of technically competent staff.Then there are the other fixed costs such as paying for billing systems, the call centres to handle customer queries and complaints and in some instances, having to pay what is called a device subsidy.This is where players absorb some of the cost of devices sold that use their network so as to entice customers.One of the world’s leading WiMAX players, US-based Clearwire, is still reporting losses.

Still, perhaps a time will come when WiMAX players will achieve healthy Ebitda margins. And perhaps then they will enjoy the kind of investor interest that DiGi.Com and Maxis have today, due to their massive cash flows. Time will tell.

Deputy news editor Risen Jayaseelan says that despite the lack of visibility of profits of WiMAX players, the entry of new service providers can only mean good news to consumers, who should enjoy better rates for their telecommuncation needs.

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