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REDtone Banks on Mobile Virtual Network Operator to Boost Revenue

Posted on: Monday, 14 November 2005, 21:00 CST

REDTONE International Bhd, which did not bid for a 3G (third- generation)

licence, plans to focus on operating as a mobile virtual network operator

(MVNO) to increase its revenue, especially in the local market.

REDtone holds a 35 per cent market share in the local discounted call

market.

It had previously said it was exploring the possibility of jointly

bidding for a 3G licence with a telecommunications operator.

The company said not being a 3G infrastructure owner will not hamper

its growth as it has extensive capabilities and in-depth knowledge of the

industry.

This knowledge will enable it to expand into providing mobile services

to complement its existing range of innovative call packages for multiple

market segments.

"It is about giving unique value-added services to our customers, and

knowing how to develop and match different contents and applications for

the various niche markets with the aim of helping corporations and

individuals enhance their business and personal productivity.

"Our inherent strength in research and development where we have

invested over RM20 million since we started gives us the edge to do

this," group managing director Wei Chuan Beng said in a statement

yesterday.

REDtone intends to offer a full suite of mobile services from voice to

data and content like full fledged telcos, in partnership with existing

mobile operators and using their infrastructure.

The transformation to MVNO is a natural progression for REDtone as it

aims to be on par with other major telcos and seeks to build its presence

in the region.

Wei said besides overseas expansion, the mobile sector presents new

growth potential and would help drive the company's growth in addition to

elevating its standing beyond Malaysia.

The first in a series of mobile services, the travel phone for

travellers which boasts a 50 per cent savings on roaming charges and its

recently launched 015 broadband phone service are expected to contribute

to REDtone's revenue and profit in the coming years.

REDtone's overseas ventures are also doing well with its Pakistan

operations recording an average monthly revenue of RM3 million, and its

discounted call services for both corporate customers and individuals to

roll out in China by the first quarter of 2006.

Source: Business Times; Kuala Lumpur

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