DiGi.Com wants more spectrum in the lower bands

PETALING JAYA: DiGi.Com Bhd
which has allocated RM800mil in capital expenditure for 2012 and was
assigned a block of the 2.6G spectrum, is keen to get a slice of the
lower bands of spectrum, especially in the 800Mhz and 900Mhz band that
are necessary for it to provide “better user experience.”
“All this is to create the right experience for the consumers.
“We
have spectrum but we would like to add more to provide enough capacity.
The 2.6G spectrum would be good for high speed connections but we need
spectrum in the lower range too.
“Since we are expanding our network, we would like adequate amount of spectrum in the right bands,” DiGi chief executive officer Henrik Clausen said in an interview recently.
For
the 2.6G, DiGi has been allocated 2x10Mhz (or 20Mhz) of spectrum which
can be used by Jan 1, 2013 provided its business plan was approved by
the industry regulator.
This is not the first time the company is
asking for more spectrum but Clausen said it was a “very cost effective
way to provide broader coverage indoor and for 3G.”
The company
is on a three-year transformation journey which started last year to
modernise its network to cater for more capacity and coverage.
The
transformation is necessary as it is moving from a basic voice celco to
one that offers Internet. Data will be the next growth driver for DiGi
and other celcos and while speed and capacity is crucial, providing the
“customer experience” would differentiate one service provider from the
other.
Clausen said the planning for the network began last year
and the equipment swapping began this year and would be completed by end
of 2012.
“By end 2012, we would have swapped 5,000 sites with
new equipment and that in itself will give users a better experience
when they use their devices to access Internet,” he said.
He added that by then its 3G coverage would have increased to 70% from 52% presently.”
“Customer
expectation is increasing by the day. Unless we embark on the
transformation we cannot become the best. We want to provide Internet to
all and we have to transform the company and make radical changes to
our network, product and process so that we can give the consumers what
they want.”
The big change to its network would happen next year but the full impact of the transformation could be in 2013, he said.
On
the capex, Clausen said the company had previously allocated RM650mil
for this year but has only spend RM550mil and the additional RM100mil
amount would flow into next year, hence the higher allocation for 2012.
The
capex is self-funded as the company has accumulated RM1.7bil in
operating free cash flow as at third quarter of financial year 2011. It
posted a net profit of RM860mil for the first nine months of current
financial year and its share price was last traded at RM3.62.