Showing posts with label GPacket. Show all posts
If P1 being sold at RM1.5 billion, GPACKET shares held by OSKVI worth more than RM 100 million.
Green Packet (GPACKET) Managing Director and Chief Executive Officer Puan Chan Cheong said that the company will consider selling the subsidiary- Packet One Networks (P1) only if selling price higher than USD $450 million (nearly RM 1.5 billion).
Puan told Nan Yang Siang Pau during the telephone interview, it will announce in two weeks time if company successfully reach a sale agreement of P1 with any interested party.
Based on Green Packet having 55% shares of P1 and OSKVI having 17.63% mother shares (total 685.7 mil shares) and 11.89% warrant shares (total 197.6 mil shares) of Green Packet.
If Green Packet sold the P1 at RM 1.5 billion, then Green Packet will get RM825 mil for selling its 55% shares of P1. The GPAVKET shares held by OSKVI is worth more than RM100 million.
Scenario A
No conversion of GPACKET warrants to mother shares. If all proceeds from sale of P1 return back to GPACKET shareholders, then the 17.63% GPACKET held by OSKVI is worth about RM 145 million
Scenario B
Assuming if P1 warrants are fully convert to mother shares, OSKVI need to pay RM 22 million for its 11.89% of warrant shares conversion. This happen if GPACKET mother share price is higher than the warrant conversion price RM0.945.
After conversion, OSKVI is holding 16.37% of enlarged 883.3 million shares of GPACKET. If all proceed from sale of P1 return back to GPACKET shareholder, then the 16.73%of enlarged GPACKET held by OSKVI is worth about RM 135 million.
Above is just a simple calculation for illustration purpose. Even if P1 being sold it does not mean that GPACKET will return the money to its shareholder.
Both GPACKET and OSKVI warrants will be expired within 2 years time. I believe both companies looking a way to unlock the value of P1 assets.
Puan told Nan Yang Siang Pau during the telephone interview, it will announce in two weeks time if company successfully reach a sale agreement of P1 with any interested party.
Based on Green Packet having 55% shares of P1 and OSKVI having 17.63% mother shares (total 685.7 mil shares) and 11.89% warrant shares (total 197.6 mil shares) of Green Packet.
If Green Packet sold the P1 at RM 1.5 billion, then Green Packet will get RM825 mil for selling its 55% shares of P1. The GPAVKET shares held by OSKVI is worth more than RM100 million.
Scenario A
No conversion of GPACKET warrants to mother shares. If all proceeds from sale of P1 return back to GPACKET shareholders, then the 17.63% GPACKET held by OSKVI is worth about RM 145 million
Scenario B
Assuming if P1 warrants are fully convert to mother shares, OSKVI need to pay RM 22 million for its 11.89% of warrant shares conversion. This happen if GPACKET mother share price is higher than the warrant conversion price RM0.945.
After conversion, OSKVI is holding 16.37% of enlarged 883.3 million shares of GPACKET. If all proceed from sale of P1 return back to GPACKET shareholder, then the 16.73%of enlarged GPACKET held by OSKVI is worth about RM 135 million.
Above is just a simple calculation for illustration purpose. Even if P1 being sold it does not mean that GPACKET will return the money to its shareholder.
Both GPACKET and OSKVI warrants will be expired within 2 years time. I believe both companies looking a way to unlock the value of P1 assets.
MCMC’s eight get LTE allocation for broadband speeds in excess of 100Mbps
PETALING JAYA: Eight companies have been allowed access to the much-anticipated 2,600 MHz spectrum band which allows mobile phone users to enjoy long-term evolution (LTE) or 4G services with broadband speeds in excess of 100Mbps.
The eight are Celcom Axiata Bhd, DiGi Telecommunications Sdn Bhd, Maxis Broadband Sdn Bhd, Packet One Networks (M) Sdn Bhd, Puncak Semangat Sdn Bhd, REDtone Marketing Sdn Bhd, U Mobile Sdn Bhd and YTL Communications Sdn Bhd.
Malaysian Communications and Multimedia Commission (MCMC), which announced the allocation to the eight companies yesterday, said in a statement that existing service providers might use the 2,600 MHz spectrum band to further expand and enhance the capacity of their mobile broadband networks to meet increasing consumer demands.
The technology promises many new services to consumers such as high definition video streaming, enhanced user experience on real-time applications and better connectivity for mobile and consumer electronic devices.
The spectrum allocation will allow users of LTE, which is the next leap in mobile broadband technology after 3G, to boost Internet surfing speeds on the next generation smartphones such as the iPhone 5 and the Samsung Galaxy S3 LTE.
Telcos namely Celcom, DiGi and Maxis are also touting LTE to be the next driver of data demand as users upgrade their mobile phones and sign fresh contracts with them when they purchase new smartphones for faster internet speeds.
MCMC said since the introduction of 3G and WiMAX technology in Malaysia, the demand for better quality mobile broadband service had intensified. “This allocation is in line with similar initiatives in developed countries like the United States and some European states. “Market readiness for 4G technology is also reaching its maturity as increasingly, many of the latest devices in the global market support the use of this technology, hence the economies of scale will bring much benefit to the country,” it said.
MCMC said service providers were expected to enter into smart partnerships and sharing agreements between them which included spectrum and radio access network sharing in order to utilise larger bandwidths, lower the cost of rollout and offer better LTE-experience and affordability to consumers.
“Smart partnerships mean shared infrastructure, thus reducing the duplication of physical transmission towers,” MCMC said.
LTE wholesale Mobile Virtual Network Service would also be offered to other service providers that did not get access to the allocation, MCMC added. MCMC chairman Datuk Mohamed Sharil Tarmizi said the introduction of a new player was expected to bring fresh ideas and innovation to the market.
“MCMC is always committed to finding the right balance between the needs of consumers, investors and other stakeholders of the industry. “We believe that the balance struck between ensuring healthy competition in the market and promoting industry development will help spur continued growth for existing service providers and provide opportunity for new market entrants,” he said.
The eight are Celcom Axiata Bhd, DiGi Telecommunications Sdn Bhd, Maxis Broadband Sdn Bhd, Packet One Networks (M) Sdn Bhd, Puncak Semangat Sdn Bhd, REDtone Marketing Sdn Bhd, U Mobile Sdn Bhd and YTL Communications Sdn Bhd.
Malaysian Communications and Multimedia Commission (MCMC), which announced the allocation to the eight companies yesterday, said in a statement that existing service providers might use the 2,600 MHz spectrum band to further expand and enhance the capacity of their mobile broadband networks to meet increasing consumer demands.
The technology promises many new services to consumers such as high definition video streaming, enhanced user experience on real-time applications and better connectivity for mobile and consumer electronic devices.
The spectrum allocation will allow users of LTE, which is the next leap in mobile broadband technology after 3G, to boost Internet surfing speeds on the next generation smartphones such as the iPhone 5 and the Samsung Galaxy S3 LTE.
Telcos namely Celcom, DiGi and Maxis are also touting LTE to be the next driver of data demand as users upgrade their mobile phones and sign fresh contracts with them when they purchase new smartphones for faster internet speeds.
MCMC said since the introduction of 3G and WiMAX technology in Malaysia, the demand for better quality mobile broadband service had intensified. “This allocation is in line with similar initiatives in developed countries like the United States and some European states. “Market readiness for 4G technology is also reaching its maturity as increasingly, many of the latest devices in the global market support the use of this technology, hence the economies of scale will bring much benefit to the country,” it said.
MCMC said service providers were expected to enter into smart partnerships and sharing agreements between them which included spectrum and radio access network sharing in order to utilise larger bandwidths, lower the cost of rollout and offer better LTE-experience and affordability to consumers.
“Smart partnerships mean shared infrastructure, thus reducing the duplication of physical transmission towers,” MCMC said.
LTE wholesale Mobile Virtual Network Service would also be offered to other service providers that did not get access to the allocation, MCMC added. MCMC chairman Datuk Mohamed Sharil Tarmizi said the introduction of a new player was expected to bring fresh ideas and innovation to the market.
“MCMC is always committed to finding the right balance between the needs of consumers, investors and other stakeholders of the industry. “We believe that the balance struck between ensuring healthy competition in the market and promoting industry development will help spur continued growth for existing service providers and provide opportunity for new market entrants,” he said.
LTE Spectrum Finalized ?
The Star reported that the Malaysian Communications and Multimedia Commission (MCMC) is finalizing its allocation of the 2.6GHz spectrum. Its Chairman, Datuk Mohamed Sharil Tarmizi said on the sidelines of the CommunicAsia 2012 Summit in Singapore that the allocation is being finalized. He added that the government is looking at infrastructure and not service provider consolidation. The mobile operators will get to keep their brands, but they need to share the spectrum across possibly 2 to 3 networks. Not all 9 operators will get the spectrum.
P1 grabs 34% broadband market share
IT was a key milestone for Green Packet Bhd since it started its foray into the world of broadband in 2008. After spending almost RM800mil in capital expenditure, wiring up some 50% of Peninsular Malaysia with 401,000 subscribers and setting up more than 1,500 base stations, it has finally delivered what it has promised.
Having stomached 15 quarters of operating losses, Green Packet has turned EBITDA (earnings before interest, taxation, depreciation and amortisation) positive with a operating profit of RM3.9mil, contributed both by its solutions and broadband pillar.
To date, P1 claims it has captured a 34% market share of the Malaysian broadband market based on a 50% population coverage, thus giving it an extrapolated market share of 68%. Over the next 12 months, it will spend a remaining RM205mil which will give it 60% coverage of the Malaysian broadband market.
Puan: ‘P1 will be growing from a pure wireless player to a total converged telco.’
While Green Packet had already turned EBITDA positive in December 2011, that was mainly contributed by its solutions pillar. As of its first quarter to March 31, 2012, the figure was contributed both by the broadband segment under Packet One Networks Sdn Bhd (P1) with a operating profit of RM3.3mil and the solutions business with RM0.8mil.
For the first quarter to March 31, while group EBITDA grew 153% to RM3.9mil, the company narrowed its net loss to RM14.71mil from RM19mil previously. Revenue grew 5% to RM128mil.
The EBITDA positive figure was achieved on the back of a total subscriber base for P1 of 401,000, with net additions of 13,000 as of the first quarter.
“The 400,000 subscriber mark was our magic number to being EBITDA positive. Being EBITDA positive means that there shouldn't be any problems from a operating business cashflow standpoint from here forth. We are on track to achieve our 500,000 subscriber base by year-end,” says Green Packet Bhd group managing director and CEO Puan Chan Cheong.
Revenue from the P1 segment grew by 52% to RM85mil, driving up average revenue per user (ARPU) to RM78 from RM75 previously.
Puan says that with the EBITDA positive figures, this now marks the second phase of P1's journey, which he defines as P1 2.0.
“P1 will be growing from a pure wireless player to a total converged telco. We started from fixed wireless service to nomadic wireless service to fibre services and now to fixed voice,”
“People always ask how we address competition. Well, P1 has never been afraid of competition and we have always brought the competition to the market. We have been one of the smaller wireless players and we have managed to garner quite a big subscriber base. I see us as the David, who has triumphed over Goliath,” says Puan.
He adds that P1 will have 200 more base stations by the end of this year. While P1 will effectively be self sustaining just by staying put with its current coverage of 53% in Peninsular Malaysia, it wanted to expand its broadband coverage and deploy more base stations to suburban areas and Sabah and Sarawak. P1 will be venturing into Kota Kinabalu in the second half.
Solutions Pillar
For the first quarter, revenue from the solutions pillar, which include software solutions and 4G devices, was 53% lower to RM22mil due to lower shipment of 90,000 units versus 188,000 the year before. The solutions pillar seasonally performs better in the second half.
Puan says the solutions business isn't just going to be about organic growth and will eventually see “multifold growth”. For starters, Green Packet will be getting two large contracts from Europe and one from the American market from one of the largest mobile operators in the world in the second half of the year. This will significantly increase the solutions pillar which currently contributes about 30% to Green Packet's top line.
Green Packet is already engaged with more than 90% of the 500 Wimax operators worldwide. The engagement is via buying and selling of products or jointly undertaking trials.
Puan is proud that Green Packet has managed to sell its products to companies like Time Warner Cable, which is the second-largest cable operator in the world and Telefonica, which is the world's fourth largest operator. Its other big clients include China Mobile, China Unicom and PCCW.
According to Analysys Mason estimates, mobile broadband and mobile Internet revenue is the fastest growing segment in Malaysia.
“Mobile broadband will be RM4.1bil and mobile Internet will be RM4.3bil by 2015. Fixed broadband will be RM2.8bil by 2015,” says Analysys Mason.
Nielsen's research has shown that 68% of traffic in the Internet is currently being generated from smart phones and nomadic wireless modems. Cisco and AT&T estimate that by 2016, some 70% of network traffic will come from videos and cloud. Some 40% of this will come from the Asia-Pacific region and there will be 10 billion connected devices by then.
This is one reason why Puan expects revenue from the software business to increase multifold in line with the increase in traffic.
“Right now, there are some 6.6 million households in Malaysia, and out of this, 1.9 million households already have fixed broadband, while a further 200,000 are on the high speed broadband (HSBB) services,” says Puan.
Green Packet will be targeting the 4.7 million households, which it sees as the low hanging fruits.
Its other growth catalyst will come from P1 Fiber, which is Green Packet's HSBB service. That service was launched on March 28 and will be officially rolled out in the third quarter of this year.
Last October, P1 signed an agreement with Telekom Malaysia Bhd to use the latter's HSBB network for the provision of transmission and access services. The deal grants P1 access to all 1.3 million homes connected to the HSBB network nationwide.
“We view P1's strategy of using its fibre service to migrate bandwidth hungry broadband users instead of competing head-on with TM positively for the incumbent. The off-loading of high ARPU customers to fibre would allow P1 to retain high-yielding users, in line with the focus on driving revenue through higher quality subscribers going forward,” says OSK Investment analyst Jeffrey Tan.
As for Green Packet's voice business Homevoice, this is a growing market in the business market segment, rather than the residential segment.
As of the first quarter, it has already secured 30,000 subscribers. The quick take-up is because there is no monthly rental or contract required for this service. There is also a flat rate to all fixed and mobile numbers nationwide.
Industry outlook
On the bigger picture, Puan feels that the Malaysian telecommunications sector can only support a maximum of about four players before saturation and innefficiencies start kicking in.
Recently, Malaysian Communications and Multimedia Commission named nine companies as recipients of the 2.6 GHz spectrum, to be used for the roll-out of LTE or 4G services.
These are the four 3G players: namely DiGi.Com Bhd, Celcom Axiata Bhd,Maxis Bhd and U Mobile Sdn Bhd, four WiMAX players Asiaspace, P1,REDtone International Bhd and YTL Communications Bhd. The ninth player is Puncak Semangat Sdn Bhd.
The Malaysian regulators have also mentioned that they like to see smart collaboration between the nine licence holders.
“The industry will consolidate. In the long run, perhaps there will be a need to combine the spectrum. We are always in discussion with some of the other players to see how we can collaborate and what is the best way to deliver,” says Puan.
Thus he is not ruling out a possible merger in the future.
On a possible listing for P1, Puan says that currently there are no such plans, but he will not rule it out in his future roadmap.
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Green Packet confident of improved valuation
PETALING JAYA (May 21, 2012): Green Packet Bhd is undervalued with the stock currently trading near its record low, but its founder is confident that the broadband provider will be given a proper valuation when it turns around this year with its first positive earnings before interest, taxes and depreciation and amortisation (ebitda).
The company, according to its group managing director and group CEO Puan Chan Cheong, has not been given the right valuation.
"We believe when the group turns ebitda-positive in 2012, the confidence and sentiment (of investors) will be different, despite the public equity market not giving us the valuation due to risks and long gestation period," he told SunBiz in an interview.
At last Friday's closing price of 50.5 sen, the company has a market capitalisation of RM332.2 million, much lower than Puan's valuation of RM1 billion based on sum-of-parts calculation.
According to Puan, its 57%-owned 4G broadband unit Packet One Networks (Malaysia) Sdn Bhd is valued at nearly RM1.5 billion based on the US$100 million (RM312 million) invested by SK Telekom Co Ltd of South Korea for a 26% stake in the company, and the solutions business, which is valued at not less than RM200 million.
Last year, the solutions business posted a profit of RM25 million, and the price tag of RM200 million is based on the 8-12 times price earnings multiples fetched by major telecommunications companies.
Puan said this year also marks the end of the group's five-year transformation plan, and all sights will be on the company's financial results. It is expected to release its first-quarter 2012 results this Wednesday.
"The focus now is to build a positive ebitda, and when the group is cashflow-positive operationally, the route to profitability will come. Overall, revenue needs to be over RM600 million for us to achieve a positive ebitda."
Green Packet expects an annual performance of over RM1 billion in revenue by 2015 and more than RM500 million in ebitda by 2020. It is looking at an annual growth of RM100 million in ebitda from next financial year.
The group achieved its first positive ebitda in the month of December 2011, mainly from its solutions business. It expects both its solutions and 4G broadband – the latter via Packet One Networks (Malaysia) Sdn Bhd (P1) – pillars to also be ebitda-positive this year.
"Achieving investor confidence and share price performance is a matter of time," Puan said, adding that the group has developed its capabilities to compete with the telecommunications incumbents and beaten competition from newcomers.
He said some institutional investors took a temporary exit from Green Packet and divested their shares in the company because of the risk profile and the long term investment-changing landscape.
Despite this, it attracted long term shareholders Intel Capital and SK Telecom to invest in P1, in which the former holds a 17% stake in P1. Green Packet holds a 57% interest in P1.
He said the ebitda target had been postponed for a year after SK Telecom invested in the company, as it wanted Green Packet to gain more market share and become ebitda-positive.
Puan believes that ebitda and a positive cashflow are key factors in gauging the performance of telcos.
"For an infrastructure investment like telco, the capital expenditure (capex) is front-loaded. If we invest RM1 billion in capex, the amortisation and depreciation will be RM100 million a year over a period of 10 years. Hence, the more accurate measurement for the telco business will be the ebitda."
Green Packet is now the country's fourth largest broadband provider, with 388,000 paying subscribers. The group has a nationwide coverage of 55%, and an 80% coverage in the Klang Valley alone.
"By year-end, we expect a 100% coverage in the Klang Valley, and this will pave the way for us to offer mobile broadband and handset next year," said Puan. - The SunBiz
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两月完成 共享网络计划 9公司分组4G联盟
（吉隆坡11日讯）我国目前共9家公司拥有4G执照，鉴于我国市场或只需2至3个4G网络服务，因此大马通讯与多媒体委员会将推出“4G联盟计划”，让业者各自合组成4G网络服务集团。
负责国内电信监管机构的大马通讯与多媒体委员会，预计将在两个月内，批准约2至4个“4G联盟计划”。
该委员会主席拿督莫哈末沙里尔说，国内将出现2至4个4G联盟组合，至于最后出现几个4G联盟组合目前还无法确定。
“或许每个联盟由两家公司组合会更好……这些业者正在找寻本身的伙伴，因此我们希望在未来两个月内完成有关计划。”
技术支援新模式
他强调，届时可能只有2或3个4G网络服务，而不会再有8个或9个4G网络服务。
“这是非常新的合作模式，国内的法令及现有的技术也支援这种模式。届时一个4G网络，可能是由两三家公司共同分享。”
Is this the watershed year for Green Packet?
After being mired in the red for several years as a result of the long gestation period for its broadband business, Green Packet Bhd is optimistic the company is now on the cusp of a turnaround.
The company hit a key milestone when it turned an operating profit (earnings before interest, tax, depreciation and amortisation [Ebitda]) in December last year. Although it remained in the red for 4Q11 with a net loss of RM29.9 million, and the whole of 2011 with losses totalling RM88.5 million, Green Packet believes that a return to profitability is within reach. The solutions business, including the sale of software licences and customer premises equipment, is already profitable but the broadband unit, P1, is still loss-making.
The broadband unit is, however, expected to turn Ebitda positive by mid-2012, helped in part by a change in accounting policy in which modem costs will now be classified as amortisation expenses instead of operating costs. But more importantly, Green Packet expects the underlying business to improve further.
P1 expected to turn positive Ebitda in 2012
Some 114,000 new subscribers were acquired last year, bringing the total subscriber base to 388,000 at end-2011. This is somewhat off the original forecast pace but revenue still grew 41% to RM293 million.
Bolstered by the addition of 356 new sites rolled out in 4Q11, the company is upbeat that subscriber acquisition will gain traction in the current year. It ended 2011 with a total of 1,527 sites and about 50% nationwide coverage.
P1 targets total subscribers to reach 550,000 by end-2012. This includes signing up existing customers for new services such as fixed voice, whereby a telephone will be connected to the home modem for voice over Internet protocol (VOIP) calls.
The One Plan, launched in 4Q11, which offers both home and portable modem (dongle) with a shared quota has been quite successful — and has given average revenue per user (ARPU) a boost. ARPU improved to RM81 in the last quarter of 2011, from the average of RM73 to RM75 in the three preceding quarters.
The company recently expanded its One Plan to include the option of high-speed broadband services, piggybacking on Telekom Malaysia Bhd’s fibre network. In addition to up-selling its existing high usage customers, P1 intends to sign up primarily higher value SME customers with its combination of high-speed broadband (HSBB) plus on-the-go broadband package.
An additional capital expenditure (capex) of about RM280 million is budgeted for the current year to expand its coverage to 60% with some 2,300 sites. The company plans to raise network capacity and coverage further, to about 65% to 70% with 3,000 sites by 2013/14. Capex is estimated at roughly RM200 to RM250 million per year.
The wider coverage will dovetail with the launch of long-term evolution (LTE) services in the country, which will enable P1 to compete with mobile operators in offering telephony and mobile Internet services. By this time, it is anticipated that a healthy ecosystem of LTE-enabled devices will be in the market. P1 is among the handful of operators awarded 4G spectrum blocks.
If all goes to plan, Green Packet expects to turn a small net profit in 2013. If so, we should see evidence of the turnaround through the current year, which would certainly give sagging investor confidence a strong shot in the arm.
P1 listing will crystallise value for Green Packet shareholders
The anticipated listing of U Mobile Communications later this year could also stir interest in Green Packet.
Recall that Singapore Technologies Telemedia acquired a 33% stake in U Mobile for about RM625 million in 2010, implying a total value of about RM1.9 billion for the mobile operator. Recent news reports on its IPO speculate a price tag of up to RM4 billion to RM5 billion. The operator is reported to have over a million subscribers, more than 1,000 base stations and recently inked an agreement to share Maxis’ radio access network.
Indeed, there has been speculation that P1 could be seeking a separate listing on Bursa Malaysia, perhaps sometime in 2013. A listing would enable the company to tap the capital market directly, to fund future capex, and crystallise value for existing Green Packet shareholders.
Green Packet sold a 26% stake in P1 to Korean telco SK Telecom for roughly RM374 million in two tranches in 2010 and 2011. The sale of the strategic stake values P1 at some RM1.44 billion. SK Telecom is actively involved in the company’s operations. An IPO would likely carry a higher valuation, with the broadband operator expected to hit, or be close to reaching, positive earnings before interest and tax (Ebit) by mid-2013.
Assuming a fairly modest RM2 billion valuation for P1, Green Packet’s 57.5% stake would be worth some RM1.15 billion, compared with the company’s current market capitalisation of less than RM382 million at the current share price of 58 sen. Green Packet had net debt totalling RM115 million as at end-2011.
Note: This report is brought to you by Asia Analytica Sdn Bhd, a licensed investment adviser. Please exercise your own judgment or seek professional advice for your specific investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned.
This article appeared in The Edge Financial Daily, April 18, 2012.
The company hit a key milestone when it turned an operating profit (earnings before interest, tax, depreciation and amortisation [Ebitda]) in December last year. Although it remained in the red for 4Q11 with a net loss of RM29.9 million, and the whole of 2011 with losses totalling RM88.5 million, Green Packet believes that a return to profitability is within reach. The solutions business, including the sale of software licences and customer premises equipment, is already profitable but the broadband unit, P1, is still loss-making.
The broadband unit is, however, expected to turn Ebitda positive by mid-2012, helped in part by a change in accounting policy in which modem costs will now be classified as amortisation expenses instead of operating costs. But more importantly, Green Packet expects the underlying business to improve further.
P1 expected to turn positive Ebitda in 2012
Some 114,000 new subscribers were acquired last year, bringing the total subscriber base to 388,000 at end-2011. This is somewhat off the original forecast pace but revenue still grew 41% to RM293 million.
Bolstered by the addition of 356 new sites rolled out in 4Q11, the company is upbeat that subscriber acquisition will gain traction in the current year. It ended 2011 with a total of 1,527 sites and about 50% nationwide coverage.
P1 targets total subscribers to reach 550,000 by end-2012. This includes signing up existing customers for new services such as fixed voice, whereby a telephone will be connected to the home modem for voice over Internet protocol (VOIP) calls.
The One Plan, launched in 4Q11, which offers both home and portable modem (dongle) with a shared quota has been quite successful — and has given average revenue per user (ARPU) a boost. ARPU improved to RM81 in the last quarter of 2011, from the average of RM73 to RM75 in the three preceding quarters.
The company recently expanded its One Plan to include the option of high-speed broadband services, piggybacking on Telekom Malaysia Bhd’s fibre network. In addition to up-selling its existing high usage customers, P1 intends to sign up primarily higher value SME customers with its combination of high-speed broadband (HSBB) plus on-the-go broadband package.
An additional capital expenditure (capex) of about RM280 million is budgeted for the current year to expand its coverage to 60% with some 2,300 sites. The company plans to raise network capacity and coverage further, to about 65% to 70% with 3,000 sites by 2013/14. Capex is estimated at roughly RM200 to RM250 million per year.
The wider coverage will dovetail with the launch of long-term evolution (LTE) services in the country, which will enable P1 to compete with mobile operators in offering telephony and mobile Internet services. By this time, it is anticipated that a healthy ecosystem of LTE-enabled devices will be in the market. P1 is among the handful of operators awarded 4G spectrum blocks.
If all goes to plan, Green Packet expects to turn a small net profit in 2013. If so, we should see evidence of the turnaround through the current year, which would certainly give sagging investor confidence a strong shot in the arm.
P1 listing will crystallise value for Green Packet shareholders
The anticipated listing of U Mobile Communications later this year could also stir interest in Green Packet.
Recall that Singapore Technologies Telemedia acquired a 33% stake in U Mobile for about RM625 million in 2010, implying a total value of about RM1.9 billion for the mobile operator. Recent news reports on its IPO speculate a price tag of up to RM4 billion to RM5 billion. The operator is reported to have over a million subscribers, more than 1,000 base stations and recently inked an agreement to share Maxis’ radio access network.
Indeed, there has been speculation that P1 could be seeking a separate listing on Bursa Malaysia, perhaps sometime in 2013. A listing would enable the company to tap the capital market directly, to fund future capex, and crystallise value for existing Green Packet shareholders.
Green Packet sold a 26% stake in P1 to Korean telco SK Telecom for roughly RM374 million in two tranches in 2010 and 2011. The sale of the strategic stake values P1 at some RM1.44 billion. SK Telecom is actively involved in the company’s operations. An IPO would likely carry a higher valuation, with the broadband operator expected to hit, or be close to reaching, positive earnings before interest and tax (Ebit) by mid-2013.
Assuming a fairly modest RM2 billion valuation for P1, Green Packet’s 57.5% stake would be worth some RM1.15 billion, compared with the company’s current market capitalisation of less than RM382 million at the current share price of 58 sen. Green Packet had net debt totalling RM115 million as at end-2011.
Note: This report is brought to you by Asia Analytica Sdn Bhd, a licensed investment adviser. Please exercise your own judgment or seek professional advice for your specific investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned.
This article appeared in The Edge Financial Daily, April 18, 2012.
电讯业合并?
2012年03月26日 封面故事 - 财经周刊 - 南洋网
大马的通讯领域早已形成三强鼎立的格局，而各强之间又有本身的优势，因此，估计不会出现合并的风潮。 然而，我国通讯领域的确出现了合并的迹象与契机，而这个契机又完全是由9张4G执照而引发……
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大马的通讯领域早已形成三强鼎立的格局，而各强之间又有本身的优势，因此，估计不会出现合并的风潮。 然而，我国通讯领域的确出现了合并的迹象与契机，而这个契机又完全是由9张4G执照而引发……
小型电企联盟抗巨无霸
国内通讯公司的并购风，应当也不是头一遭，近期又再传出并购的消息，我国目前三强鼎立的通讯市场架构，是否会有变化？
行业内的无数小型业者的命运，又何去何从？
国内的电讯业在2月底传出并购消息，引起业者以致消费者的高度关注，主要是因今时今日，手机、通讯服务以及上网，几乎成了我国人民的日常必需品。若是通讯公司真的吹起合并风潮，不仅对于我国通讯业的架构有重大的影响，该行业的竞争生态，也会随之影响到消费人。
賴敬達：P1不排除透過IPO集資
吉隆坡8日訊）綠馳通訊科技（GPACKET，0082，主板科技股）旗下P1網絡展望，在未來4年投入逾10億令吉資本支出，打造旗下基站發射塔，瞄準用戶規模突破100萬人大關。同時，P1網絡希望率先啟動收費低廉的4G網絡長期演進技術（TD-LTE），幫助國內中小型企業減輕通訊成本負擔，間接推動SME對國內經濟作出更大貢獻。
針對公司是否將考慮通過上市籌集資本開銷，P1網絡首席執行員賴敬達表示，如果證實透過股票市場集資，比原有的供應商融資方式更理想，P1網絡也不排除進行首次公開售股（IPO）的可能性。 「作為一家增長型企業，我們會設法探尋不同的管道優化成本；假設證實股本融資管道理想，我們不排除進行IPO。」賴敬達透露，P1網絡目前的資本支出與開銷九成來自供應商融資資金。另外，賴敬達透露，公司未來3年會每年斥資2.5億至3億令吉資本支出，進行公司的「2.0進化計劃」。他透露，P1將在4月份推出綜合光纖寬頻與4G無線服務的產品，並將在巴生谷試跑以瞭解用後迴響。他預計2015年可將旗下4G網絡基站，全面轉換成長期演進技術。
P1網絡目前有40萬名用戶，九成為個人用戶。賴敬達預計2012至2014年的用戶規模，分別增至50至55萬人、75萬人以及100萬人。 此外，他透露，將以3000萬令吉在沙巴亞庇建立50個基站，全馬今年將有2300座基站，支撐今年全馬65%覆蓋率的目標。目前，P1網絡在西馬的覆蓋率為50至53%。 談到電訊業大整合的傳言，賴敬達認為，即便電訊業的資本開銷龐大，小公司也未必需要整合才能生存。「電訊業者目前最缺乏的資源就是光譜；比起整合，未來大家還有機會進行合作或光譜技術共享方式，繼續營運下去。
針對公司是否將考慮通過上市籌集資本開銷，P1網絡首席執行員賴敬達表示，如果證實透過股票市場集資，比原有的供應商融資方式更理想，P1網絡也不排除進行首次公開售股（IPO）的可能性。 「作為一家增長型企業，我們會設法探尋不同的管道優化成本；假設證實股本融資管道理想，我們不排除進行IPO。」賴敬達透露，P1網絡目前的資本支出與開銷九成來自供應商融資資金。另外，賴敬達透露，公司未來3年會每年斥資2.5億至3億令吉資本支出，進行公司的「2.0進化計劃」。他透露，P1將在4月份推出綜合光纖寬頻與4G無線服務的產品，並將在巴生谷試跑以瞭解用後迴響。他預計2015年可將旗下4G網絡基站，全面轉換成長期演進技術。
P1網絡目前有40萬名用戶，九成為個人用戶。賴敬達預計2012至2014年的用戶規模，分別增至50至55萬人、75萬人以及100萬人。 此外，他透露，將以3000萬令吉在沙巴亞庇建立50個基站，全馬今年將有2300座基站，支撐今年全馬65%覆蓋率的目標。目前，P1網絡在西馬的覆蓋率為50至53%。 談到電訊業大整合的傳言，賴敬達認為，即便電訊業的資本開銷龐大，小公司也未必需要整合才能生存。「電訊業者目前最缺乏的資源就是光譜；比起整合，未來大家還有機會進行合作或光譜技術共享方式，繼續營運下去。
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GPacket
Will OSKVI divest all its investments?
With the news on eBworx gets takeover offer from Hitachi, it is not surprise if OSKVI to divest all its shares of the EBWORX, MTOUCHE & GPacket and return the money to shareholders. How much of OSKVI worth? It should worth more than RM1.
Green Packet to invest RM300m capex in 2012
PETALING JAYA (Feb 23, 2012): Green Packet Bhd plans to invest RM300 million in capital expenditure this year to sustain its continuing growth.
Group CEO Puan Chan Cheong said the company aims to widen its 4G coverage in populated areas in Peninsular Malaysia to 65% by year-end from 50% currently.
Its 4G operator and service provider arm, P1, would also expand to Sabah and Sarawak by June, he said.
"Plans to enter Sabah and Sarawak would be implemented phase by phase, starting with Kota Kinabalu. Total investment for the two markets is about RM30 million," said Puan, who is also group managing director, told a press conference today.
P1 aims to achieve a subscriber base of more than 500,000 this year by managing its subscriber acquisition activities in line with its network capacity expansion. To date, its subscriber base stands at 380,000.
P1 is currently the fastest-growing broadband provider with 36% market share of new broadband subscribers in areas with P1 network coverage.
On its solutions and technology business, Puan said Green Packet aims to touch 850,000 software licences and 900,000 Wimax CPE shipments this year.
Last year, the company's software licences stood at 742,000 and shipped 803,000 devices.
"We scored a number of wins with major telco players globally, delivering for Telefonica, Spain's largest telco operator, Time Warner Cable, Smart Communication Inc Philippines, Wateen Telecom Pakistan and Wi-Tribe Group.
"We plan to position ourselves as a leading expert in Wi-Fi data off-loading and transitioning our device portfolio to include long-term evolution technology is on track," he said, adding that the company was doing intensive tests and trials for its solutions and devices.
On consolidation talks in the telecommunications space, P1 CEO Michael Lai said the company would always be on the look-out for what was best for its consumers and stakeholders.
"At this point of time, nothing is concrete. As a responsible company, we'll always keep our options open. We'll compete when required and cooperate where necessary," he added. – Bernama
分享與整合頻譜‧綠馳證實洽商
（雪蘭莪‧八打靈再也23日訊）綠馳通訊科技（GPACKET，0082，主板科技組）今日證實正與多方洽商頻譜分享與整合問題，時機成熟時才會公佈洽商進展。
董事經理兼首席執行員潘振祥在業績匯報會時受詢時表示，該公司正與各方洽談上述問題，尋求如何在頻譜分享等進行合作。提到是否與楊忠禮機構（YTL,4677,主板貿服組）等洽商，他說，公司將與各方進行洽商，並嘗試從整合中獲取雙贏局面。
早前報導指楊忠禮機構與該公司以及Asiaspace公司洽商。楊忠禮機構旗下楊忠禮電子（YTLE，0009，創業板科技組）也表示洽商時時在進行潘振祥指出，若能達致頻譜分享，各業每年資本開銷將大大節省，將是各方期許的雙贏局面，因而對類似洽商樂觀其成。
“正如賴敬達所形容的，面對目前形式，各電訊業既是合作的盟友，也是相互競爭的競爭者。” 潘振祥也說，P1公司今年斥資約3億令吉資本開銷，使4G全國服務覆蓋率由現有超過50%增至65%，東馬覆蓋率則會從沙巴亞庇做起，逐步深入。
他說，公司去年12月營運盈利首創正面成長，預期2012年有利可圖，P1也放眼攫取50萬名用戶。其服務美國等全國40國軟件方案亦有強勁成長。
全年虧8845萬
截至2011年12月31日止，第四季虧損收窄近倍至2千988萬6千令吉，前期為8千618萬2千令吉；全年虧損縮小至8千845萬3千令吉，前期為1億4千339萬7千令吉。（星洲日報／財經）
2012-02-24 11:34
