Monday, April 28, 2008

Latest on Digi

DiGi's new CEO Johan Dennelind firmly believes that there is “still a lot of room for growth and 3G will be the driver of growth, as will mobile broadband’’ despite talk that the mobile market has reached saturation at 80% penetration. DiGi will expand its coverage to 95% of the population from the current 90%.

• The 3G spectrum is a priceless commodity that opens huge growth avenues for DiGi. It would be DiGi’s growth platform which allows it to grow its capacity and core business. “It also gives us a licence to compete in the broadband space. We want to be part of bringing Internet on mobile phones here and we would do it with the DiGi twist. But to do that, we must first find out what would trigger consumers to our direction."

• On MNP, “People in Malaysia are very number focussed and it is very difficult to take their cell numbers away. But in an MNP environment, you can keep your number, so why not go for better value, quality and coverage? “Our basic belief is that we try to do simple things and the way we are going to approach MNP is to bring the best value, coverage and quality and that definitely could be a decisive factor for users (to switch networks)."

• Dennelind expects newer players to use pricing as component mix to attack the stronghold of established players. That is why margin pressure can be expected.