TM Subsidiary Invests To Expand Business In Cambodia

PHNOM PENH, Nov 15 (Bernama) -- Telekom Malaysia International (Cambodia) Co Ltd (TMIC) is investing to expand its cellular mobile services business in the growing Cambodian market.

Describing the amount of investment as "significant", TMIC chief executive officer, Yusoff Zamri, said the company was committing US$150 million (US$1=RM3.36) to upgrade network capacity and add 500 base transmitter stations from this year to 2009.

The Telekom Malaysia Bhd (TM) subsidiary had already spent US$25 million to install 100 new base transmitter stations, he said, adding that new stations were needed not only to improve coverage in the Cambodian capital here but also in rural and provincial sites.

Yusoff said a "substantial sum" was also being spent on the TMIC rebranding campaign launched here today with the aim of projecting a new image following TM's takeover of the company in March 2006.

According to him, TMIC is already the fastest growing mobile player in Cambodia and is targeting to grow its current subscriber base of 283,000 to 500,000 by next year with the new campaign under its "Hello" brand.

"This is just the beginning. We plan to stay in the game until we reach the top," he said.

TMIC currently has 18 percent market share and is ranked third behind Mobitel and Camshin in the competitive Cambodian market with seven mobile players.

The mobile penetration rate is, however, still low at 13.5 percent in a population of 14.3 million and TMIC sees plenty of opportunities for growth.

The company operates under a 35-year cellular concession beginning 1996 from Cambodia's Posts and Telecommunications Ministry.

Yusoff said TMIC was expected to achieve a revenue growth of 25 percent in its current financial year ending December 31, 2007.

With the rebranding as well as other efforts, he said, the company expected to record a growth of more than 25 percent next year.

He added that TMIC achieved an average revenue per user of US$9 which was one of the highest in emerging markets where the industry average was US$7.

As part of the rebranding effort, TMIC will also be setting up new Hello Point service centres, with the latest centre launched here Thursday.

Yusoff said the company planned to open eight Hello Point centres by first half of next year, with three in the capital area and five outside.

"We are committed to being customer-focused. In emerging telecommunications markets like Cambodia, it's not technology that drives demand. It's about the basic need to communicate that drives both demand and technology," he said.

Yusoff said TMIC would leverage on strategic partnerships for mobile phone distribution and preferential rates.

"We are more than doubling our global roaming network to 450 partners," he said, adding that TMIC was the first to provide GPRS (General Packet Radio Service) with EDGE technology here and the tourist area of Siem Reap.

A significant sum would also be spent on training programmes, covering the TMIC staff which numbered 665 as well as vendors, dealers and distributors, Yusoff said.

"This is to ensure operational, systems and day-to-day performance efficiency and effectiveness," he said.

Cambodia's Posts and Telecommunications Minister, So Khun, who officiated at the rebranding ceremony, said the government was actively promoting policies and strategies to develop the telecommunications sector.

The Cambodian government, he added, would also provide a favourable and attractive environment for the private sector to invest in the sector.

-- BERNAMA