Celcom to invest RM45 mln for expansion in Sarawak

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KUCHING: Celcom Axiata Bhd (Celcom) has announced that it will be spending approximately RM45 million in network expansion and upgrades in Sarawak over the next 12 to 18 months as part of its continued commitment towards its investment in East Malaysia.

During an exclusive media briefing on Celcom’s first quarter 2013 (1Q13) results at Four Points Hotel, yesterday, chief executive officer Datuk Seri Shazalli Ramly said Celcom had sustained its consecutive growth in revenue, despite adverse impact of seasonally slow and short quarter.

He highlighted that Celcom had recorded the highest quarter profit after tax and minority interest (PATAMI) in the industry, with its data growth showing significant increase over the years, which is now beginning to contribute to the growth of the company.

“We are continuing our assault on the data revolution which allow us, at this point of time, to past through the 13 million subscriber mark in the 1Q13. The bulk of it comes from Sarawak,” Shazalli pointed out.

Additionally, he said, Sarawak has contributed over 12 per cent of Celcom’s overall revenue. As such, Shazalli reiterated, Celcom’s investment in East Malaysia’s network is part of its continued commitment towards its customers’ experience.

“Celcom has, and will continue our investment in the network for the benefit of people in Sabah and Sarawak. In the last three years, we have invested around RM300 million in our East Malaysian network.

“This includes installing more than 1,000 new sites, upgrading 2G equipment to Single radio access network (RAN) platform to cater for future LTE provision, and modernising our localise customer service core.

“We are committed to matintaining our long-time position of having the fastest and widest network in Malaysia,” he affirmed.

With the support of the Ministry of Communications and Multimedia’s fiberisation initiative, Celcom has an ongoing Broadband for General Population (BBGP) project with the objective to build 327 kilometres (km) and 260 km in Sabah and Sarawak respectively. To note, the BBGP is the largest fiberisation project in Malaysia.

In regards to LTE, Shazalli noted that Celcom plans to roll out approximately 1,200 sites, nationwide by February 2014, with 120 sites located in Sarawak.He further added that Celcom has RM20 million in capital expenditure for the roll out of the LTE.

“We are going to build 68 new sites, out of which 42 sites are very new sites in the whole of Sarawak,” he said, noting that this could reduce the dropped calls incidences that are faced in Sarawak.

“This investment alone will take us to another level of commitment in Sarawak and we are doing the same across the whole of Malaysia,” Shazalli added.

In total, Shazalli noted, the roll-out of LTE will spend about RM400 million in capex, out of which RM85 million has been allocated to East Malaysia and RM45 million dedicated to the state of Sarawak.

Some of the first locations to be LTE enabled in Kuching include Jalan Simpang Tiga (the Sping shopping mall), Jalan Tun Jugah (Celcom Regional office), Jalan Barrack (Padang Merdeka), Jalan Tun Abang Haji Openg (St Joseph Secondary school) and Jalan Tunku Abdul Rahman, and Jalan Borneo (Hilton Kuching).

Apart from that, during the announcement of the result, Shazalli also announced a slew of exclusive promotions and bonuses for Celcom customers in Sarawak. In addition, to hallmark Celcom’s commitment to East Malaysia, Shazalli also launched Celcom’s latest digital service, ‘ESCAPE’, which is currently only available in East Malaysia.