Reflections on Volume

Big volume without further upside equals distribution
Big volume without further downside equals accumulation

Volume tends to peak at turning points
Volume often precedes price movement
Volume is a relative study


Showing posts with label redtone. Show all posts
Showing posts with label redtone. Show all posts

Sunday, April 25, 2010

Is WiMAX or LTE the better 4G choice?

By B.K. SIDHU bksidhu@thestar.com.my

WiMAX or LTE (long-term evolution) – which is superior? It, of course, depends on who you talk to. The vendors have their own stories, and the operators theirs. For the consumers, it is not about technology. It is about speed and seamless connectivity, and not having to buy different devices to operate on different platforms.

From the technical viewpoint, both are next-generation technologies for the wireless world. The choice between WiMAX and LTE hinges on the needs of the operator and the market demands, but the fact is, there seemingly is an insatiable appetite for data on the go. WiMAX (worldwide interoperability for microwave access) is a fourth-generation (4G) telecommunications technology primarily for fast broadband. Also a 4G mobile technology, LTE allows a peak download speed of 100 megabits per second (Mbps) on mobile phones, compared with 20Mbps for 3G and 40Mbps for WiMAX.

“For operators, the choice of technology depends on a number of things including available spectrum, legacy inter-working, timing and business focus,” says Nokia Siemens Networks head of sub region, Asia South, Lars Biese. To deploy either technology, operators will have to commit tens of billions of dollars in network upgrades for the new mobility landscape, which now includes social, video, location-based and entertainment applications and experiences.

In many countries, the current generation of mobile telecoms networks is 3G. Those in Malaysia are deployed by the four mobile players – Celcom Axiata Bhd, DiGi.Com Bhd, Maxis Communications Bhd and U Mobile Sdn Bhd.

Biese reckons LTE is the next step for mobile networks like GSM, WCDMA/HSPA and CDMA in the move to future networks and services.

The common belief is that the natural migration path is from 2G to GPRS, from GPRS to 3G, and from 3G to LTE. But IDC Asia/Pacific’s telecom research director Bill Rojas has a differing view. To him, LTE is a totally new set-up. “GSM and GPRS were part of a migration. In Asia, the players may put LTE on top of 3G, but this will not cover the entire population. The concentration will be on urban centres. For full coverage, the operator needs to build more than 30% new cell sites,” Rojas says.

It has been reported that LTE’s main advantage over WiMAX, in addition to speed, is that it is part of the popular GSM technology and can allow backward compatibility with both 2G and 3G networks. LTE is relatively new compared with WiMAX. The world’s first public LTE service was made available only at the end of last year by TeliaSonera in Stockholm and Oslo. However, LTE is fast catching up with WiMAX even though the WiMAX Forum, an industry organisation, stresses that its platform is at least two years ahead in terms of equipment availability and testing.

The Global Suppliers Association (GSA) says there are more than 59 LTE network commitments in 28 countries. In comparison, according to the WiMAX Forum, there are 559 WiMAX networks worldwide.  'To date, all existing GSM and WCDMA (3GPP) operators and CDMA (3GPP2) operators have committed to LTE as the technology of choice for their mobile network evolution, and by 2013, it is expected that there will be 20.4 million connections activated on LTE in the Asia Pacific,” says Biese. On the other hand, YTL Communications Sdn Bhd chief executive officer Wing K Lee claims that mobile WiMAX is the only commercially proven technology that has been deployed on a large scale. Nevertheless, market dynamics will determine the outcome of the race.

There are four WiMAX spectrum holders in Malaysia, namely, Packet One Networks (M) Sdn Bhd, REDtone International Bhd, Asiaspace Sdn Bhd and YTL Communications, which is the only one that has yet to roll out services commercially.

Rojas of IDC says both technologies can co-exist, but to him, WiMAX is still the purest 4G network. Naturally, the promoters of LTE have the opposite view. That aside, Lee of YTL Communications points out that LTE and WiMAX serve the wireless broadband market and both technologies fundamentally share the same technological foundation. Therefore, they have more similarities than differences. Should they then be merged, as suggested by US-based Clearwire CEO Bill Morrow, given the overlap in the technologies?

While the debate rages on, the mobile operators in Malaysia still have a little bit of time to decide on which route to take to add capacity. This is because they have not fully exhausted their 3G spectrum. Even the WiMAX players have not fully exploited their 2.3G spectrum.

At some point, Rojas believes, the Malaysian Government will have to decide on spectrum allocation for LTE. Until then, do not expect the operators to fast-track their network expansion, even though some may face bottlenecks soon. Furthermore, the Government needs to be certain that LTE is what the market needs. “Without (additional) spectrum after 3G, operators will have to move to LTE using the 3G spectrum,’’ Rojas says.

Whatever is on the minds of the players and industry regulators, one thing is clear – the need for speed is growing by the day, and the planning for spectrum allocation should start before we hit bottlenecks.

Some industry players have also called for the Government to refarm spectrum so that there is a coordinated approach to spectrum allocation and assignment. Not that there isn’t, but given that spectrum is becoming a rare commodity, the Government should make sure that the spectrum awarded is put to good use.

Rojas expects major commercial roll-outs of LTE and WiMAX in Asia this year and next, but devices remain an issue in the world of 4G. At the same time, experts say it is about time that the industry focuses on a single device that works on all platforms.

Extracted from biz.thestar.com.my

Friday, January 22, 2010

REDtone seeks WiMAX licence for peninsula

TELECOMMUNICATIONS service provider REDtone International Bhd (0032)remains hopeful of securing a broadband wireless spectrum licence for Peninsular Malaysia.

REDtone, which has a WiMAX 2.3Ghz spectrum licence for Sabah and Sarawak, said it has proven its success in rolling out the services for consumers there and would like to replicate the success targeting corporate clients in Peninsular Malaysia.

"We believe we should be given a chance in Peninsular Malaysia as customers are demanding for more such services to be offered here," its group chief executive officer Zainal Amanshah told reporters during a media briefing in Petaling Jaya, Selangor, yesterday.

He said the company had exceeded the 25 per cent population coverage in Sabah and Sarawak as set by the authorities, but decline to elaborate further, citing regulatory stipulations.
"We are in the process of applying for the licence (for Peninsular Malaysia) and are still in talks with the Malaysian Communication and Multimedia Commission," he said.

It is understood that licence application will be for the spectrum range between 2.5Ghz and 3.5Ghz.

Meanwhile, the company told Bursa Malaysia yesterday that it made a second quarter net profit of RM1.58 million against a revenue of RM21.2 million for the quarter ended November 30 2009.

This was a reversal from a year ago, when it posted a net loss of RM 719,000 against revenue of RM21.6 million for the same period.

The stronger performance for its recent second quarter results was driven by the local growth in its broadband services and uptake for its discounted call offerings in China.

"The business from China currently contributes 30 per cent to the overall group's revenue. We hope to increase this to 50 per cent next year," said group managing director Wei Chuan Beng.

This will be done via organic growth for its discounted voice services in Shanghai targeting the consumer segment. It currently has one million customers and sees growth of 2 per cent each month.

REDtone International also wants to venture into the distribution of mobile Internet device and 3G related services in China. It plans on doing so via acquisitions and is now in talks with several potential parties.

China has some 600 million 2G users and the three dominant telcos there are targeting to have some 30 million to 40 million 3G users in 2010, Wei added.

The group aims to achieve a net profit of RM7 million, against revenue of between RM88 million and RM90 million for its fiscal year ending 2010.

Meanwhile, the company will continue to spend RM10 million as part of its annual capital expenditure and plans to raise some RM41.5 million from its rights issues exercise, to be used mainly to set-up broadband infrastructure.

Thursday, January 21, 2010

REDtone to launch Chinese-centric IPTV service ‘DETV’

Written by Cindy Yeap
Thursday, 21 January 2010 14:35

KUALA LUMPUR REDTONE INTERNATIONAL BHD [] is set to launch Malaysia’s first Chinese-centric Internet-based TV early next week with 27 channels, in-line with its bid to generate more revenue from services other than discounted voice.

The service, dubbed DETV, is marketing itself as “a smart and revolutionary way” of watching one’s favourite Chinese entertainment programmes from Malaysia, Singapore, Taiwan, Hong Kong and China, without having to first download the content, legally or otherwise.

“All you need is a broadband connection with 1 Mbps and a TV set. TV programs with superior quality will be transmitted directly to you through the Internet by just clicking the remote control that comes with y our DETV Internet home gateway. No computer is needed… You can bring your DETV box to anywhere you wish in Malaysia, as long as you have an internet service for your DETV service (should you move house),” according to data from the DETV website.

The service is also expected to compliment REDtone’s WiMAX-based wireless broadband offering that’s currently available in Sabah and Sarawak. REDtone, which has asked for licence to also offer WiMAX services in the Peninsular, also sells mobile phone services targeting the Chinese community as well as SMEs, riding on Celcom (M) Bhd’s network.

DETV’s current portfolio of 27 channels include China’s CCTV4, CCTV9, CCTV Entertainment, CCTV Traditional Operas Channel as well as provincial channels such as Beijing BTV, Zhejiang International Channel and Fujian Straits TV.

Others include the China Movie Channel, TVS (Southern Television), Chongqing TV International Channel, China Yellow River TV, JSBC International Channel, Taiwan’s DiMoTV, Taiwan MAC TV, Da Ai Channel, Sun TV, Hakka TV, Golden Eagle and Dragon TV.

It also carries Channel NewsAsia, AlJazeera English, AlJazeera Arabic, Bloomberg TV, Arirang TV that are already available in Malaysia as well as Malaysia’s five free-to-air terrestrial channels RTM1, RTM2, TV3, NTV7 and 8TV.

Its entry packages starts at RM39.90 a month, while its premium Great Wall Plus package with all channels is sold at RM79.90 a month. The premium package is currently available at RM60 a month during the promotional period, its website said.

It is charging RM100 refundable deposit per set up box (usual RM400) with no contract but customers will need to pay a non-refundable three months advance subscription fee. There is also a RM10 basic fee.

DETV is managed by REDtone’s wholly-owned subsidiary DE Multimedia Sdn Bhd.

REDtone’s ICULS, warrant conversion price fixed at 25 sen

Written by The Edge Financial Daily
Thursday, 21 January 2010 00:24

KUALA LUMPUR: REDTONE INTERNATIONAL BHD [] has fixed the conversion price of its irredeemable convertible unsecured loan stocks (ICULS) and warrants under a rights issue at 25 sen. It has proposed a renounceable rights issue of up to RM41.52 million 10-year 2.75% ICULS, with up to 166.09 million free detachable warrants on the basis of 10 ICULS of 10 sen each with four warants for every 10 shares of 10 sen each held.

In a statement yesterday, REDtone said the entitlement date for the rights issue was Feb 4. It is targeting a a March listing and quotation for its ICULS and warrants on Bursa.

REDtone hoped to raise up to RM41.52 million, utilising up to RM39.12 million for its broadband business infrastructure over a three-year period as it intensified the rollout of its services to meet growing demand, said its group managing director Wei Chuan Beng.

“We continue to receive positive feedback on our broadband offering and judging from the interest of customers towards our ability to offer customised solutions, we are optimistic of achieving a 50% to 100% growth in the number of broadband customers over the next one year,” he said.

Wei said customers from the business and government sector had doubled to 1,000 over the last 12 months, bringing REDtone customers to a total of 500,000. Meanwhile, REDtone’s Shanghai-based operations in collaboration with state-owned China TieTong Telecommunications Corporation Shanghai Branch Company saw growth of about 2% monthly for its discounted voice service, bringing its customer base to over one million.
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