SHAH ALAM: DiGi.com Bhd is almost ready to provide long-term evolution (LTE) speeds on its network and has already upgraded 50% of its sites across Malaysia to cope with the increased bandwidth speeds.
“We are still waiting for the final conclusion and final allocation. We are ready (on most sites) and this also involves other infrastructure upgrade.
“Part of our network modernisation was to put in place a network that is actually capable to cope with LTE type of services. So we are ready (on most sites) but there has been not (yet) any final communication to us on this matter,” DiGi chief executive officer Henrik Clausen told StarBiz in an interview.
Analysts who cover the telecommunications sector said LTE, also known as 4G, which is the next generation after 3G technology, offered higher speeds and would be the next growth driver for DiGi.com, given its appeal to the younger generation.
They added that the expected high take-up rates would compensate for the anticipated decrease in voice revenues moving forward.
Henrik said LTE could also boost the customers' adoption of smartphones and tablets as the newer devices would usually require the use of modernised networks to cope with today's technological advances.
“Moving forward, especially with LTE, data will be the main growth driver. LTE gives a better opportunity for us to serve larger screens in a more cost-effective way at price points that the customer is willing to pay,” Henrik said.
“An LTE network is an added opportunity on top of the 3G network. That is why we think that if we get the spectrum as seen in Norway (through Telenor, DiGi's parent company).
“We think that is an opportunity that we like to take and that Malaysia should take as well,” he added.
A case in point was the recent launch of Apple's iPhone 5, which is equipped with the LTE type of technology and will require an upgraded LTE network to make full use of its potential.
Henrik said DiGi was hoping to launch the LTE-ready iPhone 5 by the fourth quarter of this year.
“The launch will happen the way it used to happen with the past iPhone launches, with a very coordinated fashion across the Malaysian market with all the main three telcos,” Henrik said.
Earlier reports had stated that the Malaysian Communications and Multimedia Commission (MCMC) had named nine companies as recipients of the 2.6GHz spectrum band, which the telcos will utilise to provide LTE services.
These companies are DiGi, Celcom Axiata Bhd, Maxis Bhd and U Mobile; and four WiMAX players: Asiaspace Sdn Bhd, Packet One Networks Sdn Bhd, REDTone International Bhd and YTL Communications Bhd.
In June 2011, the regulator called for a re-submission from the players. A final decision on the award and allocation was supposed to have been announced in August 2011.
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