INTERCONNECTION is key but not new. What it means essentially is that all celcos and telcos need to compete to gain access to another player’s network. It’s a universal trend and one that has been brought about by the pressures of competition.
Undoubtedly, as YTL Communications Bhd (YTL Comms) joins the league of telecommunications players, it has to deal with issues such as interconnection.
YTL Corp Bhd group managing director Tan Sri Francis Yeoh is quick to say: “I hope the telcos will keep to their word. Once that is done, our November deadline will be kept.’’ (YTL Comms is a unit of YTL Power Bhd, in which YTL Corp has a stake.)
The group is under pressure to stick to the deadline after its July rollout was delayed. Any more delays and the market may be less forgiving.
But if they wing it and manage to carry out the nationwide roll-out, then other players may sit up and take note as that would mean competition from voice, video, mobile and broadband.
YTL is hoping to shake up the market and is presently testing the devices that will be launched with the service; network build-up is also taking place while the awareness process is going to start soon and the branding is in the works.
If it succeeds, the speed of data transmission can be over five times faster than the current 3G data speed.
“You talk about brain drain because there is no economic model to bring them. They seek better jobs outside, but with 4G, things will change.
“We will have the Ali Babas and the Googles created here. There will be a shift in the way we live, work and play,’’ says Yeoh. He cites the example of how the emergence of Bangalore as an IT hub for India has changed the way business is conducted in India, creating enormous opportunities.
YTL’s foray into the telecoms sector is by no means an accident. It had begun small from cards to live feed for the Express Rail Link. Given the smorgasbord of businesses under its umbrella, it needed the technology to integrate, manage and operate. Being in the infrastructure business, ICT was integral. It used ICT extensively for all its businesses, from power plants to restaurants and homes and even has a blog to link up the community.
“It is by no coincidence that we are in the 4G business,’’ he reiterates.
So when WiMAX licences were up for grabs, they marched ahead to get one. The licence to operate and offer 4G services is held by YTL e-Solutions Bhd, a company listed on the ACE market. YTL e-Solutions was set up to incubate companies with the advent of ICT.
WiMAX technology is in the forefront of next generation technologies even though globally, the fight for 4G supremacy is between WiMAX and LTE (long term evolution).
“With WiMAX 4G, we could bring in efficiencies of triple (voice, data and video) play, and cost to the customer is lower. His analogy of 3G and 4G is like black and white TV and a colour TV. With the taste of colour TV, a person’s demands and experience changes and he would not go back to black and white TV.
“In two year’s time, no one will live without triple and quad play, just like once upon a time when we did not have mobile phones. Today we cannot live without mobile phones. The whole experience will be different and this is the change in dynamics,’’ he says.
“And don’t expect it to come at cheap prices.
“It depends on the consumer and on what they want. We will be competitive.’’ he says.
YTL Comms is investing RM2.5bil in the venture. Its partners include Cisco, Samsung, Clearwire, Intel and CGT Semiconductors. It also has tie-ups with Telekom Malaysia Bhd and Fiberail for backhaul operations.
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