Broadband war drums grow louder

The mobile war has begun again to another new chapter? Will all this beneficial to us users? I hope so !!!

Competition in the wireless broadband business is heating up as DiGi.Com Bhd (6947) announced plans to sell the iPhone while Celcom Axiata Bhd may do the same.

Currently, Maxis Bhd has monopolised the sale of Apple Inc's iPhone for almost a year, a device that has revolutionised the mobile phone industry.

"The iPhone is undoubtedly a game-changing development," said Maybank Investment Bank analyst Mohd Khair Mirza.

DiGi expects to start selling iPhone 3G and 3GS in the "coming months", chief executive officer Johan Dennelind said in a Bloomberg News report.

Celcom chief executive officer Datuk Seri Shazalli Ramly said the company's infrastructure could support the device but a big hurdle to securing the iPhone deal is the commercial terms that both parties couldn't agree on.

Still, it would consider selling iPhones if its iTunes store, which lets users buy songs online, is available in Malaysia. Currently, that service is still not available here.

Last year, more than 11.9 million iPhones were sold around the world, more than double what was sold in 2008, reflecting its popularity.

For DiGi, the iPhone deal could help it boost its non-voice revenue, which now makes up less than 20 per cent of the group revenue. Close rivals Celcom and Maxis have more than 30 per cent contribution.

Non-voice revenue includes text messages, ringtone downloads as well as Internet surfing.

For the last two years, mobile operators have increased their focus to sell more wireless broadband services, including unlimited data packages for smart phones and laptops.

In a saturated mobile market, besides wooing rivals' customers, operators also need to find ways to make existing customers spend more, and mobile broadband is seen as one of the strategies to boost sales.

Analysts believe that devices like iPhones and other smart phones will help operators do this.

"Small screen Internet allows operators a better chance of charging a premium for Internet usage as its users value the convenience and timeliness this allows, compared to fixed Internet access," said Mohd Khair.

Mohd Khair further explained that under small screen broadband, operators have the opportunity to make more money from application or song downloads, on top of the fixed-price unlimited data package.

The sale of such Internet-ready devices also gives operators an opportunity to cross-sell other services, such as unlimited broadband packages for laptops, which more than doubled last year.

BTimes