KUALA LUMPUR: Chief executive officer of telecommunications provider U Mobile Sdn Bhd, Wong Heang Tuck, said that the group will work on improving its performance before planning an initial public offering (IPO) on Bursa Malaysia.

“We do not have any listing plans at this point in time. That is the ultimate aim. We have to show that we are able to increase our market share, revenue and profitability before determining when and how we are going to be listed,” he told The Edge Financial Daily yesterday after a media briefing on the group’s future plans.

Asked about the timeline of a possible IPO, Wong said that the group may be listed on the exchange within the next five years, but declined to comment further.

Meanwhile, Wong highlighted that the group recently completed the replacement of its business support system costing some RM80 million, which entailed the group’s billing system.

“... So, next year it will be to enhance our network,” he said.

The group announced yesterday its aggressive expansion plan to rollout 2,000 new network points, consisting of 1,000 3G and 1,000 LTE sites in key areas including Kuala Lumpur, Seremban, Port Dickson, Nilai, Ipoh, Penang, Johor Baru, Muar, Kluang, Segamat and Batu Pahat.

A total investment of RM1.5 billion has been allocated for the expansion.

Wong said that the majority of the new sites will be completed by the second quarter of 2015.

U Mobile currently has a total of 4,400 sites across Malaysia, including the 3G Radio Access Networks Sharing with Maxis Bhd, in areas where the group does not have its own network such as in Sabah and Sarawak.

The group said that it will move into Johor Baru and Penang next year, and into key towns and cities across the West coast over the next two years.

However, improving the network sites alone will not be enough to improve U Mobile’s market share, said Wong, so the group has to come up with more innovative products and services to compete with other players in the industry.  

“You just can’t stay still. You have to keep innovating, expanding, upgrading and enhancing the network. There’s no such thing as staying still. That’s what makes it exciting,” he said.

By the end of 2015, the group aims to improve its revenue by 50%, and increase its market share to 10% from around 6% to 7% currently.

Asked if the group has any plans to expand overseas, Wong said that there is still more to be done in Malaysia and that the group is very much focused on improving its local operations.

U Mobile is Malaysia’s fourth-largest mobile phone operator by subscriber numbers. The group offers various mobile services and has nationwide 3G coverage. Its notable stakeholders include Malaysian billionaire Tan Sri Vincent Tan.

The group was awarded Frost & Sullivan’s “Most Promising Service Provider of the Year” in 2012.


This article first appeared in The Edge Financial Daily, on September 10, 2014.