Studio Press

So long as there is a Wi-Fi hotspot within a certain radius, Malaysian mobile users would be able to make long-distance phone calls for free or at discounted rates from end-August.

That is what telco start-up The Red Snapper (TRS) is working to provide – voice over Wi-Fi. Currently, free calls are available but one needs to get onto the Internet to be connected. With TRS' proposition, all one needs is just a mobile phone equipped with a Wi-Fi chip.

TRS inked a deal with Jaring recently to be its network partner so that users can register for the service and download a dialler (soft client) to enable them to make calls via Wi-Fi or global system for mobile communication (GSM) networks.

Even though calls are free and unlimited to at least 23 destinations globally, a monthly charge is applicable for the TRS connectivity. Users could also enjoy free calls within the TRS community, said TRS chief executive officer Braham Singh.

Braham Singh

TRS has also roped in the Perak State Economic Development Corp (SEDC) to be its investor and a shareholders’ agreement was signed two weeks ago.

Singh told StarBiz that TRS would hold over 50% stake in a joint venture – Asia Gateway Communications – and SEDC the balance, to offer the service. The paid-up capital of TRS is RM50mil.

He said besides Malaysia, the service – voice over Wi-Fi cellular or voice over GSM - would be launched in the Philippines, Taiwan and Maldives by end-August.

A new switch would be deployed at Perak’s information and communication technology (ICT) hub at Bandar Meru Raya in Ipoh for the Malaysian connectivity. Currently, TRS has a switch in Hong Kong, where the service is already available. TRS has also decided to set up its headquarters at Meru Raya, which would be a flagship venture for the Perak Multimedia Super Corridor (MSC).

“Why pay premium prices for long-distance calls when TRS has a facility that allows users to make free or discount calls from mobile handsets?” Singh said, adding that interconnection arrangements with large carriers were in place for the IDD calls.

TRS' target market is the enterprise group but the service will also be offered to individuals.

Singh, chief operating officer Rais Hussin and chief financial officer Asad Sultan founded TRS over a year ago. The three partners are long-time friends who decided to slug it out together.

Although they now have the Perak SEDC as investor, Asad said TRS was also in talks with potential technology and private equity investors from Hong Kong and the Middle East –who were keen to take a stake in the company given the exponential growth that was expected from the service.

The company now has an application service provider licence but Rais said to expand the scope of services the company would be seeking network service provider (NSP) licence and MSC status.

Rais said TRS had also secured another project to offer wireless accessibility in Perak from the Perak state government.

“The initial contract is worth RM2.4mil and would be funded by the state,” he said, adding that TRS would initially deploy citywide Wi-Fi coverage in Ipoh, using Altai long-range Wi-Fi base stations (for which TRS is the sole agent in Asia).

“The initial roll-out is expected by end-August this year to coincide with the launch of the Perak MSC,” Rais said.

Perak has an ambitious plan to turn Perak into an ICT hub and has crafted a five-year roadmap. For that it has set aside RM1.3bil. Perak is also one of the several states under the 9MP that would be turned into MSC cyber centres. -theStar