Studio Press

Toshiba America Electronic Components, Inc., (TAEC) and its parent, Toshiba Corporation, today announced an expanded line-up of large capacity miniSD Memory Cards with the introduction of a 2-gigabyte (GB) capacity card. The miniSD Card is much smaller than a standard SD Memory Card but delivers increasingly large capacity. Its primary application is in mobile devices with miniSD slots, but it can also be used in standard SD slots with an adapter.

"As mobile phones increasingly offer high-resolution cameras and support for digital music, demand is growing for a small, versatile, high capacity storage device for images and music. For the growing percentage of cell phones equipped with a miniSD Card slot, Toshiba's new 2GB card addresses these requirements," said Brian Kumagai, business development manager, NAND Flash, for TAEC.

With the addition of the new 2GB miniSD Card, Toshiba will expand a product line-up that already extends up to 1GB.

Key Features 1. The 2GB storage capacity is ideal for mobile phones with megapixel cameras and music player functions and is able to store up to 35 hours of music. 2. Maximum writing speed of approx. 5MB/s(4) 3. Adopts CPRM advanced copyright protection function

Specifications Name of Product: 2GB miniSD Memory Card Maximum Write Speed: 5MB/second Compatible Interface: SD Memory Card standard compatible Power Supply Voltage: 2.7 - 3.6V Compatible Standard: SD Memory Card standard compatible Exterior Dimensions: 20.0mm(W)×21.5mm(L)×1.4mm(T)

Pricing and Availability The Toshiba 2GB miniSD Memory Card will be available in June 2006 priced at $109.99.

The world of digital cameras just got bigger and smaller at the same time. Using a tiny 1.75-micron pixel design, Micron Technology, Inc., has built the world’s first 8-megapixel image sensor in a 1/2.5-inch optical format, the standard size for mainstream digital cameras. This new sensor comes loaded with features and functionality that will catapult Micron-equipped cameras into the next generation of digital cameras featuring high-resolution still images, ultra-fast image capture and vibrant high-definition video.

The company today unveiled a prototype of an 8-megapixel image sensor that packs a punch with incredible capture rates at full resolution and stunning high-definition (HD) video capture. Because of its high resolution, the sensor captures large, crisp pictures (11-inch by 14-inch) or can be used to zoom-in and print just a portion of the image without sacrificing image quality.

Used in continuous-shot mode for digital still cameras, the sensor is capable of bursting more than 10 pictures a second at full 8-megapixel resolution and more than 30 pictures a second at 2-megapixel resolution. With this high speed capability, it is now possible to capture that perfect moment like a child’s first soccer goal. Also given its high-speed, the sensor allows for cameras to have advanced features like image stabilization for reducing the effect of blurred images typically caused by jittery hands and fast auto-focus response, resulting in sharper images that are important for taking those priceless, spontaneous snapshots.

The sensor also enables a digital camera to capture and playback HD video, which equates to shooting video at 30 frames per second (fps) in 720p (progressive) format. As such, it complements Micron’s 5-megapixel image sensor that also supports HD video and is currently shipping in volume.

“As the world’s leading supplier of image sensor solutions, we continue to expand the envelope, bringing new experiences and advanced functionality to digital photography,” said Steve Appleton, Micron chairman, CEO and president.

Additionally, continuing its heritage in imaging innovation, Micron announced its work on a 1.4-micron pixel and unveils pictures taken with test chip. By shrinking pixel size, Micron will bring more resolution to consumer devices such as digital cameras and mobile phones without sacrificing image quality, while still maintaining the small form factor required for these applications.

“With the 8–megapixel image sensor being designed with our latest 1.75-micron pixel, and the encouraging results we’re seeing with the next-generation smaller pixel at 1.4-microns, Micron leads the industry in both smaller and higher performance image sensors, enabling our customers to create new and exciting camera products,” said Bob Gove, vice president of Micron Technology’s imaging group.

Micron Unleashes New Class of Image Sensors for High-End Camera Phones In camera phones, where space is at a premium and image quality is traditionally negligible, Micron’s 8-megapixel image sensor could revolutionize the market. As high-end mobile phones trend larger with more features and functionalities designed into the handset, Micron’s new 8-megapixel image sensor becomes an attractive fit. And with the new 1.75-micron pixel design, Micron continues to enable the industrial design of today’s popular thin and slim phones while increasing the resolution. For example, given the standard 1/4-inch optical format of today’s mobile phones, a sensor built on Micron’s 1.75-micron pixel can deliver a 3-megapixel resolution, without changing the handset’s form factor.

Malaysia’s mobile subscriber base hit the 20 million mark as the penetration level reached a staggering 80% in March this year. However, experts are predicting that this could go up to 85% by year-end despite a saturating market.

A slower single-digit growth in subscribers is seen for the second half of this year (H2) compared with double-digit growth rates charted previously.

Analysts expect that by year-end, the country’s mobile subscriber base would reach 22 million, of which a third would be prepaid users, considered by some operators as active mobile subscribers.

“It would be a challenging second half, with competition heating up again in the prepaid segment since price cuts have already been introduced for the post-paid segment.

“Churn would be another issue operators have to face in H2,” an analyst said, adding that some downside in the post-paid segment could be expected.

The country’s three celcos recently announced their financial results for the first three months ended March 31.

Maxis Communications Bhd remained the market leader, controlling 40% of Malaysia’s mobile subscriber base, Celcom (M) Bhd came in second with a 35.2% market share, while third-placed DiGi.Com Bhd’s base inched up to 24.8%.

Meanwhile, a mobile subscriber base of 20 million means that four in five persons are mobile subscribers but in reality, one person may own one, two or even three SIM cards.

Of the 20 million, analysts said about 17.5 million are prepaid users, where the churn is said to be nearly 60%.

Six months ago, the country’s mobile penetration was at 68.2%, with mobile subscribers reaching 17.5 million out of a population of nearly 26 million.

The analyst said there was bound to be some double counting, given the widespread prepaid penetration but with churn, the market should “stabilise at some point”.

He said the ongoing registration of prepaid users should help weed out the non-active users and could possibly give a more accurate picture of the actual mobile base, although this would be more evident early next year.

Getting a new subscriber in a saturated market and hoping to earn more from that subscriber can be a challenge, given that consumers move networks for the best bargains, and this would continue to put pressure on celcos’ average revenue per users (Arpu) in H2.

For the first quarter of this year, the post-paid Arpu for Maxis, Celcom and DiGi stood at RM137, RM109 and RM96 respectively, while that for prepaid was RM49, RM38 and RM51 respectively.

An analyst expects single-digit growth in revenue for the three celcos for the full year.

For the first quarter of this year, Maxis’ revenue grew 1% quarter-on-quarter despite a subscriber growth of 4% due to weaker Arpus, said an analyst in his report.

During that quarter, Maxis earned RM484mil in net profit (from its Malaysia operations) on the back of RM1.69bil sales, up from RM1.68bil in the previous quarter.

Celcom’s revenue, however, fell to RM1bil in the first quarter of this year from RM1.1bil in the fourth quarter of 2005, while that of DiGi rose to RM861mil from RM826mil.

Maxis still dominates in market share in terms of revenue at 47%, Celcom at 29.1% and DiGi at 23.9%, compared with 46.3%, 30.9% and 22.8% respectively in the last quarter of 2005.

An analyst said that while the second half of 2006 would be tough for celcos, the “risks would heighten with the expected introduction of mobile number portability by year-end.” -theStar

Dopod International (S) Corp. Pte Ltd, a leading PDA phone and smart phone provider, unveils a veritable work of art with the launch of the Dopod StrTrk S300, the slimmest and lightest deluxe clamshell smartphone running Windows Mobile 5.0 in the market today.

“We are proud to be the first to introduce this innovative take on mobility to Asia,” said Jack Tong, CEO of Dopod International Corp. “The Dopod StrTrk S300 is the perfect blend of form and function, and exudes an irresistible appeal to discerning mobile users who value advanced design, a svelte form factor and excellent features.”

Dangerous Curves Ahead A wafer-thin device that is set to become the ultimate lifestyle accessory, the StrTrk S300 channels the street vibe of today’s urban sophisticate. This flyweight incarnation of the previously bulky smart phone ups the ante on mobile style with its subtly curved edges, matte black exterior and ultra-modern “pothole” secondary screen. At a mere 99 grams and 15.8mm thin, the compact Dopod StrTrk S300 slices through previous notions of thick clamshell phones.

Entertainment at Your Fingertips Click on the Dopod StrTrk S300’s external music keys for easy access to your favourite tunes. Set your play modes and manage your playlists by sorting by artist, genre or albums. Capture memorable experiences without recording time limits, then replay them on the Dopod StrTrk S300’s large and lucid 2.2”, 65K color LCD display. Play the latest Windows Mobile 5.0 smart phone games with the five-way navigational button.

Add a personal touch to the Dopod StrTrk S300 by attaching photos to individual contacts. The caller ID functions ensure that you know exactly who is calling you. The S300 also supports high-quality 40 chord polyphonic ringtones, as well as MP3, WMA and AAC files. Customise your wallpaper and view it on the 1.2”, 65K color LCD secondary screen for double the fun.

Log in to Pocket MSN at the click of a button to be in touch with friends, drinking buddies and colleagues while on the go using MSN Messenger. Pocket MSN allows you to also access Hotmail, the MSN portal, and surf the web anywhere you go, with all your desktop settings intact!

Superior Functionality and Ease-of-Use The Dopod StrTrk S300 boasts a full range of connectivity and productivity options. Make plans to paint the town with your friends by contacting them anytime, anywhere with the S300’s extensive connectivity including quadband GSM, Bluetooth v1.2 as well as GPRS and EDGE.

The Dopod StrTrk S300’s new 3D-animated interface and three-by-three grid arrangement of icons enable users to navigate between functions easily. Use the bundled Clearvue Document Viewer for effortless viewing of Microsoft Word, Excel, PowerPoint and PDF files. Store files with the S300’s 64 MB Built-in ROM and 64 MB RAM with persistent storage and expand your storage options easily via a Micro-SD card slot.

Enjoy greater productivity on the go by utilizing the rich capabilities of Windows Mobile 5.0. With Microsoft’s Direct Push Technology, you will receive emails on your smartphone the minute email arrives in your inbox **. In addition to the push mail capabilities, you can also ensure that your contacts, Windows Media® Player 10 Mobile playlists, schedules and emails are always up-to-date with ActiveSync, which updates data between your PC or laptop in a snap.

“The Dopod StrTrk S300 further extends the breadth of Windows Mobile devices, and allows users to choose a device that matches their lifestyle and specific mobility needs. The Direct Push Technology in Windows Mobile 5.0 provides users with real-time, secure access to all of their Microsoft Outlook information including contacts, calendar appointments and tasks while they are on the go”, said Jason Lim, Regional Director, Asia Pacific & Japan, Mobile and Embedded Devices Division, Microsoft Corp. "With its rich productivity and multimedia capabilities, users can make a fashion statement with the S300 without compromising their productivity!"

Sony Ericsson today announces the V630i, exclusively for Vodafone. The V630i uses its 3G capabilities to deliver the perfect mix of mobile phone, music and multimedia applications at high speed and superb quality.

What makes this phone extra special is its support of Vodafone’s new Radio DJ service, an innovative, interactive music streaming service that allows the creation of your own music channels by rating tracks as you listen. The more you listen and rate, the more intuitive and personalized the music channel becomes. Tracks can also be bought directly using the service and, with the supplied 256MB Memory Stick Micro™ (M2™) card, the V630i can store as many as 230 tracks to take with you wherever you go. A stereo headset is supplied, so you can enjoy this superb choice of music in full stereo quality.

The V630i also effortlessly handles the content-rich services from the world of Vodafone live! with 3G such as Mobile TV, video messaging and video telephony. In all, the V630i is a dynamic phone that is fun to use, appealing to young music lovers seeking the freedom and choice offered by the latest mobile technologies.

“The V630i is a phone that will bring music, 3G and Vodafone live! with 3G to a wider audience,” says Jan Wäreby Corporate Executive Vice President, Head of Sales and Marketing, Sony Ericsson. “It’s the perfect device to get the best out of Vodafone’s 3G services such as Vodafone Radio DJ. With live video streaming, super-fast web browsing and gaming, you couldn’t ask for more fun out of a mobile phone.”

With Vodafone’s Radio DJ you can use your phone to tailor-make music channels, buying and downloading songs from the current music programme direct to your phone. The V630i combines its 3G capabilities with innovative Sony Ericsson technology to ensure a fast, responsive service with excellent audio quality.

"Combining Vodafone's advanced 3G services such as full track music downloads and Vodafone Radio DJ with Sony Ericsson's know-how in music phones delivers a superior customer experience," said Jens Schulte-Bockum Director of Terminals, Vodafone. "Vodafone Radio DJ gets to know customer's tastes over time. It is as easy as listening to the radio but on a mobile which always plays your favourite songs."

The V630i handles all of the key download formats, so you can import music via a PC from a variety of music services or from your own CD collection. It is provided with with a 256MB Memory Stick Micro™ (M2™), for new generation, highly compact mobile storage.

The sound quality of the V630i is so good you’ll want to share your music with friends, and the MPS-60 portable speakers are a perfect boost for the music stored in your phone: just plug them into the V630i and play! Or enjoy your music through your own Hi-Fi with the MPP-60 Music Power Pack, which plugs your phone into your Hi-Fi while it sits in a cradle recharging. For the full home Hi-Fi experience, try the Home Audio System MDS-70, a neat phone cradle which connects to a set of high performance speakers. Developed by Sony Corporation and Sony Ericsson, the MDS-70 delivers superb sound quality thanks to Sony S-Master, the hi-fi technology that gives a full, rich sound to all types of products, from car audio systems to TVs.

Everything about the V630i supports the fun-loving, youthful lifestyle. Its sporty design is Vibrant Black with neat orange highlights that pick out direct keys and the loud speaker on the back of the phone.

Simplicity in design is also applied to the user interface, which gets you around the phone with the minimum of clicks. Accessing the music player is a single click away no matter what you’re doing thanks to the dedicated music hard key; and rocker keys reach your favourite applications immediately.

Beyond music, the V630i features a 2 Megapixel camera with digital zoom, consumer email, a full HTML browser and an extra large, 1.9” colour display. Business-friendly applications include PC-synchronisation, tools and software. And for those wanting to take calls easily whilst on the move there’s a full choice of bluetooth enabled headsets.

The Sony Ericsson V630i is a UMTS 2100 device exclusively for the Vodafone Group and rollout is planned across EMEA and APAC from June.

V630i – Features at a glance:

• Entertainment
• Vodafone Radio DJ
• Music player (with MP3, AAC, AAC+, eAAC+ support)
• OMA DRM phase 1
• Phone speaker
• Full streaming Audio/Video
• Polyphonic >64 ring tones
• Java MIDP 2.0
• 3D games
• Sony Ericsson Music DJ™
• SE Video DJ™
• SE Picture DJ™
• Mobile TV on Vodafone live! with 3G
• Stereo headset
• 256MB M2 card
• Imaging & Messaging
• 176x220 pixels, TFT 1.9”
• 262k Color display
• 2.0 Megapixel camera
• VGA Video Telephony camera
• Consumer push email
• 2x digital zoom
• Video recording/playback
• SMS and MMS
• QuickShare™
• Instant Messaging
• Connectivity
• UMTS 2100
• Bluetooth™ EDR
• PC Tools & Software
• USB 2.0 Mass storage FS
• USB charging
• USB cable
• Fast port connector
• External antenna connector
• Flight mode
• HTML Full Browser with RSS

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Optus, Palm and Research In Motion (RIM) today announced the availability of BlackBerry Connect for the Palm Treo 650 smartphone on the Optus network in Australia. BlackBerry Connect enables new and existing Treo 650 users to benefit from many popular features of the “push”-based BlackBerry architecture via BlackBerry Enterprise Server.

With BlackBerry Connect, Optus customers have a greater choice of mobile devices that are supported by the robust and secure capabilities of BlackBerry services and a wider choice ofwireless email solutions on the feature-rich Palm Treo 650 smartphone.

Paul Kitchin, marketing director, Optus Business, said, “The Treo 650 has become an important part of Optus’ enterprise mobile data strategy. And now, with the addition of BlackBerry Connect, the Treo 650 will appeal to an even greater number of our corporate customers.”

“The Treo 650 smartphone provides Optus customers with a way to simplify their business and personal lives with the increased mobility offered by an all-in-one device, and with BlackBerry Connect they also have greater flexibility in their choice of enterprise messaging platforms,” said John Hartnett, senior vice president of worldwide sales and customer relations for Palm. “Expanding our geographic reach is one of Palm’s key objectives, and we continue to meet users’ mobile needs with a broad range of world-class, enterprise-strength mobile-computing solutions.”

Norm Lo, vice president for Asia Pacific at RIM, said, “Millions of corporate and government users around the world already rely on the BlackBerry architecture and infrastructure to remain connected to communications and information while on the go. We are now very pleased to be working with Optus and Palm to launch BlackBerry Connect on the Treo 650 and expand the market opportunity for BlackBerry in Australia.”

BlackBerry Connect for the Treo 650 smartphone supports the following features:

• “Push” Corporate Email delivers messages automatically - and wirelessly - to the Treo 650 smartphone’s VersaMail inbox. Changes to the inbox, including read/unread status and deletion, can be automatically synchronized between the user’s email account and the Treo 650. • Wireless Calendar Synchronization keeps the Treo 650 smartphone’s built-in Calendar up to date remotely, allowing users to receive, accept or decline meeting requests on the go. • Attachment Viewing lets users view Excel, Word, PowerPoint, and PDF documents while on the road. • Remote Address Lookup (RAL) allows users to search their corporate directory wirelessly for email addresses without the need to download every name to the Treo 650. • Enables centralized device management, including support for IT policies such as over-the-air device disablement and password device lock, as well as end-to-end security with Triple DES encryption. -By Jonathan Cheah

The country's high terrain and highrise buildings have hampered Celcom (M) Berhad's efforts at achieving 100% coverage nationwide.

Telekom Malaysia Berhad chairman Tan Sri Md Radzi Mansor said breakdown occurred when high terrain or tall buildings blocked mobile signals from a telecommunications tower.

This had caused network users to face disruptions during calls, he said.

Celcom is Telekom Malaysiaar's cellul arm.

He said the company had identified the problem and was working towards improving its services .

“Our coverage at the moment is 98% of populated areas with more than seven million customers nationwide,” he told reporters after attending the opening of Kedah Telekom’s new building yesterday.

He was commenting on Prime Minister Datuk Seri Abdullah Ahmad Badawi’s statement that telecomunications companies in the country failed to provide good coverage.

Sultan of Kedah Sultan Abdul Halim Mu’adzam Shah opened the new building.

On another note, Md Radzi said Celcom 3G mobile network was now available here to usher in the 11th Sukma Games which would begin next week.

He said Alor Star would join Klang Valley, Penang, Malacca, Johor Baru, Genting Highlands and two other locations in Kedah – Sungai Petani dan Kulim – to receive the coverage. -theStar

A NEW Sony Ericsson Service Premier Centre has opened at Avenue K in Jalan Ampang.

It is said to be the first of its kind in the country.

It is the first centre with a 11/7 system, which means Sony Ericsson's customers and dealers can conveniently drop by with their set for any type of services, seven days a week from 11am to 8pm.

Service duration ranges from a minimum of one hour to a maximum of three days depending on the service needed.

Ixsun Sdn Bhd executive director Ronald Liew said the new centre provides a one- stop solution for mobile phones from product definition and development to pre-sales service.

“The after-sales service includes operator’s field testing, product testing, configuration services and customer care,'' said Liew.

Customers can also purchase Sony Ericsson accessories from the centre.

Besides sales and services, the centre is also conducting classes for customers who are interested in maximising the usage of their handset, especially their Smart Phones series.

Liew said the company was also looking into setting up more Sony Ericsson Service centres in other areas like Johor Baru, Malacca, Sabah and Sarawak.

For more information, call 03-2166 6989.

Ixsun Sdn Bhd is located at Complex Avenue K, Lot L2-3A, Level 2, No 156, Jalan Ampang. -theStar

Motorola Asia Pacific Customer Solutions Centre (CSC) has invested RM36mil in the Advanced Communications Laboratory here to reflect the company's continued commitment to customer support and technology innovation.

Motorola country president (Malaysia) Datuk Robin Seo said yesterday that the setting up of the laboratory and the facilities available would enable the bulk of Motorola's products to be designed, developed and tested at source here.

The laboratory has been operational since February.

Seo said the Asia-Pacific CSC was one of three worldwide, representing an extension of Motorola’s existing TETRA (Terrestial Trunked Radio) and APCO (Association of Public Safety Communications Officials)-based radio communications systems and applications for specific markets like public safety and rail transport.

Motorola’s other two CSCs are in Berlin (Germany) and Chicago (the United States).

Seo said the laboratories housed at the CSC enabled the centralisation of all engineering and testing activities.

“It is also to provide end-to-end customer engineering support and, eventually, facilitating faster time for marketing,” he said at a media familiarisation tour of the Advanced Communications Laboratory yesterday.

Motorola country sales manager (networks and enterprise) Mohd Asri Hassan Sabri Asri said the company was the only communication vendor that had the expertise to design, manufacture and implement mission critical communications system based on APCO and TETRA. -theStar

THE twilight years of the Roman Empire saw a seemingly relentless push towards expanding its borders contrasted with the gradual decline of its base of power. Could Telekom Malaysia Bhd (TM) be facing a similar situation?

On an annualised basis, the telco’s just-released first quarter numbers were around 30% below market expectations, dragged down by the uninspiring performance of the fixed line operations and subsidiary Celcom (M) Bhd.

Mitigating the downturn was a marked increase in earnings from overseas operations and foreign exchange, led by the contribution of TM’s Indonesian unit PT Excelcomindo Pratama (XL).

For the first quarter of its 2006 financial year (FY06), TM recorded a net profit of RM519mil on the back of RM3.8bil in revenue, up 39% and 11% respectively over the previous corresponding period.

As for Celcom, despite a 29% quarter-on-quarter (qoq) increase in net profit to RM180.3mil and subscriber expansion of 5%, both fixed line and cellular services recorded a decline in revenue.

Datuk Abdul Wahid Omar

The fact that Celcom’s revenue registered a 6% drop both qoq and year-on-year (yoy) gave analysts grounds for concern.

“The fact of the matter is that the drop in Celcom’s revenue is disappointing, especially when compared with the likes of DiGi, which posted revenue growth of 4% qoq and 38% yoy,” says a market observer.

In addition, Celcom’s average revenue per unit (ARPU) continued its downtrend, with the prepaid sector registering a drop of 14% compared with a 4% decline in the postpaid sector.

Earlier this week, TM chief executive officer Datuk Abdul Wahid Omar explained that the decline in Celcom’s revenue was mainly due to the significant churn that the company experienced among its postpaid customers, one that had a “financial sting” on first quarter results.

Wahid was referring to the large churn in the postpaid sector that was evident in the fourth quarter of last year. Reports estimate the churn’s impact to be a net decline of some 76,000 subscribers in that quarter, though Wahid points out Celcom added 20,000 new customers in the year’s first quarter as well as 35,000 new postpaid customers in April.

He also highlighted TM’s Minutes plan, introduced in the second quarter of last year, as a reason for the churn. TM launched three new postpaid plans this week, including a simplified Minutes plan, in an effort to address the decline in its domestic market.

However, there has been market chatter that Celcom has relaunched its plans so many times that consumers may well be confused.

One local outfit believes that Celcom’s erosion has reached a critical point, a level that needs to be addressed lest TM experience a significant loss in investor confidence. The house believes that Celcom has yet to launch any services or plans that are likely to reverse its ARPU decline.

A foreign research house has a more sanguine outlook, keeping its eye on Celcom to show improvements in quarters hence as new products and services are launched. The house expects Celcom’s contribution to pick up after a weak first quarter as the full impact of its new initiatives are translated into earnings, in line with increased subscriber growth in April and reduced churn.

TM’s fixed line revenue softened by 12% yoy to RM1.64bil, with the decline attributed to lower ARPU for the business and residential sectors by 18% and 24% yoy respectively.

Wahid’s take was that the decline represented a global trend whereby calls are migrating from fixed lines to mobile networks, adding that TM planned to slow the decline by managing credit and offering attractive packages.

While analysts were mixed as to TM’s first quarter results, some remain optimistic that earnings would pick up while others laid out the warning signs, all emphasised the importance of TM’s international operations.

These operations were the star performers for TM, largely due to the performances of XL and Sri Lanka-based Dialog.

Reports place overseas contributions at 19.6% to group profits and 24.3% to group revenue, up from 15.2% and 9.9% during the previous financial year.

TM’s first quarter net profit of RM519mil was boosted by RM213mil in foreign exchange gains, of which RM161mil or 75% was contributed by XL. Equity income from Singaporean subsidiary M1 Mobile was offset by foreign exchange losses from the stronger Singaporean dollar.

According to a foreign research house, foreign mobile revenues rose 177% yoy, making up 137% of revenue growth and more than helping to offset TM’s poor home market. XL, which became TM’s subsidiary in the fourth quarter of last year, reported a 34.5% increase in operating profit to some RM96mil for the first quarter ended March 31, 2006, compared with the same period last year. The company’s net profit came in at RM145mil compared with a net loss of RM1.3mil during the first quarter last year, while sales picked up 39% to RM398mil.

This improved performance was largely attributed to subscriber growth. During the same period, XL registered a 151% increase in the number of subscribers to a total of 8.2 million, meaning that it has exceeded the 6.8 million subscribers signed to Celcom as at the end of last year.

TM may have more up its sleeve when it comes to its overseas operations, following Wahid’s confirmation that it is considering selling shares in Spice Telecom Ltd, the company’s 49%-owned Indian mobile phone company. Reports in India speculate that TM is planning to float Spice by November, a date that Wahid did not confirm.

However, the spectre of competition may haunt TM here as well, as reports indicate that TM does not plan to expand Spice’s coverage nationwide in India. This approach contrasts with Maxis’ 74%-owned Aircel, which has applied to expand across India.

The danger here is that TM risks missing the boat, especially given the pace of developments in India’s telecommunications sector.

Having said that, reports from the Indian media link national investment arm Khazanah Nasional Bhd with India’s Idea Cellular, giving rise to speculation that Idea and Spice could be merged, thereby expanding Spice’s access.

Going forward, continued strength in TM’s foreign operations is widely expected to drive the group’s earnings, with rising overseas contributions expected to offset the erosion of TM’s domestic operations. Expansion into the Philippines-based mobile operator Sun Cellular has also been mooted, while TM may also acquire a stake in Saudi Telecom Co.

Wahid has gone on record to say that TM is still interested in strengthening the company’s presence in Asean and Asia. He expects TM’s overseas operations to contribute a third of its earnings for FY06.

Capital expenditure has picked up considerably, however, rising 44.6% yoy domestically and shooting up 287% internationally (due to XL’s consolidation - otherwise international capital expenditure reduced).

TM is spending RM6.2bil in capital expenditure this year, up 51% from FY05.

RM3.2bil will be spent domestically and RM3bil will be spent abroad, including RM1.5bil pumped into XL.-theStar