REDtone International Bhd (REDtone) expects its TravelFON, a roaming-only phone which will be available for rent to travelers by May, to boost its revenue in 2007 and be a key revenue contributor in the coming years.
Group managing director Wei Chuan Beng expects the contribution to gradually increase as more TravelFON units are made available to travellers.
“TravelFON is a result of intensive R&D efforts and in-depth analysis of market needs. It shows great promise and has the potential to be a global brand,” he said in a statement on April 25.
He was optimistic it would strengthen group revenue and help grow earnings well beyond Malaysia where the discounted call market is facing stiff competition.
“Assuming we can achieve just 0.1% of the global roaming market in a few years, we are already looking at US$50 million (RM182.50 million),” he said.
TravelFON, which is available for rent to travelers leaving Malaysia and those coming into the country, allows users to retain their mobile phone number.
By next month, nine countries - US, Australia, Indonesia, Thailand, Hong Kong, China, Pakistan, Singapore and Malaysia - will be within the TravelFON coverage, and REDtone aims to increase this number to 15 countries by year end.
Travellers can pick up and return their TravelFON at the booths at the Kuala Lumpur International Airport (KLIA) in Sepang, making it the first airport in the world to offer the product.
Wei also expects China to be an important revenue contributor for REDtone moving forward.
Its China unit - a collaboration with China TieTong Telecommunications Corporation Shanghai Branch Company - launched its China TieTong e-secretary discounted call packages for consumers in February this year.
According to Wei, acceptance level for the service is high and the company plans to introduce corporate call packages within the next three months.
REDtone’s China operations is 75% owned by REDtone with the Kuok Group holding the remaining 25%.
REDtone also has operations in Pakistan and most recently, ventured into Singapore. It is aiming for its overseas business to contribute 50% to group profit by FY’08.
As part of its growth strategy, REDtone also hopes to be a mobile virtual network operator (MVNO) where it will work with telco providers and use their infrastructure to offer a full suite of mobile services from voice to data and content.-theedgedaily
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