Malaysia’s first and leading 4G service provider and subsidiary of Green Packet Berhad; Packet One Networks (Malaysia) Sdn Bhd ("P1") today received a structured investment funding of US$51 million from a consortium led by Southeast Asia focused investment firm Kendall Court and Leafgreen Capital to fuel its expanding 4G network and customer acquisition activities in Malaysia.
This marks a new stage of growth for the company, as with P1 turning EBITDA positive of RM3.3 million. Moving forward, it is timely for the company to tap into the debt market to fund P1 next stage of growth. This also means that P1 is already operationally self-sustainable as the region’s leading 4G service provider within a mere three and a half years in the business.
Chief Executive Officer of P1 Michael Lai said, "We are pleased that Kendall Court and Leafgreen Capital-led consortium members recognise and appreciate P1’s continuous aspiration to challenge, innovate and excite the Malaysian broadband market. This is a significant milestone in the competitive telecommunications industry and is testimony to P1’s thriving 4G business."
Kendall Court Managing Partner Chris Chia said, "Broadband is a high growth sector globally. We actively support P1’s 4G initiatives with the expansion of its infrastructure as part of the strategy to encourage economic growth in Malaysia." Chia added that P1 is Kendall’s first investment in the telecommunications industry.
Lai added, "The injection from the Kendall Court and Leafgreen Capital-led consortium will be channelled towards P1’s pursuit of delivering Broadband for All focusing on 4G network coverage, capacity expansion and enhance customer experience throughout Malaysia."
P1 in early 2012 announced its 2.0 Evolution plan that addresses three major areas of development namely offering the best of both worlds with 4G in the air and fiber on the ground, spearheading the 4G TD LTE momentum in Southeast Asia and bridging the great business divide with next generation voice services alongside a variety of innovative enterprise solutions.
P1 Fiber was introduced in March this year thus launching the telco as the foremost provider of the best of broadband technologies with 4G in the air and fiber on the ground for consumers, businesses and the public sector. Forging ahead, P1 is also slated to debut in Kota Kinabalu, Sabah this year and will gradually expand to the rest of East Malaysia.
To date, P1 covers about 53 per cent of the population and plans to cover about 65 per cent of the population by end of this year. P1’s subscriber base recorded 401 000 as of the first quarter of 2012.
Since its 4G service launch in August 2008, P1 has invested about US$250 million (RM750 million) in capital expenditure. In June 2010, P1 received a sum of US$100 million (RM321 million) from strategic investor SK Telecom for a 25.8 per cent equity stake.
*Time Division Long Term Evolution