Skip to main content
There's Something About DIGI

OK, the silence on DIGI is deafening. I thought the thing was so obvious, I don't know what else I could add to the fray. How can the government NOT give to DIGI (a block of the 3G spectrum)? So many questions, so few rational minds... so many wink-wink, so many shaking heads... My take (which will be repeating much of what has been said):

1) How can the government NOT give to DIGI? Please explain.

2) How can the government award it to MiTV? Please explain.

3) How can two non-mobile operators use the 3G spectrum more effectively than DIGI?

4) Why are there so many players in 3G, I thought we are trying to consolidate. Certainly 3G has NOT proven to be a profitable venture for any telco (just go search every single country, maybe some operators in Japan and Korea MAY be profitable...just) - it is for companies who are in it for the long haul, with huge sums of capital invested ... like DIGI. Is it because its the only telco with some foreign shareholding - what kind of message are we sending out to long term foreign investors?

5) I can safely say that DIGI and I will be hapy to see how TTdotCom and MiTv will incur huge losses (mark my words) - first they have ZERO customers, ok I am exaggerating, but they will never get close to critical mass, and on 3G!!?? Its like asking my pisang goreng fella to go see a French film festival... not going to happen man.

6) What I fear is that the authorities will ask DIGI to piggy back on the favoured ones for 3G access - DIGI has stressed that they won't. If DIGi won't do that, those two can start pouring money into a black hole - there's a brilliant Cantonese saying - "If you want to go and die, why should I stop you".

7) To me, it does not matter if DIGi gets the 3G or not, but if on merit alone, DIGI should get it. On a business sense, DIGI will also be happy NOT to get it - 3G will cause the licensees to lose money (pretty sure about that) cos we do not have critical mass no matter how you cut it; its a demanding cost-revenue structure; a high capital investment. The only reason why DIGi is unhappy that they didn't get it is that some other do-do bird got it ahead of them, like the French would say... where is the egalite.

8) It is also good DIGI does not get it cos the cost will come up to RM600m-800m in capex. DIGI should not need the 3G as DIGI is very very strong in the prepaid market, which is certainly not fussy about getting into 3G. The sad thing for not getting the 3G spectrum for DIGI is that it is still a strong value-added strategy for the future, albeit a loss making one.

9) Would absolutely hate it if DIGI is forced to buy the license from one of the 2 rent-seekers - please, please don't do that, at least let them lose a few hundred million ringgit first, ok. Why do we never learn?

Be fair, be truthful, be transparent ... oh... just be-have!!


Popular posts from this blog

My Master, A National Treasure

REPOST:  Its been more than two years since I posted on my sifu. This is probably the most significant posting I had done thus far that does not involve business or politics. My circle of close friends and business colleagues have benefited significantly from his treatment.

My Master, Dr. Law Chin Han (from my iPhone)

Where shall I start? OK, just based on real life experiences of those who are close to me. The entire Tong family (Bukit Kiara Properties) absolutely swear that he is the master of masters when it comes to acupuncture (and dentistry as well). To me, you can probably find many great dentists, but to find a real Master in acupuncture, thats a whole different ballgame.

I am not big aficionado of Chinese medicine or acupuncture initially. I guess you have to go through the whole shebang to appreciate the real life changing effects from a master.

My business partner and very close friend went to him after 15 years of persistent gout problem, he will get his heavy attacks at least…

PUC - An Assessment

PUC has tried to reinvent itself following the untimely passing of its founder last year. His younger brother, who was highly successful in his own right, was running Pictureworks in a number of countries in Asia.

The Shares Price Rise & Possible Catalysts

Share price has broken its all time high comfortably. The rise has been steady and not at all volatile, accompanied by steady volume, which would indicate longer term investors and some funds already accumulating nd not selling back to the market.

Potential Catalyst #1

The just launched Presto app. Tried it and went to the briefing. Its a game changer for PUC for sure. They have already indicated that the e-wallet will be launched only in 1Q2018. Now what is Presto, why Presto. Its very much like Lazada or eBay or Alibaba. Lazada is a platform for retailers to sell, full stop. eBay is more for the personal one man operations. Alibaba is more for wholesalers and distributors.

Presto links retailers/f&b/services originators with en…

How Long Will The Bull Lasts For Malaysia

Are we in a bull run? Of course we are. Not to labour the point but I highlighted the start of the bull run back in January this year... and got a lot of naysayers but never mind:

p/s: needless to say, this is Jing Tian ... beautiful face and a certain kind of freshness in her looks and acting career thus far

I would like to extend my prediction that the bull run for Bursa stocks should continue to run well till the end of the year. What we are seeing for the past 3 weeks was a general lull where volume suddenly shrunk but the general trend is still intact. My reasons for saying so:

a) the overall equity markets globally will be supported by a benign recovery complemented by a timid approach to raising rates by most central banks

b) thanks to a drastic bear run for most commodities, and to a lesser extent some oil & gas players, the undertone for "cost of materials" have been weak and has pr…