Remember the LORD for it is he who gives you the ability to produce wealth and so confirms his covenant... Deut. 8:18

Thursday, August 27, 2009

DiGi sees 3G as growth driver in 2 years

DIGI.Com sees 3G services as a key revenue growth driver in two years as it moves to reduce its dependence on low yielding voice and text message services, a top executive said on Thursday.
Malaysia’s third-ranked mobile operator plans to spend up to RM400 million (US$113 million) a year to build up its 3G capacity over the next few years as it plays catch-up with bigger rivals who have been in the 3G market for more than two years.“Our key positionings are around 3G and Internet services,” DiGi CEO Johan Dennelind told Reuters in an interview.

Dennelind said 3G broadband will be “a significant part of the revenue growth” to DiGi in 2011, and he expects traditional voice and data services to drive growth for the time being.
The big capital outlays required for 3G broadband services would not affect DiGi’s dividend policy, Dennelind said.“We are a dividend story. Our dividend policy is to pay out at least 50 percent of net earnings. I don’t see any reason why we should change that,” he said. - Reuters

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