Celcom Axiata Bhd’s (Celcom) accelerated capital expenditure (capex) of RM825 million has enabled 250 new network sites to be built and 8,000 sites optimised with improved 4G coverage and capacity across the nation.
In a statement, it said it continues to invest in its network improvement initiatives to ensure a consistent network experience for all Malaysians as demand for data continues to grow, which resulted in an overall resilient performance in the third quarter of 2021 (3Q21).
Celcom’s network investments have rapidly increased 4G LTE pop coverage especially in Sabah, Pahang, Terengganu, Sarawak, Negeri Sembilan and Kedah, over the past nine months.
It said, Celcom has achieved an average of more than 94 per cent LTE pop coverage nationwide with nine states at 98 per cent pop coverage or higher. Celcom’s nationwide improvement works involved among others, more than 1800 sites in Sabah and Sarawak which saw an increased 4G LTE pop coverage by 6pp and 1.9pp, respectively.
The improvements address the rapid increase in data traffic that recorded more than 54.3 per cent y-o-y growth with 581.9 million GB compared to 377.2 million GB in 3Q20. Data usage per month per user increased by 37.3 per cent y-o-y with 25.4 GB per month per user as compared to 18.5GB per month per user a year earlier. Celcom also increased overall network capacity to 1.6Tbps compared to 810Gbps in January 2020. Celcom’s network currently caters over 14 million users, including Mobile Virtual Network Operators (MVNO) users.
In 3Q21, Celcom continued its growth momentum within the quarter with growing revenue (excluding device) by 1.2 per cent q-o-q (4.6 per cent YTD), with q-o-q net additions of 157,000 subscribers.
Prepaid subscriber base saw a 14.4 per cent y-o-y subscriber growth primarily from affordable prepaid plans with a resilient ARPU of RM30. Postpaid segment recorded subscriber growth for five consecutive quarters with a 6.7 per cent y-o-y increase in customer base and a sustained ARPU of RM82, supported by affordable Celcom MEGA Family Plans and Enterprise Mobile business segment.
Celcom also saw its EBITDA and PATAMI grew faster than top line from cost management initiatives. Excluding one-off Employee Restructuring Programme impact in 2020, YTD EBITDA increased by RM240 million (7.3 per cent) as a result of better credit management and cost optimisation efforts. YTD PATAMI also increased RM33 million (6.9 per cent) from accelerated depreciation and lower net finance cost.
Commenting on Celcom’s 3Q21, Celcom chief executive officer Datuk Idham Nawawi said “Celcom’s growth trajectory has been the result of our continuous focus on operational cost management and accelerated network investments, complemented by a strong market performance by our sales team and a competitive product portfolio.
“Our customers enjoy one of the highest throughputs with our network. We will continue to invest in our network and address the rapid data traffic growth, ensuring that our network reaches out to all societies, including the most remote areas in Sabah and Sarawak.
“We are modernising our network with the latest network technology, including 8T8R RAN technology, that will significantly improve mobile capacity and user experience. Our network improvements also include the cessation of 3G services which will enable us to allocate more network and spectrum resources to 4G LTE, making our network ready for 5G.
“Our continuous focus on operational cost management has enabled positive cost savings whilst maintaining profitability. With an encouraging subscriber growth, including user growth from MVNOs, Celcom’s cost-saving initiatives do not affect or burden our customers, but enable us to offer more innovative products and services at affordable prices, especially in the Enterprise market”
Celcom recently acquired two leading ICT companies namely, Infront Consulting Group (M) Sdn Bhd for Cloud Services and Managed Networks and Bridgenet Solutions Sdn Bhd for cybersecurity solutions, networking solutions and managed services.
“Celcom aims to offer innovative ICT solutions, especially in Cybersecurity to local enterprises, enabling them to safeguard their operating systems and customer data more effectively. This will better equip them to be more digitally sustainable, competitive and efficient as Malaysia pivots to become a leading regional digital economy,” Idham concluded.