U MOBILE Sdn Bhd will spend RM1.5 billion to expand network coverage over the next 15 months, targeting seven million subscribers, as it gears up for a listing possibly in 2016.
The company will add 2,000 new network sites, comprising 1,000 3G and 1,000 4G long-term evolution (LTE), to its current 4,400 sites to provide quality service to its five million customers nationwide.
U Mobile chief executive officer Wong Heang Tuck said at a briefing yesterday the scaling up is part of its quest to position itself as the leading high-speed mobile Internet provider in Malaysia.
He said the network enhancement will enable the telco to support seven million subscribers.
U Mobile last year reportedly said an initial public offering (IPO) would be possible after the company hit the critical mass of seven million subscribers.
Wong declined to confirm whether an IPO could happen in 2016 but said it is preparing for the listing. He added that the company needs more time to give stakeholders better value.
U Mobile chief marketing officer Jasmine Lee said the company is on solid financial footing, adding that 60 per cent of its subscribers are heavy data users.
“They are mainly young adults and ‘first-jobbers’. In our expansion, we are focusing on enhancing the data experience for this group. This is why we are focusing on the West Coast.”
The majority of U Mobile customers are prepaid users.
“In Malaysia, growth is in the pre-paid segment, and most of our customers like the prepaid plan because it is easier to manage their budget,” said Lee.
The company said its new 3G rollout will cover Batu Pahat, Segamat, Muar, Tanjung Malim, Lumut, Ipoh and Penang. The LTE sites will cover here, Selangor, Johor Baru and Penang.