U Mobile targets 30%-40% subscriber growth

KUALA LUMPUR: Mobile service provider U Mobile Sdn Bhd is targeting a subscriber growth of at least 30% to 40% in 2014, up from its subscriber base of 5 million last year, said its CEO Wong Heang Tuck.
"Even though the market is becoming more challenging, we are hoping to see 30% to 40% growth in subscribers this year," Wong told SunBiz after U Mobile's launch of Samsung Galaxy S5 deal in partnership with Standard Chartered Bank Malaysia Bhd here last Friday.
The shifting consumer behaviour, he said, where more youths and first jobbers between the ages of 15 to 34 are coming into the market, has made smart phones and mobile services a necessary item.
On another note, Wong said U Mobile has allocated a capital expenditure (capex) of RM300 million to RM400 million this year.
"RM100 million of which will be spent for expanding 4G Long Term Evolution (LTE) site, while the remaining will be channeled into expanding our 3G network," he said.
Wong said U Mobile's internal funds are not sufficient to fund its capex this year, but the shareholders of the telco company are still committed to pump in money.
He added that U Mobile's revenue and subscribers base have been growing strongly over the last three years, and it is "not an issue" to break even this year.
Meanwhile, Wong said U Mobile has no plans to float its shares on the stock exchange at this point in time.
"At this stage, we want to focus on growing our business as well as creating shareholders value, before we even think about it," he said.
On the event, U Mobile and Standard Chartered are offering customers a deal of RM555 for the Samsung Galaxy S5 with no upfront payment, when they sign up for the bank's JustOne Platinum MasterCard credit card.
The exclusive deal, which is targeting the youth segment, will run until June 30, 2014.
For those who do not wish to apply for the credit card, the smartphone can still be purchased at RM999.