XOX targets 800,000 more prepaid users

SHAH ALAM: XOX Bhd, the only listed mobile virtual network operator in Malaysia, aims to increase its subscriber base by 800,000 more prepaid users within six months from the 500,000 active subscribers it currently has.
"The market is still very much untapped and there is still a wide opportunity for us. We target to get customers using the mobile number portability, which is basically retaining the same number but changing the telco (telecommunications company). This is how most Telcos are hoping for growth (of subscribers)," its group CEO Ng Kok Heng told reporters after the group's EGM yesterday.
"Currently we already have some of the best prepaid packages around. With this, we also hope to increase our postpaid subscriber base to 20,000 users within three to six months," he said, adding that 99% of its 500,000 active subscribers are prepaid customers.
Ng said prepaid users may cut back on usage when the Goods and Services Tax (GST) is introduced, as they are generally price-sensitive and have tighter budgets.
However, GST is positive for mobile operators, as they will be able to pass on the similar tax or sales tax on prepaid revenue that they have been absorbing for customers all along.
"So basically I feel that there should be a positive effect on the (telco) industry, but we need to be very cautious and sensitive to our subscribers as well. I think the whole country will adapt to it, although it may take time."
"Of course when the price goes up, the demand will come down. The challenge is how you maintain or increase the demand," said Ng, who said changes to its products prices would be because of the imposition of 6% service tax.
Its products include Voopee, a SIM-free mobile services that uses local number for voice calls and messaging and Season Pass, that allow subscribers to share remaining talk time and data with other users.
XOX recorded a net profit of RM55,000 for the second quarter ended Dec 31, 2014 compared to a net loss of RM712,000 in the previous year's corresponding quarter, contributed mainly from the higher revenue.
Its revenue for the same quarter has increased by 72% to RM19.57 million from RM11.38 million a year ago, due to higher growth in subscribers.