P1 Wimax: Honey Have You Cut It? Part II

Posted last night: P1 Wimax: Honey Have You Cut It?

I was wondering what the boss will say.

Here is the link to an interview published on Star Business: Green Packet CEO says losses are short term

Remember the following are WHAT was said by the CEO!

• Friday November 13, 2009
  Green Packet CEO says losses are short term
  By YVONNE TAN
  
  PETALING JAYA: Green Packet Bhd reported a higher net loss of RM31.8mil for its third quarter ended Sept 30 against a net loss of RM10.3mil for the same period last year due to continued heavy promotional activities and investment costs related to the development of its 4G (Worldwide Interoperability for Microwave Access or WiMAX) business.
  
  Revenue for the period however was higher at RM63mil versus RM18.2mil in 2008 while loss per share stood at 8 sen and 3.2 sen respectively.
  
  “The losses are ‘technical, planned’ losses,” group managing director and chief executive officer CC Puan told a media briefing yesterday.
  
  “We are sacrificing short-term profits for long-term gains,” he said.
  
  To-date, the mobile broadband networking solutions provider has spent more than RM337mil in capital expenditure to develop its 4G business which is parked under Packet One Networks (M) Sdn Bhd (P1).
  
  Puan said the P1 planned to spend another RM650mil within the next two years to develop the network and enable it to provide up to 65% coverage of Peninsular Malaysia’s population by 2011. Currently, P1 has 35% network coverage in the peninsula.
  
  The company also had plans to extend its network to East Malaysia and Singapore next year, he said.
  
  Puan said P1’s current subscriber base stood at “more than 100,000” from 10,000 as at the end of last year and the company was on track to meet its target of 200,000 by the end of next month.
  
  “It’s a stretched target but we are on track,” he said.
  
  In the third quarter, PI’s net adds were 36,000 against 25,000 in the second quarter, a growth of 44%.
  
  “P1 WiMAX launched its services less than two year ago and already, we are recognised as one of the top four 4G WiMAX operators in the world,” he said.
  
  Puan said he expected Green Packet to return to the black in the second half of next year with PI targeted to break even (in terms of earnings before interests, taxes, depreciation and amortisation) by the first quarter of 2010.
  
  On the other pillar of Green Packet’s business – the product and solution business which was currently profitable, Puan said he targeted shipments of customer premises equipment to overseas markets to increase to 1.5 million units next year from about 200,000 currently.
  
  The company, he said, targeted sales to total US$97.5mil (RM329mil) based on the average cost of US$65 per equipment.
  
  For the nine months to Sept 30, Green Packet made a net loss of RM81.9mil compared with a net loss of RM17.9mil a year earlier. Revenue was RM161mil against RM63mil.

Oh my!

Consider these facts!

Green Packet earnings since 2006: 55 mil -> 30.2 mil -> -55mil -> - 81.9 million (3 quarters)

From earnings 55 million in 2005 in 2006, the company has now lost some 136.9 million for its last 7 quarters!!!

“The losses are ‘technical, planned’ losses,” ? " We are sacrificing short-term profits for long-term gains,” ???

Want to count the amount Green Packet has burned TRYING to venture into Wimax?

Why don't he sit down and count if such a business (Wimax) is really viable?

Ever tried google the phrase 'wimax problems' and limit your search to pages from Malaysia?

(try this google search link: here )

Let me highlight a couple of links.

Complaints - P1 Wimax always suffer with slow connection

• Written by Administrator
  Friday, 02 October 2009 09:39
  I am using p1 wimax and always suffer with slow connection problems. I had issued this problem to skmm and I got feedback from p1, which then the connection is better. However, the good thing is not lasting long, not even for a week. These 2 months, I can’t get connection, or extremely slow/unstable connection…
  
  I called customer service care line. The guy told me my location is just 180m away from the base station, I should have good connection. So he log my case and provided me a case number, said that technician will contact me later. After few days, I called again since I do not receive any call. Another personnel checked my case number and told me this case is processing, technician will contact me very soon.
  
  Until yesterday, I do not receive any call from P1. Within this period, connection is not improved. I can’t even get any connected signal. So, I called again. This guy told me, the base station is under repaired, so for my area, no connection is very normal, it is their problem, not my problem. Of course I know this is P1’s problems. So I asked him, then what shall I do? When the station will be back to normal? He said he don’t know. The station is malfunction since 16 Sept until now. I feel so weird as I do not receive any notification from P1 regarding this.
  
  Is it fair to us when the station is down for half month, while still charging us for one month’s fee?? So I told him it’s ok for station down, but for my case, even the station is not down, connection is poor for so long. Then the guy said it is normal when many users access at the same time. And asked me if there is many advertisement pop up, etc?
  
  But for my case, I have no chance to access those web pages, as the connection is always down. Then, I required him to check for the case no. I got, he said this case number is not existed in the system. I am wondering is this way of P1 to solve customer’s problem /complaints? Close the case without any actions taken/feedback from users? Or… Simply throw a fake case number to user to shut user’s mouth? I wish to talk to someone that can really investigate and help me in my problem. Not some customer service officers that answer the phone with same answers that are not answers to my question.
  
  I lost my entertainment, social times with outside world. I also missed out some jobs opportunities/offer that sent to my email mailbox. I am not asking for unlimited usage that let me download thousands of mp3s, games, movies, dramas etc, I am just asking for a connection that can let me check email, messaging, e-banking, and browse for some info.
  
  Most funny thing is, I still have to go cybercafé or steal time to online at office, for my personal things…. Last but not least, I paid my bill every month.

Do try reading some comments posted in this blog: http://azlan.anilezfa.com/p1-wimax, the very last set of comments: http://azlan.anilezfa.com/p1-wimax#comment-35157 is utmost interesting!

• Hi Ronnie,
  
  The explanation provided by Fazrul is not a solution for my problem hence my problem is still not solved yet.
  
  I still need to connect to the Internet using my neighbour’s Streamyx connection due to the bad connection using my P1 Wimax during peak time which is the most likely time also need to use the service.
  
  I need to wait for at least 1 month before I could enjoy the service, as I should. This is what I have been advice since P1 is going to build a new base tower or whatever you call it to improve my Internet connection in my area.
  
  Since you mentioned if there is anything, which you could do besides my existing, problem YES there is one thing!
  
  I have complained to Fazrul that about 2-3 weeks ago that I have been advised the technical team only works till 10pm by one of the agent, but Fazrul denied this and have told me that the agent gave me the WRONG INNFORMATION. Believe Fazrul have sent a complaint on my behalf to the Customer Service Department.
  
  I have not received any feedback or call on this complaint!!!
  
  Are you guys serious in handling customer’s complaint or you just treat it like a junk?
  
  Regards,
  
  Jagdip Singh Gill
  
  Sent: Sunday, June 28, 2009 9:11 PM
  
  Subject: Re: P1 – Services – Bad Service
  
  Im having trouble again for the past 2 days to connect to the internet using my P1.
  
  1st call i made on the 27june spoke to Ms Mimi Baizuhana and she promised me that someone will call back within 24 hours
  
  2nd call was made after 24 hours since no one call me back and i spoke to a guy (dint get his name)
  
  He placed me on hold for several minutes after getting my details and had hang up the line after that.
  
  3rd time i call and spoke to Ms Izza on the 29june and explained my issue and she asked me to wait for another 48 hours before someone will call me back again.
  
  I demanded for someone to assist me immediately but she refused to escalated me further saying that she has to follow P1’s policy which is that they are not allowed to transfer my call to any the supervisor. What kind of crap policy is this ?
  
  Im really disappointed with the service from the staffs of P1 which is not acceptable.
  
  I also regret that i had cancel my Maxis Broadband and switched to P1 Wimax thinking that the service would be much better but i truly made a BIG MISTAKE!
  
  Firstly i was conned by the P1 Wimax sales person saying that the place i live on the 19th floor has very good service P1 Wimax. However when i call in P1, i was advised that 19th floor is not covered by P1 wimax service.
  
  Secondly when i have problems with connections they people at P1 wimax would not bother calling me back despite of the promised that made. Not even once they have call me back to solve my problem.
  
  I would not recommended any of my friends or family member to P1 Wimax as the service is horrible!!!!
  
  Hopefully after lodging this complaint with the rightful ministry & press, actions will be taken to restore back damages made to customers by P1 Wimax.
  
  Please call me back as promised !
  
  I been waiting for 72 hours…..Please fullfill to your SLA promise!
  
  FYI – Im paying for your service and not getting it for free hence i need your help to resolve the issues.
  
  Regards,