In a first-of-a-kind-in-the-region deal, Malaysian mobile operator TM Cellular Sdn. Bhd. has agreed to purchase airtime in bulk from the satellite phone service run by Smart Communications Inc. and ACeS Philippine Cellular Satellite Corp.
A subsidiary of dominant fixed line operator Telekom Malaysia Berhad, TM Cellular will in turn retail satellite phone services to its clients in areas not currently covered by either mobile or fixed line networks. The target date for the commercial launch is Dec. 1
"This business alliance will position TM Cellular as the first cellular company in Malaysia to be appointed as the exclusive ACeS satellite provider in Malaysia. The service will allow our subscribers to get connected at all times especially in places where there are still no telecommunications facilities," according to Dr. Mohd Khir Harun, TM Cellular chief executive officer, during signing ceremonies for the agreement in Kuala Lumpur this week.
For his part, Smart president and chief executive officer Napoleon Nazareno said this is a sensible business arrangement for both parties and that they are confident Malaysian users will benefit greatly from this service.
The service is made possible by connecting the ACeS Philippines satellite gateway in Subic, Philippines to the facilities of TM Cellular in Kuala Lumpur via high-speed international leased lines on the APCN2 fiber optic cable system. As a result, a "virtual gateway" will be set up in Malaysia by middle of November.
With this deal, TM Cellular will be the first telecom operator to offer satellite telephony services in Malaysia. TM Cellular will be positioned to quickly provide affordable satellite phone services to its subscribers without having to invest substantial amounts in network infrastructure. TM Cellular will offer both mobile and fixed satellite telephony services. Mobile subscribers will use the Ericsson R190 dual mode GSM/satellite phone that was especially developed for ACeS. Satellite phone terminals will be deployed to replace the existing ATUR 450 service, a first-generation analog mobile network, which currently has about 40,000 users in Malaysia.
The service will also be marketed to businesses operating in remote locations such as the oil, maritime and tourism industries. For ACeS Philippines, which is being managed by Smart, the deal will maximize the utilization of its gateway in the Subic Bay Freeport Zone. This gateway, which consists of a 13m feeder link C-bank earth station, beam congruency system antenna and other equipment – provides the primary interface between the ACeS system and other terrestrial communication networks.
Aside from the Philippines, Thailand and Indonesia operate national gateways for the satellite system of ACeS International. Smart introduced its Smart ACeS service in 2001. Since then, the service has already been enjoyed by a range of diverse users – from maritime workers, media practitioners, rescue volunteers to adventure-seekers. The cellular company has also been utilizing its satellite phone service to provide rural telephony via its public calling offices.
Smart ACeS provides an affordable and quick-to-deploy phone system for areas currently beyond the reach of wireless and fixed line telecommunications network. The ACeS satellite system has a 13-million square mile footprint stretching from Japan, Korea and China in the north to Indonesia in the south and from Papua New Guinea in the east to Pakistan in the west.
In another development, Cap Gemini Ernst & Young (Cap Gemini) has been appointed by Smart Money Holdings Corp. (SMHC) to provide marketing and technical assistance, in addition to systems integration and support and maintenance services, to international mobile operators licensed to use its mobile commerce systems.
Cap Gemini is one of the world leaders in management consulting and IT services with extensive experience in providing systems integration services for complex information technology systems. Under the appointment by SMHC, Cap Gemini will use its substantial resources and expertise to partner with SMHC for international sales and implementations, particularly in the Asia Pacific region.
SMHC provides mobile commerce systems based on its award-winning implementation for Smart, the parent company of SMHC. TM Celluar Sdn. Bhd. (TMTouch) of Malaysia recently announced the award of a contract for SMHC to complete a similar mobile commerce implementation. TM Touch is one of the leading mobile operators in Malaysia with approximately 1.5 million subscribers, and is planning to introduce various mobile commerce services from September.
Cap Gemini has also been working with SMHC as part of the overall project team for TM Touch and was also engaged as a systems integration partner for the implementation of a mobile commerce system at Smart.
"Cap Gemini has a proven international track record in delivering IT solutions and is held in particularly high regard in the mobile telecommunications sector. The combination of Cap Gemini’s proven systems integration methodology and global reach with the highly-successful mobile commerce systems that have been developed by SMHC represents a very exciting combination," said Ian Wilson, SMHC’s chief executive officer.
SMHC’s mobile commerce systems are available to international mobile operators, and enable them to provide a broad range of secure data and transactional services to their subscribers. The applications include mobile banking, pre-paid top-ups, fund transfers, electronic cards, the delivery of general value-added services as well as secure connectivity to other corporate databases.
"SMHC’s mobile commerce systems have been able to demonstrate the ability to meet the requirements of operators, deliver the services requested by consumers and satisfy the stringent security requirements of banks and other financial institutions. We have had a long history of working with this system and are delighted to extend the relationship to work with SMHC in other countries," according to Jacques-Herve Maupin, Cap Gemini Director of Sales for Asia Pacific.
"The opportunities for mobile commerce are significant, with operators gaining from reductions in churn as well as increased revenue. SMHC and Cap Gemini can assist an operator through all states in the decision making process, from market research to a customized implementation to truly make the strategy, implementation and investment a success," Maupin added.