Celcom allocated RM950 million capital expenditure

Celcom Axiata Bhd has allocated capital expenditure (capex) of up to RM950 million this year to strengthen the network coverage and provide high quality services to customers across the country.

Chief executive officer Datuk Seri Shazalli Ramly said the bulk of this year's capital expenditure used to improve network coverage after the replacement system support information technology (IT) which started last year is now almost complete.

He said, of the total capex allocated RM400 million to launch the long-term evolution (LTE). By the end of this year, the government aims to create 2,014 active area of LTE coverage across the country.

"We always give priority to customers and strive to focus its resources and efforts to meet customer needs," he told reporters at a media briefing on Celcom's financial results for the first quarter ended March 31, 2014, in Kuala Lumpur yesterday.

For the first quarter ended March 31, 2014, Celcom posted a profit before tax of RM690 million compared to RM658 million recorded in the previous corresponding period.

However, revenue for the period declined slightly to RM1.91 billion from RM1.98 billion in the previous corresponding period.

Sazalli said the decline in revenue was due to income universal service provision (USP) lower and the festive season saw device sales are low.

He said, however, service revenue in the period under review increased slightly to RM1.81 billion, with growth in data services cover most of the decline in voice and short message service (SMS).

4.65 million users

"During the review period, it is showed the smartphone users grew 51 percent to 4.65 million, representing 35 percent of the customers, offer exciting and innovative driven our data services for smartphones," he said.

"Celcom has also worked closely with our partners to strengthen the overall performance of the network, including reducing the call fails and network coverage," he said.

Last year, Celcom invested RM923 million which also the highest spending in the industry to modernize the network coverage and the transformation to LTE technology and IT support systems.

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