How many subscribers do you have, and how is the business going?Lee: We're losing money still. We've been in business for 30 months now. We're optimistic that we'll break even in the next year and a half. That's rather fast for a company that has a national footprint we built in such short order. We have about 600,000 customers, but one customer called the Ministry of Education that has a lot more accounts underneath. We literally could be in the millions. How many of your customers use your services for the equivalent of wired broadband and how many use them for mobile phone service?Lee: We own the market when it comes to mobile data. We are the net-add [increasing the number of subscribers overall] leader in Malaysia in the last three quarters and soon to be four when it comes to mobile broadband. The best-selling devices -- the mobile router is No. 1. MiFis are fantastic. The second would be home gateway. We also have voice. We look at voice as a value-added service. We have implemented telco-grade IP telephony. We have mobile number assignment from the Malaysian government. We are fully interconnected domestically and internationally. That's how we're going to compete. We are 10 years behind our competitors when it comes to GSM. We'd rather go the other direction to create new innovation to use IP voice.
There seems to be a lot of reluctance among carriers to move ahead as fast as possible, I understand the issues of return on investment, but does it seem to you the network operators are moving fast enough for where gengar iphone case the industry needs to go?Lee: I think there's hesitation, I understand how they think because I used to work there, The majority of the 3G networks in the world haven't been paid for, It's a tough discussion to ask the board for another few billion dollars to invest into LTE when they haven't returned the investment on 3G, Many countries are still building out their 3G network -- still ordering HSPA base stations, So this is a crossroad, If they don't change their paradigm, still keep thinking I'm just going to sell more subsidized Android phones and iPhones, then there's no new revenue, With no new revenue, how do you justify all this additional new capex [capital expenditures like new base stations]?..
So how do you change the paradigm?Lee: People have to understand the importance of cloud. People need to start going from talking to doing. Operators have to realize where they are in the value chain. We are always in the middle. So how as a middleman do you add value? We added value through our Malaysian deployment by making it easy for people to connect using a single ID into our wireless network, a learning platform, a content store, to collaborate and create documents. That's high value. Do you think the dumb pipe -- even a very fast, very nice dumb pipe -- is a doomed business?Lee: There is still a business for the dumb pipe. If you run a high-speed broadband business, there is still going to be demand, especially for many enterprises. All they want is to run a VPN [virtual private network] on those dumb pipes. They want it to be cheap, reliable, and fast.
If you want to be a Southwest Airlines, then make yourself a no-frills low-cost operation, If you want to be -- pick your fancy airline -- then you have to have the service level and the value add, If you want to be Qatar Airways, you have to understand how the emergence of cloud services will change your business model, and how do you embrace it as opposed to fighting it, Google Fiber is interesting, Google is a company with lots of over-the-top services that often irritate network operators, and now it says it can be a pipe, too, What message has Google Fiber sent to the network service industry?Lee: It's no different from what Google did with the 700MHz auction in the US, I think they're trying to ensure the public knows there are new ways to create innovation, They play the role of a catalyst, Wherever they go, they launch, and the other guys at some gengar iphone case point have to buck up and do something interesting, I don't think Google intends to turn this into a profit center, but they want to turn it into a way to disrupt the existing business model and legacy thinking..
Are we in a LTE honeymoon period? Is it going to get just as bogged down as 3G is, once more devices arrive to use it?Lee: It's a honeymoon period for three reasons. No. 1, right now you take your phone, you get onto high-speed rail, you go to Amsterdam, and you're able to connect through the notion of roaming. But with the band use in LTE, there's no such thing as global roaming. Because of spectrum fragmentation?Lee: Precisely. No. 2 is when it comes to LTE devices, they are expensive and less power efficient because LTE technology is still at that stage. No. 3, when it comes to LTE technology, you still have to fall back to legacy networks, because the deployment footprint will take several more years to have parity. It's a very high capex scenario for the operators, and for the user, it's not a very good experience. So all parties have to have their eyes wide open. That's why Apple had such a hard time launching a global SKU [model] -- because of LTE. Apple has been maniacal in terms of launching global SKUs. There's no more global SKU now that they have LTE. It's all due to this fragmentation.