Asiaspace plans to spend RM500m on broadband

Asiaspace Sdn Bhd plans to spend RM500 million over the next three to five years to roll out its wireless broadband service.

It is one of four companies that won a licence to provide high speed wireless Internet access using WiMAX technology.

Asiaspace has identified 250 sites and it plans to build about 100 transmission towers for the roll-out, chairman Datuk Abdul Ghani Abdullah said.

“We are hoping for commercial launch by year-end, and after two years, we think there should be positive cash flow,” Abdul Ghani told reporters after signing a deal with Telekom Malaysia Bhd and its unit, Fiberail Sdn Bhd.

Asiaspace could also borrow money from banks or raise funds from an initial public offering to finance its plan.

Abdul Ghani said Asiaspace has also been approached by a number of international investors who want to invest in the company.

“I’m very cautious on this. If there is going to be any party that wants to take up a stake, they must contribute to the service or infrastructure of the company,” he added.

Meanwhile, Abdul Ghani said Asiaspace will ride on TM and Fiberail’s existing network.

He said the tie-up with the two firms, which will be long term, will offer cost-savings for Asiaspace.

“I cannot give numbers. We are spending a lot of money on our sites, which are shared by DiGi, Maxis, Celcom and Sapura,” he said.