Tune Talk has 600,000 subscribers

17 February 2010

TUNE Talk has become the fastest growing telephone company in Malaysia by breaching the 500,000 subscriber mark just five months after its launch in Aug 15 last year.

The country’s newest mobile service provider aims to surpass its one million subscriber target within the first year of operation. The number of subscribers hit 600,000 on Feb 9.

"We will achieve this target by boosting our distribution channels supported by innovative marketing and communications strategies, including our web-based approach – we are confident of such a simple yet exciting product," Tune Talk CEO Jason Lo said as he presented Tune Talk’s 500,000th subscriber Zolkefley Mohd Mokhtar from Negri Sembilan with his reward.

Zolkefley got himself a three-day two-night all-expense paid trip to Bali, complete with accommodation at a Tune Hotel, free surfing lessons, a surfboard and a camera.

Tune Talk has introduced its new rebate plan which enables subscribers to enjoy 10% worth of instant free talktime when they top up RM30, RM50 or RM100.

"We aim to make it cheaper and easier to talk and it appears we are achieving that. We work hard to provide better service because we do listen to our customers and subscribers tell us they feel the savings on mobile bills," Lo said.

Tune Talk is currently running a promotion which gives a weekly winner RM10, 000 worth of AirAsia E-Gift vouchers that can be redeemed for any AirAsia or AirAsiaX flight.

Sun2Surf

Tune Talk on target to hit one million subscribers by end-August

03 February 2010

PETALING JAYA: Trying to get half a million subscribers onto its network had been rough for Tune Talk Sdn Bhd in the past five months and it would get even harder with the intense competition in the cellular market, but this celco wants to beat its own internal target of having one million subscribers by the end of August.

Will it be able to do this with only a fraction of the budget that its rivals, who are the big boys of the industry, spend on marketing and advertising?

Jason Lo ... ‘In a highly competitive market place, we need to support our subscribers and forge partnerships with our dealers.’

“Simplicity has been our greatest weapon and with our one rate – 22 sen per call anywhere in the country at any time – we are slowly getting (our) space. Our top-up numbers are growing and there is more spending by the IDD callers.

“We will continue to spend on marketing to expand our reach (and visibility) and for a brand that is five months old, we are right on target to hit the one million mark by end-August. We get 5,000 to 7,000 activations every day,” chief executive officer Jason Lo told StarBiz recently.

With the product now offered onboard AirAsia and AirAsia X, about 100 to 200 SIM cards were sold daily, he said. Competition will continue to be intense in the market place although growth remains in the single digit.

Tune Talk is up against major players like Maxis Communications Bhd, DiGi.Com Bhd, U Mobile and even its shareholder Celcom Axiata Bhd.

These days, Tune Talk has also changed its strategy of using billboards around the country to advertise as some of its posters have gone missing.

Its subscriber profile is a mix of migrant workers, students, IDD callers, young professionals, senior citizens and other groups. This is contrary to market perception that Tune Talk only attracts the migrant community.

“We cast a large net and may get 5% of each segment of the market,” Lo said, adding that the challenge for the company was about “understanding what our consumers want from us and vice-versa.”

“In a highly competitive market place, we need to support our subscribers and forge partnerships with our dealers so that we are able to capture market share,” he said.

The company hopes to break even in July but Lo did not disclose any figures. But going by what Lo said on achieving average revenue per user (ARPU) at RM40 in the longer term, the company should be able to rake in RM10mil or so based on an active subscriber base of 250,000.

Revenue could be more if the active base is higher and Lo is looking at half a million of active users over time.

“The churn rate (for prepaid) is about 45%-50%industry wide as each user will have 3-4 SIM cards and he will move where value is,” he said.

Tune Talk is a mobile virtual network operator that rides on Celcom’s network, which in turn owns 35% of the company.

The other shareholders of Tune Talk are Tune Ventures (owned by Datuk Seri Tony Fernandes and Datuk Kamarudin Meranun) with a 37.5% stake, and the remaining 27.5% are held by several individuals including Datuk Seri Kalimullah Masheerul Hassan, Lim Kian Onn, Lo, Gurtaj Singh (the COO of Tune Talk) and Mark Lankaster (the CEO of Tune Hotels).

While working to gain more subscribers in the country, Lo said Tune Talk has set sights on Singapore, Thailand and Indonesia. Singapore will be its first stop and it hopes to enter the market in the second half of this year.

“Singapore is an opportunity area and the idea is for users to change to a local SIM card that we will offer once they are in the republic. That lowers the cost of roaming. We are in talks with two players in Singapore on this,” Lo said.

Tune Talk hopes to enter the Indonesian market in 2011 and Thailand in 2012. It also is exploring ways to enter the fixed broadband sphere.

How this will be done is unclear but Lo reckons that “it is an area that we would like to be in as we expect ARPU hitting RM200 per month eventually. We are in talks with some parties about bundling services.”

By B.K.Sidhu

The Star

Tune Talk eyeing 400,000 subscribers

25 November 2009

It hopes to achieve target by leveraging on AirAsia and Tune group

KUALA LUMPUR: Mobile service operator Tune Talk Sdn Bhd is targeting to achieve 400,000 subscribers by year-end by leveraging its links with low-cost carrier AirAsia and the Tune group.

The company has already secured over 200,000 subscribers since its launch on Aug 19.

Chief executive officer Jason Lo said he was confident that Tune Talk would breach the 300,000 subscriber-mark by year-end based on the “rate it was going”.

“We’re looking at 300,000 to 400,000 subscribers by year-end,” he said after presenting prizes to its 100,000th and 200,000th subscriber yesterday, adding that Tune Talk was on track to signing up one million customers within a year of operations.

Lo said Tune Talk was currently registering an average of 4,000 new subscribers per day with an average revenue per user of RM45 per month. He said the company was targeting 6,000 subscribers per day by year-end.

The Tune group is the brainchild of AirAsia Bhd group chief executive officer Datuk Seri Tony Fernandes, who is also chairman of Tune Talk.

Lo said Tune Talk started offering its starter packs on board AirAsia flights last week.

“We are on board AirAsia flights and hope to maintain that partnership with them. We feel that we can become a relevant player in Asean, especially if we can leverage off AirAsia’s extensive network,” he said.

“Tune Hotels will also be launching 50 hotels by 2012. Right now, Tune Hotels (which has hotels in Malaysia and Bali, Indonesia) is doing 60,000 to 70,000 guests per month.

With 50 hotels, that’s three million guests and we have to service that as well,” Lo added.

He also said Tune Talk was in preliminary talks with two of Singapore’s three mobile operators to expand its services to the island republic and potentially offer zero or reduced roaming to its subscribers.

Tune Talk has been offering AirAsia E-Gift vouchers daily and RM100,000 personal accident coverage to its subscribers since its launch.

Operating as a mobile virtual network operator on Celcom (M) Bhd’s 2.5G network, Tune Talk charges a flat rate of 22 sen per minute for calls to any operator in Malaysia while an SMS costs 5 sen each.

It claims that its IDD rates are 10% to 30% cheaper than other operators.

The Star

Tune Talk subscribers can enjoy lower IDD rates over other mobile operators

SEPANG: New mobile operator Tune Talk Sdn Bhd, which operates the prefix 010 for its prepaid cellular service, aims to beat the competition by offering IDD rates that are 10% cheaper.

The company will charge a flat rate of 22 sen per minute for calls to any operator in the country, while an SMS cost 5 sen each.

Chief executive officer Jason Lo said Tune Talk would focus on voice calls and SMS but would be introducing GPRS services sometime next month.

Speaking after the launch of Tune Talk at the Sepang Aircraft Engineering Sdn Bhd’s hangar yesterday, Lo said the Tune Talk SIM pack was sold at RM5 and it came with a RM5 pre-loaded worth of talk time.

Chairman Datuk Seri Tony Fernandes said he expected one million subscribers for Tune Talk and AirAsia Bhd also hoped to bring in the customers for its mobile services.

All smiles: (from left) Shazalli, Lo, one of AirAsia’s shareholder Datuk Kamarudin Meranun, and Fernandes smiling for the camera at the official launch of Tune Talk at the Sepang Aircraft Engineering Sdn Bhd’s hangar Wednesday.

Tune Talk would become profitable in the next six months and its cash position would also be positive by then, he added.

Tune Talk operates a mobile virtual network operator (MVNO) that rides on Celcom’s 2.5G cellular infrastructure to roll out services.

Celcom chief executive officer Datuk Ser Shazalli Ramly said the partnership will enable Celcom to leverage on both Tune Talk’s and AirAsia’s successful Internet business models.

Lo said Tune Talk also aimed to make inbound advertising as a key source of income.

It had secured AirAsia, Etiqa Insurance Bhd and 99 Speedmart Sdn Bhd as its SIM pack co-branding partners.

He said all Tune Talk subscribers would be given a free RM100,000 personal accident coverage from Etiqa Insurance.

It is also giving over RM1mil worth of AirAsia e-gift vouchers to its top 10 callers everyday for the next 12 months.

AirAsia Aerhad

29 July 2009

AirAsia is pleased to announce that it has today entered into a Cooperation Agreement with Tune Talk Sdn Bhd (“TTSB”) (the Agreement”). The purpose of the Agreement is to generate extra revenue and further boost the AirAsia’s branding.

Details of TTSB TTSB was incorporated on 13 January, 2006 and is principally engaged in business as providers of telecommunication services and other related services. TTSB is 35.75% owned by Tune Ventures Sdn Bhd (“TVSB”) in which both Dato’ Sri Tony Fernandes (“DSTF”) and Dato’ Kamarudin Bin Meranun (“DKBM”) are substantial shareholders.

Salient terms of the Agreement Under the terms of the Agreement, the Company will:

(a) Become the Launch Partner of TTSB; (b) Purchase 200,000 units of TTSB SIM Cards worth RM860,000 (“Purchase Price”) that will bear AirAsia’s branding along with TTSB’s branding;

(c) Satisfy the Purchase Price by way of 5,059 e-gift Voucher in RM200 denomination less 15% discount;

(d) Be offered free of charge advertising in the various advertising platforms of TTSB in the value of the Purchase Price;

(e) Further, the Company will market TTSB’s Top Up Vouchers and will be remunerated with a 5% sale commission on total top-up sales;

(f) Any unsold TTSB SIM Cards will be disposed off in a manner to be mutually negotiated and agreed upon by Parties.

4. Rationale for entering into the Agreement The rationale for entering into the Agreement is as follows:

(a) To generate extra revenue through sales of TTSB SIM Cards and Top Up Voucher;

(b) To generate additional online ticket sales via distribution of e-gift voucher by TTSB through its loyalty programs;

(c) To enhance and further boost AirAsia’s branding through various advertising platforms made available by TTSB free of charge;

5. Financial Risks The downside financial risks associated with the Agreement are expected to be very limited because the Company does not need to make extra investment to market or sell the TTSB SIM card or Top Up Voucher, which will be sold on board all AirAsia’s flights by the Company’s existing manpower. In addition, the Company will be able to generate more online sales via the e-gift vouchers and additional revenue from selling TTSB’s SIM Card and Top Up Voucher.

6. Directors’ and major shareholders’ interests DSTF and DKBM are Interested Directors by virtue of their directorships in both the Company and TTSB respectively. DSTF and DKBM are also Interested Major Shareholders by virtue of their shareholdings in both TVSB (a major shareholder of TTSB) and Tune Air Sdn. Bhd. (a major shareholder of the Company). Save for the Directors and major shareholders as disclosed below (respectively known as “Interested Director(s)” and “Interested Major Shareholders”), none of the Directors and/or major shareholders of AirAsia and/or persons connected to them have any interest, direct or indirect, in the Agreement. The shareholdings of DSTF and DKBM in AirAsia as at 28 July, 2009 are as set out in the table below.
DirectIndirect
No. of Shares%No. of Shares%
DSTF2,627,0100.11(1) 729,458,382 30.71
DKBM1,692,9000.07(1)729,458,382 30.71

Note:
(1) deemed interested by virtue of Section 6A of the Companies Act, 1965 through a shareholding of more than 15% in Tune Air Sdn Bhd

Accordingly, the Interested Directors have abstained from all Board and management deliberations in respect of the Agreement and provision of the services.

7. Statement By The Board Of Directors
Save for the Interested Directors, the Board having considered all the relevant factors in respect of the Agreement is of the opinion that entering into the Agreement is in the best interest of the Company.
8. Financial effect of the Agreement
This Agreement will not create any material financial impact nor will it have any effect on the share capital and substantial shareholders’ shareholdings of AirAsia in the current financial year. It is also not expected to have a material effect on the consolidated net assets of AirAsia and the consolidated earnings of AirAsia for this financial year ending 31st December 2009.
9. Approval required
AirAsia does not require the approval of its shareholders or any authorities to enter into the Agreement.
10. Document available for inspection
The Agreement is available for inspection at the registered office of the Company at 25-5, Block H, Jalan PJU 1/37, Dataran Prima, 47301 Petaling Jaya, Selangor Darul Ehsan, Malaysia during normal business days from Mondays to Fridays (except public holidays) for a period of 3 months from the date of this announcement.

AirAsia to boost revenue via Tune Talk partnership

29 July 2009

PETALING JAYA: AirAsia Bhd yesterday signed a cooperation agreement with Tune Talk Sdn Bhd aimed at generating extra revenue and further boosting the AirAsia brand.

Incorporated on Jan 13, 2006, Tune Talk is principally involved in providing telecommunication services and other related services.

The company is 35.75%-owned by Tune Ventures Sdn Bhd, in which AirAsia group chief executive officer Datuk Seri Tony Fernandes and AirAsia deputy CEO Datuk Kamarudin Meranun are substantial shareholders.

In a filing with Bursa Malaysia, AirAsia said the rationale for the agreement was to generate extra revenue through sales of Tune Talk SIM cards and Top Up Voucher.

It was also to generate additional online ticket sales via distribution of e-gift vouchers by Tune Talk through its loyalty programmes as well as to enhance and further boost AirAsia’s branding through various advertising platforms made available by Tune Talk free of charge.

AirAsia said under the agreement, it would become the launch partner of Tune Talk and purchase 200,000 Tune Talk SIM cards (worth RM860,000) that would bear AirAsia’s and Tune Talk’s branding.

“The downside financial risks associated with the agreement are expected to be very limited because the company does not need to make extra investment to market or sell the Tune Talk SIM card or Top Up Voucher,” it said.

The products would be sold on board all AirAsia’s flights, it added.

AirAsia said it did not require the approval of its shareholders or any authorities to enter into the agreement with Tune Talk.

It also said the agreement was not expected to have a material effect on its consolidated net assets and consolidated earnings for the current year ending Dec 31.

Malaysian MVNO selects Megasoft arm

28 April 2009

Malaysian mobile virtual network operator (MVNO), Tunetalk, has selected XIUS-bcgi, the telecom brand of Chennai-based technology company Mega Soft Limited, to launch its services in Southeast Asia.

XIUS-bcgi, through its mobile services platform (MSP), will power Tunetalk’s launch and delivery of its advertising-supported mobile phone service initially in Malaysia and subsequently to other countries in the Asean (Association of Southeast Asian Nations) region.

Tunetalk, co-founded by Tony Fernandes, group chief executive officer of low-cost airline AirAsia, is launching on the Celcom network in Malaysia in 2009. Plans are under way for similar launches in 2010 in other countries in the region.

“XIUS-bcgi will be responsible for the supply and turnkey management of the customised core network infrastructure for enabling Tunetalk's mobile launch through its multi-country rollout,” GV Kumar, chief executive officer of XIUS-bcgi, said in a release on Monday.

Megasoft since 2008 has been focusing on MVNOs and has so far made three installation of its MSPs for MVNOs in Europe that were connected to Vodafone, and one installation for Diemo, a GSM (global system for mobile communications) operator in Venezuela.

The company, in October 2008, told Business Standard that it was on the verge of forging a $7-million (about Rs 35 crore) deal with an MVNO in Asia-Pacific and that the client was looking at entering India when the MVNO licensing policy was clear to one and all.