Tune Talk seeks curb to MVNO licences
KUALA LUMPUR: The government has been urged to stop issuing new licences for mobile virtual network operators (MVNOs).
Tune Talk Sdn Bhd chief executive Jason Lo said although he supports competition in the industry, a failed MVNO could result in consumers having less confidence in other operators.
"We have many MVNOs and nobody really knows these brands and what they represent. Without proper customer care, they could affect consumers' confidence and this could damage other MVNOs," Lo told Business Times after signing a renewed partnership agreement with One Fighting Championship yesterday.
Lo has voiced his concern to the Malaysian Communications and Multimedia Commission and requested that the entry barriers for new MVNOs be raised.
There are some 10 MVNOs in Malaysia, including Tune Talk, Salamfone Sdn Bhd, XOX Bhd and Altel Communications Sdn Bhd.
Lo said although the MVNO industry is exciting, the local telco market is about 140 per cent saturated.
"So, why do we keep launching new telcos in a sector that is already saturated? We need to allow it to cool off," he said.
Tune Talk is majority-owned by Celcom Axiata Bhd and Tune Group Sdn Bhd, with 35 per cent and 25.1 per cent stakes, respectively.
Currently, it has 800,000 subscribers and Lo said it aims to attract about one million subscribers by year-end.
» RELATED STORIES