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12 November 2012

The company will build, operate and maintain RAN infrastructure for three years as part of MCMC’s Time 3 Program 
REDtone International Bhd (REDtone) has been awarded a RM82.5 million contract from the Malaysian Communications & Multimedia Commission (MCMC) to build, operate and maintain RAN (Radio Access Network) infrastructure in rural areas in Sabah. 
The contract is for three years. It is the largest government project that the data and broadband service provider has secured todate since it started targeting the government sector two years ago. 
The RAN infrastructure to be located at Tongod, Lahad Datu, Beluran, Kinabatangan, Beaufort, Kuala Penyu, Papar, Sipitang and Tenom is part of MCMC’s RAN Sharing Time 3 Phase 3 Program aimed at providing voice and data connectivity in rural areas of the country. 
The Time 3 project is set to boost contribution from the government sector towards REDtone’s data revenue. Currently, government projects make up about 30% of the company’s data revenue. 
According to its group CEO Lau Bik Soon, REDtone is aiming for a 20% growth in data revenue contribution from the government sector to 50% by the end of its current FY ’13. 
“The Time 3 project is a major win for REDtone as the company continues to make greater inroads into securing awards from the government and its agencies. It will help to drive the company’s revenue and profit, both of which are on track for a profitable FY ’13. 
“Earlier this year, REDtone was also awarded WiFi contracts in Sabah and Sarawak for a USP (Universal Service Provision) project under the government’s “Kampung Tanpa Wayar” initiative. This project is also for three years providing REDtone with a stable recurring revenue and profit stream till 2015,” Lau said in a media statement today. 
For the Time 3 project, REDtone as a neutral party, will build, operate and maintain the RAN infrastructure for telco providers to install their systems to offer voice and data services to the people living in the rural areas covered under the contract. 
REDtone is no stranger to Sabah having launched its WiMAX service there in 2009. 
The company is today, the country’s largest WiFi network builder with a total of 4,500 WiFi hotspots that are either already built, underway or about to be built by this year end. 
REDtone recently announced that its Q1 net profit for the period ended August 31 stood at RM2 million on the back of a RM30.67 million revenue. This was the 2nd consecutive profitable quarter for the company.