Thursday, February 15, 2007 Next Mobile targets higher earnings
NEW handy phone operator Next Mobile Inc. (NMI) expects to double its income this year.
NMI chief executive officer Mel Velarde told reporters that they are looking at P400 million in earnings this year as against the P250 million in income that they posted last year.
Velarde said their sales revenue increased by 60 percent in January compared to December. "By the end of 2008 however, we will start registering a net income," he said.
Next Mobile's subscriber base increased 10 times when they tapped the growing market of Overseas Filipino Workers (OFWs) and the number does not include the 21,000 corporate customers of the company.
Velarde said they expect the number of corporate and individual subscribers to increase in four years. By then, NMI would be utilizing the entire capacity of its network.
NMI started penetrating the international market through Myworld phone, a mobile phone service that offers unlimited calls thus benefiting Filipinos working and living abroad and their relatives in the country.
The new service utilizes the iDEN (Integrated Digital Enhanced Network) technology of Motorola and through its partnership with other iDEN operators around the world such as Sprint Nextel, the third largest wireless telecommunications network in the US.
Charging US$30 to US$40 per month per subscriber, Velarde said a relative or business partner in the US or in selected countries can call a designated number in the Philippines (having the same area code as the US number) unlimited at a very affordable fixed rate.
Beside the unlimited calls, NMI is also working out an international service that will allow unlimited texting to the US and possibly other countries, and unlimited push to talk in Saudi Arabia.
Velarde said they are negotiating with a number of banks to create a third consortium for foreign exchange remittances.
"Since the telecommunications market is very competitive, we have to be choosy with our market segments. We are thus capitalizing on our existing strength in 16 countries," he said.
NMI currently has a network covering the entire Metro Manila, from Baguio in North Luzon up to Batangas in Southern Luzon.
Expansion is now ongoing in the Visayas with the Cebu City coverage available by end of March 2007 and soon in Davao City as well as other key cities nationwide, Velarde said. (MSN/Sunnex)
