U Mobile’s Four Pillar Strategy

U Mobile is a new entrant in the Malaysian telecom market and is committed to becoming a leading mobile operator. After a few years of exponential growth, the U Mobile brand is now well recognized by customers and other industry players. U Mobile is advocating innovation and data-centric businesses, so it doesn’t play safe and we will always hear many exciting news. ZTE Technologies recently interviewed Wong Heang Tuck, CEO of U Mobile. He shared with us his thoughts about U Mobile’s 3G and LTE deployments, four-pillar strategy, and partnership with ZTE.

Q: What was your journey to becoming the CEO of U Mobile?

A: I’m excited to be appointed as U Mobile CEO and given the opportunity to lead a challenger in a highly competitive industry. It has not been easy for us as a new entry in the telco industry in Malaysia. The past four years of U Mobile journey have proven that we can make a difference. I am very proud to be a part of U Mobile’s journey of becoming a leading telco and working with a group of extremely talented and committed people.
I believe the journey is going to get tougher in the next few years. Fast growth is always relatively easier at the beginning. Business continuity and performance consistency are what we are looking for. But it’s always much easier to say it than to do it.

Q: Could you give us an overview of the development of U Mobile in Malaysia?

A: U Mobile’s vision is to be the leading mobile operator in Malaysia. In the past few years, the company has demonstrated exponential growth, and now we are very much recognized by the industry as the fastest growing mobile operator. In 2011, we were named “most promising service provider of the year” by Frost & Sullivan. 
Over the past four years, U Mobile has grown its subscriber base from less than 100,000 to more than 4 million. The whole team worked really hard for that, and we are so glad that the brand is now well recognized by consumers and industry players.
Moving forward, we will continue to strengthen the four pillars that drive our business growth: fast, robust network; innovative product and value-added services; highly penetrated distribution channels; and intelligent back-end system.
Q: Where is U Mobile now in terms of 3G/LTE deployment?

A: Currently, U Mobile owns 4000 home network sites, and we have recently announced the roll out of an additional of 2000 3G and 4G sites. These will be completed by the end of 2015. Upon completion, we will have more than 6000 sites across the nation.
Our home network is complemented by 3G radio access network (RAN) share and 2G domestic roaming in suburb areas. We are truly a full fledge telco with nationwide coverage and our consumers have the same level of user experience as the other telcos provide. 

Q: What are the main challenges faced by U Mobile today in deploying LTE? How have you overcome them?

A: U Mobile networks are relatively new compared to incumbents. Therefore we don’t have legacy issues and the upgrade to LTE will be seamless in our case. What we think will be our advantage is the products and services we will offer after LTE is widely available. That can be a game changer.  
Q: What are the most popular services and applications for your local customers?

A: Social networking apps and services are very popular among local consumers, things like Whatsapp, WeChat, Line, Facebook, Instagram and YouTube.
To address the current demands on mobile data consumption, U Mobile is always looking at introducing exciting products that caters to the ever-changing lifestyles of our customers.
Recently, we introduced free data for music streaming in collaboration with KK Box, Era, My.FM, Hitz FM, as well as the partnership with YouTube and Tonton to offer free data for non-stop video streaming of YouTube and Tonton content. U Mobile is the first telco in Malaysia to offer such kind of service and these are all the additional value-added services we provide to our subscribers.

Q:  What is competition like in the Malaysian telecom market now? What are your unique advantages?

A: The increase in smartphone adoption has brought the growing demand for mobile data. Hence, many telcos are looking into mobile internet product and service.
U Mobile has always been a data-centric mobile operator and data service has been one of our core strengths. I’m confident that we are a market leader in terms of product innovation, offering high value services at affordable rates comparing to bigger incumbents.
Heavy capex is normal in the telco industry. U Mobile has the advantage of light capex and lean opex structure. We have unique network strategy that has enabled us to provide nationwide coverage at a pace no other telco could have done in Malaysia. We have brought significant savings which were channeled to consumers through innovative and affordable product offerings and value added services.  
Q: What is your strategy for the next three years? How will you implement this strategy?

A: We will continue to focus on our four key drivers.
First is network. We will continue our aggressive network expansion and upgrade initiative to cater to our growing subscriber base and market presence nationwide. We will never compromise on network quality, which is the backbone of our product and service offerings.
Second, we will continue to lead in product innovation. We have to be creative in our product and service offerings. We have introduced many first-of-its-kind services to the market in the past year. We will stay fresh and bold.
Third, we will further expand our distribution channels. Currently we have a unique channel strategy combining traditional sales distribution and an “alternative channel” network comprising retailers, electrical chain stores, grocery stores, and supermarkets. Our partnership with these alternative channels brings U Mobile services closer to our consumers and made our presence nationwide.
Last but not least, we will improve our back-end system, which we believe will bring great benefits to our customers and business. 
In summary, U Mobile doesn’t play it safe and you will always hear exciting news coming from us.  
Q: As user experience becomes more important, operators are shifting their focus from network performance to customer experience. How is U Mobile transforming in this regard?

A: Customer experience needs to be supported by network performance. U Mobile believes that in order to deliver superior user experience, we need to look into network, product and service offering, distribution, customer service, and IT system. As I mentioned, we have specific plans to address those areas in the next few years. With all these parts coming together, U Mobile users will feel the difference and stay loyal to our brand and services.  
Q: How do you view the partnership with ZTE and how has ZTE contributed to U Mobile’s growth?

A: ZTE is one of the tier one network solutions providers within the industry with renowned expertise in the field of work, as well as extensive research and development capabilities to offer the latest network infrastructure technologies. In addition, ZTE has implemented various network rollout projects with other major telecommunication players locally, regionally and globally.
U Mobile previously partnered with ZTE on network expansion and rollout, and ZTE has displayed great professionalism, panache and expertise in delivering their services.
We believe the appointment of ZTE as U Mobile’s preferred vendor for our network rollout will bring great benefits to us. We are confident in the technology and expertise of ZTE.  
Q: What do you expect from future cooperation between U Mobile and ZTE?

A: Network expansion and enhancement is always a part of U Mobile’s overall business strategy. We will continue to ensure we provide good network coverage and embrace new technologies. The partnership with ZTE has been a success over the years. We are positive that we will be able to achieve greater heights with ZTE, and U Mobile will definitely look forward to a long term partnership with ZTE.  
Q: How do you see the global telecom market in the future?

A: The global telecommunication market will continue to be vibrant, exciting and challenging for mobile operators.
The growth of mobile internet and devices has changed the way people interact and consume information. We will see further reshaping of consumer behavior and higher demands for seamless mobile experience.
U Mobile wants to capitalize on such opportunities and stay ahead of the game by always offering greater value at the most affordable rate in a bid to exceed the expectation of our consumers and to compete in this dynamic industry.