CTM profit up 3.82 pct in 2015

Local telecommunications operator Companhia de Telecomunicações de Macau SARL (CTM) posted a profit of MOP1.15 billion (US$144.3 million) for 2015, a slight increase of 3.82 per cent year-on-year from MOP1.11 billion, the company announced yesterday at a media Spring luncheon.
Last year, the city’s dominant telecommunications service provider generated revenues of MOP5.18 billion, which jumped by 6.3 per cent year-on-year compared to MOP4.87 billion for 2014. The company said its business growth was primarily attributable to areas of business solutions, the Internet, mobile and leased line services.
According to its 2015 annual report released yesterday, CTM had a total of 821,000 mobile customers, of whom mobile data customers amounted to over 200,000 as at last year-end. Meanwhile, its number of Internet customers reached 170,000, of whom 57,000 were home users of fibre broadband.
Record-breaking investment
Meanwhile, the operator said it had invested a total of MOP693 million last year – which includes infrastructure for the 4G network as well as improvement works for its 3G and 2G services. The investment amount, described by CTM as ‘the highest on record,’ represents a hike of 33 per cent compared to 2014.
Asked by reporters about the operator’s expected investment amount for this year, Chief Financial Officer Patrick Ip declined to disclose the related information yesterday.
“I can only disclose that our investment amount will remain at quite a high level… as CTM still aims to develop Macau into a digital city despite the economic downturn,” the CFO claimed.
4G subscribers reach 60,000
On the other hand, the operator’s total 4G subscribers reached 60,000 as at the end of last month following its launch of the new service last October, according to its vice president of Commercial, Ebel Cham.
“[The number] of 4G users has actually grown faster than our expectation. But our goal is to have all our mobile users shift to 4G service in the future,” the officer said.
Claiming CTM had reduced tariffs several times in 2015, Ms. Cham did not indicate whether the company would reduce its 4G service charges in order to attract more customers.
“We have reduced our overall tariff three times last year. Meanwhile, we have launched different packages targeting different customers. We are in a competitive market [in which] I believe all operators are launching different packages for customers to choose,” she said.
“Stable network”
During yesterday’s press briefing, the Chief Executive Officer of CTM, Vandy Poon Fok Hei, denied the company’s 4G network is unstable and often switches automatically to the 3G network.
“The 4G and 3G networks are complementary to each other. The switch from 4G to 3G is not due to network instability but depends on [the design] of mobile phones nowadays,” the CEO said.
According to Mr. Poon, the voice function of most mobile phones nowadays is designed based on the use of the 3G network. “As such, when customers make phone calls, the network will automatically shift to 3G but it will shift back to 4G when the call ends,” he explained.