The Star – Green Packet set to grow solutions business
PETALING JAYA:?GREEN PACKET BHD’s recent tie-up with global giant China Mobile Ltd has thrust the former’s solutions business into the limelight.
While the company has recently been in the news for its FinTech and Internet of Things forays, its telecommunications solutions business is seeing a revival of sorts.
Recall that Green Packet’s original business was the supply of Internet access devices and the wholesale of telecommunications voice and data minutes.
A year ago, the group hired China national Frodo Rao to head this division as a chief executive officer of Green Packet Solutions.
It is understood that Rao had been instrumental in securing Green Packet’s tie-up with China Mobile, touted as the world’s largest telecoms operator, going by the number of subscribers.
Last week, Green Packet said it had entered into a definitive agreement with China Mobile’s unit, China Mobile Group Device Co Ltd, to jointly promote, sell and distribute each other’s products and services.
StarBiz asked Rao if the tie-up with China Telecom entails Green Packet looking to play some role in the supply of telecom equipment and services into the US market in light of the ongoing US-China trade war.
In an e-mail reply, Rao said: “As a Malaysian company, we can access into any markets in the world and this is especially valuable to our Chinese partners finding solutions to arrest the impact of the brutal trade war.
“In the last few years, we have focused on expansion into emerging markets to grow with these markets. And this is still a lucrative strategy, especially with faster and shorter sales cycle and eight out of 10 customers continuing to buy from us once we win them,” he said.
“However, we are not blind to the new dynamics of geopolitical developments and will craft out strategies to create and capitalise on new opportunities,” he added.
Rao said that since his appointment as head of Green Packet’s solutions business, he has helped the division grow into markets like China, the Middle East, Africa and Europe.
Rao had served as a country manager for Huawei in Africa. Following that, he took on an entrepreneurial path and founded Shenzhen Memo Technology, which designs creative video streaming and casting products. Green Packet had invested in the company in 2016 and now owns 20% of the entity.
Rao concedes that China Mobile is known as the world’s largest telecom operator but not much is said about its product or device arm.
“China Mobile’s device arm may not be common knowledge but there is a lot of focus on growing this business. Currently, only a little over 30 countries use China Mobile’s products and services. Compare this with their domestic market, it is just 2% of its annual product and services sales amounting to around US$11bil.
“What is very exciting for us is its firm target to grow its international sales contribution from 2% to 10% in the next two to three years. And that is where we come in. Green Packet can support China Mobile’s international market expansion as we are already selling into 70 countries.
“Whereas for Green Packet, we have secured the best possible way into Asia’s and the world’s biggest market via the country’s market leading operator. China Mobile also looks forward to expanding its offerings to the Chinese market with our wide range of CPEs.”
CPE refers to customer premise equipment such as Internet modems in homes and offices.
On the potential revenue contribution to Green Packet from the China Mobile agreement, Rao said: “I will not get into revenues but the prospects from the China Mobile agreement are good. 2018 figures show that the capital expenditure of China’s three major operators was US$4.34bil (RM18bil), pre-5G.
“China also has the world’s largest mobile Internet community. China issued 5G licences in June this year and is going full steam ahead. With the China Mobile agreement, which we worked very hard to pursue and secure, Green Packet has a share of this market through the market leader.”
Rao added that in terms of 5G, China Mobile is leading the charge, having deployed more than 50,000 5G base stations and is set to launch commercial services in 50 cities in China. It also has 10 million pre-registered users.
“With this first mover experience and sizeable test-bed for the 5G ecosystem of network, device and new innovative services, global telecoms and the industry is looking to China and China Mobile to guide their own 5G transition plan,” said Rao.
He added that Green Packet Solutions is a top five global supplier of CPEs serving all categories of telecommunications companies.
“We have been preparing for 5G for some time. With 5G being 100 times faster than 4G and its low latency differentiator, opportunities are supercharged as it will support and unlock the true potential of emerging technologies and even enable many new business models,” he said.