Written by Bilqis Bahari

18 Jan 2012

KUALA LUMPUR: Nextnation Communication Bhd (NCB), a mobile platform developer, is set to further expand its business in the Indonesian market.

The company has entered into a Heads of Agreement (HOA) with PT Inovisi Infracom TBK (INVS), a full integrated mobile information technology (IT) infrastructure provider in Indonesia.

NCB Group CEO and managing director, Larry Tey said the company is confident to get at least a minimum revenue of US$22.5 million (RM70.5 million) in three years' time since the telecommunication industry in Indonesia is booming.

Under the HOA, NCB will establish the basis for cooperation and collaboration on the supply of InoConnect IP Interconnection and InoConnect Bandwidth Optimiser.

InoConnect IP Interconnection is a service platform serving telecommunications operators to deliver Internet Protocol (IP) services, while InoConnect Bandwidth Optimiser is a system that reduces large data packets into smaller ones allowing data to be sent out via faster and more consistent IP networks.

"The telecommunication company goes through the first generation of voice or calling phones. Second generation there's messaging, bandwidth, broadband. The third generation is where the mobile and the internet connects which is called the mobile internet," he told Business Times after the press conference held on the HOA yesterday.

"Currently the infrastructure in Indonesia is unable to cope with the demand of mobile internet so therefore that is where the new growth area is," he added.

NCB's service offerings are dedicated to meet the competitive procurement requirements demanded by the high growth and high speed mobile Internet space.

The company estimates it will invest around US$5 million (RM15.7 million), which will be financed by a combination of NCB's cash reserves, bank borrowings or equity financing.

The company also targets to achieve a cumulative profit contribution of about US$7 million (RM21.9 million) over the initial period of three years.

The URL link is as below:

 http://www.btimes.com.my/Current_News/BTIMES/articles/20120117214321/Article/