Little-known Irish mobile technology firm Qtelmedia has signed deals with two of the main mobile networks in Malaysia to provide mobile television services, and is increasing revenues by 20-25 per cent a month, writes John Collins.
Rather than simply selling software to the operators, Qtelmedia styles itself a "content network". It signs deals with content providers such as Fox Sports, English Premier League clubs and Malaysian television stations, converts the video into the correct format for hundreds of mobile phone models, and delivers them to the mobile operators' networks. It even controls the price paid by the customer and handles the billing.
Led by Irishwoman Sinead O'Sullivan and backed by local wealth management company Finance Life, Qtelmedia made a conscious decision to establish a base in Malaysia, where it now has access to 15.2 million customers due to the contracts with the two networks, Maxis and Digi.
Ms O'Sullivan said the main reason the company was based in Asia was the high level of mobile phone usage and the large markets in the region, but most importantly the fact that Asians have consistently been early adopters of new technology.
"Malaysia quickly rose to the top of the pile, primarily because of the government supports available," she added.
Qtelmedia has qualified as a "Malaysia status company", a scheme which provides tax-free status for certain foreign companies that meet strict financial and technical criteria.
Maxis and Digi both had a mobile television product in place for more than a year when Qtelmedia came calling, but both had fewer than 1,000 customers.
Ms O'Sullivan would not reveal the revenues it is generating in Malaysia, but said they had grown "exponentially" since the services were launched earlier this year. The company takes more than 70 per cent of the price charged to the subscriber.
Ms O'Sullivan admitted that the Malaysian market is very different to Europe. For example, about 98 per cent of mobile users there are on prepay contracts rather than bill pay, so one of the challenges is to ensure subscribers have enough credit.
The company plans to use its investment in a network operations centre in Malaysia to support its entry into neighbouring markets such as Thailand, Indonesia, Singapore, the Philippines and Bangladesh. It is also finalising a deal on a centre in Dubai, which will enable it to target operators in the Middle East.
The challenge for the 40-person company will be to replicate the model in Europe, where more advanced operators may be loath to cede so much control to a low-profile Irish start-up. Ms O'Sullivan said they would initially target the European owners of the Malaysian networks.
