Time DotCom, the Blood-Sucking Leech that never dies?





Jan 16 2009
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Remember how one of the worst and dying companies in town was awarded the precious 3G license while another successful company was denied not many moons ago? The puzzle was solved when Time DotCom Berhad (KLSE: TIMECOM, stock-code 5031) was literally given free 27.5 million shares in DIGI.com Berhad (DIGI : stock-code 6947) in exchange for a piece of paper – 3G license. With a stroke of a pen (approval for the 3G license) the good for nothing Time DotCom was given RM700 million pocket money to fool around *spa anyone, grin*. Of course the icing of the bail-out deal was the fact that DIGI.com was actually leasing the 3G license for 10-year period, after which the playboy Time DotCom would charge again in exchange for that piece of paper (3G license).

Time DotCom has just reduced its stake in DIGI.com after it disposed 22.5 million shares for RM463.5 million cash or RM20.60 per share in order to reduce borrowings. Can you see how DIGI.com was actually paying Time DotCom’s huge debts? Sure, DIGI.com can choose not to pay for the 3G license and send the cash back to Norway but it could have done the arithmetic and found out that it stands to make profits even with the parasite stubbornly sticking to it, feeding on whatever leftover disposed by DIGI.com along the process.

To eat up DIGI.com alive is easy but the problem that the government faces by doing so is to find the replacement for DIGI.com’s management. The greatest asset of DIGI.com is the people that build the brand and subsequently the customer-base. Time DotCom on the other hand does not have the quality people who have the forte to grow the company even though the company was listed more than a decade ago. Fortunately Time DotCom has the backing of government who could help in other way (such as securing the 3G license) so that the company may stay afloat. Long-term wise it is no-brainer that Time DotCom needs to buck up but the question is will the company ever able to stand independent on its own without begging for money the cheat-way anymore? Already the people inside Time DotCom are more interested in playing politics instead of develop the company.

Time DotCom LeechHence for the time being it’s wise to leave Time DotCom sticks onto DIGI.com like a leech and profit from there instead of force itself and risk creating another monster Time DotCom – with bigger issue of debts. You have to remember that part of the deal between Time DotCom and DIGI.com partnership was to provide training to the former on how to run a telephony business so you can guess why Time DotCom was suffering all these years. They’ve no idea how to run a telco business, let alone the profitability aspect of it *poor thing*. But there’re other problems besides the right people needed to run the business. The whole organization structure of Time DotCom needs revamping, not to mention a strong corporate leader is required to provide direction and to execute business plans. The company needs to be run like a business empire, not like a political party.

However it’s easier said than done considering the culture in Time DotCom resembles that of political party UMNO. Groups of cronies are flourishing and you would get culture shock if you’re not prepared to adapt the working environment. When another severe recession strikes Time DotCom could dies naturally the same way Renong died during 1997-1998 Economic Crisis.

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Comments

Hello Dear ,
Thanks for this information , it’s very interesting ti see how different monetization sources can help a blog . I’m always amazed at those who are able to make numbers in the online doing blogs.

You mean after all these years those guys have not figured out what to do with their fiber network? Gwarsh!
What a waste …..

hello harry, indeed it was a waste …

cheers …

Sorry dude !! Either the author is a 3G license desparado or perhaps I guess the author of this article is the one with out-dated brain…!!! Get to the ground first and figure out what is happening TODAY (I meant as of today and not yesterdayt OK !). Past is past. TIME’s new journey has just begun.

i am working in TDC, i totally agree with this blogger. TDC is truly a shit company the staffs always get out of TDC.Reasons?Read what this blogger says.

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