Malaysia’s REDtone sells IPTV division

Malaysian service provider REDtone is quitting the IPTV game in order to focus on its broadband and telephony customers, according to local financial daily The Malaysian Reserve.

REDtone, which launched its IPTV service in January 2010 primarily targeting the country’s Chinese population, is reported to have divested three loss-making non-core businesses last month: REDtone Multimedia (which operates the IPTV service), REDtone Software and REDtone Mobile.

REDtone International is believed to have sold its 80% stake in REDtone Multimedia to Swift Bell Consolidated for MYR 3.4mn (US$ 1.1mn) last April, with CCSB Consulting picking up the remaining 20% in June.

Malaysia’s pay-TV market is dominated by DTH operator Astro All Asia Networks, which has over 3mn customers, representing more than 90% of the country’s pay-TV market, and has operated a free DTH service since February 2012, aimed at low-income households.

Astro launched an over-the-top (OTT) video service called ‘Astro On-The-Go’ last June, delivering much of its premium live and on-demand content to connected devices such as smartphones, tablets and laptops, in an effort to target more potential customers who are not keen to sign up to a lengthy contract.

Meanwhile, Telekom Malaysia launched its IPTV service ‘Hypp.TV’ in March 2010, delivered over the country’s new High Speed Broadband (HSBB) network but thus far hindered by lack of access to top content controlled by its competitor Astro. Reports estimate that the telco had reached 130,000 IPTV subscribers by late 2011.

Finally, broadband operator Vasseti Datatech (VDT) is reportedly considering launching an IPTV service before this September, offering a few hundred channels through its managed services operator GLBB-Japan.

Via The Malaysian Reserve

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