Tron Group to raise RM20m for expansion in IoT sector
KUALA LUMPUR: United Statesbased Tron Group Inc, an associate of local mobile virtual network operator (MVNO) Talk Focus Sdn Bhd, is raising RM20 million this month via a private placement.
Talk Focus chief executive officer Datuk Seri Eric Yap said the funds would be used for the expansion into the Internet of Things (IoT) sector by its parent Technology Revolution On Net (Tron).
Yap told NST Business it had become increasingly important for telecommunication companies to expand into the IoT sector as the telecommunications market was almost reaching saturation point.
“We are looking into physical devices, or rather smart devices embedded with electronics, software, sensors, actuators and network connectivity that enable them to collect and exchange data — resulting in improved efficiency, accuracy and economic benefits, in addition to reduced human intervention.”
Yap said Tron planned to grow the company by 80 to 100 per cent in the next five years by venturing into the IoT business.
Tron received a full-fledged Network Service Provider licence from the Malaysian Communications and Multimedia Commission in 2011.
It aims to increase its subscriber base to three million in the next five years, from the current 400,000 (which represents 10 per cent of the MVNO market share in Malaysia).
The company had gained entry into the US through a reverse takeover of a listed company.
Yap said Tron Group was listed in the OTCQB market on December 28 last year.
OTCQB is the venture stage marketplace for smaller or early-stage companies that report to a US regulator.
It is the middle tier of the three marketplaces for trading of the over-the-counter stocks provided and operated by the OTC Markets Group.
Yap said telecommunications was considered one of the most profitable industries but there was intense competition between the players because of current market conditions.
“Mobile network operators such Maxis, Celcom, Digi and U Mobile are fighting for market share.
“MVNOs are also facing a similar situation that contributes to a price war.
“We do not agree on a price war. We look at the competitive advantages of our product offerings, distribution network and customer support,” added Yap. Sharen Kaur
MVNOs (mobile virtual network operators) are also facing a similar situation which contributes to a price war.