STML POM: May 2012

Monday, 21 May 2012

INDUSTRY


Define the Background of Industry

Industry of Telecommunication

MAXIS are Malaysia's leading telecommunications company and market leader with a total mobile phone subscriber base of more than seven million, as at 31 December 2005. Maxis continue to enhance how people communicate and live with an impressive array of innovative products and services. Surpassing the seventh million mark has become a milestone in our list of achievements. Maxis’ expansion into Indonesia and India is another milestone in our aspiration to be a regional communications operator. The acquisition of a 51% stake in PT Natrindo Telephone Seluler (NTS), Indonesia and a 74% equity interest in Aircel, India will provide tremendous growth opportunities for Maxis. These acquisitions give Maxis a strong foothold in two of the world’s most attractive high-growth, low-penetration markets, while diversifying our market base.
CELCOM now is known as a CELCOM AXIATA. Its currently in the mobile telecommunication services industry. CELCOM is the oldest telecommunication company in Malaysia. CELCOM was originally listed on the Bursa Malaysia, but after the merger with Telekom Malaysia Berhad, it has remained private. CELCOM is the Malaysian partner of the Vodafone mobile community. CELCOM current CEO, Dato’ Seri Mohammed Shazalli Ramly, has been with CELCOM since 2005.His contract expired in 2007 and has been renewed for another 3 more years. TM International has been renamed as AXIATA as part of a telecom consortium in the south east Asia. Its Stock Exchange code is AXIATA.
DiGi Telecommunications Sdn Bhd (hereinafter known as DiGi), a subsidiary of DiGi.com Berhad (former name: Mutiara Swisscom), is a mobile communications company that engaged in establishment, maintenance and provision of telecommunication and related services. DiGi, was established in May 1995, primarily operates in Malaysia with its headquartered in Shah Alam, Selangor. DiGi sister company, Pay By Mobile Sdn Bhd deals with electronic financial services, while its subsidiaries are DiGi Services Sdn Bhd (property holding, renting of premises) and Djuice.Com Sdn Bhd (others related services).

  Figure 1.1 Market Shares of 3 Telecommunication Companies in Malaysia.

Tools Used To Describe the Industry: Pest Analysis

Political
In 2008, the government announced all Telco users compulsory to register their SIM CARDS because there is a lot of crime happening through phone calls, text messages, and MMS. During economic downturn, a lot of employees were retrenched. Since unemployment rate is high, crime level in the country tend to increase. Due to this, the government started to recruit staff to work in the public sector. Mobile and internet is misuse to deliver political views. They also use mobile and internet to plan demonstration.

Economy
In 2009, the whole world was facing economic downturn. Malaysia was badly affected by this, but the way consumers behave showed that there is no effect on them. Internet and mobile technology has widely used in business to follow the economic situation.

Social
Consumer is tastes changes as they pay high price for quality product in terms of acquiring the latest technology plus good customer services. The latest social trend is people like to SMS more nowadays. With SMS consumers could convey their message in the cheapest way. The family structures in the recent day are couple like to have only 2-4 children’s only. Compare to the olden days couples would have 4-7 children’s. This would influence the pattern of mobile usage/users. Hand phones and internet technology has become a trend in the new millennium and consumers tend to change just to use the latest mobile plans.

Technology
Nowadays top up for prepaid phones can be done through internet transaction. Payment could be done using kiosk machine which is situated at hot spots. Improvement in communication technology. By using hand phone, users can call their friend and look at what they are doing via 3G. 3G enable users to view users from different places. If users were to use internet, they can do video calls. Users can surf internet to check mail, facebook, twitter, map (GPS). They even could check their account, bills and latest packages and plans online. E-learning, nowadays studies is not necessary done at class room only. New improvement in technology has enable users to learn virtually. As long as the users can surf the internet user can study anywhere and anytime in the world.

THE COMPANY


Background of the Company (Maxis)


Maxis are Malaysia's leading telecommunications company and market leader with a total mobile phone subscriber base of more than seven million, as at 31 December 2005. Maxis continue to enhance how people communicate and live with an impressive array of innovative products and services. Surpassing the seventh million mark has become a milestone in our list of achievements. Maxis’ expansion into Indonesia and India is another milestone in our aspiration to be a regional communications operator. The acquisition of a 51% stake in PT Natrindo Telepon Seluler (NTS), Indonesia and a 74% equity interest in Aircel, India will provide tremendous growth opportunities for Maxis. These acquisitions give Maxis a strong foothold in two of the world’s most attractive high-growth, low-penetration markets, while diversifying our market base.
Apart from that, Maxis was the first to launch 3G Connect Card, PC Webmail, Video Mail and 3G prepaid. They are having significantly increased the 3G service coverage since its launch in July 2005, catering to more than 740 sites across Malaysia. Their growing high-performance 3G network offers mobile telephony at broadband speeds enabling Internet access throughout Malaysia. Both mobile phone and laptop users can now enjoy enhanced communication combined with extensive entertainment and information on the go, such as video calls, live mobile TV, games and wireless broadband Internet with transfer speeds of up to 384 kilobits per second. The aim: affordable, instant access with real time-results.
Maxis Berhad is the leading mobile communications service provider in Malaysia with over 11.4 million mobile subscribers as of 30 June 2009. Maxis has been providing a full suite of services on multiple platforms to fulfill the telecommunications needs of individual consumers, SMEs and large corporations in Malaysia since it was established. Maxis mobile service is offered on a postpaid basis under the Maxis brand and via a prepaid format under the Hotlink brand. The use of these two distinct brands, underpinned by synergistic values, has enabled Maxis to develop its prepaid business successfully while maintaining growth in its postpaid segment. Maxis has also pioneered and led the Malaysian market in delivering innovative mobile products and services. It was the first to launch 3G services in Malaysia and it is known as Maxis3G. In July 2005 and in September 2006, it became among the world’s first to use HSDPA, where it is a high-speed upgrade of its 3G network, to provide wireless broadband services. It was the first operator to bring the Blackberry and Apple iPhone (smart phones) to Malaysia.

2.1.2    Location



Figure 2.1 Location of Maxis

Maxis Berhad Corporate Affairs Level 18, Menara Maxis Kuala Lumpur City Centrel, 50088 Kuala Lumpur.

THE COMPETITOR


Background of the Company (DiGi)



Digi is a telecommunication company, also a mobile service provider in Malaysia. Forty nine percent is owned by Telenor ASA of Norway. Digi is listed under the main market of the Bursa Malaysia. Digi became the first telco in Malaysia to commence and operate with a fully digital cellular network on 24 May 1995. After two year, Digi was publicly listed on the year of 1997, known as Mutiara Swisscom Bhd. The holding of company changed the name of Digi Swisscom Bhd to Digi.Com Berhad on the year of 2000.
Digi is under the list Digi was the first telecommunication company that offers GPRS (2.5G) and the EDGE (2.75G) in Malaysia on 14 May 2004. Digi primarily uses the GSM1800 band with the network code of 50216. Digi is listed on the Bursa Malaysia under the Infrastructure category act.
Digi uses the native dialing prefix identifier of ‘010’, ‘016’, ‘0143’, ‘0146’ and ‘0149’, although with the implementation of Mobile number portability mandated by the Malaysian government this does not apply to subscribers who switched from their old mobile service provider over to Digi. At the moment, switching to Digi from other telecommunication company (Maxis, Celcom) is free of charge.
The main centre of Digi is located at Lot 10, Jalan Delima 1/1, Subang Hi-Tech Industrial Park, Shah Alam 40000 Shah Alam, Malaysia. The contact number of main centre is +603 5721 1800.

Figure 3.1 Location of DiGi

Lot 10, Jalan Delima 1/1, Subang Hi-Tech Industrial Park, 40000 Shah Alam, Selangor Darul Ehsan, Malaysia.  

Services / Products of DiGi

Plans of DiGi
Digi provides variety of plans for customers to make their favorites choice. Digi has two different plans, which is prepaid call plan and postpaid call plan.

(i) Prepaid call plan
There two plans under this prepaid call plan, which is Digi Easy Prepaid and Digi Best Prepaid. The following table is the comparison between these two plans. For the Digi Easy Prepaid, user can call and SMS buddyz between 12am to 6pm for free and it is for everyday. For the Digi Best Prepaid, user can enjoy the lowest call rate of 12sen/ minute to all networks for any day after hit RM1 in total usage.


Digi Easy Prepaid
Digi Best Prepaid
Starter pack
RM16.80/ pack
RM8.50/ pack
Voice calls
30sen/minute  (non-buddyz)
12sen/minute (buddy between 6.01pm to 11.59pm)

36sen/minute (before hit RM1)
12sen/minute (after RM1 total usage)
10sen/minute (with super 10)
Video calls
30sen/minute
36sen/minute
SMS
8sen/SMS (to non-buddyz)
1sen/SMS (to buddyz between 6.01pm to 11.59pm)
10sen/SMS (before hit RM1)

1sen/SMS (Digi to Digi only, after hitting RM1 total usage)
MMS
25sen/MMS
25sen/MMS
Data
Max RM8 daily (10sen / 10kb before hit RM8)
Max RM8 daily (10sen / 10kb before hit RM8)

(ii) Postpaid call plan
There are three plans under this postpaid call plan, which is DG Postpaid Plus, DG Smart Plan, and iDiGi. DG Postpaid Plus is the ideal postpaid plan for voice-heavy users. Users can talk, text, and share up to 50% more. Smart Plan is the smarter plan for Smartphone. Users can sign up for the most affordable, all-in-one internet and call plan. For the iDiGi, it is the most affordable iPhone plan in Malaysia.

(a) DG Postpaid Plus


DG 48 Plus
(More than 10% extra values
on calls, SMS & more)
DG 68 Plus
(More than 30% extra values
on calls, SMS & more)
DG 88 Plus
(More than 50% extra values
on calls, SMS & more)
Monthly commitment
RM43
RM63
RM83
Voice/video calls
200minutes
300minutes
450minutes
SMS
200sms
300sms
450sms
MMS
20mms
30mms
45mms
Internet
N/A
100MB
200MB

(b) DG Smart Plan


DG Smart Plan 48
(For light Internet usage)
DG Smart Plan 68
(For moderate Internet usage)
DG Smart Plan 88
(For heavy Internet usage)
Monthly fee (without contract)
RM43
RM63
RM83
Monthly fee (12 months contacts)
RM38
RM53
RM73
Mobile internet
1GB/month
3GB/month
5GB/month
Voice calls
15sen/minute
15sen/minute
15sen/minute
SMS
10sen/sms
10sen/sms
10sen/sms
MMS
20sen/mms
20sen/mms
20sen/mms
Roaming
From RM36 per day
From RM36 per day
From RM36 per day

(c) iDiGi


iDiGi 88
Ideal for the
basic iPhone user
iDiGi 138
Perfect for keeping
connected on a daily basis
iDiGi 238
The best way to
connect via iPhone
Monthly Commitment (before auto billing)
RM60
RM93
RM161
Monthly Commitment (after auto billing)
RM55
RM88
RM156
Voice Calls
200minutes
450minutes
1000minutes
SMS
200sms
400sms
600sms
MMS
20mms
40mms
60mms
Internet
1GB
3GB
5GB

Services of Digi

There are two type of services that provided by Digi, which is prepaid services and postpaid services.

i) Prepaid services are to help customers to stay connected no matter where they are. No matter customers are at home, at aboard, or in case of emergency, the services are always there for them. There are 9 type of services that provided by prepaid services.

Type of services
The functions
Buddyz bonus
Get free SMS plus music for you and your Buddyz every time you reload. This is only with DiGi® Easy Prepaid.
Super buddyz with Digi Easy Prepaid
Call and SMS your Buddyz for free all the day, every day.
Super 10 with Digi Best Prepaid
Make voice calls for only 10sen/min to all networks, all day.
Friends and family
Lower call and SMS rates to your favourite numbers.
Talktime services
Talk first and pay later when you're running low on credit.
Roaming
Whether you are overseas or in your backyard, you can make calls to anyone you like wherever you are.
International direct dialing
Make calls to anyone around the world, anytime you like. With DiGi IDD, distance is now just a word.
Calling and voicemail
Call plan features that help you stay connected even if your phone is off or out of coverage area.
Personal accident insurance
24 hour Worldwide coverage against Accidental Death & Permanent Disablement.

ii) Postpaid services are to help customers to stay connected no matter where they are. There are    6 type of services that provided by postpaid services.

Type of services
The functions
Friends and family
Enjoy lower rates to your favourite numbers.
Talktime transfer
Help your Digi Prepaid friends out when they are low on credit.
Roaming
Stay connected by using other mobile networks
International direct dialing
For calls to loved ones overseas.
Calling and voicemail
Call plan features that help you stay connected even if your phone is off or out of coverage area.
Personal accident insurance
24 hour Worldwide coverage against Accidental Death & Permanent Disablement.

Rewards of Digi

Digi is giving out the rewards to their customers. Prepaid call plan and postpaid call plan have different rewards.

(i) Prepaid call plan – Users can get free talk time credit with Digi Reload Bonus and Digi Birthday Bonus.

Types of bonus
Conditions
Digi Reload Bonus
Users must reload minimum of RM120 over 3 months to get this bonus
Digi Birthday Bonus
Users must register their personal detail with Digi to get this bonus

(ii) Postpaid call plan – Users can earn BonusLink point with the every ringgit that they spend with Digi. Users have to do register to enjoy the rewards.

Step 1:
Sign up for a BonusLink Card
Visit the  BonusLink website for easily online registration
Step 2:
Register your Card Number with DiGi
SMS BL <space><16 digit BonusLink Card Number> and send to 2000
or
Register Online

When users want to redeem rewards, there are seven methods to get it. First method is redeeming it through online by www.bonuslink.com.my. Second method is doing it by self service phone system with the contact number of 03-76261000. Third method that users can use is m-services which mean that to ‘Key in <Redeem><space><Last 8 digits of BonusLink Card Number><6 digit PIN> and send to 33088’. Next method is doing by Express Way with Points + Cash (RM) with www.bonuslink.com.my. Fifth method is ‘One the Spot Redemption’ which at over 800 outlets nationwide.
Users also can mail to BonusKad Loyalty Sdn. Bhd. with Level 7, Block C, Menara Glomac, Kelana Business Centre, Jln SS7/2, 47301 Petaling Jaya, Selangor. The last method that we can use is using the fax and send to 03 76627996.