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.