Background of Telecommunication
Everything is moving at a very fast pace in 2013 including technology, marketing, even the customer’s needs. The telecommunication industry world-wide has already evolved and transformed significantly and radically compared with few years ago. In the past few years, consumers communicate with their friends, peers, and families with only plain voice and messaging services, but in these days, there are plenty of rich media and complex services like social networking (Facebook, Twitter, Skype and Whatsapp). According to the statistics, with over 5 billion people owning mobile phones in this world, the numbers of global 3G mobile internet subscribers reached a billion by 2012, there is still a little doubt left that we are living in a highly interconnected world. (Sriram Birudavolu, 2011)
By having such high technology system in this world, people are able to use their mobile phone on plenty purposes. For example, besides of social networking, people are using their mobile phone for mobile banking, location based services, and cloud services (Iaas, SaaS, PaaS, KaaS and etc). Besides that, the creation of smart phones and smart applications allow user to enjoy the services of voice assistants, messaging, task and calendar management, mobile money, gaming, music downloads, video-conferencing like Skype and etc)
In addition, the evolution of technologies that enabling new services is one of the key drivers that caused the current shift of shifting traditional voice-centric mobile telephony services to the new mobile-multimedia services. Besides that, shift from circuit-switched to packet switched infrastructure is also currently in progress. Operators are also keen to commercialize the new technology platforms they have invested in. (Sakarl Luukkainen, 2006)
In order for telecommunication industry to compete in the competitive telecommunication market, innovations and novel ideas are very important due to the fast pace technological changes and also to satisfy customer’s needs from time to time.
1.2 History of Telecommunication in Malaysia
In Malaysia, the industry has aggressively developed telephone and telegraphic services through many years after the First World War to sophisticated telecommunication network using fiber optic cable, microwave and satellite system to link the communities in the rural and urban area. This evolution not only encouraged stirring a rapid growth of other services such as mobile telecommunication radio, trunk radio, paging system but also data services including switching services, telefax, datel, etc. government also played an important role in supporting the industry in making progress. In 1987, "Malaysia's Incorporation" policy had agreed to take out one of the government functions related to telecommunication to be operated in more diversified and formed Telecom Malaysia which is a government-owned company. But few years then, this company was privatized via "Malaysia's Privatization" policy. Thus, the Ministry of Energy, Telecommunication and Post is responsible to formulate policy related to the short and long-term courses of telecommunication sector while the Malaysian Telecommunication Department is responsible to monitor the progress of that particular sector.
Meanwhile in Malaysia, telecommunication industry continued to evolve over the past 10 years. The rapid growth of mobile telecommunication and increasing usage of VoIP (voice over IP) has resulted to the decline of local fixed line business in 2008. At this moment, growth in telecommunication industry is mainly contributed by the cellular segment, whilst the broadband market has been growing rapidly. in the mobile service market, prepaid services is the most significant driver of subscriber’s growth and injected a huge amount of revenue into the industry compared to postpaid due to the large amount of prepaid users in Malaysia. According to the report...
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