1.0 Background Information of Companies
1.1 Digi.com Berhad
Digi was established in 1995 which is a company that launched digital cellular network in Malaysia. Before the company change to “Digi” is known as Mutiara Swisscom. Because of the strategic alliance with Telenor international, the company change name to Digi. Digi also is the first operator in Asia that become part of international roaming platform and commercially launches the use of dual-band mobile phone. In 1999 the company has lunched many services such as short messaging system (SMS), voicemail and which GPRS (general packet radio service) introduce to its prepaid mobile subscribers in nationwide is in 2002. At the same time Digi also is the first telecommunication company in Malaysia to offer international roaming. Moreover Digi also sign an agreement with Yahoo Asia to offer WAP-enabled online service in year 2000. Inside the agreement it also includes supply and implementation of GPRS technology from Yahoo. In 2005, the network coverage is expanding till Sarawak area which means that Digi will acquire a big market besides in west Malaysia market only. Digi team up with Maybank to introduce new services which is customer of Maybank can reload or register their prepaid phone through maybank2u.com in 2006. In year 2009, the company owned Pay By Mobile Sdn. Bhd. and cooperate with Microsoft to offer Windows Live Messenger to Digi subscribers.
1.2 Telekom Malaysia Berhad
Telekom Malaysia (TM) is one of the mighty companies in telecommunication industry in Malaysia which transfer from Jabatan Telekom Malaysia and in 1987 become first Malaysian private company. In 2001, TM has launch CDMA which is code division multiple access technology broadband and Bluehyppo.com. After two years later TM merge with Celcom thus become the largest cellular operator in Malaysia. Between year 2005 till 2009, the company has form many agreements with others international company and also set up or invest in different countries such as acquired Excelcomindo (XL) in 2005 which is owned subsidiary in Indonesia. After TM group sold 3.2% of its share in Dialog in 2007, TM was formed a strategic alliance with Amcorp Group AmBank and MSM to leverage and strengths to widen their distribution network. So in 2008, TM is decided demerge its mobile and fixed businesses into two entities. Because of de-merger mobile operation as a separate public listed company in Malaysia as ‘Telekom Malaysia International’ (TMI). The most recent project in TM is the company launches HSBB which is High Speed Broadband in few areas such as Perak, Kelantan, Perlis, Kedah and Negeri Sembilan.
2.0 The Industry Analysis
Overview of telecommunication industry in Malaysia is highly competitive and this industry is said to be one of the fastest growing industry in Malaysia. Telecommunication industry can be characterized as a fruitful and profitable industry due to the following.
PORTAL ‘s five competitive forces
2.1 Threat of the new entrants:
Telecommunication industry is considered as a profitable industry is due to the high entry barriers created by government to this industry. Entry barriers reduce the rate of entry of new firms, thus maintaining a level of profits for those already in the industry. In this industry, the Government has taken steps to introduce managed competition in the industry by offering various telecommunications licenses. To date, the Government has awarded only eight mobile licenses to operators in Malaysia. For example: Telekom Malaysia had a virtual monopoly on telecommunications services in Malaysia 2.2 Rivalry among existing firms:
Profitability of the industry also affected greatly by the intensity of competition among existing firms in the industry. Telecommunication industry consists of only several mobile operators such as TM, Maxis, Digi due to the entry restriction that imposed by the government. Therefore, rivalry among Competitors Telecommunication...
Please join StudyMode to read the full document