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Maxis Communications Essay

5477 words - 22 pages

Maxis Communications

Maxis Communications Berhad (Maxis) is a mobile focused telecom
service provider with fixed line and IDD businesses to support its
wireless operations. It is the number one cellular service provider in
Malaysia by quality and quantity of subscribers as well as
profitability. The major part of my research on Maxis will focus on
its mobile division because this currently comprises the bulk (over
90% of the total revenue) of the company's operations. The company is
well placed within an expanding and stable Malaysian telecommunication
market, which should support continued fundamental expansion off an
already impressive base. Given what Maxis has already achieved, the
company will likely remain one of the foremost Southeast Asian
operators.

MAXIS, KING OF THE RINGTONES

INTRODUCTION

This paper reviews the performance of Maxis Communications Berhad
(Maxis), a mobile focused telecom service provider with fixed line and
IDD business to support its wireless operations. It is the number one
cellular service provider in Malaysia by quality and quantity of
subscribers as well as profitability. The major part of my research on
maxis will focus on its mobile division because this currently
comprises the bulk of the company's operations (over 90% of total
revenue). The review period covers 5 years from 1998 to 2002.

I have organised this paper into three sections to provide a better
understanding of Maxis's survival and its competitive edge in the
telecommunication market. The first section explains Michael Potter's
theory on Competitive Strategy. As for the second section, I will
analysis the telecommunication industry and the third section will be
an analysis on the company's performance.

DATA

The data for this review is obtained from various sources. The data on
company's financial performance is taken from the annual report for
the financial year ending 31 December 2002. The information on market
shares and regulatory issues is obtained from the Malaysian
Communication and Multimedia Commissions and Ministry of Energy,
Communication and Multimedia and the population data is from the
Statistics department.

COMPANY BACKGROUND

Before I proceed on to the analysis part, I would like to provide a
brief description of the company I choose for the assignment. Maxis
was incorporated in Malaysia on 19 October 1986under the name of
Binariang Sdn Bhd as a private limited company. The company became a
public limited company on 5 September 1997, taking on the name
Binariang Berhad. It changed its name again on 12 July 1999 to what is
currently known as Maxis Communication Berhad.

In 1993, Maxis obtained telecommunications licences authorising the
company to operate on domestic fixed line and mobile networks on a
nation wide basis as well as...

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