Maxis Business Essay

2396 words - 10 pages

OVERVIEW OF TELECOMMUNICATION SECTORAs in most countries, communication services in Malaysia have been traditionally provided on a monopolist basis. Several policy initiatives have been undertaken to foster competition in the country include those that are relevant to the determination of boundaries between competitive and monopolistic markets, licensing of new entries, monitoring performances and several practices related to maintaining sustainable competition in the market. Competition has gradually been introduced in many sector areas including the local loop, wireless, international and value-added segments.The key to this development trend is to enhance liberalisation efforts that have taken by the government to allow private participation in the sector. Currently there are 6 licensed telecommunication companies which provide telephony services; Telekom Malaysia (fixed & cellular), Celcom (fixed & cellular), Maxis Communication (fixed & cellular), TIMECel (fixed & cellular), Digi (fixed & cellular) and Mobikom (cellular).KEY ISSUESFor this project I have chosen 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). I have organised my analysis of the company around two key points: company dynamics and the potential of the Malaysian market.COMPANY BACKGROUNDMaxis was incorporated in Malaysia on 19 October 1986 under the name of Binaring 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 it is currently known as Maxis Communication Berhad.In 1993, Maxis obtained telecommunications licences authorising the company to operate domestic fixed line and mobile networks on a nation wide basis as well as an international gateway facility. Subsequently the company initiated mobile telecommunication operations in August 1995, becoming the first digital phone service to employ GSM technology. Shortly afterwards in 1996, the company launched its domestic and international wireline ventures. Maxis's rapid progress in telecommunication continued with the earliest rollout of comprehensive WAP services of any operator in the country, as well as the first GPRS and #G calls in Malaysia.COMPANY DYNAMICSMaxis is not only the leading market share of subscribers, but also the highest profitability on a wide range of operating measures. The key achievements of Maxis over the last five years (1998 to 2002) have been a direct consequence of management excellence and no accident. I believe strong branding has underpinned the...

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