Celcom Marketing

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Asian financial crisis in 1997 really gave an impact to Celcom. Tan Sri Tajuddin Ramli the owners of Celcom suffered a debt crunch. As a result, Danaharta which is the National Asset Restructuring Company seized his shareholding in Celcom. The controlling stake in Celcom later on being sold to Telekom Malaysia due to Failure in resolving his debts. Telekom Malaysia then proceeded to merge Celcom with TMTouch its own mobile operator subsidiary.

Effect of inferior management from previous management, an arbitration panel in Switzerland ruled that Celcom was found liable to pay DeTeAsia US$177.2 million in principal for infringing an agreement signed .they also need to pay US$16.2 million in interest as well as other arbitration and legal costs.

Telekom then intensifies its efforts to recover from the haunting of Celcom’s tumultuous past and finally manage to become one of the largest telecommunications service providers with close to 12 million subscribers in Malaysia. Prepaid and postpaid mobile voice services still are their core business. Beside that Celcom has also achieved significant growth in mobile broadband, enterprise solutions, bulk wholesale services and m-commerce.

2.0 SITUATION ANALYSIS

For the first nine months 2016, total revenue and service revenue by the three incumbents totaled at RM 16.3 billion and RM 15.46 billion, respectively. A year ago, the total revenue by these Big 3 were RM 17.15 billion. While the total service revenue is RM 15.92 billion.

It was a challenging period for Malaysia’s ‘Big Three’ mobile operators in the first nine months of this year, with the industry as a whole having recorded a decline in revenue and earnings. The decline is not cause by the shrank of the market size but cause by price war that force the mobile service provider to either reduce their product and services or to introduce interesting promotion to remain competitive in the market.

Out of the big three, Celcom is the biggest loser in terms of revenue due to its total revenue shrank for the first nine month 2016 period to RM 4.97 billion from RM 5.53 billion in the same period of 2015 .while the total service revenue declined by RM 600 million at RM 4.50 billion.

It is surprising to see that Maxis in 3rd quarter of 2016 has somehow managed to grow its service revenue market share to 40.7% despite the intense competition. Over a year ago in 3rd quarter of 2015, its service revenue market share stood at 38.1%, and in 3rd quarter 2014, it was 36.7%. (Note: Service revenue does not include the sales of mobile devices)

Q3 2016

Q3 2015

Revenue

Market share

Revenue

Market share

Maxis

RM 6.4 b

39.26 %

RM 6.43 b

37.5 %

Digi

RM 4.93 b

30.24 %

RM 5.19 b

30.2 %

Celcom

RM 4.97 b

30.50 %

RM 5.53 b

33.5 %

RM 16.3 b

RM 17.15 b

Source: digitalnewsasia.com

Q3 2016

Q3 2015

Service Revenue

Market share

Service Revenue

Market share

Maxis

RM 6.29 b

40,7 %

RM 6.06 b

38.1 %

Digi

RM 4.67 b

30.2 %

RM 4.76 b

28.9 %

Celcom

RM 4.50 b

29.1 %

RM 5.10 b

32.0 %

RM 15.46 b

RM 17.15 b

Source: digitalnewsasia.com

[pic 1]

Source: digitalnewsasia.com

Celcom in Q3 2016, although manage to grow its prepaid subscriber’s market share suffering a decline in postpaid market share at 70 000 from 2.87M in Q3 of 2015 to 2.8M in Q3 2016

Digi.Com Bhd which once was just a small player among compare to the others incumbents continues to hold the pole position in the overall subscriber base market share.Although it was justa narrow lead of 34.55% share. Digi in the Q3 2016 lead 0.55% against Maxis with 34% and clecom with 31.45%.

[pic 2]

Source: digitalnewsasia.com

Thanks to its ability to grow both its prepaid and postpaid customer base,Digi managed to secure its leadership position.They managed to achieve it at a time when its rivals are struggling to do so. its postpaid customers expanded by 210 000 and prepaid customer base grew by 360,000 for the the past 12 months.

[pic 3]

Source: digitalnewsasia.com

Even though Digi managed to grow its postpaid base unfortunately they is still unable to beat get Maxis in postpaid segment. The third quarter of 2016 Maxis is the “Postpaid King” with more than 2.96 million postpaid customers. Maxis lead the postpaid segment about 970,000 customers more than Digi.

[pic 4]

Source: digitalnewsasia.com

3.0