OVERVIEW OF TELECOMMUNICATION SECTOR
As 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).
For 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.
Maxis 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.