Search Here

Search Here

Sunday, March 2, 2008

FINAL ASSIGNMENT (1st semester)

FINAL ASSIGNMENT (1st semester)

Digi Company:

Assessing its economic, industry and global conditions.



(Student No –DBA 0707119)

February 11,2008

Diploma In Business Administration

Cyberlynx International College


1. Overview 1-2

2. Other operaters 3

3.0 Malaysian mobile market 4

3.1 Digi 4-5

3.2 Political environment 5

3.3 Economy 5

3.4 Telecom policy environment 6

References 7


The Malaysian government has been engaged in industrial policy for telecom and information technology. Network services were liberalized in 1990s under the nationalistic and economic policies of government. Government heavily restricted the foreign investment to protect the state control network in telecom sector. Late Asian financial crises of 1997-1998 ushered a new era of market transformation.

Government engineered a dramatic consolidation on telecom service market but simultaneously introduced an institutional framework for progressive policy reforms. The creation of independent policy and regulatory body, the Malaysian communication and multimedia commission, has brought a new dimension of transparency and public accountability to telecom technology sector.

Large state-funded infrastructure and training projects are a trade mark of government new economic policy. The success of this infrastructure development effort has thus far been discrete: program aimed at increasing ICT usage and promoting an E-society have yet ignite widespread adopted of broadband service application through out Malaysian society. Here are some key factors that indicating Malaysian key indicators in economic point of view.

The Malaysian government seeks to the make the leap to knowledge based economy and achieved developed country status by year 2020.At independence Malaysian inherited an economy dominated by rubber and tin. The economy sustained growth averaging 8 percent every year since 1980s. Malaysia is one of world largest exporter of semiconductor devices, electronic and electrical goods.

Malaysia’s strategy for telecom sector, mirroring that of overall industrial planning, has been guided by vision 2020. The multimedia super corridor that stretches south of Kuala Lumpur to the new KL international airport the creation of cyberjaya as the center of MSC, and the Putrajaya new seat of central Government offices are the example of large multi sector initiative designed to attract the international IT and multimedia companies to Malaysia and improved local capabilities.

In 2002 and 2003, a sharp swap arranged between TM Cellular, telecom renamed mobile cellular business, and celcom effectively merging the two. Following the financial crises and competitive woes of the large field of players, the government aggressively encouraged rationalized of sector. Three service provider emerged, a structure that remains in place today. Telecom acquired time. Dotcom and celcom, maxis acquire Time Cell, Telenor increased its minority position in Digi to effective control. Each consolidated operator has its own trunk network and international gateway.

Other Operators:

Although Digi has right to provide land line service that haven’t do so. Celcom covers 97% of land line connection. There are three major player in this telecom sectors, they have license and mandated by ministry of rebalancing the tariff.

Telecom Malaysian is the bigger player for land line number and has license for both mobile and fix but Digi still not launching land line service for is customer it deals mainly with prepaid connection. Other operator Maxis is dealing with post paid and land line also but mainly with Post paid and prepaid.

Malaysian Mobile Market:

Malaysia is the south East Asia’s third most developed mobile market, with 13.1 million mobile user by the end of year 2004, accounting to 52% of total population of Malaysia. Maxis is the mobile leader with 41% share, followed by Celcom with 38%, and Digi with about 21% of the market.


Digi has 99% prepaid connection almost all Digi connections are prepaid because their target market is teen agar and students they often prefer to have prepaid connection. Digi is smallest one among the major operators and controlled by Telenor and company from Norway, Digi is holding its own in the face of two major rivals it is overall shares are increasing, in the end of 2004 it was 21.5% with 0.5 increment. Telenor (Norway) is providing finance and technical stability. Digi is the smallest of three remaining mobile cellular companies has benefited sustain growth in the market demand for cell phone in Malaysia, and from being granted spectrum in the 900 MHz band wave to complement of its 1800 MHz frequency assignment.

Digi targeted the lower end of the market with customer’s friendly service, such as being first launch MMS services and leading the way to simplify the number of calling zone in Peninsular Malaysia to two and in eastern Malaysian to four. Digi relies heavily on dealership network with 99% of its users being prepaid. Placing the company under the pressure of lower prices and at the same time maintained quality and innovative services.

To achieve this Digi is placing a lot of emphasis on backend system, efficient building systems, CRM system, and IN software. Digi is using EDGE technology as migration part of 3 G. Digi which has international gateway, is trying to build a traffic from partnership with application service providers at home and abroad, including prepaid IDD cards with running tones download features.

Political environment:

Malaysia is a political strong country lead by King, whose selection criteria is predetermined, but it controlled by parliamentary system, Prime Minister is the head of state, and all other decision made by Cabinet, in Malaysia since its independence UMNO is ruling party so continual of policies is here.


The government has taken an active role in guiding the nation’s economic development. Malaysia new economic policy first established in 1971. In April 2001 the government released its new policy “National Vision Policy”, which seeks to refocus the economy toward higher technology. Malaysian population is 25.5 million (2004) continuous with the growth 1.7% per year. Malaysia comprises number of ethnic groups of people dominated Malay people, about a quarter of population are Chinese and 7% Indian.

Telecom Policy Environment:

Malaysia’s strategy for the telecom sector, mirroring the overall industrial planning, has been guided by vision 2020, the national goal of achieving developed nation country by 2020. MCMC has begun a review of national broadband policy, according to the ministry of energy; the goal is to ensure the approximately 1.3 million broad band connections. Policy focus on providing better service on cheap rates, this would empower the telecom sector in Malaysia.


Digi Annual Report 2006 time: 9.45 date: 1feb 08 time: 9.45 date: 1feb 08 time: 9.45 date: 1feb 08


Search Here

Search Here