Charges on mobile voice services are regulated However telecommunication

Charges on mobile voice services are regulated

This preview shows page 8 - 10 out of 10 pages.

Charges on mobile voice services are regulated. However telecommunicationproviders are free to design the services packages block. In postpaid area, Celcom has the lowest commitment fees but Digi and Maxis have the lowest voice calls and short messages charge rate. Maxis and Digi should run researches to analyse customers’ usage and payment patterns to better segregate the charging blocks. Then Maxis and Digi would be able to offer packages that deemed to be reasonable and suit most customers’ needs. Celcom has the lowest monthly commitment fee whereas Digi has the cheapest charge rate. Although Maxis is not always the cheapest but
Background image
consumers still choose Maxis for its telecommunication service as well as after sales services. Corporate customers always tend to choose Maxis because the image Maxis portrait.SummaryMaxis achieve the first ranking among the three listed telecommunication companies inMalaysia, followed by Celcom and Digi in terms of its profitability ratio. This study issignificant because it helps to evaluate, compare and rank the financial performance of thetelecommunication companies in Malaysia by considering the significant profitability ratios withTOPSIS model. Besides that, the best ideal and worst ideal solutions for each profitability ratiocan serve as the benchmark to the telecommunication companies for further improvement.The three Celcom, Digi and Maxis spend anything year on upgrades and that trend will continue.Soon enough, they will have to think of migrating to 5G as demand increases further and alsoimprove on indoor coverage. To focus on improving net profit margins by increasing monthlyAverage Revenue per User (ARPU) and reducing 3rdparty mobile traffic charges efficiency.Digi’s low profitability ratio shows that growth of sales has fallen relative to total assets. Thismay lead to perception that DiGi has reduced its efficiency in generating income with respect toits investments. In other words, DiGi has not fully optimized its resources (newproperty, plant,equipment and intangible assets purchased annually) for generating sales. The under-utilizationof investments may also reflect poor operation management. DiGi may want to furtherinvestigate this inefficiency issue to generate more profits in future. In short, it is believed thatmaxis and Celcom would be better investment with its large coverage 2G, 3G and 4G LTEservice, brand name, lower operating expenses, larger net incomes, higher sales volumes andbetter growth potential in the long run.ReferencesReferences
Background image
Essays, UK. (November 2018). Analysis of major players in malaysian telecommunicationindustry. Retrieved from -in-malaysian-telecommunication-industry-marketing-essay.php?vref=1
Background image

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture