Telcos to strengthen core, new growth areas


PETALING JAYA: Malaysian telecommunication companies (telcos) will be focusing on strengthening their core and new growth areas, as they navigate the challenges ahead.

Maxis Bhd chairman Tan Sri Mokhzani Mahathir said he is cognisant of the challenges and potential upside that may arise this year. In spite of this, he added that the group is looking forward to unlocking beneficial opportunities that come Maxis’ way.

“We will continue to prioritise our focus on our core competencies in mobile, fibre and enterprise. Customer experience is at the heart of our operations and we are committed to understanding and adapting to our customers’ evolving needs.

“Our initiatives to drive operational efficiency and strict cost discipline will ensure sustainable growth and value creation for our shareholders,” he said in the company’s annual report.

Meanwhile, CelcomDigi Bhd chief executive officer Datuk Idham Nawawi said the company will strengthen its core and new growth areas this year.

“We will drive new revenue growth in adjacent enterprise connectivity and digital information, communications and technology services and become a significant player in the home and fibre segment.

“We will selectively invest in new technologies and digital platforms to build a sustainable strategic competitive advantage and new revenue opportunities,” he said in CelcomDigi’s annual report.

Additionally, Idham said the company will be accelerating integration activities and institutionalising operational excellence to realise RM8bil synergies in net present value.

“This will enable us to further invest in service quality and overall brand and customer experience via digitalisation and innovation.”

Following a solid 2023, CelcomDigi chairman Tengku Datuk Sri Azmil Zahruddin Raja Abdul Aziz said the group has renewed belief that its purpose, strategy and execution abilities position it well under existing competitive conditions.

“The board and I are confident we have the right blend of skills, experience and backgrounds to oversee this business and support the management team in implementing our strategy.”

Meanwhile, Maxis chief executive officer Goh Seow Eng said he is confident that the group will strengthen its position as Malaysia’s leading integrated telco.

“We will continue to develop the deep insights required to understand our customers and their needs and to focus on simplicity to provide them with the easiest and best experience at any of our touch points,” he said.

Goh emphasised that Maxis’ long-term goal remains firmly set on sustainable and predictable business growth.

“Despite the intensifying competition and ever-changing regulatory landscape, we are confident that our agility and fast response allow us to seize opportunities that may arise from these developments,” he said.

Meanwhile, RHB Investment Bank in a recent report said it expects telcos to focus on affordable connectivity.

“We note that competition within the prepaid segment has picked up recently.

“This underscores the commitment by mobile network operators to ensure affordable connectivity on the back of the inflationary environment and the focus on wallet share.”

The research house said it expects industry mobile service revenue (MSR) growth to remain subdued in the second half of 2024, with monetisation of 5G impeded by large 4G data quotas and the dearth of retail use cases.

“Overall, industry MSR is projected to grow by 1% to 3% in 2024, driven by prepaid-to-postpaid conversion and fixed-mobile bundled services.”

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Maxis , CelcomDigi , 5G , mobile

   

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