Going boldly with Enterprise

Albern: AI and other forms of technology will replace certain functions at CelcomDigi just like they do elsewhere.

THE glass ceiling-to-floor conference room window on the top floor of CelcomDigi Tower offers a sprawling, beautiful view of Petaling Jaya, but the telecommunication titan’s new chief executive (CEO) has his eyes firmly set on his PowerPoint presentation on the wall ahead.

Despite being “only” four months into his new role, having been appointed on Feb 10 this year, Albern Murty is no stranger to helming a major telco, as he was the CEO of Digi.com Bhd before its merger with Celcom Bhd at the end of 2022.

Sitting with StarBiz 7 for his first exclusive media interview as CelcomDigi’s CEO, he looks typically relaxed but focused on his vision for the company, especially for the immediate- and medium-term, as well as the challenges he expects the group to overcome.

Albern reflects on how the telecommunications industry in Malaysia has evolved over the past decade, with his very relatable experience as head of Digi being a reference point.

Key strategic pillars

With the successful completion of major integration phases between 2023 and 2025 – where Albern says CelcomDigi has realised synergies, improved operational efficiency, productivity, and customer experience, while maintaining market leadership and profitability – the company now shifts focus to sustainable growth, efficiency, and long-term value creation starting in 2026.

He says the “painful” post-merger integration processes, as well as the group’s investment into analytics especially about consumer behaviour globally, are all geared towards keeping its customers loyal to CelcomDigi by improving value, where consumers can see the group’s services to “beyond just a SIM card in a phone”.

“We are aiming to become Malaysia’s telco-tech leader – the top trusted brand built on customer excellence, delivering the widest, fastest, and most secure network while expanding beyond connectivity into a connected digital ecosystem.

“We look to further strengthen customer lifetime value, build a high-performing future-ready workforce, and drive responsible, sustainable business growth,” he points out.

With this focus, Albern says that it is imperative for CelcomDigi to become the most efficient telecommunications operator while delivering revenue effectively to shareholders and keeping up investments in processes to improve its businesses.

The strategic pillars moving forward, he says, would be to strengthen market leadership and accelerate growth; driving operational excellence; enhancing customer experience; and investing for the future.

“It is undeniable that the market landscape has changed significantly from eight or 10 years ago, and not only in terms of there being much higher competition today.

“We see that customers’ demands on connectivity have risen tremendously,” says Albern about the company’s Consumer business.

In the past, as devices were becoming more affordable, he says the focus was almost solely on growing the number of subscribers; but with customers needing to be connected 24/7 these days, merely paying attention to increasing subscriptions no longer cuts it.

In addition, regulatory changes have also contributed to the evolution of the telco sector.

Albern elaborates: “CelcomDigi’s huge customer base of 20 million subscribers on our consumer segment, equating to approximately 55% of the telco market share, is our huge advantage.

“As such, the name of the game has changed to being about efficiency, and how we can grow with our customers at all times.

“We aim to continue differentiating ourselves through superior customer experience, digital selling/serving capabilities, and elevated bundled offerings such as our CelcomDigi One Ultra,” he says.

It goes without saying that, while he does acknowledge the group’s effective operations as a whole so far, he does not yet see CelcomDigi as being the “most efficient” operator, although he feels the group is certainly on the right track.

“Once our merger integration processes are fully complete by 2027, we will be,” Albern projects confidently.

He says the group is leveraging its large retail footprint of transformed CelcomDigi Stores and CelcomDigi Express outlets for nationwide access.

In a nutshell, Albern says CelcomDigi is leveraging technology and innovation to enhance process automation and systems for better efficiency and service excellence.

The company is also streamlining operating models to reduce complexity and duplication for agility improvement, while fostering an operational excellence mindset across the organisation by driving efficiency and productivity.

Moving on to the Enterprise frontier

Meanwhile, Albern recognises the Enterprise segment as a “whole new ball game” for CelcomDigi, as the group looks to provide reliable, secure networks for small, medium and large enterprises.

“We will definitely be using artificial intelligence (AI) technology and strong ecosystem partnerships to drive innovation and faster go-to-market strategies, with the focus being on revenue growth, monetisation, deeper digital engagement, and brand leadership based on trust,” he reveals.

Specifically, Albern says CelcomDigi has started its Enterprise journey by looking at Internet of Things technology and private networks, before adding that the segment will enable the group to fully utilise its 5G capabilities and improve its brand relevance to its customers.

“The 5G will let us provide services for our Enterprise customers in various sectors such as oil and gas, ports, banking and many others.

“That said, we are careful to keep our operating models, as it is important to stay close to what we are proficient at, while allowing our partners to build competencies that we do not produce but will utilise,” says Albern.

Furthermore, he explains that CelcomDigi has from the outset focused on how it serves its customers and ensures consistent connectivity, while investing in AI services and information technology (IT) systems.

Redeploying workforce amid AI wave

Conceding that AI and other forms of technology would replace certain functions at CelcomDigi just like they do elsewhere, Albern nevertheless stresses that human employees can always be reskilled to better align with the company’s needs.

He also says that certain capacities can never be replaced by AI.

“For example, we have reduced our franchise retail stores from over 500 to over 300, which all utilise new automated systems.

“We can now automate their process, orders, deliveries, and they can keep track of their stockpile within minutes.

“We are empowering owners of franchises to run businesses more effectively,” Albern remarks.

Hence, he says there is less demand for sales teams and personnel for the group’s consumer business, but on the other hand, these teams can now be redeployed to CelcomDigi’s Enterprise segment, as long as they are similarly trained and skilled.

“Our distributors can also be moved to build the next layers of channels that we were previously never in.

“While we remove layers of manual processes, we redeploy resources to areas where we are rebuilding and expanding,” says Albern.

5G network updates

No discussion with the group these days though would be complete without mention of CelcomDigi’s latest updates on its equal co-ownership of 5G wholesale network operator Digital Nasional Bhd (DNB), with Albern recognising that while operations and structural situation at DNB is still fluid, it is making progress in the right direction.

He says DNB’s 5G network already covers 80% of populated areas in Malaysia, before commenting that the network operator has done well in deployment.

U Mobile Sdn Bhd exited DNB in May 2025 to focus on Malaysia’s second 5G network, with its stake redistributed, while the Minister of Finance Inc (MoF) had exercised a put option in December last year, divesting its 41.67% stake in March 2026.

Each of the three telcos, namely CelcomDigi, Maxis Bhd and YTL Power International Bhd, paid approximately RM327.9mil plus assumed portions of loans/advances, to assume MoF’s stake.

“We have all invested into DNB, so this is an opportunity to have an efficient 5G network, and we have to ensure the network is solid.

“But ultimately, we are three companies who have been network providers for the longest time,” says Albern.

Stressing that DNB has the spectrum and ability to deploy and run a highly efficient 5G network, he reiterates that the technology is an extremely crucial part of CelcomDigi’s evolution, especially for its Enterprise business.

“We are in a position to secure a 5G network, and ensure it is efficient, in line with our overall core agenda.

“It represents an opportunity to hit our missions, provided we continue to maintain our high quality of service, and keep being customer-oriented in terms of the solutions we provide.

“The base of our customers is the focus of our innovations,” says Albern.

Year-to-date stock and performance watch

Underpinned by CelcomDigi having posted an 8.9% year-on-year (y-o-y) growth in net profit to RM418mil for the first quarter ended March (1Q26), analysts are staying broadly positive on the group, citing stronger profitability prospects driven by cost savings as well as continued growth in its postpaid and fibre businesses.

Research houses said CelcomDigi’s integration programme remains on track, with the group maintaining its guidance for low single-digit growth in both service revenue and earnings before interest and tax this year.

The group is also targeting capital expenditure at 12% to 13% of revenue.

In the quarter ended March 31, 2026, CelcomDigi posted service revenue of RM2.7bil, up 1.6% y-o-y, supported by continued momentum in its postpaid, home fibre and wholesale segments.

The company’s postpaid business remained a key growth driver, with revenue rising more than 3% y-o-y, supported by subscriber additions and stable average revenue per user.

Home and fibre revenue surged more than 60%, aided by stronger customer uptake and the growing popularity of bundled service offerings.

Highlights by analysts also include CelcomDigi’s disclosure that it is targeting RM465mil in cumulative operating and cost-of-goods-sold savings in the current financial year through site optimisation, procurement efficiencies and network-related initiatives.

Around RM40mil of savings had already been achieved in the first quarter.

TA Research notes that the company has completed the major phases of its network integration and IT systems consolidation following the merger of Celcom and Digi.

The research house said the integration programme should continue to support operational efficiencies and margin improvements.

Investor attention remains focused on the financial impact of CelcomDigi’s 33.3% stake in DNB, with Hong Leong Investment Bank Research noting that equity-accounted losses from DNB are expected to begin affecting earnings from the second half of 2026, although CelcomDigi itself has indicated that the impact should be manageable and not material this year.

Despite the uncertainty surrounding DNB, analysts generally maintain positive recommendations on the stock, arguing that recent share price weakness has already priced in much of the risk.

They expect ongoing integration synergies, improving margins and attractive dividend yields of around 5% to support investor sentiment over the medium term.