Overview of Telecommunication Industry Essay Sample

August 12, 2017 Engineering

The market for nomadic services in Malaysia is extremely competitory. Prior to the liberalization of the telecommunications industry in Malaysia. Telekom Malaysia had a practical monopoly on telecommunications services in Malaysia. In recent old ages. the Government has taken stairss to present managed competition in the industry by presenting assorted telecommunications licenses. To day of the month. the Government has awarded eight nomadic licenses to operators in Malaysia. Maxis’ rivals in this section are Celcom. Telekom Malaysia ( through its TMTOUCH. Mobifon 018 and ATUR011 trade names ) . DiGi and TIME. Maxis believes that the chief competitory factors in the nomadic services market are web coverage. service quality. pricing and trade name. The two largest participants in Malaysia’s nomadic market. Maxis and Celcom. are considered by many clients to their more extended web coverage and higher service quality. In add-on. the debut of equal entree and the licensing of by-pass operators have farther increased competition in the Malayan telecommunications industry.

Michael Porter five forces are used to analyse the attraction of the telecommunication industry.

Michael Porter Five Forces

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Entry Barrier

a ) Base station

Given the rapid deployment of base station sites required to back up web growing. Maxis has a important figure of base Stationss which have been installed. Meanwhile they are besides some pending entry to wait blessing from the local governments. This is the common pattern among nomadic operators in Malaysia given the long lead clip by and large required for the blessings. The deficiency of blessings and the long waiting clip had resulted a high entry barrier for new company.

B ) Technology

The types of engineerings employed by Maxis include the GSM criterion for its nomadic web. operating in the 900MHz frequence set. Maxis’ nomadic and fixed webs use a mix of Synchronous Digital Hierarchy and Plesiochronous Digital Hierarchy microwave links for most of its transmittal systems. For its nucleus information web. Maxis deploys Internet Protocol based engineering usage of DSL engineering. The advanced engineering which required in the telecommunication industry incurred high capital investing and besides needed professional cognition in relevant sector to success in the industry. It was non easy transcript or imitate by rival.

degree Celsius ) Regulatory Policies

Telecommunication runing landscape is mostly shaped by the country’s regulative environment. Often. the regulative policies. the figure and type of licenses awarded by the Government are position as the entry barrier for the development of the industry. The beings of assorted regulative such as interconnectedness fees between operators. name duties and the grade of foreign engagement. Meanwhile. it is non so easy for a company to use for a new license to run lawfully in this industry. The procedure is complex and high cost.

Dickering Power of Supplier

By and large. the telecommunications industry in Malaysia is dependent on imports for the bulk of its web constituents as most of the web equipment can non be sourced locally. Maxis’ webs utilise standard equipment which is available from a limited figure of providers. Most of the GSM equipment for Maxis’ nomadic web operations is purchased from Motorola. Siemens and Trisilco Folec. and Maxis maintains close working relationships with its cardinal web equipment providers.

Maxis has been buying from these providers for about six old ages. Maxis besides purchases certain web constituents from assorted other cardinal providers. including Nortel and Cisco. Maxis has been covering with well the same group of providers since beginning of operations in 1995. Bad intelligence was. Siemens is now a sub-contractor to Motorola for web exchanging systems. Maxis left merely one chief supplier- Trilsilco Folec. The dickering power of their provider becomes strong. Furthermore. their provider is from abroad. In future. Maxis believes that comparable equipment and support is available from other established providers.

Dickering Power of Buyer

Information engineering addition the dickering power of purchaser. high available of information make it easier for purchaser to measure beginnings of stuffs about telecommunication. There are many options merchandise such as facsimile. electronic mail. and cyberspace which enhance the bargaining power of purchaser to the nomadic service supplier. Meanwhile. high degree of competition between the major telecommunication companies that exists in current market leads to moo exchanging cos for the purchaser to alter their nomadic service supplier. Customers are high monetary value sensitiveness. easy to exchange trade name.

Menace of Substitutes

There are many replacements for nomadic services such as a very traditional way- missive. fixed place line telephone. facsimile. and electronic mail. From the twelvemonth of 2000 onwards. broadband Internet services. which enable faster and always-on connexion to the worldwide web. offer more promising growing potency. In add-on. the force per unit area on the really low cost to utilize the phone naming through cyberspace or communicate through on-line courier had threated the nomadic service industry.

The attraction of cyberspace services doing it more low-cost to the multitudes.

Rivalry among Rivals

Telecommunication industry in Malaysia is oligopoly construction presents. Maxis have two chief rivals. they are Celcom. Digi. Maxis lead this telecommunication industry. They are mostly compete on differentiate their merchandise and services on how to better their characteristics and implementing invention. Furthermore. company in this industry will surely vie on the call rates. box monetary value and so on. They try to derive competitory advantage through low call rate and proce. Each of them invests a batch on advertisement to advance their merchandise. There is high issue barriers in this industry due to the high investing budget and responsible to client will do campanies strive to last in the industry. Technology advanced leads fast industry growing and opporturnities. increase the competition among companies.


hypertext transfer protocol: //www. maixs. com. my

hypertext transfer protocol: //www. celcom. com. my


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