TM will overcome challenges given its experience, infrastructure
KUALA LUMPUR: Despite the stiff challenges currently being faced by Telekom Malaysia Bhd (TM), the general perception remains that the company will be able to ride the turbulent times and retain its top spot as the leading telecommunication company in the country given its vast infrastructure experience.
Its edge in the industry, since its establishment in 1946, must, however, be strengthened and supported by fresh injection of strategies, as a price war is expected next year, in order for TM to remain competitive, says Universiti Teknologi Malaysia Geostrategist, Professor Dr Azmi Hassan.
Saying that if TM was slow in taking proactive measures, it would be left behind by its closest competitors.
“Before the entry of other telecommunication companies into the broadband industry, TM was the obvious choice for consumers as there was no other alternative.
“That is why TM must now offer attractive packages compared with their competitors as it is the oldest telecommunication company with extensive experience. It should ride on these two factors to hold on to its position,” he told Bernama today.
As is the case today, TM, which has been viewed as ‘resting on its laurels’, has to compete with the likes of Maxis Bhd, TIME dotCom Bhd, and Celcom Axiata Bhd which have captured TM’s existing customers via their attractive and affordable broadband packages.
“Price adjustments by other telecommunication companies, following the announcement of the Mandatory Standard on Access Pricing (MSAP) by the Ministry of Communications and Multimedia in June, caught TM off-guard. TM is facing stiff competition today as it has invested heavily on infrastructure .
“But, I believe in the long-run, TM will have the edge over others as it will be able to offer broadband packages which are even more attractive than what is available today. It may take some time to reduce the impact of investment cost but nevertheless, TM will get there,” Dr Azmi said.
He also believed the appointment of fresh candidates to TM’s top management would not only inject a breadth of fresh air but also make the organisation more relevant.
TM is currently headed by Imri Mokhtar who is replacing the former acting group chief executive officer Datuk Bazlan Osman who resigned in November.
Meanwhile, Research director IoT & Telco for IDC Market Research Asia Pacific, Randy Roberts said TM needed to generate completely new revenue streams just to keep revenue at existing levels in the next few years.
However, he said it might take a long time to generate the new revenue growth.
“The company has a ‘burning platform’ to focus it’s strategy and efforts to create new services and revenue as a result of the impact of the MSAP.
“The challenges for TM include; a technical transformation of the network to technologies such as Network Function Virtualisation, Software Define Network and cloud, developing new digital skill sets in its workforce and changing a culture that has thought and acted as a monopoly for many years,” he said.
Regardless, Roberts said “the light at the end of the tunnel is visible” in the form of developing new services based on new technologies such as the the Internet of Things, data analytics and 5G, which would provide an opportunity to cut operating costs while offering market- leading services.
“Execution of these new digital services will be the key for TM in the next few years,” he added. — Bernama