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The YTL Corporation Berhad was founded by Tan Sri Dato Seri Yeoh Tiong Lay in 1955 which is leading integrated infrastructure conglomerates in Malaysia. In year 1988, Tan Sri Dato’ Seri (Dr) Francis Yeoh Sock Ping, the oldest son of the founder take over the businesses and became the Managing Director of YTL Corperation Berhad. The YTL Group grew from a sole listed business in 1985 to a force comprise five listed companies under the Tan Sri Dato’ Seri (Dr) Francis Yeoh Sock Ping stewardship. YTL Corporation Berhad had became one of the largest companies listed on Bursa Malaysia and has a combined Market Capitalisation around RM 36 billion and over RM 45 billion for the total assets with its four listed entities. In year 1985, the company had their first listed in the Tokyo Stock Exchange and had their secondary listing since 1996 on the Tokyo Stock Exchange. The YTL Company succeed to become the first Asian non-Japanese company that listed on the Tokyo Stock Exchange.
YTL Power International, a subsidiary of YTL Corporation Berhad that is Malaysia based leading integrated infrastructure developer with the global investments in utilities, construction, cement manufacturing, hotel management and development, property development and investment, as well as information technology serving over three continents with over 12million customers. The core businesses of YTL Power International are retail and transmission, power generation and wastewater services and water supply. It operates the businesses in Malaysia, Singapore, Indonesia, Australia and United Kingdom.
YTL Communications Sdn. Bhd. is subsidiary and the communication utility of the YTL Power International, a utility group that active across key segments of the utility sector worldwide (YTL Communications Sdn Bhd, 2011). The YTL Communications Sdn Bhd is led by the CEO Wing K. Lee and it is serves as the telecommunications division within the wider part YTL Corporation Berhad and headquartered in Malaysia. The aim of the YTL Communications Sdn Bhd is to provide affordable, world-class services that may improve the lives of people across Malaysia by utilising the nationwide 4G wireless broadband network.
Yes 4G had been launched by YTL on the 20th December 2010 as a brand under the YTL Communications Sdn Bhd which forays into the telecommunications industry in Malaysia. Yes 4G is the world’s first fully converged 4G Mobile Internet service with voice and it is launched in the Malaysia. Yes 4G claims that the speeds of the Yes 4G networks is 3 to 5 times faster and better than current 3G networks and the prefix will be use for this voice services is 018. The 4G Yes networks is using prepaid utility model for billing which it requires their subscribers to top up their account with credits before it can be used. The Yes 4G products that available are Eclipse 4G Smartphone, Huddle Mobile Hotspot, Huddle XS Mobile Hotspot, Go 4G Dongle, Zoom 4G Gateway and Buzz 4G Cloud Phone. At launch, the coverage area of Yes 4G spans 65% of Peninsular Malaysia including the main cities, highways, towns and secondary roads on the east coast.
2.0 The Environment
Malaysia is striving toward the Government’s New Economic Model and our aspirations are to transform Malaysia into a high-income economy nation by 2015, it made ubiquitous and quality broadband become one of the key engines of growth for Malaysia due to the National Economic Model and the National Broadband initiative. Nowadays, internet network had become a critical and important tool for communication between the individuals in spite of distance or barriers and share or gain knowledge among the individuals. It started to turn out to be a necessity instead of addition want for peoples. The Government recently announced that the nation has successfully exceeded its household broadband penetration target of 50% this year and there is a significantly increased in the numbers of household broadband penetration for the past and for the future.
In this day and age, uses of internet network among the students are common and become a necessity, internet network is a must for students to complete their works and research study. It is a trend that students rely on the internet to complete their works or research study. Moreover, it is a medium or channel for the students to communicate with their peers or professors. How can we expect our students to be among the best in the world if they do not have access to the vast resources in the internet?
3.0 The Industry
The 4G Innovation Network is a complete bionetwork. Developers can build applications and solutions that will display the improvements of the 4G technology. The 4G Innovation Network in Malaysia will link all the developers globally through a twinning programme with Clearwire which including some of the world’s most creative minds in Silicon Valley. A state-of-the-art complex will open at the 300-acre Sentul Park during early of 2010. A network operations centre (NOC) and data centre will be co-located and host a test bed for the 4G Innovation Network.
There are a slew of competitors of Yes YTL Communications Sdn. Bhd. First is Telekom Malaysia Berhad (TM). TM is Malaysia’s broadband champion and prominent incorporated information and communications group. TM offers a widespread range of communication services and solutions in fixed-line, data, and broadband. As a market leader in a highly competitive environment, TM is driven by stakeholder value creation. TM placed prominence on delivering an improved customer experience through continuous customer service quality improvements and innovations. At the same time, TM also focusing on increased operational efficiency and productivity.
TM is well positioned to boost Malaysia as a regional Internet hub and digital access for South-East Asia by leveraging on the network infrastructure, collective expertise, and extensive global connectivity. TM remains dedicated in its alteration into a new generation communications provider to deliver a superior and integrated digital lifestyle to all Malaysians. TM also opening up possibilities towards shared vision of enriching the nation into a high-income economy through connection, communication and collaboration.
Next competitor of Yes YTL Communication Sdn. Bhd. would be U Mobile Sdn Bhd, which is a 3G service provider in Malaysia. It is recognized for its quality of voice and data services combined with unique best-value propositions. U Mobile using rivalry of existing competitor strategy to compete in the market. The company has its own-built 3G network infrastructure in core cities within the Central, Southern, and Northern regions of Peninsular Malaysia which also covering the urban areas of Klang Valley, Negeri Sembilan, Penang, Perak, and Johor. Its network supports 42 Mbps high-speed mobile broadband which is LTE enabled. To develop 3G coverage nationwide for U Mobile customers to enjoy data, voice and SMS, U Mobile has also boarded on a 3G RAN sharing agreement with Maxis. Its unique network strategy provides the company with significant savings in principal expenditure.
Never the less, Maxis is also one of the talent rivals of Yes YTL Communication Sdn Bhd. Maxis is a Malaysia’s biggest integrated communications service provider. They keep their customer relationships close. Both businesses and individuals realised that the pervasive reach of their services has enabled a rich customer experience. Maxis take the idea of being up close and personal to a whole new level. Maxis assurance that the technology and innovation high ground for mobile and messaging, fixed voice, mobile internet, wired and wireless broadband allowed them almost 14 million subscribers to hold 24/7 lifestyles. This means easy interfaces between education and entertainment, work and leisure, and most prominently is business-to business communications and social interaction.
Last but not least, Digi is also competitor to Yes YTL Communication Sdn. Bhd. DiGi is a top mobile communications company providing a comprehensive range of convenient, affordable, and user friendly wireless services to simplify and enrich the lives of its customers. It created value for their customers by selecting the most suitable cutting edge technology so that customers benefit from products and services that give them convenience, choice and control.
4.0 Marketing Strategies
There are tons of broadband providers in Malaysia. Those who offer fast broadband speeds are generally fixed line then the wireless broadband. Traditionally, wireless broadband are pretty much provided by mobile service operators in Malaysia, if customer want mobility and speed together, Yes 4G has come into play. Yes 4G is mainly targeting for students as they are more innovative and easy to adopt for new technology. Yes Communication has uncover the needs of students who need larger data transfer for download purpose. Undoubtedly, the first thing that comes to a typical Malaysian students mind is download, download and download.
Yes has provided multiple choice of devices for its customers where customer can get a home base modem (Zoom), USB modem (go), WiMax mobile phone (buzz), portable WiFi (huddle) and even software phone (Yes Life). Yes is not just about the internet, users can make voice calls, SMS and video calls on any device with their 018 number. Other than that, users can use YesLife, a simple and free app of Yes, to turn their internet-enable devices into a phone immediately and conveniently. Customers can get more savings and rewards when sign up for Yes 4G attractive plan with a free device which include prepaid and postpaid plans. For prepaid plan, customer can enjoy a rebate up to 30 per cent every month with a minimum usage of RM30 per month. Each SMS is charge for only 9 sen and pay as you use. However, customer can also sign up for postpaid plan which requires RM48 per month to enjoy the unlimited data and lowest voice and SMS rates. Two newly introduce program have been included in this plan which are the SuperBooster and Postpaid Plan Upgrade to generate customer preferences.
Yes Communication has used value pricing strategy to attract targeted customers. Yes has offers customer with two types of 30-days value pack to be added in their Yes plan for even more savings. There are RM68 value pack for 150 free SMS, 150 minute voice calls and 3,500MB data or RM150 value pack for 250 SMS, 250 minute voice calls and 10,000MB data. Although Yes charge its customer slightly higher than competitors, however, customers can enjoy more benefits with just one Yes plan and one 018 number, they can surf, call and SMS on any devices such as phone, laptop, computer and tablet all at the same time. Furthermore, customer can enjoy a monthly rebate up to 30 per cent with no expire date. Once customer purchased a Valuepack, they no longer have to maintain the minimum monthly usage of RM30. Bundle pricing strategy has also been used for its broadband product to attract price sensitive students. Students can get a bundle price of RM148 when buy two Yes broadband which normally cost RM99 for each. It is also worth for customer to pay higher for better service as Yes has stated itself as the fastest, widest and most reliable 4G mobile internet network in Malaysia that allowing user to use its Yes ID to connect with friends and family across multiple devices.
Promotion and Advertising
Under Education Partner Program (EPP), YTL communications has provides converged 4G mobile internet services for Malaysian undergraduates that been chosen with free 300MB data transfer credit which worth for RM9 monthly. This low latency, high bandwidth 4G network will enable students to access internet everywhere within the campus. Executive chairman of YTL communications, Tan Sri Dato’ (Dr) Francis Yeoh said that “The EPP allows our students to do things differently and carry out a wave of positive change in a YTL Comms 4G enabled education environment that will ultimately contribute to the larger success of the nation.” Universities that participating in the EPP currently include Universiti Sains Malaysia (USM), Universiti Teknologi Malaysia (UTM), Universiti Malaya (UM), Universiti Putra Malaysia (UPM), University Tunku Abdul Rahman (UTAR) and Tunku Abdul Rahman College (KTAR). With this free 300MB data transfer, students can visit 400 static HTML webpages, send 2000 emails (with minor attachments) and listen to online radio for 90 minute with no contracts or minimum usage as all is in one plan. Not only that, Yes 4G has organize lucky draw and free RM28 value pack for the new buyer for promotion period to gain their first trial.
In year 2010, YTL Communications or any of its marketing arms cooperated with LucasFilm Ltd., which owns the rights to Star Wars and its bevy of characters, to utilize the Stormtroopers characters to promote Yes 4G. While walking along the Bukit Bintang areas which located in Kuala Lumpur, customers may have bumped into a group of Stormtroopers, the faceless grunts made popular by the Star Wars original trilogy, patrolling the said area giving out flyers promoting Yes 4G. These Stormtroopers with a big “Yes” stamped on their armor, is a part of a marketing campaign undertaken by the operator of 4G to generate great interest for the brand.
Yes Communications is using direct market channel to reach its customers. Customer can purchase Yes 4G products through any outlet that located nearly to them. There are four types of retail outlets which include Yes Stores, Yes Exclusive Retail Partners, Yes Retail Partners and EPP Partner University. The EPP Partner University outlet is purposely design for students, locating in the participated university in order to gain access to the students. After sales service and mantainence service that provided in the retail outlet has helps Yes 4G to enhance the relationship with customers. Not only that, Yes 4G has also used this opportunity to collect students’ feedback and data for its marketing purpose. Furthermore, Yes 4G believe that students can be served as a powerful tool to generate word-of-mouth and the promotion packages that offer can create high demand for its products.
5.0 The Problems and Core Elements
As cited in Avanti Kumar articles (2011), according to Rojas (2011) research director of communications, Asia Pacific, IDC has mentioned that Yes 4G network and services is one of the most advanced in the world and is perfectly designed in order to meet the explosion of limit in mobile data usage. Further, Yes 4G network also comprised unique features and services which is rarely seen anywhere else in the world. However, is that Yes 4G able to satisfy their customers? This will be further discussing in the chapter.
Yes 4G consist of a lot of problems. Services, pricing and rebate, as well as devices serve as the primary problem faced by the company. When talk about services, Yes 4g said that it is 3 to 5 times faster than 3G. According to Cellular Standards for the Third Generation, 3G rate supposed to have a minimum data rate of 2Mbit/s for the stationary or walking users, and 384kbit/s for a moving vehicle. Therefore, its means Yes 4G has a minimum data rate of 10 mbps. However, the actually range was only from 3mbps to 10 mbps depending on the signal coverage (According to speedtest.net). Is true that it is still consider the fastest in Kampar area event in Malaysia, but the objective here is the trustworthiness of the users. After conduct a qualitative research with a group of Yes 4G users in Kampar, we realize that most of them sign the package because of the minimum data rate of 10mbps. Therefore, the users have the feeling of cheated and may result in negative worth of mouth.
Yes 4G also facing problems in the coverage area, According to the company itself, their service is now covering about 70% of the population in Malaysia. It has a very wide coverage of area. However, according to users stay in Kampar, the speed still sometimes very slow and the problems even obvious when they try to surf the internet in-house. The line was unstable even if the whole Kampar is under the coverage area. Worse, some of them not even success to surf internet in the house once.
The unstable may also due to the quality of the physical device such as the Dongle and Huddle. They are some user complaint about the device because it is unable to receive any signal, no matter where ever they go. The result remains the same after Yes Company has change a brand new one to them and it spoiled again in 2 weeks. The similar problems happen to Dongle also. Honestly, Dongle’s capability to receive signal is weak unless it place very near to the transmitter. In general, there are only few places that near to the transmitter can fully utilize the service but not the majority.
Yes 4G is different with streamyx, their selling idea was pay only for what you use on top of charging with the lowest rates, just like water and electricity. It is very interesting to most of the light internet user because they may pay lesser compare to streamyx. However, proportion of this group of people was getting lesser and lesser due to the technology savvy among people, especially student in an age group of 14-28. Undeniable, students stay in Kampar will be the heavy internet user. Majority of students always think that the cheaper the better as long as it able to meet my expectation. Therefore, Yes 4G consider a little bit expensive to them even though there is a student’s package, 3sen per 1mb. For example, let’s take standard 700mb usage for downloading or streaming content of a size of CD, it will cost RM21 which is consider very expensive.
Users also mentioned about the terms and condition of Yes 4G. Unlike P1WIMAX, after run out of credit, it does still allow customer to surf the internet for a few days in slower manner. In Yes 4G, once the credit finish, customer can’t surf to any website until they reload the money. Besides, RM30 must be spent or reduced for Yes 4G each month and customer must have a minimum of RM30 in the balance before they can use the services.
6.0 Suggested alternate courses of action and its implementation
YTL is successful to provide high-speed Internet to major parts of the country. As a result, this created an enormous contribution to the Government’s plans which aims to transform Malaysia into a high-income nation by 2015. Currently, YTL’s 4G coverage is available to more than 70% of Malaysians. One of the future moving path, “increase its coverage to 80% of the, country’s population” this is what YTL communications aims in future. In regards to this, the company is going to spend around RM2.5bil to achieve this. In addition, YES is also aiming to increase its postpaid subscriber to half a million by the end of 2012. This is aligned with the company objective as this means more and more people can now enjoy broadband services. Eventually, this will assist the company to move towards a large base of applications and online services.
On the other hand, challenge in a business is unavoidable. One of the key challenges of YES is in the planning of the Yes network. The company wishes to ensure that mobile broadband service would have enough coverage and capacity even along the highways. This represents a tough task for the company as the building of stations would involve a huge capital. What’s more? The challenge for YTL Communications then will be how to continue to expand and reach new customers as there are challenging in building base stations in different areas. Therefore, the company needs to make sure that it has the right mix, and the ability to deliver the service that the customers demand for.
In this competitive industry, the existence of company which aims for the same purpose is a common phenomenon. Despite of the effort YES in enhancing for its future, the competitor would not be left behind. In this sense, Maxis and RED tone have entered into an infrastructure and spectrum sharing agreement that will enable both companies to speed up the deployment of their 4G LTE mobile networks. The deployment 4G LTE network will ensure the delivery of the fastest mobile data connectivity. This creates a challenge for YES as the competitor is competing from the speed aspect which is more satisfying than the wider network coverage of YES.
The creation of YES is compelling. It has increased its coverage to 1,700 cell sites including full mobile Internet coverage on the Malaysia’s North-South Expressway that runs from the Singapore border until the Thai border. This is the first in Malaysian history. However, in comparing with other company such as Digi and Maxis, Yes has faltered in virtually every aspect. Yes claimed that it wanted to deliver innovation, performance and value to satisfy the customer.
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