Telcos imposing hidden charges on consumers to face action

Hurray! Now there is a respite to customers who feel they have been swindled by the telcos. For the contact details, people can contact MCMC here:

CONTACT

CONSUMER PROTECTION & COMPLAINTS BUREAU
Malaysia Communications & Multimedia Commission (MCMC)
MCMC Tower 1, Jalan Impact, Cyber 6, 63000 Cyberjaya Selangor Darul Ehsan, Malaysia

  • Complaint Hotline : 1800 – 188 – 030
  • Facsimile : 03 – 8688 1880
  • SMS :  SKMM ADUAN [Complaint Details] SMS to 15888
  • Whatsapp: 016 – 2206 262
  • Email: aduanskmm@cmc.gov.my
  • Website: http://www.skmm.gov.my

Telcos imposing hidden charges on consumers to face action

HULU TERENGGANU: The Malaysian Communications and Multimedia Commission (MCMC) will take action against any telecommunications company (telco) that imposes hidden charges for their services to consumers.

Deputy Communications and Multimedia Minister Jailani Johari said any consumer whose complaints to a telco go unanswered could report the matter to the MCMC.

“The MCMC has set up a special Consumer Complaints Bureau to handle this matter and if it is not resolved, the commission will take action against the relevant telco.

“But in this matter, the telco should review existing contracts…sometimes the print in the contracts is too small,” he said, adding that this resulted in many consumers not being bothered to read the terms and conditions but signing the contract anyway believing there was nothing important they should know.

http://www.freemalaysiatoday.com/category/nation/2017/03/19/telcos-imposing-hidden-charges-on-consumers-to-face-action/

 

Major shake up is imminent in Telekom Malaysia?

Received from the comment section a few days ago:

There will be a potential big movement in the telecoms market for the next few weeks. Major shake up is imminent. Telekom CEO is nearing the end of his contract and the jostling among the wannabes is getting frantic. The government is keen on bringing DS Shazalli to head TM, but there are a few smart alecks who are close friends to the Minister trying to outmaneuver and hijack the appointment. There are also people who are trying to position themselves to fill the many potential top management vacancies in TM when their own position are shaky and untenable. All are waiting for the right moment.

  1. One such fella is Razali Ismail from Celcom. He served as employee since 2007 and was the Head of Fraud & Facilities Service. In Celcom he is known as DS Shazalli’s pet, and known to be doing all the wrong things under the guise of having the protection by the latter.

  2. Also well known to be shouting at his staff and generally everyone else who tries to deter his ‘movement’, ie. trying to stop him from pursuing his pet projects. He also made a lot of fortune from the current Menara Celcom which is being constructed in PJ as we speak. So much so, there are a lot of design need to be ‘adjusted’ by the current management.

  3. He was investigated since last October 2016 for his wrong conduct. Axiata auditors even made a reference for his ‘tingkah laku’.

  4. He sought amnesty and pity from DS Shazalli for his wrong doings. Worse is, he has been spreading rumours that he is being protected by Shazalli on so many occasions, even to the point of commenting on the latter’s personal matters.

  5. It is sad that Shazalli had wrongly put his trust on this person.  Subsequently, even the new management of Celcom had terminated him due to his recent misconduct.

  6. As the result, Razali Ismail is now spreading rumours that he will be joining TM just because DS Shazalli has been nominated to the post of its CEO.

  7. Razali is known for his antics, on the outside he looks like a shy person but in reality he is A BULLY.

  8. Dear DS Shazalli, please don’t take or choose this type of candidate who can spoil your own reputation. There are many ‘Razalis’ out there gunning for your ‘dirty linen’ but choosing this Razali to be in your new turf will not going to help you in any bit.

  9. This Razali should have been reprimanded long time ago since his power trip days. It is hoped that DS Shazalli can see his true colours otherwise he will be sleeping with the devil.

 

Is this true about TM CEO will not be extended and Shazalli will be installed as the next TM head? Judging from his performance in Celcom for the past two decades, this could be a master stroke in terms of alleviating TM to the next level. As for this Razali Ismail person, well rotten apples should just stay rotten and tucked away for good.

Looks decent but looks might be deceiving

Celcom, Maxis, Digi, etc cheating state governments?

Perak and Penang to dismantle thousands of telco towers

IPOH: The Perak government is to dismantle all illegally erected telecommunications towers and those for which the annual permits have not been paid.

Menteri Besar Zambry Abdul Kadir said today there were more than 2,800 such towers belonging to various telcos in the state.

“So far, we have only 1,400 legal telecommunications towers; the number of illegal towers is more than double that,” he told reporters after opening a telco infrastructure development workshop and seminar here.

Zambry said the reluctance of the telcos to pay the annual RM2,000 permit for every tower cost the state government RM20 million in revenue.

“All the states are imposing the same rule on permits but in Perak the telcos have cited all kinds of reasons, including operational costs, to refrain from paying up,” he said.

GEORGE TOWN: Penang has taken down “dozens” of illegal telco towers. State Local Government Committee chairman Chow Kon Yeow said this when commenting on a report that Perak had demolished 300 illegal towers.

Perak Menteri Besar Zambry Abdul Kadir had said there were more than 2,800 illegally built towers belonging to various telcos in the state. He said each tower must pay permit fees of RM2,000 a year, meaning the state was losing RM20 million in revenue every year.

Chow said out of the 930 telco towers in Penang, 137 had been found to be illegally built.

He said the owners of the illegal towers had been served 30-day notices, ordering them to dismantle their towers.

Chow said several dozen towers were removed upon requests by non-governmental organisations and residents.

“Before 2008, most telco structures in the state were illegal. They were not paying any sort of fees.

“When we took over the government, we conducted a legalisation exercise to ensure all were legal.

“The errant telco providers or owners of towers were dealt with swiftly. We have taken down dozens of telco towers for building illegal structures. Some owners have not paid up. They are operating against state guidelines for telco towers, which came into effect on Nov 20, 2009,” he told FMT.

What can we assume here? Telco companies in Malaysia are just snakes who would suck up their consumers dry and at the same time circumvent state laws by not paying their dues.

How many times have they disconnected your mobile line when you are late one day in paying your bills? Well, some of these telcos are several years late in paying their own bills!

Profiteering from your poor customers is one thing, but profiteering and cheating state governments is another whole new level.

http://www.freemalaysiatoday.com/category/nation/2017/01/23/perak-to-dismantle-2800-telco-towers/

http://www.freemalaysiatoday.com/category/nation/2017/01/25/nearly-150-illegal-telco-towers-in-penang-demolished/

Stiff competition for telcos in 2016

But How About 2017?

We feel that the Malaysian market needs at least one more telco company to really give more value to the customers. These telcos have been squeezing the Malaysian public for the past decade with their arrogant customer service, pricey data charges and lopsided contracts.

It is payback time!

Kuala Lumpur: A year of price war for mobile telecommunication companies or telcos best sums up the sector in 2016, as stiff competition in a saturated market prompted them to source new streams of income to sustain their businesses moving forward.

Current Analysis Group’s Senior Analyst for Asia Pacific Alfie Amir said mobile telcos saw a declining trend in their revenues and Average Revenue Per User (ARPU), as well as total subscribers.

As of October this year, the average ARPU for telcos stood at RM41.50 compared to RM43.03 last year, and this was expected to decline further next year with a compound annual growth rate of -2.6 per cent from 2016 to 2021, he told Bernama.

Revenue peaked in 2013 but was stagnant in 2014 before starting to decline in 2015 and this year it is expected to decline even more significantly.

In terms of total subscribers, mobile operators recorded 46 million subscribers in 2015 and the number was expected to go down to 44.9 million this year and to 44.5 million in 2017, Alfie said.

Amid this challenging environment, the telcos, namely the top three players Maxis, Celcom and Digi – have been on a price war and are also increasingly giving more values to attract more customers especially from their rivals.

In tackling the price war, Maxis had, instead of reducing the price, put more emphasis on enhancing its product values and stressing on customer experience to position itself as a premium product against competitors, he said.

“As a result, they are losing the subscribers’ market share but in terms of ARPU, they are more stable as they lost only the lower-value subscribers but managed to retain higher-value customers compared to its competitors,” said Alfie.

Looking at the telco’s third-quarter results this year, another analyst said Maxis, which has maintained its premium pricing with a blended ARPU of RM100, showed a turnaround with its earnings gaining momentum, outperforming its peers in terms of margin.

Moving into 2017, Alfie said he hoped the telcos would realise that a price war did not really work in Malaysia and was only effective for certain segments.

He said the telcos needed to explore new ways to be relevant in the market by leveraging the use of Internet of Things and Big Data Analytics (BDA).

Meanwhile, another highlight of the year was the surprise move announced by the Malaysian Communications and Multimedia Commission in February that it would reallocate and directly assign the 900MHz and 1800 MHz bands to four operators, namely Maxis, Celcom, Digi and U-Mobile.

Alfie said the spectrum reallocation would exacerbate the already intense competition as the top operators would be at a level playing field.

In this exercise, Digi and U-mobile will gain more access to this valuable capital expenditure-efficient spectrum while Maxis and Celcom would need to give back the some that they own.

Alfie pointed out that the spectrum fee charged to the telcos was expected to put a dent on the their total service revenue by between 10 and 15 per cent of their earnings’ margins.

“The telcos would have to find ways to optimise the spectrum by attracting more customers to monetise their investments going into 2017, as well as strategizing their sources and operate efficiently by improving their back-end processes like utilising more BDA,” he maintained.

Moving forward, he expected 2017 to see a battle among ‘converge players’ after Telekom Malaysia Bhd ™ launched its mobile arm ‘webe’, formerly known as Packet One Networks, on September 30 this year.

“This will allow TM to provide converge services of both fixed line and mobile.

“Before webe, Maxis was the only player to offer fixed-line and mobile services but is progressing slowly in terms of innovating the convergence of both services,” he said.

Celcom has also entered the play after a soft launch of its fixed-line services early this year for selected customers and expected to finalise the offerings to end-users next year.

Consequently, there will be three big players to offer converged services which will ultimately intensify the competition and undoubtedly drive innovation.

Alfie explained that entering into the fixed-line space would be a way to explore new source of income for mobile telcos but TM would benefit more as most of the fixed-line infrastructure belonged to the company.

Hence for other operators to offer fixed-line services, they have to do these via wholesale agreement with TM.

On the enterprise segment, he said TM continued to be the dominant player this year in this segment which provided more fixed-line services rather than mobile, with the other player TIME dotCom Bhd trailing far behind due to coverage limitation.

In the fixed-line market, TM currently owns about 85 per cent share, TIME about 5.0 per cent and the balance shared between TM, Maxis and the rest, he said.

“TM is also on the right journey to transform the company by tracking the telcos in advanced countries to move beyond connectivity into the information technology (IT) providers’ space in the enterprise market.

“Telcos globally are now offering cloud solutions, data centre, cyber security, software services network…the solutions that IT providers are offering,” he said.

Interestingly, 2017 will see the growth of smaller players like XOX Bhd, Tune Talk Sdn Bhd, Red One Network Sdn Bhd, PT Telekomunikasi Indonesia International (M) Sdn Bhd (Telin Malaysia), webe sdn bhd, YTL Communications Sdn Bhd’s Yes, and those with subscribers of below one million, to eat into the market share of the big players by catering to the needs of niche market and emerge as a new threat.

An example to ponder is the presence of Telin Malaysia, a subsidiary of a big telco in Indonesia, which is already here to offer services to a niche market for Indonesian migrant workers in Malaysia, also an important segment for the big telcos. – http://www.dailyexpress.com.my/news.cfm?NewsID=114851

cropped-managed-neworked-services.jpg

Telco services monitored by Communications Ministry

malaysia-telco

The market here needs another player to really give more options to consumers. U Mobile for instance, is just a small bit player a few years ago but they can still manage to earn over 1 billion ringgit in revenue just last year!

Imagine how many billions other players get!

Poor service by the telcos is partly due to less competition in the market, with only the Big 3 (DiGi, Maxis and Celcom) ruling the roost.

It is time the government give more operating licenses to new players. We hear they are queuing up but had their applications put on hold due to heavy lobbying by one of the telco bosses who has close relationship with the powers that be.

Anyhow, it is good that the Communications Ministry is keeping tabs on these telcos. At the end of the day, the consumers must win.

Communications Ministry monitors service charges by telco companies

KUALA LUMPUR, — The Communications and Multimedia Ministry (KKMM) will constantly monitor the service charges imposed by telecommunication companies to ensure that they are fair and reasonable.

The ministry said monitoring for the last few years showed that the charges for telecommunication services in the country were increasingly reduced.

“This is due to the strong competition among the country’s telecommunication companies,” it said in a written reply to a question from Senator Tan Sri S. Nallakaruppan in the Dewan Negara here today.

Elaborating, the ministry, through the Malaysian Communications and Multimedia Commission (MCMC) and the telecommunication service providers were always looking for the best method to provide satisfactory services to the people.

Currently, the charges for the services were unregulated and relied on the  commercial planning by each provider.

Thus, it said the telecommunication companies were given the freedom to set the rates for mobile and broadband services to create healthy competition in giving quality services to suit the customers’ needs and affordability.

The competition that existed among the service providers had been proven to reduce the market price and benefitted the consumers.

The statement said the variety in charges was due to government’s measures to increase the competition, which would further reduce the charges and the services could be offered at an affordable rate. — Bernama

http://www.themalaymailonline.com/malaysia/article/communications-ministry-monitors-service-charges-by-telco-companies-senate#sthash.gIxaZtgU.dpuf

Telekom Malaysia financial report card

tm

A few news on Telekom Malaysia financial status recently announced:

http://www.thestar.com.my/business/business-news/2016/11/28/hlib-research-keeps-hold-call-for-telekom-malaysia/

Higher-than-expected cost driven by marketing as well as supplies and materials costs, caused Telekom Malaysia Bhd’s (TM) to deliver below-expectations core net profit of RM578mil for the first nine months of financial year 2016 (9MFY16), according to Hong Leong Investment Bank (HLIB) Research.

It said on Monday overall revenue fell by 4%, impacted by the dismay showing by all other products, quarter-on-quarter. However, smaller accelerated depreciation associated to webe and leaner cost structure lifted core net profit by 24%.

http://asia.nikkei.com/Business/AC/Telekom-Malaysia-net-profit-down-4.2-as-operating-costs-rise

“Telekom Malaysia, Malaysia’s oldest telecommunications provider, said Friday that net profit fell 4.2% on the year to 159.8 million ringgit ($35.9 million) for the quarter ended Sept. 30 on higher operating costs.

Operating revenue edged up to 2.92 billion ringgit, according to a filing with Bursa Malaysia. The company credited higher revenue from internet and multimedia, other telecommunications-related services and non-telecommunications-related services “partially offset by reduction in voice and data services.”

https://www.telecompaper.com/news/telekom-malaysia-profit-jumps-nearly-15-in-q3–1173651

Capital expenditure was MYR 1.65 billion for the nine-month period or 18.7 percent of revenue, up from MYR 1.15 billion or 13.5 percent of revenue a year ago. Spending during the third quarter of 2016 was at MYR 715 million, almost half of which went to upgrades of the core network. Free cash flow (EBITDA – capex) fell to MYR 1.16 billion from MYR 1.66 billion in the year-earlier period.

Operationally, TM saw a 3.3 percent annual increase and 0.2 percent quarterly growth in its total broadband customers to 2.37 million at 30 September. UniFi continued to boost growth, with over 921,000 customers in total, up by 20,000 in the last three months. The number of fixed line customers fell by 18,000 in the quarter to 4.20 million. 

Conclusion?

Readers can make their own conclusion.

CEO Telekom Malaysia, Zamzamzairani
CEO Telekom Malaysia, Zamzamzairani.