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ENRICHING LIVES EXPANDING HORIZONS - Maxis

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MAXIS BERHAD<br />

ANNUAL REPORT 2011<br />

61<br />

“We are able to continuously provide<br />

and roll out leading edge high speed<br />

broadband infrastructure that enables<br />

Malaysians to receive the full benefits<br />

of next generation services. Quality and<br />

good customer experiences are core to<br />

our network design and services.”<br />

Yap Chee Sun<br />

Head of Network<br />

As of December 2011, myLaunchpad, our internet portal targeted at the youth<br />

segment, had 2.2 million unique browsers and ranked as the 2nd most visited local<br />

website, up from 6th place in December 2010. This places our portal among the top<br />

10 most visited websites including international sites in Malaysia. myLaunchpad has a<br />

number of content and application verticals including Entertainment, Games, Sports,<br />

Finance and News. It is an important platform for the delivery of our multi-screen<br />

content strategy across mobile, PC and TV.<br />

In addition to market-facing innovation, we continue to innovate our systems and<br />

the way we operate internally. One such example is our world-class geomarketing<br />

capability that provides customer analytics at street level and enables targeted<br />

investments in our network and distribution channels. We continuously improve our<br />

IT and Customer Relationship Management (CRM) systems for greater impact with<br />

micro-segmentation, real-time billing and experience-based data pricing.<br />

Recognition for our commitment to innovation was reflected in <strong>Maxis</strong> being awarded<br />

the prestigious Global Telecoms Business (GTB) Innovation Award in November. <strong>Maxis</strong><br />

was the only Malaysian company to be recognised at the awards.<br />

Network Infrastructure Ready for Medium-Term Internet and<br />

Data Demand<br />

In 2009, we embarked on a plan to modernise and augment our nationwide network<br />

particularly for high-speed data. <strong>Maxis</strong> has built a high-performance data network,<br />

rated by independent agencies as the best broadband network in Malaysia. In 2011<br />

our capex spend was at RM1.02 billion supporting RM1.44 billion invested in 2010<br />

and RM1.24 billion in 2009. As a result, we are now ready to roll out 4G-LTE services.<br />

Our 5,146 HSPA sites are now serving over 81% of the population with high-speed 3G<br />

network coverage, while our 2G network covers 95% of the population. Consequently,<br />

our capex investment 2012 onwards will not be required at the scale incurred over the<br />

last three years.<br />

Agreements with Telekom Malaysia Berhad and Tenaga Nasional Berhad which were<br />

signed in 2010, have been instrumental in expanding our fixed and wireless high-speed<br />

broadband footprint to meet the growing demand for data and broadband services<br />

across the country while rationalising our capex spend.<br />

Future consumer demands for data, geographical coverage and licence obligations will<br />

call for further investment in data networks, which will affect returns as ecosystems<br />

will take time to scale up. Sharing of networks between operators is essential to<br />

optimise resources, improve speed-to-market and expedite return on investment.<br />

<strong>Maxis</strong> demonstrated a long-term view on this philosophy during the year by entering<br />

into an active RAN sharing agreement with U Mobile for 3G and LTE, paving the way<br />

for cooperation between operators and taking infrastructure sharing to a whole new<br />

level beyond the passive sharing arrangements currently practised by operators in the<br />

industry. Our agreement also encompasses LTE sharing which will deliver even greater<br />

benefits to customers. We expect infrastructure sharing to continue at the industry<br />

level as networks approach low-yielding rural geographies and as we embark on a<br />

multi-player LTE journey.

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