1. INTRODUCTION 1.1 Introduction 1.1.

1 Communication Service Provider (CSP) A Communications Service Provider or CSP is a company that transports information electronically. The term encompasses public and private companies in the wire line, wireless, internet, cable, satellite, and managed services businesses. The market in which a communication service provider specializes is often a function of the industry served. These industries can be divided into three categories: telecommunications, entertainment and media, and Internet/Web services. There are several communication service provider in Malaysia, they are Maxis, Digi, Celcom, U-mobile and XOX. (http://en.wikipedia.org/wiki/Communications_Service_Provider) 1.1.2 History of Maxis Maxis Communications Berhad is a leading mobile phone service provider in Malaysia. It was established in the year 1995. It uses the dialing prefix identifier of both "012" and "017". Maxis provide a variety of mobile communication products and services such as prepaid call plans, monthly subscription plans, global roaming, MMS, WAP (over both GSM and GPRS), Residential Fixed Line services, Broadband Internet plans, and as of early 2005, 3G services to both prepaid and post paid subscription customers. In 1999, Maxis introduced the popular pre-paid brand "Hotlink", which currently has 10 Million customers. (http://en.wikipedia.org/wiki/Maxis_Communications) 1.1.3 History of DiGi DiGi Telecommunications is a mobile service provider in Malaysia. It is owned in majority by Telenor ASA of Norway with 49%. On 24 May 1995 DiGi became the first telecommunication provider in Malaysia to launch and operate a fully digital cellular network. They were also the first to offer GPRS (2.5G) and later EDGE (2.75G) in Malaysia in 14 May 2004. It uses the native dialling prefix identifier of "010", "016", "014", "0146" and "0149",
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Like Maxis, DiGi Telecommunications Sdn. Bhd. also provides a variety of mobile communication services. These services include voice under their prepaid plans & postpaid plans, SMS, data plans and services, international roaming, international calling card and WAP services.
(http://en.wikipedia.org/wiki/DiGi_Telecommunications)

1.1.4 Comparisons of Revenue between Maxis and DiGi For the year ended 2006, the revenue of Maxis is RM 2,011,834,000, whereas the revenue of DiGi is RM 401,707,000 which shows that there is a difference of RM 1,610,127,000 between the two revenues. Besides that, the profit for the year 2006 of Maxis is as much as RM 1,324,815,000 whiles the profit of DiGi is RM 288,065,000 which made Maxis profit is RM 1,036,750,000 more than DiGi. In year 2006, the total asset of Maxis is RM 6,210,253,000 whereas the total asset of DiGi is RM 85,804,000 which gives us a difference of RM 6,124,449,000 between this two communications service provider. (http://www.maxis.com.my/personal/about_us/investor/annual_report/Maxis_Annual_Report _2006.pdf )( http://www.digi.com.my /aboutdigi/investor/image/DigiAnnRep_2006.pdf) 1.2 Problems 1.2.1 Problems faced by Maxis and DiGi There is stiff competition between Maxis and DiGi in the sector of communication services. They need to update their system and introduce more beneficial plans for consumers to sustain customer loyalty and attract new customers. For example, both of the companies introduce prepaid plan. For Maxis, they introduce Hotlink whereas for DiGi is the DiGi Prepaid. They are both facing a big threats from each other in term of pricing. (http://adrianang.merlion-city.com/2008/11/04/phone-deal-comparison-maxis-vs-digi/) In addition, Maxis and DiGi also scare for the threats caused by newly formed communication service providers. For example, U-Mobile and XOX who are recently enter the communication service sector.(www.u.com.my)(www.xox.com.my). They are offering different packages to gain market share. So, Maxis and DiGi facing lost of market share problem as more and more communication service provider enter this industry.

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1.2.2 Consumers problems The common problem faced by consumer is that the service provided is not as promised by the companies. Sometimes, the customer service of the company cannot solve the problems faced by the users efficiently such as provide not enough information when customer ask for detail information. They are not able to satisfy the customers needs. Besides that, there is also line coverage problem. For example, Shah Alam is facing line coverage problem that causes the user unable to make voice call or receive call from people. ( http://www.malaysianwireless.com/2009/02/maxis-poor-coverage-in-shah-alam.html). Another problem is that the consumers do not have enough relevant information about the service or plans provided by the companies. Thus, it will be hard to make comparisons between the communication service providers and make a good choice of which service provider they would like to sign up for. Besides that, consumers may not be able to understand clearly and confused by the services provided. (http://blog.lankapo.com/tag/maxis/) 1.3 Objectives 1.3.1 To investigate the used of Maxis and DiGis service among respondents in TAR College Penang. 1.3.2 To understand the factors leading to engagement of Maxis and DiGi among respondents in TAR College Penang. 1.3.3 To investigate the popularity of DiGi and Maxis providers among respondents in TAR College Penang 1.3.4 To compare the strengths of DiGi and Maxis 1.3.5 To compare the weaknesses of Maxis and DiGi 1.4 Significance 1.4.1 Maxis & DiGi companies 1.4.1.1 They will be more understood about customers needs.

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1.4.1.2 They will know what the weaknesses of their company are. 1.4.1.3 They will know more information about competitors.

1.4.2 Consumers 1.4.2.1 Consumers will have more up-to-date information about both communications service provider. 1.4.2.2 It is easier to choose which service provider gives them the most benefits by comparing the strengths and weaknesses of both service providers. 1.4.3 Business Students 1.4.3.1They can gain knowledge on different marketing strategies used by Maxis and DiGi.

1.5 Limitation 1.5.1 Respondents Our research respondent is based on teenagers because the scope is smaller if compared to the total number people from different age level. The results of the research will be more reliable, accurate and consistency. 1.5.2 Location We restrict our research target at TAR College in order to minimize our movement. It is easier for us to conduct our survey due to the transportation problems. 1.5.3 Topic Our research will focus on two communication service providers, Maxis and DiGi only. We only make comparison between Maxis and DiGi to provide more details and more reliable information on postpaid and prepaid to the users of communication service providers.

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2. Methodology 2.1 Introduction

RESEARCH

Primary

Secondary

Questionnaire

Internet

Brochure

Figure 2.1 Data Collection Methods Figure 2.1 shows the methods that had been used by us to collect information for our research. For primary research, we are using the questionnaire to obtain information from our respondents in TAR College, Penang. For secondary research, we accessed the information on internet and also get some brochures from the Maxis Centre and DiGi Centre. 2.2 Primary research 2.2.1 Questionnaire Question 1 is about the communication service provider used by TARC respondents while question 2 is on the duration they have used the service. Question 3 is about the packages mostly used by respondents. For question 4, it is about the amount of money spent on the hand phone bill. These four questions will help us to answer objective 1.3.1.

For Question 5, we are collecting comments of respondent towards the customer service of Maxis and DiGi.For question 6 and 7,we want to know whether the functions and charges by Maxis and DiGi are almost the same. This will help us to answer the objective 1.3.2.

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From question 8 until question 11, these question are set to answer the objective 1.3.3.question 8 is about the service frequently used by the TARC respondents. For question 9, it is about the source of information that TARC respondents obtain for Maxis and DiGi. For question 10, we would like to know the methods that respondents (postpaid) pay their bill while question 11 deals with the method used by respondents (prepaid) to reload credits for their hand phone.

For question 12, it is about the attractiveness of advertisement by Maxis or DiGi. Question 13 is set based on question 1, it is about the factors that make TARC respondents choose Maxis, DiGi or both as their communication service provider. These 2 questions are set to meet with the objective 1.3.4.

Question 14 is set to know the weaknesses that faced by TARC respondents when using Maxis or DiGi. Question 15, is about the response of TARC respondents on the weaknesses of Maxis and DiGi. We want to know whether they will change their communication service provider. We will be able to answer the objective 1.3.5 through these 2 questions. 2.3 Secondary research We have found some articles from internet and also brochure obtained from the dealer of Maxis and DiGi which can help us to answer several objectives stated. 2.3.1 Postpaid Comparison 2009 (http://www.nuffnang.com.my/pospaidcompare_09)

accessed 13 June 2009 This article explains the prices for several postpaid packages offered by the telecommunication service providers in Malaysia. This will help us understand better about the charges by Maxis and DiGi Company for voice call rates and also SMS. This article provides us with the latest information that leads to competition between Maxis and DiGi. From the information obtained, we are able to answer objective 1.3.2.

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2.3.2 Hotlink Youth Club Brochure, Maxis Centre, obtained 8 June 2009 The Hotlink Youth Club brochure provides us with the information about the services and rewards provided for Hotlink user in the campus. This brochure helps us to understand the competitive advantages of Hotlink over the other communication service provider, DiGi. Thus, we are able to answer the objective 1.3.4. 2.3.3 DiGi CAMPUS Brochure, DiGi Centre, obtained 18 June 2009 The DiGi Campus brochure provides us with the information about the services and rewards provided for DiGi users in the campus. This brochure helps us to understand the competitive advantages of DiGi over the other communication service provider, Maxis. Thus, we are able to answer the objective 1.3.4. 2.3.4 Maxis Vs DiGi, (http://www.mobile88.com/forum_2000/forum_posts.asp?) accessed 15 June 2009 This forum contains many comments about the strength and weaknesses of the service provided by Maxis and DiGi. From there we are able to make comparison on both of the company. Thus, we are able to answer the objective 1.3.4 and 1.3.5.

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3. FINDINGS AND DISCUSSIONS 3.1 POPULARITY OF DIGI AND MAXIS COMMUNICATION SERVICE PROVIDER AMONG TARC RESPONDENTS IN TARC PENANG 3.1.1 Communication Service Provider used

communication service provider used

maxis Digi

30%

70%

Figure 3.1 communication service provider used Figure 3.1 shows the communication service provider used by respondents in TARC Penang. Based on the data collected, 70% (21) of all respondents in TARC Penang choose Maxis communication service provider. In contrast, there are 30% (9) of all respondents who select Digi as their communication service provider. In conclusion, the result shows that Maxis communication service provider is used more by respondents compared to Digi communication service provider.

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3.1.2 Duration used for Maxis or DiGi

Durations used for communication service provider

less than 1 years, 6.67% more than 5 years, 50%

1 to 4 years, 43.33%

more than 5 years 1 to 4 years less than 1 years

Figure 3.2 Durations used for the communication service provider Figure 3.2 shows the duration used by respondents for their communication service provider. Based on the data collected, 50% (15) of all respondents have been using Maxis or DiGi for more than 5 years. There are 43.33% (13) of all respondents have used Maxis or DiGi in between 1 to 4 years. In contrast to this figure, only 6.67% (2) of all respondents are using Maxis and DiGi as their communication service provider for less than 1 year. In conclusion, more respondents use Maxis or DiGi for more than 5 years whereas lesser respondents use their service provider less than a year.

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3.1.3 Types of packages used

Types of packages used

3.33%

33.33% Prepaid 63.34% Postpaid Both

Figure 3.3 Types of packages used by respondents Figure 3.3 shows the types of package used by TARC respondents in Penang. Based on the data collected, 63.34% (19) of all respondents use the prepaid package. There are 33.33% (10) of all respondents who use postpaid package. In contrast, only 3.33 % (1) out of 30 respondents use both Maxis and DiGi at the same time. In conclusion, there is more respondents prefer to use prepaid package rather than postpaid package.

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3.1.4 Amount of money spend on hand phone bill per month

Amount of money spend on handphone bill per month

6.67%

33.33% 60%

less than RM50 RM51-RM99 More than 100

Figure 3.4 Amount of money spent by respondents on hand phone bill per month. Figure 3.4 shows the amounts of money spend by TARC respondents on hand phone bill per month. Based on the data collected, there are 60% (18) of all respondents in TARC Penang spend less than RM50 on their hand phone bill per month. On the other hand, there are 33.33% (10) of respondents who spent RM51 to RM 99 on their hand phone bill per month. The least number of respondents that is only 6.67 %( 2) who spend more than RM100 on their hand phone bill per month. It can be concluded that more respondents spent less than RM50 on their bill and lesser respondents spend more than RM100.

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3.2 FACTORS LEADING TO ENGAGEMENT OF MAXIS AND DIGI AMONG RESPONDENTS IN TARC PENANG 3.2.1 Opinion about the Customer Service by Maxis or DiGi

Opinion about the customer service

2.45 2.4 2.35 2.3 2.25 MAXIS DIGI

2.43

2.33

Figure 3.5 Respondents Opinion on Customer Service by Maxis and DiGi Figure 3.5 shows respondents opinion on Maxis or DiGis customer service. Data analyzed by assigning the value of 3 to Good,2 to Fair and 1 to Bad. Therefore the highest mean value of 3 denotes the highest positive response to the statement. The mean value of 2 shows a neutral response while the lowest mean value of 1 shows the lowest negative response to a statement. The statement given to the respondents is to gauge their opinion to the customer service provided by Maxis and DiGi. Customer service refers to the service that provided by Maxis or DiGi to solve the problems faced by customers. The mean value for the Maxiss customer service is 2.43.this figure shows that respondents feel that the customer service by Maxis is quite good only. In contrast to this, the mean value for DiGi is 2.33.This value shows that respondents are also feel that the customer service by DiGi is consider quite good only. There are no respondents who feel that the customer service by Maxis and DiGi is bad. However, Maxis customer service is rated to be better compared with DiGis. In conclusion, the customer service provided by Maxis and DiGi are considered quite good by the respondents.

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3.2.2 The functions provided by Maxis and DiGi 3.2.3 The charges by Maxis and DiGi

Functions and Charges by Maxis and DiGi

2 1.5 1 0.5 0 Functions Charges

1.77

1.37

Figure 3.6 Respondents opinion on difference between functions and charges by Maxis and DiGi Figure 3.6 shows respondents opinion on the functions and charges by Maxis and DiGi. Data are analyzed by assigning the value of 3 to Yes,2 to Not sure and 1 to No. Therefore the highest mean value of 3 denotes the highest positive response to the statement. The mean value of 2 shows a neutral response while the lowest mean value of 1 shows the lowest negative response to a statement. The statements were given to the respondents to gauge their opinion on the functions and chargers by Maxis and DiGi. The mean value for the functions provided is 1.77.This figure shows that the respondents are not sure whether the functions provided by Maxis and DiGi are the same or not. In contrast to this, the mean value for the charges by Maxis and DiGi is low at 1.37. This figure also shows that the respondents are not sure whether the functions provided by Maxis and DiGi are the same or not. In conclusion, the mean values for the statements show that the respondents are not sure whether the functions provided and also the charges by both companies are the same or not.
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3.3 THE POPULARITY OF DIGI AND MAXIS AMONG RESPONDENTS IN TARC PENANG 3.3.1 Types of Service Often Used

Types of Service often Used

0%
26.67%
SMS Voice call MMS

73.33%

Figure 3.7 Types of Service often Used by Respondents Figure 8 shows the opinions of respondents in TARC Penang on the type of service often used. Based on the data collected, 73.33% (22) of all respondents often use the SMS service provided by the communication service provider. Those who often use the voice call service constitute 26.67% (8) while there are no one chooses MMS service as the service often used. In conclusion, it can be said that most respondents choose the SMS service as the type of service that is often used by them.

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3.3.2 Sources to Get Information about the Communication Service Provider

Sources to Get Information

Others Brochure Magazines/Newspapers Friends Online Advertisement TV Advertisement 0.00% 20.00% 6.67% 26.67% 40.00% 60.00% 3.33% 3.33% 13.33% 46.67% Sources to Get Information

Figure 3.8 Sources to Get Information about the Communication Service Provider Figure 3.8 shows the sources where respondents get information about the communication service provider. Based on the data collected, 26.67% (8) of all respondents get the information from TV advertisement. Those who often get information from online advertisement constitute 6.67% (2) while those who often get information from friends are 46.67% (14). There are 13.33% (4) of all respondents who get the information from magazines / newspapers advertisements while those who often get from brochure are 13.33% (4). Similarly, 3.33% (1) of all respondents get the information from other sources which are from their parents. In conclusion, it can be said that more respondents choose friends as the source to get information about the communication service provider.

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3.3.3 Methods to pay bills for Postpaid Package

Methods to Pay Bills (Postpaid Package)

60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% At Post Office Through Internet Others 18.18% 27.27% Methods to Pay Bills (Postpaid Package) 54.55%

Figure 3.9 Methods used by Respondents to pay bills for Postpaid Package Figure 3.9 shows the methods used by respondents in TARC Penang to pay bills for postpaid package. Based on the data collected, 54.55% (6) of all respondents pay their bills at the post office. There are only 18.18% (2) of all respondents do their payment through the internet. Those who pay the bills through other methods which are through the Maxis centre constitute 27.27% (3). In conclusion, it can be said that more respondents pay their bills at the post office.

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3.3.4 Methods used to Pay Bill for Prepaid Package

Methods to Buy Credit (Prepaid Package)

45% 55%

Direct Reload Buy the Reload Card from Shop Others

Figure 3.10 Methods used to Pay Bill for Prepaid Package Figure 3.10 shows the methods used by TARC respondents to buy credit for prepaid package. Based on the data collected, 55% (11) of all respondents buy their credits for prepaid package through direct reload. Those who buy credits using the reload card from shop constitute 45% (9). There are no one choose other method to pay their bills. In conclusion, it can be said that slightly more respondents of prepaid package using the direct reload as the method to buy their phone credits.

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3.4 COMPARISON OF STRENGTHS AND WEAKNESSES BETWEEN MAXIS AND DIGI 3.4.1 Comparison of attractiveness of advertisement by Maxis and DiGi

Attractiveness of the advertisement between Maxis and DiGi

43.33% 56.67%

DiGi Maxis

Figure 3.11 Choices by respondents on the attractiveness of advertisement by Maxis and DiGi Figure 3.11 shows the choices made by respondents on the attractiveness of advertisement by Maxis and DiGi. Based on the data collected, 56.67 %( 17) of all respondents choose DiGis advertisement as more attractive compared to Maxis. In contrast to this figure, only 43. 33% (13) respondents choose the advertisement by Maxis is more attractive compared to DiGis. It can be concluded that slightly more respondents think that the DiGis advertisement is more attractive than Maxis.

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3.4.2 Factors that lead to choices of Maxis or DiGi as communication service provider

Influence of friends and family Package offers lower charge for SMS and calls Have been using it for a long time

10% 6.67% 10% 20%

33.33%

Maxis DiGi

10% 10% 5 10 15 20

Too lazy to change 0

25

30

35

Figure 3.12 Factors affecting choices of respondents in choosing communication service provider. Figure 3.12 shows the factors that made the respondents are Maxis or DiGi as their communication service provider. Based on the data collected,33.33%(10) of all respondents choose influenced by friends and family as their reason for choosing Maxis as communication service provider while only 10%(3) respondents choose this factor as their reason to choose DiGi. In contrast, only 10%(3) respondents choose too lazy to change as their factor of choosing Maxis as communication service provider while there is no respondent ,0% who use DiGi choose this factor as their reason for using DiGi. 6.67 %(2) of all respondents choose lower charge in SMS and calls as a factor for them to use Maxis while there are 10%(3) respondents choose this factor as reason for using DiGi. Similarly, 20 % (6) respondents choose have been using it for long time as their reason to use Maxis while 10%(3) respondents choose this as a factor to use DiGi as their communication service provider. It can be concluded that there are same number of respondents who choose influence of friends and family, package offers lower charge for SMS and calls as factors for them to use DiGi. There are obvious differences on the percentage of respondents in choosing the 4 available factors as reasons for choosing Maxis as their communication service provider.

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3.4.3 Weaknesses of the Communication Service Provider

Weaknesses of the Communication Service Provider

12 10 8 6 4 2 0 Maxis Digi Bill amount is not up-to-date when checked Price charge to different service provider is expensive Others Centre is not available in every place Low Coverage

Figure 3.13 Weaknesses of the Communication Service Provider is not up-to-date when checked and the prices charged to different service provider is expensive. There are no respondents who face other problems. It can be concluded that respondents of Maxis face more problems regarding the unavailability of centers is whereas respondents of DiGi face more problems of low coverage. Figure 3.14 shows the opinion of respondents towards the weaknesses of the Communication Service Provider. Based on the data collected, 52.38% (11) out of 21 respondents of Maxis said that Maxis centers are not available at every place whereas 19.05% (4) of the respondents complained about the low coverage faced by them while using Maxis. Besides that, 28.57 % (6) out of the respondents agreed that the price charged to different service provider is expensive. There is no opinion from the respondents towards the problem of bill amount not up-to-date when checked and others. Based on the data collected, 66.67 % (6) out of 9 respondents of DiGi says that they are facing low coverage when they use the communication service provider whereas 11.11 % (1) of the respondents agrees that the weaknesses they face are the centers are not available in every place, bill amount

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3.4.4 Loyalty towards the Communication Service Provider

Loyalty towards the Communication Service Provider

Yes No

43% 57%

Figure 3.14 Loyalties towards the Communication Service Provider Figure 3.15 shows loyalty of the respondents towards the Communication Service Provider. Based on the data above, 57% (17) out of 30 selected respondents will change their service provider because of the weaknesses they face while using. On the contrary, 43% (13) of the respondents will not change their service provider even if they are facing problems with it. In conclusion, more respondents will change their service provider because of the weaknesses they faced.

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4. CONCLUSIONS 4.1 POPULARITY OF DIGI AND MAXIS COMMUNICATION SERVICE PROVIDER AMONG RESPONDENTS IN TARC PENANG 4.1.1 Communication Service Provider used From Section 3.1.1, it can be concluded that Maxis communication service provider is more often used by TARC respondents compared to DiGi communication service provider. This is because Maxis is better known among respondents in TARC Penang. DiGi is only well known few years back since the advertisement of Yellow Man introduced by the company. Besides, there are many attractive promotions and packages offered by Maxis. For example, Hotlink Youth Club offers a variety of advantages for students which help them to have a great saving on calls and SMS. Although DiGi also offer DiGi Campus packages, this package is not available for TARC Penang. Thus students are more likely to choose the Hotlink Youth Club packages. 4.1.2 Duration used for Maxis or DiGi From Section 3.1.2, it can be concluded that most of the respondents have been using their communication service provider for 5 years or more. There are several reasons for the respondents to use their communication service provider for such a long period. First, it is because they already started to use hand phone since they are in secondary school or even primary school. Second, they are lazy to change their communication service provider as they need to spend money and time to inform their friends and family members. There may be a risk of missing out some contact numbers when they try to inform their friends. Third, for some people, the hand phone number may be is meaningful to them. Their number may be containing their birthday or some other meaning that they seem as important. Thus, they will not simply change their number or even communication service provider.

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4.1.3 Types of packages used From Section 3.1.3, there is more respondents prefer to use prepaid package rather than postpaid package. This is because the rates charged especially for the SMS for prepaid is much lower than the charges for postpaid. By using the prepaid packages, students will not over spend on the hand phone expenses. Besides, it is easier to reload the credit by using the prepaid packages. Students can top up depend on their budget. Maxis SMS rate Prepaid (Hotlink Youth Club) Same network Different network Table 4.1 Comparison for the SMS rate between the prepaid and postpaid for Maxis and DiGi (http://www.maxis.com.my)(http://www.digi.com.my) 1 cent 5 cents 18 cents 20 cents 1 cent 6 cents 10 cents 10 cents Postpaid (Value First) Prepaid (DiGi Campus) DiGi Postpaid (DG 30)

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4.1.4 Amount of money spend on hand phone bill per month Based on the data collected in Section 3.1.4, it can be concluded that most of the TARC respondents spend less than RM 50 on their hand phone credit. This is because students do not have the ability to spend too much on their hand phone expenses. Students do not have any income and their daily expenses are still controlled by parents. In addition, students normally will SMS rather than making call.SMS is much cheaper for prepaid packages and thus they can save a lot of money. Operator Package Voice Call (RM / min) Same operator Value First Maxis Hotlink Youth Club DG 30 DiGi DiGi Campus 0.20 0.15 (Free after usage of RM 2) 0.20 0.15 0.10 0.01 (Free SMS to 11 numbers on the same network) 0.10 0.06 0.18 0.12 Other operator 0.20 0.15 Same operator 0.18 0.01 SMS (RM) Other operator 0.20 0.05

*All call rates are based on 30 seconds block Table 4.2 Comparison for voice call rates and SMS rates between prepaid and postpaid packages of Maxis and DiGi (http://www.maxis.com.my)(http://www.digi.com.my)

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4.2 FACTORS LEADING TO ENGAGEMENT OF MAXIS AND DIGI AMONG RESPONDENTS IN TARC PENANG 4.2.1 Opinion about the Customer Service by Maxis or DiGi From Section 3.2.1, the customer service provided by Maxis and DiGi is considered quite well by the respondents. However, customer service provided by Maxis is better than DiGi. This is because the customer service system of DiGi is always down. It makes the user cannot get the help on time if there is any problem happens. It will make customers lose confidence on the customer service provided by DiGi. 4.2.2 The functions provided by Maxis and DiGi 4.2.3 The charges by Maxis and DiGi Based on the data collected in Section 3.2.2 and 3.2.3, it can be concluded that most of the respondents are not so sure whether the functions and the charges are the same. They do not have enough information about other functions and charges by Maxis or DiGi. They do not have a proper channel to obtain detail information about Maxis and DiGi. Besides, they also not put much attention about the latest functions and charges by other communication service provider. Therefore, they do not know the difference and hard to make comparison between their own communication service provider and other communication service provider.

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4.3 THE POPULARITY OF DIGI AND MAXIS AMONG RESPONDENTS IN TARC PENANG 4.3.1 Types of Service Often Used In Section 3.3.1, it can be said that most respondents choose the SMS service as type of service often used by them. This is because the rate charged for SMS is much cheaper than other services. Students have limited budget on the usage of hand phone credits. In addition, SMS is convenient to use under certain situations in college like convocation. It may be not so convenient to answer call or make a call when there is a need to be silent.SMS will be the best choice to contact with others. Besides that, by using SMS, students can keep a record of their conversation with friends; it may be helpful if they want to refer back some important things. 4.3.2 Sources to Get Information about the Communication Service Provider In Section 3.3.2, it can be said that more respondents choose friends as the source to get information about the communication service provider. This is because students spend most time with their friends in college. Besides discussing about their academic, they will also exchange information about communication service provider. From there, they will know the latest information about Maxis or DiGi. That is why, the word of mouth is very important in spreading news regarding the service provider In contrary, brochure is the source that least number of TARC students chooses as the source of information. The reason is that the contents in brochure may be cannot fully understood by the students. In addition, normally brochure only available at the Maxis centers and DiGi centers. It is rarely the students will go to take the brochure from there.

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4.3.3 Methods to pay bills for Postpaid Package From Section 3.3.3, it can be said that most respondents like to pay their bills at the post office. The reason is that paying bill at post office is more secure compared to other methods. This is because we can make sure we already paid the bill and the money is received by the people in charge. In contrast, if pay through internet, it normally require credit card to make the payment. Students normally do not have the credit card. So, it is hard to make the necessary payment. 4.3.4 Methods used to Pay Bill for Prepaid Package In section 3.3.4, it can be said that slightly more respondents of prepaid package are using the direct reload as the method to pay their bills. This is because direct reload is easier and it is the fastest way to reload their credit. It can save time as they do not need to key-in the PIN code in reload card if they buy the reload card from shop. Besides that, there are also some students who register as Maxis or DiGi dealer who are responsible for reloading credit. They can help their friends reload directly.

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4.4 COMPARISON OF STRENGTHS AND WEAKNESSES BETWEEN MAXIS AND DIGI 4.4.1 Comparison of attractiveness of advertisement by Maxis and DiGi It can be concluded that from Section 3.4.1, slightly more respondents think that the DiGis advertisement is more attractive than Maxis. This is because Maxiss advertisement is simple and not so creative as the DiGis advertisement. The idea of the DiGis advertisement is very special and its contents are delivered in a creative way. Thus, the advertisements make respondents have a deep and good impression about them. So, they choose advertisement for Digi is more attractive than Maxis advertisements. 4.4.2 Factors that lead to choices of Maxis or DiGi as communication service provider In Section 3.4.2, it can be concluded that there are same number of respondents who choose influence of friends and family, package offers lower charge for SMS and calls as factors for them to use DiGi. There are obvious differences on the percentage of respondents in choosing the four available factors as reasons for choosing Maxis as their communication service provider. For Maxis, most of them choose the influence of friends and family as their reason for choosing Maxis as their communication service provider. Maxis Communications Berhad is a leading mobile phone service provider in Malaysia This statement quoted from Wikipedia shows that Maxis has gained a large market share that makes it the leading communication service provider in this industry. That is the reason why most of the friends and family members of the respondents using Maxis and thus influence them to use Maxis also. For DiGi, most of the respondents are influenced by many factors that cause them to choose DiGi as their communication service provider.

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4.4.3 Weaknesses of the Communication Service Provider It can be concluded from Section 3.4.3 that respondents of Maxis face more problems regarding the unavailability of centers in many places whereas more respondents of DiGi face low coverage problems. For Maxis, the Maxis centre is normally only available in certain places. It makes it hard to obtain services when they are needed. Customers will not be able to solve the problems on-time. For DiGi, due to the low coverage problem, people cannot make a call or SMS when they are in emergencies. This will make people frustrated towards the service and there will be high chances for them to change their communication service provider to competitors. Thus, DiGi will face the problem of hard to maintain customer loyalty. I use DiGi to call people sometimes and it is more likely to enter the persons voice mail. After that, when I asked him, he said that his phone is not facing any problem. Besides that, DiGi often face a lot of low coverage problems Quote from http://forum.lowyat.net/topic/692009/+20

4.4.4 Loyalty towards the Communication Service Provider From Section 3.4.4, more respondents will change their service provider because of the weaknesses they face. This happens because customers nowadays are price sensitive and demand for better service. There are many telecommunication providers in Malaysia, such as U-Mobile, Celcom and XOX who are competing with each other. Thus, consumers will change their communication service provider to others if they find that the service provided is not as good as the others or when it cannot satisfy their needs. Both communication service providers will face the same problem that is hard to maintain customer loyalty.

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5. RECOMMENDATIONS

5.1 Improve the prices of Postpaid and Prepaid packages From section 4.1.3,we found that most of the respondents prefer prepaid package rather than postpaid package. In order to encourage users to use postpaid package, we recommend that Maxis can lower the access fee from RM 50 to RM 30, so that it is able to attract new customers and able to compete with competitors such as DiGi and Celcom. However, in term of call per minute, we recommend that Maxis change the SMS rate from 15 cents to 10 cents to other operators and maintain the call rates 12 cents to same operator and 18 cents to other operators. In this case, we hope that it can encourage our respondents to use postpaid plan as the lower rates for SMS will attract new customers to sign up for postpaid package. From section 4.1.4,we found that there is a limit of less than RM 50 that the respondents spent on their hand phone credits.So,for prepaid plan, we suggest that Maxis offer call rate which is 10 cents per minute in which the call rates are lower than Hotlink Youth Club. This is because currently the lowest rate that had been offered by DiGi is also 10 cents per minute to same operator. Therefore, in order to compete with DiGi, Maxis have to lower down their call rates. Besides that, Maxis can also lower their rates in term of calls to other operators from 15 cents per minute to 12 cents per minute. This is because most of the operators are not likely to lower their rates to other operators; therefore it will help Maxis gain competitive advantage by doing so. In this case, Maxis can take over the lowest rate status which held by DiGi and can offer package by name it Lowest Rates Everyday which benefited the users.

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5.2 Measures to improve the coverage problem The line coverage of a communication service provider is a very important factor that will affect the choices of consumers when they want to choose for telecommunication provider. Based on section 4.4.3, we found that most of the DiGi users think that the low coverage problem is the weakness of DiGi. Therefore, DiGi should spend more money on their infrastructure in order to improve the line coverage of their company. The company should invest more capital to set up more transceivers in different areas to improve the wireless radio link between the cell tower and the mobile phone of users. By setting up more transceivers, the company will be able to attract more customers to use their service and thus gain a large market share. Large market share means that there will be more profit generated to the company. For the current customers, they will be more satisfied with the service provided and they will continue to support DiGi in the future. Thus, a win-win situation will be created by improving the line coverage.

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5.3 Measures to retain customer loyalty Retaining the customers loyalty is a great challenge for both Maxis and DiGi. It is hard to retain the customer loyalty due the stiff competition from several aspects in the service provided by different communication service provider. From section 4.4.4, most of the respondents state that they will change their communication service provider if others are better than the current communication service provider used by them. Thus, we would like to suggest a few ways to retain the customer loyalty. First of all, the company should offer some attractive bonus for the users as they use the service for long period. The longer the period the greater the bonus offered. The bonus can be in the form of points offered, where the points are redeemable for some vouchers or cash rebate. This is applicable to both prepaid nd postpaid users. Besides, it can also encourage users to use postpaid package. Secondly, the company can give special discounts for the prepaid and postpaid users who use the service more than 3 years. The special discounts can be used when the users want to buy new hand phone. Thirdly, during the anniversary of the assessment of company, Maxis and DiGi can give the users discounts in call rates and SMS rates. The longer the user use the service, the higher the discounts offered by the company. By doing so, customers will feel that it is worthwhile to support Maxis or DiGi for so many years and they may also promote Maxis or DiGi to other people. Thus, Maxis and DiGi will be able to gain new customers and earn more profit.

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5.4 Measures to improve customer service Nowadays, most customers prefer to purchase quality goods in lower price. Besides that, customer also request for good customer service. Thus, good customer service is an important criterion in a business to increase its market share. Based on section 4.2.1, we found that customer service provided by both communication service providers is still not up to the standard to satisfy all customers. Thus, we suggest that Maxis and DiGi should train their employees to equip them with the knowledge to solve the customers problems. The employee should improve their skills to solve customer problems efficiently and effectively after the training. Based on section 4.4.3, we found that availability of Maxis centre is not enough. They feel the Maxis centre cannot be found when they need the Maxis centres service. This situation causes the users not to be able to solve their problems at their needed time. It directly affected the performance of customer service provided by Maxis. Consequently, Maxis had lost customers loyalty. This is because we can only solve our problems regarding Maxis only at Maxis centers, it is very troublesome, and so Maxis should permit Hotlink shop lots to also provide Maxis service. Besides that, Maxis can also introduce REAL-TIME chat with the customer service. It is a service that enables users to chat with the customer service representatives regarding the queries about Maxis-related product and service available. It can be an instant messenger like Yahoo Messenger that allows user to chat with the person in charge in a faster way to answer the queries they have. In sum, the improvements will satisfy customers with the service provided and they will continue to support Maxis and DiGi.

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5.5 Measures to improve the advertisement From the section 4.4.1, we found that the advertisement of DiGi is more attractive compared to Maxis. DiGi is using the Yellow Man as their companys mascot in the advertisement. The Yellow Man is very funny, interesting and attractive to the consumers especially for teenagers or young people. This shows that DiGi is more focusing on young people market and it is a very successful advertisement. Thus, we will suggest DiGi to continue their advertising campaign by using Yellow Man in different apparent so that the consumers will not get bored by the same look of the mascot. By doing so, DiGi will be able to continue attracting young people to use their service. From the research, it shows that Maxis is not able to fight with the DiGis advertisement. However, since DiGi is focusing on young people market, Maxis can try to focus on family as their target market. We recommend that maxis should try to create the advertisement based on the family market by showing the importance of communication between family members. They should offer more family packages with lower rates for voice call and SMS to attract more consumers to sign up for the packages. Once the parents are using Maxis as their communication service provider, normally they will try to convince their children to use the same communication provider also as there will be cheaper rates offered by family packages. Nowadays, even children below 12 years old already started to use hand phone. So, for sure the parents will help them to choose the communication service provider. Parents will sure consider the postpaid package for family as they can control their children from simply make a call and they will also know whom their children are contacted with. Thus, if Maxis focus on family market, there is a high chance for them to attract both adult and young people to use their service.

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6. BIBLIOGRAPHY 1. Aspire2oo6,.2008. Digi problem Time to change?. [Internet]. Available at: http://forum.lowyat.net/topic/692009/+20 [Accessed 25 July 2009] 2. DiGi,. 2009. The DiGi Postpaid Plan. [Internet]. Available at: http://digi.com.my/postpaid/digi_postpaid/call_plans/post_call_iheart.do [Accessed 25 July 2009] 3. Maxis., 2009. The Value First Postpaid Plan. [Internet]. Available at: http://www.maxis.com.my/personal/mobile/plan_pricing/value_plan_30.asp?iStruct=0:1:0:0/ [Accessed 25 July 2009] 4. DG30 Postpaid Plan Brochure

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7. APPENDIX Appendix A

QUESTIONAIRE TO INVESTIGATE ABOUT THE COMMUNICATION SERVICE PROVIDER DIGI AND MAXIS
Year: 1 / 2 Gender: M/F

1. Which communication service provider are you using now? Maxis ( 21 ) DiGi ( 9 )

2. How long have you been using the communication service provider? < 1 year ( 2 ) 1-4 years ( 13 ) > 5 years ( 15 )

3. Which package are you using now? Postpaid ( 10 ) Prepaid ( 19 ) Both ( 1 )

4. How much do you spend on your hand phone bill per month? < RM50 ( 18 ) RM51-RM99 ( 10 ) > RM100 ( 2 )

5. Based on Question 1, what is your opinion about the customer service provided? Good M (9) D (3) Fair M (12) D(6) Bad M(0) D(0)

6. Are the functions provided by both the company almost the same? Yes ( 5 ) No ( 12 ) Not sure ( 13 )

7. The charges for the service by Maxis and Digi is almost the same. Do you agree? Yes ( 2 ) No ( 4 ) Not sure ( 7 )

8. Which type of service do you often use? SMS ( 22 ) Voice Call ( 8 ) MMS ( 0 )

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9. Where do you often get information about the communication service provider? (Only 1 choice) TV Advertisement Online Advertisement Friends Brochure Magazines/Newspapers Advertisements Others ( 8 ) ( 2 ) ( 14 ) ( 1 ) ( 4 ) ( 1 ) Parents

10. Which method do you prefer to pay your bills? (Postpaid package) Pay bills at the post office Payment through the internet Others ( 6 ) ( 2 ) ( 3 ) ______________________

11. Which method do you prefer to reload? (Prepaid package) Buy the reload card from shop Direct reload Others ( 9 ) ( 11 ) ( 0 ) ______________________

12. Which of the communication service providers advertisement is more attractive? Maxis ( 13 ) Digi ( 17 )

13. Based on Question 1, what is the factor that made you choose the communication service provider above? (Only 1 choice) D M Influence of friends and family Package offers lower charge for SMS and calls Have been using it for a long time Too lazy to change ( 3 ) ( 3 ) ( 3 ) ( 0 ) ( 0 ) ( 2 ) ( 6 ) ( 3 )

14. What weaknesses of the communication service provider are you facing now? (Only 1 choice) M Centre is not available in every place Low coverage Bill amount is not up-to-date when checked 37 | P a g e ( 11 ) ( 4 ) ( 0 ) D ( 1 ) ( 6 ) ( 1 )

Price charge to different service provider is expensive ( 6 ) Others ( 0 )

( 1 ) ( 0 )

15. Will you change your service provider because of their weaknesses? Yes ( 17 ) No ( 13 )

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Appendix B

QUESTIONAIRE TO INVESTIGATE ABOUT THE COMMUNICATION SERVICE PROVIDER DIGI AND MAXIS
Year: 1 / 2 Gender: M/F

1. Which communication service provider are you using now? Maxis ( ) Digi ( )

2. How long have you been using the communication service provider? < 1 year ( ) 1-4 years ( ) > 5 years ( )

3. Which package are you using now? Postpaid ( ) Prepaid ( ) Both ( )

4. How much do you spend on your hand phone bill per month? < RM50 ( ) RM51-RM99 ( ) > RM100 ( )

5. Based on Question 1, what is your opinion about the customer service provided? Good ( ) Fair ( ) Bad ( )

6. Are the functions provided by both the company almost the same? Yes ( ) No ( ) Not sure ( )

7. The charges for the service by Maxis and Digi is almost the same. Do you agree? Yes ( ) No ( ) Not sure ( )

8. Which type of service do you often use? SMS ( ) Voice Call ( ) MMS ( )

9. Where do you often get information about the communication service provider? (Only 1 choice) TV Advertisement Online Advertisement Friends Brochure Magazines/Newspapers Advertisements 39 | P a g e ( ( ( ( ( ) ) ) ) )

Others

) _________________

10. Which method do you prefer to pay your bills? (Postpaid package) Pay bills at the post office Payment through the internet Others ( ( ( ) ) ) ______________________

11. Which method do you prefer to reload? (Prepaid package) Buy the reload card from shop Direct reload Others ( ( ( ) ) ) ______________________

12. Which of the communication service providers advertisement is more attractive? Maxis ( ) DiGi ( )

13. Based on Question 1, what is the factor that made you choose the communication service provider above? (Only 1 choice) Influence of friends and family Package offers lower charge for SMS and calls Have been using it for a long time Too lazy to change ( ( ( ( ) ) ) )

14. What weaknesses of the communication service provider are you facing now? (Only 1 choice) Centre is not available in every place Low coverage Bill amount is not up-to-date when checked ( ( ( ) ) ) ) )_______________

Price charge to different service provider is expensive ( Others (

15. Will you change your service provider because of their weaknesses? Yes ( ) No ( )

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Appendix C Scale: Good/Yes=3 points Fair/Not sure=2 points Bad/No=1 point

GOOD MAXIS DIGI 9 * 3 = 27 3*3=9

FAIR 12 * 2 = 24 6 * 2 = 12

BAD 0*1=0 0*1=0

YES

NOT SURE

NO

The functions provided by MAXIS and DIGI are almost the same The charges for the service by MAXIS and DIGI are almost the same

5*3= 15 2*3=6

13 * 2 = 26 7 * 2 = 14

12 * 1 = 12 21 * 1 = 21

ITEM S 1

STATEMENTS

MEAN VALUE

The opinion about the service provider: MAXIS DIGI 51/21 = 2.43 21/9 = 2.33

2 3

The functions provided by MAXIS and DIGI are almost the same 53/30 = 1.77 The charges for the service by MAXIS and DIGI are almost the same 41/30 = 1.37

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Appendix D Communications Service Provider(2009) Accessed at http://en.wikipedia.org/wiki/Communications_Service_Provider on 6 June 2009 A Communications Service Provider or CSP is a company that transports information electronically. The term encompasses public and private companies in the wireline, wireless, Internet, cable, satellite, and managed services businesses. The market in which a communication service provider specializes is often a function of the industry served. These industries can be divided into three categories: telecommunications, entertainment and media, and Internet/Web services. Some communication service providers have branched into multiple areas. Others provide communication services across all major categories. DiGi Telecommunications (2009)Accesed at http://en.wikipedia.org/wiki/DiGi_Telecommunications on 6 June 2009 DiGi Telecommunications (simplified Chinese: is a mobile service provider in Malaysia. It is owned in majority by Telenor ASA of Norway with 49%. On 24 May 1995 DiGi became the first telco in Malaysia to launch and operate a fully digital cellular network. They were also the first to offer GPRS (2.5G) and later EDGE (2.75G) in Malaysia in 14 May 2004. DiGi primarily uses the GSM1800 band with the network code of 50216. It uses the native dialling prefix identifier of "010", "016", "0143", "0146" and "0149", DiGi Telecommunications Sdn. Bhd. provides a variety of mobile communication services. These services include voice under their prepaid plans & postpaid plans, SMS, data plans and services, international roaming, international calling card and WAP services. DiGi,.2006.Annual report 2006. [Online].Available at http://www.digi.com.my /aboutdigi/investor/image/DigiAnnRep_2006.pdf [Accessed 7 June 2009]

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