Celcom To Announce New Mobile Plan, Is Price War Imminent?

zalman celcom

The gloves are slowly coming off, disruption in prepaid and postpaid market and the tidal of user shifts experienced by major operators, has gotten telco’s on the offensive, the big boys that is. Always slow to react and complacent, Celcom and Maxis have been accused to being reactive to consumer and market requirements rather than being proactive. The perils of being a megalith. Maxis’ recent quarterly result announcement showed a drop in user base despite showing increase in revenue. Digi is also experiencing stagnant growth due to their lack in 4G coverage, where the source of revenue will be for the next few years. However, Chief Operating Officer, Albern Murty has vowed to roll out more LTE stations by end of the year as the race for coverage kicks off. Signs of user migration has been evident, except that only acquisition are reported in the financial reports and not drop outs.

Why users migrate?

But the main factor for user migration is the offer of flashy cheap data and internet plans offered by their competitors, U Mobile – one analyst has observed is the main culprit in disrupting the mobile market with their clever offers. Giving free data for signup packages, and offering zero installments are luring customers to sign with the incumbent, Maxis has since followed suit. The Orange company has been inching up the charts as a serious number four contender, and is looking at expanding its 4G LTE coverage with additional 1000 base stations.

Malaysia’s mobile penetration is at saturation point, there are no hordes of new customers, the only way acquisition can take place is for migration from one telco to the other. And this can only happen if the data plans are really cheap, loyalty to an operator is in the past, consumers want good coverage, stability and affordability. Can we see this? Celcom has invited the media this week to announce its new data plan packages, the cellular company has been playing catching up, even during the recent Apple iPhone 6s launch, Celcom was the last to announce its package, probably waiting to study the other telco’s before putting out a deal better than Maxis and Digi’s, users are very discerning, Celcom needs to have a strong ace up its sleeves.

Prepaid users are still sore with the whole GST fiasco, and with rising cost and a tumultuous 2015, reduction in phone bills without caveats are always welcomed by the people. A price war will point to a mature industry keeping service providers on their toes which ensures customers getting the best in what the industry has to offer.

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