In 2009, U Mobile the fourth entrant into the mobile network only managed to occupy 1% of total user base in the country, today the telco has carved a significant portion of the market with 14% or 6.2 million subscribers. MCMC in its latest Industry Performance Report observed the success to its innovative product offerings and substantial promotional and marketing activities.
Recording a 2% growth in 2017 from 12% when the Top Two saw a decline in their user base, U Mobile is experiencing a fairy tale growth story with its rise in popularity in the mobile industry. Once regarded as a “mosquito” (not my words but by an individual working in the top three) U Mobile is now seen as a ‘disruptor with bite’ and often leave Maxis, Digi and Celcom in anxiety whenever a press conference is held to announce a new postpaid or prepaid plans. The turn around for U Mobile occurred after ST Telemedia from Singapore took a substantial stake in the telco and brought in a seasoned CEO to lead the team. Positioning U Mobile as a telco that does not need to play by the rules, Wong Heang Tuck went on the offensive with the blessing from his bosses and started democratising mobile plans, the strategy was simple, give customers what they want- lower price for mobile packages! Most of us who enjoy current rates for our plans, irrespective on which operator we are on can thank U Mobile for bringing about this change.
Over the last 10 years, the Malaysian mobile market has evolved and subscriptions have increased from 27.71 million in 2008 to 42.34 million in 2017. Maxis has predominantly led subscriptions market share of 40% in 2008. While, Celcom and Digi at 32% and 25% respectively. It is observed that Maxis and Celcom market share has been declining towards 2017 as other competitors like are catching up. As for Digi, its market share has been consistent throughout the past 10 years and currently holds subscriptions market share of 27%, followed by Maxis (26%) and Celcom (22%).
U Mobile base are predominantly prepaid which provides very low yield, but the operator has embarked on now applying its wining strategy on the postpaid sector with aggressive acquisitions campaigns. With talks of IPO and more funds, things are shaping up nicely which could mean more anxiety for the other boys.
