Maxis Berhad | Annual Report 2012

Maxis Berhad // Annual Report 2012 20 Five years ago, our non-voice business contributed a fourth of our overall mobile revenues. Today, it makes up for nearly half, at around 46%. Our success has been largely built around our robust ecosystem made up of strong partnerships and alliances with large international Internet-based players and local content developers, a strong suite of globally contemporary products, the roll-out of large HSPA data networks covering 82% of the population, data friendly tariff packages and the best range of smart devices in the market. As a result, 7.8 million of our subscribers use data in one form or another. This year alone, we introduced ‘Loker’ (individual cloud storage), ‘ebooks’ (digital books) and a host of exclusive ‘Maxis-only’ content. Our Maxis content portal ‘MyLaunchPad’ continues to gain popularity in the Malaysian website space, next only to online banking websites. During the year, we also broadened our relationships with Enterprise and SME customers to help them improve productivity and efficiency of their businesses through customised Business Mobility Solutions and Built for SME solutions. We enhanced our client servicing capabilities, injecting fresh skills to address business ‘verticals’. We have also reinforced our business support services to gain a more meaningful share of the government market. STRATEGIC INVESTMENTS FOR THE FUTURE In 2012, we operationalised our pioneering active network sharing arrangement with U Mobile. This enabled us to monetise our network capacity and bring forward returns on our infrastructure investments. We also signed an infrastructure and spectrum sharing agreement with REDtone. Our overall capex spend in the year logically came down to RM803 million following three years of intensive 3G roll-out and network modernisation. Having been successfully allocated 2x10 MHz of 2600 MHz LTE spectrum, Maxis now has a healthy spread of high-speed data-compatible spectrum that enables us to optimise network architecture and places us in a strategically strong position for the future. Here again, our partnership with REDtone has given us access of up to 2x20 MHz of contiguous spectrum to build a formidable LTE network. Towards the end of the year, we took measured steps to roll-out our 4G LTE network in select areas. ON 1 JANUARY 2013, MAXIS BECAME THE FIRST TO COMMERCIALLY LAUNCH 4G LTE SERVICE IN MALAYSIA AND ON 8 FEBRUARY 2013, WE UNVEILED OUR FIRST 4G LTE SMARTPHONES. This signals the next threshold in consumer data experience in Malaysia and we are excited to be leading the charge once again as we did with 3G technology. WE WANT TO INSPIRE OUR CUSTOMERS TO DO MORE WITH THEIR LIVES, PROFESSIONS AND BUSINESSES. OUR DREAM IS TO OFFER THEM SEAMLESS CONTENT ANYTIME, ANYWHERE AND ACROSS ANY DEVICE. Looking back, we knew that network access would be critical. Our tie-ups with Telekom Malaysia Berhad and Tenaga Nasional Berhad, supplemented by our own fixed/mobile roll-outs, have ensured that Maxis now has the largest broadband footprint providing customers access wherever they are – at home, at work or on-the-go. We have over 600,000 postpaid wireless broadband customers, in addition to a growing number of prepaid wireless broadband users and 7.8 million customers who access high-speed Internet on their mobile devices. We saw encouraging take-up of our Home Wireless Internet product which offers a compelling alternative to ADSL- based fixed Internet access as well as being the best home Internet solution for an estimated 3.3 million households within our coverage that do not have access to fixed broadband. They now enjoy high-speed 3G Internet and many will soon have 4G LTE as well. We spent a larger part of 2011 and 2012 understanding our Home business, perfecting home installations, integrating product bundles, sourcing high-quality content and creating new distribution channels. During the year, the much anticipated content deal was struck with Astro Malaysia Holdings Berhad, Malaysia’s leading Pay TV service provider. Maxis customers can now view the finest TV channels and Video-On-Demand (“VOD”) content as well as customised ‘Maxis-only’ content at home and on-the-go. We have connected over 25,700 homes with Fibre Internet, paving the way for an exciting new range of IPTV, Broadband and ‘Life Services’ going forward. In the near future, we see the implementation of advanced Customer Relationship Management (“CRM”) software, supported by convergent billing and other IT support systems playing a major role in customising integrated services for our customers. WELL-MANAGED COMPANY, STAKEHOLDER FOCUSED While maintaining its leadership in the telecom world, Maxis continued to demonstrate all-round excellence as a corporation. The Maxis brand has become synonymous with Malaysia and was ranked among the top three in Malaysia’s Most Valuable Brands Awards 2012. The brand reputation rests on the back of a strong customer service legacy. This year, Maxis was declared the Best Managed Company in Malaysia by FinanceAsia’s Best Managed Companies poll conducted among bankers and investors across South East Asia. CEO’S STATEMENT Continued