LIST OF PESTEL CHARACTERISTICS

Political TM was supported by government Government give subsidy of RM2.4 billion for HSBB project Government limit level of playing field for foreign players in the industry

Economy

Malaysian GDP growth increase to 4.7% in the first quarter 2012 Consumers and business confidence increase as GDP is estimated to grow for third quarter 2012 Internet & Multimedia revenue grew by 24.3% YoY
Citizens are shifting towards knowledge-based nation

Social

Broadband penetration in Malaysia is growing Booming demand for higher bandwidth broadband packages

LIST OF PESTEL CHARACTERISTICS

Technology Telecommunication industry is saturated with wired and wireless telecommunication technology Speedy internet access by utilizing fiber optic technology to transfer data Wireless data communication technology was implemented d in Malaysia includes 3G services and WIMAX

Environmental Land for installation of network. Damages the environments natural habit due to installation of network

Legal

Environmental regulations Competitive regulations

Key PESTEL factors impacting on telecommunication industry

Identify as OPPORTUNITY THREATS

Identified as key factor

POLITICAL Supported by government Subsidy from government Limitation level of playing field for foreign players in the industry
ECONOMIC National GDP growth Consumers and business confidence index Growth of Internet & Multimedia

X X X

X X

Key PESTEL factors impacting on telecommunication industry

Identify as OPPORTUNITY THREATS

Identified as key factor

SOCIAL Citizens shifting towards knowledge-based nation Growing broadband market Booming demand for higher bandwidth broadband TECHNOLOGY Telecommunication industry is saturated with wired and wireless telecommunication technology Speedy internet access through fiber optic technology Wireless data communication technology such as 3G services and WIMAX

X X X

X
X

Key PESTEL factors impacting on telecommunication industry

Identify as
OPPORTUNITY THREATS

Identified as key factor

ENVIRONMENT Land for installation of network. Damages the environments natural habit due to installation of network LEGAL Environmental regulations Competitive regulations

X X

X X

Threats of New Entrants

Regulation and policy by government. Financial resources which involve huge capital

Determinants of Supplier Power

Require to invest in submarine fiber optic cable Buyer tie to particular suppliers

Degree of Rivalry
- Must able to differentiate its product compare to other competitors - Popularity of brand also will make the product differentiation even the performance is just equal

Determinants of Buyer Power - Customers demand

for high speed broadband and after sale services

Substitute Products - Consumers demand for

quality and high speed broadband services

Five Force Factors as related to telecommunication industry Threats of New Entrants

1. Regulation and policy by government. 2. Financial resources which involve huge capital

Implications for the industry

Link to selected macroenvironmental factor

Only few competitors will able to enter in this industry due to the regulation by the government and huge capital

The government limits the level of playing field for foreign players in the industry. The countrys major telecom players, Maxis, and Celcom won the bid together with TT DotCom (subsidiary of Time Dot Com) and MiTV Corp for the 3G license.

Degree of Rivalry
1. High speed and quality of broadband services 2. Wide coverage area Must be able to differentiate their product compare to other competitors for reach large customers Most of consumers will probably think of TMNet Streamyx when they would like to subscribe a broadband service due to the popularity of the brand name which makes consumers feels more reliable

Five Force Factors as related to telecommunication industry Determinants of Buyer Power

1. Increasing competitors for internet services provider 2. Customers able to forces down prices

Implications for the industry

Link to selected macroenvironmental factor

Consumers can enjoy the lower price broadband service, and become more powerful due to the competition among the service providers.

TM provide UNIFI services for surfing internet which is the fastest speed for internet provider nowadays

Substitute Products
1. Consumers demand for quality and high speed broadband services New entrants must provide substitute product for consumers in lower price or better performance than the existing Celcom, Maxis and P1 Wimax provide package that is lower price and suitable for student finance condition

Determinants of Supplier Power

1. Require to invest in submarine fiber optic cable 2. Buyer tie to particular suppliers High competitive environment causes exist entrants need to invest in high modernization technologies to enable the company to support and compete in this industry. Tm Net is set to get a High Speed Broadband (HSBB) internet services that allowing speedy internet access by utilizing fiber optic technology to transfer data.