Managing 3G growth in Malaysia

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The Malaysian mobile market is maturing rapidly, with subscribers showing increased interest in high-bandwidth services such as mobile TV. Against this background, operator Maxis is set to launch a WCMDA network that will be established and run by Ericsson.

July 01, 2005

Out of a population of 24 million, Malaysia boasts a mobile penetration rate of 52 percent; the second-highest in Asia. As the market matures, uptake of data services is growing, with SMS-based applications already making a significant contribution to operator revenue.

Now, MMS-based applications are gaining popularity too, with peer-to-peer applications and sports content the most popular choices among subscribers. Mobile TV is also taking off, with Malaysians able to watch live programs, pre-recorded shows, music clips and movie trailers on their handsets via EDGE technology.

Maxis was the first operator in Asia to introduce Ericsson's mobile music service, M-USE. The dedicated music service is part of the myMaxis portal and hosted by Ericsson. Hosting makes it easier for operators to bring services to market quickly while controlling capital and operational costs.

Operating on 2G (GPRS) as well as on 3G (WCDMA), the music service is accessible via Maxis SMS, WAP and internet portal. Ericsson takes overall responsibility for the music service, including Digital Rights Management (DRM) and platform development.

Under the terms of the agreement, Ericsson will be responsible for operating all 298 base stations in the network. Ericsson will also train Maxis employees in 3G operations and provide the operator with network consulting services to develop service-level agreements and key performance indicators.

Edward Ying, chief operating officer at Maxis, said the company chose Ericsson for its established 3G track record. "We wanted to do things right from the start," he said. "Working with Ericsson will help us deliver an efficient network when we launch our 3G service in the second half of the year."

In the meantime, Maxis is targeting mainly business users with a high-speed data card for laptops. Brought to market on April 19, the Maxis 3G Connect service makes Maxis the first Malaysian operator to launch a 3G service commercially. It expects 5000 to 10,000 users for the service by the end of 2005.

Ying told the Malaysian National News Agency that the long-term success of 3G in Malaysia would hinge on continued improvement in network performance, enhancements to 3G mobile phone design, the availability of compelling content, clear tariff schemes and attractive service packages.

The agreement with Ericsson will be key in helping Maxis achieve success in some of these areas. Ericsson has vast knowledge of 3G, having been a supplier to 35 of the 56 operators that have launched 3G services. Today, Ericsson manages networks that serve about 35 million subscribers worldwide.

Furthermore, Ericsson has won more than 40 managed-service contracts since 2002, and is recognized as having the most comprehensive service offering on the market. Daily network operation, managed capacity for efficient network expansion, hosting of applications and content management all form part of the offering.