Pracing Strategy – Maxis Essay

Maxis Communications Berhad (“Maxis”) today launched its first ever Hotlink prepaid one country, one rate plan which offers customers the best value for their money. With Hotlink’s 39 sen per minute anytime, anywhere in Malaysia calls, customers will enjoy one flat rate nationwide, which means savings of up to 68% for domestic calls. This value-added rate is available for calls made within the Maxis 012 and 017 network, and on Hotlink’s Talk plan. Customers on the Activ5 SMS plan will enjoy the lowest SMS rate of only 1 sen per SMS.

We are offering these great prices now because we are saying to our customers that we know what you want, we hear you and we deliver.

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“In fact, this Hotlink plan is about offering value to customers. You see, we are offering a holistic and complete package that is more than just about price. Sure, price is important but what is equally important is that with Hotlink, customers get access to the largest mobile community in Malaysia, enjoy greater coverage and experience the latest of what entertainment has to offer,” said Maxis Head, Channel Distribution and Customer Services, Mr Tan Lay Han.

It has always been our strategy to develop the Hotlink and Maxis base into a community that rewards and yields value for its customers. We do have the biggest community with over 6 million customers, and as such, probably half or two-thirds of your contacts are already within the network. Naturally, we provide you with the best rates within the 012 and 017 network to promote greater affinity within the community. The benefit to customers is that they can make more calls and send more SMS, and still enjoy great savings,” he added.

As of end 2004, Maxis has 6. 2 million customers of which 80% or 4. 76 million are prepaid users. The company has 41% share of the mobile telecommunications market. “Furthermore, customers enjoy broad coverage which includes GPRS with more than 3,500 base stations nationwide. They would enjoy greater coverage by year-end with some 4,500 stations. In fact, we plan to increase our capital expenditure by 40% to RM1. 4 billion this year on network investment. All these reiterate our commitment to build a first class network, consistent with our strategy of offering value to customers,” Tan added.

In line with the strategy, Maxis was the first in the industry to offer Caller Ringtones that allows customers to replace the standard ring tone with sound effects, song lyrics or a symphony, and myMaxis Music Zone, Asia’s first mood-sensitive mobile music portal which personalizes music content according to how customers feel. In addition to the access to a wider community, great domestic coverage and fun offerings, Hotlink customers are also connected worldwide with Maxis’ international roaming service to some 100 countries.

The company is also aggressively expanding its international roaming services this year. Although this one country, one rate offer is new to Hotlink, Maxis has been offering its nationwide one rate calls to postpaid consumers and enterprises since a few years ago. For example, customers in the P500 rate plan have been enjoying 20 sen per minute calls (peak) and 15 sen per minute calls (off-peak) on Maxis’ network since 2003. The postpaid one rate nationwide plans received a boost on Monday when Maxis launched its RM75 per month no access fee plan.

With this plan, customers enjoy talk time worth up to 500 minutes of calls, flat rate calls of 15 sen per minute and 5 sen per SMS within Maxis’ network, and free value-added services including GPRS registration. Supplementary line is now priced at only RM10 per month. To sign up for the Maxis postpaid and/ or Hotlink prepaid plans, please visit any Maxis Centres, Dealers or Maxis Authorised Service Agents (MASA) nationwide. For more information, please call 1-800-82-100 or log on to www. maxis. com. my or www. hotlink. com. my

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