Situation Analysis

Table of Contents

1.0 Problem Statement…………………………………………………………………………………..4-5

2.0 About the product…………………………………………………………………………………… 6-7

2.1 Product Classification……………………………………………………………………………7

2.2 Distribution (Starter pack)…………………………………………………………………….7

2.2.1 Online…………………………………………………………………………………………….7

2.3 Tune Talk Reload Places………………………………………………………………………7-9

2.4 Product Characteristics……………………………………………………………………….10

2.4.1 Pricing……………………………………………………………………………………………10-19

2.4.2 Services………………………………………………………………………………………….19-20

2.4.3 Packaging……………………………………………………………………………………….21

2.4.4 Validation……………………………………………………………………………………….21

2.4.5 Product Life Cycle…………………………………………………………………………..21

2.4.6 Brand Image and Implications………………………………………………………..22

2.4.7 Strengths………………………………………………………………………………………..22

2.4.8 Weakness……………………………………………………………………………………….22

2.4.9 Unique Selling Proposition……………………………………………………………..22

2.4.10 Current Tagline……………………………………………………………………………22

2.4.11 Positioning Statement………………………………………………………………….22

3.0 About the Company…………………………………………………………………………………23-24

3.1 History…………………………………………………………………………………………………24-25

3.1.1 Tune Talk……………………………………………………………………………………….24-25

3.1.2 Vision……………………………………………………………………………………………..25

3.1.3 Mission…………………………………………………………………………………………..25

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Situation Analysis

3.2 Reputation and Image…………………………………………………………………………25

3.3 Market Share & Product Sales history………………………………………………….25

3.4 Current Marketing Objective……………………………………………………………….25

4.0 The Consumer and Stakeholders……………………………………………………………..26-27

4.1 The Stakeholder…………………………………………………………………………………..27-32

4.2 Partners……………………………………………………………………………………………….33-34

4.3 Current Customers………………………………………………………………………………35

4.3.1 Demographics………………………………………………………………………………..35

4.3.2 Psychographics……………………………………………………………………………...35-36

4.4 Future Customers………………………………………………………………………………..36

5.0 Industry and Marketplace………………………………………………………………………..37-38

5.1 Telecommunications Industry – History & Definitions…………………………..38

5.2 Cellular Phone users……………………………………………………………………………..39

5.3 Prepaid Plans in ……………………………………………………………………..40

6.0 Competitive Situation Analysis…………………………………………………………………41-42

6.1 Direct Competitors……………………………………………………………………………….42

6.1.1 …………………………………………………………………………………………..42

6.1.2 Digi………………………………………………………………………………………………..43

6.1.3 Maxis……………………………………………………………………………………………..44

6.1.4 ………………………………………………………………………………………..45

6.2 Indirect Competitors…………………………………………………………………………46

6.2.1 TM………………………………………………………………………………………………….46-50

6.2.2 I Talk………………………………………………………………………………………………51-52

6.2.3 TM Calling Card……………………………………………………………………………..53

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Situation Analysis

6.2.4 AmBank NexG………………………………………………………………………………..53

7.0 SWOT Analysis………………………………………………………………………………………….54-55

7.1 Strength………………………………………………………………………………………………..55

7.2 Weakness……………………………………………………………………………………………..55

7.3 Opportunities……………………………………………………………………………………….55

7.4 Threats…………………………………………………………………………………………………55

8.0 Target Audience……………………………………………………………………………………….56-57

8.1 Demographics……………………………………………………………………………………..57

8.2 Psychographics…………………………………………………………………………………….57-58

9.0 Solution Analysis………………………………………………………………………………………59-60

9.1 Survey Analysis……………………………………………………………………………………..60-63

9.2 Interview Via Online (Tune Talk Live Chat)……………………………………………64

10.0 Precedent Studies…………………………………………………………………………………..65-66

10.1 Celcom……………………………………………………………………………………………….66-67

10.2 Maxis………………………………………………………………………………………………….68-69

10.3 Digi…………………………………………………………………………………………………….70-71

10.4 Tune Talk……………………………………………………………………………………………72

10.5 U Mobile…………………………………………………………………………………………….73

11.0 References………………………………………………………………………………………………74

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Problem Statement

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Situation Analysis

1.0 Problem Statement

Tune Talk is the newest mobile network operator that officially launched its commercial on 19th August 2009. It rolled out as a prepaid service with the prefix “010”. As the brand new prepaid in market, Tune Talk targets market with super calling rates and also incentives. It also targeted to reach 1 million subscribers within 1 year of operation. The main problem is that Tune Talk has very less advertisement compared to Its competitors like Digi, Maxis, Celcom and U Mobile. Moreover, people tend to go for calling cards rather than considering Tune Talk. Promotion should play a big role such as banner, television commercials, radio commercials, e-commerce website and exhibition booth in order to persuade more customers. It should be attractive and informative so that it attracts customers’attention.

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Situation Analysis

About The Product

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Situation Analysis

2.0 About the product

2.1 Product Classification

Telecommunication sector.

2.2 Distribution ( Starter Pack)

Tune talk can be found throughout Malaysia in any Mobile and Telecommunication

shops.

2.2.1 Online

Customers can reserve their Tune Talk number before collecting the sim from any

authorized dealer : www.tunetalk.com

2.3 Tune Talk Reload Places

There’s not all Tune Talk reload places are selling Tune Talk starter pack, but the reload

places are definitely more than the starter pack distribution places.

Physical Top Up Voucher Tune Talk Top Up vouchers are available in the following denominations and validity:

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Situation Analysis

Denomination Validity

RM 5 5 Days

RM 10 11 Days

RM 30 33 Days

RM 50 55 Days

E-Top Up

For hassle free Top Up, request for E-Top Up from selected Tune Talk authorized dealers. Your Top Up amount will be credited to your account immediately. No need to dial-in and manually enter the 16 digits PIN! Plus, you may Top Up in any of the following denominations:

Denomination Validity

RM 3 3 Days

RM 4 4 Days

RM 5 5 Days

RM 10 11 Days

RM 30 33 Days

RM 50 55 Days

RM 100 110 Days

RM 200 220 Days

RM 300 365 Days

Online Top Up on SelfCare

Just login to your secured online SelfCare account and use your credit card to get instant Top Up!

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Situation Analysis

Denomination Validity

RM 30 33 Days

RM 50 55 Days

Credit Transfer Request for Credit Transfer from your friends or family.

To transfer credit:

Dial *111# and press SEND Enter 3 for "Credit" Enter 2 for "Transfer" Enter your mobile PIN (the last four digits of your ICCID/Policy Insurance Number) Enter recipient's 10 digit Tune Talk number follow by * and the amount, 5 for RM5, 10 for RM10 or 30 for RM30. For example: 0105001234*5 and press SEND A transaction fee of RM0.50 will be charged to both sender and recipient. The validity of the transferred credit is as follow:

Denomination Validity

RM 5 2 Days

RM 10 3 Days

RM 30 9 Days

RM 50 15 Days

a) Online Banking : Cimb Clicks, Maybank2u.com, RHB bank, EON bank. b) ATM’s : All Cimb atm’s, Maybank atm’s, RHB bank atm’s, EON bank atm’s. c) Telco Stores : Most of the telco stores around Malaysia. d) Convinient Stores : All 7 eleven outlets, e-Pay terminals, 99 Speedmart.

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2.4 Product Characteristics

2.4.1 Pricing

Domestic rates

Enjoy our super low flat rates, 16sen* per minute and 5sen per SMS to anynumber, anywhere and at anytime.

International SMS & IDD

Tune Talk offers super low International call rates and our International SMS rate is only RM0.20 per message.

Country Region Country Code Fixed Line (RM) Mobile (RM)

Afghanistan Mid East 93 1.15 1.15

Albania Europe 355 2.05 2.05

Algeria Africa 213 2.05 2.05

Andora Africa 376 2.05 2.05

Angola Africa 244 2.05 2.05

Anguilla Americas 1264 2.05 2.05

Antigua & Barbuda Americas 1268 2.05 2.05

Argentina Americas 54 0.88 0.88

Armenia Asia Oceanic 374 2.05 2.05

Aruba Americas 297 2.05 2.05

Australia Asia Oceanic 61 0.16 0.79

Austria Europe 43 0.16 2.05

Azerbaijan Asia Oceanic 994 2.05 2.05

Azores Europe 351 3.58 3.58

Bahamas Americas 1242 2.05 2.05

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Situation Analysis

Bahrain Mid East 973 1.15 1.15

Bangladesh Asia Oceanic 880 0.15 0.15

Barbados Americas 1246 2.05 2.05

Belarus Europe 375 2.05 2.05

Belgium Europe 32 0.16 2.05

Belize Americas 501 2.05 2.05

Benin Africa 229 2.05 2.05

Bermuda Americas 1441 2.05 2.05

Bhutan Asia Oceanic 975 2.05 2.05

Bolivia Americas 591 2.05 2.05

Bosnia Herzegovina Europe 387 2.05 2.05

Botswana Africa 267 2.05 2.05

Brazil Americas 55 2.05 2.05

Brunei Asia Oceanic 673 0.16 0.34

Bulgaria Europe 359 2.05 2.05

Burkina Faso Africa 226 2.05 2.05

Burundi Africa 257 2.05 2.05

Cambodia Asia Oceanic 855 0.32 0.32

Cameroon Africa 237 2.05 2.05

Canada Americas 1 0.16 0.16

Cayman Island Americas 1345 2.05 2.05

Chad Africa 235 2.05 2.05

Chile Americas 56 2.05 2.05

China Asia Oceanic 86 0.15 0.25

Christmas Island Asia Oceanic 61891 2.05 2.05

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Situation Analysis

Colombia Americas 57 2.05 2.05

Comoros Island Africa 269 2.05 2.05

Congo Africa 242 2.05 2.05

Costa Rica Americas 506 2.05 2.05

Croatia Europe 385 2.05 2.05

Cuba Americas 53 3.58 3.58

Cyprus Asia Oceanic 357 2.05 2.05

Czech Republic Europe 420 2.05 2.05

Denmark Europe 45 0.16 2.05

Diego Garcia Europe 246 3.58 3.58

Djibouti Africa 253 2.05 2.05

Dominica Americas 1767 2.05 2.05

Dominican Republic Americas 1809 2.05 2.05

East Timor Asia Oceanic 670 3.95 3.95

Ecuador Americas 593 2.05 2.05

Egypt Africa 20 2.05 2.05

El Salvador Americas 503 2.05 2.05

Equatorial Guinea Africa 240 2.05 2.05

Eritrea Africa 291 2.05 2.05

Estonia Europe 372 2.05 2.05

Ethiopia Africa 251 2.05 2.05

Falkland Island Americas 500 2.05 2.05

Fiji Asia Oceanic 679 2.05 2.05

Finland Europe 358 0.18 2.05

France Europe 33 0.16 0.79

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Situation Analysis

French Guiana Americas 594 2.05 2.05

French Polynesia Asia Oceanic 689 2.05 2.05

Gabon Africa 241 2.05 2.05

Gambia Africa 220 2.05 2.05

Georgia Asia Oceanic 995 2.05 2.05

Germany Europe 49 0.16 0.83

Ghana Africa 233 2.05 2.05

Gibraltar Europe 350 2.05 2.05

Greece Europe 30 0.16 2.05

Greenland Americas 299 2.05 2.05

Grenada Americas 1473 2.05 2.05

Guadeloupe Americas 590 2.05 2.05

Guam Asia Oceanic 1671 0.88 0.88

Guatemala Americas 502 2.05 2.05

Guinea Bissau Africa 245 3.58 3.58

Guinea Republic Africa 224 2.05 2.05

Guyana Americas 592 2.05 2.05

Haiti Americas 509 2.05 2.05

Honduras Americas 504 2.05 2.05

Hong Kong Asia Oceanic 852 0.15 0.25

Hungary Europe 36 2.05 2.05

Iceland Europe 354 0.16 2.05

India Asia Oceanic 91 0.14 0.14

Indonesia Asia Oceanic 62 0.23 0.30

Indonesia (Batam) Asia Oceanic 62778 2.80 2.80

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Situation Analysis

Iran Mid East 98 1.15 1.15

Iraq Mid East 964 1.15 1.15

Ireland Europe 353 0.16 2.05

Israel Mid East 972 2.05 2.05

Italy Europe 39 0.16 0.83

Ivory Coast Africa 225 2.05 2.05

Jamaica Americas 1876 2.05 2.05

Japan Asia Oceanic 81 0.16 1.70

Jordan Mid East 962 1.15 1.15

Kazakhstan Asia Oceanic 7 2.05 2.05

Kenya Africa 254 2.05 2.05

Korea North Asia Oceanic 850 3.58 3.58

Korea South Asia Oceanic 82 0.16 0.34

Kuwait Mid East 965 1.15 1.15

Kyrgystan Asia Oceanic 996 2.05 2.05

Laos Asia Oceanic 856 0.79 0.79

Latvia Europe 371 2.05 2.05

Lebanon Mid East 961 1.15 1.15

Lesotho Africa 266 2.05 2.05

Liberia Africa 231 2.05 2.05

Libya Africa 218 2.05 2.05

Lithuania Europe 370 2.05 2.05

Luxembourg Europe 352 0.16 2.05

Macau Asia Oceanic 853 0.18 0.34

Macedonia Europe 389 2.05 2.05

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Situation Analysis

Madagascar Africa 261 2.05 2.05

Madeira Europe 351 3.58 3.58

Malawi Africa 265 2.05 2.05

Maldives Asia Oceanic 960 2.05 2.05

Mali Africa 223 2.05 2.05

Malta Europe 356 2.05 2.05

Martinique (French Americas 596 2.05 2.05 Antilles)

Mauritius Africa 230 1.15 1.15

Mayotte Africa 269 2.05 2.05

Mexico Americas 52 2.05 2.05

Moldova Europe 373 2.05 2.05

Monaco Europe 377 2.05 2.05

Mongolia Asia Oceanic 976 2.05 2.05

Montserrat Americas 1664 2.05 2.05

Morocco Africa 212 2.05 2.05

Mozambique Africa 258 2.05 2.05

Myanmar Asia Oceanic 95 0.88 0.88

Nambia Africa 264 2.05 2.05

Nepal Asia Oceanic 977 0.49 0.49

Netherlands Europe 31 0.16 2.05

Netherlands Antilles Americas 599 2.05 2.05

New Caledonia Asia Oceanic 687 2.05 2.05

New Zealand Asia Oceanic 64 0.16 0.88

Nicaragua Americas 505 2.05 2.05

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Situation Analysis

Niger Africa 227 2.05 2.05

Nigeria Africa 234 1.15 1.15

Niue Island Asia Oceanic 683 3.58 3.58

Norfolk Island Asia Oceanic 6723 3.58 3.58

Norway Europe 47 0.16 0.83

Oman Mid East 968 1.15 1.15

Pakistan Asia Oceanic 92 0.36 0.36

Palestine Mid East 970 2.05 2.05

Panama Americas 507 2.05 2.05

Papua New Guinea Asia Oceanic 675 2.05 2.05

Paraguay Americas 595 2.05 2.05

Peru Americas 51 2.05 2.05

Philippines Asia Oceanic 63 0.50 0.50

Poland Europe 48 2.05 2.05

Portugal Europe 351 2.05 2.05

Puerto Rico Americas 1787, 1939 0.88 0.88

Qatar Mid East 974 1.15 1.15

Romania Europe 40 2.05 2.05

Russia Europe 7 2.05 2.05

Rwanda Africa 250 2.05 2.05

Saipan Asia Oceanic 1670 0.88 0.88

Samoa (USA) Asia Oceanic 684 0.88 0.88

Samoa (Western) Asia Oceanic 685 2.05 2.05

San Marino Europe 378 2.05 2.05

Saudi Arabia Mid East 966 0.88 0.88

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Situation Analysis

Senegal Africa 221 2.05 2.05

Seychelles Africa 248 2.05 2.05

Sierra Leone Africa 232 2.05 2.05

Singapore Asia Oceanic 65 0.16 0.25

Slovak Republic Europe 421 2.05 2.05

Slovenia Europe 386 2.05 2.05

Somalia Africa 252 3.58 3.58

South Africa Africa 27 2.05 2.05

Spain Europe 34 0.16 0.83

Sri Lanka Asia Oceanic 94 0.39 0.39

St. Helena Others 290 3.58 3.58

St. Kitts Americas 1869 2.05 2.05

St. Lucia Americas 1758 2.05 2.05

St. Pierre & Miquelon Americas 508 2.05 2.05

St. Vincent & the Americas 1784 2.05 2.05 Grenadines

Sudan Africa 249 2.05 2.05

Suriname Americas 597 2.05 2.05

Swaziland Africa 268 2.05 2.05

Sweden Europe 46 0.16 2.05

Switzerland Europe 41 0.16 2.05

Syria Mid East 963 2.05 2.05

Taiwan Asia Oceanic 886 0.16 0.34

Tajikistan Asia Oceanic 992 2.05 2.05

Tanzania Africa 255 2.05 2.05

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Situation Analysis

Tatarstan Asia Oceanic 7513, 78432 3.58 3.58

Thailand Asia Oceanic 66 0.14 0.14

Togo Africa 228 2.05 2.05

Trinida & Tobago Americas 1868 2.05 2.05

Tunisia Africa 216 2.05 2.05

Turkey Europe 90 2.05 2.05

Turkmenistan Asia Oceanic 993 2.05 2.05

Turks & Caicos Island Americas 1649 2.05 2.05

Uganda Africa 256 2.05 2.05

Ukraine Europe 380 2.05 2.05

United Arab Emirates Mid East 971 0.88 0.88 (UAE)

United Kingdom Europe 44 0.16 0.80

4470, 4476, United Kingdom Europe 44845, 4487, 2.05 2.05 (Premium Services) 449

United States of Americas 1 0.16 0.16 America

Uruguay Americas 598 2.05 2.05

USA – Alaska Americas 1907 0.43 0.43

USA – Hawaii Americas 1808 0.43 0.43

Uzbekistan Asia Oceanic 998 1.15 1.15

Vatican City Europe 396698/379 2.05 2.05

Venezuela Americas 58 2.05 2.05

Vietnam Asia Oceanic 84 0.23 0.23

Virgin Island incl Tortola Americas 1284 2.05 2.05 (UK)

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Situation Analysis

Virgin Island (USA) Americas 1340 0.88 0.88

Yemen Mid East 967 1.15 1.15

Yugoslavia (Serbia) Europe 381 2.05 2.05

Zaire Africa 243 2.05 2.05

Zambia Africa 260 2.05 2.05

Zimbabwe Africa 263 2.05 2.05

2.4.2 Services

Tune Talk is the latest mobile prepaid service provider in Malaysia with NATIONWIDE coverage.

With Tune Talk, you automatically get

An opportunity to win one of the ten Free AirAsia E-Gift vouchers everyday Free RM100,000 Personal Accidental Insurance Coverage underwritten by Etiqa Option to change your number anytime Super low flat rates nationwide to any number, anytime And lots more!

To get you started, your SIM Pack is already preloaded with RM5 credit with 30 days validity for immediate usage!

In addition to voice call and SMS, you will also enjoy the following pre-activated services:

Features

Tune Talk is the latest mobile prepaid service provider in Malaysia with NATIONWIDE coverage.

With Tune Talk, you automatically get

An opportunity to win one of the ten Free AirAsia E-Gift vouchers everyday Free RM100,000 Personal Accidental Insurance Coverage underwritten by Etiqa

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Situation Analysis

Option to change your number anytime Super low flat rates nationwide to any number, anytime And lots more!

To get you started, your SIM Pack is already preloaded with RM5 credit with 30 days validity for immediate usage!

In addition to voice call and SMS, you will also enjoy the following pre-activated services: a) Call Waiting

Don't miss another call when you are engaged on the line. Your phone will beep to announce a second call and you may switch between the calls. b) CLIP (Caller Line Identification Presentation)

Know who is calling! This feature displays the caller's mobile number on your mobile phone screen. c) GPRS

Get increased connection speed when accessing WAP or the Internet while you are on the move. d) Multi Party Conferencing

Get everyone on the same line so that you don't have to repeat yourself on separate calls. This feature allows you to connect up to 5 parties. Domestic voice call charges apply for each line. e) International Direct Dial and SMS

Call or SMS anyone in the world with our everyday low rates. f) International Roaming

Use your mobile phone while you're traveling to other countries. Don't miss any calls. g) Voicemail

Let your free personal voicemail box record all your messages. You may also save messages for future references or forward to another Tune Talk voicemail box. Domestic voice call charges apply.

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Situation Analysis

2.4.3 Packaging

2.4.4 Validation

60 days from the day reloaded with any reload amount.

2.4.5 Product Life Cycle

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Situation Analysis

2.4.6 Brand Image and Implications

The Brand Tune Talk is not known widely by mobile users due to its marketing

advertising strategy. The advertising strategy is still weak and need to contend with

bigger competitors.

2.4.7 Strengths

- The cheapest rates for both SMS and calls.

- Reload available online, and in most telecommunication shops.

2.4.8 Weakness

- Lack of publicity – not all Malaysian is aware of the product, less on ground

promotional.

- Weak brand identity

2.4.9 Unique Selling Proposition

Tune talk is the country’s super low calling rates and exciting incentives. It has

number changing flexibility.

2.4.10 Current Tagline

Now we’re talking

2.4.11 Positioning Statement

Tune Talk was created based on research and findings of other mobile network

operators’ short messaging service (SMS) and calls rates. Telecommunication

market has come out with many plans to encourage customers to get a cheaper

and flat rate for calls and smses. So, now Tune Talk is one of the emerging mobile

network operator which is beneficial and competitive towards other mobile

network operators.

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Situation Analysis

About The Company

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Situation Analysis

3.0 About the Company

3.1 History

3.1.1 Tune Talk

Tune Talk Sdn. Bhd., the newest mobile operator in the country, officially launched its commercial service on 19 August 2009.

Tune Talk targets to serve the underserved segment of the market with super low calling rates and exciting incentives. Rolled out as a prepaid service with the prefix "010", Tune Talk offers a no-frills voice and short messaging service (SMS) package that meets the consumers' demand for a simple, value-for-money product with easy accessibility and widest distribution reach.

Tune Talk operates as a mobile virtual network operator (MVNO) riding on the extensive network of Celcom (Malaysia) Berhad. Tune Talk entered into an MVNO agreement with Celcom in December 2008.

Celcom controls the largest equity stake in Tune Talk with over 38% while another 35.7% is held by Tune Ventures Sdn Bhd, of which Fernandes and Dato' jointly hold a 70% stake. The remaining shares are held by Tune Strategic Investments Limited, and various individuals including Dato' Sri Kalimullah Hassan, Lim Kian Onn, Jason Lo, Gurtaj Singh Padda and Mark Lankester.

Tune Talk's collaboration with Celcom is a landmark partnership that sees the coming together of the country's premier telco and an MVNO that will revolutionize the mobile industry.

The birth of Tune Talk is the culmination of years of hard work. Upon its successful launch in Malaysia, Tune Talk is set to enter other Asean (Association of South East Asian Nations) countries to realize its aspiration of becoming the Asean MVNO.

Works are underway to enter into MVNO deals with network operators in , Indonesia, Thailand, , Myanmar and the between 2010 up to 2013 that will enable Tune Talk to deliver a better roaming proposition. Tune Talk subscribers are currently enjoying full roaming on the back of Celcom's existing roaming arrangements.

As an MVNO, Tune Talk's business model allows the company to focus on its product, marketing and customer service without the need to build and maintain a full cellular network. What this means is Tune Talk can keep its capital investments low and thus focusing on offering super low call rates and giving subscribers quality customer service.

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Situation Analysis

As a member of the , Tune Talk will combine a unique lifestyle offering along with sister companies Tune Money and .

Tune Talk is a licensed Network Service Provider and Application Service Provider with Numbering Block sanctioned by the Malaysian Communications and Multimedia Commission (MCMC).

3.1.2 Vision

To harness every evolution in mobile technology in the service of our customers and to lead the industry in delivering the latest and most exciting mobile services in Malaysia.

3.1.3 Mission

To provide cheapest mobile call rates and to make mobile fun and your way of life.

3.2 Reputation and Image

Tune Talk is the cheapest telecommunication service which has the low calling

rates for local and international calls. The customers get to know about Tune Talk

through paper and online advertisement. They are reaching 1 million subscribers

within 1 year of operation.

3.3 Market Share and Product Sales history

Private and Confidential (P&C)

3.4 Current Marketing Objective

Target market Objective:

To target a million subscriber within a year of operation.

Promotional Objective:

To target by boosting our distribution channels, adding more service features as well as more exciting promotions and deals.

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Situation Analysis

The Consumer & Stakeholders

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Situation Analysis

4.0 The Consumer & Stakeholders

4.1 The Stakeholder

4.1.1 Celcom holds the largest equity stake in Tune Talk with over 38%.

4.1.2 Tune Stategic Investments Limited.

4.1.3 Tune Ventures Sdn.Bhd holds 35.7%, of which Fernandez and Dato’

Kamaruddin Meranun jointly hold a 70% stake.

4.1.4

Jason Lo (CEO)

Jason Lo is a Malaysian music artist, music producer, DJ and entrepreneur. He is sometimes known by the nicknames "LO" and "J Lo. Lo was born in Kuching, Sarawak to a Chinese father and Irish mother. He was educated in Singapore and the United Kingdom. He graduated from the University of Hull with a BSc in Accounting, and then did an MBA in Finance at Webster Graduate School in London, before returning to Malaysia to pursue a career in the music industry. In December 2007, Lo was appointed the Chief Executive Officer of Tune Talk, a no-frills mobile virtual network operator, owned by Tune Ventures Sdn Bhd, in which AirAsia Group Chief Executive holds a 40% stake.

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4.1.5

Dato’ Anthony Francis Fernandes (Dato’ Tony Fernandes)

Malaysian, aged 42, was appointed Group Chief Executive Officer of the Company in December 2001. He is also a member of the Executive and Employee Share Option Scheme Committees of the Board. Prior to joining the Company, he was Financial Controller at Virgin Communications London from 1987 to1989, Senior Financial Analyst at Warner Music International London from 1989 to 1992, Managing Director at Warner Music Malaysia, from 1992 to 1996, Regional Managing Director, ASEAN from August 1996 to December 1999 and Vice President, ASEAN from December 1999 to July 2001 at Warner Music South East Asia. He was actively involved in developing the Malaysian music industry and received the title “Setia Mahkota Selangor” from Duli Yang Maha Mulia DiPertuan Agong, Sultan Salahuddin Abdul Aziz Shah in 1999 in recognition of his contributions and was also the recipient of the “Recording Industry Person of the Year 1997” by the Recording Industry Association of Malaysia. In addition, he received the International Herald Tribune award for the Visionaries & Leadership Series in 2003 for his outstanding achievement with AirAsia, and was named "Malaysia CEO of the Year 2003" by American Express and the Business Times. He was named the “Emerging Entrepreneur of the Year – Malaysia 2003” at the Ernst & Young Entrepreneur of the Year Awards in 2004 and was one of Business Week’s 25 Stars of Asia for 2004. He was awarded the “Airline Business Strategy Award 2005 and Low Cost Leadership” by Airline Business and he was also named Asia Pacific Aviation Executive by the Centre for Asia Pacific Aviation (“CAPA”) for the year 2004 and 2005. He was admitted as an Associate Member of the Association of Chartered Certified Accountants in 1991 and became a Fellow Member in 1996. In July 2005, he was conferred the Darjah Datuk Paduka Tuanku Ja’afar (DPTJ) which carries the title Dato’ by the Negeri Sembilan’s Yang DiPertuan Besar Tuanku Ja’afar Tuanku Abdul Rahman in conjunction with His Majesty’s 83rd birthday celebrations in recognition of his services rendered to the betterment of the nation and community.

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Situation Analysis

4.1.6

Dato’ Kamarudin Meranun

Malaysian, aged 44, was appointed Director of the Company on 12 December 2001. In January 2004, he was appointed Executive Director and on 8 December 2005, he was redesignated to Group Deputy Chief Executive Officer. He is also a member of the Executive Committee and Chairman of the Employee Share Option Scheme Committee of the Board. Prior to joining the Company, he worked in Arab-Malaysian Merchant Bank from 1988 to 1993 as a Portfolio Manager, managing both institutional and high net-worth individual clients’ investment funds. In 1994, he was appointed Executive Director of Innosabah Capital Management Sdn Bhd, a subsidiary of Innosabah Securities Sdn Bhd. He subsequently acquired the shares of its joint venture partner of Innosabah Capital Management Sdn Bhd, which was later renamed Intrinsic Capital Management Sdn Bhd. He received a Diploma in Actuarial Science from University Technology MARA (UiTM) and was named the “Best Actuarial Student” by the Life Insurance Institute of Malaysia in 1983. He received a B.Sc. degree with Distinction (Magna Cum Laude) majoring in Finance in 1986, and an MBA in 1987 from Central Michigan University.

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4.1.7

Dato’ Seri Kalimullah Hassan

Dato′ Seri Kalimullah Hassan, 51, began his career as a journalist in 1971. He worked with leading domestic and international news agencies until 1995 after which he went into business. He is a co-founder of the niche ECM Libra Investment Bank and remains as Executive Chairman of the financial services group.

He was appointed chairman of the National News agency, Bernama, in Sept 2002, and in January 2005, Editor–in–Chief of the country′s largest newspaper group, the New Straits Times Press Berhad. After leaving that position on Dec 31, 2005, he resumed his position as CEO of the ECM Group. He remained Deputy Chairman of NSTP until Dec 31, 2008.

Kalimullah has received several awards for his contribution to the country from the State of Penang (Darjah Gemilang Pangkuan Negeri (DGPN and DSPN), the Sultan of Kelantan (DPMK), the Sultan of Perak (DPCM) and the King (PJN) and is also a Government-appointee as member of the National Unity Advisory Panel, the Multimedia Development Corporation (MDEC) and the National Information Technology Council (NITC). He is also chairman of public-listed Ekowood Berhad.

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4.1.8

Mark Lancester

Mark comes to Tune Hotels.com from the entertainment and leisure consumer goods industry. With over 15 years with the Warner Music Group in senior Regional and Managing Director management roles throughout Asia, Mark's experience includes managing companies from start-up phases to managing growth-oriented established businesses across Asia and Greater China. Having spent an extraordinary amount of time in hotels, ( including living out of one in HK and Taipei for a full year!), and seeing how little time recording artists actually spend in hotels, he is totally committed to our mission statement of promising a great night's sleep, enjoying a fantastic hot power shower the next morning and ensuring a clean and secure environment to all Tune Hotels.com guests.

4.1.9

Lim Kian Onn

Member of the Board of Trustee of the Foundation is also the Group Managing Director of the ECM Libra Group. He is a Chartered Accountant with experience in the financial services sectors of Malaysia, and other regional markets. Prior to setting up the then Libra Group in the mid-1990s to provide stockbroking and fund management services, he held several senior positions in the finance and securities divisions of the Hong Leong Group. He was instrumental in transforming the Libra Group into ECM Libra, adding to it the current investment banking and advisory services. He is a respected corporate adviser in the field of mergers and acquisitions, corporate and debt restructurings, capital markets and the development of corporate finance strategies.

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4.1.10

Gurtaj Singh Padda

Executive Director and COO at Tune Talk. Gurtaj Singh Padda is a strategic thinker, a technology visionary and a Business manager and IP / MVNO Gurus who is much sort after for his views on the next generation systems and convergence. Gurtaj has varied experience, from sales with Olivetti business division in India to Project Management and professional services with Lucent Technologies in India, Singapore and the Asia Pacific region to Telecom business development with CSG Systems. He has been in the past recognized for starting new business lines, global leadership, excellence in business process re-organization, and introduction of state of the art management practices and technologies, Business Modeling and raising capital. With an aptitude and willingness to roll-up his sleeves and with no compunction to being hands-on, he has demonstrated this time and again in various assignments. He created a business model which can be used as a bench mark for telecoms which want to deploy broadband wireless networks. Gurtaj served as Director Program Management for Lucent technologies and managed over all responsibility of Customer satisfaction and P&L of all projects across the region, with over two Billion dollars in revenue in 1999.Gurtaj is one of the pioneers who has converged Mobile platform with SIP telephony. He has built a system which can by pass roaming saving the company over 40-70% in bottom line on international routes. Bourke is one of the only companies which now offers a convergent billing between Fastnet and Mobile platforms. Created a network which is 100% prepaid with multiple services under on window, that meant the end user only needs one account and one top up for various services like, Mobile, SIP, and all the VAS for both platforms. The advantage of the system is that it bypasses roaming out calls and enabled international mobile calls on SIP thus greatly reducing the costs.

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4.2 Partners 4.2.1 Air Asia

AirAsia is the leading and largest low-cost carrier in Asia, services the most extensive network with 130 routes covering more than 65 destinations. Within the grasp of 7 years of operation, AirAsia has carried over 65 million passengers and grown its fleet from just two aircraft to 75. The airline today is proud to be a truly ASEAN (Association of South East Asian Nations) airline with established operations based in Malaysia, Indonesia and Thailand, servicing a network stretching across all ASEAN nations, China, India and . This is further complemented by AirAsia X, its low cost long-haul affiliate carrier that currently flies to destinations in China, , Australia, and the UK. AirAsia is the only regional carrier with the largest destination network and highest flight frequencies. AirAsia has been awarded the 2009 World's Best Low Cost Airline in the annual World Airline Survey by Skytrax and has been ranked Top 5 among the most recognized and admired airlines in the Asia Pacific Top 1000 Brands 2008.

4.2.2 Bank Islam

The Bank Islam Malaysia (Bank Islam Malaysia Berhad, or BIMB) started operations as Malaysia's first Islamic bank on July 1, 1983. BIMB was established primarily to assist the financial needs of the country's Muslims and to further extend its services to the whole population at large.

BIMB was set up with an initial authorized capital of RM 500 million and paid in capital of RM 79.9 million, the bank has gradually increased its authorized and paid-in capital to RM 2 billion and RM 563 million respectively. Everyone talks and has phone bills right? Well, Tune Talk and Bank Islam would like to lessen or even eliminate that expenditure! How? Simple, apply for a Bank Islam Card and if it's approved you get RM5 worth of Tune Talk airtime FREE every month for first 18 months! That's not all! Spend with your Bank Islam Card and get 0.3% of retail purchases converted into additional free airtime on a quarterly basis! The more you spend, the more you get!

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4.2.3 Etiqa

We at Tune Talk care about you. To show our appreciation, we've teamed up with Etiqa to design a special insurance coverage, especially for you!

Tune Talk subscribers are eligible for a FREE PA Insurance worth RM100,000. All you need to do is maintain a minimum monthly top-up of RM30. This PA Insurance will cover our active customers between ages of 12 and 65. For more information on the coverage, please read this Policy Wording and don't forget to fill up your Nomination Form and send fax to +603 2297 3800.

4.2.4 99 Speedmart

99 SPEEDMART is designed mainly for the local consumers who are particularly conscious about convenience, service and budget, as it utilizes the store concept: Functioning as a neighborhood shopping outlet with good product varieties, consistent availability and great value. Hence 99 SPEEDMART's tagline, "NEAR n SAVE" As we are rapidly expanding, the growth of 99 SPEEDMART outlets are now throughout Klang Valley, mainly in Klang, Shah Alam, Petaling Jaya, , Kuala Selangor and Banting. The 2 digit numbers represent 99% which means "near perfectness". As human beings, it is not possible for us to achieve 100% perfectness in whatever we are doing. However, all of us in 99 SPEEDMART will always do our best to ensure the best in our "delivery", both in term of products and services that we render to customers. 99 SPEEDMART in the long run has a grand vision of establishing itself throughout Malaysia, forging a strong chain of outlets in every major state and town to meet the needs of all Malaysians. We will provide the best quality products and services to our customers satisfaction and fulfill our responsibilities as a true professional corporate company to consistently push forward in the pursuit of excellent. 99 SPEEDMART ambitious visions may be realized much sooner than envisaged.

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4.3 Current Customers

4.3.1 Demographics

Age: 18 – 30

Gender: Male and Female

Nationality: Malaysia 30%, Non-Malaysian 70%

Education: Secondary school to tertiary educated

Occupation: Student and workers

Income range: RM900- RM3000

Races and ethnicity: All races

Geographic location: Urban and semi-urban

4.3.2 Psychographics

Perception :

The target group are young and very optimistic. They are very hardworking and

believes that when there is no pain, no gain. These people are very knowledgeable

and willing to learn and teach others also. They are also very close to their loved ones.

Learning :

They are always up to date with latest news and also entertainment. They learn

through internet, news, magazines, through friends an families.

Motivation and Needs:

This target group are young achievers which also keep their selves up to date

for the latest trend and news. They are the type which like to explore new gadgets

in market and to be trend setter by owning it. They are very responsible in their

education and also work.

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Attitude and Personality:

They are the type who always be online to share cool information about the current

trends in the market. They are also stylish and uses many cool gadgets, and tend to

share it with their friends.

Lifestyle:

They are very particular and hardworking when it comes to studies and works.

They are very interested in music, movies, games, shopping and also

travelling.

4.4 Future Customers

In the future, Tune Talk wish to target young adults group (25-35 years old), who

are hardworking and busy with their work, family and friends, and business. They

need a cheap rates offer and also promotions together with good customer care

service to build a good perception and bond with Tune Talk.

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Industry & Marketplace

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5.0 Industry and Marketplace

5.1 Telecommunications Industry - History and Definitions

Prior to 1946 the Post and Telegraph Department was responsible for providing all telecommunications services throughout Malaysia. In 1946, the postal service was segregated with the formation of the Telecommunications Department in Peninsular Malaysia. This department was subsequently merged in 1968 with the Telecommunications Department in Sabah and Sarawak to form the Department of Telecommunications Malaysia (or Jabatan Telekomunikasi Malaysia (""JTM'')). In 1987, the operation of Malaysia's telecommunication services was transferred from JTM to Syarikat Berhad, which became a publicly listed company in 1990. It assumed its present name, Telekom Malaysia Berhad, in 1991. The Government retained a majority shareholding in Telekom Malaysia Berhad as well as a ""special share'', to ensure that Telekom Malaysia's important operational decisions are consistent with Government policy. Telekom Malaysia introduced mobile services into Malaysia in 1985. Since then, the Government granted a number of licenses to private sector telecommunication operators in an effort to develop the country's telecommunications industry and infrastructure. In 1999, the Government established the Commission as the regulatory body charged with overseeing the communications and multimedia industry under the direction of the Minister. The Minister is responsible for planning and formulating national policy on the communications and multimedia industry in Malaysia and for licensing telecommunications operators. The industry has transformed from a monopolistic regime with Telekom Malaysia's monopoly over mobile, fixed line and international telephony services to the current more transparent, more liberalized structure promoting increased competition. In 1999, the Government introduced its ""equal access'' policy, firstly to allow Malaysian consumers to choose their long-distance and international telephone carriers and, secondly to provide Malaysian operators having fixed line licenses the ability to supply trunk services to consumers directly connected to another network operator. The Government introduced this policy to facilitate improvement in the quality of telecommunications services and to facilitate price reductions as a result of enhanced operating efficiency. The Government also encouraged foreign investors to provide the necessary capital investment and technological know-how and experience to promote the rapid development of the telecommunications market in Malaysia. The Government also indicated that it will allow foreign ownership in Malaysian telecommunications companies of up to 61 per cent, subject to the conditions that the Government may impose, provided that the ownership percentage of foreign investors is reduced to 49 per cent. Within five years of achieving the 61 per cent. Threshold. Refer to Section 16 of this Prospectus.

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5.2 Cellular phone users

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5.3 Prepaid Plans in Malaysia

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Competitive Situation Analysis

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6.0 Competitive Situation Analysis

6.1 Direct Competitors

6.1.1 Celcom

Tagline: It’s in your hands.

About Celcom:

Celcom (Malaysia) Berhad is now the country's most experienced and premier mobile cellular telecommunications company with 7.2 million customers. It currently has the widest network coverage covering 97% of the populated areas in the country. We were the first to launch the 3G service in Malaysia and has the widest 2G, 3G and 3.5G coverage in the country.

Celcom also offers international roaming service in 120 countries over 317 networks worldwide. It currently offers mobile telephony services in Malaysia for postpaid and prepaid products under the 019, 013 and 0148 access codes.

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6.1.2 Digi

Tagline: Always the smarter choice

About Digi:

DiGi is a leading mobile communications company providing a comprehensive range of affordable, convenient and easy to use wireless services to simplify and enrich the lives of its customers. We create value for our customers by selecting the most appropriate cutting edge technology so that they benefit from products and services that give them choice, convenience and control.

We have an established presence as a leader in voice and data prepaid services with a number of firsts that have set industry benchmarks for creativity and innovation. These services are offered under the DiGi Prepaid brand name. Our postpaid service under the DiGi Postpaid brand name delivers high quality voice as well as value-added mobile content and data services to both individual and corporate customers.

We aspire to be the Industry Shaper by taking leadership positions through series of innovative value propositions, simplicity and excellent execution.

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6.1.3 Maxis

Tagline: Loyalty has no rewards

About Maxis:

Maxis Berhad, with its consolidated subsidiaries (together, 'Maxis'), is the leading mobile communications service provider in Malaysia with over 11.4 million mobile subscribers as of 30 June 2009.

Maxis was granted licences to operate a nationwide GSM900 mobile network, a domestic fixed network and an international gateway in 1993. It commenced its mobile operations in August 1995 and launched its fixed line and international gateway operations in early 1996.

Since its establishment, Maxis has been providing a full suite of services on multiple platforms to fulfil the telecommunications needs of individual consumers, SMEs and large corporations in Malaysia.

Maxis' mobile service is offered on a postpaid basis under the Maxis brand and via a prepaid format under the Hotlink brand. The use of these two distinct brands, underpinned by synergistic values, has enabled Maxis to develop its prepaid business successfully while maintaining growth in its postpaid segment.

Maxis has also pioneered and led the Malaysian market in delivering innovative mobile products and services. It was the first to launch 3G services in Malaysia — known as Maxis3G — in July 2005, and in September 2006, it became among the world's first to use HSDPA, a high-speed upgrade of its 3G network, to provide wireless broadband services. It was the first operator to bring the BlackBerry™ and Apple iPhone™ smart phones to Malaysia. The company in April 2009 unveiled the first commercial NFC- powered service in Malaysia.

Maxis provides enhanced postpaid packages to corporate and SME customers, based on its highly successful consumer postpaid plans. These plans are custom-made to meet the needs of enterprises, especially improved communications within and beyond their compound.

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6.1.4 U Mobile

Tagline: At U Mobile, You Call The Shots!

About U Mobile:

Launched on 18 September 2007, U Mobile Sdn Bhd is a 3G mobile service provider. U Mobile entered the market with the objective to provide relevant mobile services to targeted customers in both the consumer and enterprise segments. U Mobile aims to be a mainstream mobile telco by 2012 and seeks to achieve this by delivering relevant mobile communications services, engaging entertainment content and accessible information through advanced technology which is easy to use. The majority shareholder of U Mobile is Sdn Bhd.

Utilizing the 018 prefix assigned and with Malaysia’s first landmark domestic roaming agreement, U Mobile customers are able to experience nationwide coverage while U Mobile continues to progressively rollout its own HSDPA-driven mobile network nationwide.

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6.2 Indirect Competitors

6.2.1 TM

Tagline : Opening up Possibilities

About TM:

As the leading integrated telecommunications company in Malaysia, we aim to deliver cutting-edge communications, information and entertainment services. Explore our profile to find out more about who we are and what we stand for.

Vision & Mission

We believe connections make everything possible. Therefore, as Malaysia’s leading provider in information communications technologies, we strive to provide the right connections to help you bring your close ones closer. From the way we operate to what we intend to accomplish both on the local and international front, we apply and hold close a vision of excellence created towards making your life better.

Our Vision

"To be Malaysia’s leading new generation communications provider, embracing customer needs through innovation and execution excellence"

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Our Mission

Strive towards customer service excellence and operational efficiency Enrich consumer lifestyle and experience by providing innovative new generation services Improve the performance of our business customers by providing high value information and communications solutions Deliver value for stakeholders by generating shareholder value and supporting Malaysia’s growth and development.

Telephone Services:

Fixed Lines

Local & Long Distance Calls

Local

When you subscribe for a basic telephone service, TM will provide you with an individual direct exchange line and a telephone set which you may choose from a range of colours. A basic monthly rental will be levied while additional phone sets to be used as extensions can be provided at minimal additional rental.

Price/Tariff Initial Deposit : RM75.00 Stamp Fee : RM10.00

Rental Charges

Residential Rate (Monthly) Exchange Line Capacity Peninsular Malaysia Sabah/Sarawak Exceeding 1000 lines RM25.00 RM25.00 501 - 1000 lines RM13.00 RM13.00 500 & below lines RM13.00 RM13.00

Installation Charge: RM50.00 (Payment to TM) Note: 1. RM50 is charged for the first 5 meters and every additional 1 meter is charged RM5 2. The charges are also applicable for the external removal (ER)

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Reconnection Fee When a subscriber's service has been temporarily disconnected, a charge of RM10.00 will be imposed for service reconnection.

Local Call

Calls within a town area (e.g. within Ipoh•Calls between a town within the same charge area (e.g. Ipoh to Pulai)

Calls from a town to another town in an adjacent charge area (e.g. Ipoh to Chemor)

Each charge area consists of one town or several towns grouped together

Each local call is charged at 8 sen for the first 2 minutes or part thereof and 4 sen for each subsequent minute or part thereof.

Long Distance calls consist of:

National Calls - self-dialed calls from a town to another beyond the adjacent charge area.

International Calls – direct dial calls to overseas without the help of an operator

With International Call service, customers can dial direct overseas without the assistance of an operator. This facility allows customers to enjoy cheaper and faster overseas connections. Charges for International Call calls are itemised in the telephone bill.

National Call

National calls are self-dialed calls from a town to another beyond the adjacent charge area.

Charges from Homeline/Businessline phones to Homeline/Businessline phones:

Distance (km) Full Rate Reduced rate Operator Assisted** Homeline/Businessline to 7.00 a.m. - 7.00 p.m. - (charge per 3 mins) Homeline/Businessline 6.59 p.m. 6.59 a.m.

Band A (Not Exceeding 50km) 10 sen/50 seconds 10 sen/60 seconds 35 sen

Band B (50km - 150km) 10 sen/20 seconds 10 sen/40 seconds 90 sen

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Band C (Exceeding 150km) 10 sen/7 seconds 10 sen/14 seconds RM2.70

Note: ** Operator Assisted - Service charge per effective call is RM1.50

- Per block of 3+3

Charges from Homeline/Business phones to Mobile phones:

Operator MTX Area Full Rate Reduced rate Assisted Homeline/Businessline to 9.00 a.m. - 9.00 p.m. - (charge per 3 Mobile 8 .59 p.m. 8.59 a.m. mins)

Band L (within MTX) 10 sen/20 seconds 10 sen/30 seconds RM2.10

Band M (Adjacent MTX) 10 sen/8.6 seconds 10 sen/15 seconds RM2.10

Band N (Non-Adjacent MTX) 10 sen/8.6 seconds 10 sen/15 seconds RM2.10

Note:

The above call charge is effective from 1st Jan 2005 A service charge of RM 1.50 is levied for the effective call made via Operator Assisted service MTX denotes Mobile Telephone Exchange Area

Charges from Homeline/Businessline phones to Neighbouring countries:

Operator Assisted* Standard Rate (charge per 3 mins)

Border Area to 10 sen/20 seconds RM0.90 Singapore**/Brunei***

Note:

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* Operator Assisted - Service charge per effective call is RM1.50 ** Border area to Singapore - Johor Bharu, Kangkar Pulai, Tiram, Linggiu, Kulai, Pontian, Air Baloi, Air Tawar Lima, Kota Tinggi, Penawar, Pengerang *** Border area to Brunei - Kg Bakam, Kg Pahlawan, Lawas, Long Lama, Marudi, Miri, Mulu Resort, Sundar, Labuan.

Full Rate Reduced rate Operator Assisted* 7.00 a.m. - 6.59 7.00 p.m. - 6.59 (charge per 3 mins) p.m. a.m.

Rest of Peninsular 10 sen/3.1 seconds 10 sen/5.8 seconds RM6.00 Malaysia to Singapore**

Sabah/Sarawak to 10 sen/2.3 seconds 10 sen/4.6 seconds RM7.80 Singapore

Rest of Sabah/Sarawak 10 sen/3.1 seconds 10 sen/5.8 seconds RM6.00 to Brunei**

Note:

* Operator Assisted - Service charge per effective call is RM1.50 ** Denotes area other than border area

International Call

Enjoy clear and high quality International Call service by dialing direct from your home/office by using TM's Homeline/Businessline telephone service. With our Homeline/Businessline telephone service, you save the hassle of dialing additional access codes, e.g. Equal Access numbers, Freephone or local access numbers or pin numbers for International Call services provided by other Telephone companies.

Making an International Direct Call

Applies to Business and Home User.

Now, with TM's International Call service, you will enjoy our SINGLE RATE PER COUNTRY tariff for 24 hours everyday. Call your loved ones, friends and business associates in more than 230 countries worldwide when it is most convenient to you. With our International Call service, there are no more barriers to hearing the voices of loved ones or enhancing businesses through real time relationships.

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6.2.2 I Talk

Special Rate to Indonesia as low as 35sen/min from 15 May until 31 July 2010

Get connected to friends and family at home or overseas with iTalk, a prepaid calling card that allows you to make calls from your mobile, fixed lines and even from the Internet via iTalk Buddy. Available in denominations of RM10, RM20, RM30 and RM50, you can make national (STD) and international calls with even greater savings anytime, anywhere.

Features

1) Easy to remember access number for making domestic, international and Malaysia direct calls (Calls from overseas) 2) Free access using our freephone numbers nationwide, from any fixed line phone and access from mobile phones via missed callback. 3) Service coverage of up to 79 international destinations at anytime. 4) You can share credits with 4 other numbers registered under iTalk under one account and transfer the extra balance to any iTalk registered number. 5) Preferred language settings - four language options i.e Bahasa Malaysia, English, Mandarin and Tamil 6) Purchase iTalk Cards at a very affordable price options: RM10, RM20, RM30, RM50 7) Card value balance announcement before making calls. 8) Maximum talk time alerts before the call is connected. 9) Follow-on calls can be made after called party hangs-up. 10) Fixed line and home prepaid user are able to access to Internet via 1515 and 1315 dial up services.

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Benefits

1) Enjoy cheaper national and international call rates with continuous rates discounts to selected countries 2) Simple voice instruction 3) Four language options for user to choose 4) You are able to make calls to and from overseas with iTalk 5) Easy to use - registration of up to 5 different telephone numbers that allows you to make calls without having to key in lengthy card or pin numbers 6) Reloadable for home prepaid, iTalk Buddy, and PAL (Prepaid Access Line).

Participating handphone outlets: 7-Eleven, Petrol Marts, Photo shops, Pos Malaysia, One-Pay, Mini markets Note: The following services are not available via iTalk:

Freephone National 1-800. Operator assisted calls eg: 103, 108 etc. Emergency calls eg: 991, 994, 999. 4 digit short codes eg: 1051,1052, 1053, 1092, 1099 etc. Internet access 1511, 1525.

Card Validity Period With immediate effect, the new validity period for iTalk is 180 days from the date the first call is made. Validity can be extended by topping up the credit value of the

iTalk card before the expiry date

Reload Denominations Validity Period Below RM20 Additional 30 days RM20 - RM29 Additional 60 days RM30 - RM49 Additional 90 days RM50 and above Additional 120 days * Subject to a maximum validity of 180 days at any time.

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6.2.3 TM Calling Card

TM Calling Card The TM Calling Card is a convenient, cost effective calling card service that serves all your communication needs when you are abroad while offering the same great services that you enjoy at home or in office. With the Malaysia Direct and Home Country Beyond features, you stay connected to your associates, home, voice mail or other countries without operator’s assistance.

6.2.4 AmBank NexG

AmBank NexG iTalk Prepaid Mastercard Now everybody can start shopping and make calls with a single card with Ambank NexG-iTalk Prepaid MasterCard. It is a combination of two features: payment card from Ambank and iTalk calling card from TM. With Ambank NexG-iTalk Prepaid MasterCard you will enjoy shopping without the worries of carrying cash on hand. You can also make National and IDD calls with ease from any mobile or fixed line and enjoy the lowest call rates in town. With Ambank NexG-iTalk Prepaid MasterCard you will enjoy all the benefits associated with iTalk mobile card and AmBank NexG Mastercard. The more you use it, the more rewards you get.

Benefits that you will enjoy with Ambank NexG-Italk prepaid Mastercard:

-No bank account or income is required

-Guaranteed card approval within 5 days

-Use and earn rewards (AmBonus point, RealRewards and iTalk reload rewards)

-Make calls from as low as 25cents per minute to any mobile phone nationwide

-Make international calls to over 75 countries with current promotional rates from iTalk

-Enjoy iTalk Buddy features

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SWOT Analysis

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7.0 SWOT Analysis

7.1 Strength

- Cheapest rates for international calls

- Cheapest SMS rates to all networks

- Can book the number before getting the sim pack

7.2 Weaknesses

- Starter package available in selected stores.

- Less features such as MMS, Video Call and 3G.

- Postpaid service is not available.

7.3 Opportunities

- Becomes a trend among friends and families to use Tune Talk through influence.

- Perception of people that it has cheap rates since it has partnership with Air Asia.

- Influence by internal stakeholders such as “Air Asia” by giving away Air Asia E-gift

voucher.

7.4 Threats

- Low coverage in certain areas.

- The launch of other telco service which has same or better rates which has better

publicity.

- Sudden arise of technical problems.

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Target Audience

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8.0 Target Audience

8.1 Demographics

Age: 18 - 28 years old

Gender: Male and Female

Education: Tertiary Educated

Occupation: Students, Fresh Graduates, Workers

Income Range: RM 1000 and above

Race & Ethnicity: All races

Geographic location: Urban and semi-urban

8.2 Psychographics

Perception:

The target group is teenagers who are energetic and adventurous. The young adults

are fresh people who is looking for changes in the society and expecting a high class

lifestyle. They also work hard and love their family and friends. They are the type of

person who has faith in life and believes that nothing is impossible in their life.

Learning:

They learn through experience, and internet. They are the person who is up to date

with every issue and new market trends. They are also very knowledgeable and

would share their knowledge with their friends, family members and working

colleagues.

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Motivation and needs:

This target group will be friendly and particularly interested in entertainment,

where they think that life should be fulfilled with happiness and joy with loved

ones. They are attached to the person they love and wishes to own their

assets like cars, house and insurance.

Attitude and Personality:

They are a very cool person which is very positive minded. They are also very

responsible and loyal. They have a very strong determination in life.

Lifestyle:

They are very busy and hardworking when it comes to studies and also working

commitments. They are also active in their life and very cheerful person. They also

have a good sense of humor.

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Solution Analysis

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9.0 Solution Analysis

9.1 Survey Analysis

A survey has been conducted from 1st July 2010 until 17th July 2010. Most of the

respondents are Multimedia University students from different faculties. The aim of

this survey is to analyze the awareness of Tune Talk and its popularity among university

students’.

Q1. What is your gender?

The result shows that 58.10 percentage of respondents are female, meanwhile 41.90

percentage of respondents are male.

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Q2. Age Range?

Most of the respondents are person aged 21 until 25. The least percentage was the

people in the age group of 25 until 28.

Q3. Do you know Tune Talk?

Most of the respondents knows about Tune Talk. They are just unaware of the services they provide 22.6 percentage of the respondents does not know about Tune Talk.

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Q4. How do you know about Tune Talk?

Most respondents says that they know about Tune Talk through Online Media.

Whereby, the equal response of 32.30 percentage is for knowledge about Tune Talk through friends. There are very less exhibition of Tune Talk being held for people’s awareness.

Q5. With the Mobile Number Portability available, which operator you wish to switch to?

Most of the respondents says that they don’t wish to switch. The second most highest percentage is Digi subscribers.

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Q6. Which telco service’s advertisement you never seen or heard before?

Major respondents says that they have seen and heard all of the telco service’s

advertisement. Some says that they have never seen or heard of Maxis and Celcom

advertisements before.

Q7. What is your current mobile phone operator?

Major respondents which is 58.10 percentage said that they are Digi subscribers.

Very less percentage shows of U Mobile and Tune Talk subscribers.

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9.2 Interview via Online (Tune Talk Live Chat)

Q1. What is Tune Talk’s Unique Selling Proposition (USP)?

- Cheapest Rate – 16cent/min flat rate to all numbers nationwide.

- Number Changing Flexibility.

- Channel with Air Asia (attractive give away).

Q2. What is Tune Talk’s reputation and image?

- By far, the lowest mobile prepaid.

- Reaching 1 million subscribers within 1 year of operation.

Q3. Who are the Stakeholders for Tune Talk?

- Jason Lo (CEO), Dato’ Tony Fernandes, Dato’ Kamaruddin Meranun, Dato’ Seri

Kalimullah Hassan, Mark Lancester, Lim Kian Onn, Gurtaj Singh Padda.

Q4. What is Tune Talk’s current market situation?

- At the moment, Malaysian mobile users penetration is 160%. There’s room for

opportunities for Tune Talk.

Q5. Tune Talk’s Market Share and Product Sales History?

- Private and Confidential (P&C).

Q6. Current Customer’s profile?

- Average subscribers aged between 18-25 (70%).

- Nationality Wise: Malaysian (30%), Non- Malaysian (70%).

- Education level: Minimum high school.

- Income: RM900 - RM3000.

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Precedent Studies

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Situation Analysis

10.0 Precedent Studies

10.1 Celcom

Promotional Plan:

Sign up for Celcom blue, top up RM30 and you will get free smses and talktime within

the promotion time. Enjoy the cheapest call and sms rates with celcom blue.

The motive of this advertisement is to make sure that the customer top up more than

RM10, and reward them so that they will be loyal to them.

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Promotion Plan:

Get celcom Xpax and you can call to any networks for 12 sen/min, 6 sen/sms to all networks, ½ sen/sms within the same network. They also have Birthday Bonus, Every

Month Bonus, Surprise Bonus and Early Reload Bonus.

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10.2 Maxis

Promotional Plan:

Subscribe Hotlink youth club and get the lowest rates nationwide, with 4 years

validity (minimum top-up of RM10 per year).

The motive behind this advertisement is to make sure that maxis subscribers stay on

to this network and at the same time receive good service for a long period of time.

Through this the subscribers will also tend to persuade and influence other people to

follow this plan.

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Situation Analysis

Promotional Plan:

Maxis Family Plus Plan is a plan all family members, whereby they can call each other free.

This advertisement’s motive is to persuade families to subscribe this plan, whereby it will be way to cheap and moreover they could connect each other easily. Through this

Maxis subscribers will be more loyal to them.

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10.3 Digi

Promotional Plan:

Hit RM1 on any day and enjoy lower rates all day. Get 50% off for domestic calls to

any network.

This is to show gratitude to Digi’s loyal customers and to reward them with cheap rates

for calling and short messaging services.

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Promotional Plan:

With the Digi Postpaid plan one can get the lowest rates to call or sms anyone, to any networks at anytime.

Through this advertisement Digi customers will stay loyal to this network and enjoy their benefits and at the same time they will save more money.

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10.4 Tune Talk

Promotional Plan:

Tune Talk is the brand new mobile prepaid that has come up with some cheap

IDD rates from 9pm-9am. Moreover they can get free Air Asia E-gift vouchers,

and free RM100,000 insurance by etiqa.

The motive behind this advertisement is to persuade people to be Tune Talk

Customer whereby they can get cheap rates to call their loved ones overseas.

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10.5 U Mobile

Promotional Plan:

U Mobile gives rewards like free calls and 1 sen/sms 7am until 7pm daily.

The motive of this advertisement is to persuade people to subscribe U Mobile

Network and get more rewards and cheap rates.

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11.0 References

Chapter2

Tune Talk – http://www.tunetalk.com/

Chapter 3

Tune Talk - http://www.tunetalk.com

Chapter 4

Tune Talk – http://www.tunehotels.com/

Chapter 5

Malaysia Communications and Multimedia Commision (MCMC)

http://www.skmm.gov.my/

Chapter 6

Celcom – http://www.celcom.com.my

Digi – http://www.digi.com.my/

Maxis – http://www.maxis.com.my/main.asp

Hotlink – http://www.hotlink.com.my/

U Mobile – http://www.u.com.my/

Chapter 10

Celcom – http://www.celcom.com.my

Digi – http://www.digi.com.my/

Maxis – http://www.maxis.com.my/main.asp

Hotlink – http://www.hotlink.com.my/

U Mobile – http://www.u.com.my/

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