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Symptoms Versus Problems (SVP) in Household High Speed Broadband (HSBB): Regaining Momentum for Unifi, Malaysia”

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Symptoms Versus Problems (SVP) in Household High Speed Broadband (HSBB): Regaining Momentum for Unifi, Malaysia” “Symptoms versus problems (SVP) in household high speed broadband (HSBB): regaining momentum for Unifi, Malaysia” Noor N. Kader Ali AUTHORS Bin Y. Soon Lee S. Goh Nur A. Ahmad Razi Noor N. Kader Ali, Bin Y. Soon, Lee S. Goh and Nur A. Ahmad Razi (2015). ARTICLE INFO Symptoms versus problems (SVP) in household high speed broadband (HSBB): regaining momentum for Unifi, Malaysia. Problems and Perspectives in Management, 13(2-si), 330-346 RELEASED ON Tuesday, 28 July 2015 JOURNAL "Problems and Perspectives in Management" FOUNDER LLC “Consulting Publishing Company “Business Perspectives” NUMBER OF REFERENCES NUMBER OF FIGURES NUMBER OF TABLES 0 0 0 © The author(s) 2021. This publication is an open access article. businessperspectives.org Problems and Perspectives in Management, Volume 13, Issue 2, 2015 Noor N. Kader Ali (Malaysia), Bin Y. Soon (Malaysia), Lee S. Goh (Malaysia), Nur A. Ahmad Razi (Malaysia) Symptoms versus problems (SVP) in household high speed broadband (HSBB): regaining momentum for Unifi, Malaysia Abstract Problem identification is a talent and skill set required in all leaders. The objective of this study is to reveal an improved research method by integrating mixed-method research combined with problem identification method (using symptoms versus problems (SVP) framework) for telco service providers. The SVP framework discovers the primary causes to the decrease in revenue growth rates. Malaysia’s household broadband penetration rate grew from 15.2% (2007) to 67.1% (2013). Meanwhile, the growth rate for Unifi, offered by Telekom Malaysia (TM), decreased from 104% (2012) to 30% (2013). Why? There are eight causes, specifically; not prioritizing 4G LTE license; obligating social services to rural areas; providing 20-30 Mbps wireless broadband packages by the competitors; offering less competitive price; not covering all zones; offering less favorable service contracts; offering limited packages; and receiving customer complaints. The sequential methodology process began with semi-structured interviews, analysis of unpublished company data, customer survey on 164 respondents and field observation which were all summarized into a root-cause analysis tool called symptoms versus problems framework (SVP). The SVP indicates TM acquired Packed One to overcome HSBB issues; revamp its strategies to product content offering instead of head-on price war; establishing bureaucracy busting team, competitors busting teams on product innovation; collaborating with local broadcasting companies; and developing talent. Interestingly, this study discovers another framework on critical success factors for telco service providers through development of “House of Pillars for Rapid Growth” of TM in Malaysia. Keywords: household broadband, high speed broadband, Unifi, growth, symptoms versus problems, house of pillars. JEL Classification: D92. Introduction1 Mr. Azhari, the General Manager for Northern Region Telekom Malaysia Berhad (TM) is the largest of Telekom Malaysia (NRTM), is concerned since the integrated communication solutions provider in 4G LTE is seen to be making a dent in the broadband Malaysia and one of Asia’s leading telecommunication industry in 2013 and 2014. Competitors are offering companies. It offers a comprehensive range of competitive products. 4G LTE, a high speed communication services solutions in fixed line, data broadband (HSBB), is capable of providing a and broadband. broadband speed around 30 Mbps for its customers (refer to Figure 1). Unifi home service, one of TM’s On 6th December 2012, Malaysian Communication product, only offers its HSBB up to 20 Mbps (refer to and Multimedia Commission (MCMC) awarded 4G Figure 1) for its fibre optic product, despite having Long Term Evolution (LTE) 2.6GHz spectrum license to eight companies beginning 1st January capabilities up to 100Mbps. Whereas, TIME offers up 2013, namely, Celcom, Digi, Maxis (the three major to 100 Mbps for household consumers, but are slow on cellular providers in Malaysia), U mobile, P1, coverage (refer to Figure 1). By the end of 2013, TM Redtone and Puncak Semangat (Francis & Hassan, only captured 39% of the total household broadband 2012). Maxis took the fastest deployment by offering market (refer to Figure 2). “Why is this so?”, the 4G LTE service on the first day of 2013 (The questioned Mr. Azhari. Star, 2013). At the time of the award, the wireless 4G Unifi financial report in 2013 shows a decrease in LTE service was perceived as mobile communication growth rate for Unifi subscriber, specifically, from market in particular, mobile phones such as iPhone 104% in 2012 to 30% in 2013 (Telekom, 2012; 5s, Samsung S5 and Sony Xperia Z2. However, as Telekom, 2013), while for Maxis subscribers, the demand for mobility increases, 4G LTE is seen in both fixed and wireless household high speed growth rates increased to 170% in 2013 (Maxis, 2014). broadband services (YES, 2014; Maxis, 2014). What The objective of this study to reveal an improved looks more interesting is that the wireless broadband method by integrating mixed-method research 4G LTE is seen capable to provide customers with approach combined with problem identification higher band width at a faster speed. method (using symptoms versus problems (SVP) framework) for telco service providers. During the Noor N. Kader Ali, Bin Y. Soon, Lee S. Goh, Nur A. Ahmad Razi, 2015. study, the improved SVP framework discovers the Noor N. Kader Ali, Deputy Dean, Graduate School of Business, Universiti Sains Malaysia, Malaysia. primary causes that allow TM to better understand Bin Y. Soon, Sr. Bios Engineer, Intel Micro Electronics (M) Sdn Bhd, why Unifi growth rates are decreasing, in comparison Malaysia. to its competitors (who are positioning their products Lee S. Goh, Planning Sr. Officer II, Fuji Electric (M) Sdn Bhd, Malaysia. Nur A. Ahmad Razi, Associate, Maxis Berhad, Malaysia. in the household wireless broadband category). Should 330 Problems and Perspectives in Management, Volume 13, Issue 2, 2015 TM change its strategic direction by focusing on the band products, instead of competing on speed effectiveness of its content offering wireless broad- and price? Source: refer to Appendix: Table 3 – sources. Fig. 1. Range of bandwidth offered by Telco/Celco 1. Industrial analysis has a total of 29.6 million populations comprising of In this millennium, constant deregulation around the 6.8 million households, of which 67.1% or, 4,558,100 world, creating a flush of new entrants is causing stiff private households are internet broadband subscribers competition, especially in developing and developed (MCMC, 2013). Malaysia’s household broadband countries where citizens are connected to the internet. penetration rate was grown tremendously from 15.2% (ITU, 2013). According to the 2013 census, Malaysia in 2007 to 67.1% in 2013. Source: MCMC statistic for broadband. Fig. 2. Malaysia household penetration rate However, data gathered by “Malaysian Commu- biggest share with 39.4% of total country broadband nication and Multimedia Commission” (MCMC) subscribers (Figure 3). Currently, TM broadband is shown in Figure 2 indicate the growth momentum for still the largest broadband provider in Malaysia. household broadband is showing signs of slowdown, However, with technological advancement, out of the with the increase of only 1% of the total number of broadband users, 82% of households have one households in Malaysia, in 2013. The intensive internet subscription, of which, 61.6% are mobile growth between 2007 and 2012 was closely related to broadband users and 32.6% are users of ADSL, government initiatives accelerating HSBB infra- indicating a shift in market share where wireless structure in Malaysia. TM in particular opens the access out numbered fixed line broadband players door for Malaysians to enjoy HSBB with Unifi, as (MCMC, 2012). Thus, emerging of new entrant and one of the early HSBB products offered in Malaysia. substitute products are becoming a threat to the Unifi Out of the 67.1% broadband users, TM holds the growth rate. 331 Problems and Perspectives in Management, Volume 13, Issue 2, 2015 Fig. 3. Malaysian market dhare for broadband household penetration 2013 2. Methodology tier symptoms before the problem are called elements derived from various methods stated in In this study, structured interviews, review of Methodology. The final root cause or the problem company’s unpublished data, customer survey, field is the end root-cause (Kader Ali, Wilson & observations and literature review were conducted. Mohammad, 2014). The main issue was identified using a root-cause analysis tool called the symptoms versus problems In this study, Tier 1 symptom was derived from (SVP) framework, introduced by Kader Ali evidences in unpublished data of TM. Tiers 2 and 3 et al. (2014). symptoms were supported by evidences from interviews, analysis of unpublished data, surveys Structured Interviews were conducted with the top and literature reviews. Tier 4 variables and all management of NRTM, and Sales and Marketing remaining Tiers or elements were supported by all Officer. Analysis of unpublished data was the above methods and field observation. The summa-rized in percentages and matched to TM’s deadlock or problems were labelled when causes to annual reports published. Market analysis was the elements reached the final root cause. In this conducted using published data in social media study, the SVP were illustrated by showing the and literature reviews. Field observations were cause and effect relationships
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