I. Objective Ii. Summary of Findings

CONSUMER SATISFACTION SURVEY (FEBRUARY-APRIL 2001) SUMMARY REPORT

I. OBJECTIVE

• The objectives of this study are:

¾ To determine the level of customer satisfaction on overall performance and customer service provided by the telecommunications, broadcasting and Internet access services; ¾ To identify which areas of the service provided have the lowest and the highest impact on customer satisfaction; ¾ To measure and evaluate the satisfaction level of customers at the various national level.

II. SUMMARY OF FINDINGS

A. BROADCASTING - TELEVISION • There are 6 TV stations in Malaysia. With exceptions of Mega TV (lowest penetration), all 5 TV stations have sufficient sample size for analysis. They are: Free-to-air TV ¾ TV 1, TV 2, TV3 and NTV7 Subscription TV ¾ ASTRO

1 • The following table outlines the key findings:

BROADCASTING – CUSTOMER HIGH PRIORITY MOST OFTEN TV STATIONS SATISFACTION AREAS TO WATCHED TV INDEX (CSI) – IMPROVE STATIONS BY ( 1- 10 SCALE) (IMPORTANCE ADULTS IN AND CSI) MALAYSIAN HOUSEHOLDS %

FREE-TO-AIR TV

• Transmission Quality TV 1 7.22 31

• Content quality

TV 2 6.91 • Content quality 33

TV 3 7.44 None 83

NTV 7 7.20 None 42

SUBSCRIPTION TV

ASTRO 7.42 None 9

FREE-TO-AIR TV STATIONS • On national level, TV 3 is the most often watched free-to-air channel in Malaysia; followed by NTV 7, TV 2, and TV 1. All TV stations except TV 2, have CSI score above 7. TV 2’s CSI score is lower, at 6.91.

SUBSCRIPTION TV STATION • Astro's CSI score is 7.42.

2 B. BROADCASTING - RADIO

• The survey covered more than 35 radio stations across Malaysia. 8 stations with highest penetration (sample size of more than 50 for each station) are selected for detailed analysis as follows:

BROADCASTING - CUSTOMER HIGH PRIORITY MOST OFTEN RADIO STATIONS SATISFACTION AREAS TO LISTENED RADIO INDEX (CSI) – IMPROVE STATION BY ( 1- 10 SCALE) (IMPORTANCE ADULTS IN AND CSI) MALAYSIAN HOUSEHOLDS %

ERA 7.86 None 33

RADIO 3 7.54 None 20

• Content RADIO MUSIC 7.80 16 Quality

RADIO 1 7.56 None 13 (Bahasa Malaysia)

MY FM 7.40 None 17

HITZ FM 7.39 None 10

REDIFUSSION 7.21 None 8

RADIO 5 7.38 None 9 (Mandarin)

• ERA is the most often listened radio station in Malaysia (penetration of 33%); followed by Radio 3, MY FM, Radio Music, Radio 1 (Bahasa Malaysia), and

3 Hitz FM (all between 10 – 20% penetration). Redifussion and Radio 5 (Mandarin) have less than 10% penetration. • Overall, the CSI scores for these 8 key stations are above 7.

C. TELECOMMUNICATIONS - FIXED LINE

• The survey shows that fixed line telephone penetration in Malaysia is 69%. • Of those with fixed line telephone at home, Telekom Malaysia, as a fixed line provider, has close to 100% penetration level. • The penetration of TT dotCom, Celcom, Maxis and DIGI is negligible.

FIXED LINE PROVIDER CUSTOMER HIGH PRIORITY FIXED LINE SATISFACTION AREAS TO PROVIDER INDEX (CSI) - IMPROVE PENETRATION IN (1- 10 SCALE) (IMPORTANCE MALAYSIAN AND CSI) HOUSEHOLDS %

• Application process

• Installation TELEKOM MALAYSIA 7.41 100 process

• Repair quickly

• Telekom Malaysia has a CSI score of 7.41.

D. PUBLIC PAYHONES • 98% of the respondents interviewed mentioned that a key concern is the poor functioning of the payphones.

E. TELECOMMUNCIATIONS - MOBILE

• In total, there are 7 service providers covered in this survey.

4 • Time Cel, Celcom (010), and Mobikom have the lowest penetration with small sample size achieved. Hence, detailed analysis focus on the four major service providers which accounted for 96% of the penetration:

MOBILE SERVICE CUSTOMER HIGH PRIORITY MOBILE PROVIDER SATISFACTION AREAS TO IMPROVE SERVICE INDEX (CSI) - (IMPORTANCE PROVIDER (1- 10 SCALE) AND CSI) PENETRATION AMONGST ADULTS IN MALAYSIAN HOUSEHOLDS %

MAXIS 7.39 • Coverage 36

• Coverage

TM TOUCH 7.13 • Capacity 16

• Network Quality

• Coverage

DIGI 6.96 • Network Quality 18

• Capacity

• Coverage

CELCOM 019 6.75 • Capacity 26

• Network Quality

• Maxis (012) has the highest penetration level, followed by Celcom (019), DIGI (016), and TM Touch (013).

5 F. INTERNET

• TM Net has the highest penetration (82%) followed by Jaring (24%). • Maxis Net, Time Net and Celcom Net are still very small; their combined penetration is less than 5%. • The following outlines key findings for TM Net and Jaring:

INTERNET CUSTOMER HIGH PRIORITY INTERNET SERVICE SATISFACTION AREAS TO SERVICE PROVIDER INDEX (CSI) – IMPROVE PROVIDER (1- 10 SCALE) (IMPORTANCE PENETRATION AND CSI) AMONGST ADULTS IN MALAYSIAN HOUSEHOLDS %

JARING 7.4 • Pricing 24

• Ease to log in

• Customer TM NET 6.62 Service 82

• Reliable line connection

III. RESEARCH METHODOLOGY

In brief, the fieldwork was conducted from 1st of February 2001 to 15th of April 2001. Total sample of 2001 was achieved where a face-to-face random interview was conducted throughout the country. The base of the survey is a random sampling, a method used to obtain results that are representative to the population of the country (18 years old and above). The interview length was 30 to 40 minutes.

6 Below is the detailed explanation of this Appendix: 1. Coverage 2. Time Reference 3. Sampling 4. Data Collection 5. Response 6. Quality Control

1. COVERAGE

Geographical Coverage

Geographically, the study covered Peninsular Malaysia, Sabah and Sarawak.

Demographic Coverage

Considering population coverage, only those aged 18 years old and above were covered. It was felt that it is only those in this age group who would be able to understand and provide reliable answers to questions on performance of the various services identified. Thus, the survey would reflect 65% of Malaysia’s population who are 18 years old and above.

2. TIME REFERENCE

The fieldwork for the survey was conducted between February and Mid-April 2001. Thus the data in this report refer to this period.

3. SAMPLING

The survey was a household sample survey. A multi-stage probability sample design was adopted.

7 The lowest area unit with identifiable boundaries is the Electoral District (ED). The EDs, which cover all areas of the country comprehensively, are the basis of the sampling frame. EDs have been created within States and Federal Territory Kuala Lumpur. For the States, selected EDs were designated as “urban” based on their location in the 129 towns which have been classified as urban in 1991 Population Census.1 The definition of urban is as follows:

“Gazetted areas with their adjoining built-up areas which had a combined population of 10,000 or more at the time of the 1991 Population census.”2

The remaining EDs are treated as “rural”.

Since the EDs are of unequal size, they can be selected either with probability proportional to size or subdivided into units of equal size and selected with equal probability. The latter approach was adopted. Each ED was artificially divided in blocks with a measure of size (MOS) of 100 households using the electoral population as a guide. The blocks formed the primary sampling units for the study.

Stratification of primary sampling units was according to state and urban/rural areas. The allocation of the sample among the strata was primarily proportional to the population, but also took in account the expected lower variances in the rural areas/less developed states and related costs and difficulties of transport and travel.

A total of 200 blocks were selected for the survey. The distribution according to strata is shown in Table 1 below.

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Table 1: Distribution of Sample Blocks and Persons

State Blocks Persons Targeted Total Urban Rural Total Urban Rural Kedah 14 6 8 140 60 80 Perlis 2 1 1 20 10 10 Penang 13 11 2 130 110 20 Perak 21 14 7 210 140 70 NORTH 50 32 18 500 320 180 Selangor 31 27 4 310 270 40 K. Lumpur 16 16 - 160 160 - N. Sembilan 8 4 4 80 40 40 CENTRAL 55 47 8 550 470 80 Malacca 6 3 3 60 30 30 Johor 25 14 11 250 140 110 SOUTH 31 17 14 310 170 140 Pahang 12 5 7 120 50 70 Terengganu 9 4 5 90 40 50 Kelantan 13 6 7 130 60 70 EAST 34 15 19 340 150 190 PENINSULAR 170 111 59 1700 1110 590 MALAYSIA Sabah & 18 10 8 180 100 80 Labuan Sarawak 12 7 5 120 70 50 SABAH & 30 17 13 300 170 130 SARAWAK MALAYSIA 200 128 72 2000 1280 720

The penultimate sampling unit was the household defined as “…a group of one or more persons living together who make common provisions for food or other essentials of living.”3 For each sample block households were listed and 10 households were selected based on a systematic sampling. Thus, the sample consisted of 2,000 households. Some of the results are presented at the household level.

The ultimate or elementary sampling units were persons aged 18 years old and above. One person was selected per sample household using the Kish selection

9 grid. The distribution of the 2,000 persons targeted is given in Table 1 above. Most of the results in this report are presented for this sample. The results are presented in proportions and averages (for CSI only). Variances and standard errors were estimated for the CSI and are presented in Table 2 below.

Due to the fact that a sample size of 2001 was used to study five service categories, the sample size for many of the services that had lower incidence levels ended up being very small. A decision was made to present data only for services which had a sample size of 50 or more.4 Thus the results are presented only for 31 services in the five product categories. Also the presentation of the data by urban/rural areas followed the requirement of a minimum sample size of 50.

The relatively small sample size for many of the services resulted in many instances of single cases in the sample blocks. While each case is valuable for the overall result, this fact posed problems of calculating within-cluster variances. It was thus decided to treat the sample as only stratified sampling. Each of the 31 services was treated as a domain of study. Mean CSI scores and associated variances were estimated within domains using standard formulae.5 Strata weights were based on the 1999 mid-year population estimates of the Department of Statistics since the required data from the 2000 Population Census was not yet available.6

4. DATA COLLECTION

The data was collected by face-to-face interviews, which lasted for 30 – 40 minutes using a structured questionnaire.

10 5. RESPONSE

Non-response is an endemic problem in most surveys. Overall there was a 45% non-response, 48% in the urban areas and 38% in the rural areas.

To overcome this problem, random substitutes were done to achieve the sample size of 10 households per block and consequently a random sample of 2001 households.

6. QUALITY CONTROL

The following procedures under the Quality Control System for Interviewing (QCSI) were adopted for the survey:

• All interviewers were briefed by researchers in charge of the survey • No interviewer was allowed to do more than 20% of the sample in order to prevent bias • 20% of each interviewer’s work was validated randomly by Supervisory staff and the Quality Assurance Unit

All questionnaires were check-edited and coded before data capture.

11 ------1 Department of Statistics, Malaysia. (1992). Preliminary Count Report for the Urban and Rural Areas. Kuala Lumpur. (p.58) 2 Ibid. (p. 12) 3 . Department of Statistics, Malaysia. (2000). Preliminary Count Summary. Kuala Lumpur. (The definition here is the general one adopted; see p. 14.) 4 Vavra, T. G. (1997). Improving Your Measurement of Customer Satisfaction. Wheeler Publishing, New Delhi. (As suggested in p. 79) 5 Cochran, W. G. (1977). Sampling Techniques. Wiley. New York. (pp. 142 – 144) 6 Department of Statistics, Malaysia. (2000). Op. cit .

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