Packet One Networks Sdn. Bhd.

Introduction

One Networks (Malaysia) Sdn. Bhd. (P1) was launched on August 18, 2008 as a subsidiary of Green Packet Bhd, which is a leading global developer of Next Generation Mobile Broadband Networking Solutions. P1 is Malaysia’s first and leading WiMAX telecommunications company with the country widest WiMAX network and it represents the first large-scale commercial deployment of Mobile WiMAX in Southeast Asia, as well as the first large-scale deployment of an 802. 16e WiMAX network outside Korea. P1 was one of four companies awarded 2. GHz spectrum licenses by the Malaysian Government to deploy WiMax services throughout Malaysia (www. p1. com. my, 2009).

Company’s vision P1 objective is to become the market leader in wireless broadband industry. To achieve that, P1 are now putting their effort on broadening wireless broadband connectivity across the region in order to capture more market. (www. p1. com. my, 2009).

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WiMAX is an abbreviation of Worldwide Interoperability for Microwave Access. It is a standard-based technology enabling delivery of last mile wireless broadband access as an alternative to cable and DSL.

WiMAX enables deliverables of bandwidth between two points or between a point to multipoint to customer. The usage of WiMAX requires certain bandwidth of spectrum to be allocated to the service provider, in accordance to the channeling plan approved and published by Malaysian Communications and Multimedia Commission(MCMC) (www. greenpacket. com, 2008).

Michael Porter 5 Forces

Threat of new entry

Telecom industry is one of the industries which have the biggest barrier to enter. Firstly, to enter this industry requires a lot of cash to cover high ixed equipment and innovation cost (Gupta. A, 2008). Secondly, the ownership a telecom license can be one of the biggest barriers to entry, because government may refuse to give license to operator to operate their business (WiMAXian. com, 2009).

Thirdly, advertisements to create awareness to public are very costly; it is very hard to draw public attention if there is no enough advertisement since there are so many players in Malaysia. Moreover, skilled human capitals are required to operate the business (Gupta. A, 2008). Lastly, high exit barriers scared off investors in get into this business, concluding that the threat of new entry is very low.

Competitive rivalry

As Internet plays a very important role in human’s daily life, most of the people have to in touch with internet every day. So, to attract more subscribers, competitors have to lower down their price and provide more benefits in order to survive since they have invest an enormous capital in this business that with high exit barrier due to its specialize equipment. There are more than 10 internet service providers (ISP) in Malaysia.

Normally, new carriers are used to take low price strategy to attract customers, which lead to a price war (wwwen. zte. com. cn, 2010). Besides that, these ISP do their promotion and advertising frequently as everyone in major city can see it every day and everywhere. The fierceness of frequent advertisement had leaded to an advertising war between P1 and Streamyx in 2009 (Risen. J, 2009). Moreover, High customer churn rate shows that any unsatisfaction in term of speed, stability and price will cause customer to switch to other service provider (Gupta. A, 2008). It may conclude that the competitive rivalry in internet industry is highly intensive.

Bargaining power of buyer

With the increased choices of broadband service in Malaysia, the bargaining power of buyer is rising; this leads into customers seeking low prices but have better services. On the other hand, the switching cost from one to another Internet service provider is relatively low, customers can switch to other service provider easily, and this enhanced the bargaining power of buyer.

Bargaining power of supplier

P1 need to have sets of specialize hardware and software equipment to run their business. From hardware (Base station, CPE, Antenna, Cooling system and etc) to software (Billing software, Network Monitoring, Test Software), there are enough number of suppliers weaken bargaining power. As a conclusion for the bargaining power of supplier, it is average as P1 have many other options (www. wimax-industry. com, 2009).

Threat of substitution

High substitution threats from non-traditional telecom industries’ product and services, for example: Cable television verses Satellite television, Internet telephony verses traditional voice calls (Gupta. A, 2008).

Segmentation Targeting and Positioning

Target Market P1’s target markets are metropolitans who seek for convenience lifestyle.  Positioning P1 had positioned WiMAX as a 4G technology that is superior to High Speed Packet Access (HSPA) and 3G technologies, which are the fastest, conveniences, stable wireless broadband network in Malaysia. Thus, P1 had done a “Potong (Cut) Now” campaign to encourage public to free themselves from hassles, frustration and any other unsatisfying broadband services. (www. p1. com. y, 2009)

Marketing Mix

The core product that P1 provided is internet connection service. There are two supporting products for people to connect to internet provided by P1 which are Wifi-enabled Desktop Modem and Portable Modem WIGGY; it can be diversify into many plans.

Wifi-enabled Desktop Modem Wifi-enabled Desktop Modem allows several users to connect to internet at the same time by WLAN technology. There are 5 standard plans which are categorized into two major plans: Home and Office. (www. p1. com. my, 2010) For Home, it can be divided into 3 plans which are LITE, PLUS and PRO. The “LITE” plan connection speed is 400kbps and usage threshold are setting at 5GB. The “Plus” plan provided 1. 2 Mbps connection speed with 20GB usage threshold. The “PRO” plan provided 2. 4 Mbps connection speed and usage threshold are setting at 40 GB. (www. p1. com. my, 2010) Whereas for Office, are divided into Standard and Premium. The “Standard” plan provided 1. 2Mbps Internet connection speed and enjoying unlimited usage threshold. The “Premium” plan provide 2. Mbps internet connection speed and enjoying unlimited usage threshold by unlimited as well. (www. p1. com. my, 2010)

Portable Modem WIGGY Unlike Wifi-enabled Desktop Modem, there are only two major plans for Wiggy which is Wiggy 69 and WIGGY*. Wiggy 69 provide 800kps connection speed, allowing 5GB of usage threshold. Whereas for WIGGY*, provided speed up to 10mbps with usage threshold 10GB (www. p1. com. my, 2010). 4. 2 Price P1 had offered a “stimulus package” which is RM 49 per month to attract the new broadband users and students.

Another competitive package includes WIGGY with RM69 and RM149 per month. In the below, the table shows that the competitive prices between P1 and Streamyx. [pic] Table 1 – P1 W1max [pic] Table 2 – Streamyx Table 1 and table 2 shows the prices of P1 WiMAX and Streamyx according to the prices. From here, it shows that P1 keeping the price to be balance with others competitors, which Streamyx are provide “Streamyx 2. 0Mbps” package with price RM 188, and P1 are provide the plan “PRO 2. 4Mbps” with price RM 199. (www. p1. com. my, 2010 and www. Streamy. com, 2010).

The prices of all plan set by P1 almost the same with others competitors because P1 believes in an “honesty policy” in which the subscriber knows upfront which speed and price is worth for them. Thereby, P1 not only keeps the price balance but also increases market share and influences the local market. (www. p1. com. my, 2010)

Place States and places had covered by P1 are Kuala Lumpur, Johor Bahru, Kuantan, Selangor, Perak, Pulau Pinang, and Perlis. P1 are planning to roll out its Wimax Services in the state which still haven’t covered by P1 that include Kuala Terengganu, Melaka, Sabah and Sarawak. www. p1. com. my, 2010) P1 recruit resellers to provide registration service in different state and areas that including Perak Ipoh, Pulau Pinang Butterworth, Johor Batu Pahat, Kuala Lumpur Putra Jaya and many other places which covered by P1 WiMAX coverage. (www. p1. com. my, 2010)

On the other hand, P1 Green Packet’s headquarter located beside the Federal Highway in KL, it also houses their customer service center to provide reception service for customers come to registration with P1 Modem, require information, make payment, and others. (www. hot-screensaver. om) Lastly, internet also plays as an important part for P1 as play strategy, customers can make registration and bill payments are P1 official website. (www. p1. com. my, 2010)

Promotion P1 has paid more attention to brand image promotion, and there are variety of promotions provided by P1 to attract more customers that involved P1 likes to attend different kinds of industrial exhibitions, seminars and summits, and make speeches to promote P1’s brand (wwwen. zte. com. cn, 2010). Besides that, P1 had also promoted their services through advertisement. It features with three conventional forms of media which are television, newspaper, and radio.

People Externally, P1 recruit resellers to promote and persuade customer to subscribe P1 Wimax internet connection services. Customer can find P1 WiMAX reseller easily as long as they are under P1 services coverage (www. p1. com. my, 2010). Internally, P1 hire formal receptionist to serve customers at their headquarter-PacketHub reception. Moreover, P1 also hires operators for customer care line to serve call in when customer encounter problems or need advance information. The operation hours of P1 Customer Care Line starting from 8a. m to 11p. m, it also available on public holidays. (www. p1. com. my, 2010)

Process P1 payment can make by online bill payment, auto debit, cheque payment and phone-in payment. Online bill payment allows customers to pay online by using Visa/MasterCard, Banks Savings and Current Account. Customer also can use Auto Debit/Auto pay system to do payment, it is an automatically system that will deduct customer bank savings or current account on a fixed schedule.

It is for sure that customers can use cheque payment method to pay for their bill; this is the very common way to make payment. Moreover, there is an option for customer to pay by phone-in payment, but only for MBF credit card holder and Visa/Master card holder (www. p1. com. my, 2010).

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