Mobile Business is Competitive

The result of the second 3G spectrum tender last week was unexpectable. Digi which has just given out dividens to it's share holder recently is now facing a great impact. The share droped 10% on the same day. Besides, thenew interconnection rates for both mobile and fixed line services definitely benefit the Giant Celcom.

However, the ministry directed MiTV Corporation Sdn Bhd and Time dotCom Bhd to work with the unsuccessful bidder, DiGi Telecommunications Sdn Bhd, and other service providers as a mobile virtual network operator (MVNO) to achieve a "win-win situation".

The mobile business in Malaysia has been very competitive and the 'Red Ocean Strategy' must come to an end.The 3G is a must to survive as it brings uniqueness to the license holders. The Malaysia's 3G is still at the begining stage and there are definitely more to explore and more demand from consumers.

Think twice and do some analysis before invest in telco shares as there are still uncertainty.