Fast-tracking growth by acquisitions?
Ng Wai Mun | 08 Dec 2017 00:30
Digi CEO Albern Murty said Q3FY17 was a strong quarter for the company

With the local mobile telecommunication industry reaching saturation point, it is a daunting challenge to sign up new prepaid and postpaid subscribers.

Hence, “prepaid king” Digi.Com Bhd has an uphill task staying ahead of the game. One strategy could be attracting subscribers from its rivals rather than creating new ones. Another option is to fast-track growth through acquisitions.

To be fair, other telcos are also facing similar challenges. Industry players say the prepaid segment is facing challenging times with subscriber identification module (SIM) card consolidation and a falling foreign worker population, most of whom opt for prepaid over postpaid subscriptions. Moreover, companies like Google, Skype and WhatsApp are competing with telecommunication companies (telcos) by offering similar services.

In the first quarter of 2015, Digi captured “prepaid king” title by attracting 9.9 mil subscribers followed by Celcom Axiata Bhd with 9.5 million subscribers. Today, it still leads the pack.