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FOREWORD

On behalf of the Malaysian Communications and Multimedia Commission (SKMM), it

is my pleasure to present to our readers the Communications and Multimedia Market

and Financial Review for the third quarter of the year 2007. The Review discusses

communications and multimedia (C&M) market trends and performance, includingrelative market trends and company performances through comparatives and analysis.

This report provides a snapshot of the economic status of the country, and the market

and financial position of the C&M industry. The report also comprises a discussion on

advertising expenditure of the country; a snapshot of 3G services development and

trend, including a discussion of the status in Malaysian context and an article on

Malaysia initiatives for Mobility in television. Also discussed are the market and

consumer requirements for mobile television; the trends in IT impacting telecoms

services delivery; and a brief on latest considerations in the VoIP service industry.

If you wish to refer to this and previous issues of the quarterly publication, these can

be obtained from the SKMMs website at:

http://www.mcmc.gov.my/what_we_do/Research/financial_review.asp

I trust the publication will be useful to all our stakeholders including the Government,

Industry Players, Educators, Consumers and the Public.

To improve this publication in the future, we welcome any comments, enquiries,

suggestions and feedback on the information presented in this Bulletin. Please send

them to webmaster@mc.gov.my

Thank you.

Datuk Dr. Halim Shafie

Chairman

Malaysian Communications and Multimedia Commission (SKMM)

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Strong Recovery From Market Dip (pg 4)The KLCI achieved a high at 1,392.2 on 24 July2007 a high for the year 2007 so far. This isdue to overall positive sentiments on govern-

ment RM200 billion five year developmentplan, high commodity prices and pro businessmeasures.

C&M Market Capitalisation Down (pg 5)C&M market capitalisation as at 3Q-07 waslower at 6.1% or RM63 billion compared to6.5% or RM68 billion (excluded Maxis for com-parison purposes) reported in 1H-07. Overall,this may be due to the share price declines forTelekom, ASTRO, Pos Malaysia and DiGi in theperiod concern.

Time Share Second Best after DiGi (pg 7)Time was the best performer based on shareprice gain of 13.3% or RM0.1 from RM0.8 pershare in June 2007. This is second to DiGi thathas share price gain of 27% from RM0.7 pershare at end 2006 to RM0.9 at end September2007.

C&M Sector 3Q-07 Revenue at RM26.4 Billion (pg 10)Overall, the C&M sector revenue grew 11.2%from RM23.8 billion in 3Q-06 to RM26.4 billionfor 3Q-07. Telcos command lions share of 87%(RM23.0 billion); broadcasting 8.7% (RM2.3

billion); postal 2.5% (RM0.6 billion); others1.8% (RM0.5 billion). Total overall revenue esti-mated at RM35.2 billion after annualising(FY2006:RM31.7 billion).

Domestic Demand Steady (pg 11)Favourable domestic economic conditions lendresilience to cushion the softening externaldemand. GDP growth for 3Q-07 is expected tosustain at pace of 2Q-07 at 5.7%. Near termoutlook is positive given private consumptionand domestic demand robust on strong servicessector. Consumer sentiment and business con-fidence are positive while cautious.

Malaysian Adex 3Q-07 at RM3.9 billion (pg 13)Adex grew 12.3% from RM3.5 billion in3Q-06 to RM3.9 billion in 3Q-07. Adex in thirdquarter 2007 was RM1.5 billion (2006 at RM1.3billion). This was due to the countrys 50thIndependence Merdeka celebration nationwidein August.

Cinema and Outdoor Highest Revenue Gainersfor 3Q-07; Media Prima and Star RFM Tie interms of Market Share (pg 14)Cinema and the radio mediums both recordedthe highest growth of 36.4% and 31.4% res-

pectively from the same period last year,arriving at adex of RM19.5 million and RM178.1million respectively. In the radio segment, AMPchannels leads at 67% in market share; Media

Prima and STAR RFM tie at 13%; followed byRTM channels at 7%.

Malaysia on Trials for Mobile TV (pg 18)Mobile TV standard in Malaysia is not yet ascer-tained. Trials are underway for the standardsT-DMB, MediaFLO and DVB-H. South Korea andJapan have proven that adopting a singletechnology reaped benefits for their mobile TVmarket.

The Market for Mobile TV (pg 20)Mobile TV is in its infancy. There is need to

grow it via an ecosystem of operator, contentprovider and handset maker.Mobile TV is seeneventually as pervasive as traditional TV com-plementary segments of mobile and fixedTV. Content providers are learning new deliveryplatforms for opportunities such as CNN thatkeeps up with new technology; partnerships inecosystem from news generation to handsetmakers.

Trends In IT Impacting Telecoms Delivery (pg 26)Telecoms companies are undergoing a para-digm shift in their strategy from acquisition of

assets such as hardware, software and servicesfrom IT perspective, to acquisition of access interms of content, storage and network. Theoffering of technology products as a service isseen as IT companies adapting to the changingtelecoms environment.

VoIP Trends (pg 28)Asia Pacific is expected to drive future VoIPgrowth, with the bulk of the subscribers inJapan, Korea and China. Meantime, industryanalysts forecast Malaysia VoIP revenue growthas between 16% and 20% in the year 2006 to2011.

3G Developments A Snapshot (pg 31)The 3G space on global basis is excited with thedevelopments of Femtocells that is expected tointroduce significant cost savings on 3G deliveryto the homezone. WiMAX going under theumbrella of IMT 2000 technology has implica-tions, especially in Europe in terms of morespectrum availability. In Malaysia, enhanced 3Gservices in HSDPA are propelling new dimen-sions to the 3G business, albeit at a relativelysedate pace. The Malaysian target is to achievefive million 3G subscribers by 2010 (3Q-07: 1.06milion subscribers).

SUMMARY HIGHLIGHTS

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C&M MARKET

Source: Bloomberg, SKMM

Bursa Malaysia %Market Indicators Dec-06 3Q-07 Change

KL Composite 1,096.2 1,3336.3 22

Second Board 92.0 105.8 15

MESDAQ 119.9 122.9 3Average Daily Turnover

Volume (million units) 801.1 1,618.3 102

Value (RM million) 1,017.4 2,321.6 128

Market Capitalisation(RM billion) 848.7 1,031.3 22

Strong Recovery from Market Dip

The Malaysian market barometer, the Kuala Lumpur Composite Index (KLCI), achieved a high at

1,392.2 on 24 July 2007, which is also a high for the year 2007 so far. This was supported by overall

positive sentiments such as the government RM200 billion five-year development activities, high

commodity prices and pro business measures.

However, the local market took a hefty dip towards mid-August and on 17 August 2007 posting a

low of 1,191.6 points (down 14% or 200.6 points from the recent high) due to global credit market

uncertainty. Fortunately, the local market recovery was speedy upon strong local fundamentals and

the U.S. Federal Reserve unexpectedly cutting the US discount rate on 20 August 2007.

Overall, the performance of overseas markets still factor as a sensitive concern on local trade. One

of the main reasons for this is the underlying concern of losses from the US sub-prime mortgage

market loans. The Malaysian market over the longer term has support from positive factors such

as the government seeing to rolling out projects under the Ninth Malaysia Plan under anexpansionary fiscal budget, spreading economic development throughout the country via the

Iskandar Development Region the new main southern development corridor in Johor and the

Northern Corridor Economic Region for socio-economic and industrial development in Kelantan,

Terengganu and Pahang.

Sour ce: Bursa Malaysia, SKMM

No. of Companies Listed

Bursa Malaysia Dec-06 3Q-07

Main Board 649 642

Second Board 250 233MESDAQ 128 126

Total No. of Co. Listed 1,027 1,001

25

20

15

10

5

0 2006 1Q-07 2Q-07 3Q-07

22

10

8

1

3

5

3

5

9

12

43

No.ofCompanies

Main Board Second Board MESDAQ

New Listings 2006 to 3Q 2007

Index

Index

KLCI 1Q to 3Q 2007 KLCI 3Q 2007

Jan Feb Mar Apr May Jun Jul Aug Sep Jul Aug Sep

1,450

1,400

1,350

1,300

1,250

1,200

1,150

1,100

1,050

1,000

IndexLast Price 1,336.30High 24/07/07 1,392.18Average 1,284.95Low 11/01/07 1,106.06

IndexLast Price 1,336.30High 24/07/07 1,392.18Average 1,317.63Low 11/01/07 1,191.55

1,450

1,400

1,350

1,300

1,250

1,200

1,150

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Note: Excluding Maxis market capitalisation for comparison purposesSource: SKMM, Bursa Malaysia, Bloomberg

* For t hird quarter ended September 2007, no Maxis market capitalisation due t o delistingNote: Only large companies are included in the market capitalisation aggregationSource: SKMM, Bursa Malaysia, Bloomberg

C&M Market Capitalisation Down Slightly

Total Bursa Malaysia market capitalisation was RM1,031 billion at end September 2007.

The communications and multimedia companies comprising the major public-listed telecommuni-

cations companies, the broadcasting sector and post, altogether captured RM63 billion in market

capitalisation or 6.1% of the Bursa Malaysia market capitalisation in the same period concerned.

This C&M market capitalisation is lower compared to 6.5% or RM68 billion (excluded Maxis for

comparison purposes) reported in 1H-07. The market capitalisation of Maxis was RM38.8 billion on

22 June 2007 the last trading day before delisting on 25 June 2007. Overall, this is due to share

price decline of Telekom, ASTRO, Pos Malaysia and DiGi during the period concerned.

Telekom lackluster share price movement could be due to dampening sentiments from its overseas

operation such as Dialog Telekom Ltd in Sri Lanka (facing interest rate hike due to political

turbulence) and Excelcomindo in Indonesia affected by mobile phone rates cut. ASTRO trade

perhaps dampened by increased churn rates; high programming cost and losses from 20% ownedSun Direct TV in India as well as from its Indonesian venture. Pos Malaysia traded lower after the

effects of capital repayment; lower revenue posted from mail and logistics division, and losses in

Transmile Group Berhad.

C&M Others on Bursa Malaysia

C&M Companies Market Capitalisation versusBursa Malaysia Market Capitalisation

Dec-06 Mar-07 Jun-07 *Sep-07

1,200

1,000

800

600

400

200

0

RM

(billion)

761

87.3

891

93.8

981

106.8

969

62.7

61.6 63.7 68.0 62.7

C&M Others on Bursa Malaysia

C&M Companies Market Capitalisation versus

Bursa Malaysia Market Capitalisation (Excluding Maxis)

Dec-06 Mar-07 Jun-07 Sep-07

1,200

1,000

800

600

400

200

0

761 891 981 969

RM

(billion)

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C&M MARKET

Individual C&M Companies Contribution to Bursa Malaysia

Compared to first half 2007, only Time posted increased market capitalisation by 14.3% to RM2.4

billion. The rest of the C&M companies posted decreased market capitalisation as follows: Telekom

loss 5.38% or 1.9 billion, DiGi loss 6.93% or 1.2 billion, ASTRO loss 21.8% or 1.9 billion, Pos Malaysia

loss 27.2% or 0.6 billion while Media Prima loss 4% or 0.1 billion.

Source: SKMM , Bursa Malaysia, Bloomberg (Chart above excludes Maxis market capitali satio n f or compari son purpo ses)

Source: SKMM, Bursa Malaysia, Bloomberg

Individual C&M Companies Contribution to Bursa MalaysiaSeptember 2007

Bursa Malaysia = RM1,031 billion

Others onBursa Malaysia

93.9%

Communications &

Multimedia SectorRM62.7 billion

Telekom 3.2%

DiGi 1.6%

ASTRO 0.7%

Pos Malaysia 0.2%

Time 0.2%

Media Prima 0.2%6.1%

Individual C&M Companies Contribution to Bursa MalaysiaJune 2007

Bursa Malaysia = RM1,049 billion

Others onBursa Malaysia

93.5%

Communications &Multimedia Sector

RM68 billion

Telekom 3.4%

DiGi 1.6%

ASTRO 0.8%

Pos Malaysia 0.2%

Time 0.2%Media Prima 0.3%6.5%

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C&M Companies Share Price Movements

* All dat a report ed for M axis Commun ication s Berhad is unt il 22/06/2007n.a.: not availableSource: SKMM, Bloomberg

Maxis share was priced at RM15.20 on 22 June 2007, before its delisting date on 25 June 2007. This

is 77% and 49% higher compared to end June 2007 and end December 2006 respectively. The

taking of the public listed company private is said to be one of the global phenomenon in mature

markets as the bottom line is profit. Apart from that, Maxis delisting is part of being free from

encumbrance that slows down decision making process that comes along with being a listed

company. Of all, Maxis cited the main reason as being to service the fastest growing mobile

markets currently such as India and Indonesia whereby the number of handphone users is low.

DiGi is the top in terms of share price gain of 41% or RM6.30 from RM15.20 as at end 2006, but it

posted a loss of 6.5% at RM21.50 per share as at end September 2007 from June 2007. This may be

partly due to negative factors dampening sentiments such as intense competition between players,

potential price war in view of new 3G players. Other reasons could be positive second quarter

profit on talks of a strategic partnership plan and newly introduced competitive pricing package.

Time on the other hand, was the best performer based on share price gain of 13.3% or RM0.11

from RM0.83 in June 2007. In total Time share has gained 27% from RM0.74 per share at end 2006

to RM0.94 at end September 2007. Volume of trade was overall active with 17.9 million units

traded.

Ringgit-wise, Telekom share price was down by RM0.60 (5.8%) to RM9.70 per share; ASTRO loss

RM0.94 (21%) to RM3.54 per share while Pos Malaysia loss RM1.16 or 7.8% to RM3.02 per share.

There was a period of time from 7 August 2007 to 27 August 2007 that Pos Malaysia share trading

was temporarily halted due to pending announcement of a capital restructuring exercise that

included Pos Malaysia Berhad (PMB) being listed in place of Pos Malaysia & Services Holding Berhad

(PSH) on the main board of Bursa Malaysia. This exercise was completed on 28 August 2007.

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C&M MARKET

C&M Amongst Other Heavyweights

Now, only TM shares feature amongst the large market capitalisation stocks of Bursa Malaysia after

Maxis delisting. TM stands at number seven in terms of market capitalisation amongst Top 10

heavyweights. The next biggest C&M market capitalisation company in our list is DiGi at RM16.1billion which is ranked at number 11.

Source: SKMM, Bloomberg

Source: SKMM, Bloomberg

Communications and Multimedia Companies PerformanceJanuary to September 2007

200

180

160

140

120

100

80

60

40

Jan Feb Mar Apr May Jun Jul Aug Sep

DiGi

ASTRO

Media Prima

Time

Telekom

Pos Malaysia

Pos Malaysia ASTRO Media Prima Telekom DiGi Time

%

Change:Base29December2006

C&M Among Top 10 HeavyweightsJanuary to September 2007

Maybank

Tenaga

Telekom

MISC

BCHB

Public Bank

Genting

IOI

Sime Darby

Petronas

Market Capitalisation (RM billion)0 5 10 15 20 25 30 35 40 45

42.8

40.9

37.2

36.1

36.0

35.0

33.4

29.8

26.2

22.0

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Local C&M versus Overseas by Market Capitalisation in US$

Companies Country Main BusinessMarket Capitalisation (US$ billion)

Dec-06 Sep-07 % Change (9 months)

China Mobile Hong Kong Wireless 172.2 328.0 90.5

NTT DoCoMo Japan Wireless 73.9 65.5 -11.4

China Telecom China Wireline 44.3 61.1 37.9

BT Britain Diversified Wireline 48.9 50.7 3.7

Telstra Australia Diversified Wireline 40.6 48.3 19.0

Sing Tel Singapore Diversified Wireline 34.0 43.1 26.8

KDDI Japan Diversified Wireline 30.0 33.3 11.0

China Unicom Hong Kong Diversified Wireline 18.5 28.2 52.4

China United China Wireline 12.7 26.4 107.9

Telekom TBK Indonesia Diversified Wireline 22.5 24.3 8.0

Chunghwa Taiwan Diversified Wireline 18.0 19.9 10.6

SK Telecom Korea Wireless 19.4 18.7 -3.6

KT Corp Korea Diversified Wireline 14.0 14.0 No changePLDT Philippines Wireline 9.8 12.2 24.5

Maxis Malaysia Wireless 7.3 Delisted n.a.

Telekom Malaysia Diversified Wireline 9.4 9.8 4.3

KT Freetel Korea Wireless 6.4 7.1 10.9

Taiwan Mobile Taiwan Wireless 5.1 6.8 33.3

Telecom Corp New Zealand Diversified Wireline 6.8 6.1 -10.3

Far Eastone Taiwan Wireless 4.4 4.9 11.4

DiGi Malaysia Wireless 3.2 4.7 46.9

Indosat Indonesia Diversified Wireline 4.1 4.6 12.2

PCCW Hong Kong Diversified Wireline 4.1 4.5 9.8

Globe Philippines Wireless 3.3 4.3 30.3

VSNL India Wireline 2.7 3.1 14.8LG Telecom Korea Wireless 2.9 2.8 -3.4

Dacom Korea Wireline 1.7 2.5 48.0

MTNL India Diversified Wireline 2.0 2.5 25.0

ASTRO Malaysia Satelite Pay-TV 3.0 2.0 -33.3

Excelcomindo Indonesia Wireless 1.8 1.6 -11.5

MobileOne Singapore Wireless 1.4 1.2 -14.3

True Corp Thailand Diversified Wireline 0.6 0.8 25.0

Smartone Hong Kong Wireless 0.6 0.7 20.0

Time Malaysia Wireless 0.5 0.7 32.1

Media Prima Malaysia Commercial Free-To-Air TV 0.5 0.7 27.8

Pos Malaysia Malaysia Postal Services 0.73 0.48 -34.2

TT&T Thailand Diversified Wireline 0.09 0.12 33.3

CSA Malaysia Diversified C&M 0.06 0.11 83.3Hutchison Australia Wireless 0.13 0.10 -23.1

GD Express Malaysia Courier 0.05 0.05 No change

REDtone Malaysia Discounted Call Services 0.041 0.042 2.4

MoBif Malaysia Internet Telephony 0.034 0.029 -14.7

asiaEP Malaysia Internet Application Software 0.013 0.025 92.3

Nationwide Malaysia Courier 0.020 0.018 -10.0

NasionCom Malaysia Web Portals / ISP 0.040 0.012 -70.0

AKNM Tech Malaysia Internet Content / Entertainment 0.011 0.009 -18.2

EB Capital Malaysia Internet Connectivity Services 0.005 0.009 80.0

Palette Multimedia Malaysia Diversified C&M 0.006 0.008 33.3

MNC Wireless Malaysia Diversified C&M 0.006 0.006 No change

Airocom Tech Malaysia Wireless 0.006 0.004 -33.3Intelligent Edge Malaysia Enterprise Software Services 0.004 0.004 No change* * Delisted on 25 June 2007n.a.: not availableSource: Bloomberg, SKMM

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GDP Growth Forecasts 2007 2008 2009

Malaysian Institute of Economic Research (MIER) 5.7% 5.4%

Economic Intelligence Unit (EIU) 6.0% 5.8% 5.9%

Revenue growth is mixed among the companies in the telecommunications sector. At RM13.1

billion, TM holds the lion share of 57% of total telecommunications sector revenue market share

and 49.6% of total C&M revenue market share. While Maxis and DiGi continued to post positive

growth in revenue, Time revenue trailed on the decline of voice and payphone usage.

In the broadcasting sector, advertising revenue in the third quarter was boosted by the 50th

Merdeka or National Independence Day celebrations. Media Prima advertising revenue was

augmented by strong contributions from TV9 and significantly higher revenue contributions from

its radio networks. Overall, Media Prima posted the highest revenue growth of 26.8% among the

companies reviewed for the last nine months.

Meanwhile, ASTRO (adjusted for financial year end) revenue grew by 9.9% to record RM1.8 billion

in revenue for the nine months ending September 2007. The pay-TV services providers subscription

service was further enhanced by new channels as well as the newly launched Astro-On-Demand

service.

Pos Malaysia group capital restructuring exercise was completed in August 2007 wherein Pos

Malaysia Berhad has taken over the listing status of the now de-listed Pos Malaysia & Services

Holdings Berhad. Pos Malaysia reported strong performance in its mail and courier business.

Overall revenue grew 4.3% Y-o-Y.

Annualised, the overall C&M sector revenue for 2007 is about RM35.2 billion, an indicative 11%

growth from the industry revenue for 2006 of RM31.7 billion.

Malaysian Economic Snapshot

Following a better than expected results for the first half of the year which averaged 5.6%

(1H-06:6.1%), third quarter expansion is expected to be maintained at a similar rate. Government

spending mainly fuelled demand on the domestic front while services led growth among the

economic sectors. Mergers and acquisitions also dominated the finance and business landscape.

Among the highlights was the move to privatise Maxis Communications Berhad early on in the

year, culling about 4% of Bursa Malaysias market capitalisation upon delisting in July 2007.

Growth in the second half of the year is not expected to outpace that of the first half. The

Malaysian economy showed resilience when it was buffered by favourable domestic economic

conditions against the serious liquidity and credit crunch in July and August triggered by the US

sub-prime mortgage crisis that impacted other economies.

GDP growth for third quarter is expected to be available in late November. Meanwhile, a

Bloomberg survey of economists produced a median of 6% GDP for the third quarter compared to

a more moderate 5.7% by MIER.

Source: MIER, Bloomberg

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C&M ECONOMICS

The services sector supported by stronger tourism activities is expected to sustain its upward

growth trend for 2007, offsetting the deceleration in the manufacturing sector. Private

consumption held strong as household spending remains resilient despite rising prices. The

construction sector is expected to register a positive growth this year spurred by projects under theNinth Malaysia Plan and investment influx into the development of regional growth corridors.

While the Malaysian Institute of Economic Research (MIER) maintained its forecast for GDP growth

in 2007 at 5.7%, the economic think tank stated that possible higher oil prices and inflation may

impact economic expansion next year, prompting it to revise downwards its forecast for 2008 from

5.8% to 5.4% in anticipation of moderation from weaker US demand and overall slowing growth

of major economies.

MIER surveys on Consumer Sentiments (CSI) and Business Confidence (BCI) reflected modestly

optimistic sentiments in comparison to last year. The BCI dipped slightly in third quarter 2007 from

122.1 points to 117.5 points but is higher than 107.8 points in third quarter 2006. The CSI climbedmarginally from 115.9 points to 117.5 points reflecting a still upbeat sentiment amidst more

cautious spending.

Monetary and interest rate policies remain stable and supportive of growth. Headline inflation as

measured by the Consumer Price Index (CPI) edged up to 1.9% for October on the back of increased

price pressures due to increased food and commodity prices and public service salary revision. The

CPI for the year is expected to stay in the 2.0%-2.5% range as projected by Bank Negara Malaysia.

The Central Bank has kept the Overnight Policy Rate unchanged at 3.5% reflecting stable credit.

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Sour ce: Nielsen M edia Research Service

C&M ADEX TRENDS

Adex in Malaysia 3Q 2007 Review

General Observation of Adex

The momentum of growth of adex in Malaysia shows improvement every year, from more than

RM3 billion in 2001 to a constant trend of registering more than RM4 billion adex from year 2004

until 2006. As of September 2007, Malaysia recorded RM3.9 billion worth of adex, a growth of

12.3% from the same period last year. Adex in the third quarter 2007 alone was RM1.5 billion, a

growth of 17.4% and 19.8% from previous quarter and last years third quarter respectively. The

third quarter adex also was the highest achieved among the other quarters in review. This could

be due to the countrys 50th Independence Merdeka celebration and in addition, the Visit Malaysia

Year 2007.

Source: Nielsen Media Research Service Source: Nielsen Media Research Service

Adex Comparison

RM

(billion)

Malaysia Adex2001 to 3Q 2007

6

3.23.5

3.7

4.44.6 4.7

3.94

2

0

2001 2002 2003 2004 2005 2006 3Q 2007

January to September Adex2003 to 2007

Quarter-to-Quarter Adex Comparison2003 to 20074,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

RM

(million)

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

RM

(million)

2,638.4

2003 2004 2005 2006 2007

3,173.53,342.2 3,466.0

3,893.6

2003 2004 2005 2006 2007

863.21,080.6

1,125.8 1,176.5 1,280.4

782.3 965.2 1,057.7 1,025.0 1,108.1

992.9

1,127.71,158.7 1,255.7

1,503.8

1Q 2Q 3Q

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C&M ADEX TRENDS

Adex Month-to-Month Trend

Adex moderated in the month ofSeptember. This could be due to the

fasting month season in the Muslim month

of Ramadhan. Adex however, was at its

peak in August, recording RM530 million,

a growth of 12.8% from the month of July.

Newspaper and magazine mediums lost

1.6% and 0.2% of its market share

respectively from last years third quarter,

whereas closest contender, the TV

medium, went up by a percentage. The

radio medium showed an additional 0.7%

slice to register at 4.6% for the current

quarter. Cinema and point of sale

mediums gained a 0.1% slice each, while

outdoor dropped the same.

Market Share and Ringgit Comparison

All mediums registered positive growth as at the third quarter of 2007. Highest revenue gainers

was from the cinema and radio medium, each recorded a 36.4% and 31.4% increase respectively

from the same period in 2006. For the FTA TV group, TV9 registered the highest ad growth from

last years third quarter, at 264%, followed by 8TV at 23.7%, arriving at RM121.2 million and

RM205.3 million respectively. Market share for TV9 jumped 7% higher to 10% while 8TV at a

notched higher to 17%. Other channels showed drop of market share from third quarter 2006.

TV9s ad acceleration could be due to the channels inclusion in ASTRO since December 2006.

Month-to-Month Adex 2007(January to September)

600

349.3

399.7

435.8

470.0

503.3

530.3

448.7

393.2

344.0

500

400

300

200

Jan Feb Mar Apr May Jun Jul Aug Sep

RM

(million)

Adex Market Share1Q 3Q 2007

Adex Market Share1Q 3Q 2006

Cinema0.4%

Radio3.9%

Magazines3.1%

Newspapers59.0%

Newspapers57.4%

Outdoor2.2%

Point of Sale1.0% Television

30.4%

Cinema0.5%

Outdoor2.1%

Point of Sale1.1% Television

31.4%

Radio4.6%

Magazines2.9%

Sour ce: Nielsen M edia Research Service

Sour ce: Nielsen Med ia Research Service Source: Nielsen Med ia Research Service

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Free-To-Air TV Adex

Sour ce: Nielsen M edia Research Service

Sour ce: Nielsen M edia Research Service Source: Niel sen Med ia Research Service

Sour ce: Nielsen M edia Research Service

TV9

3%

NTV719%

8TV16%

TV14%

TV213%

TV345%

TV Adex by Channels1Q 3Q 2007

TV Adex by Channels1Q 3Q 2006

TV9

10%

NTV718%

8TV17%

TV13% TV2

8%

TV344%

TV Adex (January to September)2006 to 2007 Comparison

RM (million)0 100 200 300 400 500 600

1Q 3Q 2007

1Q 3Q 2006

205.3

121.2

224.6

92.4

165.9

33.3

202.4

480.9

545.8

132.0

39.7

34.9

TV1 TV2 TV3 NTV7 TV9 8TV

2,046.4

2,235.2

106.4 113.5 135.5 178.1 14.3 19.5 75.1 81.0 34.1 42.1

Adex Market Share by Medium2006 to 2007

2,500

2,000

1,500

1,000

500

RM

(million)

1,054.21,224.2

Television Newspapers Magazines Radio Cinema Outdoor Point Of Sale

1Q 3Q 2006 1Q 3Q 2007

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C&M ADEX TRENDS

Star RFM radio channels registered the

highest ad growth of 33.7% from the same

period last year. Current market share shows

that AMP radio channels still lead in the

radio adex market at 67%. This is followed

by a tie from Media Prima and Star RFM radio

channels at 13% and RTM at 7%. In terms

of individual radio channels, RTM regional

radio channels showed the highest growth

of ad revenue at 170% from last years third

quarter, followed by KL FM at 75% and

Light & Easy of the AMP family at 65.8%.

Total number of ads received as of the third

quarter was 693,633 with 20,011,261 ads

in seconds. Era FM and My FM, the two Malay

and Chinese based channels, still lead as the

top two highest ad achievers.

Radio Adex

Sour ce: Nielsen M edia Research Service

Sour ce: Nielsen M edia Research Service

Source: Niel sen Med ia Research Service

MediaRM (million) Growth Market Share

No. of Ads Ads in Seconds

1Q-3Q 2006 1Q-3Q 2007 % %AMP (ASTRO) 107.6 119.3 10.9 67 324,131 9,777,160

RTM 10.7 13.2 23.4 7 147,030 3,630,144

Media Prima 22.5 13 106,181 3,273,185

Star RFM 17.2 23.0 33.7 13 116,291 3,330,772

TOTAL 135.5 178.0 100 693,633 20,011,261

Breakdown of Adex by Stations

Media 1Q-3Q20061Q-3Q2007 % Growth

AMP (ASTRO)Era FM 34.3 35.1 2.3hitz.fm 14.1 17.0 20.6Light & Easy 7.6 12.6 65.8Mix FM 18.0 16.2 -10.0My FM 22.6 25.8 14.2Sinar FM 4.6 6.3 37.0THR 5.1 5.2 2.0Xfresh FM 1.4 1.0 -28.6RTMKL FM (RMS KL) 0.4 0.7 75.0Klasik Nasional FM 1.2 0.3 -75.0Traxx FM (RMS 4) 0.6 0.3 -50.0Ai FM (RMS 5) 3.3 4.1 24.2

Minnal (RMS 6) 2.1 1.7 -19.0Muzik FM (RMS Muzik) 0.8 0.4 -50.0Selangor FM (RMS Sgor) 0.3 0.4 33.3Other Regional (RTM) 2.0 5.4 170.0Star RFMredi 988 16.1 21.4 32.9red 104.9 1.0 1.6 60.0Media PrimaFly FM 7.6 Hot FM 14.9 Total 135.5 178.0

hitz.fm

Light&Easy

MixFM

MyFM

SinarFM

THR

XfreshFM

KLFM

(RMSKL)

KlasikNasional

Tr

axxFM

(RMS4)

AiFM

(RMS5)

Minnal(RMS6)

M

uzikFM

(RMS)

SelangorFM

(RMS)

OtherRegional

redi988

red104.9

FlyFM

HotFM

Radio Adex by Stations with Growth(1Q3Q 2006 and 2007)

RM

(million)

%

40 2.3

EraFM

20.665.8

-10.0 14.237.0

2.0 -28.6

75.0

-75.0

24.2

-19.0

-50.0

33.3

170.0

60.0

200

150

100

50

0

-50

-100

32.9-50.0

30

20

10

0

1Q3Q 2006 1Q3Q 2007 % Growth

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Adex by Sector: Communications

The communications sector total ad spend was RM436.5 million, in which the bulk was spent in the

print medium at RM222.9 million, followed by TV at RM153.1 million. Retail sector also preferred

the print medium, with ads spent at RM276.4 million. However, toiletries sector chose the TV

medium for marketing their products through ads, spending RM267.7 million out of a total

RM356.5 million ad spend for this sector. In the communications sector, ads are used in the mobile

line services, creating the highest telco ad platform at RM265.9 million, followed by mobile

interactive services at RM56.9 million. Individually, DiGi topped as the highest ad spending mobile

operator at RM96.7 million, followed by Maxis and Celcom at RM76.2 million and RM67.1 million

respectively.

Communications Sector Adex: Main Telcos Advertising

Communications Sector Adex: Telecommunications CompaniesAdvertisement

Sour ce: Nielsen M edia Research Service

Sour ce: Nielsen M edia Research Service

Sour ce: Nielsen M edia Research Service

SectorTop Ten Advertising by Sectors (January to September 2007)

Total(RM million) Print TV Radio Others

Miscellaneous 536.2 526.7 6.5 1.8 1.2Communication 436.5 222.9 153.1 36.2 24.2Retail 372.0 276.4 65.1 26.1 4.5Toiletries 356.5 68.6 267.7 9.5 10.7Finance 253.1 185.9 40.8 14.2 12.3Automotive 211.7 112.8 68.2 15.7 14.9Beverage-Non Alcoholic 195.4 47.3 123.6 6.8 17.7Foodstuff 186.7 29 134.7 9.5 13.6Government, Social and Political Organisation 170.5 85.1 72.5 9.7 3.1Service 140.1 119.5 12.5 6.7 1.4TOTAL 2,858.7 1674.2 944.7 136.2 103.6

Communications Sector AdvertisingTotal

RM (million) %

Mobile Line Services 265.9 60.9

Mobile Interactive Services 56.9 13.0Phone and Accessories 45.0 10.3

Communication-Corporate Ad 34.5 7.9Internet Service Provider 16.6 3.8

Others 17.6 4.0

TOTAL 436.5 100

Mobile Line Services Advertising RM (million) Print TV Radio Others

DiGi 96.7 44.0 38.3 11.2 3.3

Maxis 76.2 30.6 35.4 9.3 0.9

Celcom 67.1 35.7 25.6 5.0 0.8

TM 15.9 9.6 4.1 2.1 0.1Others 10.1 0.4 0.02 0 9.6

TOTAL 266.0 120.3 103.4 27.6 14.7

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C&M DEVELOPMENTS

Malaysia Initiatives for Mobility in TV

Mobile TV in Malaysia is at a preliminary or infancy stage. Up until now, many initiatives are

underway to realise the service come through. Telcos, broadcasters and government bodies are

gearing up on trials and choosing the appropriate standards for the future of mobile TV in Malaysia.

Network Platforms for Mobile TV

In Malaysia, areas with 3G/EDGE coverage have been able to enjoy TV streaming through their

respective networks. Maxis-ASTRO collaboration is a fine example of mobile TV streaming service.

This service is available from DiGi and Celcom as well. Launched in November 2006, it offers

customers a broad selection of live streaming and customised TV channels combined with easy

channel switching and Electronic Program Guide (EPG). However, looking from the mass market

point of view, satisfaction on image and sound quality, and high demands in terms of service

availability and coverage are what these end-users look for. Alternatively, mobile TV on the

broadcast platform would provide audiences this service availability which also allows the

combination use of TV streaming.

Malaysian Mobile TV Trials

Although trials on DVB-H have been carried out, exposure on other mobile TV standards are also

needed. Most of the leading industry players believe that mandating one single technology will

enhance the growth and success of mobile TV. However, South Korea and Japan has also proven

that adopting a single technology standard has brought huge success to their respective mobile TV

markets in their country. With over six million mobile TV devices sold, captivating and experimenting

their experience to our Malaysian market will give our industry more alternatives to choose from.

Network Platform Technology

Terrestrial(Two way networks)

Multicast Streaming TV WiMAX/Wi-Fi Cellular EDGE/3G-HSPDA/MBMS

Terrestrial(One way networks)

Broadcast TV DVB-H (a family of DVB-T; standards usedfor our FTA)

Media FLO ISDB-T

T-DMB/DAB TDtv DMB-TH

Satellite(One way network)

Broadcast TV S-DMB

Source: Company repor ts

ASTRO U Mobile(formerly known as MiTV Networks Sdn Bhd)Collaboration partner Maxis Nokia

Technology DVB-H and MediaFlo DVB-H

Deployment partner Multimedia InteractiveTechnologies (MIT) (Subsidiaryof ASTRO)

Nokia Siemens Networks (provide MiTVs 018 mobile TV service anend-to-end deployment process which includes implementation,integration, and application development services)

Partner Phones Nokia 6630, 6680 and N70,Sony Ericsson K600i, K610iand Z800i and Motorola V3X;Qualcomm

Nokia N77 (with integrated DVB-H device)

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System Comparisons

Conclusion

While Malaysia has mandated DVB-T as the standard used for Free-to-Air digital TV, mobile TV

standard has yet to be ascertained. Trials are actively being carried out for T-DMB, MediaFlo and

DVB-H. The anticipation of choosing DVB-H as the mobile TV standard is also still vague although

it is within the same DVB family. Given multiple standards to choose from, the question of devices

interoperability remains a debatable subject.

Some industry players see technology factor as not the issue for mobile TV take-up but cite

economic factor as the point to look out for. They believe that content providers and consumers

are the most important factors for mobile TV to accelerate. Perhaps if the industry could look at

commercialising the services or content offered such as adapt content to local culture, interactivity

services and personalizing TV to end-users, and offering these services at affordable packages, it

could capture eyeballs of audiences. Major world events such as soccer and other sport events could

boost this. If this take-up is a success, then probably handset prices could be cheaper.

For Malaysia to create vibrancy in the mobile TV broadcast environment there should be enough

types of mobile TV handset devices in the market. Currently, there are Nokias N77; Samsungs SGH-

P910, 920 and 930; and LGs KU990, KU950 and U960 handset devices for customers to choose from

in Malaysia. In comparison with operator TU Media from South Korea, it has over 75 different

devices in the market for customers to choose from.

*WorldDMB **DVBSource: Selection of a Mobile Technology Selection Factors, Rukmin Wijemanne, ABU, Malaysia Mobile TV Seminar, 27 November 2007

System T-DMB DVB-H MediaFLO MBMS

Channel Bandwidth 1.5MHz 6,7,8MHz 6,7,8MHz 5MHzMain Frequency Bands VHF TV Band, L Band UHF TV Band UHF TV Band 1.5GHz, 2.5GHz

Modulation OFDM OFDM OFDM CDMA

Data rates 1.06Mbit/s 15Mbit/s 11.2Mbit/s

Transport MPEG2-TS MPEG2-TS, IP-basedstandard

MPEG2-TS, IP-based standard

Video Coding H.264/AVC H.264/AVC H.264/AVC,MPEG-4

AMR-WB+

VC-1 (optional) HE AAC

Still Images JPEG, PNG, MNG, BMP andothers

JPEG, GIF, PNG andothers

JPEG, BMP andothers

JPEG, GIF, PNGand others

Low powerconsumption

Narrow bandwidth allows lowsystem clock frequency

Time slicing Partial signaldemodulation

Designed formobile/handheld

Country Korea Europe, trials inAustralia

US Sweden

Trials 30 countries* ~40 countries** No information No information

Technical Assessment Proven technology, multivendor, multi type devices

Proven technology Faster channelchange

Open standard3G

Commercial Services Commercial in some countries Commercial in somecountries

Commercial Commercial

Country Korea, China, Germany* Europe, trials in

Australia

US Sweden

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C&M DEVELOPMENTS

The Market in Mobile TV

While the TV part of mobile TV is seemingly what we are used to, the mobile part of it is a

development only of the last half decade or so. The entrenched cellular, the fixed wireless market,

and nascent mobile broadband are offering opportunities for combined mobile and TV featuring

real-life and immersive user TV experience and on-the-go.

The business of mobile TV requires a content information system and consumers to use the system.

The business needs to adapt to consumer needs so as to create the market presence and the

profitability.

Trends in Demand for Mobile TV1

Demand for mobile TV can be said as a natural user requirement. This is reflected from traits with

use of the traditional TV today. For example, some residences have more than two TV sets andthese are placed in the living room, kitchen and bedroom for convenience of watching TV where

they are. Nevertheless, the mobile element as in hand carry appears to be still a novelty.

Relevant user experience captivates audience, be it pay or free-of-charge on advertisement

sponsor.

Consumer acceptance is seen based on factors such content that meets user expectations; billing

over the handheld terminal, which urges for integrated devices; and price sensitivity in the form of

billing that is transparent, that is, a breakdown of charges for browsing, downloads, and others.

Hutchison 3 Italia has market demand for mobile TV in Italy and apparently users are willing to pay

for it. In August 2006, 3 Italia has more than 719,000 DVB-H customers. Its average revenue per user

(ARPU) is said to be 60% higher than the mobile market average. Various content offerings are

based on suitable pricing model via pay per view model. The company continually reviews price for

best offerings. The company introduced interactivity at end August 2007. For example, Soccer

linked to modem voting; and advising customers to download Ricky Martin songs from website

during his concert. One of the fundamental success factors cited is engaging professionals who are

skilled in telecommunications and television to undertake the companys mobile TV business.

1 This secti on and others have been wr it ten based on p oint s propo unded i n t he Asia Mobil e TV Congress 2007, 11 to 12 September 2007

Source: 3 Italia

3 Italia Media Offerings to Boost Consumer Stickiness

Free channel Basic package (9 channels plus soccer)

Premium package Adult moviesLa3 Live Domestic-made content

La3 Sports Format related to football, weekly matches and championship match

New content Sports (soccer + MotorGP)

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Mobile TV Deemed as Emergent Market

Korea is one of the first countries to provide mobile TV. Its three million mobile TV service

connections, with one million of these paying customers, mobile TV is deemed at best an emerging

market. So far, the entities making money are said to be the technology suppliers and handset

manufacturers. Content providers and network operators have yet to find the fit. For example, in

the case of broadcast TV to handset, the network operators do not own the content. Currently,made for mobile content is a niche market and hence, deemed not as yet able to compete with

traditional broadcasts. Nevertheless, the content providers, network operators and advertisers are

steadfastly monitoring or pursuing to capture market share for mobile TV.

Mobile TV Appeal

Mobile TV itself appeals to the audience for various reasons. As a social currency it serves to

connect among the youth. It offers convenience and search functions for user generated content

(UGC) facilitation. With specific knowledge of each mobile user or user group, targeting to specific

audience or tailor made content can be offered. This is reflected in the fast popularity of

FaceBook not available a year or so ago. Immersive experience also captivates users, for example,

Idol personal diary.

Source: By In-Stat, ABI, NSR, Datamonitor, Informa Telecoms & Media, eMarketer, Strategy Analytics, Gartner, Yankee Group

Common themes on Mobile TV Marketing:

Consumers are happy with free channels

Local content (including language) is appealing

Marketing brands in the country, taking into consideration the specific country or

region lifestyle and culture. Global brands already with traction or is a trusted brand

provide for easier assimilation into the local market. For example, MTV is not one TV,but is marketed as MTV Asia or MTV US.

Source: MTV

Average Forecasts of Global Broadcast Mobile TV Subscribers2006 to 2011

(million)

400

3.4

2006 2007 2008 2009 2010 2011

11.826.0

72.5112.8

335.0

350

300

250

200

150

100

50

0

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C&M DEVELOPMENTS

Effectively, mobile content flexibility in user generated context, especially for youth, is content to

cater to the growing desire for communications. For example, the video is viewed, shared, and

passed on to friends and others in social communion. Content such as Idols, LOST, Desperate

Housewives provides compelling propositions. In this case, the viewers get what they want whenthey want it; get to watch video in shorter clips (of four episodes). Such content can be forwarded

to another viewer as a popular or fan material or shared as common interest pieces for video

conversations.

User generated content (UGC) has garnered tremendous traction among Internet users. It is

reported that the total minutes consumed in Top 100 sites has seen UGC/social net sites increasing

from 3% in April 2005 to 31% in October 2006 - in the period of one and a half years. In contrast,

general Internet usage dropped from 97% to 69% during this period. From a mobile TV

perspective, UGC content needs to provide the ability for user to follow a popular trend within one

vast site. That is, there is no need for the user to change sites when searching or browsing.

Therefore, the website needs to have a wide variety of content to interest all. Therein lies thepopularity convenient to search it also costs less as well, as longer browsing may cost more if

the payment mode is not flat rate.

Mobile TV User Experience

Unique content may be in the form of entertainment, news, lifestyle, economic depending on

where and to whom it is offered. For example, Telefonica Spain offered the Chinese migrant

community CCTV clips on Chinese New Year celebrations through their mobile phone thus, made

up 25% of viewing audience during the festive period. In Hong Kong, unique content is the

interactivity such as during the Hong Kong Quiz show.

Personalisation is an offering users are willing to pay. Traditional push model is not expected to

work in the mobile TV context. Offerings would have to be Internet-like as this type of platform

allows empowerment of the user to find what they want. Content brought to customers need to

be user friendly facilitated by technology such as offerings of several thousand different access

for one game; and billing. So far, with only mobile TV billing directly to operators, there is

limitation to content capacity. In order to maximise uptake and usage, mobile TV should be offered

as a service. For example, 3G started out as a technology funded by Siemens/Nokia, but now it is

seen as a service so that there is room to leverage other profit generating business to fund the

technology.

Mobile TV AdvertisingMobile TV advertising is increasingly seen as an opportunity. Nevertheless, a best way to advertise

is NOT clear yet. Traditionally, revenue is from ads in the channels, for example, TV through

satellite, cable, or broadband. Terrestrial TV ads, however, do not work for mobile TV. One simple

reason, of course, is the screen size. Currently, the infrastructure is not yet there for ad supported

business models to work. Furthermore, traffic is not there yet. So far, adspend is by major brands

only. There is a need for new media budgets to increase dramatically the ad scenario to come for

mobile TV.

In the digital era, there is more room for accountability. There needs to be metrics and

measurements of the success of ads, for example, log files of viewing and purchases. There is a

requirement for education of brand owners of the mobile TV environment, and education of the

practitioners as well.

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Mobile TV as Pervasive as Traditional TV

Mobile TV market is fragmented currently, with pockets of innovation in terms of content.

Worldwide mobile TV market evolution is expected over time a global movement. By 2010, there

is expected a wide state of mobile TV business.

So far, there is no one model for mobile TV business, or sometimes even a model depending on

context of use. Business propositions need to be coupled with dynamism and nimbleness to

respond in a fast changing market environment of mobile TV. The network operator, content

provider, handset or technology provider need to grow the market together as a lot of investments

is required to work out mobile TV. Therefore, there is a need for integration and developments of

an ecosystem.

Mobile TV-Partnership between media content owners and mobile network operators are expected

to present mutual business opportunities. Hence, the current differences existing between media

content owners and mobile network operators need to be sorted out. There needs to be a

common language perspective in order to grow the industry. That is, although the same content,video rights is different for video streaming and for broadcast video through DVB-H.

Peculiarities on mobile ads:

All you can eat service on the go driven by advertising

Provides more engagement for ads, for example search and enter whilewaiting for the search to upload, there is full attention of the user

TV Web banners are not conducive for mobile TV as these are produced for online

media; it is deemed a bad adaptation for ads on mobile TV

Hybrid model of subscriptions and ads to drive growth may not work in the long run

for countries like Hong Kong (nine million population) and Singapore (four million) as

the number of subscribers will run out fast; therefore the model is on advertisements.

Ecosystem: A need for integration and development for mobile TV business

NetworkOperator

ContentProvider Ecosystem

Handset/TechnologyProvider

Advertisers

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C&M DEVELOPMENTS

Content Providers are Platform Agnostic

Content providers do not really care what mobile TV is by definition. This is so as long as it provides

avenue for profitability, i.e., sell their content. Content providers, nevertheless, need to understand

the various platforms and modes on which their content is going to be on air and tailor made

such content accordingly for maximum fit to audience.

Time Warners Mobile TV case is an example of a content provider being able to create customer

stickiness. With CNN news over many platforms and the CNN brand, turnkey products are possible,

including cross platform promotion between TV channel and CNN.com. Today, the CNN brand has

presence in TV news and mobile TV news. The strategy is to retain eyeballs within the CNN branded

destinations. Such branding has provided one stop service for cable and satellite operators, and this

is expected to be so for mobile TV as well, which is a new media in digital.

CNN has formed partnerships in an ecosystem, all the way from new generation to the handsetmakers. CNN wants to keep up with new technology; educate and connect; and expand into mobile

TV market. It deems mobile TV as a long term play, that is, invest now, but no return is expected

seen until five to six years later.

Telecommunications is the fastest global growth market today. However, mobile operators are

cautioned to eventually not only look at driving traffic but also need to strategise for

differentiation (for example, premium content) and building brand, which may be across

mobile exclusively or across all the operators products.

Posers in Mobile TV

Transparency

In order for an ecosystem to work, there is need for revenue share transparency, that is, mobile

network operators need to tell all to all partners. These may be in the form of how many downloads

by user, how many users are watching mobile TV, how many subscribers, usage patterns, and such like

profile of users. This enables content providers to invest for potential markets and create content for

targeted markets that would appeal to advertisers looking for those eyeballs.

Global Standards

There is need for global standards as the technology is inserted in all devices. Open standards are

required so that content can be offered cross-platform. That is, the concept of I pay therefore I have

the right to watch, clip, download, send to friends, and the like can be exercised. Even the digital rights

management (DRM) model may not work on mobile TV as there is broadcast DRM and content

provider DRM. In the end, all the DRM needs to interoperate and the question then is who is to pay

for it? With such issues in mind, it may be more important for the user to have the freedom and mobility

to do what they want.

Synergy between long and short form

The contrast between the long and short form can be distinguished as traditional TV screen as a 60

minute program and the mobile TV screen such as the type for a 6 minute program. Therefore, users

in a mobile TV context would want to control the program. This control is in a different way than UGC,

where users download their videos in a common space for other viewers. This control of programming is

in the form of a preset playlist or a pre-subscriber service. That is, users determine how they want to view

the content.

The mobile TV screen is not a 32 inch plasma screen, but a three inch screen. Therefore, there is a need

to consider user response and consumption behaviour. For example, landscape shots may be less effective

than head shots. This means that a different production concept is required.

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25

Re-purposing TV for handset is equivalent to allow some element of control in watching TV. For example,

if a programme is missed on viewing, the user is able to get a summary or clips on the missed show on

mobile TV. In India, this is family drama, and in Australia, this is big brand TV shows in long form.

Broadcasters get to the audience via the long form or work on the content or brand that they already

know. From there, the long form show is easily broken down into episodes, thumbnails on mobile TV,

for example, DVD environment to web environment. Re-purposed sports could be a video shot after

the main shot or a re-shoot with bigger sub-titles for mobile TV. The 3G/ GPRS offers rich media,

which can offer snack type content or a sport center can offer updates four times a day, keeping

users continuously updated on their favourite events.

Mobile TV Generation Gap

Mobile TV has its generation gaps. For example, users age 40 years plus prefer to watch TV and is likely

to impose similar TV behaviour onto the mobile TV setting. In contrast, the less than 20 year old users,

who do not watch that much TV, usually spend three to four hours on video games. They fully control

the game, and thus tend to develop similar behaviour for mobile TV viewing. In the long run, there is a

need to provide what the next generation wants. That is, the 18 year old of today in five years time will

be in the labour force and they grow up with their cellphones. There is a need for operators, content

providers and all the way to handset makers to be aware of changing trends, and provide the necessary

and relevant game or movie experience to the next generation users accordingly.

Security

User friendliness is deemed an appealing feature for mobile TV. For example, a double click on mobile

screen to download and bill only for that. However, the electronic of this in terms of encryption is not

available as yet.

Mobile TV Going Forward Defining Business Model Interactivity is expected to increase as it evolves going forward, for example, talent time shows;

reality shows.

Mobile content include the whole offering of indoor and outdoor modes. Genre includes current

affairs, sports in short duration content. This is not just mobile TV but mobile video. Snacking type

content is expected to increase, with slicing and dicing of long format content, main suitable for

multiple prime times.

The broadcast platform is expected to see more synergy between the short form and long form. For

example, American Idol in long duration capsule of 30 minutes; and five minute performance for

browsing, and voting type.

Viewing times can change or is more flexible such as users can have the option of snack and vote

in morning, with the long form full time viewing in the afternoon.

Opportunity for advertisers is wider. Advertisements funded programs can increase, for example, 15minutes content totally funded by Coca-Cola.

The change in screen size from traditional TV and mobile TV is expected to be complementary service

to each other. In three years time, mobile TV may have PDA (personal digital assistant) form factor.

Screens are expected to be larger but not more tha four to five inches.

Data rates are expected to be faster (3G to 4G). Access rates is expected to be cheaper into the future

be it on cellular, Wi-Fi or WiMAX.

Expected going forward, the business opening up to third party providers to produce content/access

in cocktail format. Services can be made available or open to anyone who wants to view content.

Telcos should be able to provide quality and HDTV or high definition television. Less wall gardens are

expected with users who want and have more control.

Battery life should be improved with handsets going stylish to suit users lifestyles

Increased vewing time on quality delivery and improved form factor is a boon to content providers,service providers and advertisers.

Ironing out of issues on connectivity, price (for example, phone bills; roaming charges)

Source: Views on Goings Forw ard i n M obi le TV, Asia Mobil e TV Asia Congress 2007, 11 to 12 September 2007

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C&M DEVELOPMENTS

Concluding Word

Finally, the focus for all stakeholders should be on sharing the pie rather than what proportion of

the share of the pie they can obtain. Collaboration is crucial for mutual benefits.

Trends in IT Impacting Telecoms Services Delivery

As telecoms organisations grow today, they are shifting their strategy from acquisition of assets

such as hardware, software and services from IT and other vendors, to acquisition of access in terms

of content, storage and network. This basically can be interpreted as a paradigm shift from

focusing on the element of integration of assets to providing customer centric services. For

example, a call centre managing telecoms data from a diverse set of locations with the support of

IT or getting financial transactions done globally while operating regionally.

Gartner indicates that the trend in IT today is the shift from product to service driven. That is,

previously, IT services supported and differentiated the IT products in a product driven IT

environment. Now, in a service driven context, the IT services lead IT products or is sold as the

service. Further on, in a service driven environment, the service and the content are becoming the

products of IT vendors. For example, IT organisations are beginning to provide Technology as aService, which is a trend 40 years ago. This is in the form of renting out hardware, charging for

service rendered, bundling of software or a software system provided for a fee over a period of

time such as the outsourced payroll process.

IT or technology companies changing strategy from product to service orientation can also be seen

in the marketing of software as a service (SaaS) in a communications environment that is

increasingly impacted by changing consumer behaviour, for example, the generation growing up

in a Web2.0 environment. An example of SaaS is that when a customer buys a licence to use the

software, he or she instead of owning the software, they pay the service subscription for the

software running on the vendors server. Web based e-mail services such as Microsoft Hotmail,

Yahoo, Google work this way, but they are free of charge. Alternatively, text and picture messaging

such as Short Messaging Services (SMS), Multimedia Messaging Services (MMS) and Instant

Messaging (IM) do require customers to pay.

The shift from product to services centric is

believed to have been accelerated by

Business Process Outsourcing (BPO) and

provision of Software as a Service (SaaS).

BPO means a company running the

outsource process elements on behalf of

outsourcer. BPO includes softwares, process

management and the people operating the

service.

SaaS on the other hand means deployment

of software as hosted service and this

accessed over the Internet.

Product Centric to Services Centric

HardwareSoftware

Services

ContentStorage

Network

Consolidationand Convergence

Source: Gartner

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27

Web 2.0 is defined simply as creation of mass connection and monetizing mass connection.

A user is deemed using Web 2.0 application if he or she is using Microsoft Network (MSN), I seek

you (ICQ), Peer-to-Peer (P2P), establishment of a blog, visiting Wikipedia, participation in e-polling

and so on. In terms of monetizing mass connections, more and more software are expected to beavailable on the Internet for immediate access. It is therefore more than a medium for information

access, publication and participation.

In a telecoms environment, the adoption of technology as a service is most likely to be taken up by

startups, content aggregators, telecoms companies pursuing global and regional service strategies,

and those targeting communications services to enterprises. IT companies adapting to the

changing telecoms environment in this way can be seen in the unique case of Apple and its iPhone.

Conclusion

As a result of the mindset shift in the world of IT, the impact of technology as a service is likely to

be felt between two and four years time in the telecom sector. The technologies likely to take

place in the former period are Open Source software, SaaS and BPO while technologies to be

adopted in the latter period are Evergreen subscriptions, Hardware as a Service (Haas), Utility

computing-private, Utility computing-public and Free technology.

Of all the technologies delivered as a service mentioned above, there is a likelihood only for SaaS

to be accelerated in usage between three to four years. It is therefore not enough to target only

for sales of hardware and software, and work on the maintenance following, but there is a need

for specialist orientation to provide expertise in a specific business context to which they are selling

their products and services. Thereby, creating a working relationship to sustain the business on a

long term basis with the customer in reiterative approach of plan, review and execute.

Source: Extract from Gartner i n Consumerisation and Person-Centered Comput ing,Context & Services brief on

Emerging Trends The IT Industry On A Precipice

Source: Extract f rom Gartner i n Strategic Planning Assumpt ions for Go-to-M arket br ief on Go-To-Market Strategies to Achieve and Maintain Growt h

Access to Services

Devices PDA, iPod, Handsets

P2P Communication IM, MMS, Wi-Fi, e-mail, VoIP

Services e-government, Banking, medical consultancy, home security

Content News, tax info, blogs, calendar, music

Market Orientation from Access to Service

From To By Year Likelihood of Occurrence (%)

IT Providers IT Service Providers 2011 70%

IT Technology Products IT Service 2011 60%

Sold of IT Technology to End Users Net-based communities 2011 70%

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C&M DEVELOPMENTS

Brief on VoIP Trends

As we all know that VoIP started off with the word cheap calls in mind especially for inter-national calls. Today, there have been a lot of changes as to new technologies that are booming

enabling VoIP to take off more than what we anticipate. Both businesses and consumers are takingadvantage of the cost savings and new features of making calls over a converged environment.Now what are more demanding is the wireless connection, mobile broadband, and the dual modecellular/voice over Wi-Fi enablement.

Asia Pacific is said to drive future VoIP growth. This is said as countries that take the bulk of the

subscribers are Japan, Korea and China. The highest in terms of subscribers can be seen in Japan

followed by China and Korea.

Japan

Korea

Source: In-Stat

Source: KTF Inc

Subscribers(thousand)

SubscriberGrowth(%)

Japan VoIP Subscribers versus Subscriber Growth

35,000 50

45

40

35

30

25

20

15

10

5

0

30,000

25,000

20,000

15,000

2005

9,447

13,750

17,050

20,470

46

24

2019

16 15

24,300

28,145

32,440

2006 2007 2008 2009 2010 2011

10 ,000

5,000

0

Subscribers(thousand)

SubscriberGrowth(%)

Korea VoIP Subscribers versus Subscriber Growth

5,000

4,000

3,000

2,000

1,000

0

160

140

120

100

80

60

40

20

0

2004

309340

10

662

95

141

102

421,594

3,222

4,576

2005 2006 2007 2008 2009

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China

MalaysiaIn Malaysia the VoIP revenue take up is forecasted to be on the uptrend in the following years. This

could be due to price sensitivity and consumers being more aware of such services at hand. Despite

the expected revenue uptrend, the year on year growth seems to be declining. This on the other

hand could be due to strong competition between players and market challenges.

Source: In-Stat

Source: In-Stat, KTF Inc

Subscribers(thousand)

China VoIP Subscribers versus Subscriber Growth

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

SubscriberGrowth(%)

180

160

140

120

100

80

60

40

20

02005 2006 2007 2008 2009 2010 2011

720

1,950

2,550

3,350

171

31 31 33 3436

4,470

5,985

8,110

Asia to drive Future Growth

Subscribers(million)

2005

9.4

0.7

0.3 0.71.6

3.2 4.62.0 2.6

3.4

China

Korea

Japan

4.56.0

8.1

13.8

17.1

20.5

24.3

28.1

32.4

2006 2007 2008 2009 2010 2011

35

30

25

20

15

10

5

0

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C&M DEVELOPMENTS

Business VoIP Poised for Growth

As developing countries drive the numbers, it is considered that the developed countries drive the

market differentiation and the next leap in the VoIP business. In the US, business VoIP market is

anticipated to takeoff. The Yankee Group predicts this market will grow at a compound annual

growth rate (CAGR) of 31.4% to US$3.3 billion in 2010 (2005: US$840 million). The segment

anticipated to grow most is in the hosted IP space (2005 to 2010 CAGR at 40% to US$1.2 billion

from US$233 million). Service providers are reported to have made acquisitions to establish or

reinforce their position in this space, while others are improving services. Business VoIP is

considered appealing to enterprises because this communications solution allows migration from

legacy systems to a managed IP solution without incurring capital expenditure.

SIP Trend

Sales of mobile phones with active SIP functionality is expected to reach 275 million units in 2007.

Informa Telecoms and Media also indicated that the sales of SIP enabled devices are expected to

increase substantively, and this is also the case of SIP services in its two category of IETF led SIP and

3GPP led SIP services. The table explains the expected subscribers numbers in 2006 and 2012.

Conclusion

VoIP growth does not stop at cheap calls only but is moving to mainstream voice. In fact, it is

therefore heading towards providing higher end services with the integration of new technologies

in the market such as Next Generation Technologies (NGN), Electronic Numbering (ENUM) for VoIP,

Unified Communications (UC), Fixed Mobile Convergence (FMC) and so on.

Source: IDC

Source: Informa Telecoms & Media, November 2007

SIP Sales Anticipated to Takeoff

Devices / Services2006 2012 Remarks

Percent of Total Device SalesThe mobile handset space has SIP featured intotwo variants, namely naked SIP (IEFT SIP) and3GPP SIP (IMS SIP). Naked SIP is widely usedin fixed & mobile telephony, and is consideredenabling access to services such as wireless VoIP.3GPP SIP is a mobile operator led initiative tocreate an ecosystem leveraging on IP.

Sales of SIP enabled devices 0.4% 19%

No. of Users (million)

Naked SIP (IETF SIP) services 2.2 212

No. of Users (million)

3GPP SIP based services Less than 1.15 More than 276

RevenueRM

(million)

RevenueGrowth(%

)

Malaysia VoIP Revenue versus Growth

1,600

1,400

1,200

1,900

800

600

400

200

0

25

20

15

10

5

0

2006 2007 2008 2009 2010 2011

609.3

730.9

875.5

1,047.6

1,230.7

1,425.5

20 20 20

1716

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2 Mobile Communications International, June 2007; 3GSM on Laptops in Computerworld Executive Briefings

3G Development Trend A Snapshot

Amongst the latest developments in the 3G space are the inclusion of laptops to deliver 3G dataservice, the femtocell excitement and 2.3GHz spectrum going under IMT2000 standard.

The GSM Association (GSMA) will collaborate with Microsoft to research consumer trends and the

mass market potential for notebook PCs with embedded 3G mobile broadband2. The target is to

reach users beyond business users to consumers at large and the small business users seeking

connectivity on the go. The laptops would be ready-equipped with modems supporting 3G with its

data-oriented HSDPA and HSUPA upgrades, and readers for SIM cards for authentication to 3G,

GPRS/EDGE and Wi-Fi networks. With this development, the industry reports the SIM card to turn

into a real authentication vehicle for GSM, GPRS, EDGE, 3GSM, HSDPA and Wi-Fi networks. This

should include WiMAX as well. The 3G notebooks is said to turn into a multi-communicator

terminal, while the GSMA vision of ubiquitous, high speed communications based on 3G

technology goes a step forward.

n.a.: not available

Source: Informa Telecoms & Media, World Cellular Information Service, 3G Americas, Company websites

UMTS and HSPA Operator Status (Selected Countries)

Country Operators UMTS HSPA

Status Start Date EDGE Status Start Date HSUPA

UK Hutchison 3G In Service Mar-03 In Service Dec-06 Dec-07

O2 In Service Mar-05 In Service Feb-07 Dec-07

Orange In Service Dec-04 EDGE In Service Feb-07

T-Mobile UK In Service Oct-05 In Service Aug-06 Dec-07

Vodafone In Service Nov-04 In Service Jun-06 Sep-07

US AT&T In Service Jul-04 EDGE In Service Dec-05 Nov-07Cincinnati Bell Wireless Planned Jul-08 EDGE

Edge Wireless Trial n.a. EDGE Deployment Dec-07 Sep-08

T-Mobile USA Planned 2007 EDGE Deployment Jun-07 Jun-08

Terrestar Deployment 2008 In Deployment 2008

Japan eAccess / eMobile In Service Mar-07 In Service Mar-07 Mar-10

Softbank (ex-Vodafone) In Service Dec-02 In Service Oct-06

NTT DoCoMo (FOMA) In Service Oct-01 In Service Aug-06 Jun-08

Singapore MobileOne In Service Feb-05 In Service Nov-06 Jun-08

SingTel Mobile In Service Feb-05 In Service Feb-07

StarHub In Service Apr-05 In Service Aug-07 Aug-07TBA Potential License 1Q 2009

Malaysia Maxis In Service Jul-05 EDGE In Service Sep-06

Telekom Malaysia/Celcom 3G

In Service May-05 In Service Jun-06 Dec-07

MiTV Deployment Dec-07 Deployment Jun-07

TT dotCom Deployment Dec-07 Deployment Dec-07

DiGi In Service Mar-06 EDGE

South Korea KTF SHOW In Service Dec-03 In Service Jun-06 Jun-07

SK Telecom 3G+ In Service Dec-03 In Service May-06 Oct-07

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C&M DEVELOPMENTS

WiMAX as IMT-2000Technology Standard

The 3G expansion band creates entry point

for mobile WiMAX and newcomers3. The

International Telecommunication Union

(ITU) affirms mobile WiMAX as part of

IMT-2000. This specifies mobile WiMAX for use

in the 3G expansion band of 2500-2690MHz.

The impact4 of this is most widely felt in

Europe where it would provide potential

opening to more airwaves. It also puts

WiMAX onto the path towards services inthe 4G category. Nevertheless, it is

reported that even without ITU approval,

WiMAX is seen as friendly spectrum in

greater supply in a world that is growing

more and more technology neutral.

Femtocell is the IP base stations that provide

enhanced wireless coverage inside buildings

to support fixed or mobile convergence and

other applications. Its deployment in thehome environment can provide amongst

others substantial cost savings in backhaul

by offloading traffic from macrocells into

fixed broadband networks, enhanced indoor

3G services, and cost efficient FMC solutions.

Current challenges to its use include a

business case for operators being worked

out, integration issues and the cost of

US$100 per unit for access points.

Meanwhile, Nokia Siemens Networks 3Gfemto home access solutions enable

operators to enhance 3G service offerings

and coverage, including consumers 3G home

experience.

3 Informa Telecoms & Media Mobile Industry Outlook 20084 WiMAX Vision, October 2007

History of Alcatel-Lucents Autonomic Femto Systems

2000 First flat autonomic architecture development

2001 First 2G Femto prototype

2002 Flat IP auto configurable prototypes demonstrated at3GSM

2004 Proposed concept of autonomic self-deployable basestations

2005 Self organizing systems applied to commercialcellular systemFirst self deployable base stations for emergency anddisaster recovery

2006 Flat IP applied to cellular products

2007 Auto configurable technology in commercial trials inthe BSR-Femto

Pertinent Considerations

Capacity 4-6 users, 50m-200m

Advantages Better coverage within the building Faster data services Createhome zone No expensive dual-mode handsets needed

Dis-advantages

Other competition;Voice-over Wi-Fi, ApplesiPhone, MVNO

Limited capacity; support up to six phonesonly

ROI Strong desire for users to shift to 3G;Increase 3G adoption

Key Players AirWalk, Ericsson, IPaccess, PicoChipDesigns, NEC, Samsung, Ubiquisys

Femtocell Forecasts

Source Expected Year

ABI Research 102 million users32 million access points worldwide

2011

In-Stat More than 100 million users40 million worldwide installations

20122011

ABI Research Backhaul and energy cost savings ofover US$70 billion, with projection thatassumes 70 million femtocell installedin homes worldwide serving more than150 million users

2012

W-CDMA HSPA Cellular Connections Worldwide

Source Connections Year

WirelessIntelligence

11 million (6% of W-CDMAconnections)

2007

Analysys 40 million 2008

Source: www.networkcomputing.com, www.vnunet.com

Source: Alcatel-Lucent 2007

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The Malaysian 3G Development

The Malaysian 3G market effectively started in the 2000s, with progress overall rather steady, albeit

relatively slow pace. The 3G services market grew to 406,700 subscribers in 2006 a milestone in

itself as it exceeded the MyICMS 886 targets by 300,000 for 2006. In third quarter 2007, there were

a total of 1.06 milion subscribers. The next target under the Malaysian blueprint for C&M industry

development is to achieve five million 3G subscribers by 2010.

In Malaysia, the lower price of 3G phones did encourage 3G subscriptions. As the 3G phones

become more affordable by the users from RM2,500 (US$661) in the year 2005 to RM1,000 (US$298)

in 2007. However, in reality, the number of 3G subscribers is higher than the number of 3G active

users. Despite the greater availability of 3G services and its enhanced version of 3.5G in HSDPA

introduced in 2006, adoption of this service is considered rather still low due to issues such as

customers readiness, service cost, coverage, and inadequate range of content by the service

providers.

Source: Industry, SKMM, Company websites

Source: SKMM* Source: GSM Association

3G Development in Malaysia

May 2000 Planning for 3G or 3G Generation Mobile in Malaysia

Sep 2000 SKMM consulted licensees on the proposed approach to 3G in Malaysia

Nov 2000 Discussion paper referred to as 3G Discussion Paper was published for comment

Feb 2002 SKMM issuing tender Application Information Package (AIP)

Apr 2003 TMB and UTMS were awarded the 3G spectrum block

May 2005 Celcom commercially launched its 3G services only for postpaid users

Jul 2005 Maxis commercially launched 3G for postpaid and prepaid services in the Klang Valley

Dec 2005 Celcom made 3G available to prepaid usersMar 2006 Second 3G license awarded to MiTV Corporation and TTdotCom

Apr 2006 Maxis and Celcom announced 3G interconnection, enabling interconnect video telephony between thetwo service providers

Sep 2006 Celcom launch the 3GX, a mobile broadband with data speed of up to 1.8Mbps

Subscribers(million)

Price(RM)

Malaysia Mobile Broadband(3G Subscription)

2,500

1,500

1,000

3,000

2,000

1,000

0

0.0456

0.4067

1.0589

2005 2006 3Q 2007

2

1.5

1

0.5

0

Numberof 3GSubscribers (million) Average Price of 3G Phones (RM)

Worldwide 3G Subscribers Forecast

SourceExpected

SubscribersYear

Current(2Q 2007)

In-Stat 540 million 2010 200 millionsubscribers*Juniper Research 300 million 2010

ABI Research 1 billion 2010

Informa 1.68 billion 2012

Malaysia 3G Subscribers Forecasts

SourceExpected

SubscribersYear

Current(3Q 2007)

Business MonitorInternational (BMI)

2.51 million 2010 1.06 millionsubscribers

MyICMS 886 5 million 2010

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C&M DEVELOPMENTS

Although GPRS and EDGE already satisfy the demands of many applications, UMTS/HSPA represents

tremendous radio innovation and capability, allowing it to support a wide range of applications,

including voice and data on the same devices. With UMTS and HSPA, applications are faster and

the range of supported applications expands. UMTS/HSDPA devices manufactured today haveEDGE as the compatible fallback technology from UMTS/HSPA to allow for global roaming and

delivery of 3G services. Industry analysts expect that by 2009 there will be more than a half a billion

3G UMTS/HSPA customers and by 2011 that customer base will reach one billion.

Considering that 3G may require more time to get mature, the interest on 2.3GHz WiMAX

spectrum has been increasing among local players because WiMAX is believed to deliver significant

price advantages on bandwidth and delivers up to 4x more bandwidth than 3G services. There is

expected 16.8 million subscriptions worldwide for mobile WiMAX for 2012.

CelcomPackages Charges Service

Monthly Unlimited Plan RM68/month. Max speed up to 384Kbps (3G). For Postpaid users only.

Daily Unlimited Plan RM8/24 hours. 3GX/3G & GPRS. For Postpaid and Prepaid users.

D99 Unlimited Plan For heavy users Usage with Minutes plan

RM99/month. No charge for entry to any website.

Speed up to 3.6Mbps on HSDPA. 3G and GPRS. Unlimited Internet browsing and E-mail.

D120 Unlimited Plan For Data users Standalone Data Users

RM120/month. No charge for entry to any website. Download charges website-dependant.

Speed up to 3.6Mbps on HDSPA. Unlimited Internet browsing and Email. Data package only, exclude voice.

Pay-per-use - Occasional Users RM0.10 sen/10Kb. Suitable for all users.Maxis

Packages Charges Service

Day Per Use No monthly subscription. Peak Hours = 0.01 sen/Kb. Off Peak Hours = 0.5 sen/Kb.

Cost for subscription and content downloadsvia the Maxis portal will not be charged fordata usage.

These data packages are applicable to GPRS,EDGE and 3G services.

1MB RM5/month. Peak Hours and Off Peak Hours = 0.5 sen/Kb. Subsequent usage will be charge 0.5 sen/Kb.

8M RM25/month. Peak Hours = 0.3 sen/Kb. Off Peak Hours = 0.3 sen/Kb and

subsequent usage will be charge 0.3 sen/Kb.Unlimited (Promotion validtill 31 December 2007)

RM99/month. Only for postpaid customers.

*Off peak hours: 12am to 7am

WiMAX in Malaysia

2.3GHz in Malaysia Awarded in March 2007. Expected to roll out services in 2008.

Licenses Bizsurf (2330MHz-2360MHz band). MIB Comm (2360MHz-2390MHz band). Asiaspace Dotcom (2300MHZ-2330MHz band). Redtone-CNX Broadband (2375MHz-2400MHz band).

Services To provide broadband services with the same capability as 2.4GHz, 2.5GHz and 3.4GHz forsmall and medium enterprises.

3G Packages in Malaysia

Source: Company websites

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Conclusion

Although slow in takeup, there is expected tremendous latent interest and demand in 3G-type

services where users can go mobile with their Internet, talk with friends on an always on basis and

even watch video and play games to their hearts content. Again, these activities need to balance

with cost of buying the handset and charges on services, including the desired customer care and

innovation in service offerings.

Source: Adapted from ROA Group Korea

3G Services in Malaysia

Telephony

Video Telephone

Video via MMS

Video Portal

Push to Talk (PTT)

Voice Mail

Messaging

Photo Mail

Movie Mail

EmailGame

3D Game

Multimedia

MP3 Music

Streamed Mobile TV

Radio

Mblog

Phone as a Modem

Remote Surveillance Global

Positioning Systems (GSM)

Telephony

OnePhone

Messaging

Spam Filtering

Multimedia

Flash

Music Etc.

Video on Demand

Broadcast Mobile TV

InformationElectronic Dictionary

Voice Record

E-Book

Telematics

Commerce and Banking

M-Payment

M-Banking

3G in Malaysia

Available

Communication

Communication

Entertainment

Information

Finance

Entertainment

Information

Not yet Available/ Trials

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GLOSSARY

ASP Applications Service Providers: Individual (I), Class (C)ATSC Advanced Television Systems CommitteeATSC-M/H ATSC-Mobile/HandheldBCHB Bumiputra-Commerce Holdings Berhad

BT BT Group PlcBNM Bank Negara Malaysia, the countrys Central BankBursa Malaysia Stock exchange of Malaysia (previously KL Stock Exchange)C&M Sector Communications and Multimedia SectorCDMA Code division multiple accessChina Unicom China Unicom LtdChunghwa Chunghwa Telecom Co. LtdCMMB China Multimedia Mobile BroadcastingDeutsche Tel Deutsche Telekom AGDiGi DiGi.Com BerhadDJIA Dow Jones Industrial AverageDVB Digital Video BroadcastingEBIT Earnings before interest and tax

Far Eastone Far Eastone Telecom Co. LtdFCC Federal Communications Commission of USGlobe Globe Telecom Inc.GSM Global System for Mobile CommunicationsHutchison Hutchison Telecom (AUST)IEEE Institute of Electrical and Electronics EngineersIndoSat Indonesian Satellite CorpIMT-2000 International Mobile Telecommunication 2000ITU International Telecommunication UnionKDDI KDDI CorporationKT Corp KT CorporationLG Telecom LG Telecom LtdMarket Capitalisation Market capitalisation is the result of multiplying the number of shares

outstanding by share price at the end of a periodMaxis Maxis Communications BerhadMESDAQ Malaysia Exchange of Securities Dealing & Automated QuotationMobileOne MobileOne LtdMPEG Motion Picture Experts GroupMTNL Mahanagar Telephone NigamMyICMS 886 Malaysian Information, Communications & Multimedia Services 886New World New World Cyberbase LtdNTT DoCoMo NTT DoCoMo Inc.PCCW PCCW LimitedPLDT Philippine Long Distance Telephone CompanyPosM Pos Malaysia & Services Holdings BerhadSingTel Singapore Telecommunications Ltd

Smartone Smartone TelecommunicationsSTI Straits Times Index of the Singapore Stock ExchangeSunday Sunday Communications LtdTaiwan Mobile Taiwan Mobile Co. LtdTD-SCDMA Tim