Hi, just some Q&A on why Maxis can't cut prices in layman terms.
Q: Why Maxis only announced data increase but not price cuts?
A: This is due to the fact that Maxis do not want to impact their revenue hence profits. Increasing data do not impact their revenue as prices is not cut. Giving consumers extra data do not cost a lot of money to Maxis because it cost very little money to Maxis as the network infrastructure is already being built.
Q: Why Maxis could not afford to impact its revenue?
A: For a very long time, Maxis has been more focused on serving its shareholders rather than customers. Some of the major shareholders of Maxis like PNB and EPF faces pressure from their contributors to declare good dividends. They, in turn, pressure Maxis to pay more dividend so that they could meet their own dividend target to their contributors. This is overdone to the extend that, like 1MDB, Maxis borrowed money to pay for something that it could not afford. In Maxis case, it borrowed money to pay dividend. Now, Maxis is the most highly indebted telcos in Malaysia. They are now in a very bad position in which they have to pay off their debt.
At the same time, for telco to operate, they need spectrum. The more spectrum you have, the cheaper you could operate your business. Previously, Maxis has a lot of spectrum, thus, they could operate at a cheaper cost than others. But, recently, the government plans to re-allocate some of this spectrum to smaller players like U-Mobile to promote more competition. This in turn may drive up the cost of doing business for Maxis.
In order to pay off the debt as well as faced with potentially increasing operating cost, they can't afford to reduce their revenue thus they could not cut prices.
Q: If that's the case, Maxis seems very reluctant to cut the price of their plan. How do I force them to cut?
A: Maxis would not be desperate to cut the price of their plan as long as they manage to stave off this PR crisis and subscribers stays with them. As Maxis has not finalized the price of their plans yet, we as consumer can put pressure on Maxis to force them cut the price! We should encourage as many people as possible to port out as possible. Revenue can be lost in 2 ways : 1) If Maxis themselves cut the price plan. 2) If there is a massive migration of customers to other telcos. If the revenue loss from 2) is more than 1), then, Maxis will be forced to cut the price plans.
Most of the plans from other telcos has no contract. So, get all your family and friends to port out of Maxis in the next few weeks so that they faces massive pressure on subscribers leaving thus their revenue. The more people that port out, the more pressure they will feel! This will force them to cut their prices when they finalized the details of their new plans next month. This will only works if there is a huge amount of people leaving. Thus, every Maxis subscribers have to play their part! After they cut the prices, you can port back to Maxis to enjoy their superior network coverage.
Hidup Pengguna! Put pressure on them to cut prices! Port Out!
Yes. Spread the word, ask more people to go for lowest plan. Today i go massage even the local massage lady also talk about it, and how unfair their friend and family got cheaper offer while she walk in ask also cant have it.
Than she make a decision to port out tomorrow with her family.