Celcom

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Not to be confused with Cellcom.
Celcom Axiata Berhad
Type Public
Industry Mobile telecommunication services
Founded 1988
Headquarters 82 Jalan Raja Muda Abdul Aziz, 53100 Kuala Lumpur, Malaysia
Key people Datuk Seri Shazzalli Ramly, CEO
Products 2G, 3G, 4G and satellite mobile network operator
Revenue Increase RM8.02 billion (2013)[1]
Parent Axiata Group Berhad
Website www.celcom.com.my

Celcom Axiata Berhad, DBA Celcom, is the oldest mobile telecommunications company in Malaysia. Celcom is one of a member of the Axiata group of companies. Being one of the very few companies in Malaysia to originally obtain a cellular phone license, it successfully introduced mobile telephony in Malaysia through its ART-900 (Automatic Radio Telephone) service, using first generation (analogue) ETACS (Extended Total Access Communication System) specifications of the United Kingdom, a derivative of the US-AMPS (Advanced Mobile Phone System) technology. The ETACS ART-900 was started using the prefix "010". Celcom now uses the dialling prefix identifier of "013" and "019" and offer digital GSM (Groupe Speciale Mobile), an originally European standard, now largely a world standard for mobile communications. The original frequency band for GSM is 900 MHz, and was soon extended to 1800 MHz to cater for a much wider bandwidth requirements. The 2100 MHz band is used for their dual-channel HSPA+ network. Celcom is also licensed and has been operating FDD-LTE on 1800 MHz and 2600 MHz.

Through the Mobile Numbering Portability by the Malaysian Communications and Multimedia Commission, CELCOM also provides Virtual Mobile Operator services. Celcom also provides rural communications services using CDMA Technology and Satellite Phone.

History[edit]

Celcom started its operation as STM Cellular Communications in 1988 with Fleet Group and Telekom Malaysia as shareholders. Subsequently Telekom Malaysia sold its 51% shareholding to the TRI group which was controlled by Tajuddin Ramli. Fleet Group's share meanwhile was transferred to the Time Engineering group which was later sold to TRI. In the initial years Celcom experienced a tremendous growth in subcriber base and network coverage under the stewardship of Rosli Man, the President of the company. It was during his tenure that Celcom turned into the leading cellular companies in Malaysia. He left Celcom in 1996.

When the cellular phone market was opened up in 1995, Celcom upgraded to the GSM900 service and quickly grew to become the largest mobile phone company in Malaysia. Competition soon sets in, and several digital mobile telcos compete for market dominance. It was the age of the phenomenal growth of mobile services.

During the Asian financial crisis in 1997, Celcom's owner, Tan Sri Tajudin Ramli suffered a debt crunch, and his shareholding in Celcom was seized by Danaharta, the national asset restructuring company. Failure to resolve his debts resulted in the controlling stake in Celcom being sold to Telekom Malaysia, the government-owned incumbent fixed line operator in 2003. Telekom Malaysia proceeded to merge Celcom with its own mobile-operator subsidiary TMTouch through a reverse takeover of TMTouch.

Celcom was originally listed on the Bursa Malaysia, but after the merger with Telekom Malaysia Berhad, it has since remained private.

Owing to the bad management of its former management Celcom was as found liable by an arbitration panel in Switzerland for infringing an agreement signed with Deutsche Telekom AG’s unit, DeTeAsia in 2002.

The tribunal ruled that Celcom was liable to pay DeTeAsia US$177.2 million in principal plus US$16.2 million in interest as well as other legal and arbitration costs. This works out to a tidy sum of about RM740 million, leaving Telekom to intensify its efforts at recovering monies from Celcom’s previous owners for their misdeed. Only then will TM be able to fully exorcise itself from the haunting of Celcom’s tumultuous past.

Product, Services and coverage[edit]

Celcom claims to have the widest and most extensive coverage nationwide, compared to other cellular services in Malaysia. Celcom claims its dual-band GSM (900/1800 MHz) coverage has reached over 99% of Malaysia's populated area in 2006, and 100% through satellite coverage. As of 2006 Celcom is offering both 2.5G and 3G services on its postpaid and Xpax prepaid brands. Current (published) customer base passes over 11 million, with blended ARPU (Average Revenue per User) stood at RM52. Celcom claimed an 80% nationwide mobile service coverage with 3G availability in most of Klang Valley, Johor Bahru, Melaka, Kulim and Penang.

In 2009, the 3G coverage covers most major towns where there is a telephone exchange and either HSDPA or EDGE services within 15-mile (24 km) radius (GSM UMTS maximum allowed range) with GPRS as basic data coverage.

In 2013, the 4th generation standard of FDD-LTE was deployed gradually nationwide. The initial license is only on the 2,600 MHz band. In second quarter, its 1,800 MHz band has been refarmed to cater for both 2G and 4G.

Celcom operates 2G GSM/GPRS/EDGE, 3G WCDMA/HSPA+, 4G LTE network.[2]

Frequencies used on Celcom Network in Malaysia
Frequency Frequency Width Protocol Notes
900 MHz (890~905,936~950) 30 MHz GSM/UMTS
1800 MHz (1735~1760,1830~1855) 50 MHz GSM/LTE
2100 MHz (1950~1965, 2140~2155) 2 * 15 MHz UMTS/HSPA
2600 MHz 2 * 10 MHz LTE
2600 MHz 2 * 20 MHz LTE Spectrum sharing with ALTEL

Celcom Broadband[edit]

Celcom Broadband is Malaysia’s No.1 Mobile Broadband Provider, with 1.2 million[3] subscribers in Q4 2013. The broadband network cover 71%[4] of Malaysia populated areas.

Celcom Broadband was awarded the prestigious Frost & Sullivan’s Mobile Broadband Provider for two years.[4][5]

Kolony[edit]

Kolony, launched by Celcom on 8 April 2011 was the first ever SMS-based social networking service in Malaysia.[6] Kolony targets Malaysian youths and those who would like to be connected to their family and friends frequently by using their mobile phone.[7] It runs on the regular SMS-based platform, allowing users to participate in social networking activities using the most basic mobile phones with or without 3G connection. Users can then register and use Kolony for their social networking needs.[8] It is a service consisting of a multi-user environment, including software and websites. After only a few weeks of its launch, Kolony recorded a total of 1.5million subscribers.[9][10]

Current developments[edit]

Celcom is the Malaysian partner of the Vodafone mobile community. Celcom current CEO, Dato’ Seri Mohammed Shazalli Ramly, has been with Celcom since 2005. His contract expired in (2007) and has been renewed for another 3 more years.

Demerger from Telekom Malaysia[edit]

On 28 September 2007, Telekom Malaysia announced a revamp of its mobile communication units which include Celcom. The revamp plan was to group Celcom under TM International, which houses other TM regional mobile units and define it as a separate business entity. The restructuring exercise was completed by Q1 2008 and the new business unit listed on the Kuala Lumpur Stock Exchange by Q2 2008.

TM International has been renamed as AXIATA as part of a telecom consortium in south east Asia. Its Stock Exchange code is AXIATA.

Subscribers[edit]

At Q2 2014, Celcom has 13.4 million subscriber (10.5 million prepaid subscribers and 2.9 million postpaid users), making it the No. 1 Telco in Malaysia.[3] Besides that, Celcom has the highest broadband subscribers in the industry with 1.3 million subscribers.

References[edit]

External links[edit]