Consumer Satisfaction Survey 2004

SUMMARY REPORT

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Table of Contents

A. Background..........................................................................................1

B. Sampling and Methodology...............................................................3

C. Geographical Coverage ......................................................................4

D. Consumer Satisfaction Index (CSI) ................................................4

E. Research Findings ...............................................................................5

G. Detailed Findings ................................................................................8

Section 1: Fixed Line Telephone Services.........................................8

Section 2: Mobile Telephone Services ............................................10

Section 3: Public Payphones ............................................................12

Section 4: Dial-Up Internet .............................................................13

Section 5: Broadband Internet ........................................................15

Section 6: Digital Leased Line Services..........................................17

Section 7: Free-to-Air Radio .............................................................18

Section 8: Free-to-Air TV .................................................................. 19

Section 9: Pay TV................................................................................20

Section 10: Postal Services ..............................................................21

Section 11: Courier Services ............................................................22

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A. Background Since 2001, the MCMC has been conducting the Consumer Satisfaction Survey (CSS) once every six months. By end of 2003, the Malaysian Communications and Multimedia Commission (MCMC) had conducted a total of 6 surveys (Waves 1 to 6). The consumer survey forms a major part of MCMC’s quality of service monitoring and is considered one of the benchmark (consumer’s perspective) on the level of satisfaction of the various services provided to them. The results of the survey presents an insight into the consumers’ perceived level of the services offered by the various service providers . The CSS study covered fixed line (including public payphone) telephone services, mobile telephone services, Internet access services, free to air television, free to air radio, satellite television and postal and courier services. As a target for the industry in improving service quality in the communications and multimedia industry, MCMC, has established the Consumer Satisfaction Index (CSI) as part of the Framework for Industry Development (2002-2007). The target benchmarks are as shown in the table below.

KPI (FID 2002-2007) CSI Mobile Cellular 7.5 * Fixed Line 7.5* Free To A ir TV 4 Dial Up Internet 7.5* Postal 4 Courier 4.5

* The specified benchmarks is based on a 10 point scale. As the current survey uses a 5

point scale, the equivalent calibrated benchmark for the 5 point scale is 3 .5. In 2001, MCMC conducted two CSS’ through Taylor Nelson Sofres (TNS). The first survey (Wave 1) was conducted between February and April 2001, with their findings released in June 2001. The second survey (Wave 2) was conducted between August and October 2001 and their findings were released in November 2001. For the year 2002, two CSS’ were also conducted (Waves 3 and 4) through TNS and University Kebangsaan Malaysia (School of Communication and Media Studies). The two parties conducted different sections of the CSS. The fourth study was conducted between September and October 2002, with the findings released in December 2002. In 2003, MCMC again carried out two CSS. Wave 5 was conducted by TNS and UKM throughout the months of April and June 2003, while Wave 6 was conducted by the International Islamic University Malaysia Entrepreneurship & Consultancies Sdn Bhd together with UKM.

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A nationwide survey continued to be conducted by MCMC in the second half of 2004 to measure the consumer satisfaction levels of services provided in the communications and multimedia industry. The CSS 2004 (now an annual exercise) was conducted entirely by Taylor Nelson Sofres (TNS). Two main respondent segments were covered i.e. the residential and commercial segments, with eleven product categories evaluated as summarised in Section B. The survey was carried out between the months of August and December 2004. This latest survey uses a different methodology and approach as it was conducted primarily using a computer assisted telephone interviews (C.A.T.I.) system. Besides the standard CSI, a TRI*M1 analysis was carried out to provide strategic analysis on how to improve CSS for the service providers. The results for both the standard and TRI*M1 were shared with the service providers and discussion conducted on the way forward. 1 TRI*M is a proprietary strategic analytical tool owned by TNS and used to Measure, Manage and Monitor customer satisfaction.

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B. Sampling and Methodology A total of eleven service categories (14 surveys) were covered for this study as listed in the table below, with separate residential and commercial respondent segments. Certain service categories were asked on both the residential and commercial segments, whereas certain categories were asked only on one segment i.e. residential or commercial depending on the nature of the service usage. Two methods were used in data collection i.e. computer assisted telephone interviews (C.A.T.I.) and face-to-face interviews (F2F). Face-to-face interviews were conducted in addition to telephone interviews in certain service categories to ensure that the survey is representative of the universe, as telephone penetration is low in some geographical areas. The table below summarizes the service categories covered in this study, indicating the segments and service provider(s) covered, interview method and sample size achieved. NO Service Category Segment Service Provider Interview

Method Sample Achieved

1. Residential Telekom Malaysia CATI 934

2. Telekom Malaysia CATI 358

3.

Fixed Line Telephone Services Commercial

Time CATI 305

4. Maxis CATI 300

5. Celcom CATI 300

6.

Mobile Telephone Services

Residential

Digi CATI 300

7. Telekom Malaysia CATI / F2F 820

8.

Public Payphones Residential

Time CATI / F2F 333

9. TMNet CATI 308

10.

Residential

Jaring CATI 243

11. TMNet CATI 309

12.

Dial-up Internet

Commercial

Jaring CATI 300

13. Residential TMNet CATI 302

14.

Broadband Internet

Commercial TMNet CATI 453

15. Digital Leased Lines Commercial All CATI 125

16. Free-to-Air Radio Residential All CATI / F2F 1126

17. Free-to-Air TV Residential All CATI / F2F 1479

18. Pay TV Residential Astro CATI 305

19. Postal Services Residential Pos Malaysia CATI / F2F 1016

20. Courier Service Commercial All CATI 477

* As a general rule, service providers with less than 10% market share were not covered in this study.

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C. Geographical Coverage The CSS was a nationwide study covering Peninsular Malaysia, Sabah and Sarawak. In terms of regional analysis, the following states are covered in each region. § Northern – Perak, Penang, Kedah and Perlis § Central – Kuala Lumpur, Selangor and Negeri Sembilan § Southern – Melaka and Johor § East Coast – Pahang, Kelantan & Terengganu § Sabah § Sarawak D. Consumer Satisfaction Index (CSI)

Consumer Satisfaction Index (CSI) Model

Consumer Satisfaction Index (CSI) Calculation

Performance ScorePoor - Excellent

(1 - 5)

Overall Satisfaction

(1 - 5)

CSIScore

CSI = Mean Performance + Mean Overall Satisfaction

2

To get the CSI score, the mean performance score will be added with the mean overall satisfaction score, which will then be divided by two.

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E. Research Findings

1. It is to be noted that the latest CSS 2004 uses a completely different methodology and approach in measuring consumer satisfaction as compared to the previous surveys.

2. The findings at the overall industry level have been weighted according

to the market share of the service providers.

3. Within each service category, the respondents were asked to evaluate a list of attributes. Please note that under ‘Customer Priority Areas’, only the attributes that have been identified as priority are listed, and not necessarily all the attributes that have been evaluated.

4. When making comparative analysis with previous surveys,

consideration on period of study, sampling, demographic profile, methodology, approach and geographic coverage need to be taken into perspective.

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F. Executive Summary

CSI Scores by Product Category (Residential)

3.22.88

3.093.52 3.38 3.35 3.24

3.56 3.413.1

2.83 2.743.03

Mean Score

Time/ Uniphone

Maxis Celcom DiGi

Postal

Free to air Radio

Free to air TV

Pay TV-Astro

TM Net Jaring

TM Net Broadband Residential

Telekom/ Citiphone

Fixed Line Residential

OVERALL MOBILE SERVICES:

3.43

OVERALL INTERNET DIALUP RESIDENTIAL:

2.82

Base : 934 820 330 300 300 300 1015 1126 1474 305 306 241* 302

OVERALL PAYPHONE:

2.90

CSI Scores by Product Category (Commercial)

2.943.22 3.22

2.65 2.692.84

3.04

Mean Score

OVERALL FIXED LINE COMMERCIAL:

2.94

OVERALL INTERNET DIAL UP COMMERCIAL:

2.69

Base : 358 305 477 306 296 460 125

Telekom Digital Leased

Line

TM Net Broadband Commercial

T.T Courier TM Net Jaring

Note: In categories where there were more than one service provider being evaluated, the indices stated above are at the industry level. For fixed line telephone (residential), only Telekom Malaysia was covered while for broadband Internet service, only TMNet was covered.

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Out of the 14 surveys covered in this study, the highest industry index was obtained by free-to-air Radio which achieved 3.56, the industry benchmark is 4.0. This was followed by mobile telephone services which achieved 3.43 against the industry benchmark target of 3.5 and free-to-air TV with an index of 3.41. As an industry, dial-up Internet customers were least satisfied especially among the commercial sector with an index of 2.69 which is slightly less than satisfactory compared to the industry benchmark of 3.5. Consumers are generally satisfied with the product quality of fixed line telephone services, broadband Internet, digital leased lines and courier services. However, some product quality attributes of mobile telephone services, public payphones and dial-up Internet services are in priority need for improvement. In most service categories, consumers were satisfied with the courteousness and friendliness of staff’s attribute under customer service. However, in certain service categories such as the fixed line telephone, mobile telephone, dial-up and broadband Internet, digital leased lines and courier services, respondents indicated it was a priority area for service improvements in other attributes under customer service. Charges in most service categories is not a priority area for improvement except for mobile telephone, broadband Internet, digital leased lines and pay TV services, where consumers are less satisfied.

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G. Detailed Findings Section 1: Fixed Line Telephone Services

Both the residential and commercial segments are covered in the evaluation of Fixed Line Services. Only Telekom Malaysia has been evaluated for the residential segment, while the commercial segment includes both Telekom Malaysia and Time. Residential Customers Respondents rates this service as good, with an index of 3.2. Commercial Customers Nevertheless, at industry level, the commercial respondents rated this service as fair at 2.94. Customer Priority Areas Out of the ten attributes asked to respondents, seven attributes have been identified as priority areas within each of the residential and commercial segments. Respondents are satisfied in the following priority areas where the performance is above average.

Residential – Telekom Malaysia Commercial – Industry

§ Friendly and courteous customer service

§ Network quality

FID = 3.5

Residential Fixed Line Telekom Malaysia (N=934)

Commercial Fixed Line

Industry (N=663)

Commercial Fixed Line Telekom Malaysia (N=358)

Commercial Fixed Line

Time (N=305)

3.22.94 2.94

3.22

Consumer Satisfaction Index

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Respondents expect an improvement in the following priority areas, which will contribute to higher satisfaction levels in the future .

Residential – Telekom Malaysia Commercial – Industry

§ Speed of handling complaints (key area)

§ Effectiveness of handling complaints (key area)

§ Speed of restoring service disruptions (key area)

§ Effectiveness of restoring service disruptions

§ Accessibility to customer service § Provision of info on latest

products/services

§ Speed of handling complaints (key area)

§ Effectiveness of handling complaints § Speed of restoring service

disruptions § Effectiveness of restoring service

disruptions § Accessibility to customer service § Friendly and courteous customer

service

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Section 2: Mobile Telephone Services Mobile telephone services were only asked on the residential segment, and consumer satisfaction was asked on users of Maxis, Celcom and Digi. Questions specific to pre-paid or post-paid service were only asked to post-paid and pre-paid user groups respectively. Overall industry mobile telephone services performed well with an index of 3.43, with Celcom at 3.38, Digi at 3.35 and Maxis performing very well at 3.52. At the industry level, the northern region has the highest index of 3.52, and the south having the lowest index of 3.35. Customer Priority Areas Out of the 20 attributes asked to respondents, 13 attributes have been identified as priority areas. Within areas identified as priority in the industry, Respondents are satisfied with the friendliness and courteousness of staff in customer service, which performs above average.

3.43 3.38 3.353.52

Industry (N=900)

Maxis (N=300)

Celcom (N=300)

Digi (N=300)

Consumer Satisfaction Index

FID = 3.5

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As an industry, Respondents expect an improvement in the following priority areas, which will contribute to higher satisfaction levels in the future. Post-paid service § Charges for monthly access fee (key area) Pre-paid and post-paid services § Network geographical coverage (key area) § Charges for other services, other than for calls (key area) § Network quality § Quality of other services § Attractiveness of promotion § Promptness of getting answers from customer services § Getting satisfactory solution from customer services § Speed of handling complaints § Speed of restoring service disruptions § Effectiveness of handling complaints § Accessibility to customer service

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Section 3: Public Payphones Public payphones was only evaluated in the residential segment. Evaluation was conducted on two service providers i.e. Telekom Malaysia (with some of its phones branded as Citiphone) and Time (with its phones branded as TimeReach and Uniphone). At industry level, public payphones performs fair at an index of 2.9. Regional analysis shows that there is a large variance between regions with Sabah having the highest index of 3.52 and the northern region with the lowest index of 2.62. When looking at specific serv ice providers , index for Telekom Malaysia is 2.88, while Time scores at 3.09. Customer Priority Areas Out of the six attributes asked to respondents, four attributes have been identified as priority areas. Respondents are satisfied in the following priority areas where the performance is above average. § Network quality i.e. no disruptions and no crosslines § Call charges Respondents expect an improvement in the following priority areas, which will contribute to higher satisfaction levels. § Ease of findin g a public payphone § Availability of both coins and cards at the same location

Industry (N=1153)

Telekom Malaysia (N=820)

2.9 2.88 3.09

Time (N=333)

Consumer Satisfaction Index

FID = 3.5

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Section 4: Dial-Up Internet Dial-up Internet is covered in both the residential and commercial segments. Customer satisfaction evaluation was conducted on users of TMnet and Jaring. Residential Customers At the industry level, the residential segment has scored a fair index of 2.82. Between regions, the highest indices were scored by Sabah (2.94) and North (2.98), while the lowest indices were recorded by Central (2.7) and Sarawak (2.73). Overall, Jaring obtained an index of 2.74 while TMNet obtained 2.83. Commercial Customers Compared to the residential segment, evaluation among commercial respondents recorded a lower index of 2.69. Sabah performs highest at 2.89, while the lowest scores were recorded by South (2.64) and East Coast (2.6). Overall, Jaring obtained an index of 2.69 while TMNet obtained 2.65. Customer Priority Areas Out of the 14 attributes asked to respondents, six attributes have been identified as priority areas for the residential segment, and nine for the commercial segment. Respondents are satisfied in the following priority areas where the performance is above average. Residential – Industry Commercial – Industry

- § Ease to log on § Friendly and courteous customer

service

2.82 2.74 2.83 2.69 2.69 2.65

Consumer Satisfaction Index

Residential Industry (N=551)

Residential TMnet

(N=308)

Residential Jaring

(N=243)

Commercial Jaring

(N=300)

Commercial TMnet

(N=309)

Commercial Industry (N=609)

FID = 3.5

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Respondents expect an improvement in the following priority areas, which will contribute to higher satisfaction levels.

Residential – Industry Commercial – Industry

§ Speed of Internet access (key area)

§ Quality of network (key area) § Ease to log on § Speed of restoring service

disruptions § Effectiveness of restoring service

disruptions § Accessibility to customer service

§ Speed of Internet access (key area) § Accessibility to customer service

(key area) § Speed of handling complaints (key

area) § Effectiveness of handling complaints

(key area) § Speed of restoring service

disruptions (key area) § Effectiveness of restoring service

disruptions § Quality of network

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Section 5: Broadband Internet Broadband Internet was only evaluated among TMnet users, for both the residential and commercial segments. Overall, broadband Internet performs better than dial-up with the residential and commercial segments with good and fair indices of 3.03 and 2.84 respectively. Customer Priority Areas Out of the 14 attributes asked to respondents, seven attributes have been identified as priority areas for each of the residential and commercial segments. Respondents are satisfied in the following priority areas where the performance is above average.

Residential Commercial

§ Speed of internet access § Ease to log-on

§ Speed of internet access § Ease to log-on

Residential TMNet

(N=302)

Commercial TMNet

(N=453)

3.03 2.84

Consumer Satisfaction Index

FID = 3.5

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Respondents expect an improvement in the following priority areas, which will contribute to higher satisfaction levels. Residential – Industry Commercial – Industry

§ Speed of restoring service disruptions (key area)

§ Speed of handling complaints (key area)

§ Effectiveness of handling complaints (key area)

§ Quality of network § Effectiveness of restoring service

disruptions

§ Speed of restoring service disruptions (key area)

§ Effectiveness of restoring service disruptions (key area)

§ Speed of handling complaints (key area)

§ Effectiveness of handling complaints (key area)

§ Quality of network

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Section 6: Digital Leased Line Services Evaluation for Digital Leased Lines was only conducted among the commercial respondents. At industry level, this service category scored a good satisfaction index of 3.04. Due to the small sample, regional analysis and analysis by network provider is not provided. Consumer Priority Areas Out of the 10 attributes asked to respondents, seven attributes have been identified as priority areas. Respondents are satisfied in the following priority area where the performance is above average. § Network quality i.e. no interruption, minimal down time Respondents expect an improvement in the following priority areas, which will contribute to higher satisfaction levels. § Speed of handling complaints (key area) § Effectiveness of handling complaints (key area) § Charges for digital leased lines (key area) § Speed of restoring service disruptions § Effectiveness of restoring service disruptions § Accessibility to customer service

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Section 7: Free-to-Air Radio Evaluation for free-to-air radio was only conducted among the residential respondents. At the industry level, this service category obtained a good satisfaction index of 3.56. Regional analysis shows that there is a large variance between regions with Sabah having the highest index of 3.86, and the northern region the lowest index of 3.33. Consumer Priority Areas Out of the six attributes asked to respondents, four attributes have been identified as priority areas. Respondents are satisfied in the following priority areas where the performance is above average. § Quality of transmission i.e. clear sound, no static interference § Performance of radio DJ / announcer Respondents expect an improvement in the following priority areas, which will contribute to higher satisfaction levels. § Quality of content in the programmes § Variety of music selection

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Section 8: Free-to-Air TV Evaluation for free-to-air TV was only conducted among the residential respondents. At industry level, this service category obtained a good satisfaction index of 3.41. Regional analysis shows that most regions have an index of between 3.2 and 3.6, Sabah having the highest index of 3.9, and the northern region the lowest index of 3.2. Consumer Priority Areas Out of the seven attributes asked to respondents, seven attributes have been identified as priority areas. Respondents are satisfied in the following priority areas where the performance is above average. § Quality of picture i.e. clear picture § Quality of sound i.e. clear sound Respondents expect an improvement in the following priority areas, which will contribute to higher satisfaction levels. § Sufficiency of local programmes § Quality of content in programmes § Variety of programmes § Good entertainment § Unbiased and independent information e.g. news and documentaries

3.41

Industry (N=1479)

Consumer Satisfaction Index

FID = 4.0

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Section 9: Pay TV Evaluation for pay TV was conducted among Astro customers, and only covered the residential segment. Astro obtained a good satisfaction index of 3.1, with the northern region obtaining the highest index of 3.34. The East Coast obtained the lowest scores of 2.97. Customer Priority Areas Out of the 15 attributes asked to respondents, eight attributes have been identified as priority areas. Respondents are satisfied in the following priority areas where the performance is above average. § Quality of content in programmes § Variety of programmes § Speed of handling complaints Respondents expect an improvement in the following priority areas, which will contribute to higher satisfaction levels. § Value for money (key area) § Frequency of repeated shows / programmes (key area) § Good balance of programmes and advertisements (key area) § Accessibility to customer service § Speed of restoring service disruptions

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Section 10: Postal Services Evaluation for postal services was conducted among Pos Malaysia customers and only covered the residential segment. This service category performed relatively good with an index of 3.24. Regional analysis shows that most regions obtained an index of between 3.05 and 3.58, with Sabah and East Coast recording the highest indices of 3.5 and 3.58 respectively. Sarawak obtained the lowest score with an index of 3.05. Customer Priority Areas Out of the six attributes asked to respondents, five attributes have been identified as priority areas. Respondents are satisfied in the following priority areas where the performance is above average. § Deliver mails e.g. letters/parcels correctly according to address § Careful handling of letters e.g. putting in the mail box correctly and not risk

getting wet when it rains Respondents expect an improvement in the following priority areas, which will contribute to higher satisfaction levels. § Speed of mail delivery e.g. letters/parcels § Friendly and courteous customer service in post office § Instructions to guide customers e.g. information counter, signage in post

office

3.24

Pos Malaysia (N=1,015)

Consumer Satisfaction Index

FID = 4.0

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Section 11: Courier Services Evaluation for courier services was only conducted among the commercial respondents. This service category performed relatively good with a satisfaction index of 3.22. However, it is lower than the industry benchmark of 4.5. Sabah obtained the highest index of 3.34, while East Coast and Sarawak obtained the lowest indices, with 3.18 and 3.11 respectively. Customer Priority Areas Out of the 12 attributes asked to respondents, eight attributes have been identified as priority areas. Respondents are satisfied in the following priority areas where the performance is above average. § Speed of delivery § Speed of collection § Ability to track items being couriered § Reliable tracking system, e.g. system is functioning accurately Respondents expect an improvement in the following priority areas, which will contribute to higher satisfaction levels. § Speed of handling complaints § Effectiveness of handling complaints § Speed of rectifying complaints / problems § Effectiveness of rectifying complaints / problems

3.22

Industry (N=477)

Consumer Satisfaction Index

FID = 4.5