it is vital that we do whatever we candigi.listedcompany.com/newsroom/DIGI_080403B.pdfMusic Mania...don’t forget what a wonderful heritage of traditional music you have.It has been

Music Mania

...don’t forget what a wonderful heritage of traditional

music you have. It has been passed down through

hundreds of years, and

In many countries around the world,

it is sad to see that people are letting these traditional art forms

die away. Fortunately, there are many others who are trying

their best to keep them alive.”DiGi Yellow Mobile Music Mania, Alor Setar

it is vital that we do whatever we can to make sure we never lose any of it.

“

> Devices such as

this mobile phone

with snap-on camera,

will deliver advanced

wireless services

in response to the

demands of a steadily

growing market.

>In a year marked by challenges and intense competition, DiGi has successfully strengthened its position as a leading player and industry innovator within the mobile communications sector in Malaysia.

46 DiGi.Com Berhad (425190-X)

Chairman’s statement / Penyata pengerusi

Pemegang saham sekalian,

Bagi pihak Lembaga Pengarah DiGi.ComBerhad (“DiGi”), saya sukacita untuk membentangkan Laporan Tahunan dan Penyata Kewangan Kumpulan dan Syarikat bagi tahun kewangan berakhir 31 Disember 2002.

Walaupun menghadapi pelbagaicabaran dan persaingan sengit dalam tahun yang dilaporkan, DiGi telah berjayamemperkukuhkan kedudukannya sebagaisalah satu peserta utama dan pelopor industri dalam sektor komunikasi mudah-alihdi Malaysia. Dalam suasana penggabungandalam industri, DiGi telah berjaya meningkatkanbahagian pasaran dan juga hasil.

Pada tahun lepas, saya menyatakanbahawa dengan sokongan pemegang sahammajoriti,Telenor ASA, DiGi akan menumpukansumbernya untuk membekalkan perkhidmatankomunikasi mudah-alih bermutu tinggi bagipara pelanggan kami. Kami telah mengoraklangkah untuk mencapai objektif ini pada2002 dengan mengambil kesempatan daripadakekuatan Telenor dalam bidang komunikasimudah-alih serta pengalaman dan pengetahuanDiGi dalam arena komunikasi tempatanuntuk memperkenalkan beberapa perkhid-matan inovatif serta nilai untuk wang bagimemenuhi keperluan pelanggan. Langkah ini disokong oleh usaha bersungguh-sungguh

>In a year marked by challengesand intense competition, DiGi has successfully strengthened itsposition as a leading player andindustry innovator within the mobilecommunications sector in Malaysia.

Dear shareholders,

On behalf of the Board of Directors ofDiGi.Com Berhad (“DiGi”), I am pleasedto present to you the Annual Report andFinancial Statements of the Group and theCompany for the financial year ended 31December 2002.

In a year marked by challenges andintense competition, DiGi has successfullystrengthened its position as a leading playerand industry innovator within the mobilecommunications sector in Malaysia. At atime when the industry saw significantconsolidation, DiGi has increased bothmarket share and revenue.

Last year, I mentioned that withTelenor ASA’s support as a majority stakeholder, DiGi would concentrate its resources on providing high-qualitymobile communications services for our customers.We have made strong headway towards this objective in 2002 by leveraging on Telenor’s strengths in

47

We have made strong headway towards this objective in 2002by leveraging on Telenor’s strengths in mobile communicationsand DiGi’s experience in and knowledge of the local communications environment...

mobile communications and DiGi’s experience in and knowledge of the localcommunications environment to introducea number of innovative and value-for-moneyservices to meet customer needs. Coupledwith this was a concerted effort to widenmarket recognition of the DiGi brand.All these activities have contributed to the satisfactory performance achieved by the Group.

Financial performance

During the financial year ended 31December 2002, the Group saw its revenue increase to RM1,289.6 millionfrom the RM747.0 million registered in the preceding 8-month financial period.The higher revenue achieved was mainlycontributed by higher mobile revenuewhich registered a 54% growth in its subscriber base as well as strong demandin mobile data services, particularly shortmessaging services (SMS). Earnings beforeinterest, taxation, depreciation and amorti-sation (“EBITDA”) improved to RM485.4million with a margin of 37.6% for thefinancial year as compared with the 34.2%margin achieved for the preceding 8-monthfinancial period.

The Group’s profit after taxation,however, was affected by higher depreciationand amortisation expense and deferredtaxation expense as compared with thepreceding financial period, following a decision to increase the depreciation rates for telecommunications network and computer systems with effect from

untuk memperluaskan pengiktirafan pasaranterhadap jenama DiGi. Segala kegiatan tersebut telah menyumbang kepada prestasimemuaskan yang dicapai oleh Kumpulan.

Prestasi kewangan

Pada tahun kewangan berakhir 31 Disember2002, Kumpulan telah menambahkan hasilkepada RM1,289.6 juta berbanding RM747.0juta yang dicatatkan pada tempoh kewanganlapan bulan sebelumnya. Kenaikan hasil dicapaiterutamanya daripada hasil mudah-alih yanglebih tinggi, yang mencatat pertumbuhanpelanggan sebanyak 54%, dan juga permintaankukuh dalam khidmat data mudah-alih,khususnya perkhidmatan pesanan pendek(SMS). Pendapatan sebelum faedah, cukai,susut nilai dan pelunasan (“EBITDA”)meningkat kepada RM485.4 juta,dengan margin 37.6% bagi tahun kewangan yang dilaporkanberbanding margin 34.2% yangdicapai bagi tempoh kewanganlapan bulan sebelumnya.

Namun demikian, keuntunganselepas cukai Kumpulan terjejasakibat belanja susut nilai,pelunasan dan cukai tertunda yang lebih tinggi berbanding dengan tempoh

DiGi.Com Berhad (425190-X)


1 July 2002, based on a periodic review ofthe estimated useful lives of property, plantand equipment. Consequently, profit aftertaxation for the financial year under reviewwas lower at RM100.9 million from theRM158.9 million achieved in the preceding 8-month financial period.

Current challenges

During the year under review, DiGi made a strategic decision not to bid forthe 3G spectrum based on its leverageablestrengths and the 2G/3G evolutionaryprocess. Instead, DiGi will play a vital role in the 3G arena in two ways. Firstly,we will deliver advanced and affordablemobile multimedia products and serviceson the existing 2.5G network to meet initialdemand. Secondly, we will progressivelydeliver the full range of mobile multimediaproducts and services by purchasing capacityfrom 3G network operators. In relation to this, DiGi has already taken the lead in educating consumers about the excitingprospects of next-generation mobile communications services.

kewangan sebelumnya, berikutan keputusanuntuk meningkatkan kadar susut nilai bagirangkaian telekomunikasi dan sistem komputeryang berkuatkuasa 1 Julai 2002. Peningkatankadar ini dibuat berdasarkan penilaianberkala jangka hayat anggaran bagi harta benda, loji dan peralatan. Justeru itu, keuntungan selepas cukai bagi tahun kewangan yang dilaporkan adalah lebih rendah, iaitu RM100.9 juta berbandingRM158.9 juta yang dicapai pada tempohkewangan 8 bulan sebelumnya.

Cabaran semasa

Pada tahun yang dilaporkan, DiGi telah membuat keputusan strategik untuk tidakmengemukakan tawaran bagi spektrum 3G, berdasarkan kekuatannya yang boleh dimanfaatkan dan proses evolusi 2G/3G.Sebaliknya, DiGi akan memainkan perananpenting dalam arena 3G menerusi dua cara.Pertama, kami akan membekalkan produkdan perkhidmatan multimedia mudah-alihyang canggih dan berharga-patutan menerusirangkaian 2.5G yang sedia ada untuk memenuhikeperluan awal. Kedua, kami akan secaraberansur-ansur membekalkan rangkaianpenuh produk dan perkhidmatan multimediamudah-alih dengan membeli kapasiti daripadapengendali rangkaian 3G. Dalam perkara ini, DiGi telah memulakan langkah mendidikpengguna tentang prospek menarik perkhid-matan komunikasi mudah-alih generasi akan datang.

Secara keseluruhannya, matlamat DiGiadalah untuk menjadi penyedia perkhidmatankomunikasi mudah-alih pilihan dengan mem-bekalkan tahap dan piawaian kualiti danperkhidmatan yang diharapkan oleh pelanggan,

...to introduce a number of innovative

49

dan memberikan para pemegang saham nilaijangka panjang yang dijangkakan daripadakedudukannya sebagai pelopor revolusi komunikasi mudah-alih. Sepanjang tahun yang dilaporkan, empat perkara telah diberikeutamaan untuk meningkatkan prestasi dan memberikan faedah bagi para pelanggan.Pada asasnya perkara-perkara tersebut termasuk:

• Membina daya saing teras dengan memperkukuhkan kualiti dan kapasitirangkaian, dan memperluaskan liputangeografi. Kami telah mencapai peningkatanbesar dalam prestasi rangkaian, sepertiyang dilihat daripada keputusan siri KajiSelidik Kepuasan Pelanggan baru-baru inimengenai perkhidmatan mudah-alih danUjian Daya Perkhidmatan Titik PenghujungMenyeluruh (EESAT) ke atas kualiti rangkaianmudah-alih oleh Suruhanjaya Komunikasidan Multimedia Malaysia pada akhir tahun yang dilaporkan. Usaha-usaha memper-tingkatkan prestasi rangkaian ini akan diteruskan.

• Mencari peluang-peluang baru untuk menjana pertumbuhan jangka pendek dan jangka panjang dari segi penyediaanpenyelesaian gaya hidup komunikasimudah-alih. Pada 2002, kami telah memperkenalkan beberapa perkhidmataninovatif yang mendapat sambutan baikdaripada pelanggan. Ini dapat dilihat daripada pertumbuhan hasil dalamperkhidmatan komunikasi mudah-alih.Beberapa rancangan juga sedang dirangkauntuk menambahkan bilangan pelanggandengan membekalkan perkhidmatankomunikasi mudah-alih generasi barumenerusi rangkaian 2.5G kami yang sedia ada.

Overall, DiGi’s goal is to become themobile communications service providerof choice by delivering to our customersthe levels and standards of quality andservice they have a right to expect, and to our shareholders the long-term valuethat is anticipated from being at the frontline of the mobile communicationsrevolution. During the year under review,four main areas were prioritised in orderto improve performance and create benefits for our customers.This essentiallyinvolved:

• Fostering core competitiveness bystrengthening network quality andcapacity, and expanding geographicalcoverage.We have already achieved significant improvements in networkperformance as reflected in the resultsof recent Consumer Satisfaction Surveyson mobile services and the ExtensiveEndpoint Service Availability Testing(EESAT) on mobile network quality conducted by the Malaysian Communica-tions and Multimedia Commissiontowards the end of the reporting year, and these efforts will continue.

• Opening new points of leverage forshort- and longer-term growth in termsof innovative mobile communicationslifestyle solutions. In 2002, we introducedseveral innovative services which havebeen well-received by customers asindicated by the growth in revenue frommobile communications services.Thereare also several plans in the pipeline toexpand our existing customer base bydelivering a new generation of mobilecommunications services over ourexisting 2.5G network.

and value-for-money services to meet customer needs.

> Plans are in

the pipeline to

deliver innova-

tive services

such as MMS

over DiGi’s

2.5G network.



• Putting in place targets and action plansto enhance customer service levels tobest-in-class.We have conducted a number of surveys to help us evaluateour service levels, and the year underreview saw the implementation of service enhancement programmes to address the specific customer needs identified in the survey.

• Developing win-win partnerships thatcreate benefits for our customers. DiGihas always been willing to collaboratewith other industry players in the inter-ests of the customer and the industry.Clear evidence of this collaborativestance is seen in our strong support of the Government’s efforts to avoidduplication of infrastructure and optimisecapacity. In fact, the new financial yearcould see DiGi working closely withother service providers on infrastructuresharing and domestic roaming arrange-ments, as well as with content providers,application developers and technologyenablers on the delivery of innovativemobile multimedia products and servicesacross DiGi’s network.

Clearly, our mobile business has strengthened significantly over the yearunder review, as reflected in our healthysubscriber growth to date.This encouraginggrowth trend has been the direct result of our increased focus on the mobile communications segment, which we areconfident is the right direction to take aswe move forward. In line with this emphasis,a strategic business decision has been madeto phase out our Fixed Network businessgradually in 2003. From a business per-spective, it is vital that we recognise ourareas of strength and consolidate these inorder to remain competitive and profitablewithin the challenging market.

• Menetapkan sasaran dan rancangan tindakan untuk meningkatkan tahapperkhidmatan pelanggan kepada yang terbaik dalam kelas. Kami telah menjalankanbeberapa kaji selidik untuk membantukami menilai tahap perkhidmatan kami,dan pada tahun yang dilaporkan, program-program peningkatan perkhidmatan telahdilaksanakan untuk menangani keperluankhusus pelanggan seperti yang dikenalpasti di dalam kaji selidik tersebut.

• Menjalin perkongsian menguntungkankedua-dua pihak yang membawa manfaatkepada para pelanggan kami. DiGi sentiasabersedia untuk bekerjasama dengan parapeserta lain industri demi kepentinganpelanggan dan industri. Bukti jelas kerjasamaini dapat dilihat daripada sokongan kukuhkami terhadap usaha kerajaan mengelakkanpenduaan infrastruktur dan mengoptimumkankapasiti. Malah, pada tahun kewanganbaru, DiGi mungkin berganding bahu denganpembekal-pembekal perkhidmatan laindari segi perkongsian infrastruktur dan pengaturan perantauan domestik.Di samping itu, DiGi juga bekerjasama dengan pembekal kandungan, penciptaaplikasi dan pencetus teknologi untukmembekalkan produk dan perkhidmatanmultimedia mudah-alih inovatif diseluruhrangkaian DiGi.

Jelas bahawa perniagaan mudah-alih kamitelah menjadi semakin kukuh pada tahunyang dilaporkan, seperti yang dapat dilihatdaripada kadar peningkatan pelanggansehingga kini.Trend pertumbuhan menggalakkanini adalah faedah langsung daripada tumpuansemakin khusus kami terhadap segmenkomunikasi mudah-alih. Kami yakin bahawaini merupakan hala tuju yang betul sambilkami mengorak langkah ke hadapan.

51

Going forward, we are confident that themarket for mobile communications lifestylesolutions will grow steadily. Existing con-sumer demand in terms of DiGi’s mobiledata services is buoyant, with approximately60 million SMS messages being sent permonth. In 2003, DiGi will maintain its focuson profitable, easy-to-use services that addvalue for the user.Although we expect themarket to remain challenging and competi-tive, we are committed to building returnsand improvements across every aspect of our business.

Prospects

We believe DiGi can achieve significantgrowth in shareholder value over both theshort and longer terms.Asia, in general,is expected to become a key region formobile communications.The InternationalTelecommunications Union (ITU) has estimated that by 2010, half of a staggering2.2 billion mobile subscribers will be in theAsia Pacific region.The growth prospectsfor Malaysia’s mobile communications andmultimedia industry look exciting.As newgeneration technologies start to roll outover the Malaysian communications land-scape, and as the mobile communicationsmarket matures and mobile users becomemore sophisticated and discerning, there

Sejajar dengan penekanan ini, satu keputusanperniagaan strategik telah dibuat untuk men-gundur diri daripada perniagaan RangkaianTetap secara beransur-ansur pada tahun2003. Dari perspektif perniagaan, kita perlusedar kekuatan kita dan memantapkannyauntuk mengekalkan daya saing dan terusmencatatkan keuntungan dalam pasaran yang mencabar.

Pada masa depan, kami yakin bahawapasaran bagi penyelesaian gaya hidup komu-nikasi mudah-alih akan berkembang denganpesat. Permintaan pengguna yang sedia adabagi perkhidmatan data mudah-alih DiGiamat menggalakkan, di mana kira-kira 60 juta pesanan SMS dihantar setiap bulan. Pada 2003, DiGi akan mengekalkantumpuannya terhadap perkhidmatan yangmembawa keuntungan dan mudah digunakanyang memberikan nilai tambahan kepadapengguna.Walapun kami meramalkanbahawa pasaran akan tetap mencabar dan kompetitif, kami berkomitmen untukmeningkatkan pulangan dan memperbaikisetiap aspek perniagaan kami.

Prospek

Kami percaya DiGi mampu mencapai pertumbuhan besar dalam nilai pemegangsaham dalam jangka pendek dan jangka panjang.Asia pada amnya, dijangka mengambiltempatnya antara rantau paling besar bagikomunikasi mudah-alih. Kesatuan TelekomunikasiAntarabangsa (ITU) menganggarkan bahawamenjelang 2010, separuh daripada 2.2 bilionpelanggan mudah-alih akan berada di rantau

Our long-term vision is firmly focused on providing

leading-edge services in mobilecommunications, and staying

ahead of the competition in terms of innovation, service and

prudent management.



will be growth opportunities for themobile multimedia industry in this country,with all forms of information available literally anywhere, anytime.Towards thisend, DiGi is well-positioned to capitaliseon these opportunities.

Although continued consolidation in Malaysia’s telecommunications industry is inevitable, there is plenty of room forgrowth and expansion in the mobile communications services industry wherethe penetration rate currently stands at38%. In tandem with this, the industry isbenefiting from rapidly evolving technologythat unleashes expanded possibilities todeliver highly-personalised targeted servicesto specific market segments. For DiGi, thisoffers fresh opportunities to make ourmark in the field of mobile content anddata services. Our long-term vision is firmlyfocused on providing leading-edge servicesin mobile communications, and stayingahead of the competition in terms of innovation, service and prudent management.

Future growth will depend increasinglyon delivering customised services thatdirectly address customer needs andwants.This is an area where DiGi hasalready established a strong competitiveadvantage.We will continue to delight customers with compelling mobile content and mobile data services that deliver immediate lifestyle and workstyle benefits.

Asia Pasifik. Prospek pertumbuhan bagi industri komunikasi dan multimedia mudah-alihbegitu cerah sekali. Sambil teknologi generasibaru mula dilancarkan dalam industri komunikasiMalaysia, dan sambil pasaran komunikasi kianmatang dan pengguna mudah-alih menjadilebih canggih dan pandai menilai, pelbagaipeluang pertumbuhan akan wujud dalamindustri multimedia mudah-alih di negara ini, dengan segala bentuk maklumat sedia diperolehi di mana-mana sahaja pada bila-bilamasa. Untuk itu, DiGi berada pada kedudukanyang baik untuk mengambil kesempatan daripada peluang-peluang tersebut.

Walaupun penggabungan berterusandalam industri telekomunikasi Malaysia tidakdapat dielakkan, ruang untuk pertumbuhandan perkembangan dalam industri perkhid-matan komunikasi mudah-alih tetap wujud,di mana kadar penembusan kini hanya pada tahap 38%. Sejajar dengan ini, industrimendapat manfaat daripada teknologi yangsedang pantas berkembang, yang membukapeluang lebih luas untuk membekalkanperkhidmatan tertumpu dan disesuaikansecara peribadi kepada segmen pasarankhusus. Bagi DiGi, ini membuka peluang baru untuk menempa nama dalam bidangperkhidmatan kandungan dan data mudah-alih.Wawasan jangka panjang kami tertumpukepada penyediaan perkhidmatan ungguldalam komunikasi mudah-alih, lantas meletakkandiri di hadapan pesaing dari segi inovasi,perkhidmatan dan pengurusan teliti.

Pertumbuhan masa depan semakinbergantung kepada pembekalan perkhidmatantersesuai yang memenuhi keperluan dankehendak pelanggan secara langsung.Ini merupakan satu bidang di mana DiGitelah membina kelebihan daya saing yangkukuh. Kami akan terus menggembirakan

Future growth will depend increasingly on delivering customisedservices that directly address customer needs and wants.

53

Over the longer term, new possibilities will arise from the introduction of mobile multimedia services. I believe DiGi willbenefit enormously from this as an efficient channel to reach specialised market segments.Taking a proactiveapproach, DiGi has already begun to put measures in place that will enable it to offer innovative, customer-drivenvoice and data mobile communicationsservices to its steadily expanding subscriber base.

Social responsibility

As a corporation, DiGi has looked attowns, cities and communities across thenation, as not just places where it rolls outproducts and services, but as also providingopportunities to interface with local communities in a real and meaningful way.Our ultimate objective is to build a DiGibrand identity that Malaysians want to beassociated with: a creative and caringmobile communications service providerthat invests in both creative products and services, while it reaches out to vulnerable communities.

pelanggan menerusi kandungan dan perkhidmatan data mudah-alih menarik yang membawa manfaat kepada gaya hidup dan gaya kerja pengguna.

Dalam jangka panjang, pelbagai kemungkinan baru akan timbul daripada pengenalan perkhidmatan multimedia mudah-alih. Saya percaya DiGi akan mendapat manfaat besar daripadanya sebagai saluran cekap untuk mencapai segmen pasaran khusus. Dengan mengambilpendekatan proaktif, DiGi telah mulamengambil langkah yang membolehkannyamenawarkan perkhidmatan suara dan data komunikasi mudah-alih yang dipacupelanggan kepada asas pelanggannya yang semakin bertambah.

Tanggungjawab sosial

Sebagai sebuah syarikat korporat, DiGi menganggap bandar, bandar raya danmasyarakat di seluruh negara bukan sahajasebagai tempat untuk melancarkan produkdan perkhidmatan, tetapi juga sebagai peluanguntuk berhubung dengan masyarakat tempatandengan cara yang bermakna dan ikhlas.Matlamat mutlak kami ialah membinasebuah identiti jenama DiGi yang bolehdidekati oleh rakyat Malaysia: iaitu sebuahpembekal perkhidmatan yang kreatif dan prihatin yang melabur dalam produk danperkhidmatan kreatif, sambil menghulur tangan kepada masyarakat yang memerlukan.



In 2002, DiGi launched its DiGi YellowMobile community programme, whichenables underprivileged children inMalaysia to have a unique learning experience that would immerse them in their rich cultural heritage, cuttingacross barriers of race and religion.To date, more than 500 orphans and disadvantaged children in major citiesacross Malaysia have participated in thisseries of highly-interactive arts-basedworkshops.These special children havebeen joined in their journey of discoveryand learning by some of the country’s well-known artists, musicians, dancers,craftspeople and theatre personalities,who have generously contributed theirtime and effort towards the success of the programme.

This community service effort is reflected in the community relations section introduced in this year’s annual report.

Pada 2002, DiGi melancarkan programkemasyarakatan DiGi Yellow Mobile, yangmembolehkan kanak-kanak kurang bernasibbaik di Malaysia menimba pengalaman pembelajaran unik yang mendekatkan mereka kepada khazanah warisan kebudayaanmereka, tanpa mengira bangsa dan agama.Sehingga kini, lebih 500 anak-anak yatim dankanak-kanak kurang bernasib baik di bandarraya utama di Malaysia telah mengambilbahagian dalam bengkel interaktif berasaskanseni ini. Penerokaan dan pembelajarankanak-kanak tersebut dimeriahkan olehbeberapa artis, pemuzik, penari, karyawandan personaliti teater terkemuka negara, yangtelah meluangkan masa dan tenaga untukmenjayakan program ini.

Kegiatan perkhidmatan masyarakat initertera di bahagian hubungan masyarakatyang diperkenalkan dalam laporan tahunankali ini.

Penghargaan

Bagi Pihak Lembaga Pengarah, saya ingin merakamkan penghargaan saya kepada kakitangan DiGi di semua peringkat keranaazam, komitmen dan kerja keras mereka.Usaha gigih mereka telah membolehkansyarikat mencatatkan prestasi yang begitumemberangsangkan. Ramai yang telah secarasukarela mengibarkan bendera DiGi dalammasyarakat menerusi penglibatan dalam pelbagai akitiviti kebajikan syarikat.

We will continue to delight customers with compelling mobilecontent and mobile data services that deliver immediatelifestyle and workstyle benefits.

55

Acknowledgements

On behalf of the Board of Directors,I would like to pay tribute to the hardwork, drive and commitment of DiGi staffat all levels.They have made it possible forthe company to turn in a highly creditableperformance. Many have also volunteeredtheir time to fly the DiGi flag in the community through their involvement in the various outreach activities.

My gratitude also goes to Telenor fortheir full commitment to enabling a highlevel of synergy in the areas of management,technology and innovation.

I would also like to thank my colleagueson the Board of Directors and membersof the Operating Committee.Their expertise,knowledge and professionalism have beenvital in providing strong focus and directionthrough the challenges we have faced inthe year under review.

The Ministry of Energy, Communica-tions and Multimedia (MECM) and theMalaysian Communications and MultimediaCommission (MCMC) have created a con-ducive regulatory and business environmentto enable the provision of world-classinfrastructure, products and services in Malaysia.We would like to place on record our appreciation for their vision,clear-sightedness and support.

To our shareholders, financial partners,industry partners, media and customers,our grateful thanks for your faith in DiGi.Your efforts and loyalty are deeply appreciated and will continue to spur us on to higher levels of performance and achievement.

Tan Sri Dato’ Seri Vincent Tan Chee YiounChairman20 March 2003

Saya juga amat berterima kasih kepadaTelenor kerana komitmen kukuh mereka telahmembolehkan tahap sinergi yang tinggi dicapai dalam bidang pengurusan, teknologidan inovasi.

Saya juga ingin mengucapkan terimakasih kepada rakan-rakan saya dalam LembagaPengarah dan ahli-ahli Jawatankuasa Operasi.Kepakaran, pengetahuan dan profesionalismemereka sangat penting untuk memberikantumpuan dan hala tuju yang kukuh dalammenghadapi cabaran-cabaran pada tahunyang dilaporkan.

Kementerian Tenaga, Komunikasi dan Multimedia (KTKM) dan SuruhanjayaKomunikasi dan Multimedia Malaysia(SKMM) telah mewujudkan suasana kawalselia dan perniagaan yang sesuai untuk membolehkan infrastruktur, produk danperkhidmatan bertaraf dunia dibekalkan di Malaysia. Kami ingin mengucapkan setinggi-tinggi penghargaan kerana wawasan,pandangan jauh dan sokongan mereka.

Kepada para pemegang saham, rakankewangan, rakan industri dan pelanggan kami, ribuan terima kasih diucapkan keranakepercayaan anda terhadap DiGi. Usaha dankesetiaan anda yang amat sangat kami hargaiakan terus memacu kami ke arah prestasidan pencapaian yang lebih tinggi.

Tan Sri Dato’ Seri Vincent Tan Chee YiounPengerusi20 Mac 2003


> Rapidly evolving

mobile technology

is creating opportu-

nities to move up

the value chain and

increase revenue

from advanced

communications

services.

Drama Delight

Today in Malaysia, theatre and

drama are slowly taking centre

stage again. It is really quite

wonderful to see the way

these performances help bind Malaysians together

“

DiGi Yellow Mobile Drama Delight, Johor Bahru

as we laugh at our uniquely Malaysian mannerisms, or perhaps weep at our own ‘blindness’ that stops us from

seeing what a rich cultural treasure we have inherited.”DiGi Yellow Mobile Drama Delight, Johor Bahru

04 Annual Report 31.12.2002 Laporan Tahunan

Corporate Milestones58 DiGi.Com Berhad (425190-X)

Operations review / Tinjauan operasi

Gambaran keseluruhan

Walaupun anak syarikat milik penuh DiGiyang utama, iaitu DiGi TelecommunicationsSdn Bhd, mempunyai beberapa lesen untukmembekalkan perkhidmatan telekomunikasilengkap, tumpuan utamanya adalah untukmembekalkan produk dan perkhidmatanbernilai tinggi bagi memenuhi keperluanpasaran komunikasi mudah-alih yang sedangpantas berkembang di Malaysia. Sehingga kini,DiGi telah mencapai pertumbuhan mendadakdalam bilangan pelanggan perkhidmatanmudah-alih, dan kini merupakan antara pembekal perkhidmatan komunikasi mudah-alih yang utama di Malaysia.

Strategi keseluruhan DiGi adalah untukmencipta nilai bagi pemegang saham denganmengambil kesempatan daripada tinjauancerah bagi produk dan perkhidmatan mudah-alih nilai tambah. Khidmat data dan kandunganmudah-alih dijangka membentuk asas bagikomunikasi multimedia, maklumat dan hiburandan DiGi sedang menempatkan dirinya untukmengambil kesempatan penuh daripada peluang-peluang menarik untuk membekalkanperkhidmatan yang lebih bernilai kepadapelanggan dan meningkatkan hasil daripadaperkhidmatan komunikasi mudah-alih lanjutan.Usaha DiGi untuk mengekalkan pertumbuhandan keuntungan tertumpu kepada komitmen-nya untuk mencapai tahap kepuasan pelanggantertinggi menerusi peningkatan kualiti, liputandan kecekapan perkhidmatan.

>DiGi is determinedto build on itsstrengths andachievements todate in order toenhance share-holder value.As the companymoves into 2003,the focus is verymuch on improvingoperational andcost effectiveness...

Overview

While DiGi’s wholly-owned core operatingsubsidiary company, DiGi TelecommunicationsSdn Bhd, has several licences to providefull telecommunications services, its primary focus is on delivering high-valueproducts and services to meet the needsof the rapidly expanding mobile communi-cations market in Malaysia.To date, DiGihas seen tremendous mobile subscribergrowth, and is now a leading mobile com-munications service provider in Malaysia.

DiGi’s overall strategy is to createshareholder value by capitalising on thebright outlook for value-added mobilemultimedia products and services. Mobiledata and content offerings are expected to form the cornerstone for multimediacommunications, information and enter-tainment, and DiGi is positioning itself to take advantage of the exciting

05

Profile of Chief Operating Officer04 Annual Report 31.12.2002 Laporan Tahunan

Corporate Milestones

> The need to

exchange mul-

timedia content

between home

and office and

while on the

move, is driving

the design

of the next

generation

of wireless

devices.

59

Pada tahun kewangan berakhir 31 Disember2002, DiGi berjaya menambahkan hasil kepadaRM1,289.6 juta berbanding RM747.0 jutayang dicatatkan pada tempoh kewanganlapan bulan sebelumnya. Berbanding denganhasil tahunan yang diunjurkan bagi tempohkewangan 8 bulan lepas, DiGi mencatatkanpertumbuhan hasil sebanyak 15% bagiTK2002. Pencapaian ini jelas mencerminkanpeningkatan 54% dalam bilangan pelangganDiGi dan kenaikan permintaan bagi perkhid-matan data mudah-alih, khususnya perkhidmatanpesanan pendek (SMS). Namun begitu untungbersih Kumpulan terjejas akibat kos susutnilai dan pelunasan dan belanja cukaitertunda yang lebih tinggi bagitahun kewangan yang dilaporkan.

Belanja susut nilai dan pelunasan lebih tinggi berjumlahRM281.0 juta disebabkan olehpeningkatan kadar susut nilai,yang berkuatkuasa pada 1 Julai2002, bagi rangkaian telekomu-nikasi dan sistem komputer.

...and investing wisely in high growth value-added servicesthat meet customer needs.

opportunities to move further up thevalue chain and increase revenue fromthese advanced mobile communicationsservices.At the heart of DiGi’s efforts forsustained growth and profitability is itscommitment to achieving the highest levelsof customer satisfaction through improvedquality, coverage and service efficiency.

During the financial year ended 31 December 2002, DiGi saw its revenueincreasing strongly to RM1,289.6 millionfrom the RM747.0 million registered in the preceding 8-month financial period.Compared against the annualised revenueachieved in the preceding 8-month financialperiod, DiGi recorded 15% revenuegrowth for FY2002.These achievementsclearly reflect the 54% increase in DiGi’ssubscriber base and growth in demand for mobile data services, particularly shortmessaging services (SMS).The Group’s netprofit performance was affected by muchhigher depreciation and amortisation costsand deferred taxation expense for thefinancial year.

The higher depreciation and amorti-sation expense of RM281.0 million wasattributed to an increase in depreciationrates with effect from 1 July 2002 fortelecommunications network and computersystems based on a periodic review of theestimated useful lives of property, plantand equipment.There was a deferred taxation expense of RM44.9 million as compared with the deferred taxationbenefit of RM37.0 million recorded in the preceding 8-month financial period.



Consequently, profit after taxation for thefinancial year under review was lower atRM100.9 million from the RM158.9 millionachieved in the preceding financial period.

Nevertheless, the improvement inDiGi’s performance was much strongerthan these results suggest, given that themargin for earnings before interest, taxation,depreciation and amortisation (“EBITDA”)improved to 37.6% for the current financialyear as compared with 34.2% for the preceding 8-month financial period. In fact,the EBITDA margin for the final quarter of FY2002 itself improved to 42.9%.

Opening the door to a greater rangeof innovative, customer-focused services,DiGi’s preferred option of service differen-tiation will be the key to its success withinthe mobile multimedia market.As a serviceprovider, DiGi is well-positioned torespond to the challenges of fast-pacedmobile communications technology, in providing rich multimedia content tomobile phone users in Malaysia.

> People will

soon be able to

use mobile

phones to zap

graphics, pic-

tures, video,

music and

all kinds of

information to

other mobile

devices of

friends, family

or colleagues

in a matter

of seconds.

Kenaikan kadar ini dibuat berdasarkan penilaian berkala jangka hayat anggaran bagi harta benda, loji dan peralatan.Terdapatbelanja cukai tertunda berjumlah RM44.9 jutaberbanding dengan pendapatan cukai tertundaberjumlah RM37.0 juta yang dicatatkan padatempoh kewangan lapan bulan sebelumnya.Akibatnya, keuntungan selepas cukai bagitahun kewangan yang dilaporkan adalah lebihrendah, iaitu RM100.9 juta, berbandingRM159.8 juta yang dicapai pada tempohkewangan sebelumnya.

Namun demikian, peningkatan dalamprestasi DiGi jauh lebih kukuh daripada yangdipaparkan oleh keputusan ini, memandangkanmargin bagi keuntungan sebelum faedah,cukai, susut nilai dan pelunasan (“EBITDA”)meningkat kepada 37.6% bagi tahun kewan-gan semasa berbanding dengan 34.2% bagitempoh kewangan 8 bulan sebelumnya.Malah, margin EBITDA bagi suku terakhirTK2002 meningkat kepada 42.9%.

Pilihan DiGi untuk membezakanperkhidmatannya, yang membuka jalan untuk memperkenalkan rangkaian perkhidmataninovatif dan tertumpu kepada pelanggan yanglebih meluas, akan menjadi kunci kejayaandalam pasaran multimedia mudah-alih.Sebagai pembekal perkhidmatan, DiGi beradapada kedudukan baik untuk menghadapicabaran-cabaran teknologi komunikasi yangpantas berkembang, dengan membekalkankandungan multimedia canggih kepada pengguna telefon mudah-alih di Malaysia.

DiGi is well-positioned to respond to the challenges of fast-

61

> DiGi will take

the lead as a

cutting-edge

player in

the mobile

communications

market by

offering services

customers

need and want.

Mobile communications services

In a highly competitive business environment,DiGi achieved strong growth in its mobilecommunications business, averaging signifi-cant monthly subscriber net additions andmaintaining its market leadership positionin the prepaid segment. Its overall subscribergrowth at 54% was well above the industryaverage growth rate of 30%.

These improvements were driven bya number of key initiatives aimed at growingrevenue, minimising churn and improvingefficiency across all DiGi operations.A renewed focus on the prepaid businesssaw the launch of DiGi’s Enhanced PrepaidPlus service in line with the company’sstrategy to increase revenue while migratingits customers up the value chain to moreadvanced mobile communications services.In tandem with this, DiGi continued toinvest in its network enhancement activitiesin a highly-focused way, adhering to its customer-centric strategy of providingusers with a positive mobile communicationsexperience.

This emphasis has resulted in strongcustomer recognition of DiGi’s leadershiprole in terms of introducing innovativeideas, technologies and services to Malaysianmobile subscribers. During the year underreview, DiGi continued to build on itspresence as an industry-leading mobilecommunications service provider.The following stand among its notableachievements during the reporting year:

Perkhidmatan komunikasi mudah-alih

Dalam suasana perniagaan yang sangat kompetitif, DiGi mencapai pertumbuhankukuh dalam perniagaan komunikasi mudah-alihnya, dengan mencatatkan purata pertambahan bersih pelanggan dan mengekalkan kepimpinan pasarannyadalam segmen prabayar. Pertumbuhan pelanggan keseluruhan DiGi sebanyak 54% jauh mengatasi kadar pertumbuhanpurata 30% dalam industri.

Peningkatan ini diperolehi hasil beberapainisiatif penting yang bertujuan menambahkanhasil, mengurangkan perpindahan pelanggandan meningkatkan kecekapan di seluruhoperasi DiGi.Tumpuan baru terhadap pernia-gaan prabayar telah menyaksikan pelancaranperkhidmatan Enhanced Prepaid Plus DiGi.Ini selaras dengan strategi syarikat untukmeningkatkan hasil sambil memindahkanpelanggannya kepada perkhidmatan yanglebih bernilai, iaitu kepada perkhidmatankomunikasi mudah-alih yang lebih canggih.


y.paced mobile communications technology.

• It became the first local mobile commu-nications service provider to introduceAutomatic International Roaming on itsprepaid platform when it launched itsenhanced DiGi Prepaid Plus service.This new service enables DiGi PrepaidPlus customers to make and receivecalls when they travel to countries withwhich DiGi has roaming agreements.The list of DiGi’s international roamingpartners grew steadily during the year,enabling DiGi’s prepaid subscribers toroam in over 50 countries.

• It became the first operator to launch a customer loyalty programme, Your DiGi,for both postpaid as well as prepaidmobile subscribers throughout thecountry.

• DiGi introduced its General PacketRadio Service (GPRS), based on a “payas you use” charging mechanism.Withthe availability of GPRS on its network,DiGi became the first mobile communi-cations service provider in Asia to offerGPRS services on both the prepaid andpostpaid platforms.

• DiGi introduced the RM30 prepaidreload denomination, in addition to its existing RM50 and RM100 reloadoptions, to address the needs of its various prepaid subscriber profiles.In addition, DiGi’s prepaid customerscan enjoy greater value from theincreased validity periods of 30, 50 and 100 days respectively for eachreload denomination option.

Selaras dengan ini, DiGi terus melabur dalam kegiatan memperbaiki rangkaian dengan cara yang tertumpu, dan mematuhistrategi mementingkan pelanggan melaluimembekalkan pengguna dengan pengalamankomunikasi mudah-alih yang positif.

Hasil daripada penekanan ini, parapelanggan mengiktiraf peranan DiGi sebagaipelopor dalam memperkenalkan idea, teknologidan perkhidmatan inovatif kepada pelangganmudah-alih Malaysia. Pada tahun yang dila-porkan, DiGi terus membina kedudukannyasebagai pembekal perkhidmatan komunikasimudah-alih yang utama dalam industri.Berikut adalah antara pencapaian DiGi pada tahun yang dilaporkan:

• Menjadi pembekal perkhidmatan komunikasimudah-alih tempatan pertama untukmemperkenalkan Perantauan AntarabangsaAutomatik bagi khidmat prabayarnya apa-bila melancarkan perkhidmatan EnhancedPrepaid Plus. Perkhidmatan baru ini mem-bolehkan para pelanggan DiGi PrepaidPlus membuat dan menerima panggilansemasa mengembara di negara-negarayang mempunyai perjanjian perantauandengan DiGi. Senarai rakan perantauanantarabangsa DiGi telah meningkat secaraberansur-ansur dalam tahun yang dila-porkan, lantas membolehkan pelangganprabayar DiGi merantau di lebih 50 negara.

• Menjadi pengendali pertama untuk melan-carkan program kesetiaan pelanggan, iaituYour DiGi, bagi pelanggan prabayar danpasca bayar di seluruh negara.

• Memperkenalkan Perkhidmatan PaketRadio Am (GPRS) berdasarkan mekanisme“bayar apabila guna”. Dengan menyediakanGPRS dalam rangkaiannya, DiGi menjadipembekal perkhidmatan komunikasimudah-alih pertama di Asia untukmenawarkan perkhidmatan GPRS bagi kedua-dua landasan prabayar dan pasca bayar.

> DiGi plans

to grow and

retain its

subscriber

base by deliv-

ering innovative

services and

the highest

levels of cus-

tomer service.

By migrating to IN functionality...


63

• It pioneered the online prepaid reload system in partnership with MOL AccessPortal Bhd.This establishedan e-commerce milestone for Malaysia,enabling DiGi customers to replenishtheir prepaid mobile airtime credit andpurchase chatz, DiGi’s InternationalCalling Card, at MOL’s website. Customerscan now access these services on theirown computers at anytime and fromanywhere around the world.

• In partnership with Citibank, DiGi once again broke new ground when it introduced the country’s first autoreload facility for its DiGi Prepaid Pluscustomers.This enables customers toreload their mobile airtime automatically,using their credit cards.

Clearly, DiGi’s proven strategy for renewedgrowth and profitability in the postpaidbusiness has been to target business usersby focusing on value-added mobile contentand data services and providing outstandingcustomer service for both corporate andindividual customers in Malaysia.

...DiGi will be able to differentiate itself in the marketplace...

• DiGi memperkenalkan pecahan isian semula prabayar RM30, selain daripadapecahan nilai RM50 dan RM100 untukmemenuhi keperluan pelanggan mudah-alihnya yang pelbagai. Di samping itu,pelanggan prabayar DiGi boleh menikmatinilai hebat daripada tempoh sah lebihlama yang ditawarkan, iaitu 30, 50 dan100 hari bagi setiap pecahan nilai isiansemula tersebut.

• Merintis sistem isian semula prabayardalam talian dengan kerjasama MOLAccessPortal Bhd. Ini merupakan satumercu tanda e-dagang di Malaysia, yangmembolehkan para pelanggan DiGi mengisisemula kredit masa udara mudah-alihprabayar dan membeli chatz, Kad PanggilanAntarabangsa DiGi, di laman web MOL.Para pelanggan kini boleh menggunakankemudahan-kemudahan ini menerusi komputer mereka pada bila-bila masa di mana-mana sahaja di dunia.



...and maximise its profits by opening the door to a greaterrange of new and innovative, customer-driven mobile multimediaproducts and services for its subscribers.

DiGi’s mobile Internet service sustainedgrowth during the year through innovativeprogrammes and promotions to raiseawareness and interest.Two new serviceswere launched in the year under review,namely Master Djuice, allowing subscribersto check their Chinese horoscope at anytime, and Stock Tracker, which givesthem access to stock prices on the KualaLumpur Stock Exchange.Additionally,SMS-based contests were also run in collaboration with popular TV programmesaired on ntv7, to promote mobile dataservices to a highly-targeted consumergroup, while the VAS Messaging CultureCampaign and the World Cup SponsorshipProgramme helped drive SMS usage.DiGi also introduced dDate, an SMS datingservice via private SMS chatrooms, madeavailable to users in Malaysia, China,Thailand and Singapore.

• Melalui kerjasama dengan Citibank,DiGi sekali lagi menjadi perintis apabila memperkenalkan kemudahan isian semulaautomatik yang pertama di negara ini bagi para pelanggan DiGi Prepaid Plus.Pelanggan boleh mengisi semula masaudara mudah-alih mereka secaraautomatik, menggunakan kad kredit.

Jelas bahawa strategi terbukti DiGi untukmencapai pertumbuhan dan keuntunganberterusan dalam perniagaan pasca bayardilaksanakan dengan menyasarkan penggunaperniagaan menerusi tumpuan kepadaperkhidmatan kandungan dan data mudah-alih nilai tambah serta membekalkan perkhidmatan pelanggan unggul bagi parapelanggan korporat dan individu di Malaysia.

Pertumbuhan berkekalan perkhidmatanInternet mudah-alih DiGi pada tahun yangdilaporkan dicapai menerusi program dan promosi inovatif untuk meningkatkan minatdan kesedaran. Dua perkhidmatan baru telahdilancarkan pada tahun yang dilaporkan, iaituMaster Djuice, yang membolehkan pelangganmembaca horoskop Cina pada bila-bila masa,dan Stock Tracker, yang memberikan merekaakses kepada harga-harga saham di BursaSaham Kuala Lumpur. Di samping itu,pertandingan-pertandingan berasaskan SMS turut dianjurkan dengan kerjasama ntv7berdasarkan rancangan-rancangan TV popularmereka, untuk menggalakkan penggunaanperkhidmatan data mudah-alih di kalangankumpulan pengguna sasaran. Sementara itu,Kempen Budaya Pesanan VAS dan ProgramTajaan Piala Dunia telah membantu meng-galakkan penggunaan SMS. DiGi juga telahmemperkenalkan dDate, perkhidmatan berkenalan menerusi SMS menggunakan bilik perbualan SMS yang disediakan kepadapengguna di Malaysia, China,Thailand dan Singapura.

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In May 2002, DiGi introduced the ContentProvider Access (CPA) concept in Malaysiain line with its commitment to deliveringcustomer satisfaction and growing themobile content industry in Malaysia.The CPA concept, a Telenor initiative,will see mobile communications serviceproviders opening up the value chain to content providers, giving them access to their subscriber bases. It offers a win-win business model, with highlyfavourable revenue-sharing mechanisms.Content providers benefit from a singlepoint of access to mobile communicationscustomers while maintaining full controlover how their content and services aremanaged, charged, promoted and used.DiGi has already signed up more than 25content providers under this programme.

Network

As part of its commitment to providingthe best quality and coverage in areas it serves, DiGi placed high priority on stabilising its network. Significant enhance-ment efforts put in place during the yearpushed network availability to above 99%.The company undertook a complete audit of the network, with most sites being upgraded to new civil, power and transmission standards.This alsohelped improve the quality and reliabilityof the network.

Pada Mei 2002, DiGi memperkenalkan konsepAkses Pembekal Perkhidmatan (CPA) di Malaysia,selaras dengan komitmennya untuk memberikankepuasan kepada pelanggan dan memperkem-bangkan industri kandungan mudah-alih di Malaysia. Konsep CPA, yang merupakansatu inisiatif oleh Telenor, akan menyaksikanpembekal perkhidmatan komunikasi mudah-alih membuka rantaian nilai kepada pembekalkandungan, lantas membolehkan pembekalkandungan tersebut mencapai pelanggankomunikasi mudah-alih mereka. Model iniialah satu model perniagaan yang meman-faatkan kedua-dua pihak, menggunakanmekanisme perkongsian hasil yang menguntung-kan. Pembekal kandungan mendapat manfaatdaripada adanya titik akses tunggal kepadapelanggan komunikasi mudah-alih, sambilmengekalkan kawalan penuh terhadapbagaimana kandungan dan perkhidmatanmereka diuruskan, dicaj, dipromosi dan digunakan. DiGi telah mendaftar lebih 25pembekal kandungan di bawah program ini.

Rangkaian

Sebagai sebahagian daripada komitmennyauntuk membekalkan kualiti dan liputan terbaik di tempat-tempat perkhidmatannya,DiGi memberi keutamaan untuk menstabilkanrangkaiannya. Usaha yang dilakukan sepanjangtahun laporan untuk memperbaiki rangkaiantelah meningkatkan tahap ketersediaanrangkaian kepada 99%. Syarikat telah menjalankan satu audit rangkaian yangmenyeluruh. Hasilnya memperlihatkankebanyakan tapak telah dinaik taraf untukmematuhi piawaian sivil, kuasa dan transmisiyang baru. Langkah ini juga telah membantumeningkatkan kualiti dan kebolehpercayaanrangkaian.

> Under the CPA

programme,

content

providers will

have a single

point of access

to mobile

communications

customers.



Customer recognition of DiGi’s good network quality, capacity and steadilyexpanding coverage has been consistentlyreflected in the series of Consumer Satis-faction Surveys on mobile services conductedby the Malaysian Communications andMultimedia Commission (MCMC) duringthe review period. Overall, the companyhas shown a strong performance across a number of categories, where surveyedconsumers have identified key areas ofDiGi’s strength, namely improved networkquality, capacity and coverage, particularlyin terms of clarity, reduced congestion andminimal dropped calls. Subscribers alsoacknowledged DiGi’s steadily expandinggeographical coverage and attested to experiencing the least number of difficulties with DiGi as compared with other service providers.

Underscoring this achievement is the fact that the ability of its customers tomake and complete calls without networkcongestion, noise or disruption is of para-mount concern at DiGi, and continuousoptimisation, upgrades and enhanced features are in place to ensure this.DiGi’s consistent results in the MCMC’sindependent Extensive Endpoint ServiceAvailability Testing (EESAT) for mobile network performance, which benchmarksthe Quality of Service (QoS) for mobilenetworks within the industry, clearlyreflect DiGi’s commitment to maintaininghigh standards of network quality. DiGiachieved impressive industry performanceresults, particularly in the EESAT test categories of signal strength and quality,as well as minimal dropped call and congestion rates.

Pengiktirafan pelanggan terhadap kualiti,kapasiti dan liputan rangkaian DiGi yangsemakin luas dapat dilihat secara konsistendalam siri Kaji Selidik Kepuasan Penggunabagi perkhidmatan mudah-alih yang dijalankanoleh Suruhanjaya Komunikasi dan MultimediaMalaysia (SKMM) dalam tempoh yang dilaporkan. Secara keseluruhannya, syarikattelah mencatatkan prestasi yang mem-berangsangkan dalam beberapa kategori.Para pengguna yang disoal selidik telah mengenal pasti bidang-bidang kekuatan penting DiGi, iaitu kualiti, kapasiti dan liputanrangkaian yang lebih baik, khususnya dari segikejelasan, tahap kesibukan yang lebih rendahdan bilangan panggilan terlepas yang minimum.Para pelanggan juga mengakui bahawa DiGitelah memperluaskan liputan kawasannyadan menyatakan bahawa mereka menghadapibilangan kerumitan paling kecil bersama DiGiberbanding dengan pembekal perkhidmatan lain.

Pencapaian ini merupakan hasil usahaDiGi memastikan para pelanggannya dapatmembuat dan menamatkan panggilan tanpakesibukan rangkaian, bunyi bising atau gangguan.Langkah mengoptimum, menaik taraf danmeningkatkan ciri-cirinya terus dilaksanakanuntuk mencapai tujuan tersebut. Keputusankonsisten DiGi dalam Ujian Daya PerkhidmatanTitik Penghujung Menyeluruh (EESAT) bagiprestasi rangkaian mudah-alih, yang menandaaras Kualiti Perkhidmatan (QoS) rangkaianmudah-alih dalam industri, jelas mencerminkankomitmen DiGi untuk mengekalkan tahapkualiti rangkaian yang tinggi. DiGi mencapaikeputusan industri yang mengagumkan,khususnya dalam kategori ujian EESAT bagikekuatan dan kualiti isyarat, dan juga bagikadar panggilan terlepas dan kesesakan yang minimum.

Menjelang akhir tahun yang dilaporkan,DiGi telah membuat pelaburan strategikuntuk melaksanakan sebuah pusat peman-tauan rangkaian baru, iaitu Sistem KawalanMaklumat Pengurusan Automasi RangkaianDiGi atau DiNAMICS. Sistem ini membolehkanDiGi mendapat tinjauan menyeluruh masasebenar bagi seluruh infrastruktur rangkaian1800 MHz GSM di seluruh negara, lantasmembenarkan pemantauan aktif rangkaian,

> Today’s mobile

professionals

are counting

on greater

connectivity

and flexibility

to enhance

productivity.

67

Towards the end of the year under review,DiGi strategically invested in implementinga new network monitoring centre, DiGi’sNetwork Automated Management Informa-tion Control System or DiNAMICS.The system enables DiGi to have a real-timeend-to-end view of its entire 1800 MHzGSM network infrastructure throughoutthe country, allowing the proactive monitoringof the network, as well as facilitating an immediate and effective response.This innovative technology not only providesa consolidated view of the network, butwill also support future business requirementsin DiGi’s delivery of mobile multimediaproducts and services, thus ensuring ongoing superior network quality and reliability towards enhancing service excellence.

International services

In a highly challenging business environment,DiGi’s International Services continued to sustain its performance, recordingRM193.5 million in revenue at the end of the reporting year.The main contributionto this revenue came from IDD traffic interms of both transit and inbound terminatingminutes. Despite intense competition fromglobal and domestic carriers which pushedrates and margins lower, however, DiGi still registered a positive increase in termsof revenue.

dan juga memudahkan tindak balas serta-mertadan berkesan diambil.Teknologi inovatif inibukan sahaja memberikan tinjauan bersepaduterhadap rangkaian, tetapi juga akanmenyokong keperluan perniagaan masadepan apabila DiGi membekalkan produk dan perkhidmatan multimedia mudah-alih,seterusnya menjamin kualiti dan kebolehper-cayaan unggul rangkaian yang berterusanuntuk meningkatkan kecemerlangan perkhidmatan.

Perkhidmatan antarabangsa

Dalam suasana perniagaan yang sangat mencabar, Perkhidmatan Antarabangsa DiGi terus mengekalkan prestasinya, denganmencatatkan hasil RM193.5 juta pada akhirtahun yang dilaporkan. Penyumbang utamahasil diperolehi daripada lalu lintas IDD, iaitudari segi minit penamatan transit dan masuk.Walaupun menghadapi persaingan sengitdaripada pembawa global dan domestik, yangmengakibatkan kejatuhan kadar dan margin,DiGi terus mencatatkan peningkatan positifdari segi hasil.

Perkhidmatan Pembawa Antarabangsaterus memperkukuhkan kedudukan pasarandengan memberi penekanan kepada pembekalan litar suara yang berkualiti dan boleh dipercayai pada kos lebih rendah.Menjelang akhir tahun, DiGi mempunyai lebih50 perkongsian langsung dengan perundingasing dan rangkaian global yang semakinmeluas. ISC-3 yang dilengkapi dengan kemu-dahan terkini telah ditauliahkan sebagai pintumasuk antarabangsa ketiga pada Disember2002 untuk menyokong ISC-1 dan ISC-2 yang sedia ada, dan membekalkan keperluanpensuisan dan kapasiti tambahan bagi laluan-laluan baru.

DiGi recognises that alongside high-quality voice services and enhanced geographical coverage...


International Carrier Services continued to strengthen its market position throughits emphasis on providing quality and reliablevoice circuits at lower cost. By the year-end,it had more than 50 direct partnershipswith foreign correspondents and anexpanding global network.The ISC-3,equipped with state-of-the art facilities,was commissioned as a third internationalgateway in December 2002 to complementthe existing ISC-1 and ISC-2, and to provideadditional switching and capacity requirementsfor new routes.

During the financial year under review,DiGi made substantial progress in strength-ening its position for more customer-focusedservices through investments in next-gen-eration Voice over Internet Protocol (VoIP)technology.This will allow the delivery oftraditional and value-added voice servicesusing packet-based technologies to meetthe increasingly complex requirements of the marketplace.As such, DiGi’sInternational Carrier Services will be able to provide premium voice quality and more advanced voice features to meetthe demands of different customer segments.

In support of the Government’s effortsto establish a cutting-edge telecommunica-tions infrastructure in Malaysia, DiGi’sInternational Carrier Services also continuedto work closely with licensed ApplicationService Providers (ASPs), allowing themcommunications access to the rest of theworld. Collaborative efforts such as thisclearly underscore DiGi’s commitment inspearheading greater growth and synergieswithin the industry.

The reporting year also saw stronggrowth in sales of chatz, DiGi’s InternationalCalling Card. chatz has gained immensemarket popularity through its attractivecall rates, and DiGi has enhanced the service by introducing chatz Load, a top-upservice, in addition to its earlier launchedchatz International Toll Free Service (ITFS).

Pada tahun kewangan yang dilaporkan, DiGitelah mencapai kemajuan besar bagi meman-tapkan kedudukannya untuk menawarkanperkhidmatan yang lebih tertumpu kepadapelanggan dengan melabur dalam teknologiProtokol Suara Menerusi Internet (VoIP).Ini membolehkan pembekalan perkhidmatansuara tradisional dan nilai tambahan menggu-nakan teknologi berasaskan paket bagimemenuhi keperluan pasaran yang semakinrumit. Justeru itu, Perkhidmatan Pembawa DiGi akan membekalkan kualiti suara premiumdan ciri-ciri suara lebih canggih untuk memenuhipermintaan segmen pelanggan yang berbeza.

Untuk menyokong usaha Kerajaanmembina infrastruktur telekomunikasi yangcanggih di Malaysia, Perkhidmatan PembawaAntarabangsa DiGi juga terus bekerjasamarapat dengan Pembekal Perkhidmatan Aplikasi(ASP) berlesen, dan memberikan mereka akseskomunikasi ke seluruh dunia. Kerjasama sepertiini jelas membuktikan komitmen DiGi memacutahap pertumbuhan dan sinergi lebih tinggidalam industri.

Tahun yang dilaporkan juga mencatat pertumbuhan kukuh dalam penjualan chatz,iaitu Kad Panggilan Antarabangsa DiGi. chatzkian popular kerana kadar panggilannya yangberpatutan, dan DiGi telah memperbaiki lagiperkhidmatan ini dengan memperkenalkanchatz Load, satu perkhidmatan isian semula,selain daripada Perkhidmatan Tanpa TolAntarabangsa (ITFS) chatz yang telah dilancarkan terlebih dahulu.

Perkhidmatan pelanggan

Menyediakan tahap perkhidmatan pelangganyang sewajarnya menjadi sebahagian pentingdaripada strategi DiGi untuk mengekalkandan menambahkan bilangan pelanggan.Dalam satu rancangan tindakan yang proaktif,Bahagian Perkhidmatan Pelanggan telahmeningkatkan kecekapan operasi denganmengambil kesempatan daripada teknologiyang sedia ada. Satu contoh ialah projek Pusat Hubungan Bersepadu Bahagian ini,yang dijangka akan melaksanakan satu sistem

...it will be critical to meet the growing demand for more


69

Customer service

Delivering the appropriate levels of customerservice is a pivotal part of DiGi’s strategyto retain and grow its subscriber base.In a proactive action plan, the CustomerService Division increased operational efficiency by leveraging on available technology.An example of this is theDivision’s Integrated Contact Centre project, expected to deploy a new, moreintuitive call-centre management systemthat is designed to forecast and assess customer requirements across all points of contact and match these to the consultants available.

In view of the upcoming launch of the integrated Customer InteractionCentre in 2003, the current PABX/ACDand the existing Customer ManagementSystem were upgraded, with a new WorkForce Management System installed tomore effectively utilise the time and skillsof customer care consultants.To complementthis, training and development programmeswere initiated to enhance staff skills andproduct knowledge, as well as improveprofessionalism.

In an important step towards buildingDiGi’s customer loyalty, the Division’sCustomer Relationship Management (CRM)unit had earlier implemented a centralisedcustomer information system, giving staff inall business units a comprehensive insightinto customer behavioural trends. Duringthe year under review, the success of thisinformation system was reflected in highercustomer loyalty trending.With this inplace, the CRM unit launched Your DiGi,a Customer Loyalty Programme whichleverages on all available customer data andcommunications as a means of remainingrelevant to customers’ needs, interests and lifestyles.

pengurusan pusat panggilan yang baru danlebih intuitif, direka untuk meramalkan danmenilai keperluan pelanggan di semua titikpertemuan dan memadankannya denganperunding yang bertugas.

Selaras dengan pelancaran PusatInteraksi Pelanggan Bersepadu pada 2003,PABX/ACD semasa dan Sistem PengurusanPelanggan yang sedia ada telah dinaik taraf.Satu Sistem Pengurusan Tenaga Kerja barujuga telah dilaksanakan untuk menggunakanmasa dan kemahiran perunding perkhid-matan pelanggan dengan lebih berkesan.Bagi menyokong langkah ini, program-programlatihan dan pembangunan telah dimulakanuntuk menambahkan kemahiran dan pengetahuan kakitangan, di sampingmeningkatkan profesionalisme.

Dalam satu langkah yang penting untuk membina kesetiaan pelanggan DiGi,unit Pengurusan Hubungan Pelanggan (CRM)Bahagian ini telah melaksanakan sistem maklumat pelanggan pusat yang memberikanmaklumat komprehensif tentang trend gelagatpelanggan kepada kakitangan dalam semuaunit perniagaan. Pada tahun yang dilaporkan,kejayaan sistem maklumat ini dapat dilihatdaripada trend kesetiaan pelanggan yanglebih tinggi. Dengan pelaksanaan ini,unit CRM telah melancarkan Your DiGi,sebuah Program Kesetiaan Pelanggan yangmemanfaatkan semua data dan komunikasipelanggan yang ada, sebagai cara untuk kekal relevan kepada keperluan, minat dan gaya hidup pelanggan.

Your DiGi menjadi program kesetiaanpertama dalam industri yang disasarkankepada pelanggan mudah-alih prabayar danpasca bayar. Sebagai program penaung, YourDiGi menawarkan pelanggan mudah-alih DiGifaedah ketara seperti masa udara percumaatau bonus isian semula, dan faedah tidakketara seperti Jaminan DiGi, Perlindungan SIM dan Bonus Hari Jadi. Manfaat gaya hidupunik kini boleh didapati menerusi Baucar DiGiyang boleh dimuat turun, lantas melayakkanpelanggan DiGi mendapat tawaran eksklusifdan istimewa serta diskaun di pelbagai kedaiyang turut serta.

advanced and sophisticated entertainment...

> This concept

device conceals

a keyboard

behind a fold-

away video

screen.Today’s

generation is

willing to pay

for games

software, foot-

ball and stock

market results

as well as

other financial

information

and news.


Your DiGi became the first loyalty programme in the industry to address both postpaid and prepaid mobile customers.As an umbrella programme, Your DiGioffers DiGi mobile subscribers hard benefitssuch as free airtime or reload bonuses, andsoft benefits such as DiGi Guarantees, SIMGuard and Birthday Bonus. Unique lifestylebenefits have now been made availablethrough downloadable DiGi Vouchers,entitling DiGi customers to exclusive and special offers and discounts at a wide variety of participating outlets.

The Customer Service Division continued with efforts to gain more in-depth customer insights through the launch of a customer lifestyle survey during the year to build a bettercustomer profile for more personalisedand differentiated services. In addition, theyear also saw the introduction of My DiGi,a user-friendly facility on DiGi’s websitewhich gives customers several self-servicecapabilities in handling enquiries, adminis-tration and transactions including bill payment and prepaid reloads at their convenience via a 24-hour secure Internet link.

Information Technology

A key factor in the provision of qualityservice is the timely identification of customer needs and the subsequent provision of appropriate, customised solutions. In this, DiGi has continued tooptimise Information Technology (IT) andits capabilities in meeting the challenges of a competitive business environment.The year under review saw a deeperreliance on IT in supporting product development and distribution, particularlyin terms of DiGi’s prepaid mobile services,in view of the upcoming migration to thenew Intelligent Network (IN).

Bahagian Perkhidmatan Pelanggan telahmeneruskan usaha untuk mengumpulkanmaklumat pelanggan yang lebih terperincidengan melancarkan satu kaji selidik gayahidup pelanggan pada tahun yang dilaporkan.Kaji selidik ini dilaksanakan untuk membinaprofil pelanggan yang lebih baik bagi menyedia-kan perkhidmatan yang lebih peribadi dandibezakan. Di samping itu, My DiGi, satuperkhidmatan layan diri yang mesra penggunadi laman web DiGi telah diperkenalkan padatahun yang dilaporkan. Perkhidmatan layandiri ini, yang mampu mengendalikan pertanyaan,pentadbiran dan urus niaga pelanggan, terma-suk menyediakan kemudahan pembayaran bildan isian semula prabayar, boleh digunakanoleh pelanggan pada bila-bila masa menerusisambungan Internet 24 jam yang selamat.

Teknologi Maklumat

Untuk membekalkan perkhidmatan berkualiti,satu faktor yang penting ialah mengenal pasti keperluan pelanggan dan seterusnyamembekalkan penyelesaian yang wajar dan tersesuai. Dalam hal ini, DiGi terusmemanfaatkan teknologi maklumat (IT) dan keupayaannya untuk memenuhi cabarandalam suasana perniagaan yang kompetitif.Pada tahun yang dilaporkan, IT telah digunakandengan lebih berleluasa untuk menyokongpembangunan dan pengedaran produk,khususnya bagi perkhidmatan mudah-alihprabayar DiGi, memandangkan perpindahanyang bakal dibuat kepada Rangkaian Pintar(IN) baru.

Fleksibiliti pengeluaran bil telah diper-tingkatkan dengan menaik taraf struktur maklumat sokongan, lantas menyediakanstrategi pengeluaran bil baru untuk menyokongkeperluan pelanggan yang semakin berubah.

> Mobile data

services will

have a tremen-

dous impact on

profitability as

businesses see

the need for

solutions that

exploit available

bandwidth and

reduce costs.


...information and communications servicesacross a diversified customer base.

71

Billing flexibility was enhanced through an upgrading of supporting informationstructures, providing new billing strategiesto support changing customer needs.The timely upgrading of the InterconnectBilling and Settlement System (IBSS) duringthe financial year has also enabled DiGi toprovide flexible tariff management andcontrol. In addition, an IT blueprint wasdeveloped to upgrade the company’s information systems, enhancing thequality of service provided to customers.

Employees

DiGi’s employee emphasis is on attractingand retaining people who take responsibility,are proactive, quality-conscious and delivervalue in carrying out their respective jobfunctions. During the year under review,priority was given to improving internalcommunication across all divisions. Onesuch initiative is the quarterly employeenewsletter, DiGi@work, which has provedto be an important communication channel,working in tandem with the company’sintranet, also called DiGi@work, to keepstaff updated on both internal and externaldevelopments.

The professional and personal devel-opment of staff is very important at DiGi,and the year also saw focused training fortargeted groups, aimed at enhancing skillsand knowledge.As part of ongoing effortsto position DiGi as an employer of choice,an Employee Satisfaction Survey was conducted in the reporting year to obtainfeedback and comments from employeeson overall work- and company-relatedissues.This has helped track employeemorale and identify key areas for improve-ment. A Corporate Values Survey was alsocarried out to identify and develop a set of core principles to reflect and build ahealthy employee culture at DiGi.

Langkah menaik taraf Sistem Bil danPenjelasan Antara Sambungan (IBSS) padatahun kewangan yang dilaporkan juga telahmembolehkan DiGi menyediakan pengurusandan kawalan tarif fleksibel. Di samping itu,satu rangka tindakan IT telah dicipta untukmenaik taraf sistem maklumat syarikat,seterusnya meningkatkan kualiti perkhid-matan yang dibekalkan kepada pelanggan.

Kakitangan

DiGi memberi tumpuan kepada usaha menarikdan mengekalkan kakitangan yang sanggupmemikul tanggungjawab, bersifat proaktif,mementingkan kualiti dan menghasilkan nilaisemasa menjalankan tugas masing-masing.Pada tahun yang dilaporkan, keutamaan telahdiberikan untuk memperbaiki tahap komunikasidi semua bahagian. Salah satu daripada inisiatiftersebut ialah risalah berita DiGi@workyang diterbitkan setiap suku tahun. Risalahberita ini, bersama rangkaian intranet syarikat yang turut diberi nama DiGi@work, terbuktimenjadi saluran komunikasi penting untukmenyampaikan perkembangan terkini di dalam dan luar syarikat kepada kakitangan.

Pembangunan profesional danperibadi kakitangan amat penting di DiGi,dan pada tahun yang dilaporkan, latihantertumpu telah diberikan kepada kumpulansasaran untuk meningkatkan kemahirandan pengetahuan mereka. Sebagai sebahagiandaripada usaha berterusan untuk mengukuhkankedudukan DiGi sebagai majikan pilihan,Satu Kaji Selidik Kepuasan Kakitangan telahdijalankan pada tahun yang dilaporkan untuk mendapatkan maklum balas dan ulasan daripada kakitangan tentang isu-isu berkaitankerja dan syarikat secara keseluruhannya.Kaji selidik ini telah membantu menilaisemangat kakitangan dan mengenal pastibidang-bidang penting untuk diperbaiki.Satu Kaji Selidik Nilai-Nilai Korporat juga telah dijalankan untuk mengenal pasti danmerangka satu set prinsip-prinsip teras untuk memaparkan dan membina budayakakitangan yang sihat di DiGi.



Rancangan masa depan

DiGi berazam untuk membina daripada kekuatan dan pencapaiannya setakat ini agardapat meningkatkan nilai pemegang saham.Sambil melangkah ke tahun 2003, syarikatakan berusaha meningkatkan keberkesananoperasi dan kos, dan melabur dengan bijakdalam perkhidmatan nilai tambah dengankadar pertumbuhan tinggi yang memenuhikeperluan pelanggan. Untuk mencapai pertumbuhan yang menguntungkan dalamperkhidmatan komunikasi mudah-alih, satukeputusan strategik telah dibuat untuk mem-perkenalkan teknologi Rangkaian Pintar (IN),yang menyokong perkhidmatan mudah-alihprabayar menjelang suku pertama 2003, bagimenangani pertumbuhan yang dijangkakandalam perniagaan prabayar DiGi. Denganberpindah kepada fungsi IN, DiGi akan dapatmembezakan dirinya di pasaran dan memak-simumkan keuntungan dengan menawarkanpara pelanggannya rangkaian produk danperkhidmatan multimedia mudah-alih dipacupelanggan yang baru dan inovatif.

Pelancaran produk mudah-alih berasaskandata dan kandungan akan menyediakan peluang pertumbuhan kukuh bagi DiGi,menerusi perkhidmatan komunikasi mudah-alihyang inovatif dan disesuaikan secara peribadikepada para pelanggannya yang semakinmeningkat. DiGi menyedari bahawa selaindaripada perkhidmatan suara bermutu tinggi dan liputan geografi yang diperluaskan,permintaan daripada para pelanggannya yangpelbagai dan semakin bertambah bagi hiburan,maklumat dan komunikasi yang lebih canggihdan terkini perlu dipenuhi. Justeru itu, DiGiakan terus membina daripada kekuatannyadan menjalin perkongsian yang menghasilkankelebihan daya saing. Berdasarkan kajianpasaran menyeluruh mengenai perkhidmatankomunikasi suara dan data mudah-alih,DiGi akan terus mengoptimumkan dan memperluaskan infrastruktur sedia ada untuk membekalkan perkhidmatan multimediamudah-alih yang canggih dan termampu, danberpegang kepada komitmen perkongsianrangkaian dengan para pengendali lain dalam industri.

Future plans

DiGi is determined to build on itsstrengths and achievements to date in order to enhance shareholder value.As the company moves into 2003, thefocus is very much on improving operationaland cost effectiveness, and investing wiselyin high growth value-added services thatmeet customer needs. In order to driveprofitable growth in mobile communicationsservices, a strategic decision has beenmade to introduce Intelligent Network(IN) technology, which supports prepaidmobile services, by the first quarter of2003 to cope with the anticipated growthin DiGi’s prepaid business. By migrating to IN functionality, DiGi will be able to differentiate itself in the marketplace andmaximise its profits by opening the doorto a greater range of new and innovative,customer-driven mobile multimedia productsand services for its subscribers.

The roll-out of data- and content-drivenmobile offerings will provide strong growthopportunities for DiGi, through its deliveryof highly-personalised and innovative mobilecommunications services to its steadilygrowing subscriber base. DiGi recognisesthat alongside high-quality voice servicesand enhanced geographical coverage, it willbe critical to meet the growing demandfor more advanced and sophisticatedentertainment, information and communica-tions services across a diversified customerbase. As such, it will continue to build on

> DiGi is the

first telco to

allow GPRS for

both postpaid

and prepaid

subscribers

and it offers

the widest

coverage

nationwide.

Perkhidmatan kandungan dan data yangmenarik dijangka membawa pertumbuhanyang kukuh daripada generasi penggunamudah-alih yang semakin pantas bertambah.DiGi sudah mula menyediakan produk danperkhidmatan multimedia mudah-alih yanginovatif dalam rangkaiannya, dan akan terusmencari perkhidmatan nilai tambah yangakan meningkatkan hasil dan meneruskankeuntungan. Perkhidmatan data mudah-alih boleh memberi kesan besar terhadap keuntungan. Ini kerana perniagaan-perniagaandapat melihat betapa perlunya penyelesaianyang mengambil kesempatan daripada kelebaran jalur yang sedia dan yang mampumengurangkan kos. Mereka juga mendapatibahawa mereka boleh membekalkan danmenguruskan kandungan korporat menggunakanalat mudah-alih mereka. Pelbagai cabaranbakal dihadapi dalam usaha memperkenalkanperkhidmatan data mudah-alih yang berjaya,dan DiGi berada pada kedudukan yang baikkerana mempunyai rancangan dan strategiyang akan membolehkannya menerajui bidang penting ini.

As such, it will continue to build on existing strengths, andforge partnerships that generate a competitive advantage.

existing strengths, and forge partnershipsthat generate a competitive advantage.Based on extensive market studies onvoice and data mobile communicationsservices, DiGi will continue to optimiseand expand its existing infrastructure todeliver advanced and affordable mobilemultimedia services, and hold to its network-sharing commitment with other operators within the industry.

Compelling mobile content and dataservices are expected to generate strongrevenues from the rapidly growing mobilegeneration. DiGi is already putting innovativemobile multimedia products and servicesacross its network, and will continue tosource value-added offerings which willincrease revenue and see continued profitability. Mobile data services will havea tremendous impact on profitability asbusinesses see the need for solutions thatexploit available bandwidth and reducecosts, as well as discover that they candeliver and manage corporate content on their mobile devices.The successfulintroduction of mobile data services offers many challenges, and DiGi is clearlywell-positioned in terms of having in placeplans and strategies that will enable it totake the lead in this critical area.

> In the not too

distant future,

users will

be able to

‘connect

with anyone,

anytime,

anywhere’

at speeds

faster than

conventional

wireless data

communications.

Full motion

video images,

music and

games, and the

voice transmis-

sion quality on

these mobiles

will be on par

with fixed line

phones.

73DiGi.Com Berhad (425190-X)

Documents

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