Group Strategy

Journey Towards A New Generation Digital Champion

Axiata has completed two distinct phases since our inception as an independent company in 2008. With the conclusion of Phase 2 in 2015, we have established Axiata as a Regional Champion providing mobile services to approximately 320 million customers in ten countries, as well as being a responsible corporate citizen and committed long-term investor.

Today, Axiata generates an annual revenue of over RM21 billion with Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of RM8.0 billion and market capitalisation of RM42.3 billion. We rank number two in subscriber base, number four in revenue and number seven in market capitalisation against other regional mobile players within Southeast Asia and South Asia.

In Phase 3, ‘Axiata 3.0’ is the playbook guiding the Group’s key strategic decisions on Axiata’s journey to become a New Generation Digital Champion by 2020.

Pre 2008
≤ 2007

Phase 0

Phase 1

Phase 2

“Axiata 3.0”

Building the

Forming an
Independent Company

Building a New
Distinct Company

(Defining the Company)

Creating a Regional

(Redefining the Group)

Building the Next Generation
Digital Champion

(Reimagining the Enterprise
AND the Industry)

Axiata 3.0 Capturing and Adopting to Technology Shifts

The telecommunications industry is witnessing a structural shift in value from providing access and connectivity infrastructure to offering applications, content, platforms and solutions. Access – high quality connectivity services – is a hygiene factor for which economies of scale and cost optimisation have become critical. Content and Applications are driving data consumption and Platforms are enabling new solutions and business models.

Coupled with this value shift, demographics in ASEAN and South Asia have moved to the point that Millennials, or Digital Natives, are now the largest consumer group making spending decisions on telecoms access, media services and utilising applications enabled by new digital platforms. This segment of customers has vastly differing values, attitudes and behaviours in the way they engage with their product and service providers, make purchase decisions, and how they consume digital content and services.

Similarly, Enterprises – or the Business to Business (B2B) segment – in ASEAN and South Asia are embracing digitisation and automation at such a rate that Internet of Things (IoT) applications and Cloud or platform based Information and Communications Technology (ICT) solutions are seeing rapid growth. Compared to the consumer segment experiencing flat to single-digit growth, especially with regards to the access business, the B2B segment for IoT and ICT is enjoying double-digit compound growth which is certain to be sustained over the coming years.

It is in this context that Axiata 3.0 has evolved to a clearer heading of the core composition and priority growth pillars of the business moving forward. In line with our core business pillars of Digital Communications and Connectivity; Enabling Infrastructure and Platforms; and Digital Applications and Services, Axiata 3.0 has been further developed to define the composition of Axiata as a New Generation Digital Champion by 2020.

Axiata 3.0 defines the Group as a triple core growth engine comprising:

Core 1: Mobile & Convergence

Mobile and Fixed Convergent Access, as number one or strong number two in key markets – operating lean and at maximum operational efficiency

Core 2: Solutions & Service

Four pillars of Fintech; Media and Entertainment; Adtech and Analytics, Enterprise and IoT – to invest in for rapid growth

Core 3: Enabler & Platform

Comprising Passive and Active Infrastructure assets such as edotco; and Enabling Connectivity Platforms such as our globally awarded Mobile Internet Fulfilment Exchange (MIFE) network Application Programme Interface (API)

Within this strategic framework, Axiata will continue its objectives of transforming the core focused on digitisation and product leadership; expanding the core through investments and organic capability development; and selectively acquiring new core via opportunities to strengthen our market positions, undertake market repair and grow Axiata’s footprint.