Our Operating Landscape Our Response Improved blended ARPU from shift in acquisition mix and contracting efforts through Digi’s refreshed Postpaid portfolio Introduced bundling add-on deals focused on affordable high-speed internet plans Drove data monetisation among the youth and Bottom 40% (B40) segment Delivered attractive value-added services on our secure 4G LTE and LTE-A networks Enhanced digital channels on app and web, and direct partnership connections increased digital adoption Prudent cost management and continued modernisation efforts improved efficiency and maintained profitability Our Response Implemented corporate governance framework that provides for prudent management and oversight of Digi, protecting the interest of all relevant stakeholders Maintained open and proactive engagements with various regulators and authorities in line with the 5G roll-out blueprint Embedded regulatory compliance in business culture, planning and decision-making framework Conducted compliance training Competition and Industry Developments 2 • Prepaid average revenue per user (ARPU) declined in 2021, as movement control orders (MCO) and economic uncertainty raised concerns with consumers and businesses • Mobile operators extended coverage and capacity to address a surge in data consumption • Increase in the volume of data traffic and growing demand for data localisation led to investments in new data centres • Broader economic pressures dampened consumer spending • Prolonged border closures led to continued shortfall in migrant and tourist segments • Decreased in-store traffic due to various MCO Looking Ahead 2022 Shift in customer behaviour driving increased need for home connectivity and digital services Continue expansion of 4G coverage and optimising service quality in line with the JENDELA and MyDIGITAL initiatives Leverage leading network position to maintain market share and grow new adjacent services Emerging Regulatory Requirements 3 • The new Mandatory Standards for Quality of Service (MSQoS) announced by the Malaysian Communications and Multimedia Commission (MCMC) took effect on 1 August 2021 • The government’s MyDIGITAL initiative designed to drive the country’s digital economy by 2030 • Covid-19 National Recovery Plan (NRP) and developing policy framework on 5G • Malaysian Code on Corporate Governance (MCCG) updated to enhance corporate governance and practices Looking Ahead 2022 Government to provide RM700 million to continue digital connectivity efforts in 47 industrial areas and 630 schools, especially those in rural areas Government to allocate RM30 million to provide internet facilities in 40 existing People’s Housing Programme (PPR) In 2022, 5G services to cover 36% of high-density areas in Johor, Selangor, Penang, Sabah and Sarawak Capitals Capitals 27 Integrated Annual Report 2021 Governance Audited Financial Statements Other Information
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