Management in a Phone Line Company

Planning

With prepaid number registration now compulsory, our Company leveraged upon this to improve our customer segmentation and innovativeness in products and services to give us the healthy lead. Our thrust now is to widen our broadband offers to increase broadband penetration in the country in line with the Government's aspirations and to meet the challenges of new 3G and WiMAX competitors entering the market. Modernizing our network towards an internet protocol (IP) future that would help streamline costs will mean continuous investments in technology and people skills to keep ahead.

Organizing

Made key organizational structure changes to improve Group oversight and fully tap the potential of our respective country operations, each with its own distinctive business, cultural and operating environment and different stages of maturity. Additionally, for Malaysia, we accelerated efforts in building an organization that talents would aspire to be a part of.

We have established a reputation for service excellence that we have to sustain to deliver our value proposition. To ensure continuous permeation of this culture across all aspects of our business, we intensified our Change programs initiatives to facilitate mindset and behavioral changes to realize our long term vision and targets.

Embarked on an internal brand alignment exercise to inspire and engage staff towards "Living Our Brand Inside Out" with passion, teamwork and attention to detail as the key pillars of success. The programmed known internally as "We Do It Better" encourages employees to enhance performance - better than before, better than the competition and better than expectations - to deliver service excellence across all customer touch points.

Special emphasis was placed on communication and engagement of our more than 3,000 staff. To reinforce their sense of shared purpose and belonging, we conducted quarterly performance results communication sessions with all managers to help them better understand the company's performance against the competitive landscape, recognize key levers of success and identify areas for improvement. A bi-monthly staff newsletter, Maxis News, was also launched to educate and update staff on key developments in the company. Based on the latest dipstick survey, the 'engagement' factor, which shows how employees think, feel and act for the company, has increased to 76% from 73% a year ago. In addition, we revamped our performance appraisal system 'My Maxis Commitment' to incorporate performance indicators on behavioral and mindset changes.

We continue to make significant investments in human capital development across all levels and functions. For 2006, we achieved a 75% increase in the number of average training hours per employee, which translates to 56 hours compared to 32 hours in 2005, whilst reducing training cost per employee by 32%. This was possible with Maxis Academy's (our in-house training centre) improved training curriculum and increased employee participation in e-learning programmed. The flexibility provided by the e-learning programmed resulted in increased uptake. In 2006, e-learning accounted for 20% of total training hours against 16% in 2005. To improve the personal effectiveness and leadership skills of our managers and supervisors, we conducted The 7 Habits of Highly Effective People programmed, which was attended by more than 600 participants including senior management. We also revamped our management development programmed NGM@Maxis (Next Generation Manager), which aims to develop the leadership qualities and managerial capabilities of current and potential Maxis leaders to meet our business needs. A total of 96 participants attended this programmed in 2006, with the others, including selected Aircel and NTS management scheduled to attend it in 2007. We have further enhanced our learning environment with the impending move of the Maxis Academy to a new and more conducive facility at Plaza Central, Kuala Lumpur in Q3 2007. To attract and develop fresh young talent from leading universities, we enhanced our 1-year Maxis Graduate Trainee Programmed, which has 31 alumni members and 14 trainees. Upon graduation, trainees are assigned permanent positions that are aligned to their aptitude and aspirations, and the business needs of the company.

Controlling

We have started to overcome site acquisition problems to expand our network and the successful ULO (certificate of worthiness) testing for new sites we have built has enabled us to secure our licenses. We are now resolving start-up