Wednesday, December 17, 2008

Malaysians subsidising foreigners (2) – Astro spends RM1.2bn on Indons …

Investment analysts note that Astro has incurred RM1.2bn (that's right RM1,200,000,000) of write-offs so far on its foray into providing satellite tv to Indonesians. Ever thought about how Astro can afford such a large loss? It's paid for by you and me, ordinary Malaysians who have to suffer high subscription fees and poor service thanks to Astro's monopoly on satellite-tv in Malaysia.

Because there's no competition in Malaysia, we have to pay whatever Astro demands and accept its over-priced packages offering us channels we don't want nor need, and we have to accept frequent service breakdowns in the rainy season. Astro then takes that money to offer cheap services to Indonesians. If Astro had not burnt that amount away in Indonesia, it could afford to give you a 50% discount on your subscription fee for one year!

But it doesn't look like it's going to happen since it has a cosy, secure monopoly granted by the BN government. If our companies are big enough to go overseas, they are big enough to face competition here in the local market. Local consumers will then benefit from lower prices and better services.

5 comments:

Anonymous said...

RM1.11 bln in Indonesia.. Next stop - INDIA...

Anonymous said...

Yes, they r big locally because they have know-who connections.

Egos go through their heads & thinking that they r now big-boy enough to venture OUT THERE.

Only when sugar-daddis r hard to come by then will they understand what BIG is.

With the technologies & services they offered... pls lah they will go belly up in NO time OUT THERE! Wait, one can buy technology if one has deep pocket & maybe talents too. But with management al-'bolihlandism'? Pls lah!!!!

This is just a typical case study for the 'biggies' in bolihland.

There r more to come, judging from the numbers of local 'biggies' venturing OUT THERE. The current world economic turmoils will be a VERY GOOD excuses for the fore-coming red inks spread all over their accounting books.

anomie

Anonymous said...

As pointed out, the losses are paid for by Malaysian subscribers.I guess all Malaysian Astro subscribers are more than happy and willing to do so, don't you think so? Otherwise why are they Astro subscribers in the first place? It's a free market. Astro is not a basic necessity.Please cancel your subscription of Astro's overpriced programmes immediately. Otherwise there is no cause to complain about how Astro spend your subscription money.

mycuntree said...

Why complain when you have so many free on air tv in the country.Please just cancel your subscription if you think that it is not worth it. I didn't subscribe because I think Astro's packages are all overpriced.

WY Kam 甘永元 said...

There are plenty of de-regulation opportunities in Malaysia. Poorly done, it will only lead to further monopoly by selected groups (think Russia). I think astro monopoly will be pretty tough to be challenged, unless the competitor is given some form of protection/assistance/preference (think MAS-AirAsia). Is duopoly better than monopoly? mmm