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BEYOND SHORT-TERM PROFITS
26
Axiata Group Berhad | Sustainability & National Contribution Report 2016
Axiata’s
business
approach
prioritises long-term partnerships
and looks beyond immediate
profitability
as
the
sole
determinant of the feasibility of
our business initiatives.
Of greater importance is the long-term
value created by the initiative for our
stakeholders and whether the value is
aligned with our goals in the specific
market. In every market, our aim is to build
a sustainable digital ecosystem where we
can create mutual benefits for both our
business and our many stakeholders in
those markets.
As
a
digital
telecommunications
operator, our business activities require
substantial long-term investment in
network infrastructure as well as other
operational enablers. These typically
involve substantial frontloading of cost
which is borne by us, and which we aim to
gradually recover from our operations over
time. At the same time, this investment
into infrastructure translates into effective
and comprehensive network coverage for
our customers. In 2016, the Group invested
a total of RM6.1 billion in capex.
Axiata is also committed to the goals of
digital inclusivity and strives to bridge the
digital divide by ensuring our services are
accessible and affordable to all including
those living in rural areas or coming from
lower economic backgrounds. We see
these efforts as part of our responsibility
to create a more sustainable future for
our business and our stakeholders, and to
create a brighter digital future for all.
In addition, we also invest in the local digital
ecosystems of our operating countries
through our investments, partnerships and
local procurement practice. In Malaysia, we
created the Axiata Digital Innovation Fund
(ADIF), a venture capital fund, to invest in
and help promote the growth of young,
innovative tech companies in the country.
BEYOND
SHORT-TERM
PROFITS
COMMITMENT TO
This model was replicated in Cambodia
where we launched the Smart Axiata
Digital Innovation Fund (SADIF) in March
2017. SADIF has been mandated to invest
in ideas and businesses in Cambodia’s
digital ecosystem to catalyse development
in the sector.
Finally, as a global leader in
telecommunications, we play an active
role in the global mobile industry by
participating in and leading global mobile
development. We help steer industry
priorities towards areas that are most
relevant to our stakeholders and to help
marginalised groups.
Our sustainability initiatives under this
pillar are divided into four areas:
• Long-Term Investments
• Services Beyond Commercial Motivation
• Digital
Inclusion
and
Digitised
Ecosystems
• Global Mobile Development
Issue
Context
Approach
Outcome
Network Quality and
Coverage
• Network coverage and quality
are top priorities for our
business
• Pioneering new technological
innovations
to
improve
network quality and coverage
• Enhanced accessibility to
our services in our markets
and establishing Axiata as
the coverage leader in our
markets
Digital Inclusion
• The
telecommunication
industries of our operating
markets are at different levels
of maturity
• There are socioeconomic
variations in our markets
leading to the exclusion of
some segments of society
from digital technology
• Offering digital products
that are in line with our 4As
model (affordable, accessible,
applicable and available) for
all segments of society
• Diversifying our product line-
up through new innovations
from our tech innovator,
Axiata Digital
• Provide affordable digital
solutions to all our customers
in our markets
G4-20
G4-27
Material topics covered under this pillar