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WITSAPublic Policy Meeting

Zamani ZakariahSenior Director,

MyICMS, Technology & Standards DivisionMalaysian Communications and Multimedia Commission

18 May 2007

Broadband Initiatives in Malaysia

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Broadband is critical

• Beneficial for businesses, consumers and society

• High broadband uptake has a positive impact on the nation’s GDP

• World class broadband infrastructure is seen as a key success factor in attracting foreign investors

• Pushing the frontiers of knowledge and economic development amongst Malaysians

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“Top Ten” Broadband Countries by Population Penetration Dec 05 – Dec 06

Source: Point Topic- World Broadband Statistics Q4 2006

Malaysia:

Q4 05 = 1.9

Q4 06 = 3.3

Source: MCMC, ITU

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Broadband Countries by Population Penetration-Comparison– Dec 06

(Source: Point Topic- World Broadband Statistics Q4 2006)

Country Broadband lines per 100 population

South Korea 30 lines

Hong Kong 26 lines

M’sia 3.3 lines(Source:MCMC, ITU)

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“Top Ten” Broadband Countries by Household Penetration Dec 05 – Dec 06

Malaysia:

Q4 05 = 7.0

Q4 06 = 11.0

Source: MCMC, ITU

Source: Point Topic- World Broadband Statistics Q4 2006

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Broadband Household penetration-comparison-Dec 06

(Source: Point Topic- World Broadband Statistics Q4 2006)

Country Broadband lines per 100 households

South Korea 90

Hong Kong 80

M’sia 11 (source:MCMC, ITU)

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Major Issues & Challenges

• Intensive upgrading of infrastructure– Policy adjustments to create incentives for the the

private sector to make capital investment in last mile access

• Lack of facility-based competition ie. high access prices• Low PC penetration ~19.7 per 100 population (end 2006

- Business Monitor International)• Lack of new services and content• Broadband/communication is not regarded as public

utility • Affordability of services• Awareness

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National Broadband Policy

– Generate adequate supply for broadband infrastructure

– Stimulate demand for broadband take up – Funding mechanisms for broadband roll out– Identify gaps in existing regulations– To create a critical mass of 1.3 million

broadband lines by 2006 to encourage private sectors to invest in broadband infrastructure

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• Blueprint for the development of information and communications services in Malaysia for the five year period from 2006 till 2010.

• Consist of 8 initiatives in the services industries, 8 type of hard and soft infrastructure and 6 growth areas.

• Private-public partnership

• Aims to guide/leverage on investments by the private sector to create a catalytic cycle that will drive the development of the services, infrastructure and growth areas.

MyICMS886

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MyICMS886- cont’dMyICMS886 Action Plans consists of 6 main areas:

Policy and Regulatory Framework;

Broadband Roll-out;

Institution Building;

Content Development;

Foreign Ventures and Manufacturing;

Strengthening of Inter- Agency Cooperation.

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Broadband Targets under MyICMS 886 & NBP

Broadband 2006 2008 2010(Fixed)

High Speed Broadband

1.3 million subs;

25% household penetration

Status end 2006:3.3 per 100 population;11 per 100 household;

Subscription : 897,200

2.8 million subs;50%

household penetration

3.9-4.2 million subs;75%

household penetration

(Mobile)3G-HSDPA

300,000 subs

Status end 2006:

406,717 subscribers

1.5 million subs

At least 5 million subs

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CROSS-SECTOR POLICY

CROSS SECTOR SERVICES To further promote convergence and the deployment of

next generation networks, the prohibition on cross sector services will be lifted. This is expected to give the following effect :a) boost the provision of IP based next generation

networks ;b) encourage the growth of content and content

applications services such as IP television ;c) allow the provision of applications services via

digital and analogue broadcasting networks;d) provide economies of scale through the better

utilisation of existing infrastructure e) boost the demand for high speed broadband access

such as fibre to the home, 3G HSDPA and other wireless networks such as Wimax;

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ACCESS FRAMEWORK POLICY

IMPROVING THE ACCESS FRAMEWORKKey elements of the access framework are standards on access and the access list. The access framework is currently being reviewed to

further improve access to the last mile so crucial for the delivery of advanced content and applications services.

Access to the local loop was partially unbundled by requiring TM (Telekom Malaysia) to provide bandwidth via bit-streaming to interested licensees. The effectiveness of bit-streaming will reassessed before further “unbundling” measures are undertaken.

Access List is being reviewed for the inclusion of:a) VoIP and voice over broadband; andb) 3G and beyond services;

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MALAYSIAN INTERNET EXCHANGE

ESTABLISHMENT OF MYIX (MALAYSIAN INTERNET EXCHANGE)

Launched on 15th December 2006, offers opening peering to 17 ISPs in Malaysia.

To strengthen and provide a mechanism for the peering and exchange of domestic IP traffic. and

Expected to boost the local content services, broadband and VoIP services.

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SPECTRUM POLICIESSPECTRUM POLICIES

For 3G, two new bands of spectrum were issued to MITV and TT Dotcom.

MEWC & MCMC is evaluating the use of existing and new technologies including Wimax, HSDPA, I-Burst and wireless-mesh and other innovative technologies for the delivery of high-speed broadband.

Adequate spectrum, as provided for by the Malaysian Spectrum Plan will be made available for the provision high-speed wireless broadband, digital terrestrial broadcasting, digital multimedia broadcasting and short-range communications using RFID. and

Award of 2.3GHz spectrum. 4 successful applicants announced on 16 March 2007- type of allocation through AA (5 years duration)

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Broadband Roll-out PlansAction being taken to enhance broadband roll-out includes:

The Establishment of Broadband Stakeholders Group or BSG . Stakeholders from both the public and private sectors to increase awareness as well as coordinate the implementation of the National Broadband Plan.

State Broadband Plans being developed-pilot project in Penang. Sarawak, Kedah, Johor & Pahang-ongoing.

Public-Private Sector Collaboration- approaches to be considered to encourage investments in broadband;

a) Private sector CAPEX funding backed by Govt Procurement contracts.

b) Joint-Venture funding by private sector. c) Public sector concept & requirements for implementation,

private sector funding upon award.

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Broadband Roll-out Plans

Broadband Research & Analysis- To set up National Broadband Portal for analysis of demand and supply for broadband

Promotional Activities planned for 2007:

a) A conference & Exhibition on Broadband;

b) Road shows to promote broadband;

c) Publications; and

d) Development of a National Broadband Portal.

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KLANG VALLEY BROADBAND PUSHKLANG VALLEY BROADBAND PUSH (KVBP)

Promote rapid development of broadband infrastructure in the Klang Valley using various technology such as fibre optics, wireless access, hotspot, i-burst and others;

Promote advanced application services and content including IPTV;

Make winning comparisons with HK and Singapore as a model metropolis

Complements eKL

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KVBP ProjectsModel Local Authority• Create a municipality with world class communications

infrastructure supporting broadband services and applications for government/public/business

Wi-Fi in Libraries• Promote public access to broadband in key public institutions.

Improve infrastructure & provide free broadband for a year

Ubiquitous Library• Promote public access to broadband in key public institutions.

Connect public libraries within the Klang Valley

Pilot Project at Schools Improve infrastructure & services, create awareness and sponsor ICT

interns in schools

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KVBP ProjectsPilot Project for the Disabled• Ensuring that underserved community has access to broadband

services. Identify categories of the disabled who are eligible for USP within the Klang Valley

Addressing Broadband Complaints• Identify issues faced by consumers in relation to broadband services

and improve quality of service standards

Web portal kl2u.com Encouraging online activity by retailers

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Other Initiatives

• Fibre Study:- Determine requirements for fibre by 2010 within the Klang Valley

• Deployment of WiMax and other wireless broadband technology

• MDeC’s initiative on roll out of more Cybercenters within Klang Valley

• On going initiatives by industry/relevant stakeholders - BPL (Broadband over Powerline), Wireless Broadband and Fibre Optics

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Other Initiatives (cont’d)

USP Regulation Review• USP for broadband • Allow contributors to use their contributions to

expedite broadband deployment• 48 libraries broadband enabled at RM 17.5 million

(Q2, 2007)

Towards making Communications (broadband) essential• Requirement to include communication as

essential service in housing areas and buildings.• Proposal to amend the UBBL

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Conclusion-Key success factors for increasing broadband uptake in Malaysia

• Promote government Initiatives / PPP– Encourage public-private-partnership investment

especially in developing FTTH

• Encourage adoption of new technologies– Converged platforms and alternative access technologies

• Encourage competition– Competition among infrastructure providers will be a

strong driver for broadband penetration growth

• Access to content– Strong government commitment for local content

development

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Thank youTerima kasih