Beruflich Dokumente
Kultur Dokumente
2007
Collaboration Towards Enhancing National Competitiveness
For hundreds of years, the way the game was played remained very much the same. However,
it underwent significant change in 1935 when the net version of Sepak Takraw was first
played, in the state of Negeri Sembilan, during the Silver Jubilee celebration of King George
V. From then on the game steadily emerged as a competitive game played internationally
and in major sporting events.
The story of Sepak Takraw is one that highlights the importance of team spirit and
togetherness. Either in its original or current form, Sepak Takraw depicts players getting
together to compete either as a team or individually. Taking the spirit of this national sport
to the theme for the cover of this report symbolises the “Collaboration towards Enhancing
National Competitiveness.”
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Content
Message from the Chairman 5
1
Content
CHAPTER 5 Mobile Services 63
Cellular Mobile Phone Connections 63
Trends in Mobile Take-up 63
Prepaid and Post-paid Growth 64
Cellular Phone Connections and Market Share 65
Cellular Mobile Phone Development 66
Malaysia Mobile Going Forward 67
Mobile Number Portability (MNP) 67
Part of the National Policy Objectives 67
Timing for MNP 68
The Process from Regulatory Perspective 68
Industry Engagement 69
MNP Implementation Status 69
Nationwide Mobile Coverage 70
Projects Time 1 and Time 2 – Progress 70
Project Time 2 Expansion 71
Recognition for Time 2 Project 71
Newspaper Advertisements to Seek Feedback 72
Way Forward 73
2
Content
CHAPTER 9 Digital Signature 95
Digital Signature and SKMM 95
Components of Digital Signature 95
SKMM as the Regulator 96
Functions of Certification Authorities (CA) 96
Digital Signatures by Type 97
The Issues Ahead 98
3
PICTURE
Message
From The Chairman
It is my pleasure to present to our readers the Industry Performance Report for the year
2007. The Malaysian Communications and Multimedia Commission (SKMM) publishes the
Industry Performance Report on an annual basis as stipulated under Chapter 15, Part V of the
Communications and Multimedia Act, 1998 (CMA).
For the last six years, reporting has been skewed more to regulatory developments, including
highlights of the changes in the industry since the migration of licensees in 1999/2000 to the
current licence structure under the CMA. The report also includes developments under the
Postal Services Act, 1991 and the Digital Signature Act, 1997 of which SKMM plays the role of
regulator as well.
In the Industry Performance Report 2007, the report is towards industry developments,
with the regulatory areas reported as necessary, so that the trends in the communications
and multimedia (C&M) industry can be viewed more clearly over the last ten years since the
introduction of the CMA.
The theme for this seventh Industry Performance Report is “Collaboration Towards Enhancing
National Competitiveness”. Indeed, this theme can be said to be in the minds of operators
and all stakeholders in the C&M industry as the traditional boundaries of business are blurring;
heralding the entry of new entrants, products and services, and of course the opportunities
that abound for existing players upon advancement of technologies that caters for cross sector
competencies to promote successful business ventures.
The C&M industry in our case includes the telecommunications, broadcasting, postal services
as well as the relatively new market in digital signatures. The telecommunications sector
continues to evolve and grow from strength to strength over the years despite challenges faced
such as consolidation and strong competition. Regulatory developments such as the prepaid
registration in 2006 and the implementation of mobile number portability together with the
rollout of WiMAX services and the services of two other 3G service providers are expected
to promote change and challenges in the Malaysian communications environment in 2008.
These are natural developments evolving towards a more converged C&M industry in terms of
network, services and applications.
In such a scenario, competition and access issues are common and recurring phenomena that
require efforts from all stakeholders and the regulator, including other relevant authorities in
sorting the issues arising. This thereby, moves the industry forward to realise the national
aspirations of a nation that is internationally competitive, with sustained economic growth and
desired socio-economic development towards a developed nation status in the targeted year
of 2020.
The SKMM welcomes any comments, enquiries, suggestions and feedback on the information
presented in the Industry Performance Report 2007. SKMM contact information is available on
the last page of this report.
5
PICTURE
Chapter 1
Executive Summary
The Malaysia economy continues to lend support to the growth of the communications and
multimedia (C&M) industry, albeit in steady growth of 6.3% in 2007. This growth rate is in
line with the 6% growth anticipated on annual basis to bring the nation from now to developed
nation status in the year 2020.
The C&M industry and broadly, the information and communications technology (ICT)
development in the country, are acknowledged as enablers to sustaining the growth of the
national economy and achieving national and international competitiveness going into the
future. In this respect, it underscores the importance of sustaining a healthy growth of the C&M
industry in the country, through public and private sector cooperation and other stakeholders
concerned.
Overall, the C&M industry revenue contributed 6% and 7.6% to the country’s GDP and GNP
respectively. The C&M companies garnered in aggregate RM36.7 billion in 2007 (Maxis and RTM
revenue is based on annualisation from 3Q-07 results; ASTRO revenue is based on annualisation
from 3Q-08 results and adjusted for calendar year) compared to RM32.7 billion in 2006 – a gain
of 12.2%. Growth is supported by revenue from overseas operations, which contributed 18% to
C&M aggregate revenue in 2007 (2006: 17%). With the overseas investments bearing fruit in
terms of profitability for the bigger players such as TM Bhd (TM) and Maxis, having established
themselves overseas in the last few years, are seen honing in to the domestic market to reap
the benefits of differentiation in light of high mobile penetration and potentially accelerated
broadband prospects. Indeed, the domestic telecommunications companies in 2007 propelled
both fixed and mobile broadband connections and further differentiated fixed line and mobile
services and products. Broadcasters are seen starting to work from this perspective as well as
diversification of their base for content delivery.
The broadcasting sector comprising one major Direct-To-Home (DTH) satellite pay-TV operator,
ASTRO All Asia Networks Plc (ASTRO), and FTA TV operator, Media Prima Bhd, and government-
owned Radio Televisyen Malaysia (RTM) channels garnered combined revenue of RM3.28 billion
in 2007. This indicates a growth of 14.7% for this sector from total revenue of RM2.86 billion
in 2006. While delivery of pay-TV was upgraded in 2007, traditional FTA TV broadcasts were
being pursued and perfected along with development in digital TV implementation and new
products such as TV show downloads through the Internet and mobile (so far in pilot and trial
modes respectively).
7
The postal services sector as represented by Pos Malaysia Bhd, contributed RM0.86 billion in
2007, while the courier sector contributed another RM1.35 billion in 20061. Revenue posted by
the CMA licensees listed on MESDAQ market of the local stock exchange is more than RM491
million in 2007 (2006: RM423 million). The market for digital signature remains small, with a
total revenue of RM13.7 million in 20062 (2005: RM8 million). Digital certificates issued under
the Digital Signature Act, 1997 grew 206% in 2007 to 1,273,600 (2006: up 148% to 415,641
certificates) due mainly to security requirement from e-filing exercise for tax returns introduced
by Inland Revenue Board in 2007.
Adex for the country grew 17% in 2007 to RM5.5 billion (2006: RM4.7 billion). Analysts forecast
Malaysian adex growth of 7.1% in 2008 to RM5.58 billion due to the Olympic Games in Beijing
and Euro 2008 football championship. Global ad spend growth is forecasted to accelerate in
2008 to 6.4% versus an estimate of 5.8% in 2007, driven by ad spend in US and China.
In terms of the state of “connected-ness” in Malaysia, the cellular mobile penetration in the
country reached 85.1% in the year of 2007. Prepaid and post-paid subscribers are in the ratio
of about 80:20, with 19.4 million in 2007 (2006: 16.1 million) and post-paid subscribers at 3.9
million (2006: 3.4 million). In year 2007, major market share based on subscribers saw Maxis
with 41.6%, Celcom and DiGi at 30.8% and 27.5% respectively.
Fixed line substitution by mobile cellular phone continues - connections by DEL saw penetration
rate of 15.8% as at 2007 (2006: 16.1% full year). Broadband connections boast 1.4 million
subscribers or 5% penetration rate at end of year 2007 (2006: 3.3% full year), and this is about
15.5% by household penetration. 3G subscribers totalled 1.56 million at end of year 2007. This
is a growth of 290% from 0.4 million 3G subscribers at end 2006. Internet dial-up service is
estimated at 3.9 million subscribers or 14.3% based on penetration rate for 2007 (2006: 3.8
million subscribers; 14% penetration rate).
The broadcast sector is facing blurring traditional business boundaries, with the beginnings
of telco investment in this arena as well through either a fixed line mode or a mobile service
delivery through the 3.5G platform. Internet Protocol TV (IPTV) is expected in the next one
to two years, with TM holding trials since 2006. Mobile TV underwent trials in 2007 and this
continues into 2008, with major players testing various technologies for service delivery. The
transition to digital TV transmission is underway with RTM digital TV trials which started in late
2006.
Digital TV transition is expected to accelerate in 2008. RTM is already offering FTA TV shows
via online TV service and through 3G mobile networks. Radio broadcast continues on Free-
To-Air nationwide, or now in new markets such as in major supermarkets as well the monorail
transportation platforms. Background music is now available over the mobile handsets and
radio through a broadband connection as well as radio websites.
The Multimedia Super Corridor, aptly renamed MSC Malaysia in April 2006, has gone beyond
the initially specified corridor boundaries to encompass cybercities and cyberports including
the Johor Cyberport that falls in the Iskandar Development Region. Meanwhile, MSC Malaysia
generated intellectual property rights of 1,283 over the 2006 period.
1&2
Only 2006 data is available
8
The C&M industry in Malaysia is in its almost one decade of existence under the first convergence
law of its kind introduced in 1998. The foundation regulatory regime has facilitated developments
in the C&M industry in many ways such as to provide a level playing field for old and new
entrants alike and also to enable easy licensing access in complicated issues of cross sector
service provision and converging service and product offerings such as IPTV, mobile TV and
broadband voice calls.
In 2007, the public-private sector initiatives to provide mobile coverage were almost completed
with progress of Time 2 at 98% completion. A new programme is underway to enhance
further coverage that includes suburban areas, rural communities/indigenous settlements, and
additional tourist spots. Amidst all the mainstream provision of voice services and applications
in broadband and mobile, the digital divide and the bridging of the gap as more people and
places get connected, is constantly being pursued for improvement. This is done through the
Universal Service Program undertaken in collaboration with the service providers, the state
and local authorities as well as other stakeholders concerned. The initiative to broadband the
nation is seen as a prerogative as well to ensure that the national broadband digital divide is
also addressed in urban as well as non-urban areas.
These developments are slowly, but surely paving the way for new or alternative ways of
doing business in the communications and multimedia industry converging environment as well
as allowing the communications services to be increasingly “a basic, reliable and affordable”
service for all.
Monitoring and enforcement activities of the SKMM continue with offenders charged in court or
facing compound - more so in 2007, with 352 cases investigated, 54 cases compounded. The
mandatory standard on quality of service (QoS) is in its fourth year of implementation in 2007.
Service quality and reliability is expected as a norm in our connected nation, so the compliance
requirements have to be adhered and attended to without letup.
9
PICTURE
Chapter 2
Economic Performance of the Industry
MALAYSIAN GDP 6.3% AT 2007
The Malaysian economy gained momentum during the year, expanding by 6.3% underpinned
by robust domestic consumption and investment activities. Growth was more broad-based with
consumption-related sub-sectors expanding rapidly.
The services sector supported by stronger tourism activities is expected to sustain growth trend
for 2007 offsetting the deceleration in the manufacturing sector. Private consumption held strong
as household spending remains resilient despite rising prices. The construction sector is expected
to register a positive growth this year spurred by activities under the Ninth Malaysia Plan and the
development of regional growth corridors.
Higher oil prices and inflation may impact economic expansion in 2008 according to the Malaysian
Institute of Economic Research (MIER). Some moderation from weaker US demand and overall
slowing growth of major economies is also expected in 2008.
11
Monetary and interest rate policies remain stable and supportive of growth. Headline inflation as
measured by the Consumer Price Index (CPI) edged up 1.9% for October on the back of increased
price pressures due to increased food and commodity prices and public service salary revision.
Bank Negara Malaysia has projected the CPI for 2007 to stay in the 2%-2.5% range. The central
bank has kept the Overnight Policy Rate unchanged at 3.5%.
The communications and multimedia (C&M) companies covered in this report comprise the major
public-listed telecommunications companies, those in the broadcasting sector and post. Altogether,
these companies captured RM70 billion in market capitalisation or 6.3% of the Bursa Malaysia
market capitalisation as at 2007. This C&M market capitalisation is not comparable to that posted
in 2006 in view of Maxis delisting to become a private company on 25 June 2007. Prior to delisting
on 25 June 2007, Maxis posted market capitalisation of RM38.8 billion.
Bursa Malaysia =
RM1,106 billion DiGi
1.7%
Communications &
Astro
Multimedia Sector
0.6%
RM69.5 billion
Pos Malaysia
6.3% 0.6%
Time
0.2%
800 849
RM(billion)
722 695
600
640
400 1,036.7
761.4
200 640.8 621.6
579.1
0
12
C&M Companies Market Capitalisation
C&M Companies
RM (billion)
Market Capitalisation in Ringgit
%
2006 2007
Change
35
2006
Maxis 25.7 n.a. n.a.
30 2007
RM (billion)
DiGi 11.4 18.6 63.2 25
20
ASTRO 10.7 6.8 -36.4
15
Pos Malaysia 2.6 1.3 -50.0 10
0
Media Prima 1.9 2.4 26.3 TM Maxis DiGi ASTRO Pos Time Media
Malaysia Prima
Total 87.3 69.5 -*
* not comparable n.a. - not available Source: SKMM, Bursa Malaysia
Source: SKMM, Bursa Malaysia Fig. 2.6 C&M Companies Market Capitalisation in Ringgit
Fig. 2.5 C&M Companies Market Capitalisation
Due to the unavailability of Maxis and ASTRO full year revenue at the time of print, the respective
companies revenue have been annualised to provide a full year data for reference. ASTRO revenue
has been adjusted to calendar year for comparative purpose. The total aggregate revenue of
the C&M listed entities comprising telecommunications, broadcasting, post and other companies is
estimated at RM36.7 billion for year 2007. This indicates an increase of 12.2% from RM32.7 billion
recorded for 2006.
Based on the annualised revenue for 2007, the telecommunications companies captured the lion’s
share at 86% or RM31.6 billion, followed by broadcasting and postal services at 9% or RM3.2 billion,
and 2% or RM0.9 billion respectively and others comprising mainly MESDAQ listed applications
services, network facilities and network service providers with 3% or RM1 billion of total revenue
market share.
ASTRO*
Media Prima Time
6.8%
1.8% 0.9% Pos Malaysia Others
RM0.9 billion RM1.0 billion
DiGi 2% 3%
RTM 11.7%
0.2%
Broadcasting*
RM3.2 billion
Others 9%
2.8% Major Telcos**
TM RM31.6 billion
48.3% 86%
* ASTRO third quarter results adjusted and annualised * ASTRO third quarter results adjusted and annualised
** Maxis annualised ** Maxis annualised
Source: Industry, SKMM Source: Industry, SKMM
Fig. 2.7 C&M Industry Revenue Market Share 2007 Fig. 2.8 C&M Industry Revenue Breakdown by Sectors 2007
13
Telecommunications Sector
The telecommunications sector revenue grew 12.4% for 2007 compared to the corresponding period
in 2006. The aggregate revenue for the telecommunications service providers as represented by
main telecommunications players TM, Maxis, DiGi and Time amounted to RM31.6 billion compared
to RM28.1 billion for 2006.
For 2007, TM maintained its lead in revenue market share with RM17.8 billion or 56% of
telecommunications sector revenue market share of RM31.6 billion, followed by Maxis and DiGi
with 29% and 14% of market share respectively. MESDAQ companies providing telecoms services
such as messaging, Internet Protocol (IP) and PSTN telephony and Internet access with aggregate
revenue of RM0.26 billion do not impact the relative positions of the major companies in terms of
telecommunications revenue for this sector.
Maxis*
27%
TM
59%
* Annualised
Source: Industry, SKMM
Fig. 2.9 Telecommunications Sector Revenue Market Share 2006
DiGi Time
14% 1%
Maxis*
29%
TM
56%
* Annualised
Source: Industry, SKMM
Fig. 2.10 Telecommunications Sector Revenue Market Share 2007
TM’s cellular mobile services arm, Celcom, contributed group revenue of RM4.97 billion (+12.4%) for
FY2007 compared to RM4.42 billion for 2006. TM overseas operations contributed 27.7% (RM4.94
billion) and 25.3% (RM4.2 billion) of total group revenue for the years 2007 and 2006 respectively.
In contrast, despite increasing 2.1% from 2006, fixed line revenue contribution declined to 40.9%
of total group revenue in 2007 from 43.6% for 2006. Overall, group operating profit margin
moderated for 2007 to 19.5% (2006: 21.3%).
14
TM
18 17.84 40
16.40
16 35
13.94
Operating Profit
14 13.25
30
Margin (%)
RM(billion)
11.80
12
25
10
20
8 21.3 19.5
15
6 15.8
14.2 13.1
4 10
2 5
0 0
2003 2004 2005 2006 2007
Malaysian Business*
40%
TM Ventures
4%
TMI Group
28%
Celcom
28%
* Fixed line
Source: Industry, SKMM
Fig. 2.12 TM Revenue by Segment 2007
Celcom
5.5 100
Operating Profit Margin
5.0 5.0
4.4
4.5 80
4.0
RM(billion)
60
3.5 3.2 3.0
(%)
3.0 2.6 40
2.5 25.4
2.0 16.7 15.8
20
1.5
1.0 -12.3 0
0.5
0 -20
2003 2004 2005 2006 2007*
15
Maxis revenue grew 21.5% from RM5.59 billion at end of third quarter 2006 to RM6.79 billion at end
of third quarter 2007. The company’s revenue of RM9.06 billion annualised for year 2007 indicates
a growth of 17.5% over last year’s RM7.71 billion. This indicates a reference that operating profit
margin for year 2007 improved, edging up to 39.5% from 36.8% in 2006.
Maxis
10 9.06 100
9
Operating Profit
8 7.71 80
Margin (%)
RM(billion)
7 6.37
6 5.69 60
5 4.68
4 40
3 40.7 38.5 36.8 39.5
2 29.7 20
1
0 0
2003 2004 2005 2006 2007*
* Annualised
Source: Industry, SKMM
Fig. 2.14 Maxis Revenue by Operating Profit Margin
* Annualised
Source: Industry, SKMM
Fig. 2.15 Maxis Revenue by Segment 2007
DiGi posted revenue growth of 19.5% from RM3.65 billion garnered for 2006 to RM4.36 billion at
end 2007. Data revenue for 2007 surged 25.1% to RM813 million from RM650 million in 2006 on
strong data usage. Operating profit margin improved to 32.8%.
DiGi
5 100
Operating Profit
4.36
Margin (%)
4 80
RM(billion)
3.65
3 2.88 60
2.23
2 1.71 40
29.2 32.8
1 20
22.8 23.4
15.6
0 0
2003 2004 2005 2006 2007
16
DiGi Revenue by Segment 2007: RM4.363 billion
Cellular Mobile
97%
Others
3%
Time revenue for year 2007 indicated a decline of 11.8% to RM0.30 billion from RM0.34 billion for
FY2006 amidst a backdrop of lower wholesale voice revenue and lagging payphone revenue.
0.34 0.30
0.1
-0.04
-0.2 -0.2 -0.2
-0.4
-0.9
-0.8
2003 2004 2005 2006 2007
Broadcasting Sector
The broadcasting sector comprises Free-To-Air (FTA) TV operator Media Prima Berhad, the RTM
channels and subscription-based multi-channel satellite TV service provider ASTRO All Asia Networks
Plc (ASTRO). The combined revenue of the companies amounted to RM3.28 billion as at end of
2007 indicating growth of 14.7% for the sector from total revenue of RM2.86 billion in 2006.
Media Prima posted revenue of RM0.69 billion for the year under review, a growth of 30.2% from
its 2006 revenue of RM0.53 billion. The group achieved an operating profit margin of 23.2% for
the period.
17
Media Prima
0.7 0.69 100
90
Operating Profit
0.6
0.53 80
Margin (%)
RM(billion)
0.5 62.3 70
0.40 60
0.4 0.37
0.33 50
0.3 40
0.2 18.9 21.6 23.2 30
18.5
20
0.1
10
0 0
2003* 2004 2005 2006 2007
Media Prima 50
0.24
0.22 0.21 45
0.20
Operating Profit
0.20 40
Margin (%)
0.18 0.17
RM(billion)
0.16 35
0.16 0.15
0.14 0.11 0.13 30
0.12 0.11 28.0 25
0.12 25.9 26.6
0.09 0.10 26.4
0.10 22.8 23.4 20
0.08 21.1 20.7
0.08 15
0.06
0.04 12.3 11.6 12.3 12.6 10
0.02 5
0 0
1Q-05 2Q-05 3Q-05 4Q-05 1Q-06 2Q-06 3Q-06 4Q-06 1Q-07 2Q-07 3Q-07 4Q-07
ASTRO posted (adjusted) revenue of RM1.86 billion for the nine months ending September 2007,
an increase of 12.3% for the same period in 2006. Operating profit margin stood at 18.4%. ASTRO
further reinforced its position by offering additional channels following the recent launch of the
MEASAT 3 satellite.
ASTRO
3.0 40
2.52 35
Operating Profit
2.5
2.20 30
Margin (%)
2.01
RM(billion)
2.0
1.72 25
1.5 1.42 20
21.5
17.4 18.4 15
1.0
13.6 10
0.5 10.5
5
0 0
FYE Jan-04 FYE Jan-05 FYE Jan-06 FYE Jan-07 FYE Jan-08*
* Annualised
Source: Industry, SKMM
Fig. 2.21 ASTRO Revenue and Operating Profit Margin
18
ASTRO Revenue* by Segment FY Ended
31 January 2008: RM2.523 billion
Others
2%
Radio
6%
Library licensing
& distribution
2% Multi-channel
television
90%
* Annualised
Source: Industry, SKMM
Fig. 2.22 ASTRO Revenue by Segment FYE Jan-08
RTM TV garnered total revenue of RM50.5 million as of September 2007, translating to an 81% of
the total RTM broadcast revenue. In 2006, RTM registered RM111.2 million worth of total broadcast
revenue.
Radio
Radio RM16.8 million
RM11.5 million 15%
19%
TV
TV RM94.4 million
RM50.5 million 85%
81%
19
Pos Malaysia
1.0 50
0.9 0.86 45
Operating Profit
0.82
0.79
0.8 40
Margin (%)
RM(billion)
0.69
0.7 0.65 35
0.6 30
0.5 25
0.4 20
13.1 12.0 11.8
0.3 15
8.5
0.2 4.3 10
0.1 5
0 0
2003 2004 2005 2006 2007
Individually, DigiCert recorded higher revenue at RM9.2 million in 2006 (2005: RM4.8 million)
compared to MSC Trustgate at RM4.5 million (2005: RM3.1 million). Percentage-wise, the revenue
of DigiCert and MSC Trustgate increased by 92% and 45% respectively.
On an overall basis, DigiCert recorded higher revenue compared to MSC Trustgate in the last
four years. The significant growth of DigiCert in 2006 indicates that it is more skewed towards
government usage. This is from the observation that the total number of certificates issued to
government by DigiCert in 2006 is 329,060. As at 2007, there were a total of 1,273,600 digital
signature certificates issued.
10 8.0 60
7.8
Growth (%)
8 6.7
50
5.3 2.7 3.1
6 2.6 40
8.2
4 4.1 30 26.0
5.1 4.8
4.1 17.3
2 20
1.2
0 10
2002 2003 2004 2005 2006 1.7
0
DigiCert Revenue MSC Trustgate Revenue 2003 2004 2005 2006
3
Only 2006 data is available.
20
Number of Certificates Issued by Number of Certificates Issued by
Certification Authorities 2006 Certification Authorities 2007*
1,174,101
329,060
1,200,000
350,000
300,000 1,000,000
No. of Certificates
No. of Certificates
250,000 800,000
200,000
600,000
150,000
69,246
400,000
72,302
100,000
17,520
7,923
8,396
7,355
200,000
522
660
563
544
497
534
50,000
9
9
0
0
MSC Trustgate DigiCert BNM
MSC Trustgate DigiCert BNM
DigiCert started operations in 1999. The effectiveness of their business operations was slowly
seen in 2003 with turnaround in operating profit margin of 0.2% (2002: negative 145%). In the
following years from 2004 to 2006, its operating profit margin was between 5.1% and 9.2%.
25
RM(million)
6 6 21.2
5.1
4.8
5 20
5 9.2
4.1
4 16.4
4 15
3
3 5.1 4.8 10
2 4.1
2 5
1.2 1
0.9 0.2
1 0 0
0.01 0.1
2003 2004 2005 2006
0
1999 2000 2001 2002 2003 2004 2005 2006 DigiCert Operating Profit
Revenue Margin
21
MSC Trustgate started business operations in the year 2000 and the company achieved an 11.6%
operating profit margin in 2006. This is a positive reversal of the company’s performance compared
to the declining performance of previous years.
4.5
4.5 4.1
4.0
3.4
3.5 3.1
RM(million)
2.5
2.0
1.5
1.0
0.5 0.1
0
2000 2001 2002 2003 2004 2005 2006
Operating Profit
-26.8
4.0 -20
RM(million)
Margin (%)
3.5 3.1 -40
3.0 -75.9 2.6 2.7 -60
2.5 -80
2.0 -100
-127.8
1.5 -120
1.0 -152.4 -140
0.5 -160
0 -180
2002 2003 2004 2005 2006
All eligible companies listed on the Bursa Malaysia MESDAQ market comprise the component companies
under the FTSE Bursa Malaysia MESDAQ, which refers to a market capitalisation weighted index. This
index has replaced the former MESDAQ (Malaysian Exchange of Securities Dealing and Automated
Quotations) Index on 1st November 2007. The objective of the change is to provide more globally
relevant trading foundation for both foreign and local investors to base their investment analyses
and decisions with market measures that are investable, liquid and transparently managed.
Bursa Malaysia MESDAQ market provides an avenue for high growth companies to raise capital and
promote technology intensive industries and assist in developing a science and technology base for
Malaysia.
The companies listed on MESDAQ total 123 in number as at end December 2007. Out of these, 18
companies are SKMM licensees. Most of these are in the license category of Applications Service
Provider (Class) or ASP(C). The ASP(C) licensees are those that are involved in activities such as
voice services, data services, content based services, electronic commerce and other transmission
services.
22
Holding Company (FTSE Bursa
SKMM Licensee Types of Licence
Malaysia MESDAQ Listed)
eB Capital Bhd eB Technologies (M) Sdn Bhd NFP(I) Last Mile, NSP(I)
Airocom Technology Bhd Airocom Technology Bhd ASP(C)
asiaEP Bhd asiaEP Bhd ASP(C)
M3 Technologies Asia Bhd M3 Technologies Asia Bhd ASP(C)
DVM Technology Bhd DVM Intellisource Sdn Bhd ASP(C)
Intelligent Edge Technologies Bhd Obnet Sdn Bhd NFP(I) Last Mile and NSP(I)
Intelligent Edge Technologies Bhd Intelligent Edge Technologies Bhd ASP(C)
MNC Wireless Bhd MNC Consulting Sdn Bhd ASP(C)
MNC Wireless Bhd MNC Wireless Bhd ASP(C)
Mobif Bhd Mobif Global Sdn Bhd ASP(C)
Mobif Bhd Izzinet Sdn Bhd ASP(C), NSP(I), NFP(I) Last Mile
N2N Connect Bhd N2N Connect Bhd ASP(C)
Nextnation Communication Bhd Nextnation Network Sdn Bhd ASP(C)
REDtone International Bhd REDtone Telecommunications Sdn Bhd ASP(C)
REDtone International Bhd REDtone Marketing Sdn Bhd NSP(I),NFP(I)
REDtone International Bhd REDtone-CNX Broadband Sdn Bhd ASP(C), NSP(I), NFP(I) Last Mile
Palette Multimedia Bhd Palette Multimedia Bhd ASP(C)
GD Express Carrier Bhd GD Express Carrier Bhd Courier
ASP - Applications Service Provider ; NSP – Network Service Provider; NFP – Network Facilities Provider
I – Individual; C - Class
Source: Industry, SKMM
Fig. 2.34 SKMM Licensees on FTSE Bursa Malaysia MESDAQ
23
SKMM Licensees Listed on MESDAQ
As far as the 18 SKMM MESDAQ listed licensees are concerned, most of their business operations
are in the category of telecoms services and Internet connectivity services, each constituting
27% or five companies. Companies categorised under telecoms services are in research and
development, manufacturing, telecommunication products and marketing of telecommunication
multimedia solutions. Internet connectivity services consist of services of e-commerce and provision
of broadband. This is then followed by mobile content or mobile value added service companies
comprising 16% or three companies. This service is observed as potentially high growth in the
Malaysian market in view of the high penetration rate of mobile phones in Malaysia.
Courier Services
6%
Computer Services
6% Internet
Connectivity
Services
Software R&D 27%
6%
Mobile Content/
Value Added
Services
16%
Networking
Product
6%
Enterprise
Software/Services
6% Telecom Services
27%
eB Technologies (M) Sdn Bhd Provision of broadband Internet access and other Internet related services
Airocom Technology Bhd Provision of total wireless and communication solutions
asiaEP Bhd Providing e-commerce solutions and developing an e-market place for both local
and international enterprises
M3 Technologies Asia Bhd Mobile-Internet messaging solutions using the Short Messaging Services
(SMS), General Packet Radio Services (GPRS) and Wireless Application Protocol
(WAP) technology
DVM Intellisource Sdn Bhd Provision of business and operational support systems and services, software
development and business process outsourcing
Obnet Sdn Bhd Internet connectivity services
Intelligent Edge Technologies Bhd Provision of consultancy, design and development of business application software
solutions
MNC Consulting Sdn Bhd Consultation, sales, marketing, implementation of m-business solution and
management of content resources for business to business and business to
consumer enterprise.
Mobif Global Sdn Bhd Dealing in telecommunications products and related services
24
SKMM Licensees on MESDAQ
Business Activities
(cont’d)
Growth (%)
RM(billion)
4 3.5 3.7
3.2
9.4 10
7.1 6.3
5.7 5.9
2 5.0
4.1 5
3.2 5.3 4.5
0.3
2.2
0 0
2001 2002 2003 2004 2005 2006 2007
The growth of the Malaysian economy at 6.3% supports the advertising expenditure growth in the
country. Growth in adex was 17% in 2007, translating to a RM5.5 billion worth of advertisements
spent in Malaysia. Much of the contribution was advertisements in conjunction with the nation’s 50th
Merdeka Anniversary celebrations and Visit Malaysia Year 2007 tourism promotions.
Analysts are predicting an exciting year ahead in 2008 due to the Olympic Games in Beijing and
Euro 2008 football championship. Malaysia is forecasted to have a 7.1% growth in 2008 to RM5.58
billion4. Global ads spend growth is forecasted to accelerate in 2008 to 6.4% from an estimate of
5.8% in 2007, driven by ad spend of US and China.
4
Zenith Optimedia forecast
25
Broadcast Adex 2007
TV Adex Revenue
(RM1.932 billion)
RTM
10%
TV Media Prima
89% 83%
ASTRO
Radio 7%
11%
CAGR:
13.5%
CAGR:
6 10.4%
5.5
5 4.6 4.7
4.4
CAGR:
RM(billion)
4 15.4% 3.7
3.5
3.1 3.2
3 2.6
2.4 2.5
2.0 2.1
2 1.7
1.4
1.1 1.2
1 0.6 0.8
0.5
0
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
The pre-CMA period (1988 to 1998) showed adex achieve a Compound Annual Growth Rate (CAGR5)
of 15.4%. The highest ad spend achieved in the said period was in year 1997 at RM2.6 billion but
a year later to RM2.1 billion due to the 1998-1999 financial crisis.
In the post-CMA period, adex accelerated to positive growth and registered an all-time high adex of
RM5.5 billion in the year 2007. Despite many unforeseen negative economic events regionally and
globally, Malaysia overall, managed to register adex CAGR of 13.5% from 1988 to 2006.
5
CAGR – Compound Annual Growth Rate. This is a formula to measure the annual growth rate over a period of several years.
26
Adex Market Share 2006 Adex Market Share 2007
Television Television
Others Others
31% 33%
3% 4%
Radio Radio
4% 4%
Print
Print
62%
59%
As is the case traditionally, in 2007, print medium leads, taking in the largest slice of the adex pie
at 59%. This is followed by the TV medium at 33%, two notches higher from the same period
last year. “Other mediums” also gained a percentage higher compared to 2006, 4% as a result of
restructuring on outdoor companies. Meanwhile, radio remained status quo at 4% compared to
2006.
Both FTA TV and radio adex showed accelerated growth during 2001 until 2007, reaching a CAGR of
12.7% and 12.4% respectively. In 2007, the two mediums each registered an all-time high adex of
RM1.798 billion and RM241.1 million respectively. The radio advertisement revenue reached over
RM200 million with additional stations from Media Prima’s newcomers, Hot FM and Fly FM.
2001-2007 CAGR
FTA TV 12.7%
2,200 Radio 12.4%
2,000
1,800 241.1
1,600
RM(million)
1,400 193.3
Television Radio
27
PICTURE
Chapter 3
C&M Industry Overview
REGULATORY REGIME IN MALAYSIAN C&M INDUSTRY
The Malaysian communications and multimedia (C&M) industry is governed by the regulatory
regime under the Communications and Multimedia Act, 1998 (CMA). The CMA encompasses a new
licensing regime introduced in 1998 to better regulate the industry towards convergence. This
regime provides transparency and a more orderly market in terms of development and growth.
The communications market is defined under the CMA as an economic market for the network
services; applications services; goods and services used in conjunction with the stated two services;
or access to network facilities used in conjunction with either a network service or an applications
service. There is also the market for content applications services. These economic market segments
provide the flexibility for the Malaysian regulatory framework to act as a catalyst towards building
a robust C&M industry.
Licensing in 2007
Under the four categories of licences there are two types of licences issued, namely, Individual
licence and Class licence. The individual licences are granted for activities which require a high
degree of regulatory control while class licences only requiring registration are renewable annually.
The lists of licensees are in the respective registers maintained by SKMM.
The number of licences issued or registered by SKMM by category for 2007 and the cumulative
number of individual licences issued for the year are as tabulated below:
29
Licence Fee
393
400
372 368
350
No. of Licensees
300
250
200
150 142
90
100 89
74 78
53
63 67 60 69
50 29 36 31 39 24 29 29 33 28 29 32 35 29
20 20 19 20 22 23 19
0
NFP(I) NSP(I) ASP(I) CASP(I) ASP(C) NFP(C) NSP(C) CASP(C)*
* Started in 2007
Source: SKMM
Fig. 3.4 C&M Licensees 2007
The total aggregate domestic revenue (excluding overseas) represents 6% of GDP (constant prices).
The aggregate revenue of RM36.7 billion (including overseas) is a growth of 12.6% from RM32.6
billion in 2006 and represents 7.6% of GNP (constant prices). GDP and GNP at constant price are
valued at 2000 price instead of the 1987 price in accordance with the rebasing exercise by the
Department of Statistics, Malaysia. The C&M sector contributed significantly influencing not only
trends in media consumption but also in setting new industry trends. The positive consumer and
business sentiments evident in 2007 augured well for the C&M industry.
30
C&M Industry - Revenue versus GDP
30
30 10
Revenue as % of GDP
27
25
24
8
RM(billion)
6.0
20 5.5 5.7 5.7
6
4
10
0 0
2004 2005 2006 2007
40 20
Revenue as % of GNP
37
33
15
30 28
RM(billion)
25
10
20 7.6
6.6 7.2
6.2 5
10 0
0
2004 2005 2006 2007
Domestic Overseas
31
Contribution To Group Revenue: Overseas versus Domestic
100
6 6
9
95
Percentage (%)
17 18
90
85 94 94
91
80
83 82
75
2003 2004 2005 2006 2007
Domestic Overseas
The revenue level of communications services has been on an upward trend in year 2007. Revenue
from the provision of various services across different market segments comprising fixed line,
cellular mobile services, Internet access, broadcasting (subscription TV and FTA TV) and post are
consistently demonstrating positive growth.
32
Fixed Line Services Segment
Fixed line services segment revenue amounted to RM8.3 billion in 2007. In comparison with RM8.2
billion in 2006, revenue for this segment increased marginally. Market share leader TM anticipates
further advancements in this segment following its plan to segregate its fixed and mobile businesses
into separate entities to facilitate greater business focus in the respective segments. The company
recorded encouraging growth in revenue for Internet and multimedia segments driven by broadband
promotion and demand.
Time Time
Maxis 4% Maxis 4%
5% 6%
TM
TM
90%
91%
DiGi DiGi
Celcom 24% Celcom 27%
31% 31%
Maxis Maxis*
45% 42%
33
Cellular mobile service providers recorded total revenue for cellular mobile revenue segment from
domestic and overseas operations amounted to RM18.7 billion in 2007 (-3.1%). In the period under
review, Maxis revenue is augmented by its Indian unit, Aircel, which contributed RM1.18 billion to
group revenue for YTD September 2007. The year 2007 is the first record of full year results of
Aircel (in this case annualised data).
Domestic and Overseas Cellular Mobile Domestic and Overseas Cellular Mobile
Revenue Share Revenue Share
(RM19.3 billion for 2006) (RM18.7 billion for 2007)
Maxis Maxis*
38% 49%
DiGi
18%
DiGi
23%
TM
TM
28%
44%
Broadcasting-Subscription TV Segment
ASTRO is a major provider of subscription-based pay-TV services. The company recorded a total
subscription and advertising revenue of RM1.68 billion in the nine months ending October 2007,
comprising subscription (93%) and advertising revenue (7%). On an annual basis, this indicates
17% growth on annualised RM2.1 billion subscription and advertising revenue (FY 2007: RM1.8
billion).
2,500
2,088.5
2,000
1,800.4
RM(million)
1,103.8
1,000
500
0
FY 2004 FY 2005 FY 2006 FY 2007 FY 2008*
34
ASTRO Subscription and Advertising Revenue 1Q-3Q FY 2008
600 560.9
523
482.5
500
400
RM(million)
300
200
100
35.4 36.3 40.1
0
1Q-08 2Q-08 3Q-08
Free-To-Air TV Segment
120
16.8
100 13.9
16.2
80
RM(million)
60
11.5
90.7 94.4
84.8
40
50.5
20
0
2004 2005 2006 YTD 3Q 2007
TV Radio
Source: RTM
Fig. 3.18 RTM Radio and TV Revenue Comparison
Total revenue for RTM broadcasting channels has been stable, reaching over the RM100 million
region in the last few years. In 2006, both its TV and radio collected the highest revenue from the
said period above at RM94.4 million and RM16.8 million respectively.
35
Postal Services Segment
Pos Malaysia revenue recorded at RM0.86 billion on the back of higher mail and courier volume, a
positive growth of 4.9% for 2007 compared to RM0.82 billion for the same period in 2006.
+ 4.6%
900 +4.4%
+13.4%
800
700
RM(million)
600
500
821.1 858.5
400 786.3
693.5
300
200
100
0
2004 2005 2006 2007
Other Segments
Courier Services
The Malaysian courier industry comprising top 10 providers captured RM1.354 billion in revenue in
2006 reflecting a high concentration of revenue in the industry.
Cen Worldwide#
10%
DHL**
30%
UPS
13%
* Revenue of the FedEx group companies, namely Federal Express and Udara Express Courier Services Sdn Bhd
** Revenue of the DHL group of companies, namely DHL Worldwide Express Sdn Bhd and DHL Air
*** Revenue of the City Link group of companies, namely City Link Air Cargo, City Link Express and City Link Logistic
# Estimate
Source: Industry, SKMM
Fig. 3.20 Top 10 Courier Services Companies Revenue Market Share 2006
36
Top 10 Courier Services Companies by Revenue
0.50
0.45
0.40
RM(billion)
0.35
0.30 2005 2006
0.25
0.20
0.15
0.10
0.05
0
*
*
PS
*
e#
ss
ss
n
id
TN
**
io
x
L*
e
dE
id
nw
ut
pr
pr
H
nk
w
Fe
ib
D
Ex
Ex
io
ld
Li
tr
at
or
is
D
X
ty
AB
W
D
Ci
M
n
Ce
KT
* Revenue of the FedEx group companies, namely Federal Express and Udara Express Courier Services Sdn Bhd
** Revenue of the DHL group of companies, namely DHL Worldwide Express Sdn Bhd and DHL Air
*** Revenue of the City Link group of companies, namely City Link Air Cargo, City Link Express and City Link Logistic
# Estimate
Source: Industry, SKMM
Fig. 3.21 Top Ten Courier Services Companies by Revenue
Privatisation activities that began in the Malaysian telecommunications sector in the early 1980s
eventually led to increased competition aided by sector liberalisation in the 1990s. These trends
facilitated and prompted open the “floodgate” to funding sources and new entrants, and the resulting
investments in infrastructure in both the fixed and mobile sectors. These investment trends occurred
not only in the telecommunications sector but in other C&M sectors as well including broadcasting.
The introduction of convergence legislation Communications and Multimedia Act, 1998 provided
a regulatory environment to promote vibrant industries in a fairly liberalised landscape. Not only
did sector market opening to new entrants and investors play the role of promoting private sector
participation in this sector, it also increased competition, enabled greater efficiencies and higher
productivity.
The advancements and enhancements in products and services in the ICT landscape have worked
together with pro-market government policies to boost capex and in turn, played a significant role in
the socioeconomic progress of the country. Converging services in the C&M sector are set to provide
further impetus to boost investment into network assets to deploy new and enhanced services.
37
Fixed Line Capex versus Mobile Capex 1982-2007*
DiGi listed
(previously
4.5 Mutiara Swisscom)
Maxis listed
4.0
Maxis de-listed
3.5
More players
RM(billion)
3.0
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
*
07
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
20
20
20
20
20
20
20
20
Mobile capex Fixed line capex
Postal Others
1% 2%
Broadcasting
3%
Telcos
94%
Postal Others
4% 3%
Broadcasting
5%
Telcos
88%
* Annualised and estimated based on news reports, company websites, company presentations
as at third quarter 2007
Source: Industry, SKMM
Fig. 3.24 C&M Capex Market Share 2007
38
MyICMS 886
The Malaysian Information, Communications and Multimedia Services 886 (MyICMS 886) strategy
was launched in December 2005. It is aimed to develop Malaysia in the areas of information,
communications, and multimedia services (ICMS), with the identification of eight key service areas,
eight types of infrastructure and six growth areas as focus points. It was developed in consultation
with the industry via the “Technology Roadmap Exercise” in 2005 and after study of similar initiatives
undertaken in advanced countries, namely, Japan and South Korea.
The MyICMS 886 is to create a catalytic cycle by enhancing existing investments in ICMS infrastructure
that will support growth of ICMS services to come. Among the services are high speed broadband, 3G
and beyond, mobile TV, digital multimedia broadcasting, digital homes, short range communications,
VoIP/Internet telephony and Universal Service Provision (USP).
In 2007, both public and private sector initiatives and activities were undertaken in the implementation
of the strategies in respect of rollout and take-up of services, infrastructure and growth areas under
the MyICMS 886.
Broadband
The government has set up a Cabinet Committee on Broadband (CCB) to oversee the deployment
of broadband throughout the country. Chaired by the Deputy Prime Minister, the committee is
tasked with coordinating efforts involving various ministries and agencies on implementation of the
decisions made by the CCB on broadband rollout.
The government’s approach is to define the broadband services and to study the approach of other
developed countries in rolling out broadband services. A strategic approach is required for greater
broadband penetration and to manage the impact and cost implication to the government.
The strategy for nationwide broadband implementation to achieve 50% household penetration by
2010 was proposed through the CCB and is premised on a three-prong approach which covers both
supply and demand:
Broadband Supply
39
Demand Stimulation
Demand Stimulation addresses the three key levers of creating awareness, increasing the
attractiveness of content and improving affordability. These levers require substantial involvement
by the government as there is a need for continuous government and private sector awareness
initiatives to accelerate take-up of broadband services by the population. In terms of increasing the
attractiveness of content further, initiatives on e-government, e-education and e-commerce need
to be enhanced. To do this, online content strategies and activities must be improved and aligned.
From the aspect of improving affordability, initiatives need to be developed to reduce or improve
broadband access costs such as personal computer ownership and subscription fee. Another
initiative to address affordability is through widening community access facilities and deployment.
Several pilot projects were initiated under The Broadband Klang Valley Push (KVB90) to stimulate
broadband demand with the aim at increasing the broadband penetration rate of Klang Valley to
90% by 2010. Projects under the KVB90 include:
The scope of the project includes setting up wireless hotspots in selected public
libraries within the Klang Valley and providing these libraries with free Internet access
service for one year. There are 10 public libraries within the Klang Valley targeted.
The user can access the Internet for free from their notebook PCs and smartphones
in the libraries. The first library to participate in this initiative is the Raja Tun Uda
Library in Shah Alam, Selangor. This initiative is sponsored by broadband service
provider PacketOne Networks (Malaysia) Sdn Bhd. Wi-Fi service was available since
April 2007.
The stakeholders for this project include SKMM, municipal libraries, Selangor state
government and service providers.
Towards this end, the Ministry of Energy, Water and Communications (MEWC) and
SKMM have been connecting communities under the USP programmes to equip rural
and district libraries with Internet infrastructure and access.
Given the more comprehensive content databases of urban libraries such as the
National Library, rural libraries would benefit if there was sharing of these databases.
This would assist in narrowing the digital divide and realise cost savings. As such, the
40
National Library and the State libraries are to be networked and the various content
databases need to be integrated to ensure the widest possible access for all users. The
requirement for appropriate high speed broadband infrastructure is therefore critical
together with sufficient capacity for maintaining the content database, which would
include e-books, research material, knowledge portals and educational content.
The project undertakes to connect five libraries within the Klang Valley, namely, the
National Library, Raja Tun Uda Library, Kuala Lumpur Library, Subang Jaya Hipermedia
Library and Petaling Jaya Community Library. SKMM is in the process of engaging a
technical advisor to advise on the implementation of this project.
The stakeholders for the project include SKMM, the libraries as above-mentioned, the
Selangor State Government and Dewan Bandaraya Kuala Lumpur.
This is a joint collaboration between SKMM and Telekom Malaysia (TM). Four schools
participating in this pilot project are St. John’s Institution, an urban school in Kuala
Lumpur; Sekolah Menengah Taman Tun Dr. Ismail, a secondary school in a residential
area; Sekolah Menengah Cyberjaya, a secondary school in a sub-urban area; and
Sekolah Agama Menengah Bistari USJ, a religious secondary school.
TM will upgrade the broadband infrastructure connection to these schools and provide
some e-applications and e-learning tools. SKMM will provide an ICT facilitator to
each of the said schools, who will facilitate the usage of ICT within the said schools,
especially amongst the students.
The stakeholders in this project include MEWC, SKMM, Ministry of Education and
Selangor state government.
The stakeholders for this initiative include SKMM, Local Authorities, Ministry of Tourism,
Malaysian Chamber of Commerce and other related parties.
41
v. Connected Municipalities
The objectives of this project are as follows:
a. To create municipalities with world class communications infrastructure
supporting innovative services to meet the needs of the Government, citizens and
businesses; and
b. To promote awareness and increase broadband penetration rate within selected
municipalities.
Its scope is to introduce the following criteria into five selected municipalities (Kuala
Lumpur, Shah Alam, Petaling Jaya, Subang Jaya and Nilai) as a pilot programme:-
1. Broadband infrastructure
i. Ubiquitous – widen coverage within the selected municipalities using a
combination of technologies;
ii. Affordability – broadband services should be offered at affordable rates to end
users (depending on the speeds offered); and
iii. High performance networks - good quality of service at high speeds.
The stakeholders for this project include SKMM, selected Local Authorities, Selangor
state government, Negeri Sembilan state government and service providers.
Specifically, SKMM is working with PacketOne Networks (Malaysia) Sdn Bhd on this
project. It is meant to act as a technology showcase and pilot trial providing mobile
broadband access to highway users between Putrajaya and Cyberjaya using WiMAX
technology. The project is expected to utilise a demo bus with Internet-access facilities
on board. Under the first phase, the bus will travel along a route between Putrajaya
and Cyberjaya. Coverage under the second phase is expected to be extended to Shah
Alam.
The stakeholders in this project include SKMM, service providers, local and highway
authorities and the Selangor state government.
42
Nationwide Broadband Implementation Strategy
The coverage strategy for nationwide implementation is divided into three zones:
a) Zone 1: High density, and/or high economic impact areas will be served by HSBB with a
minimum speed of 10Mbps. This area is likely also to be served by multiple infrastructures such as
wireless broadband and fixed line (DSL) across the entire zone. This zone is expected to contribute
23%-25% of total penetration nationwide due to the higher coverage and affordability.
b) Zone 2: This area comprising urban and semi-urban area will be served by BBGP with speeds
of up to 2Mbps. This area is likely to be served by more than one infrastructure fixed line (DSL)
and wireless broadband. This zone is expected to contribute 16%-18% of the total penetration
target.
c) Zone 3: This zone will comprise rural areas where affordability is low and where
infrastructure is likely to be limited to single delivery platform. This area will be served by
broadband services up to 2Mbps. The services could be basic fixed line (DSL) for some areas
and wireless broadband in most areas. In underserved areas, telecenters will be built in every
mukim.
Mobile TV
In this respect, Maxis has collaborated with ASTRO on the first mobile TV trial in Malaysia (May–July
2007). U Mobile Sdn Bhd also has indicated their interest in exploring mobile TV service concurrently
with their 3G deployment.
The minimum standard for the set-top box to be deployed in Malaysia is currently being considered
by the Malaysian Technical Standards Forum Bhd. Submission of final draft to the SKMM on this
matter is expected in first quarter of 2008.
Digital Homes
On the aspect of digital homes, the initiative involves the establishment of a Model Digital Home
and Centre of Excellence for Digital Home at the Multimedia University. The objective of this is to
prepare Malaysians accordingly and encourage local research and development on digital home
related products and technology.
Towards this end, MEWC has engaged the Centre of Excellence (CoE) for Sensor Technology located
at Universiti Putra Malaysia so as to leverage on the usage and adoption of the various short range
communications technology for Wireless Sensor Network (WSN) implementation. The CoE has
identified six main projects to be undertaken in the implementation plan of WSN.
43
The SKMM is a member of the Financial and Technical Committee on WSN spearheaded by MEWC.
SKMM is also involved in a series of awareness and promotion seminars ongoing from November
2007 to 2010 to educate the industry and stakeholders in promoting short range communications
and specifically on wireless sensor technology.
Content Development
The Network Content Development Grant (NCDG) is a fund established by the SKMM to render
assistance in the form of grants towards achieving the national policy objective of establishing
Malaysia as a global hub for content services. It aims to facilitate and encourage Malaysian
involvement in the creation, production and distribution of highly creative, original and marketable
content for domestic and international markets. The NCDG was launched on 10 July 2007 with an
initial allocation of RM20 million. The disbursement guidelines and mechanism have been established
and applicants are currently being considered accordingly.
Additionally, various meetings and on-going dialogues with the industry and other stakeholders
are held to ensure alignment towards the MyICMS 886 goals and promoting awareness of MyICMS
886.
44
relation to policy, strategy and other programmes and models to explore current initiatives
and future plans of stakeholders toward effective implementation of MyICMS 886 for 2007
and beyond.
The outcome of this workshop is the development of specific recommendations and strategy
that are relevant to MyICMS 886 strategies and targets for the mutual benefit of all stakeholders
within the main areas of Infrastructure and Services main area.
Issues and challenges were discussed and a few recommendations were proposed in the
workshop.
The focus of the seminar is to enhance the links and cooperation among the various
stakeholders of the content industry, namely the policymakers, content developers and
content aggregators in the immediate objectives as follows:
b. Highlight the roles and initiatives of KTAK, SKMM and other agencies in developing a
vibrant local networked content industry; and
c. Learn from the content experts (producers and distributors) about the current
scenario and the recommended development strategy to be adopted collectively.
The seminar also offers a good opportunity for participants to establish a constructive
synergy between content creators, aggregators and government agencies.
2. Participate in two market access forums, namely, Television and Film Trade Market
(MIPTV) and Broadcast Worldwide (BCWW).
SKMM’s participation in the event was mainly driven by the spirit of cooperation fostered
through WC2, of which FINAS and KeKKWA were active members.
KLIFF ‘07 is a revival of the unprecedented Kuala Lumpur World Film Festival held in
February 2003.
45
d. to increase revenue from filming, tourism and other sectors affected by the filming
industry; and
e. to foster unity and tolerance among international communities through film and
cultural appreciation, hence the theme for KLIFF ’07 is “Unite With Culture.”
SKMM was invited to brand itself as one of the supporting agencies together with Tourism
Malaysia, MATRADE, MDeC and Ministry of Home Affairs (Film Censorship Board). SKMM
had a booth at the Creative Multimedia Content Expo 2007 in Cineleisure Damansara from
28 November 2007 to 2 December 2007 and invited the Communications and Multimedia
Content Forum of Malaysia (CMCF) and representatives from the Maxis Developers Program
to showcase their activities. CMCF and Maxis are WC2 members.
SKMM sponsored the prize money of RM100,000 for five winning teams and the champion
IHL. The prize breakdown is as follows:
Of note is that this is not an ordinary contest which stops at winning the prizes. The
winners are absorbed into Maxis Developers Program to further develop their winning
entries into commercial products.
All in all, 285 IHLs nationwide were invited to participate in MCC07. SKMM, together with
other organisers, went on a road tour to promote the contest directly at 71 IHLs. The
contest attracted 35 submissions. Ten of the best entries were chosen and the teams were
brought to Ilham Resort Port Dickson for a three-day Mobility Content Development Camp
called the INQB8 from 13-15 July 2007. During this session the teams went through a
motivation session, technical exposure and mentoring by expert mobile content developers
who became their mentors.
46
iv. Working Committee 3 (WC3): Manufacturing and Foreign Ventures
Manufacturing and Foreign Ventures are under the soft infrastructure and growth areas where
these are the areas under other government agencies and sectors which can be developed
through leveraging on the services and infrastructure as identified in the MyICMS 886 strategy.
A workshop was organised on 28 June 2007 with the theme, “Malaysia – Destination for ICT
Investment Workshop”. The objective of the workshop is to address issues, challenges and
way forward pertaining to:
MSC MALAYSIA
The Multimedia Super Corridor (MSC) Malaysia was mooted to provide a platform for high value
added industries to take root, in particular advanced technology and knowledge-based industries.
Now in its second phase, MSC Malaysia has come far over the 11-year span, accommodating 1,594
companies across six technology clusters, namely, creative multimedia (10%), mobility, embedded
software and hardware (21%), Internet based business (11%), shared services and outsourcing
(8%), Institutions of higher learning (IHLs) and incubators (5%) and application software (45%).
launched
1,600 1,517
P
3 Jul - Launch
of (Phase2) MSC
1,400 16 Jan - International Advisory
5 Sep - MyKad
launched
Next Leap 1,317 H
Panel first meets launched 1,421
15 Jul - Smart
1,200
A
School Training for
teachers launched
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007... 2011-
2020
47
1,594* MSC Malaysia Status Companies by Technology Cluster 2007
Mobility, embedded
software & hardware
334, 21%
Application
sofyware
719, 45% Institutions of higher
learning & incubators
83, 5%
Creative
multimedia
163, 10%
Shared services
Internet based outsourcing
business 123, 8%
172, 11%
48
Intellectual Property in MSC Malaysia by Category
Shared Services
Creative IHLs Incubators
IHLs Incubators and Outsourcing
Multimedia 2%
Shared Services 4% Cluster
Cluster 7%
and Outsourcing 8%
Cluster Creative
11% Multimedia
Cluster
40%
Application
Software Cluster
30%
Mobility,
Embedded
Software &
Application Hardware Cluster
Software Cluster 42%
34% Mobility,
Internet Based Internet Based Embedded
Business Cluster Business Cluster Software &
1% 9% Hardware Cluster
12%
Mobility,
Embedded
IHLs Incubators
Application Software &
Shared Services 40% Creative
Software Cluster Hardware Cluster
61% 28% and Outsourcing Multimedia
Cluster Cluster
12% 15%
Mobility,
Embedded
Software &
Hardware Cluster
15%
Internet Based
Internet Based Application Business Cluster
Business Cluster Software Cluster 2%
11% 52%
Source: MDeC
Fig. 3.28 Intellectual Property in MSC Malaysia by Category
49
PICTURE
Chapter 4
Fixed Line Services
FIXED LINE CONNECTIONS
Fixed line services in Malaysia experienced continued decline, albeit decelerated. As at 2007, fixed
line subscribers stood at 4.35 million, with penetration rate decreased from 16.1% in 2006 to
15.8% in 2007.
As the incumbent in fixed line services, TM Berhad holds 97% share by DEL connections. Nevertheless
fixed line services continue to face decrease in adoption of the service starting 2002, mainly due to
migration to alternative services such as cellular mobile, but also increasingly to other more recent
voice services option such as Voice over Broadband, Skype and VoIP related services.
Operator initiatives such as provisioning fixed line and broadband services mitigated the decline in
DEL connections for 2004 to 2007. Businesses were offered a variety of new and innovative pricing
plans targeted specifically at the business segment. The decline in residential take-up appears to
have moderated in 2005 compared 2004, but DEL connection increased to 2.9 million in 2007.
5,000 25
15
10
4,000
3,500 0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
3.0
2.9
3.0 2.8 2.8 2.9
(million)
2.5
2.0
1.51 1.53 1.51 1.50
1.5 1.3 1.3 1.3
1.2 1.2 1.2 1.2
1.0
0.5
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Residential Business
51
DEL Connection Residential versus Business Growth
20
16.2
15
11.1
Growth (%)
10
8.3
9.1 6.7 6.3
5 3.6
1.3
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
-0.7
-1.3
-2.9
-5 -3.5
-6.1 -6.5
-10
Residential Business
Time
Maxis 1.3%
0.7% DiGi
0.1%
TM
97.9%
Malaysian Internet users are increasingly going to be broadband as this in the preferred service
going forward. The accelerated introduction of broadband services by the incumbent fixed line
operator together with initiatives under the National Broadband Plan are some of the measures to
encourage broadband take-up in the immediate future.
TM’s new Internet service, EZnet 1315 is a pre-activated Internet narrowband service and is available
to all TM fixed line subscribers nationwide. TM fixed line subscribers with a PC and narrowband
modem may access the Internet by only dialling 1315 without login identification or password. The
only requirements to use this service is a 56K modem (either internal or external modem) and a TM
fixed telephone line.
52
Description TM Net EZnet
Type of user Occasional Internet user
Back up service for TM Net Streamyx
Registration No registration required
Usage No login ID and password available
Charges RM0.40/minute
Single charge under ‘Access Charges’ in ‘Telephone and Multimedia Bills’
No one time registration fee and subscription fee
Value added services Value added services are not available for EZnet
Terms and conditions According to the relevant terms and conditions for fixed line subscription between
TM and the customer.
Source: Company Website
Fig. 4.5 TM Net EZnet
• TM ISDN line
• TM CDMA (wireless telephony) service
• Non TM fixed line subcribers (from other fixed line providers)
• TM Payphone
• Home Prepaid and other telecard services
• TM Service Line
Penetration Rate
3.5 3.3
3.0 2.9 15
2.6
(million)
(%)
2.1
11.4
2.0 10.5 10
1.7
1.5 8.8
7.1
1.0 5
0.7
0.5 0.4
0.2 2.9
0.9 1.8
0 0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
China 10
Indonesia 7
Philippines 5
0 10 20 30 40 50 60 70 80
Source: SKMM
Fig. 4.7 Internet Users per 100 Inhabitants, Selected Countries 2006
53
Internet (Dial-Up) Growth Rate Broadband Growth Rate
200
143
150 300
100 100
100 200
75
129
99
50 100 79
24 24 53
12 14 12
3 3
0 0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007
Monthly Rate
Company Packages Bandwidth Hours of Usage Excess Usage Rates
(RM)
54
BROADBAND – WIRELINE AND WIRELESS
Satellite
Wireless LAN 0.2%
21.1%
HSDPA
4.4%
SDSL
0.5%
ADSL
Wireless
73.2%
0.6%
* Preliminary data
Source: SKMM
Fig. 4.13 Number of Broadband Subscriptions by Technology 2007
55
Regional Comparatives
On regional comparatives, South Korea tops broadband penetration, with 93% of households
connected to broadband. Stiff competition and a highly competitive broadband market boosted
penetration rates in mature markets like South Korea, Hong Kong and Singapore. Nevertheless,
broadband in developing markets like Malaysia, Thailand, Philippines, India and Indonesia are likely
to be supplied by incumbent telcos or even now, by celcos.
The Malaysian broadband market to date is mainly based on Digital Subscriber Line (DSL) technology
providing best effort speed of up to one Mbps. Meanwhile, South Korea and Japan are increasingly
in the process of implementing fibre-based connections that offer superior bandwidth of up to 90
Mbps.
50
42
40
Growth (%)
30
30 28 27
22 20 20 19 18
20
14 12
10
0
a
ne
ay
ia
es
la
ia
yp
te
ec
si
is
ue
s
na
in
gu
ai
ne
ay
ira
Eg
n
re
pp
kr
z
et
Tu
ru
al
do
ne
G
Em
U
Vi
ili
M
U
In
Ve
Ph
ab
Ar
d
te
ni
U
0 5 10 15 20 25 30 35
56
Asia-Pacific Broadband Penetration by Household 2Q 2007
Singapore 78.0
Taiwan 63.0
Australia 60.9
Japan 56.4
China 16.0
*Malaysia 15.5
Thailand 3.8
Philippines 3.3
India 1.1
Indonesia 0.4
0 10 20 30 40 50 60 70 80 90 100
Specifically, the Klang Valley Broadband Plan (KVB90) targets a 90% penetration in the relatively
affluent and highly populated Klang Valley area that is home to 6.4 million people. In terms of
demand jump start, the e-government plan started some years ago as initiatives published in the
national Budgets of the last two years. Another e-government initiative on full steam is the e-KL
project launched in 2007 to increase the government online services to the public from 400 today
to 5,000 in 2010. Public service delivery through the Internet is also available via wireless mode,
interactive voice response system via the phone and mobile web. The project also covers Kuala
Lumpur, Shah Alam, Petaling Jaya and Putrajaya in the stretch of area from Hulu Langat in the
northern part of the Klang Valley to Nilai in Negeri Sembilan.
The government has made plans to provide fibre connection in the longer term. The government
and TM are working out a public-private initiative announced in September 2007 to roll out high-
speed broadband services across the country. The target is to cover 2.27 million premises, with
investments to cost about RM15.2 billion (USD4.46 billion) over 10 years which includes the cost
of ‘last-mile’ fibre, core network and improvements to international connectivity. In a separate
initiative by TM, the group is working to institute an IP next generation network to launch new IP
services and upgrade the old.
57
Wireless Fidelity (Wi-Fi) Hotspots
In 2007, wireless hotspots number 1,485 in Malaysia. This is an 9% increase from 2006 at 1,358
hotspots. Hotspots are usually located at high population concentration area in urban, affluent
areas, and in the heartland for industry and commerce. Hotspots are concentrated in Selangor and
Kuala Lumpur, which collectively have about 25% of total hotspot locations throughout Malaysia.
Johore
Kedah Kelantan
5.5%
3.8% 2.5%
W.P. Putrajaya
0.7% Malacca
2.8%
W.P. Labuan Negeri Sembilan
0.7% 2.4%
Sarawak Penang
5.3% 8.1%
Sabah Perak
2.8% 7.5%
400
356
352
352
319
Number of Hotspots
300
200
120
111
94
94
88
88
100
81
80
79
79
75
75
58
56
43
41
44
43
44
42
37
39
36
37
36
35
34
31
31
30
30
24
20
13
11
10
11
9
9
2
0
0
0
r
re
ah
ak
an
a
n
k
n
ng
ng
pu
go
rli
ay
ra
cc
an
ba
ta
la
ho
bu
d
ha
na
Pe
bi
Pe
an
an
aj
Sa
Ke
gg
ra
al
Jo
em
La
Pa
Pe
Lu
tr
l
Sa
n
M
Ke
Se
Pu
re
iS
.
la
.P
Te
.
er
.P
Ku
W
eg
.
N
.P
58
Selected Hotspot Services
TM Net Hotspot Streamyx package RM15-RM18 Up to IEEE 802.11b Kuala Lumpur, Selangor,
384Kbps Wi-Fi Card Putrajaya, Johore,
Malacca, Penang, Kedah,
1515 package RM20-RM25 Sarawak, Negeri Sembilan,
Terengganu, Kelantan,
prepaid package RM5-RM28 Sabah, Pahang, W.P. Labuan
Airzed Hotspots 1 year unlimited RM139.99 Up to 11Mbps IEEE 802.11b Selangor, Kuala Lumpur,
access plan Wi-Fi Card Malacca, Pahang, Perak
Penang, Johore.
3 month unlimited RM39.99
access plan
90 days RM50
1 day RM16
1 week RM25
According to IDC Asia-Pacific, there would be an opportunity for co-operation and team up between
mobile operators, such as Maxis and DiGi, and WiMAX operators to offer dual mode services carrier
option for a successful domestic WiMAX rollout in Malaysia, as some of the existing mobile operators
have done WiMAX and pre-WiMAX technology trials. WiMAX in the future is expected to provide
broadband coverage to non-urban areas and areas that are not currently covered by broadband
technologies.
59
WiMAX Networks by Operator, Selected Countries*
United States Horizon Wi-Com 2300MHz Jun-07 Mobile WiMAX being Boston; New York; Philadelphia;
deployed Washington, DC; Baltimore;
Pittsburgh; Buffalo, NY;
Richmond, VA; and Cincinnati.
Quad Cities 2500MHz 2007 WiMAX being Western Illinois and Eastern Iowa
Online deployed quad-city.
Sprint Nextel 2500MHz Sep-07 Mobile WiMAX being Working together with Motorola,
deployed Nokia and Samsung to reach
population coverage of 100
million.
Saudi Arabia Saudi Telecom 3500MHz Mar-07 WiMAX being Deployed in Riyadh, Jeddah and
Company deployed Dammam.
India Bharti Airtel 3300MHz Feb-07 WiMAX in service Offer broadband data services for
SMEs in eight cities.
Canada Comcentric n.a. Mar-07 WiMAX in service Businesses and residents in the
Networking areas surrounding Stratford and
Lucan.
* As at 2Q 2007
n.a. - not available
Source: Informa Telecoms & Media, Companies website, SKMM
Fig. 4.20 WiMAX Networks by Operator, Selected Countries
60
Broadband Packages from Mobile Operators
Maxis wireless broadband started in 2006. This is a wireless Internet connection offering speeds of
up to 3.6Mbps using High Speed Downlink Packet Access (HSPDA), commonly referred to as a 3.5G
technology. There are no additional requirements for the user except for a high-speed modem and
a 017 SIM card.
No fixed line service is required. The connection is made to the Internet on the user’s desktop PC/
notebook via a wireless modem that uses a 017 SIM card. Wireless Broadband service is restricted
to areas within Maxis High-Speed 3G Network (HSDPA). Charges are up to RM98 per month,
including modem.
Celcom launched high-speed data connection services in August 2007. The wireless broadband
service comes in two plans, that is, Daily Unlimited and Monthly Unlimited. The packages are
structured to provide flexibility and full mobility to users. Laptop and notebook users only require a
USB modem, datacard or their 3G enabled phones as a modem to enjoy instant connectivity.
2. i-Talk 2000 Prepaid calling card for making National Call to Fixed - RM0.18/minute
and International calls (can also be used Call to Mobile - RM0.25/minute
to access Internet). This service was to
be phased out in 2007.
3. i-Talk with mobile May 2006 Prepaid calling card for making National Access via 1-800-87-3535:-
and International calls (can be used to Call to Fixed - RM0.12/minute
access Internet too) with missed call Call to Mobile - RM0.15/minute
back features.
Access via 1-800-87-3636 (call back):-
Call to Fixed - RM0.20/minute
Call to Mobile - RM0.25/minute
4. i-Talk Buddy 2007 Offering in 2007:- - PC to off net call will follow current
Instant Messaging iTalk rates
PC to off net call - RM3 to purchase 100 Mojikan
Moji Dollars
Community Portal - Purchase items for Moji
Nearby Services (Without Internet) - RM2 per month for Premium
- Screen Sharing Services (screen share, screen
- Instant Messaging control and unlimited Internet
- Internet Sharing sharing) three months trial starting
- Files and Folder Sharing November 2007
- PC calling - RM2 per month to keep Moji alive
Source: Industry
Fig. 4.22 VoIP Service and Packages
61
PICTURE
Chapter 5
Mobile Services
CELLULAR MOBILE PHONE CONNECTIONS
In 2006, the penetration rate decreased from 74.1% in 2005 to 72.3% in 2006 due to a rationalisation
exercise carried out in the year to ensure legitimate subscribers under the mandatory prepaid
registration exercise. At 2007, the mobile phone penetration rate is 85.1%, translating into 23.3
million subscribers.
90 85.1
80
74.1
70 72.3
Penetration rate (%)
60
50 56.5
40
30 43.9
20 36.9
10 30.8
0 21.8
11.4 12
9.7
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Although the number of subscribers increased from year to year, the percentage increase or growth
trend is more erratic. In the period from 2001 to 2005, the mobile subscriber growth rate ranged
from high rates of between 47% and 34.5%. There was zero growth in the year 2006 in view of
the prepaid rationalisation exercise. In 2007, there is again growth and to 19.5% (not adjusted for
SIM cards in duplicate names across the mobile players, nor the level of inactive subscribers due for
termination of services).
63
Cellular Mobile Subscribers Cellular Mobile Subscribers Growth
(2000-2007) (2000-2007)
25 50 47.0
23.3
19.5 19.5
20 40
No. of Subscribers
34.5
31.8
Growth (%)
14.5
(million)
15 30
24.0
11.0
9.3 19.5
18.3
10 20
7.5
5.1
5 10
0.4
0 0
2000 2001 2002 2003 2004 2005 2006 2007 2001 2002 2003 2004 2005 2006 2007
Overall, cellular demand is expected to continue growth at a more sustainable rate amidst introduction
of new technologies and enhanced services offering higher speeds and better connection times.
Wider applications in the market are expected to continue, with the latest from the Blackberry
smartphones offering Internet connections and e-mail services for both the corporate and individual
users. Celcom’s Blackberry Internet service is an extension to its Blackberry Enterprise Server, which
was launched in September 2006. In August 2007, Maxis launched the company’s new Blackberry
Curve smartphone, targeted at entry-level users for e-mail, online chat and web surfing.
20 3.9
2.9 3.4
15
2.6
10 2.5 19.4
3 16.6 16.1
3.1 11.9
5 8.5
2.6
6.3
4.4
2.5
0
2000 2001 2002 2003 2004 2005 2006 2007
Prepaid Post-paid
64
The prepaid market segment has posted relatively strong growth rates over the years from 2001 to
2005 – ranging from 76% to 39.5%. In 2001, the post-paid markets posted growth of 19.2%. In
2006, the prepaid market declined by 3% while post-paid market grew 17.2%. The likely reasons
for the trend switch are the spillover impact from the prepaid registration exercise in 2006 and the
repackaging of post-paid plans that may be more attractive compared to prepaid offerings, including
the introduction of post-paid packages such as Blackberry smartphones of late.
80 76.0
Growth (%)
60
43.2 40.0 39.5
40 34.9
19.2 20.5
17.2
20 11.5
14.7
4.0
-3.2 -3.0
0
2001 2002 2003 2004 2005 2006 2007
-20 -16.7
-40
Post-paid Prepaid
8
7.2
Celcom
6.9
7 6.4 30.85%
6.1
(million)
6
6
5.3 5.2
4.8
5 4.5 4.4
4
3.2
3
2.2
2
0
Maxis DiGi Celcom
Maxis
2003 2004 2005 2006 2007 41.63%
65
Cellular Mobile Phone Developments
The cellular network evolved from a monopoly market, to duopoly and then to an oligopoly market
that it is today. In the early 1990s, the cellular mobile market in Malaysia was shared by seven
cellular operators providing eight different cellular services nationwide. By the year 2003, the
number of players in the market consolidated to three, namely, Maxis, DiGi and Celcom.
Telekom Cellular
TM Touch merged with
Celcom
Celcom
Celcom
MobiKom
DiGi DiGi.Com
Maxis
TIMECel merged with
Maxis
Maxis
Time
There are five applications that are available for mobile which are GSM/GPRS, GSM/EDGE, W-LAN,
3G and HSDPA. Overall, the types of technologies for mobile services have increased, along with
the bandwidth for mobile services as Malaysian operators spot a wide range of various products and
services offered to a myriad range of customers and usage patterns.
In 2007, GSM/GPRS speed range (downlink) is up to 60Kbps. For GSM/EDGE, the application speeds
are up to 384Kbps. GSM together with other technologies is part of the evolution of wireless mobile
telecommunications that includes High-Speed Circuit-Switched Data (HCSD), General Packet Radio
System (GPRS), Enhanced Data GSM Environment (EDGE), and Universal Mobile Telecommunications
Service (UMTS).
66
W-LAN is one in which a mobile user can connect to a Local Area Network (LAN) through a wireless
connection. The speed range is up to 2Mbps. For 3G applications, the speed range (downlink) is
384kbps and for HSDPA the speed is up to 3.6Mbps.
Number of Subscriptions
GSM/GPRS 9.6Kbps <60Kbps 80
60.3
GSM/EDGE n.a. <384Kbps 60
(‘000)
W-LAN n.a. 2Mbps6 40
20
3G n.a. 384Kbps
4.5
0
HSDPA n.a. 3.6Mbps 2006 2007
Domestic mobile growth is slowing in Malaysia as the market reaches maturity. The enforced
registration of all prepaid SIM cards has also impacted growth in the short term. This creates a
healthier market with many inactive customers failing to register being disconnected.
Business Monitor International (BMI) projects moderate growth for the Malaysia market, with some
27 million mobile subscribers by the end of 2011 accounting for a penetration of just under 100%.
Malaysia is expected to have more than five million 3G mobile subscribers by the end of a five-year
forecast period from 2008 to 2012. This represents about one in five of all cellular subscribers at
that time. At end 2007, there are 1.56 million 3G subscribers in Malaysia.
In terms of mobile investment, the Malaysian government has incentives operators through its
recently announced and attractive corporation tax cuts to 26% in 2008 (2007: cut 1% to 27%
from 28% in 2006). Inward investments are deemed as important to Malaysia’s telecoms market.
To date, Malaysia features a highly competitive telecoms market, with incumbent operators facing
more pressure from alternative providers in the fixed-line and broadband markets. The domestic
mobile market remains competitive, and this is expected to intensify further with the introduction of
mobile number portability (MNP), providing more good news for the consumer from improvement
of quality of service to better customer relationship management from operators.
MNP is expected to promote healthy competition in the mobile services sector. Thereby, this is
expected to facilitate better consumer choice, improve service quality, lower prices and introduce
innovative service offerings in the market.
The speed is based on ADSL back-haul. Downlink speed is shared by multiple users.
6
67
Timing for MNP
SKMM is of the view that market conditions needs to be right for the introduction of MNP. This is
indeed the case in Malaysia today, where the mobile market is fairly mature wherein the MNP can
provide further boost in enhancing competitiveness within the sector. In addition, there are two
more 3G operators joining the fray, the emergent MVNO environment and the steady growth in
mobile subscribers.
Subsequently, the SKMM undertook a study on the viability of and method for the implementation
of MNP in Malaysia. This took into consideration implications and impact on the industry, the mobile
service providers and consumers. Simultaneously, SKMM carried out a public inquiry7 (PI) on
the implementation of MNP, effectively to obtain industry comments on various issues including
determining the most effective way of implementing mobile number portability in the country.
Source: SKMM
Fig. 5.10 Phases of Implementation of MNP in Malaysia
Enabled SKMM to identify preferred technical solution and method of operation for the clearinghouse as
follows:
- a centralised clearinghouse to function as a reference database and order processing engine;
- All-Call-Query (ACQ) routing facility whereby each Service Provider will set up its own mirror-database to
determine the latest porting status of the party being called; and
- an independent third party will be appointed to build, operate and manage the MNP clearinghouse.
7
Public Inquiry is the first step to address the best method of implementing MNP in this case, and establishing rules and
guidelines for its implementation framework and timeline.
68
SKMM also conducted a review on the existing regulatory framework to manage the following:
The review was tasked to an internal Regulatory Review Task Force. The Task Force assessed
various issues, including the introduction of relevant regulatory instruments/documents such as
MNP in Numbering and Electronic Addressing Plan, Numbering Regulations, various guidelines and
other relevant instruments which are essential for the implementation of MNP. This SKMM Task
Force worked closely with the industry task force on regulatory review and compared notes when
necessary to ensure the relevant issues were addressed in proposing the regulatory framework for
MNP.
Industry Engagement
The recognition for constructive engagement with the industry saw the establishment of the Mobile
Number Portability Steering Committee (MNPSC). The Committee is chaired by the Chairman of
SKMM with members consisting of the captains of industry. It is within the MNPSC that high level
decisions in relation to the implementation of MNP are made.
Under the MNPSC, various working groups such as the Industry Working Group on MNP (IWG),
Technical Sub-Committee, Commercial Sub-Committee, Consumer Awareness Sub-Committee and
a few select industry task forces were set up to carry out the specific tasks outlined in the plan for
MNP implementation.
It is to be acknowledged that active participation and cooperation of the industry, coupled with the
government policy impetus that have provided the path towards a successful implementation of
MNP in Malaysia so far.
The countries which have implemented MNP include Hong Kong, UK, US, Australia, South Korea and
Taiwan.
69
NATIONWIDE MOBILE COVERAGE
Time 1 covers the areas of Putrajaya, Cyberjaya, Kuala Lumpur, Kuala Lumpur International
Airport (KLIA); and Protocol route – main route connecting Kuala Lumpur to Putrajaya until KLIA.
Meanwhile, Time 2 covers nationwide with focus on four main areas, that is, tourist spots, industrial
areas, major highways and major cities/towns.
With these initiatives, national population coverage has achieved 92%, a 10% improvement from
82% during Project Time 1 & Time 2 inception in 2004. The status of Project Time 2 as of 31
December 2007 is as shown in Figure 5.12.
Stage of Completion
LCN* Balance to be
State (Number of sites and
Issued completed
percentage)
Pahang 135 135 (100%) -
Johore 111 111 (100%) -
Sabah 105 105 (100%) -
Kelantan 72 72 (100%) -
Kedah 85 85 (100%) -
Terengganu 52 52 (100%) -
Perak 40 40 (100%) -
Sarawak 119 116 (97%) 3
Selangor 56 51 (91%) 5
Negeri Sembilan 64 58 (91%) 6
Malacca 42 38 (90%) 4
Penang 24 17 (71%) 7
Perlis 6 4 (67%) 2
Total 911 884 (97%) 27
*LCN – Location Criteria Notice
Source: Industry, SKMM
Fig. 5.13 Time 2 Programme – Progress Report by State
70
Time 2 Programme – Progress Report by Celco
(as of 31 December 2007)
Stage of Completion
LCN*
Celco (Number of sites and
Issued
percentage)
Target completion for these sites is by end of first quarter 2008. The site distribution and progress
by state as of 31 December 2007 is as shown in Figure 5.15.
Current
LCN* Completed
Completion
Issued (Number of sites)
(%)
SBC** 297 123 41
Celco 33 11 33
Total 330 134 41
* LCN – Location Criteria Notice
** SBC – State-backed company
Source: Industry, SKMM
Fig. 5.15 Time 2 Expansion – Progress Report
71
Based on the stated criteria, the Project Director recommended Touch Matrix Sdn Bhd, a state-backed
company for Pahang as the Best State-Backed Company award winner while Celcom (M) Berhad
took the Best Celco award. The respective trophies were presented to the winners on 26 October
2007 in conjunction with the USP East – West Highway Project Launching in Dewan Serbaguna,
Majlis Daerah Gerik, Perak.
72
Way Forward
The government will continue to enhance the cellular coverage nationwide with a new programme
currently in the planning stage. Information on areas experiencing blind spot and dropped call
incidences are sought from industry players and the public at large.
New target areas proposed to be covered in the new programme are as follows:
i. suburb areas;
ii. rural communities/indigenous settlements; and
iii. additional tourist spots.
This new project is expected to boost population coverage across the nation to the highest possible,
given the terrain and demographic challenges.
Source: KTAK
Fig. 5.19 Blind Spots and Dropped Calls Report
73
PICTURE
Chapter 6
Broadcast Services
DEVELOPMENT OF BROADCAST IN MALAYSIA
Satellite Pay-TV
Direct-To-Home (DTH) TV started in 1990, offered by ASTRO. Today, ASTRO offers more than
100 pay-TV channels. With the successful launch of MEASAT-3 in late 2006, ASTRO is tailoring
their services to cater to customers’ increasingly diverse viewing preferences. As a result, in June
2007, ASTRO offered Malaysia’s first Near Video On Demand (NVOD) TV service, that is, ASTRO On
Demand, airing the latest Hong Kong dramas.
High Definition TV
TV viewing experience for consumers is about to take another leap ahead with digital technology
permitting High Definition TV (HDTV) content, wide screen displays, more platforms for content,
greater levels of interactivity, improved picture and sound quality; and even the introduction of new
players in the broadcast scene.
RTM undertook the first trial for FTA Digital Terrestrial TV (DTT) in June 2006 until March 2007 with
2,000 viewers. The second phase started in April 2007 and will end in 2009. The trials are being
conducted in the Klang Valley area and involves the current two TV channels under RTM. There is
also an interactive mode and music archives. RTM carried out a trial channel on the sports section in
November 2007. The roll out for commercial digital TV is expected by end 2008 and the standard
set-top box on commercial launch is expected to be HD ready. Malaysia has planned for digital
switchover by 2015.
75
Media Prima trialed its on demand 3G Mobile TV services on Maxis network in late 2007. Maxis 3G
subscribers are able to watch selected highlights of their favourite TV programmes from TV3, NTV7,
8TV and TV9 on their 3G mobile phones and also watch a real-time view of the HotFM radio studio
with their deejays in action. To use the service, Maxis 3G users will have to make a video call to a
premium number and navigate by following the interactive menu. The normal video call rate of 30
sen per minute is applied when the video call is made.
In September 2007, Media Prima launched Catch-Up online TV service on the website of TV3, NTV7,
8TV and TV9, which offers Malaysians to watch selected programmes on the website within 12 hours
after the programme has been broadcast on TV.
FTA TV Revenue
RTM is keeping up to the constant change in broadcast and communications technology. Starting
2008 and until 2009, RTM is accelerating coverage for those areas covered with analogue TV.
Therefore, 15 areas have been identified in the first phase and 10 other areas in the second phase.
Meanwhile, Media Prima TV networks command an overall share of an average 53% of TV ratings
throughout the year 2007.
2,000 35
30.9
1,800 1,798.1
30
1,600
1,477.7
25
1,400 1,300.7 1,309.9
21.7
RM(million)
Growth %
1,200
20
993.8
1,000 921.9
12.8 15
800
600 7.8 10
400 5.0
5
200
0.7
0 0
Advertising remains one of the most important sources of revenue for broadcasting companies. In
2007, FTA TV companies raked in RM1.8 billion worth of advertising revenues. Out of this, TV3 has
consistently remained the highest revenue generator since 2004 followed by sister channel NTV7 at
RM773.8 million and RM317.2 million respectively in 2007.
76
FTA TV Advertising Revenue 2004-2007
900
793.8
800
672
700
565.1
565.3
600
RM(million)
500
385.7
335.6
331.9
400
293.7
280.4
225.7
215.9
300
188.6
174.7
154.1
141.1
136.2
133.6
200
70.5
54.4
52.8
40.9
100
26.6
46
1.8
0
RTM1 RTM2 TV3 NTV7 TV9 8TV
From the period of 2004 until 2007, growth of advertising revenue in almost all channels reached
double digit levels. Since its debut in January 2004, 8TV posted the highest growth in 2005 at
58.5%, which might be due to its targeting urban youth and Chinese audiences. Furthermore, 8TV
offers high quality foreign programmes and unique local content.
Radio Development
On radio development, the radio advertising revenue growth reaped in 2007 was at 24.7%, translating
to RM241.1 million. ASTRO leads in the commercial radio sector. ASTRO radio operations benefited
from further growth in market demand for radio advertising according to the latest Nielsen Media
Survey Sweep in September 2007. This also confirmed their leadership position for commercial
radio.
77
Radio Revenue
AMP of ASTRO operates and manages eight radio stations and is Malaysia’s largest radio broadcaster.
Except for THR, all the other radio stations broadcast nationally and reach 10.6 million listeners each
week, with impact of four number one stations in its language channels, that is, Malay, Chinese,
English and Tamil8. Meanwhile, Star RFM radio channels have been broadcasting information through
their radio airwaves on the Kuala Lumpur (KL) Monorail and major supermarkets. Further, Red FM
radio is currently creating a User Generated Radio (UGR) platform for campus radio in collaboration
with local universities.
300 30
24.7 25
250
20.4 241.1
200 193.3 20
18.0
Growth (%)
RM(million)
178.2
168.8
152.5
150 144.1 15
119.7
10.7
100 8.5 10
5.8 5.6
50 5
0 0
2001 2002 2003 2004 2005 2006 2007
28.2
28.2 Media Prima
12%
28.0
RTM
7%
RM(million)
27.8
Star RFM
27.6 13%
27.4
27.4
27.2
AMP
27.0 68%
1999 2000
78
A comparison of the respective 1999/2000 and 2006 periods shows the development of radio stations
market share in terms of advertising revenue in Malaysia when the CMA was first introduced until
the current situation. In the period of 1999/2000, only RTM stations were hitting the airwaves.
When other operators joined in after the year 2000, the slice of the pie was invariably competitively
challenged.
7 6.6
6
5.3
5.0 4.8 5.0
5 4.7
RM(million)
4.4 4.4
4.2
4
3.4
3.1
3
2.1
2
4)
)
5)
6)
ak
an
na
ik
ba
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uz
S
S
io
Sa
ra
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RM
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Sa
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M
FM
FM
io
na
(R
lF
in
Ra
Ai
na
FM
ax
M
io
Tr
ik
as
uz
N
1999 2000
M
50 46.9
45
40
35.3
35
RM(million)
30 28.4
25 22.9 22.8
19.7
20 17.9
15
10.1
10 8.6 7.8 7.8
5 2.5 2.7 2.9
0.9 0.8 1.6
0.6 0.3 0.6
0
4)
FM
FM
FM
FM
88
FM
FM
5)
6)
r)
FM
FM
FM
)
KL
ik
TM
4.
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go
i9
uz
R.
S
S
10
a
sy
ix
al
ot
h
itz
(R
S
S’
M
na
Er
Fl
es
M
TH
d
M
on
M
H
Ea
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(R
(R
H
Re
al
S
Si
r
(R
S
Re
Xf
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as
on
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&
FM
FM
(R
FM
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N
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t
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ik
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KL
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as
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uz
O
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79
Media Prima’s Hot FM has secured itself as the number two Malay radio station after its debut in
February 2006 with almost four million listeners weekly. Era FM continues its reign as the number
one radio network and number one Malay radio station in the country with a listenership base of 5.2
million9. Meanwhile, My FM and Hitz.fm stations retained their positions as Malaysia’s number one
Chinese and English language station respectively in the country.
Media Prima plans for 2008 are to focus on local content development and supplying specialised
content to other service providers such as the telcos and broadcasters. Following the successful
launch of their online portal, they intend to strengthen their new media platform by providing top
rated programmes online.
RTM’s interactive web portal or known as BES online allows audience to capture information on their
favourite RTM shows, either on TV or radio.
Apart from TV1, TV2 and radio channels, the web page also allows viewers to watch ‘Berita TV’ for
latest developments on local and global news through live streaming TV and radio.
40 37.1
34.5
30
31.1
30 27.9
23.3
Rate (%)
25
20
15
7.5 8.1
10 6.1 6.8
5.1
5
0
FY 2004 FY 2005 FY 2006 FY 2007 3Q FY 2008*
9
Nielsen Media Research, Radio Audience Measurement, Sweep #2, 2007
80
ASTRO Subcribers and Churn Rate
(FY 2005 to 3Q FY 2008)
3,000 16
13.4 14
No. of Subscribers (‘000)
2,500
12
2,000 9.9
Churn (%)
9.0 10
8.8
1,500 8
2,404
2,201 6
1,000 1,941
1,698
4
500
2
0 0
FY 2005 FY 2006 FY 2007 3Q FY 2008*
* February-October 2007
Source: Industry, SKMM
Fig. 6.9 ASTRO Subscribers and Churn Rate
1,000
904
900
789
800 749
9.0
600
(RM)
500
400
300
200
100
0
FY 2004 FY 2005 FY 2006 FY 2007 3Q FY 2008**
DTH Developments
The sole DTH provider in Malaysia reached a two million TV subscriber base at the close of the 2007
financial year posting a growth of 8.8% from the same period in 2006. In 2007, ASTRO announced
a DTH satellite TV venture with Sun Group in India to capture the fast growing Indian consumer
market.
Another overseas collaboration was in China, where the group launched an airtime marketing venture
focusing on radio syndication. In content development, ASTRO launched the ASTRO Entertainment
Network, a collection of over 20 TV channels with locally-packaged proprietary content for broadcast
on the ASTRO platforms in Asia.
81
PICTURE
Chapter 7
Postal Services
POSTAL SERVICES
The postal services could be defined as a system of delivering mail whether by land, or sea, or
by air and performing all the incidental services of receiving, collecting, sending, dispatching and
delivering all letters sent. This means that any form of written communication that is directed to a
specific person or specific address other than electronic means of communication.
SKMM as the regulator for postal services in Malaysia took over this function from the Postal
Department on 1st November 2001. The role of SKMM in respect of postal sector is to exercise
regulatory functions including universal service obligations and to promote competition and
the interest of users of postal services in terms of prices, quality, and continuity. This is also to
promote and encourage the expansion of postal services towards economic development. SKMM
also regulates rates, fees and commissions, monitors performance of postal financial services and
issuance of postage stamps.
Year
1992 Postal services corporatised
1998 Communications and Multimedia Act (CMA)
2002 Pos Malaysia & Services Holdings Berhad listed on the local stock exchange
2003 Restructured its entire operations unit into four specific Strategic Business Units (SBU)
consisting of PosMel, PosLaju, PosNiaga and PosLogistik
2004 Plans to acquire a 20.3% stake in Transmile Group Bhd for RM253.1 million
2005 Added to Morgan Stanley Capital International Inc.’s global index
Announces Voluntary Separation Scheme
Khazanah Nasional raised stake to 17.4%
2006 Strategic alliance with e-pay (M) Sdn Bhd to sell prepaid at post offices
Introduces PosPay, i.e., channel for Internet and mobile commerce services
New Chairman appointed
2007 Changed name to Pos Malaysia Berhad. Announces restructuring.
Malaysia recorded an average of 45 letter post items posted per inhabitant in 2006. This is considered
low compared to the developed countries as indicated in the table. Besides delivering letters, Pos
Malaysia also provides other services such as road tax renewal, zakat payment, purchase or renewal
of motor vehicle insurance and payment of utilities bills.
83
Country-Average No. of Letter Post Items Posted per Inhabitant
PHILATELY
Philately can be described as the collecting and arranging of postal material, that is, postage
stamps, postal routes, letters, covers and other materials. For the year 2007, there were 17 issues
of commemorative and special stamps approved by the Stamp Application Committee for issuance
by Pos Malaysia. In contrast, there were about the same number of new issues in 2006.
Date of Issue in
Theme
2007
84
Revenue versus Staff Average Revenue per Staff*
70
900 15,000 63
14,780
800 14,628
822 60
14,383 787 14,500 53
14,338
700 14,312
694 47
50 45
44 45
600 635 645 648 14,000
RM(million)
No. of Staff
RM(‘000)
500 40
13,500
400
30
300 12,967 13,000
200 20
12,500
100
10
0 12,000
2001 2002 2003 2004 2005 2006
0
Source: Industry, Universal Postal Union, SKMM * Average revenue per staff is calculated by dividing revenue by
Fig. 7.4 Revenues versus Staff 2001-2006 number of staff
Source: Industry, Universal Postal Union, SKMM
Fig. 7.5 Average Revenue per Staff
Revenue and number of staff is observed to have been on an uptrend through the years from 2001
to 2005. However, the company’s first ever Voluntary Separation Scheme (VSS) introduced in
September 2005 saw head count reducing by 1,356. Effectively, measurement of revenue per staff
in 2006 was RM63,000 compared to RM43,000 in 2004 before the VSS.
DIRECT MAIL
In most countries, direct mail is divided into addressed mail and unaddressed mail. Addressed mail
is obviously individually addressed; sent to customers from a database or address list. Unaddressed
mail has no specific address but it is targeted to customers in a specific geographical area with the
objective to gain prospective customers.
Malaysia just entered this arena compared to USA. With more than 80% of the direct mail market
from USA and mature markets; there are still expectations of potential growth in developing
countries. Increase in direct mail activities also promote the growth of many other traditional and
value-added postal products and services including letters, parcels, logistics and financial services.
85
Selected Countries for Total Number of Advertising Items – Domestic
(2005-2006)
102.5
101
12
Advertising Items (billion)
10
8
6.89
6.7
6
3.76
3.72
3.9
3.43
2.44
2.34
1.86
1.56
1.5
1.21
1.16
2
1.12
1.4
1.3
0.69
0.67
0.71
0.66
0.49
0.5
0.16
0.05
0.08
0
SA
ly
ia
nd
ia
an
ar
ad
re
al
s
la
U
ay
It
m
Ko
tr
m
er
Ca
al
en
er
Au
itz
M
G
Sw
Addressed-2005 Unaddressed-2005 Addressed-2006 Unaddressed-2006
Korea Italy
Canada
2% 2%
4%
Germany
8% Denmark
1%
Australia
1%
USA
81%
86
Asset and Fleet Size
50,000 3,000
40,000
2,000 1,364
30,000 1,274 1,339 1,347 1,240 1,219
1,139
20,000 1,000
4,716 4,682 4,726 4,699 5,169 4,919 4,991
10,000 0
2000 2001 2002 2003 2004 2005 2006 2000 2001 2002 2003 2004 2005 2006
0
Source: Industry, Universal Postal Union, SKMM Source: Industry, Universal Postal Union, SKMM
Fig. 7.8 Number of Boxes and Post Office Boxes Fig. 7.9 Number of Motorcycles, Trucks and Automobiles
In Malaysia, the hybrid mail is operated by Datapos (M) Sdn Bhd, a subsidiary of Pos Malaysia
Berhad. It is responsible for the entire production and processing of the company’s mail right from
designing to printing and delivery.
Recipient
Delivering Office
Transport
Transport
Outgoing Sorting
Incoming Sorting
Hybrid
Traditional Mail
Mail
Process
Transport Center Incoming
Sorting
Post Office
Hardcopy in Printing Center
closest to Recipient Sender
Source: http://postalautomation.elsag.it/HybridMail.htm
Fig. 7.10 Traditional versus Hybrid Mail
87
LOGISTIC SERVICES
According to the Universal Postal Union, about 28% of the countries in the world offer logistics
services.
In Malaysia, PosLogistik is a Strategic Business Unit (SBU) of Pos Malaysia and a relatively new
entrant in the logistics and distribution industry. With the acquisition of 20.3% stake in air freight
services provider Transmile, Pos Malaysia extended its services to provide logistics services. Its
main strategy is to offer comprehensive logistics services solutions via land, sea and air together
with support from its warehouse and distributions network.
With the support of the largest existing network of post offices in the country from its holding
company, augmented by its own fleet of vehicles and air transportation network, PosLogistik is well-
positioned to leverage on a wide customer reach. PosLogistik caters for the needs of the market as
highlighted below:
88
MODERNISATION OF POS MALAYSIA SERVICES
Some of the key factors towards enhancement of Pos Malaysia services are the processes of
modernisation, acquisitions, including VSS.
The process of modernisation has been taking place in the last few years. In 2005, the VSS
carried out by Pos Malaysia also increased the efficiency factors of the overall performance of the
organisation.
In addition, Pos Malaysia has been exploring new market segments, for example, hybrid mails, direct
mail and adoption of new business model for revenue creation such as online Internet services in
terms of track and trace information on tariffs, postcode look-up, sale of philatelic products and
e-mail service.
89
PICTURE
Chapter 8
Courier Services
COURIER BUSINESS IS HIGHLY COMPETITIVE
Unlike the postal service which is provided by a sole incumbent, the courier industry is a highly
competitive sub-sector. As at end 2007, there are 109 courier licensees in Malaysia.
The number of courier licences declined 4.4% from 114 licences in 2006 to 109 licences in 2007.
This may be due to active market competition with competitive prices that may have caused less
effective courier companies to discontinue their operations. The natural attrition process is expected
to be well developed or efficient in this highly competitive market.
The top 10 players comprise overseas linked companies and home-grown Malaysian companies. The
major overseas linked companies are DHL, Federal Express (FedEx), United Parcel Services (UPS)
and TNT Express (TNT). For the local major companies, there are City Link Express (City Link),
Nationwide Express (Nationwide), GD Express, ABX Express, KTM Distribution and Cen Worldwide.
2001 115
2002 117
2003 110
2004 114
2005 112
2006 114
2007 109
Source: Industry, SKMM
Fig. 8.1 Number of Courier Licences
3.6
4
1.7 1.8
2
Percentage (%)
0
2002 2003 2004 2005 2006 2007
-2
-1.8
-4
-4.4
-6
-6.0
-8
Source: SKMM
Fig. 8.2 Courier Licences Growth 2002-2007
91
Top 10 Courier Provider by Revenue
2001-2006
450
426
416
400 FedEx*
384
370
350 342
331 337
300 294
289
RM(million)
250 291
DHL** 217
200 198
164 170
150 Cen Worldwide 141
128 129
113 115 114
UPS
100 101 101
83 City Link*** 81
76 73 71 72
67 69 64 66
57 60 62 63
50 40 52
TNT 43 39 40 40 52
38 GD Express
ABX 17 17 16 29 23
Express 12 13 18 18 21
11 12 14 16 16 KTM Distribution 16
0
2001 2002 2003 2004 2005 2006
* Revenue of FedEx group companies, namely Federal Express and Udara Express Courier Services Sdn Bhd
** Revenue of DHL group of companies, namely DHL Worldwide Express Sdn Bhd and DHL Air
*** Revenue of City Link group of companies, namely City Link Air Cargo, City Link Express and City Link Logistic
Source: Companies Annual Report
Fig. 8.3 Top 10 Courier Providers by Revenue 2001-2006
GD Express
RM52 million ABX Express
TNT RM23 million KTM Distribution
RM52 million RM16 million
Nationwide
RM66 million
Cen Worldwide#
RM140 million
UPS
RM170 million
DHL
RM416 million
# Estimate
Source: Companies Annual Report
Fig. 8.4 Top 10 Courier Provider by Revenue 2006
92
The courier industry continued to be one of the major contributors to the national economy, recording
a turnover of approximately RM1.4 billion as at end 200610 with 109 courier licences. With wide
global network the top 10 players still contribute to industry turnover at over 60% of total revenue.
Overseas linked companies dominate the sector with a combined turnover of over RM900 million.
1,600 16
14.66
1,400 1,354 14
1,200 1,181 12
1,074 1,100
1,049
RM(million)
(%)
800 8
7.32
600 6
400 4
2.44
200 2.38
2
0 0
2001 2002 2003 2004 2005 2006
16,000
13,625
13,225
12,974
14,000
No. of Courier (‘000)
12,000
8,278
10,000
6,194
8,000
4,152
6,000
3,866
3,766
3,083
2,139
4,000
1,823
1,482
2,000
0
2004 2005 2006
Documents-Domestic Documents-International
Parcel-Domestic Parcel-International
10
2006 data not available
93
PICTURE
Chapter 9
Digital Signature
DIGITAL SIGNATURE AND SKMM
Digital signature is a technology that has been changing the era of the traditional handwritten signature
as the Internet becomes pervasive in the Malaysian business environment. The emergence of this
technology was prompted by the need to ensure message integrity and authenticity particularly in
respect of identity, legal commitment to safeguard against third party interference and manipulation
of information.
Digital signature goes way beyond encryption - a process of scrambling text by mathematical formula
to make it unreadable by those who do not have the de-scrambling tool. Created through the use of
digital certificates, a digital signature not only caters for encryption of the message but also enables
user authentication, which assures that the user who sends the message is who he or she claims to
be through an accepted digital signature. A digital certificate is a computer based record which:
Digital certificates can be issued by Licensed Certification Authorities. The task of the Licensed
Certification Authorities is basically to take all reasonable measures to check for proper identification
of the subscriber to be listed in the certificate before issuing any certificate.
Private Key
Public Key
Public Key
+ =
User A (Sender)
Private Key
Public Key
= +
Private Key
User B (Receiver)
Source: SKMM
Fig. 9.1 Components of Digital Signature
95
A digital signature is made up of six components which are:
The role of the SKMM as a Regulator under the DSA is to oversee and regulate the operations of the
CAs, repositories, date/time stamping11 services in Malaysia. The SKMM is also empowered to ensure
that the licensed CAs and the recognised repositories and data/time service providers maintain a
high level of integrity and quality in rendering their services; and look into the determination and
coordination of the CA trust model and cross-certification policies with foreign CAs.
On the other hand, BNM which operates with limited licence functions as a CA issues digital
certificates within the environment under the Real Time Electronic Transfer of Funds and Securities
or RENTAS system. On top of that, BNM only provides services or addresses in respect of issues for
the Employees Provident Fund (EPF), Financial Institutions and Universal Brokers.
The attaching to message or digital signature or certificate of a digitally signed notation indicating at least the date, time and
11
96
Digital Signatures by Type
There are three categories of issuance of digital certificates. They are corporate, individual and
government. Each category is seen to be steadily increasing in number of digital certificates.
1,174,770
1,200,000
Number of Certificates
1,000,000
800,000
329,603
600,000
400,000
96,431
90,385
77,145
63,222
55,620
51,388
36,971
32,552
22,209
7,532
7,584
7,903
8,194
8,893
8,445
2,413
200,000
0
2002 2003 2004 2005 2006 2007*
* Preliminary data
Source: Industry, SKMM
Fig. 9.3 Digital Signatures by Type (2002-2007)
250
206.4
200
Percentage (%)
147.6
150
100
72.1
57.1
46.1
50
0
2003 2004 2005 2006 2007
97
There was an overall steady growth of digital certificates as measured by the number of issuances.
Growth increased 148% in 2006 from 2005. As at 2007, the number of digital certificates issued
overall has increased 206% from end year 2006. This was mainly due to the doubling in electronic
submission of Inland Revenue Board (IRB) forms.
As at 2007, the number of certificates issued to corporate users was 90,385 (2006: 77,145),
individuals at 8,445 (2006: 8,893), and government at 1,174,770 (2006: 329,603). The number of
digital signature certificates issued to corporate and government grew by 17% and 256% respectively
while certificates issued to individuals declined by 5%.
The latest development by the Malaysian government is the launching of the latest PKI application
for Government Multipurpose Card (MyKad) offering. With the linkages provided between PKI
facility via MyKad, the use of digital signatures is expected to be more pervasive in view of the large
base of individuals.
PKI is also in line with the government’s efforts to face global competition in the information
technology era with increasing Internet use replacing traditional ways of communicating and
conducting business worldwide.
98
PICTURE
PICTURE
Chapter 10
Consumer Protection
QUALITY OF SERVICE MANDATORY STANDARD (QoS MS)
The Mandatory Standards (MS) for Quality of Service (QoS) issued in 2002 and 2003 ensure
consumers receive minimum and acceptable quality of service standards. The QoS MS, require
compliance from service providers. It comprises seven services currently covered under the QoS
MS, as listed below:
The QoS MS requires service providers to submit reports every six months wherein they have to
report on compliance or non-compliance with the standards. SKMM will randomly or selectively
conduct audit on reports submitted by the service providers. Overall compliances to such reports
submission for the six months period ending 31 December 2006 are as follows:
Review of QoS MS
In the first half of 2007, SKMM initiated a review for the QoS MS for Broadband Access Service. This
involved several processes including a Public Inquiry and a revised Determination that was published
on 6 July 2007 and took effect on 1 January 2008. The changes made are to ensure consumers get
better quality of service from broadband access service providers and they include the following:
101
□ Reinforcement on network performance parameters:
● Exact location for installation of test server;
SKMM expects to conduct review of mandatory standards for QoS for Public Cellular Service and
Digital Leased Line Service in 2008.
RAS is a set of required applications that service providers must provide to their consumers. Section
192 of the CMA states that the list of RAS may include, but are not limited to, emergency, directory
assistance services, operator assistance services and services for disabled consumers.
With regards to emergency call services, the government on 15 May 2007 directed Telekom
Malaysia (TM) to handle all emergency calls with effect from 1 January 2008. There shall be only
one emergency number, which is 999, with effect from 1 January 2008. Both requirements were
accomplished on 1 October 2007.
The current objective is to improve overall emergency call services, where information conveyed to
dispatch centres will besides voice also include data. This will reduce time for call handling and will
benefit people requiring emergency assistance. Central region, which includes Selangor and Kuala
Lumpur, will be the first to get the improved system, and it is expected to be ready for service from
1 July 2008.
Crank calls are one of the major issues faced by 999 emergency call centres. Statistics from 1–31
October 2007 revealed that 97.8% of calls to 999 emergency call centres were crank calls. SKMM
has received reports from TM and the Fire and Rescue Department against crank callers. The first
batch of 23 suspects is currently under investigation by SKMM for offences under the CMA.
102
RATES MONITORING
Rates regulations generally cover the rules and principles used in rate setting. Rate monitoring on
the other hand will cover compliance by service providers to any rules and principles on market
rates and, in particular, the regulated rates set by the Minister.
Rate monitoring generally covers compliance to the CMA and the Communications and Multimedia
(Rates) Rules 2002 or Rates Rules 2002.
Section 197 of the CMA provides for rate setting by service providers and Section 198 provides for
the principles on rate setting.
1. Public Switched Telephone Network services – Charges for local call, national call and national
calls through operator assistance;
2. Public Payphone Service – Charges local call, national call and national calls through operator
assistance;
3. Service Charge for operator assistance;
4. Charge for Internet access service;
5. Charge for audiotext hosting service;
6. Rental on exchange line;
7. Connection fee; and
8. Reconnection fee.
A total of 2,147 complaints were received by SKMM in year 2007 as compared to 664 complaints
received in year 2006. This represents an increase of 223%. The large increase in the number of
complaints is possibly due to the publicity and advertisements made by SKMM in the mass media
on channels for registering complaints.
103
Complaints Received in 2007
500
405 401
400
No. of Complaints
300
254
238
200
150 154
117
109
96 88
100 80
55
0
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Month
Source: SKMM
Fig. 10.2 Complaints Received 2007
To strengthen its complaints monitoring and management, the “SKMM Complaints Bureau” was set
up in August 2007 to receive and handle the complaints directly from the consumer with regards
to communications and multimedia services. This is in addition to the complaints handling of
respective operators, the Consumer and Content Forums.
For year 2007, the most frequent categories of complaints received were:
• Poor services provided by a service provider, that is, service downtime/line interruption, slow
Internet speed;
• SMS mobile content services, that is, receiving unsolicited SMS, unable to stop the service;
• Billing dispute; and
• Cellular coverage and blind spot.
Regular meetings with the service providers concerned are held to discuss and address complaints
issues. The public celullar service providers have implemented a preventive system to address
issues relating to SMS mobile content and services. All public celullar service providers are now
providing online statement on usage for prepaid services.
104
CONTENT REGULATION: OVERVIEW OF COMPLAINTS RECEIVED
The total number of complaints received by the SKMM on content totalled 95 in 2007. The various
categories of complaints and the comparisons from previous years are shown in the following graphs.
Overall, the complaints in 2007 have increased over the last five years.
16 15
14
12
No. of Complaints
12
10 10
8 8 8
7
6 6 6
5
4 4
4
0
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Source: SKMM
Fig. 10.4 Number of Complaints Received by Month in 2007
105
Number of Complaints by Category Number of Complaints by Type
ASTRO
13 False/Misleading
Terrestrial TV Technical/Policy 10
19 2
Obscene
18
General TV
5
Internet
45 Radio False/Misleading
13 10
ENFORCEMENT
SKMM enforcement activities in 2007 have increased in light of the improved avenue for complaints
through various channels such as the SKMM Complaints Bureau. In the year, 352 cases were
investigated, 16 cases charged in Court and 54 cases were compounded. Total compound paid by
the offenders were RM1,130,500.
400 352
350
300
No. of Cases
250
200 155
129
150
100 54
42
12 16
50 6 7
0
2005 2006 2007
Source: SKMM
Fig. 10.7 Number of Cases 2005-2007
106
INDUSTRY SELF-REGULATION: INDUSTRY FORUMS
The CMA provides for industry self regulation in the form of forums in the respective areas of
Content, Consumer, Access and Technical Standards. Over the years these forums from setup till
today have improved, but further improvement and evolution is necessary going forward.
A new set of Council Members was established installed arising from the Annual General Meeting
with a new group of office bearers forming the Executive Committee within the Council (EXCO). The
new EXCO members of the CMCF are:
1 Roadshows 16
2 Seminars 6
3 Paper presentations 5
Source: CMCF
Fig. 10.8 CMCF Activities
107
Continuous Guidance and Support to the CMCF Complaints Bureau
Upon securing a full time CMCF Complaints Bureau Chairman in 2006, the Complaints Bureau went
full swing to address complaints pertaining to electronic content received by both the public and
industry members. The year 2007 saw the CMCF’s Complaints Bureau go beyond the normally held
mediation procedure and into hearing procedures to settle disputes between industry members.
The CMCF Complaints Bureau has managed to attract the attention of industry practitioners that
include multinational companies in Malaysia. In considering the cases it receives, the CMCF Complaints
Bureau attends to submissions by foreigners as expert witnesses, engages with the parties’ legal
counsels and prepares the necessary documentation in providing decisions/judgments for cases
in question. The Bureau therefore is a necessary and relevant avenue for dispute settlement for
the industry. A summary of the number of cases and advisory matters received by the Complaints
Bureau for the year 2007 together with the breakdown of complaints by media content category
are as follows:
12 16 3 10 18
Source: CMCF
Fig. 10.10 Number of Cases and Advisory Matters
Among the examples of issues that have been discussed due to the regular communication between
the parties includes the deliberation of issues pertaining to bloggers and the finalisation of sub-
codes. Another development in the pipeline will be the Content Code Review Exercise that had
begun in late 2007 and carried over in 2008 as a key deliverable.
108
Summary of Frequency for Interface between CMCF and Authorities
Ministry of Health 1
Source: CMCF
Fig. 10.11 Summary of Frequency for Interface between CMCF and Authorities
In 2007, a short visit was made by the CMCF Chairman, CMCF Complaints Bureau Chairman to the
Media Development Authority in Singapore. Additionally, the CMCF had also been in contact with
the Office of Communications (Ofcom) in the United Kingdom as well as its Advertising Standards
Authority (ASA (UK)).
Membership Management
Membership to the CMCF continues to grow steadily as industry players see the importance of an
avenue that can be utilised even by an individual member in either taking part in forming regulatory
policies and processes, escalating issues to the proper regulators or as a source to solve disputes
or lodge complaints.
To date, the CMCF carries a total number of 46 companies and organisations under its stable of
members with 45 Ordinary Members and one Associate Member. For the year 2007, the following
companies and organisations have joined the ranks of the CMCF:
109
In comparison to the previous year of 2006 in which the CMCF had received only two (2) new
members, the year 2007 saw a marked increase in new membership by a total of eight new
members. The growth rate reflects the attractiveness and effectiveness of the activities undertaken
by the CMCF.
CfM held an Extraordinary General Meeting (EGM) on 12th July 2007 at Hotel Singgahsana, Petaling
Jaya, Selangor. The main agenda of the EGM was to decide on the way forward for CfM.
On 26th July 2007, CfM held its 7th Annual General Meeting (AGM) at Shah Village Hotel, Petaling
Jaya, Selangor. Among the AGM agenda was to conduct an election for its new council members for
the year 2008-2009. Elections for a new Chairman and council members are held every two years
and this time around the position will be held by a candidate from the Supply side. The new Council
members and office bearers are as follows:
In March 2007, a letter was issued by the SKMM to the MAFB on several key issues that required
the attention by the MAFB, which if left unresolved, would impede the capability of the MAFB to
perform as an industry forum. Hence, the MAFB was requested to provide reasons as to why the
SKMM should not withdraw the designation of the MAFB as an Access Forum. In consideration of its
response, the SKMM allowed the MAFB six months to resolve the issues. The decision on whether
the designation of MAFB as an industry forum should be retained is still being considered at the time
of finalisation of this report.
110
The Malaysian Technical Standards Forum (MTSFB)
The areas in which the MTSFB is involved are many and these are in respect of working groups in
various fields in development. The fields are in 11 working groups, namely on Digital Terrestrial
TV Broadcasting (DTTB), IMT-2000, Multimedia Network Infrastructure, Digital Sound Broadcasting
(DSB), Power Line Communications (PLC), Next Generation Networks (NGN), Wireless Industry
Emission, Wireless Broadband (WiMAX), Multimedia Terminal, IPv6 and Radio Frequency Identification
(RFID).
The MTSFB has completed four voluntary industry codes so far and these are in RF emission control
of cellular radio sites; DSB technical standards; fixed network infrastructure and requirement; and
broadcast network infrastructure and requirements.
The MTSFB and industry are currently undertaking a study to determine the appropriate standard
to be adopted with regard to various technologies for Mobile TV. This study encompasses the
recommendation of the said standard to be used, spectrum requirement/allocation issues, devices/
services to be employed and a review and validation of the trial results.
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PICTURE
Chapter 11
Universal Service Provision
The Universal Service Provision (USP) programme has the main objective to provide collective
and individual access to basic telephony and Internet services throughout the country. This is
because network facility providers, understandably, tend to focus on commercially lucrative areas
and this has created a gap between the “haves” in urban areas, and the “have-nots” in rural areas.
Often referred to as the Digital Divide, this imbalance in communications access can have social
ramifications if not addressed at the national level.
Hence, the USP program is considered as one of the tools for bridging the Digital Divide by acting as
a mechanism for channelling private sector investment into unprofitable rural areas. The key tenet
here is one of “no gain, no loss.” This means that a designated service provider incurs no loss, or
makes a profit, when implementing this programme. The service provider claims only for expenses
incurred, at cost, and the SKMM reimburses them based on a detailed claims template at SKMM
website12.
In the effort of bridging digital divide throughout the country, several projects have been implemented
by SKMM under the USP programme. In 2007, the implementation includes the following projects:
□ Broadband Libraries
□ USP Communications Centre
□ USP Phases 2 and 3
□ Communications Towers Along East West Highway
□ Other Activities
• USP Review
• Public Awareness Programme
• Performance Assessment of USP Service Providers
• Central Monitoring System
• USP Fund Management System
Broadband Libraries
The Internet access service was first introduced in 2005 in the pilot USP sites of Julau in Sarawak
and Kinabatangan in Sabah. In 2007, SKMM broadened the rollout of Internet service by introducing
a new project under the USP programme which is the provision of collective Internet access service
to libraries located in the underserved areas.
Primarily, this initiative focuses on the role of libraries in assisting the digitally disadvantaged
communities in the underserved areas through provision of access and information literacy training.
With the targets identified under the National Broadband Plan and the MyICMS 886 strategy in mind,
this developmental undertaking is expected to open up digital opportunities to the communities in
the remote areas of the country.
12
http://www.mcmc.gov.my/the_law/NewAct/Act%20588/Rules%20&%20Regulations/pua%20419y2002/pua419y2002bi/
pua0419y2002.htm
113
Source: SKMM
Fig. 11.1 Public Library Marang Branch
The project also aims to expand the role of librarians from management of in-house library collections
of hard-copy prints to also being savvy managing Internet resources and electronic archives and
becoming a key facilitator in improving the social well being of communities through new methods
of learning using the Internet.
The selection of libraries for this project is based on feedback from the National Library of Malaysia
and the State Library Organisations. The respective designated USP service providers where
the libraries are located submitted the draft USP plans for the Broadband Libraries project on
30 September 2006. Subsequently, SKMM approved plans for 44 libraries submitted by Telekom
Malaysia Berhad and Maxis Communications Berhad on 28 February 2007. Implementation was
completed on 30 June 2007.
Under this project, the libraries are equipped with the latest information technology (IT) hardware
and high speed Internet connectivity of one Mbps. In addition, other IT-related activities such
as training and promotional activities were conducted in the libraries to encourage the locals to
make full use of the facilities in the effort to improve their IT adoption and ultimately improve their
economic and social status.
Each library has a supervisor appointed on a contractual basis by the USP service provider. The
supervisor is stationed at the library and is responsible for management and maintenance of the
equipment, provision of training and promoting the library facilities to the community in the vicinity.
Details of the implementation are stipulated in Appendix 10.
114
A typical UCC is managed by two supervisors who has the responsibility to conduct various IT-related
activities such as training, seminars and workshops for the local community. For sustainability, the
operations of the UCC adopts the entrepreneurship concept in which the supervisors are encouraged
to earn additional income by conducting IT-related side business in the centre.
Source: SKMM
Fig. 11.2 USP Communications Centre
The implementation of UCC is based on a site criteria and the SKMM has worked closely with state
governments in identifying suitable premises. A guideline together with the implementation concept
was drawn up by the SKMM in 2006 to assist state governments to identify suitable sites for the
project.
In response, the state governments via their local district offices have proposed various potential
premises throughout the designated 89 underserved areas. The SKMM made site verification visits
to these premises and in the third quarter of 2007, approval was granted for the implementation
of the centre at 12 locations. The success of these 12 pilot sites is vital in deciding the mode of
implementation in other proposed premises in the near future.
The project was completed in December 2007. Details of the 12 pilot sites are shown in Appendix
11.
Implementation was carried out in 28 underserved districts designated to TM Berhad and targeted
for completion in first quarter 2008. Upon completion, a total of 27,152 individual and 665
collective lines will be made available for the people within the districts concerned. Details of the
implementation are in Appendix 12.
115
Source: SKMM
Fig. 11.3 USP Phase 2
The rollout of USP Phase 3 project started only in 2 districts namely Kinabatangan in Sabah and
Gua Musang in Kelantan. The project focused on the provision of collective and individual access to
basic telephony with the option of extending broadband service in areas where there was demand.
For Kinabatangan, demand for individual lines was high since the Phase 1 pilot project concentrated
on providing payphones only. As for Gua Musang, the rollout of Phase 3 was essential because
the implementation of Phase 2 was put on hold due to the less developed nature of the area. The
completion of the project is expected in the first quarter of 2008.
Source: SKMM
Fig. 11.4 USP Phase 3
116
Communications Towers along the East West Highway
The communications towers project along the East West Highway is also one of the projects
implemented under the USP programme in 2007. The East West Highway spans three USP districts,
namely Baling, Hulu Perak, and Jeli. This highway is an important but remote route linking the east
and west coast of Peninsular Malaysia. Currently, there is no cellular service along the highway as
the cellular operators find it uneconomical to provide coverage in the area.
Source: SKMM
Fig. 11.5 Communications Towers along East West Highway
As the designated USP service provider for the three districts, TM was given the responsibility to
build the tower in accordance with the standard tower specification endorsed by SKMM. This includes
the provision of adequate power supply, access road to the sites, the cabin to house equipment and
other relevant facilities.
The initial proposal submitted to the SKMM stated the requirement to construct 23 towers along the
highway, but this was reduced to 20 towers to cut down on overall costs. Specifically, Perak has
16 towers to be built while Kelantan and Kedah require four towers altogether. Details of the tower
sites location are shown in Appendix 13.
Approval for project implementation was given to TM on 15 May 2007 and the project was completed
by December 2007. The provision of cellular service via Domestic Roaming will be done by the end
of March 2008, by the cellular service providers.
117
Source: SKMM
Fig. 11.6 Telekom Malaysia Berhad (TM) Tower
OTHER ACTIVITIES
USP Review
Under the CMA, the SKMM is required to conduct a full review of its regulations once in every three
years. The review of the USP Regulations is needed to ensure that it remains relevant to changing
needs and developments.
Initial work commenced in 2006 when a USP Review Committee was set up to review, improve and
enhance the system for the provision of universal service in Malaysia. The Committee conducted
discussions with various parties within the industry to obtain views and feedback, in particular, the
delivery system of much needed services to the public in the underserved areas. The feedback and
views are published in a Public Consultation (PC) paper released in 2006. A total of 24 licensees
responded to the PC.
118
Among the proposals highlighted in the PC are issues regarding the rollout of broadband services
under the USP, the funding of community-based and education-based content development for the
UCC and libraries, the provisioning of cellular access network infrastructure in underserved areas,
and amendments to the existing claims template. SKMM took into account the views provided for its
several proposed amendments to the USP Regulations and part of the USP policies and operational
procedures for the SKMM.
Subsequently, several discussions were held between MEWC and the Committee to draft and fine
tune the new USP Regulations. In fourth quarter 2007, the final draft review of the USP Regulation
was submitted to the Attorney General Chambers. It is envisaged that the new USP Regulations can
be gazetted in the first quarter of 2008.
Source: SKMM
Fig. 11.7 SKMM Chairman officiated USP Projects
To conduct the study, the SKMM has appointed Universiti Malaysia Sabah (UMS), Universiti Malaysia
Sarawak (UNIMAS) and UKM Pakarunding (UKMP) in second quarter 2007 and the scope of their
work is as in Figure 11.8.
119
Performance Assessment of USP Service Providers
The study was completed in third quarter 2007. The conclusion from the findings is that most service
providers have weaknesses in important elements such as implementation method, technology
used, maintenance, quality of service, safety and security. These weaknesses have affected their
customers’ take-up of the services.
As a way forward, SKMM has taken several measures including a review of the weaknesses of the
current USP approach; addressing the issue of implementing USP services in areas where they are
actually needed; coming up with a specific USP model for areas which are not economically viable;
and to carry out a thorough assessment of the capacity and capability of the service providers in
implementing USP programme before they are designated.
The CMS will also be able to assist in the project management aspect in the form of providing an
appropriate solution for system maintenance and repairs of equipment at all locations. Inactive
computers that may be due to faulty equipment, poor or lack of connectivity and absence of on-site
supervisors can be immediately detected via CMS. This will allow the SKMM to take appropriate and
prompt action to rectify the situation.
In respect of this project, Medan Sedunia Sdn Bhd has been appointed for the job. The completion
of the project is due in the first quarter of 2008.
120
USP Fund Management System
The establishment of USP Fund Management System (UFMS) was initially discussed in 2006
and details are being worked out. The UFMS is a requirement under the current USP Regulation
for the purpose of monitoring all submissions of the USP Return on Net Revenue (RONR), the
processing of submissions, issuances of the Notification of Contribution and the collection of all USP
contributions.
The system will also be able to monitor all claims by USP service providers for capital and operational
expenditure based on completion of USP projects against the USP approved plans. Other additional
features will include access to relevant database of licensees to ensure that SKMM has access to the
most current information of new licensees and linkage to the Financial System of SKMM to ensure
that all USP collections and payments are duly accepted and recorded.
There is little doubt that the USP programme is beneficial to the communities living in the underserved
areas. One way to gauge the effectiveness and the impact of the USP programme is by comparing
the usage of telephone before and after the implementation of the programme. Based on the
impact study carried out by UKM Pakarunding Sdn Bhd (UKMP), a high percentage of users claimed
they had used payphones prior to the implementation of the USP programme, suggesting that the
need for telephone service exists even in the most remote parts of the country regardless of socio-
economic status.
The study discovered that before USP reached them, users had to travel between nine and 50
kilometres to get to the nearest villages or towns to make telephone calls. Other than distance,
difficulty in obtaining transportation was cited as the main problem users faced in accessing the
phone service before the implementation of the USP programme. It is therefore clear that providing
telephone service is of value to these communities. The study also found that many users who
had never used a telephone prior to USP implementation are now regular users of the telephone
service.
The positive impact of the USP programme is further demonstrated by the frequency of calls made
before and after programme implementation. Compared to previous usage pattern, the UKMP study
reveals a marked increase in the proportion of users making calls post-programme implementation
whereby in some cases, the increase is more than 100%.
In terms of call purpose, most users use the service for enhancing and strengthening family and
social relationships. The study reveals that the pattern of call purpose between incoming and
outgoing calls is similar, suggesting the importance of telephone service in fostering such social
interaction. In this regard, the USP programme should not be viewed as just providing connectivity
but also encouraging greater utilisation of services provided for various end purposes.
From the study, there is also indication that the service has been useful for business and economic
activities although rather limited. For example, some users reported that the service has allowed
them to enjoy better pricing for their agricultural produce.
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PICTURE
Chapter 12
Going Forward – An Outlook
The SKMM sees the year 2008 as a year of mixed to positive growth for the C&M industry in the
region of 10% (2007: 12.2% growth), marked with significant industry developments in light
of various changes or project implementations in the industry.
The pro-business policy of the Malaysian government and conducive monetary stance continues
as a stable backdrop for C&M industry investments in new infrastructure and accelerated
upgrades, continued investments in resources to widen and deepen skills and other factors
crucial to propel the industry, and thereon the nation, forward in terms of rich multimedia
content environment, and communications services and product offerings. The corporate tax
cuts announced ahead in the Budget 2008 provided lead information as well as for planning
investments in infrastructure in 2008.
Government initiatives in 2008 include various projects following from the implementation
of the Ninth Malaysia Plan (2006-2010); the Third Industrial Master Plan (2006-2020); and
ICT and C&M blueprint MyICMS 886 (2006-2010). Broadband connection is recognised as
a platform to catalyse enhancements in existing business models, and provide new ways in
communications and related applications services to come. Hence, plans to broadband the
nation is underway via the National Broadband Plan, which includes the Klang Valley Broadband
plan that is expected to go full steam ahead in 2008.
Not only connectivity is important, but also sufficient bandwidth featuring high speed Internet
and related backhaul capacities are required to uplift the economic and socio-economic levels
of the country towards Vision 2020. Then only can applications services in the communications
and multimedia arena thrive where the platforms for rich content development are readily
available and also affordable. This serves in turn to bring the economics of services delivery
to a higher plane, along with the necessary quality of service provision; spurring quality of
business and quality of life a notch higher. Towards this end, the government has plans to
broadband the nation with fibre connections as well, covering about 2.27 million premises over
a 10 year period. This is estimated to cost RM15.2 billion in the period concerned. This public-
private sector partnership is underway with TM and the details are already being deliberated
and set to be firmed up in 2008.
In 2007, the major Malaysian Internet service providers (ISPs) passed the Internet Protocol
version 6 (IPv6) compliance test at level one. This refers to connectivity tests of local ISPs
with other countries implementing IPv6. Further tests are at in-depth and advanced levels to
ensure Malaysia is really on a fully IPv6 platform by 2010. In 2008, the target is to have all
ICT hardware and software in all government agencies to be IPv6 compliant. The IPv6 platform
would alleviate the limitations in IPv4 platform existing today, and provide the necessary support
for new application technologies to come.
Meanwhile, TM is taking steps to rationalise its mobile arm for cost savings and to better
manoeuvre amidst intense competition in the industry. This is timely as service quality and
customer management becomes more crucial as customer segmentation or fragmentation
123
increases and services become more differentiated to thin out profit margins further. In line
with the targets in the MyICMS 886, development such as the move to next generation network
(NGN) is expedited.
The fixed, fixed wireless and mobile connections for communications services are now offered
at higher bandwidth. Average speeds of up to one Mbps previously are now beginning to be
offered at speeds as high as 2-4Mbps. Such capacities are expected to enable greater range
of applications that include not only pure voice, but emergent video delivery as well. Hence,
as more services are provided and connections are made, the aspect of security in network
and service platforms are becoming more crucial and urgent. Given this, the SKMM is setting
up a network security monitoring centre to oversee strategic security aspects are ensured.
This is expected to work hand in hand with the operators’ own security measures and related
stakeholders in this field. Meanwhile, with more connections and as video together with its
accompanying VOD type delivery comes online over the fixed, fixed wireless and mobile modes,
the avenue for ads is increasingly becoming a likely viable business opportunity. The volume
of eyeballs is potentially likely to increase.
In 2007, SKMM launched the Networked Content Development Grant (NCDG), which amongst
others has the objective to facilitate and encourage Malaysian involvement in the creation,
production and distribution of highly creative, original and marketable networked content for
domestic and international markets. These initiatives are ongoing into the year 2008 and
beyond.
New mobile handsets introduced in 2007 include the iPhone in overseas markets, which feature
service combinations of MP3 player, mobile phone and Internet communications device, together
with substantive gigabytes storage. Altogether this service provides the consumer a holistic
user experience, for example satisfying consumer desires for music on the go and a connection
with it to share content with a friend or friends. In social networking style the Malaysian mobile
environment is also facing changes in terms of new products and new providers as operators
continue to innovate in product and service provisioning, and others go beyond their traditional
business to offer new products in collaboration with other experts in other fields.
Mobile operators are now offering mobile e-mail to a relatively untapped consumer and corporate
markets in Malaysia. More new services are being offered in progressive small steps or stages
as the operators move cautiously to test customer appetite and take-up in product offerings
before going full blown. Operators are being mindful of cost and the repercussions of failed
business propositions in a highly competitive C&M environment.
124
Other relatively new services beckon. Telematics13, a less prominent development so far is
seen as likely to grow fast in Malaysia in the future as the country faces the knock-on effects of
rising fuel prices, and as Machine-to-Machine (M2M) connections become more affordable via
widespread mobile Internet network. This application can provide benefits of security, safety
and fuel consumption control, including fleet management features such as driving patterns
and driving behaviour profiling for cost and productivity control, especially in the logistics and
trucking business. The Malaysian commercial vehicle telematics market is expected to see total
shipments increasing to 15,300 units by 2013 from 5,770 units in 200614.
While video streaming is not new, video broadcast mobile TV is on its way in Malaysia, once
the teething issues of spectrum availability and technology standards are ironed out. WiMAX
roll out development in 2008 are expected to further facilitate the aspects of connections in
wider coverage to include the areas especially not already connected by commercially viable
communications services. The implementation of mobile number portability is another milestone
in Malaysia to offer consumer more choice and the operators’ keen attention to consumer
centricity for reduction of churn and raking in the incremental subscriber. Competition remains
stiff and even smaller players are expected to play a role in their provision of niche services
through infrastructure sharing and access to facilities.
Many preparations are being made amongst all stakeholders for new business opportunities
as the boundaries of the traditional communications services continue to blur at the periphery
in Malaysia. As many areas may be new, there is likely more benefit to be gained from
partnerships, collaborative alliances and cooperation, even amongst rivals in the industry.
Partnerships through equity and capital investments are seen in Telenor and Vodafone already
in the Malaysian market today. More recent alliances are U Mobile Sdn Bhd, one of the 3G
providers, with capital investments in Malaysia from Japan’s NTT DoCoMo and South Korea’s KT
Freetel. Maxis has entered into equity arrangements with Saudi Telecom.
The concept of “berganding bahu” in Bahasa Malaysia or explained simply as putting our shoulders
together to carry the load or putting our heads together to maximise the opportunities en route
may be an alternative to ensure long term sustainable success of the business and the nation
as well. The trade-in of a bit of control, may provide a leap in resources and returns previously
unimaginable in a converging communications and multimedia environment that is here today
and that lies ahead of us all in the future.
13
Refers to the broad industry of using computers in concert with telecommunications systems. This includes Dial-Up service to
the Internet as well as all types of networks that rely on a telecommunications system to transport data. In this case, it
includes the use of such a system in automobiles that combine wireless communication with Global Positioning System (GPS)
tracking.
14
Frost and Sullivan forecast
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PICTURE
Appendix 1
List of Individual Licensees
Network Facilities Provider (NFP) Individual Licensees 31 December 2007
1. DiGi Telecommunications S/B Media Holdings S/B (previously 45. Celcom Timur (Sabah) S/B
2. Telekom Malaysia Bhd Known as MiTV Corporation 46. Yiked Bina S/B
3. Celcom Mobile S/B S/B) (Licence transferred from 47. Go Lightspeed Broadband S/B
(TM Cellular S/B formerly Grafimatix S/B) 48. Desabina Industries S/B
known as Telekom Cellular S/B) 24. Smart Digital Communications 49. Clear-Comm S/B
4. TM Payphone S/B Bhd (formerly known as 50. Perak Integrated Network
(formerly known as Citifon S/B) Smart Multimedia Technology S/B) Services S/B
5. Fiberail S/B 25. Maxis Mobile S/B (the licence 51. Common Tower Technologies S/B
6. Mobikom S/B transferred from Prismanet 52. Redtone-CNX Broadband S/B
7. Asiaspace Dotcom S/B (2002) S/B (originally (formerly known as CNX
8. Celcom (Malaysia) S/B transferred from Prismanet (M) Solutions S/B)
9. Celcom Transmission (M) S/B S/B to Prismanet (2002) S/B) 53. Technology Park Malaysia
10. Maxis Broadband S/B 26. eB Technologies (M) S/B Corporation S/B
11. Maxis International S/B 27. Airzed Broadband S/B 54. PDC Telecommunication
12. Maxis Mobile S/B 28. Jaring Communications S/B Services S/B
13. Suidar Elektronik S/B (Licence transferred from 55. Danawa Resources S/B
14. TT dotCom S/B MIMOS Bhd) 56. Packet One Networks (M)
15. Malaysian Mobile Services S/B 29. MyKRIS Asia S/B S/B (formerly known as MIB
(formerly Malaysia Mobile 30. Setia Haruman S/B COMM S/B)
Services S/B) 31. Scopetel S/B 57. Fibrecomm Network (M) S/B
16. TIME Sat S/B 32. Optical Communication 58. Electcoms Wireless S/B
17. TIME Reach S/B Engineering S/B 59. Realm Energy S/B
18. MEASAT Satellite Systems S/B 33. Baycom S/B 60. Perlis Comm S/B
(formerly known as Binariang 34. ARL HomeComm S/B 61. IP Mobility S/B
Satellite Systems S/B) (formerly known as ARL Home 62. REDtone Marketing S/B
19. NasionCom S/B Communications S/B) 63. Wi-Net Technology S/B
(formerly known as 35. IT Surplus S/B 64. Sarawak Information Systems S/B
High-Tech Electronics S/B) 36. VDSL Network S/B 65. iZZinet S/B (formerly known as
20. AtlasONE S/B (formerly 37. D'Harmoni Telco Infra S/B MoBif Wireless Broadband S/B)
Known as Kasturi Capital S/B) 38. Touch Matrix S/B 66. U Mobile S/B (formerly known
21. Sapura Holdings S/B 39. Melaka ICT Holdings S/B as MiTV Networks S/B
22. Sacofa S/B 40. Infra Quest S/B 67. DTRS Consortium S/B
23. U Television S/B (formerly 41. Y-Max Networks S/B (formerly 68. TIMECel S/B (formerly known
known as U Telecom known as Bizsurf (M) S/B) as TIME Wireless S/B)
42. Konsortium Jaringan Selangor S/B
43. Rangkaian Minang (NS) S/B
44. OBNET S/B (formerly known as
Intelligent Edge Solutions S/B)
127
Appendix 2
List of Individual Licensees
Network Services Provider (NSP) Individual Licensees 31 December 2007
1. DiGi Telecommunications S/B 24. Sacofa S/B 47. OBNET S/B (formerly known as
2. Telekom Malaysia Bhd 25. Smart Digital Communications Intelligent Edge Solutions S/B)
3. Celcom Mobile S/B Bhd (formerly known as Smart 48. Telshine S/B
(TM Cellular S/B) (formerly Multimedia Technology S/B) 49. ITG Communications S/B
known as Telekom Cellular S/B) 26. Maxis Mobile S/B (Licence 50. Centennial Gateway S/B
4. Fiberail S/B being transferred from 51. Celcom Timur (Sabah) S/B
5. Mobikom S/B Prismanet (2002) S/B 52. Go Lightspeed Broadband S/B
6. Asiaspace S/B (formerly known (originally transferred from 53. Clear-Comm S/B
as Asiaspace Dotcom S/B) Prismanet (M) S/B to Prismanet 54. Axis Technologies
7. Celcom (M) S/B (2002) S/B Solutions (M)S/B
8. Celcom Transmission (M) S/B 27. TM Net S/B 55. Asia Telecommunications (M) S/B
9. Maxis Broadband S/B 28. eB Technologies (M) S/B 56. Equant Services Malaysia S/B
10. Maxis International S/B 29. Airzed Broadband S/B 57. REDtone-CNX Broadband S/B
11. Maxis Mobile S/B 30. MyKRIS Asia S/B (formerly known as CNX
12. Suidar Elektronik S/B 31. Scopetel S/B Solutions S/B)
13. Jaring Communications S/B 32. Cordoda Corporation S/B 58. FSBM Net Media S/B
(Licence Transferred from 33. Optical Communication 59. GITN S/B
MIMOS Bhd) Engineering S/B 60. Technology Park Malaysia
14. TT dotCom S/B 34. ARL HomeComm S/B Corporation S/B
15. Maxis Mobile Services S/B (formerly known as ARL 61. Danawa Resources S/B
(formerly known as Malaysian Home Communications S/B) 62. Packet One Networks (M)
Mobile Services S/B) 35. Merchantrade Asia S/B S/B (formerly known as MIB
16. TIME Sat S/B 36. REDtone Marketing S/B COMM S/B)
17. MEASAT Satellite Systems S/B 37. Reach Bandwidth Services 63. Fibrecomm Network (M) S/B
(formerly known as Binariang Malaysia S/B 64. Electcoms Wireless S/B
Satellite Systems S/B) 38. IT Surplus S/B 65. Realm Energy S/B
18. NasionCom S/B 39. VDSL Network S/B 66. HeiTech Padu Bhd
(formerly known as High-Tech 40. Fristor.com S/B 67. DTRS Consortium S/B
Electronics S/B) 41. Applied Information 68. Wi-Net Technology S/B
19. AtlasONE S/B (formerly known Management Services S/B 69. Sarawak Information System S/B
as Kasturi Capital S/B) (AIMS Data Centre S/B) 70. iZZinet S/B
20. Sapura Holdings S/B 42. Next Telecommunications S/B 71. U Mobile S/B (formerly known
21. Baycom S/B 43. Xintel S/B as MiTV Networks S/B)
22. VADS S/B 44. KKIPC S/B (formerly known as 72. MCM Wireless S/B
23. U Television S/B [(formerly KKIP Communications S/B) 73. XOX Com S/B
known as U Telecom Media 45. NTT MSC S/B 74. IP Mobility S/B
Holdings S/B (previously known 46. Y-Max Networks S/B (formerly
as MiTV Corporation S/B)] known as Bizsurf (M) S/B)
(Licence transferred from
Grafimatix S/B)
128
Appendix 3
List of Class Licensees
Applications Service Provider (ASP) Class Licensees 31 December 2007
1. Dapat Vista (M) S/B 37. IGMobile Holdings S/B 75. Telekom Malaysia Bhd
2. Arista Communications S/B 38. Destiny Systems S/B 76. Axis Technologies
3. Phenomenal UAM S/B 39. Intranet Profile S/B Solutions (M) S/B
4. Ace Touchstone S/B 40. Malaysian Allied Mobile S/B 77. NasionCom S/B
5. Freeway Access S/B 41. IP Mobility S/B 78. Eracitra (M) S/B
6. Mypressto.Com S/B 42. Sybase 365 Asia S/B 79. Novaweb S/B
7. Packet One Networks (M) S/B 43. SMS Planet S/B 80. Mediaring S/B
8. Nex-Ge Technologies S/B 44. Azea Communications S/B 81. Carlsberg Marketing S/B
9. Teletouch Communications S/B 45. Palette Multimedia Bhd 82. Telcom Research (M) S/B
10. Airocom Technology Bhd 46. Interactv A.P S/B 83. Pan Malaysian Pools S/B
11. Meltronic S/B 47. Dubaitech Marketing S/B 84. Emerge Software
12. Mikro Oasis S/B 48. Kotaemas Edaran S/B Solutions (M) S/B
13. Cool Mobile S/B 49. Zed Mobile Malaysia S/B 85. CTAPPS Technology S/B
14. Handisplay (Malaysia) S/B 50. Bimbit.com S/B 86. FSBM Net Media S/B
15. Pennytel Communications S/B 51. Trylah S/B 87. Extiva Communications S/B
16. X-Wave Solutions S/B 52. Domino Application System S/B 88. ARN Technology S/B
17. Isentric Media S/B 53. Serting Com S/B 89. Advance Able Network S/B
18. iSCALAR HT Technology S/B 54. Quicknet Com S/B 90. Mobile Communications
19. Reach Bandwidth Services 55. UPE Systems Services S/B Media S/B
Malaysia S/B 56. Murasu Communications (M) S/B 91. Ikogo S/B
20. Net 8 Technologies S/B 57. Widenet Distributor S/B 92. Swedtel Southeast Asia S/B
21. Flexitone Communication S/B 58. Connection Fidelity S/B 93. TIME Reach S/B
22. Nasmedia S/B 59. Samart I-Mobile (Malaysia) S/B 94. Trio Mobile S/B
23. Commzgate S/B 60. Virtual Approach S/B 95. Cilix Corporation S/B
24. Micro Communication 61. Etnet.com S/B 96. Ace Serve Anaconda S/B
Systems S/B 62. TM Payphone S/B 97. Eshop Ent
25. Golden Digit Resources S/B 63. Merchantrade Asia S/B 98. JRJ Management Consultants S/B
26. Threesixty Technologies S/B 64. Telshine S/B 99. Biox Carbon Malaysia S/B
27. Wonderful 65. PCS E-Hub Holdings S/B 100. Media Digital Distribution S/B
Telecommunications S/B 66. Next Telecommunications S/B 101. Hasyon Teknik S/B
28. Virtual Commerce S/B 67. J & C Pacific S/B 102. Schlumberger Wellog (M) S/B
29. MDOT Marketing S/B 68. Maxis Broadband S/B 103. Mal-Tel Communications S/B
30. TPM IT S/B 69. Maxis Mobile Services S/B 104. Persiasys S/B
31. JAS Mobile Solutions S/B (Malaysian Mobile Services S/B) 105. Triplay S/B
32. NKS Systems S/B 70. Maxis Mobile S/B 106. CMRS Trunk Radio S/B
33. Maxcall Solutions S/B 71. Xintel S/B 107. Syarikat Pelatus S/B
34. Techexpert Solutions S/B 72. TT dotCom S/B 108. Electcoms S/B
35. Infolient S/B 73. Celcom (M) S/B 109. Textphon (M) S/B
36. Impianas S/B 74. Celcom Mobile S/B 110. Samen Trunked Radio S/B
129
Applications Service Provider (ASP) Class Licensees 31 December 2007 (cont’d)
111. Go Voice S/B 154. MNC Consulting S/B 197. ME-Tech Solution S/B
112. IMA Network (M) S/B 155. Tec-Surf Technologies S/B 198. JNI System S/B
113. Fibrecomm Network (M) S/B 156. SN Mobile Digital S/B 199. PG Communications S/B
114. ARL HomeComm S/B 157. HICOM Teleservices S/B 200. Zen Alpha Network S/B
115. Aristomark Ventures S/B 158. Baycom S/B 201. IPTEL S/B
116. Sungeiway Dotcom S/B 159. KKIPC S/B 202. The Red Snapper (M) S/B
117. Optical Communication 160. IPSAT S/B 203. Foundermall Dot Com S/B
Engineering S/B 161. Genesis Voiz Systems S/B 204. Move Success S/B
118. Thumbwave S/B 162. Xpedite Systems 205. Asia Mobile Commerce
119. Global Tone S/B Incorporated (M) S/B Privilege (M) S/B
120. Arthatek Resources 163. Mediacliq S/B 206. Universal Chain S/B
Corporation S/B 164. Mobif Global S/B 207. Global Surf S/B
121. E-Room S/B 165. Platronix S/B 208. Consensus Network S/B
122. Wokbyte S/B 166. IBM Malaysia S/B 209. Frizzhub Voice Services S/B
123. Inventive Computing S/B 167. Gateway Option S/B 210. Y-Max Networks S/B
124. Reliant Communication S/B 168. Nukilan Mahir S/B 211. Macrobuzz Interactive S/B
125. MIH Express Prepaid (M) S/B 169. Exticom S/B 212. Solution System Touchmedia S/B
126. E-Authentic S/B 170. Directhere S/B 213. Teenbiznet.com S/B
127. Talk Eight Communications S/B 171. Wifive Services S/B 214. Mobileexec S/B
128. Solsisnet S/B 172. Cellcast Interactive Malaysia S/B 215. MTL E-solutions S/B
129. Uncover Technology S/B 173. Asia Netcom Services S/B 216. Antechnic Systems S/B
130. Next Wave Communications S/B 174. My Lucky Mobile S/B 217. EZ Phone (M) S/B
131. Lingkaran Ehsan S/B 175. Digi Telecommunications S/B 218. Nyholt Telecommunications
132. Intelligent Edge Technologies Bhd 176. Jobmobile Service Centre (M) S/B (M) S/B
133. Level 1 Communications (M) S/B 177. Danawa Resources S/B 219. Cellab (M) S/B
134. ITG Communications S/B 178. Redtone-CNX Broadband S/B 220. Phoenix Minds Corporation S/B
135. Techninier S/B 179. MRCB Technologies S/B 221. Computer Systems
136. MoBif Wireless Broadband S/B 180. ITX Marketing S/B Advisers (M) Bhd
137. TM Info-Media S/B 181. Ericsson (M) S/B 222. Horizon Multimedia S/B
138. Elanet S/B 182. Matrix Internet & Wireless S/B 223. My Agenda S/B
139. Centennial Gateway S/B 183. Smart Digital 224. SMS Biz S/B
140. Nanyang Cosmos S/B Communications Bhd 225. Lanvik ICU S/B
141. VADS Bhd 184. Glomobi S/B 226. iRepublics.com S/B
142. HeiTech Padu Bhd 185. MNC Wireless Bhd 227. K.S. Lee S/B
143. Aliya Technologies S/B 186. Mobile Touchetek S/B 228. Genusis Consultancy S/B
144. Click N Ring S/B 187. Mobile Multimedia S/B 229. Sphinx Fusion S/B
145. Yellotext S/B 188. Voicestar Communications S/B 230. Redwood Networks S/B
146. Megamobile Solutions S/B 189. Intereach Communication S/B 231. AKN Messaging Technologies Bhd
147. RCOM Malaysia S/B 190. Matrix Tech Management S/B 232. Societe Internationale
148. GITN S/B 191. P1.Com S/B Telecommunications
149. Warisan Arca S/B 192. NGlobe S/B Aeronautiques (SITA)
150. Ricochet Technologies S/B 193. Redtone Telecommunications S/B 233. Push-To-Talk S/B
151. Clearhub S/B 194. Bizsurf MSC S/B 234. Segi Maju S/B
152. Funmobile S/B 195. Pacific Internet (M) S/B 235. STR Communication S/B
153. HICOM Communications S/B 196. Sacofa S/B 236. Stars Associated S/B
130
Applications Service Provider (ASP) Class Licensees 31 December 2007 (cont’d)
237. LNV Solutions S/B 281. Ourcom S/B 327. NGC Systems S/B
238. Netstar Advanced Systems S/B 282. U Mobile Services S/B 328. Rhyzrin S/B
239. Pesaka Resources S/B 283. TIME dotNet Bhd 329. Measat Broadcast Network
240. Time Quantum Technology S/B 284. Global Touch Solutions (M) S/B Systems S/B
241. Comintel S/B 285. N-Visio S/B 330. Frenclub Mobile S/B
242. USJ One Avenue S/B 286. Focus Spirit S/B 331. RX Technology S/B
243. E-Gal Corporation S/B 287. Splat S/B 332. Macro Mobile Services S/B
244. Mexcomm S/B 288. Yomobile S/B 333. Macro Lynx S/B
245. M-Village S/B 289. Redspiral S/B 334. Mikimoto Communications S/B
246. Two Tale Marketing S/B 290. N2N Connect Bhd 335. Obnet S/B
247. Best Debut S/B 291. Isentric S/B 336. Shocksharp Communication
248. Vvebs System S/B 292. Soak Technologies S/B International S/B
249. Modern Solution S/B 293. IP Innovation S/B 337. Buzzcity S/B
250. NTT MSC S/B 294. Equant Services Malaysia S/B 338. Purple Gum S/B
251. Gen-X Technology S/B 295. Mplay Solutions S/B 339. Ecentury S/B
252. Airzed Networks S/B 296. Agensi Pekerjaan Tops S/B 340. Verve Consulting S/B
253. Techavenue S/B 297. Nextnation Network S/B 341. Nexmix S/B
254. Suitelab Technology S/B 298. Macro Kiosk Bhd 342. Airoport.com S/B
255. Otelo Telecommunications S/B 299. T-Force Technology S/B 343. Mobile Money International S/B
256. Tappo Tappi S/B 300. Unrealmind Interactive Bhd 344. Clear-Comm S/B
257. BT Systems (M) S/B 301. Silkron Technology S/B 345. Rach Call Centre S/B
258. JP Com S/B 302. Superb Trax Systems S/B 346. Draconid Solutions
259. Yesnet Telecommunication S/B 303. Jaring Communications S/B 347. iNavigate S/B
260. My Solution System (M) S/B 304. Parade Nine Techno S/B 348. Simer Solutions S/B
261. Worldtone (M) S/B 305. Chatgate Communications S/B 349. Creative Factory S/B
262. Super Call S/B 306. Omni Telecoms (M) S/B 350. Airtime Management &
263. IT Dialer S/B 307. Melaka ICT Holdings S/B Programming S/B
264. Inter-Touch (M) S/B 308. N-Wave Telecoms (M) S/B 351. Clicque Technology S/B
265. Ciseye Mobility S/B 309. Free Net Business Solutions S/B 352. Two-P Technology (M) S/B
266. AsiaEP Bhd 310. DZD Communications (M) S/B 353. Setia Haruman Technology S/B
267. Viewqwest Technologies S/B 311. Nokia (M) S/B 354. ITG Telecommunications S/B
268. Formasi Sekutu S/B 312. Karibu Systems S/B 355. Celcom Technology (M) S/B
269. Ionnex S/B 313. Callplus Telecommunications S/B 356. Beta Technology S/B
270. Mutual Digital S/B 314. Possimo Technologies S/B 357. Anda Interaktif S/B
271. Ring 8 (M) S/B 315. Gerakan Padu S/B 358. MCOM Media Technology S/B
272. Ftone S/B 316. MT & T Technology S/B 359. M-Village Solutions S/B
273. Alya Integrated 317. iVoix Global S/B 360. Hing Lee Technology
Telecommunication S/B 318. Telekom Applied Business S/B 361. iGlow.com.my S/B
274. Achi Jaya Communications S/B 319. Vyke Asia S/B 362. MapIT MSC S/B
275. EsseCall S/B 320. Bakti Anggun S/B 363. Fast Line Marketing S/B
276. DVM Intellisource S/B 321. Spectrum ICT S/B 364. Matahari ICT (M) S/B
277. Meridian Surveys (M) S/B 322. Blue Horus Solutions S/B 365. Wavecall Malaysia S/B
278. Touch Mindscape S/B 323. Planetunes Mobiles S/B 366. Xtend Services S/B
279. Skyline Theme S/B 324. Digital Trend S/B 367. Cometron S/B
280. Acmesys Corporation S/B 325. Ahead Mobile S/B 368. Ledder Enterprise S/B
326. AIMS Data Centre S/B
131
Appendix 4
List of Individual Licensees
Content Application Service Provider (CASP) Individual Licensees
31 December 2007
1. Sistem Televisyen Malaysia Bhd 9. STAR Rfm S/B (formerly known 16. U Television S/B (formerly
(TV3) as Radio Rediffusion S/B ) (RfM) known as U Telecom Media
2. Natseven TV S/B (NTV7) & (Redi.FM) Holdings S/B and MiTV
3. Metropolitan TV S/B (Metro 10. Radio Lebuhraya S/B (THR) Corporation S/B). Licence
Vision) 11. Husa Network S/B (Manis FM) transferred by Grafimatix S/B
4. Maestra Broadcast S/B (MIX FM) 12. Institut Kefahaman Islam effective 17 December 2004
& (ERA) Malaysia (Radio IKIM) 17. CH-9 Media S/B (formerly
5. Measat Radio Communications 13. Malaysia Airports (Sepang) S/B known as Medanmas S/B)
S/B (MY), (HITz) & (Light & (Radio KLIA) 18. Network Guidance S/B (FINE
Easy) 14. Rimakmur S/B Network)
6. Syncrosound Studios S/B 15. Perfect Excellence Waves S/B 19. Radio Wanita Bhd
(WowFM) (transferred from Titian 20. ISY Holdings S/B
7. Kristal Harta S/B (Cats Radio) Sebaran S/B) 21. TM Net S/B
8. Suara Johor S/B (Best 104) 22. BFM Media S/B (formerly known
as Bristol Avenue S/B)
Appendix 5
List of Class Licensees
Network Service Provider (NSP) Class Licensees 31 December 2007
132
Appendix 6
List of Class Licensees
Network Facilities Provider (NFP) Class Licensees 31 December 2007
1. Impianas S/B 12. Electcoms Bhd adio S/B 20. Societe Internationale
2. Serting Com S/B 13. Textphone (M) S/B Telecommunications
3. Widenet Distributor S/B 14. Samen Trunk Radio S/B Aeronautiques (SITA)
4. Achi Jaya S/B 15. Communications & Satellite 21. Netstar Advanced Systems S/B
5. Media Digital Distribution S/B Services S/B 22. Pesaka Resources S/B
6. Hayson Teknik S/B 16. Segi Maju S/B 23. TIME Quantum Technology S/B
7. Schlumberger Wellog (M) S/B 17. STR Communications S/B 24. Comintel S/B
8. Mal-Tel Communication S/B 18. Stars Associated S/B 25. USJ One Avenue S/B
9. Persiasys S/B 19. Push To Talk S/B 26. Xtend Services S/B
10. CMRS Trunk Radio S/B 27. Cometron S/B
11. Syarikat Pelatus S/B 28. Ledder Enterprise S/B
Appendix 7
Content Applications Service Provider (CASP) Class Licensees 31 December
2007
1. Bukit Jambul Hotel 7. Berjaya Georgetown Hotel 14. Inter Heritage (M) S/B
Development S/B (Penang) S/B 15. Ming Court Hotel (KL) S/B
2. Komtar Hotel S/B 8. MTJ Development S/B 16. Tradewinds Hotels & Resorts S/B
3. Langkawi Island Resort S/B 9. Golden Sands Beach Resort S/B 17. Tanjong Aru Hotel S/B
4. Subang Jaya Hotel 10. Metroplex Holdings S/B 18. Kuala Lumpur Convention
Development S/B 11. Shangri-La Hotels (M) S/B Centre S/B
5. One World Hotel S/B 12. Shangri-La Hotel (KL) S/B 19. TIME Quantum Technology S/B
6. Yong Lung Enterprise S/B 13. Pantai Dalit Beach Resort S/B
Appendix 8
Postal Service Provider 31 December 2007
1. Pos Malaysia Berhad
133
Appendix 9
Courier Service Providers 1 December 2007
1. Batu Pahat Express Service 36. D-TWO Services S/B 71. Fontello Secretarial Services
2. Verifield (M) S/B (Licenced 37. All-Trade Business Agencies 72. JB Express System S/B
transferred by Beukhen 38. B.P. Ambulatory S/B 73. LMA Express Couriers
International S/B which 39. HMR Worldwide Express S/B 74. Successline (M) S/B
formerly known as Beukhen & 40. United Courier Agency S/B 75. Nationwide Express Courier
Pokhrell (M) S/B) 41. Despatch 2000 S/B Services Bhd
3. Cheras Jaya Enterprise 42. Sure-Reach Worldwide 76. Overseas Courier Service (M) S/B
4. Cen Worldwide S/B Express S/B 77. Rafrim S/B
5. Consol Express Service S/B 43. The Senders 78. Skynet Worldwide (M) S/B
6. GD Express S/B 44. Interlink Access Services S/B 79. Securexpress Services S/B
7. Klach Courier Services (M) S/B 45. SR Courier S/B (Licence 80. Securicor (Malaysia) S/B
8. Metro Post Courier S/B transferred by SR Express S/B) 81. Stork Express (M) S/B
9. QNS Services 46. SA Kargo S/B 82. Syarikat O.B.S.
10. YME Express S/B 47. Natsons Despatch Services 83. Transforma S/B
11. Era Baru Business System S/B 48. Pacargo Management S/B 84. Federal Express Brokerage S/B)
12. Syarikat Maju Emas Teknologi S/B 49. B & H Worldwide S/B (formerly known as Udara
13. WEB Courier S/B 50. Pack-Man Services S/B Express Courier Services S/B
14. AMC Express Mail S/B 51. SASA Aircargo Express S/B 85. United Parcel Service (M) S/B
15. United Express Delivery S/B 52. Airpak Express (M) S/B 86. Avanti Worldwide Express S/B
16. Speed Express Services 53. Airway Express Servis 87. GBS Express Services S/B
17. PSH Express S/B (formerly 54. Americaras Express Services 88. Flash Jordan Courier S/B
known as Gerak Kawal S/B) 55. Trans-Express Courier S/B 89. World Courier (Malaysia) S/B
18. One Express Courier S/B 56. B.P Express Services S/B 90. ABX Express (M) S/B
19. Daily Courier Express 57. City Link Air Cargo S/B 91. Link Dual Express (M) S/B
20. Kangaroo Worldwide 58. City Link Logistics S/B 92. LBC Mabuhay (M) S/B
Express (M) S/B (formerly known as City Link 93. OBS Corporate Services (M) S/B
21. Skymail Express Worldwide S/B Parcel and Card Services S/B 94. TNT Express Worlwide (M) S/B
22. Lymans Technologies S/B 59. Airpak Express (Ipoh) S/B 95. Tri-K Worldwide Express (M) S/B
23. J.N.E. Express S/B (formerly known as Continental 96. RNZ Express S/B
24. Speedline Courier Services Express Incorp S/B) 97. T&T Travel & Cargo S/B
25. Orami S/B 60. City Link Express (M) S/B 98. Customise Link Express S/B
26. Explore Network 61. D.C Express 99. Pro-Office Bulk Mailing S/B
Solutions (M) S/B 62. DHL Air Freight Forwarder S/B 100. Sunda Worldwide S/B
27. TNTT Packages Express S/B 63. DHL Worldwide Express S/B 101. J’Mhellys Carrier (M) S/B
28. Daylight Express Services 64. Airpak Express (Penang) 102. Public Courier (M) S/B
29. KTM Distribution S/B S/B (formerly known as 103. Dropzone (M) S/B
30. M & A Express S/B Express Systems (Penang) S/B 104. Aerozone Line Services S/B
31. Pacific Express Worldwide S/B 65. Express Systems Sabah 105. Hangwang S/B
32. Matang Logistics S/B 66. Federal Express Services (M) S/B 106. Chosen Express S/B
33. Padat Jaya Services S/B 67. Felda Transport Services S/B 107. Arahbumi Logistik S/B
34. NZA Logistics (M) S/B 68. First Letter Despatch Service 108. INX Logotics (M) S/B
35. AYJ Courier Service S/B 69. First Nationwide Couriers S/B 109. Cahaya Kilat (M) S/B
70. Epic Fleet Courier (M) S/B
134
Appendix 10
Details of Broadband Libraries Project Rollout
Service
No Library* District State Category Technology
Provider
135
Appendix 11
Details of 12 Pilot Sites Location for USP Communications Centre Project
Appendix 12
Details of USP Phase 2 Project Rollout
Line Capacity
No District State Technology No. of
Individual Payphone Total
Settlement
1 Baling Kedah ADSL 18 770 16 786
2 Bandar Baharu Kedah ADSL 10 320 8 328
3 Sik Kedah ADSL 18 422 19 441
4 Bachok Kelantan ADSL 11 316 8 324
5 Gua Musang Kelantan ADSL 21 252 30 282
6 Machang Kelantan ADSL 13 320 9 329
7 Tumpat Kelantan ADSL 8 188 8 196
8 Alor Gajah Malacca ADSL 47 1,082 30 1,112
9 Bentong Pahang ADSL 29 534 39 573
10 Hulu Perak Perak ADSL 45 777 57 834
11 Pitas Sabah ADSL 11 980 24 1,004
12 Betong Sarawak ADSL, CDMA, VSAT 17 884 22 906
13 Kapit Sarawak ADSL, VSAT 2 50 2 52
14 Matu Sarawak ADSL, CDMA 8 557 30 587
15 Mukah Sarawak ADSL, CDMA, VSAT 18 596 5 601
16 Saratok Sarawak ADSL, CDMA 12 479 30 509
17 Sarikei Sarawak ADSL, CDMA, VSAT 30 715 23 738
18 Serian Sarawak ADSL, CDMA 10 461 14 475
19 Hulu Selangor Selangor ADSL 35 10,353 68 10,421
20 Kuala Langat Selangor ADSL 12 675 16 691
21 Kuala Selangor Selangor ADSL 23 1484 16 1500
22 Pontian Selangor CDMA 26 381 23 404
23 Sabak Bernam Selangor ADSL 13 931 25 956
24 Dungun Terengganu ADSL 17 819 34 853
25 Besut Terengganu ADSL 50 753 27 780
26 Jeli Kelantan ADSL 24 951 22 973
27 Lipis Pahang ADSL, CDMA 561 27 588
28 Marang Terengganu ADSL 7 541 33 574
Total 535 27,152 665 27,817
136
Appendix 13
Details of Communication Tower Project Rollout (East West Highway)
No. of Lines
Tower
No Tower Location District Individual Collective
Height Total Lines
Lines Lines
1 Gunung Inas Baling 75m 6 3 9
2 Kampung Bukit Buloh Hulu Perak 75m 12 2 14
3 Gunung Paku Hulu Perak 75m 37 2 39
4 Kg Ayer Kangar Hulu Perak 75m 112 2 114
5 Kg Ayer Musang Hulu Perak 75m 25 2 27
6 Kg Pahat Hulu Perak 75m 175 2 177
7 Gadang Hulu Perak 75m 6 2 8
8 Tenok Hulu Perak 75m 6 2 8
9 Cheruan Hulu Perak 90m 6 2 8
10 Palok Hulu Perak 90m 6 2 8
11 Banding 2 Hulu Perak 75m 37 2 39
12 Temenggor New Hulu Perak 75m 0 3 3
13 Sungai Banun Hulu Perak 75m 31 2 33
14 Mendelum Hulu Perak 75m 0 3 3
15 R&R Titiwangsa Hulu Perak 75m 6 2 8
16 Charas 1 Hulu Perak 75m 6 2 8
17 Sungai Belang Hulu Perak 90m 6 2 8
18 Damai Jeli 75m 33 2 35
19 Sungai Mekong Jeli 90m 8 2 10
20 Kolam Air Panas Pergau Jeli 75m 7 2 9
Total 525 43 568
Appendix 14
SKMM Events for 2007
137
SKMM Events for 2007 (cont’d)
138
Appendix 15
1 National Economic Action Council (NEAC) Working Visit to India India 4-11 Jan
2 APT Seminar on WRC-07 Agenda Items Focusing on IMT, Satellite and Bangkok, Thailand 7 Jan
Aeronautical Spectrum Issues
3 4th Meeting of the APT Conference Preparatory Group for WRC 2007-4 Bangkok, Thailand 8-12 Jan
(APG2007-4)
4 Malaysia-US FTA Negotiations San Francisco, USA 8-12 Jan
5 Interim Meeting of the APT Wireless Forum Bangkok, Thailand 13 Jan
6 Pacific Telecommunications Council (PTC) 2007 Honolulu, Hawaii 14-17 Jan
7 China-ASEAN High-ranking Seminar on Universal Service and Beijing, China 18-19 Jan
Communications in Rural Area
8 Workshop on “Regulatory and Financial Innovations Toward Universal Manila, 22-23 Jan
Broadband” The Philippines
9 782nd FACSMAB Meeting Singapore 25 Jan
(Virtual Meeting)
10 Workshop on the Regulation of Broadcasting in Indonesia: A Review of Wollongong, 31 Jan-2 Feb
the First Three Years Australia
11 4th Annual Meeting of the Regulators’ Association (RRA-07) Dubai, UAE 4 Feb
12 ITU 7th Annual Global Symposium for Regulators (GSR) Dubai, UAE 5-7 Feb
13 Malaysia-US Free Trade Agreement Negotiations Karambunai, Sabah 5-9 Feb
14 3GSM World Congress Barcelona, Spain 12-15 Feb
15 783rd FACSMAB Meeting Malaysia (Virtual 15 Feb
Meeting)
16 ITU 2nd Conference Preparatory Meeting for World Radiocommunication Geneva, Switzerland 19 Feb-2 Mar
Conference 2007 (CPM07-2)
17 8th Workshop on ASEAN-Australian Development Cooperation Programme Vientiane, 28 Feb-2 Mar
(AADCP) – Legal Infrastructure for e-Commerce in ASEAN Laos PDR
18 World Dialogue on Regulation Expert Forum on ICT Sector and Singapore 2-3 Mar
Regulatory Performance Indicators
19 The 35th AIC Conference – Realising NGN Towards Next Asian ICT Saitama, Japan 5-9 Mar
20 Minister’s Study Visit to Hong Kong Hong Kong, Chinese 5-11 Mar
Taipei
21 Asia PKI Forum Beihai City, China 6-7 Mar
22 ASEAN-Australia-New Zealand Free Trade Agreement Negotiations Wellington, New 6-8 Mar
Zealand
23 Canada/AIBD Regional Seminar on Broadcasting and Cultural Diversity Kuala Lumpur 8-10 Mar
24 22nd Meeting of the OECD-WPISP Paris, France 12-13 Mar
25 12th ASTAP Forum Thailand 12-15 Mar
26 APT-ITU Workshop on NGN Planning Thailand 16-17 Mar
27 Preparation meeting for JCC Joint Measurements for broadcast channels Kuching 19-21 Mar
between Malaysia and Indonesia for Kalimantan border
28 784th FACSMAB Meeting Brunei Darussalam 22 Mar
29 GAC and ICANN Lisbon, Portugal 26-30 Mar
30 ITU-T SG 3 Meeting on tariff and accounting principles including related Geneva, Switzerland 23-30 Mar
telecommunication, economic and policy issues
31 IDA-SKMM Bilateral Exchange Kuala Lumpur 25-27 Mar
32 Conference on “Regulation in the Era of Convergence” Sharm El Sheikh, 27-29 Mar
Egypt
33 13th JTC Meeting between Malaysia and Thailand Johor Bahru 27-29 Mar
34 4th ASEAN Digital Broadcasting Seminar Kuala Lumpur 29 Mar
35 ASEAN TELSOM Working Groups Meeting Singapore 2-5 Apr
36 Prep. meeting for JCC Joint Measurement for broadcast channels at Kota Kinabalu/ 16-19 Apr
Sarawak/Kalimantan border Tawau
139
International Meetings and Other Activities in 2007 (cont’d)
37 YB Minister’s Working Visit to the Republic of Korea Seoul, Republic of 16-19 Apr
Korea
38 Satellite Coordination Meeting between the Administrations of Malaysia Japan 16-20 Apr
and Japan
39 Malaysia-US Free Trade Agreement Negotiations Washington D.C., 18-19 Apr
USA
40 50th Coordinating Committee of Services (CCS) Meeting Manila, The 18-20 Apr
Philippines
41 785th FACSMAB Meeting Cyberjaya 19 Apr
42 APEC TEL 35 Manila, 21-27 Apr
The Philippines
43 JCC Joint Measurement for broadcast channels at Sarawak/Kalimantan (Sarawak) Tebedu, 23-27 Apr
border Serian; Lubok Antu
& Ba’ Kelalan, Lawas
44 UPU 2007 Postal Operations Council (POC) Meeting Berne, 23 Apr-4 May
Switzerland
45 3rd APT Operator’s Forum Macau, China 25-27 Apr
46 ASEAN Special TELSOM Meeting Langkawi, Malaysia 2-4 May
47 2007 Taipei Summit – Asia-Pacific WiMAX Conference and Exhibition Taipei, Taiwan 13-15 May
48 WiMAX Asia 2007 Singapore 15-17 May
49 APT Asia-Pacific Forum on Telecommunications Policy and Regulation Kuala Lumpur 15-17 May
50 Regulators-Industry Dialogue and Investment Dialogue Kuala Lumpur 17-18 May
51 786th FACSMAB Meeting Kuala Lumpur 17 May
52 5th FACSMAB Review Meeting Kuala Lumpur 18 May
53 Satellite Coordination Meeting with the Administration of Russia Geneva, Switzerland 21-25 May
54 ITU WP 4-9s Meeting on Frequency sharing between the fixed- satellite Geneva, Switzerland 21-25 May
service and the fixed service
55 9th AMRI Conference Jakarta, Indonesia 22-25 May
56 JCC Joint Measurement for broadcast channels between Malaysia and Kalimantan Timur 28 May-1 Jun
Indonesia for Sarawak/Kalimantan border
57 ATRC WG Meeting Cyberjaya 5-7 Jun
58 Asia-Pacific Technical Regulators-Broadcasters’ Forum and ABU Kuala Lumpur 11-13 Jun
Preparatory Seminar on WRC-07
59 ITU-R WP 1A Meeting on spectrum engineering techniques Geneva, 11-15 Jun
Switzerland
60 ITU-R WP 1C Meeting on spectrum engineering techniques Geneva, 11-15 Jun
Switzerland
61 YB Minister’s Working Visit to Japan Japan 17-20 Jun
62 ITU-R SG1 Meeting on Spectrum Management Geneva, Switzerland 18-19 Jun
63 12th WHO International Advisory Committee (IAC) Meeting and Workshop Geneva, Switzerland 18-21 Jun
on “Developing and Implementing Protective Measures for ELF EMF”
64 IMBX 2007 Singapore 18-22 Jun
65 Malaysia-Indonesia-Singapore Trilateral Meeting Singapore 19-20 Jun
66 LS Summit 2007 Lichtenau, Germany 20 Jun
67 ASEAN Information Seminar Series on Digital Broadcasting Opportunities Singapore 21 Jun
in ASEAN
68 787th FACSMAB Meeting Singapore 21 Jun
69 12th Asia-Pacific Regulatory Roundtable Singapore 21-23 Jun
70 GAC and ICANN San Juan, 24-29 Jun
Puerto Rico
71 Satellite coordination meeting between the Administrations Malaysia and Paris, France 25-29 Jun
France
72 The 13th ASEAN Telecommunications Regulatory Council (ATRC) Meeting Bohol, Philippines 3-5 Jul
73 ITU Regional Seminar on Costs and Tariffs and Regional Meeting of Tariff Seoul, Republic of 3-6 Jul
Group for Asia and Oceania (TAS) Korea
74 3rd Phase of the JCC Joint Measurement for broadcast channels between Kalimantan Barat 9-13 Jul
Malaysia and Indonesia for Sarawak/Kalimantan border
140
International Meetings and Other Activities in 2007 (cont’d)
75 The 6th Botnet Task Force Meeting Sydney, Australia 10-12 Jul
76 International Spectrum Conference Seoul, Republic of 13 Jul
(held in conjunction with APG2007-5) Korea
77 5th Meeting of the APT Conference Preparatory Group for WRC 2007 Busan, Republic of 16-21 Jul
(APG2007-5) Korea
78 Preparatory Meeting for the 4th Phase of the JCC Joint Measurement Kota Kinabalu/ 17-19 Jul
for broadcast channels at Sabah/Kalimantan border Tawau, Sabah
79 ASEAN-China Info-Superhighway Working Group Meeting Brunei Darussalam 18-19 Jul
80 4th Phase of the JCC Joint Measurement Tawau,Sabah 23-27 Jul
for broadcast channels at Sabah/Kalimantan border
81 9th Prepaid Mobile Asia 2007 Singapore 24-26 Jul
82 788 FACSMAB Meeting
th
Brunei Darussalam 26 Jul
83 ASEAN IPv6 Workshop Penang, Malaysia 30-31 Jul
84 ASEAN Universal Service Obligation Workshop Phnom Penh, 31 Jul
Cambodia
85 APT Wireless Forum Jakarta, Indonesia 31 Jul-3 Aug
86 e-India 2007 New Delhi, India 31 Jul-4 Aug
87 4th International Conference of the Asia-Pacific Internet Research Alliance Cyberjaya 7-9 Aug
(APIRA)
88 5th Meeting of the Joint Committee on Communications (JCC) between Bali, Indonesia 8-10 Aug
Republic of Indonesia and Malaysia
89 The 2007 International Conference on Technology, Industry and Bangkok, Thailand 19-21 Aug
Regulatory Development (ICTIR)
90 8th TELSOM & 7th TELMIN Siem Reap, 20-25 Aug
Cambodia
91 789th FACSMAB Meeting Cyberjaya 23 Aug
92 ITU Regional Workshop on Frameworks for Cybersecurity and Critical Hanoi, Vietnam 28-31 Aug
Information Infrastructure Protection (CIIP)
93 ITU Council 2007 Geneva, Switzerland 3-14 Sep
94 BIMP EAGA Telecommunication Operators Meeting (WG on ICT) Manado, 5-6 Sep
North Sulawesi,
Indonesia
95 TAU Project Implementation Regional Workshop on Finding Yogyakarta, 7-8 Sep
Telecommunication Solution for Rural Community Development in the Indonesia
ASEAN Region
96 APT Asia-Pacific Telecommunications and ICT Development Forum Tokyo, Japan 10-12 Sep
97 27th APT Study Groups Meeting Kathmandu, Nepal 18-20 Sep
98 790th FACSMAB Meeting Singapore 20 Sep
99 Ultra Mobile Broadband (UMB) Seminar Hong Kong 20-21 Sep
100 5th CTO Forum Montego Bay, 24-28 Sep
Jamaica
101 13th ASTAP Forum Chiang Mai, 1-4 Oc
102 APT 1st Preparatory Meeting for the WTSA-08 Thailand 5 Oc
103 ITU-T Study Group 3 Meeting on tariff and accounting principles including Geneva, Switzerland 2-9 Oc
related telecommunication, economic and policy issues
104 Telecom and Broadcasting Regulatory Forum: “ Re-engineering the Taipei, Taiwan 3-4 Oc
Regulation”
105 Radiocommunications Assembly 2007 Geneva, Switzerland 15-19 Oct
106 The 4th ASEAN Regional Forum Seminar on Cyber Terrorism Busan, Republic of 16-19 Oct
Korea
107 791st FACSMAB Meeting Singapore (Virtual) 18 Oct
108 International Institute of Communications (IIC) Regulatory Roundtable London, UK 20-23 Oct
and Annual Conference
109 36th APEC TEL Meeting Santiago, Chile 22-26 Oct
110 World Radiocommunications Conference 2007 Geneva, Switzerland 22 Oct–16 Nov
111 1st BIMP-EAGA ICT Conference Davao City, 23-24 Oct
Philippines
141
International Meetings and Other Activities in 2007 (cont’d)
112 ITU Sub-Regional Telecommunications Meeting for CLMV Vientiane, Lao PDR 23-25 Oct
113 ITU Regional Seminar on Establishing New Regulators 26-27 Oct
114 Meeting on ASEAN ICT Fund Disbursement Jakarta, Indonesia 24 Oct
115 Global Trust Center International Council Meeting Malmo, Sweden 24-25 Oct
116 VoIP ASIA 2007 Kuala Lumpur 24-25 Oct
117 Meridian 2007 Conference and Meeting Stockholm, Sweden 24-26 Oct
118 GAC & ICANN Meetings Los Angeles, USA 27 Oct-2 Nov
119 UPU 2007 Council of Administration Meeting Berne, Switzerland 29 Oct-9 Nov
120 CASBAA Convention & Regulatory Roundtable 2007 Hong Kong 30 Oct-2 Nov
121 1st ASEAN-China USO Forum Chengdu, China 5-7 Nov
122 ASEAN-China ICT Workshop on Deployment and Application of Wuhan, China 5-16 Nov
Broadband Access
123 ITU-ESCAP Workshop on Indicators for Asia and the Pacific Thailand 6-8 Nov
124 Study visit to ICSTIS London, UK 9 Nov
125 Internet Governance Forum (IGF) Rio de Janeiro, 12-15 Nov
Brazil
126 ITU Regional Conference on “Sharing experience on best practices in ICT Cairo, Egypt 13-15 Nov
services for persons with disabilities”
127 1st Meeting of the Conference on Preparatory Meeting for WRC 2010 Geneva, Switzerland 19-21 Nov
128 36th AIC Conference Manila, 19-23 Nov
Special Session on “NGN Technologies and Applications: Realizing The Philippines
Universal Access to Information and Telecommunications Infrastructures
and Services”
129 Workshop on Telecommunications Trade Rules & Regulatory Disciplines, Bali, Indonesia 20-22 Nov
Indonesia
130 792nd FACSMAB Meeting Virtual Meeting 22 Nov
chaired by Brunei
131 Satellite Coordination Meeting between the Administrations of Malaysia Mainz, Germany 21-23 Nov
and Germany
132 Satellite Coordination Meeting between the Administrations of Malaysia Luxembourg 26-27 Nov
and Luxembourg
133 31st Session of the Management Committee of the APT Seoul, Republic of 27-30 Nov
Korea
134 APPU Executive Council Meeting New Delhi, India 27 Nov-1 Dec
135 Coordination Meeting between Malaysia and Brunei telecom operators on Labuan 29 Nov
frequency and interference issues along the common border
136 Seminar on ENUM and NGN Kuala Lumpur 3 Dec
137 ASEAN-China Workshop on Conformity Assessment of Telecommunication Beijing & Shenzhen, 3-14 Dec
Equipment China
138 Conference on UPU Postal Strategy Guangzhou, China 4-6 Dec
139 ASEAN-Republic of Korea Broadcasting Cooperation Workshop Seoul, Republic of 4-9 Dec
Korea
140 2007 ALIN International Academic Conference on Bangkok, Thailand 6-7 Dec
“Asia’s emerging law in the Digital Age”
141 Third World Electronic Media Forum (WEMF3) on “A New Vision of Kuala Lumpur 10-11 Dec
Broadcasting in the Information Society”
142 Global Forum on Effective Use of Telecommunications/ICT for Disaster Geneva, Switzerland 10-12 Dec
Management: Saving Lives
143 ITU World Telecommunication Indicators/Community Access Meeting Geneva, Switzerland 13-15 Dec
144 JCC Special Meeting on DTTB planning along Malaysia-Indonesia border Kuala Lumpur 17-19 Dec
with DGPT
145 793rd FACSMAB Meeting Singapore 27 Dec
142
List of Figures
143
Fig. 3.10 Fixed Line Revenue Share 2006
Fig. 3.11 Fixed Line Revenue Share 2007
Fig. 3.12 Domestic Cellular Mobile Revenue Share 2006
Fig. 3.13 Domestic Cellular Mobile Revenue Share 2007
Fig. 3.14 Domestic and Overseas Cellular Mobile Revenue Share 2006
Fig. 3.15 Domestic and Overseas Cellular Mobile Revenue Share 2007
Fig. 3.16 ASTRO Subscription and Advertising Revenue FY 2004-2008
Fig. 3.17 ASTRO Subscription and Advertising Revenue 1Q-3Q FY 2008
Fig. 3.18 RTM Radio and TV Revenue Comparison
Fig. 3.19 Pos Malaysia Postal and Related Services Revenue 2004-2007
Fig. 3.20 Top 10 Courier Services Companies Revenue Market Share 2006
Fig. 3.21 Top Ten Courier Services Companies by Revenue
Fig. 3.22 Fixed Line Capex versus Mobile Capex 1982-2007
Fig. 3.23 C&M Capex Market Share 2006
Fig. 3.24 C&M Capex Market Share 2007
Fig. 3.25 Number of MSC Malaysia Companies 1996-2007
Fig. 3.26 MSC Malaysia Status Companies Breakdown by Technology Cluster 2007
Fig. 3.27 Cybercities and Cybercentres
Fig. 3.28 Intellectual Property in MSC Malaysia by Category
Fig. 4.1 Fixed Line Demand and Penetration Rate
Fig. 4.2 DEL Connections Residential versus Business
Fig. 4.3 DEL Connection Residential versus Business Growth
Fig. 4.4 DEL Connections by Operators
Fig. 4.5 TM Net EZnet
Fig. 4.6 Internet (Dial-Up) and Penetration Rate
Fig. 4.7 Internet Users per 100 Inhabitants, Selected Countries 2006
Fig. 4.8 Internet (Dial-Up) Growth Rate
Fig. 4.9 Broadband Growth Rate
Fig. 4.10 Internet Service Providers
Fig. 4.11 Broadband Subscribers by Technology
Fig. 4.12 MyICMS 886 Targets
Fig. 4.13 Number of Broadband Subscriptions by Technology 2007
Fig. 4.14 Broadband Growth Rates
Fig. 4.15 Asia-Pacific Broadband Penetration by Population
Fig. 4.16 Asia-Pacific Broadband Penetration by Household
Fig. 4.17 Hotspots by State 2007
Fig. 4.18 Number of Hotspots by State
Fig. 4.19 Selected Hotspot Services
Fig. 4.20 WiMAX Networks by Operator, Selected Countries
Fig. 4.21 Broadband Packages Offered by Operators
Fig. 4.22 VoIP Service and Packages
Fig. 5.1 Cellular Mobile Penetration Rate
Fig. 5.2 Cellular Mobile Subscribers
Fig. 5.3 Cellular Mobile Subscribers Growth
Fig. 5.4 Cellular Mobile – Prepaid and Post-paid Subscribers
Fig. 5.5 Cellular Mobile – Prepaid and Post-paid Market Growth
Fig. 5.6 Cellular Phone Subscribers by Service Providers (2003 to 2007)
Fig. 5.7 Cellular Mobile Subscribers Market Share 2007
Fig. 5.8 Consolidation of the Malaysian Mobile Market
Fig. 5.9 Mobile Applications by Speed Range (downlink); HSDPA Subscriptions
Fig. 5.10 Phases of Implementation of MNP in Malaysia
Fig. 5.11 Public Inquiry Result
Fig. 5.12 Time 2 Programme – Progress report
Fig. 5.13 Time 2 Programme – Progress Report by State
Fig. 5.14 Time 2 Programme – Progress Report by Celco
144
Fig. 5.15 Time 2 Expansion – Progress Report
Fig. 5.16 Best State-backed Company Award Winner
Fig. 5.17 Best Celco Award Winner
Fig. 5.18 Newspaper and Date Published
Fig. 5.19 Blind Spots and Dropped Calls Report
Fig. 6.1 FTA TV Advertising Revenue versus Growth
Fig. 6.2 FTA TV Advertising Revenue 2004-2007
Fig. 6.3 FTA TV Stations Revenue and Growth
Fig. 6.4 Radio Adex 2001-2007
Fig. 6.5 Radio Advertising Revenue Market Share 1999 and 2000; 2007
Fig. 6.6 Radio Advertising Revenue by RTM Stations 1999 and 2000
Fig. 6.7 Radio Advertising Revenue by Stations 2007
Fig. 6.8 Direct-To-Home Penetration Rate
Fig. 6.9 ASTRO Subscribers and Churn Rate
Fig. 6.10 SAC per Set-Top Box Sold
Fig. 7.1 Pos Malaysia Berhad Corporate Development
Fig. 7.2 Country-Average No. of Letter Post Items Posted per Inhabitant
Fig. 7.3 Issues Approved by Malaysian Postal Service
Fig. 7.4 Revenues versus Staff 2001-2006
Fig. 7.5 Average Revenue per Staff
Fig. 7.6 Countries of Total Number of Advertising Items – Domestic
Fig. 7.7 Addressed Advertising Items – Domestic Services 2006
Fig. 7.8 Number of Boxes and Post Office Boxes
Fig. 7.9 Number of Motorcycles, Trucks and Automobiles
Fig. 7.10 Traditional versus Hybrid Mail
Fig. 7.11 PosLogistik Services
Fig. 8.1 Number of Courier Licences
Fig. 8.2 Courier Licences Growth 2002-2007
Fig. 8.3 Top 10 Courier Providers by Revenue 2001-2006
Fig. 8.4 Top 10 Courier Provider by Revenue 2006
Fig. 8.5 Total Revenue Top Ten Courier Provider 2001-2006
Fig. 8.6 Courier Traffic 2004-2006
Fig. 9.1 Components of Digital Signature
Fig. 9.2 Categories of Issuance of Digital Certificates
Fig. 9.3 Digital Signatures by Type (2002-2007)
Fig. 9.4 Digital Certificate Annual Growth
Fig. 10.1 Services Under QoS MS
Fig. 10.2 Complaints Received 2007
Fig. 10.3 Number of Complaints Receive and Resolved
Fig. 10.4 Number of Complaints Received by Month in 2007
Fig. 10.5 Number of Complaints by Category
Fig. 10.6 Number of Complaints by Type
Fig. 10.7 Number of Cases 2005-2007
Fig. 10.8 CMCF Activities
Fig. 10.9 Breakdown of Complaints by Media Content Category
Fig. 10.10 Number of Cases and Advisory Matters
Fig. 10.11 Summary of Frequency for Interface between CMCF and Authorities
Fig. 10.12 CMCF members in 2007
Fig. 11.1 Public Library Marang Branch
Fig. 11.2 USP Communications Centre
Fig. 11.3 USP Phase 2
Fig. 11.4 USP Phase 3
Fig. 11.5 Communications Towers along East West Highway
Fig. 11.6 Telekom Malaysia Berhad (TM) Tower
Fig. 11.7 SKMM Chairman officiated USP Projects
Fig. 11.8 Performance Assessment of USP Service Providers
145
Contact Us
146
Suruhanjaya Komunikasi dan Multimedia Malaysia
Malaysian Communications and Multimedia Commission