Telco Deep Dive: Interesting times ahead for broadband
On May 26, Digital News Asia (DNA) released its first Deep Dive file, which looked at the telecommunications space in Malaysia. Over those subsequent two weeks, we can be publishing the articles from the PDF file on our portal, plus different memories. To down load the Telco Deep Dive, click here. In this article, Goh Thean Eu looks at Malaysia’s broadband panorama and its challenges.
- Malaysian broadband has evolved from the 512Kbps country of 10 years in the past
- Room for improvement if we need to be on par with Singapore and Hong Kong
THE Malaysian broadband industry, which has been developing gradually over the last decade, is expected to go through interesting times beforehand as services companies compete for ever-changing customer desires.
Today’s Internet users demand extra stability and pace, in place of mere insurance. Some users might also check out value-delivered offerings which include Internet Protocol TV (IPTV) before finding out which broadband package deal to buy into.
The Malaysian broadband panorama has evolved quite from the nation 10 years in the past. Back then, Telekom Malaysia Bhd (TM) become offering 512 Kbps packages. Downloading a tune could have taken numerous mins, whilst downloading a whole film became exceedingly remarkable.
Also, the country’s broadband family penetration then can also have been beneath 10%, an assumption based on the 2007 and 2008 family broadband penetration prices, which were at 15.2% and 21.1%, respectively.
Today however, maximum Malaysian households are playing download speeds of up to 20 Mbps. A easy record might take only a few seconds to be downloaded, and Internet customers aren't simplest simply downloading movies, but entire TV series as well.
Meanwhile, Malaysia’s broadband penetration rate, as of December 2013, is at 67.1%. In Kuala Lumpur (apart from Putrajaya), broadband penetration has surpassed 111%. Selangor and Penang, which might be the various extra industrialised states, have broadband penetration charges of about 80%.
Although TM still remains the dominant participant, the fixed-line operator is dealing with opposition on all fronts – from different fixed-line providers to cell operators.
However, TM does now not appear to be taking its fixed-broadband dominance as a right. Recently, it introduced plans to collect a controlling stake in wireless broadband operator Packet One Networks (Malaysia) Sdn Bhd or P1, as part of its ordinary ambition to be a ‘full suite’ service company.
“This is in keeping with TM’s imaginative and prescient of being an ‘Information Exchange’,” stated TM organization chief govt officer Zamzamzairani Mohd Isa at some point of the statement of the TM-P1 deal.
Over the close to to medium term, TM could be competing fiercely with other large boys like TIME dotCom Bhd and Maxis Bhd inside the fixed-broadband section on my own.
Competition with TIME will most probable involve the customer and business segments in decided on geographical areas.
“Maxis, on the other hand, might be a severe competitor for TM. Using TM’s backhaul, it could doubtlessly provide constant broadband offerings to clients wherein TM has a presence in,” said Edmund Tham, head of studies at Mercury Securities, when contacted through Digital News Asia (DNA).
With the increasing competition among fixed and wireless offerings vendors, and the increasing call for for exceptional bandwidth via clients, users in Malaysia ought to expect better days in advance.
This could also result in Malaysia appearing better in its next broadband speed survey. About weeks before World Telecommunications Day, a survey conducted by using Ookla caught most Malaysian telecommunications corporations and government with the aid of wonder.
The survey found out that the common broadband speed in Malaysia is slower than in Vietnam or Cambodia. It ranks Malaysia at 126 out of 192 nations surveyed.
While the survey may not be a true reflection of Malaysian broadband speeds, with industry regulator the Malaysian Communications and Multimedia Commission disputing Ookla’s methodology, it was however a sign that a lot development continues to be wanted before Malaysia can be on par with evolved markets such as Singapore and Hong Kong.
It may be a long-haul mission before Malaysia can turn out to be a broadband powerhouse, but, as there are widespread quantities of the us of a nevertheless disadvantaged of quality broadband get admission to.
As of stop-2013, Kelantan, which is one of the least developed states in Malaysia, had a family broadband penetration price of 41.nine%. The East Malaysian states of Sabah and Sarawak had broadband penetration fees of fifty three.eight% and fifty three.5% respectively.
“One location that seriously needs to be seemed into is rolling out broadband within the rural parts of Malaysia,” stated Tham.
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