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CONTENTS
MESSAGE FROM THE CHAIRMAN
5
CHAPTER 1 EXECUTIVE SUMMARY
7
CHAPTER 2 ECONOMIC PERFORMANCE OF THE INDUSTRY
Malaysian GDP: 4.6% in 2008
Contribution of the Communications and Multimedia Companies
to the Bursa Malaysia
Overview of the Communications and Multimedia Industry’s Revenue
Revenue of Telecommunications Companies
Revenue of Broadcasting Companies
Revenue of Postal Services
Revenue of Digital Signature Companies
An Overview of SKMM Licensees on the MESDAQ Market
Malaysian Advertising Expenditure (Adex) 2008
Adex Market Share
Compound Annual Growth Rate (CAGR) of Adex 1988 – 2008
Adex from Broadcast, 2008
CHAPTER 3 11
12
14
15
18
21
22
23
25
26
27
27
OVERVIEW ON THE COMMUNICATIONS AND MULTIMEDIA INDUSTRY
29
30
32
34
35
35
36
37
38
38
39
40
41
42
43
45
46
46
48
48
49
51
52
54
55
57
59
SURUHANJAYA KOMUNIKASI DAN MULTIMEDIA MALAYSIA
The Regulatory Framework in the Malaysian Communications
and Multimedia Industry
Licensing in 2008
Development of the Communications and Multimedia Industry
Revenue of the Communications and Multimedia Industry Services
by Market Segment
Fixed Line Services Segment
Cellular Mobile Services Segment
Broadcasting-Subscription Television Segment
Capital Expenditure (Capex) Trend for the Communications
Fixed Line Connection
Direct Exchange Line (DEL)
Domain Name Registration
Cellular Mobile Services
Growth of Prepaid and Postpaid Subscribers Market Share of Cellular Phone Connections
Mobile Number Portability
Development of Broadcast in Malaysia
Broadcast Revenue Revenue of Free-to-Air Television (FTA TV) Developments of Free-to-Air Television (FTA TV) in 2008
New Areas, Service or Developments of Free-to-Air Television
(FTA TV) in 2009
Radio Revenue Radio Developments in 2008
Direct-to-Home (DTH) Satellite Pay Television
Developments of Direct-to-Home (DTH) in 2008
Postal Services
Direct Mail
Courier Business
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CONTENTS
CONTENTS
CHAPTER 4 CHAPTER 5 COMMUNICATIONS AND MULTIMEDIA (C&M) INDUSTRY
DEVELOPMENTAL OVERVIEW
(To Solidify the Future) – Services and Infrastructure 65
66
68
71
73
77
79
81
83
84
84
85
88
89
89
89
93
93
100
100
Networked Content Development
Foreign Ventures in 2008
Alignment with International Developments
Network Security Development
Going Green: Green Energy and Computing 102
102
109
109
110
111
112
113
118
123
129
132
132
132
CHAPTER 6 CONSUMER PROTECTION
Quality of Service Consumer Satisfaction Survey (CSS)
CSI Scores by Product Category (Consumer) 2007
CSI Scores by Product Category (Commercial) 2007
Observations
Consumer Complaints
Rates Monitoring
Content Regulation (Complaints) Enforcement 137
138
139
140
141
141
143
145
147
CHAPTER 7 GOING FORWARD – AN OUTLOOK
153
APPENDIX
156
LIST OF FIGURES
180
CONTACT US & SECRETARIAT INFORMATION 186
High Speed Broadband (HSBB)
Regional Comparisons
Broadband Development in Malaysia
3G and Beyond 3G Bandwidth and Mobile Developments Wireless Fidelity (Wi-Fi)
Worldwide Interoperability for Microwave Access (WiMAX)
Selected Voice over Internet Protocol (VoIP) Service and Packages
Home Internet Adoption
Digital and Interactive Multimedia
Mobile TV Internet and Internet Protocol TV (IPTV)
Digital Homes
Information and Network Security
Network Security Centre (NSC)
Digital Signature
Competence Development
Spectrum Research Collaboration
New Media Research Collaboration
ICT Centre of Excellence
Rural Community Asia-Pacific – Universiti Utara Malaysia
Center of Excellence (UUM CoE) Product Design and Manufacturing
Device Development
Digital Terrestrial Television (DTT) Receiver (Set-Top Box)
Smart Antenna at Universiti Teknologi Malaysia (UTM)
A Case in Point – VoIP Phones Malaysian Grown
A Case in Point – Home Grown HSDPA (Mobile) and WiMAX Devices Universal Service Provision (USP)
Nationwide Mobile Coverage
COMMUNICATIONS AND MULTIMEDIA (C&M) INDUSTRY
(To Solidify the Future) – Growth Areas
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MESSAGE FROM THE CHAIRMAN
It is my pleasure to present
to you the 2008 Industry
Performance Report. 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
(CMA) 1998.
Datuk Dr. Halim Shafie
The communications and multimedia industry in Malaysia
today is teeming with licensees from horizontal licensing
segments such as network facilities, network services,
applications services and content applications services.
All these licensed services are, I am glad to say, not tied to just
a single organisation, but because of the horizontal spread
of the licensing structure, it has allowed the entry of many
active participants, in contrast to the traditional vertically
integrated structure. In fact, this horizontal regulatory
structure has facilitated the transformation of the Malaysian
telecommunications sector, blurring traditional boundaries
in voice, online and video services to converge on a single
platform; yet actively encouraging competition in ways that
permit greater investments and heighten industry growth, as
evidenced by widening consumer choices in terms of new
and better services provided, and increased affordability.
With this in mind, it is indeed my pleasure to present to
you the SKMM Industry Performance Report for the year
2008. In this report, you will find communications and
multimedia industry trends and developments over the last
10 years since the introduction of the Communications and
Multimedia Act (CMA) 1998. 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 CMA 1998. 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.
The trials and tribulations of the past decade hold proof of
our nation’s ability to take stock of its commitments, and to
change gear to develop forward-looking communications
and multimedia infrastructure and skills in order to face
the challenges of tomorrow. At another level, our nation is
constantly striving to meet shifting goalposts – consequences
of the state of flux of the industry itself – of providing
consumers choices, creating consumer awareness, and
managing the provisioning of adequate services.
The communications and multimedia industry – comprising
the telecommunications, broadcasting, postal services as
well as the market in digital signatures – contributes about
6% to the GDP of the country. Accelerating the provisioning of
communications and multimedia services lends fundamental
support in terms of fast and efficient communications tools
The telecommunications sector in the country has achieved a
level of maturity that is expected to usher in a transformation
phase marked by differentiation of products and services
to suit the more discerning consumer who is increasingly
taking centre stage in the control of what, where, and when
to consume communications services.
Competition remains strong on the supply side, and the
user-friendly requirements of the consumer have catalysed
many innovations on the part of the service providers.
Communications services like mobile telephony is now in
Malaysia offering video services, while the wired services in
broadband are offering television channels in collaboration
with broadcasters. We will witness even more innovations in
the near horizon, as broadband and IP-based services get
established in the Malaysian market, offering unprecedented
cost savings and service versatility in an economic
environment that is demanding more green energy to sustain
earnings and provide better ways of living.
From the regulatory perspective, the three main strategic
focus areas are improving service delivery in the area of
quality, including regulatory compliance, and delivering
MyICMS 886 strategic targets – essentially Universal Service
Provision (USP); services rollout; and the development of
content and applications. Going forward, there will be many
challenges in ensuring timely rollout of new and innovative
services, especially under current uncertain global economic
conditions.
Nevertheless, amidst all these, one thing is certain – the good
relations and close collaboration for mutual benefit that have
been fostered over the years in nation building, especially
in the communications and multimedia arena – is expected
to continue. These time-tested qualities will undoubtedly
assist in moderating issues, and to solve problems as they
arise. Let us then continue to work together, both from the
Government and the private sector, including our consumers,
in continuing to spur communications and multimedia industry
development through clearly defined SKMM’s and industry’s
goals and to further operationalise MyICMS 886 strategic
thrusts and targets.
SKMM welcomes any comments, enquiries, suggestions
and feedback on the information presented in the Industry
Performance Report. SKMM’s contact details are listed on
the last page of this report. l
DATUK DR. HALIM SHAFIE
What is foresight if one does not have hindsight? The
communications and multimedia industry is now 10 years
old and still evolving. The IPR 2008 is conceived with the
aim to highlight the important trends of the past, which are
relevant to the understanding and purpose in Malaysia’s quest
for technology convergence, and its related processes, in
order to accelerate national competitiveness. The theme –
“Accelerating Communications and Multimedia Services to
Enhance National Competitiveness” – underlines the scope
of this report, and as such, it also provides a sneak preview
of forthcoming initiatives.
and ICT facilitators to assist many industry sectors, thus
contributing to domestic economic resilience.
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EXECUTIVE SUMMARY
CHAPTER 1
Malaysia is also facing slower growth in her economy, just
like the rest of the global community in facing the financial
crisis that is reverberating across the world. The hardest hit
are the economies of advanced nations such as the United
States and member countries of the European Union, where
continual sharp economic contractions have been felt since
early 2008. In Malaysia, the Government has been closely
monitoring and assessing the situation in order to take any
precautionary measures. Since the start of the financial
crisis last year, the Government has instituted two economic
stimulus packages. Against this backdrop, there has also
been a moderation in the Government’s stance on monetary
policies, as evidenced by the reduction in the Overnight
Policy Rate (OPR) to facilitate a more supportive financial
climate for domestic economic activities. As at end-2008,
Malaysia registered, as announced by Bank Negara Malaysia,
an economic growth rate of 4.6%.
Amidst the challenging financial environment, the market
capitalisation of the communications and multimedia
industry amounted to RM48.5 billion or 7.3% of the total
market capitalisation of public-listed companies on Bursa
Malaysia, in 2008. This comprised the major public-listed
communications and multimedia companies of integrated
telecommunications service providers, the broadcasters of
Free-to-Air television (FTA TV) and pay TV, as well as the
postal and courier service providers. The overall market
capitalisation on Bursa Malaysia declined 40% to RM664
billion in 2008, from RM1,106 billion in 2007.
The broadcasting sector, comprising a Direct-to-Home
(DTH) satellite pay TV operator, ASTRO All Asia Networks
plc, a FTA TV operator, Media Prima Berhad (Media Prima),
and Government-owned Radio Televisyen Malaysia (RTM),
garnered a combined annualised revenue of RM3.8 billion
in 2008 (2007: RM3.3 billion). This is a growth of 14.2% for
this sector. Currently, industry players within the broadcasting
The postal service sector, represented by Pos Malaysia
Berhad, contributed RM0.92 billion to the total revenue
generated by the communications and multimedia industry
in 2008 (2007: RM 0.86 billion). Revenue posted by the
Communications and Multimedia Act licensees listed on the
Malaysian Exchange of Security Dealings and Automated
Quotation (MESDAQ) Board of Bursa Malaysia cited a total
revenue of approximately RM0.6 billion in 2008.
Meanwhile, the digital signature market remained nascent.
However, the growth was relatively strong in the issuance
of digital signature certificates. In 2008, there were 2.03
million digital signature certificates issued, a 59% increase
from 2007 (2007: 1.28 million certificates). To further
create awareness and promote the use of digital signatures,
the Malaysian Communications and Multimedia Commission
(SKMM) organised a mobile digital symposium in Cyberjaya
in June 2008. The Symposium acted as a platform that
brought together all industry stakeholders to work towards
creating a viable ecosystem for a mobile digital signature
implementation.
On the domestic advertising front, advertising expenditure
(Adex) grew 5.5% in 2008 to an annualised RM5.8 billion
(2007: RM5.5 billion). Global advertising spending growth
for 2009 is forecasted to decline to 0.2%, due to the
impact of the global economic crisis, which in turn, reduced
the number of events that could garner high advertising
expenditure (Adex).
In terms of fixed line connection, the fixed line by
penetration rate is 15.4% as at end-2008 (2007: 15.8%).
The measurement is based on the Direct Exchange Line
(DEL) connections. The cellular mobile phone penetration in
the country reached 96.8% in 2008 from 85.1% in 2007.
Prepaid and postpaid subscribers ratio remained 80:20 in
2008, translating to 21.5 million subscribers and 5.6 million
subscribers for prepaid and postpaid respectively. Notably,
the growth of prepaid subscriptions declined by 10.8% in
2008, compared to a 20.5% growth in 2007. In contrast,
postpaid subscription growth was 43.6% in 2008 (2007:
14.7%). In 2008, market share based on subscribers saw
Maxis leading with 40.2%, Celcom at 32.6%, DiGi at 25.4%
and U Mobile at 1.8%. TM enhanced its popular iTalk prepaid
calling card by introducing iTalk Mobile Starter Pack, which
allows cellular mobile phone users to use iTalk in making
international and domestic calls at competitive rates
regardless of their registered network.
Overall in 2008, the communications and multimedia industry
revenue contributed 6.1% and 8.3% to the country’s Gross
Domestic Product (GDP) and Gross National Product (GNP)
respectively (2007: 5.9% and 7.7% respectively). Marked by
the persistently strong competitive environment, companies
within the industry garnered an aggregate revenue of RM40.8
billion in 2008, a growth of 10.3% compared to RM37 billion
in 2007. In addition, growth in 2008 was supported by
revenue from overseas operations, which contributed 22.6%
to the communications and multimedia aggregate revenue
(2007: 19.1%). Some of the biggest players such as Telekom
Malaysia Berhad (TM) and Maxis Communications Berhad
(Maxis) have already established themselves overseas in
the last few years and are continuing their foray into growth
markets, with their overseas investments already contributing
to their revenues.
sector are also pursuing developments of digital TV
implementation and new products, such as downloadable
TV shows through the Internet and mobile devices (in pilot
and trial modes respectively).
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CHAPTER 1
CHAPTER 1
EXECUTIVE SUMMARY
(Continued)
EXECUTIVE SUMMARY
(Continued)
to watch selected highlights of their favourite FTA TV
programmes streaming on their cellular mobile phones.
On wired platforms, Internet and IP television are also
available, albeit on a relatively small scale. Media Prima
introduced a Catch-up online TV service on the websites
of its TV stations while TM Net Sdn Bhd offered IPTV on a
limited basis in the Northern region of Peninsular Malaysia in
2008. RTM DTT trial is to be followed by a broader base trial
using RTM network platform with TM network assistance,
and including other stakeholders in the broadcast industry.
In order to realise the full impact of broadband connectivity
in Malaysia, the adoption of content and applications over
broadband access requires more effort. For example,
the Government, service providers and academia are
accelerating the development and promotion of digital home
concept and services. The Malaysian Multimedia University
(MMU), for example, designed and constructed a model
digital home, showcasing it for educational purposes and for
creating awareness in terms of usage and adoption.
The Malaysian Information, Communications and Multimedia
Service 886 (MyICMS 886), which is a national blueprint
for industry development acts as a catalytic driver from
various perspectives including for services, content and
application and the development of content and applications.
The Universal Service Provision (USP) programme was
established to effectively roll out basic telephony, Internet
and today broadband services throughout Malaysia in efforts
to bridge the digital divide. For content and applications
development, a high-level Integrated Content Task Force
(ICON) was set up to develop and raise the awareness for
content development. In addition, the Networked Content
Development Grant (NCDG) was also established by SKMM in
July 2007 to facilitate and encourage Malaysian involvement
in creation, production and distribution of creative and
marketable network content.
In parallel with the continued expansion of high-speed mobile
subscribers, the rollout of fibre services is underway. The
High Speed Broadband (HSBB) project, a private–public
sector collaboration between TM and the Government, was
given the green light for implementation at a cost of RM11.3
billion over a period of 10 years. Under the collaboration,
TM will invest RM8.9 billion while the Government allocates
RM2.4 billion towards the project. At the same time, the
In 2008, the SKMM survey on home Internet adoption
showed a consistent growth trend from 2005 to March
2008 across the respective states of Malaysia. Klang Valley
recorded the highest percentage of users at 39.1%. On the
development in digital and interactive multimedia, plans are
in place for mobile broadcast TV services, High Definition
Digital Terrestrial TV (HD DTT) broadcast trials, the switchover
from analogue to digital TV broadcast, and multichannel TV.
The switchover to digital is scheduled for 2015. Currently,
broadcasters in Malaysia have already leveraged on the
cellular mobile platform for mobile broadcast TV services.
For example, Media Prima is offering On-Demand MobileTV on Maxis network which allows Maxis 3G subscribers
One of the growth areas under MyICMS 886 strategy
highlighted in this report is content development. To spur
growth in this area, SKMM introduced the Networked
Content Development Grant (NCDG) programme. The initial
funding for the programme is at RM20 million, of which, over
RM4 million worth of content projects has been approved.
In addition, MyICMS 886 also introduced eight essential
infrastructures – both ‘hard’ and ‘soft’ infrastructures – to
support future development. One of them is competence
development, such as in the areas of spectrum management.
Other examples include new media research collaboration
and the establishment of Centres of Excellence (CoE) on
various key areas of the industry, such as IPv6 and rural
community development. Another ‘soft’ infrastructure
On the development of quality of service (QoS) standards, the
mandatory standards were in the fifth year of implementation
in 2008. As service quality and reliability is expected to be a
norm in a connected nation, compliance with standards must
be adhered to without compromise as with continuously
improvement of quality of service delivery. Concerted efforts
are needed to ensure standards that lead to customer loyalty
and reduction in churn in the long run.
An important development that is taking place is the content
monitoring function under the SKMM Content Regulation. With
more content going online, there has been an increase in the
number of complaints on online content. SKMM continues to
monitor and take enforcement actions towards offenders.
2008 saw 408 cases investigated, 23 offenders charged
and 107 compound cases.
Moving forward, as with other industries, the communications
and multimedia industry in Malaysia is also increasingly
concerned about energy conservation and carbon footprint
impact on the environment. According to recent studies, the
Information and Communications Technology (ICT) sector
contributes 2% to global warming. In response to efforts
in energy conservation, the local communications and
multimedia industry has taken the lead to reduce energy
and carbon dioxide (CO2) usage and emission respectively.
DiGi and ASTRO for instance have shown their support of
this green movement, and both have adopted green energy
efficiencies such as Green Computing and Environmental
Strategic Plan respectively. l
In terms of broadband connections, there were a total
of 1.7 million subscribers which translates to 21.1%
household penetration of broadband connection in 2008.
The 3G subscribers totalled 4.4 million in 2008 (2007: 1.6
million) and High Speed Downlink Packet Access (HSDPA)
subscribers quadrupled from 0.09 million subscribers in
2007 to 0.4 million in 2008.
Broadband for General Population (BGPP) initiatives, which
focus on user awareness, attractiveness and affordability
issues in providing broadband to the masses, were also
implemented. These initiatives were carried out by providing
incentives and facilitating facility-based competition that
involved the provision of various Digital Subscriber Line
(xDSL), Worldwide Interoperability for Microwave Access
(WiMAX) and 3G/HSDPA technologies to the masses. To
raise broadband awareness and to promote the takeup of broadband services, 73 community centres and
68 community broadband libraries were set up at a cost
of RM92 million and RM29.2 million respectively. The
implementation of ubiquitous library project is expected to
further promote broadband awareness and its adoption.
Meanwhile, WiMAX services in the country commenced on
August 2008, with Packet One Network (M) Sdn Bhd being
the first to launch, followed by three other players, namely
REDTone International Berhad, Y-Max Networks Sdn Bhd and
Asiaspace Sdn Bhd.
With more homes potentially connected by high-speed Internet
access, aspects of network security are being enhanced
through the setting up of the Network Security Centre at
SKMM. On a global scale, the Government has initiated the
establishment of the International Multilateral Partnership
Against Cyber-Terrorism (IMPACT) centre in Cyberjaya, and
reiterated its commitment to international initiatives related
to network security, including training.
identified by MyICMS 886 for development is product
design and manufacturing. One example of this is wireless
sensor technology, such as an RFID-based asset tracking
system. An RFID pilot project was conducted by the Ministry
of Energy, Water and Communications (KTAK) through the
National Centre for Wireless Sensor Technology at Universiti
Putra Malaysia (UPM). Other developments include projects
from local companies in devices development, such as
set-top box design and development amongst industry
stakeholders, smart antenna development by Universiti
Teknologi Malaysia (UTM) and home-grown devices such as
the VoIP phones by G Tek Electronic Sdn Bhd, and HSDPA
and WiMax devices by MSC-status company, CEEDTec
Sdn Bhd.
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ECONOMIC PERFORMANCE OF THE INDUSTRY
CHAPTER 2
MALAYSIAN GDP: 4.6% IN 2008
Despite the economic turmoil affecting most of the world’s economies – some bordering on or already facing recession –
Malaysia was comparatively less severely affected by the downturn in 2008. The economy recorded a positive but slower
growth, which was spurred by continued private and Government expenditures. The annual growth rate, however, was
notably lower at 4.6% in 2008, compared to 6.3% in 2007. Malaysia, being a key exporter to most developed countries, like
the United States, Japan, and Europe, felt the effects of slowing external demands for her products and services.
To prevent the economy from sliding into recession, the Malaysian Government announced plans to moderate the downturn
through economic stimulus measures totalling RM67 billion, in late 2008 and early 2009. Bank Negara Malaysia in March
2009 forecasted the GDP growth of Malaysia to be between –1% to 1% for the year 2009.
Selected Economic Indicators
CHAPTER 2
2007
(%)
Gross Domestic Product (2000 real prices) 5.9
6.3
Consumer Price Index (CPI) (2005 = 100)
3.6
2.0
5.5
–
Producer Price Index (PPI) (2000 = 100)
6.7
6.7
10.4
–
4.6(p)
2009(f)
(%)
-1.0 to 1.0
Unemployment Rate
3.3
3.2
3.5
3.2
Budget Deficit as % of GDP
-3.3
-3.2
-4.8
-4.8
Corporate Tax Rate (%)
11
2008
(%)
Per Capita Income (current prices) (RM)
Per Capita Income (current prices) (USD)
28
27
26
25
20,841
23,114
25,274
25,944
5,681
6,724
7,898
7,308
11,663
14,483
16,617
15,200
Contribution of the Communications and Multimedia Companies
to the Bursa Malaysia
12
Overview of the Communications and Multimedia Industry Revenue
14
Revenue of Telecommunications Companies 15
Revenue of Broadcasting Companies 18
Revenue of Postal Services
21
Revenue of Digital Signature Companies
22
An Overview of SKMM Licensees on the MESDAQ Market
23
Malaysian Advertising Expenditure (Adex) 2008
25
Bank Negara Malaysia
6.3
4.6
-1.0 to 1.0
Mar 2009
Adex Market Share
26
Malaysian Institute of Economic Research (MIER)
6.1
5.4
–
Jan 2009
27
Economic Intelligence Unit (EIU)
6.0
4.6
-3.0
Mar 2009
27
Malaysian Rating Corporation (MARC)
–
–
2.5
Jan 2009
Morgan Stanley Research
–
–
0.5
Dec 2008
Fitch Ratings
–
5.5
1.5
Mar 2009*
Per Capita Income by Purchasing Power Parity (USD)
(f) revised forecast by the Ministry of Finance (p) Preliminary
Source: Malaysian Economy Third Quarter 2008, Ministry of Finance Malaysia, December 2007, Annual Report 2008, Bank Negara Malaysia
Fig. 2.1 Selected Economic Indicators
2007
2008
Malaysian GDP Growth Forecasts
(%)
(%)
2009(f)
(%)
2009
Forecast
as at
(f) forecast
* New forecast expected in April 2009
Source: MIER, EIU, MARC
Fig. 2.2 Malaysian GDP Growth Forecasts
Come 2009, the Malaysian economy is expected to face the full effects of the global economic downturn. Overseas, the
growth for the emerging and developing economies like China, India and the some Asia-Pacific countries is also expected to
moderate albiet less severely. Overall, the financial crisis is expected to continue in 2009, and its repercussions felt even
beyond the year.
Malaysian GDP: 4.6% in 2008
2006
(%)
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CHAPTER 2
CHAPTER 2
(Continued)
(Continued)
2009 Economic Outlook
World
Institute of
International
Finance (IIF)
United States
Eurozone
Japan
2.0(f) -0.4(f)
1.2(f) -1.3(f)
0.9(f) -1.5(f)
3.4
0.5(f)
1.1
World Bank
2.5(e)
0.9(f)
1.4(e) -0.5(f)
1.1(e) -0.6(f)
United Nations
2.5 1.0 1.2 -1.0 1.1 -0.7 Fitch Ratings
India
Asia-Pacific
0.0(f) -1.2(f)
9.3(f)
6.5(f)
6.2(f)
5.0(f) 7.4(f)
(e)
(f)
3.6(e) -1.2(f)
Nil
Nil
(e)
-1.6(f) 1.0
(f)
(e)
-2.0(f) -0.3
(f)
-2.6(f)
6.7
8.0(f)
5.1
6.5(f) 2.7*
625
425
0.5(e) -0.1(f)
9.4(e)
6.5(f)
6.3(e)
5.8(f) 8.5†(e) 6.7†(f)
0.4 -0.3 9.1 8.4 7.5 7.0 (e)
(f)
(e)
(f)
(e)
(f)
Nil
722
640
695
640.8
579.1
664
761.4
621.6
615.3
Nil(e) -3.3(f) -0.1(e) -6.0(f)
9.4(e)
7.5(f)
Nil(e)
5.3(f)
7.6(e)
5.3(f)
1.4(f) -1.9(f)
1.3(f) -0.9(f) -0.7(f) -4.5(f)
9.0(f)
5.6(f)
6.5(f)
5.0(f)
3.7(f)
0.3(f)
Contributions of Individual Communications and Multimedia Companies to Bursa Malaysia in 2008
Communications &
Multimedia Sector
RM48.5 billion
60.9
2003
2004
73.7
87.3
2005
2006
Communications and Multimedia
69.5
48.5
2007
2008
Others on Bursa Malaysia
TM 1.7%
TMI* 2.0%
Note: Maxis market capitalisation is not included for 2007 and 2008 due to Maxis opting for delisting on 25 June 2007.
Source: Bloomberg, SKMM
Fig. 2.5 Market Capitalisation – Communications and Multimedia versus Bursa Malaysia
Communications and Multimedia Companies Market Capitalisation RM (billion)
2006
2007
2008
TM (after demerger)
TMI**
Maxis
DiGi
ASTRO
Pos Malaysia
Time
Media Prima
n.a.
n.a.
25.7
11.4
10.7
2.6
1.9
1.9
n.a.
n.a.
11.0
13.6
18.6
6.8
1.3
1.9
2.4
16.9
4.3
1.1
0.6
1.0
Total
54.2
31.0
48.5
Pos Malaysia 0.2%
Source: Bloomberg, SKMM
Fig. 2.4 Contributions of Individual Communications and Multimedia Companies to Bursa Malaysia in 2008
Telekom Malaysia Berhad (TM); *TM International Berhad (TMI) effective 1 April 2009 known as Axiata Group Berhad (Axiata); Time dotCom (Time); DiGi Telecommunications
Sdn Bhd (DiGi); ASTRO All Asia Networks plc (ASTRO); Media Prima Berhad (Media Prima) and Pos Malaysia Berhad (Pos Malaysia)
n.a.
–*
Listed on 28 April 2008
Opted for delisting on 25 June 2007
63.2
-9.1
-36.4
-36.8
-50.0
-15.4
0.0
-68.4
26.3
-58.3
–
–
40
35
30
25
20
15
2006
10
2007
5
0
2008
TM*
TMI**
Maxis
DiGi
ASTRO
*After demerger ** Effective 1 April 2009 known as Axiata
Source: Bursa Malaysia, SKMM
Fig. 2.7 Communications and Multimedia Companies Market Capitalisation in Ringgit
Pos
Malaysia
Time
Media
Prima
Media Prima 0.1%
%
Change
(2007 – 2008)
Communications and Multimedia Companies Market Capitalisation in Ringgit
DiGi 2.6%
ASTRO 0.6%
%
Change
(2006 – 2007)
*Not comparable - different company at 28 April 2008 ** Effective 1 April 2009 known as Axiata
n.a. not available
Source: Bursa Malaysia, SKMM
Fig. 2.6 Communications and Multimedia Companies Market Capitalisation RM (billion)
Time 0.1%
7.3%
81.2
Nil
1.2(e) -3.3(f)
Bursa Malaysia = RM664 billion
25
4.1*(f)
The communications and multimedia companies covered in this report comprise the major public-listed companies in the
telecommunications and broadcast sectors, and postal sector1. Altogether, these companies captured RM48.5 billion in
market capitalisation or 7.3% of Bursa Malaysia market capitalisation in 2008.
1,036.7
849
825
225
CONTRIBUTION OF THE COMMUNICATIONS AND MULTIMEDIA COMPANIES
TO THE BURSA MALAYSIA
1
1,106
1,025
5.7(f)
*ASEAN-5
† East Asia and the Pacific
(e) Estimate
(f) Forecast
Source: “Global Economic Monitor” by Institute of International Finance; “World Economic Outlook Update” by International Monetary Fund; “Global Economic Prospects
2009” by World Bank, December 2008; “World Economic Situation & Prospects 2009 - Global Outlook 2009” by United Nations; “2009 Global Economic Outlook” by Morgan
Stanley, December 2008, World Bank Slashes China 2009 Growth, Business Times, 19 March 2009, Still Sinking and Synching, Morgan Stanley, 20 March 2009
Fig. 2.3 2009 Economic Outlook
Others on
Bursa Malaysia
92.7%
1,225
2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009
International
Monetary Fund
(IMF)
Morgan Stanley
Research
China
RM (billion)
Estimate /
Forecast RM (billion)
Market Capitalisation – Communications and Multimedia versus Bursa Malaysia
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
14
15
CHAPTER 2
CHAPTER 2
(Continued)
(Continued)
OVERVIEW OF THE COMMUNICATIONS AND MULTIMEDIA INDUSTRY REVENUE
REVENUE OF TELECOMMUNICATIONS COMPANIES
The total aggregated revenue of the communications and multimedia listed entities, comprising telecommunications,
broadcasting, post and other companies, is an estimated value of RM40.8 billion in 2008. This indicated an increase of 10%
from the RM37 billion recorded in 20071.
The telecommunications sector revenue in 2008 posted a 11.3% growth, from the year 2007. The aggregated revenue for
the telecommunications service providers, as represented by the main telecommunications players namely TM, Maxis, DiGi,
Time and U Mobile, amounted to RM35.5 billion in 2008, compared to RM31.9 billion for the same period in 2007.
Telecommunications companies still captured the lion’s share of the communications and multimedia industry revenue at
87% or RM35.5 billion. Broadcasting sector posted 9% or RM3.8 billion, and postal services 2% or RM0.9 billion. Others,
comprising mainly the smaller MESDAQ listed communications and multimedia companies, contributed about 2% of total
revenue market share.
In 2008, TMI took the lead in revenue market share with RM11.3 billion, or 32% of the telecommunications sector revenue,
followed by Maxis, TM and DiGi with 29%, 24% and 14% of market share respectively. The communications and multimedia
MESDAQ listed companies did not impact the relative positions of the major companies in terms of telecommunications
revenue share. Effective 1 April 2009, TMI has changed name to Axiata Group Berhad (Axiata).
Communications and Multimedia Revenue Market Share by Company 2008
Telecommunication Sector Revenue Market Share 2007
ASTRO RM3.0 billion (7.2%)
Telecommunication Sector Revenue
Market Share 2008
Media Prima RM0.8 billion (1.9%)
Time RM0.3 billion (0.7%)
RTM RM0.1 billion (0.2%)
DiGi RM4.8 billion (11.8%)
Pos Malaysia RM0.9 billion (2.3%)
Time 1%
DiGi 14%
TM 56%
U Mobile 0.2%
Time 0.8%
DiGi 14%
TM 24%
Others RM0.6 billion (1.4%)
U Mobile RM0.1 billion (0.2%)
TM RM8.7 billion (21.3%)
Maxis* RM10.3 billion (25.2%)
TMI** (Including Celcom)
RM11.3 billion (27.8%)
Maxis 29%
Source: Industry, SKMM
Fig. 2.10 Telecommunication Sector Revenue Market Share 2007
*Annualised based on 3Q 08 results ** Effective 1 April 2009 known as Axiata
Fig. 2.8 Communications and Multimedia Revenue Market Share by Company 2008
Communications and Multimedia Revenue Market Share by Sector 2008
Broadcasting RM3.8 billion (9%)
Others RM0.6 billion (2%)
Pos Malaysia RM0.9 billion (2%)
Major Telcos RM35.5 billion (87%)
Maxis* 29%
TMI** (including Celcom) 32%
*Annualised based on 3Q 08 results ** Effective 1 April 2009 known as Axiata
Fig. 2.11 Telecommunication Sector Revenue Market Share 2008
On 25 April 2008, TM underwent a demerger exercise, which resulted in its mobile arm, Celcom, being transferred for
separate listing under the name of TMI and subsequently changed to the Axiata Group Berhad in April 2009.
TM revenue (after the demerger), saw a continuous improvement of 4.8% from RM8.3 billion in 2007 to RM8.7 billion in 2008,
driven by non-voice services. Operating margin for TM stood at 7.1%.
Fig. 2.9 Communications and Multimedia Revenue Market Share by Sector 2008
1
Due to the unavailability of full year revenue for Maxis at the time of print, Maxis revenue has been annualised to provide a full year data for reference purposes.
After the demerger, TM had 90% of its revenue derived from domestic fixed line operations. The balance 10% was derived
from its global operations, which comprised revenue sources from TM Global, such as global Internet Protocol (IP) and Virtual
Private Network (VPN) services, international bandwidth services, global Ethernet services, bilateral and wholesale voice
services and international Value Added Services (VAS).
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
16
17
CHAPTER 2
CHAPTER 2
(Continued)
(Continued)
TM* Revenue by Segment 2008: RM8.67 billion
TMI Group Revenue 2008: RM11.35 billion
Maxis Revenue by Segment 2008*: RM10.29 billion
Broadband 1%
TM Global 10%
Domestic
Wholesale 8%
International Gateway 3%
TMI RM5.7 billion (51%)
Shared / Support
Services 3%
Fixed Line 2%
Overseas Mobile 20%
Domestic Mobile 74%
*Based on annualised data from 3Q 08 results
Fig. 2.15 Maxis Revenue by Segment 2008
* Effective 1 April 2009 known as Axiata
Note: TMI Group operating margin in 2008 is 17.5%, Celcom EBITDA margin in
2008 is 45.2% while Celcom operating margin for 2008 is not available
Fig. 2.13 TMI Group Revenue 2008: RM11.35 billion
TMI revenue stood at RM11.3 billion in 2008, a 14% increase from 2007, driven by the strong growth of its subsidiaries.
With the completion of the demerger exercise, Celcom revenue stood at RM5.6 billion for 2008. Continuous quarter-onquarter revenue growth was driven primarily by the success of their marketing strategy marked with strong growth in both
prepaid and postpaid segments.
Maxis revenue for end of third quarter 2008 stood at RM7.7 billion, a growth of 13.2% from RM6.8 billion at end of third
quarter 2007 whilst operating profit margin as at third quarter ending September 2008 was 33.3%. For reference purposes,
Maxis revenue – annualised for 2008 – stood at RM10.3 billion.
DiGi Revenue and Operating Profit Margin
4.81
5
4.36
4
2.88
2
0
1.71
40
22.8
23.4
2004
2005
9
RM (billion)
7
5
2
60
4.68
40
4
3
6.37
5.69
100
80
7.71
8
6
10.29
40.7
38.5
36.8
39.9
29.7
20
0
2003
2004
Revenue
Fig. 2.14 Maxis Revenue and Operating Profit Margin
2005
2006
2007
2008*
32.1
20
2006
2007
2008
Operating Profit Margin (%)
Fig. 2.16 DiGi Revenue and Operating Profit Margin
DiGi Revenue by Segment 2008: RM4.81 billion
Others 1%
0
Cellular Mobile 99%
Fig. 2.17 DiGi Revenue by Segment 2008
1
9.35
32.8
0
Revenue
10
29.2
15.6
2003
11
60
2.23
1
Maxis Revenue and Operating Profit Margin
80
3.65
3
100
*No longer include Celcom and TMI Group due to demerger
Fig. 2.12 TM Revenue by Segment 2008: RM8.67 billion
DiGi posted a revenue growth of 10.3% from RM4.4 billion in 2007 to RM4.8 billion in 2008, driven primarily by its postpaid
services. The operating profit margin for DiGi in 2008 moderated to 32.1% (2007: 32.8%).
RM (billion)
Celcom RM5.6 billion (49%)
Retail Business 79%
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
18
19
CHAPTER 2
CHAPTER 2
(Continued)
(Continued)
Media Prima Quarterly Revenue and Operating Profit Margin
RM (billion)
0.6
0.58
RM (billion)
Time Revenue and Operating Profit / Loss
0.46
0.34
0.30
0.29
0.1
-0.20
-0.4
-0.18
0.24
0.22
0.20
0.18
0.16
0.14
0.12
0.10
0.08
0.06
0.04
0.02
0.00
0.21
25.9
12.3
11.6
1Q
2Q
30
22.8
21.1
28.0
26.6
23.4
26.4
12.3
23.1
22.8
20.7
25
23.9
23.3
20
15
10
12.6
5
0
5
-0
5
3Q
-0
5
4Q
-0
5
1Q
-0
6
2Q
-0
6
3Q
-0
6
Revenue
-0.9
35
0.11
0.10
0.09
0.08
-0
-0.16
0.12
45
0.16
0.15
0.13
50
0.21
40
0.17
0.16
0.11
0.20
0.20
0.21
Operating Proﬁt Margin (%)
For Time, in 2008, its revenue indicated a decline of 3.3% to RM0.29 billion from RM0.3 billion in 2007. This was amidst a
backdrop of lower wholesale voice and lagging payphone revenue.
4Q
-0
6
1Q
-0
7
2Q
-0
7
3Q
4Q
-0
-0
7
7
1Q
-0
8
2Q
-0
8
3Q
-0
8
4Q
-0
8
Operating Profit Margin
-0.85
-0.95
-1.0
2004
2005
Revenue
2006
2007
2008
Operating Profit / Loss
Fig. 2.19 Media Prima Quarterly Revenue and Operating Profit Margin
Media Prima Yearly Revenue and Operating Profit Margin
Fig. 2.18 Time Revenue and Operating Profit / Loss
0.7
REVENUE OF BROADCASTING COMPANIES
Media Prima, the largest integrated media investment group in Malaysia, is the owner of the country’s four FTA TV operators,
namely Sistem Televisyen Malaysia Berhad (TV3), Natseven TV Sdn Bhd (NTV7), Metropolitan TV Sdn Bhd (8TV), and CH-9
Media Sdn Bhd (TV9). The company also owns two radio channels, Fly FM and Hot FM. In October 2008, Media Prima
bought over a third radio channel, Wanita FM and sought regulatory approval to re-brand the station as a Chinese language
station.
0.5
0.4
90
80
0.53
62.3
70
60
0.40
0.37
100
0.33
50
40
0.3
30
0.2
0.1
0.0
2003
18.9
18.5
21.6
2004
2005
2006
Revenue
23.2
2007
20.5
20
10
0
2008
Fig. 2.20 Media Prima Yearly Revenue and Operating Profit Margin
In 2008, Media Prima posted a revenue of RM0.78 billion for the year under review, a growth of 13% from revenue of
RM0.69 billion in 2007. The group achieved an operating profit margin of 20.5% in 2008.
0.6
RM (billion)
Currently, the television broadcasting sector comprises four Free-to-Air television (FTA TV) channels owned by Media Prima
Berhad (Media Prima), two Government-run channels, and a subscription-based multi-channel satellite television service
operated by Measat Broadcast Network Sdn Bhd, under the brand name ASTRO. Additionally, the television broadcasting
companies are also owners of several radio channels. The combined revenue of the companies was RM3.77 billion in 2008,
indicating growth of 13.2% for the sector from the total revenue of RM3.33 billion in 2007.
0.69
Operating Proﬁt Margin (%)
0.78
0.8
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
20
21
CHAPTER 2
CHAPTER 2
(Continued)
(Continued)
ASTRO All Asia Networks plc (ASTRO), which owns Measat Broadcast Network Sdn Bhd, posted a revenue of RM2.95 billion
for Financial Year Ending (FYE) January 2009. This was an increase of 15.2% from 2007 results. Operating margin stood at
4.7% for FYE January 2009.
REVENUE OF POSTAL SERVICES
Revenue in the postal services sector comprised revenue from Pos Malaysia Berhad (Pos Malaysia). Pos Malaysia registered
a revenue of RM0.92 billion in 2008, a growth of 7%. Operating profit margin in 2008 moderated to 9.4% (2007: 11.8%).
ASTRO Revenue and Operating Profit Margin
RM (billion)
2.01
2.0
1.5
30
25
20
21.5
1.0
0.5
35
2.20
1.72
1.42
17.4
15
10
13.6
10.5
8.7
0.0
FYE Jan-04
FYE Jan-05
40
FYE Jan-06
Revenue
FYE Jan-07
FYE Jan-08
4.7
FYE Jan-09
5
0
1.0
0.92
0.9
0.82
0.79
0.8
0.65
0.7
0.86
45
40
0.69
35
0.6
30
0.5
25
0.4
Fig. 2.21 ASTRO Revenue and Operating Profit Margin
0.3
ASTRO Revenue by Segment for Financial Year Ended January 2009
0.1
13.1
20
12.0
11.8
8.5
0.2
9.4
Radio 5%
15
10
4.3
5
0
0.0
Television Programming 6%
50
2.56
2.5
RM (billion)
3.0
Pos Malaysia Revenue and Operating Profit Margin
2.95
2003
Others 12%
2004
2005
Revenue
Multi-channel Television 73%
2006
2007
2008
Library Licensing Distribution 4%
Fig. 2.24 Pos Malaysia Revenue and Operating Profit Margin
Pos Malaysia Postal and Related Services Revenue 2004 – 2008
Fig. 2.22 ASTRO Revenue by Segment for Financial Year Ended January 2009
1000
+7.3%
900
Radio Television Malaysia (RTM)
+13.4%
Radio Televisyen Malaysia (RTM), which operates the two national TV stations, garnered total revenue of RM74.25 million
for 2008. RTM TV garnered RM54.69 million of revenue share, translating to 74% of the total RTM broadcast revenue, while
the balance of RM19.55 million of revenue share went to its radio division. In 2007, RTM registered RM85.87 million worth
of total broadcast revenue.
RM (billion)
800
+4.4%
+4.6%
700
600
500
400
300
693.5
786.3
821.1
858.5
2005
2006
2007
920.8
200
RTM TV and Radio Revenue 2008
100
0
TV: RM54.69 million (74%)
Revenue
Fig. 2.25 Pos Malaysia Postal and Related Services Revenue 2004 – 2008
Source: Ministry of Information
Fig. 2.23 RTM TV and Radio Revenue 2008
2008
2004
Radio: RM19.55 million (26%)
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
22
23
CHAPTER 2
CHAPTER 2
(Continued)
(Continued)
REVENUE OF DIGITAL SIGNATURE COMPANIES
AN OVERVIEW OF SKMM LICENSEES ON THE MESDAQ MARKET
Revenues of both Certifying Agencies in Malaysia, namely MSC Trustgate.com and Digicert, are basically derived from the
issuance of digital certificates. The companies posted combined annualised revenue of RM22.6 million in 2008, compared
to RM13.6 million in 2007. This is an estimated overall gain of RM9 million or 66.2%. The increase was due to both rising
consumer awareness of application of digital signatures for secured transactions in the e-business environment, and the
increased online submission of Inland Revenue Board (IRB) tax forms.
As of end-2008, the total number of companies listed on MESDAQ is 122. Out of these companies, 20 are SKMM licensees.
Most of these are in the licence category of Applications Service Provider (Class) (ASP(C)). The ASP(C) licensees conduct
businesses such as voice services, data services, content-based services, electronic commerce, wireless solution and
others in transmission services, including professional and consulting services.
SKMM Licensees on MESDAQ
Revenue of Digital Certificate Companies
25
RM (million)
20
5.3
4.4
10
4.1
1.2
2.7
3.1
4.1
5.1
4.8
2003
2004
2005
2.6
5.4
9.2
8.2
2006
2007
17.3*
Digicert Revenue
MSC Trustgate.com Revenue
0
2002
2008
Fig. 2.26 Revenue of Digital Certificate Companies
RM (million)
4
3
2
1
4.6
3.1
2.6
-127.8
2003
2.7
-152.4
2004
2005
Types of Licences
Airocom Technology Bhd
ASP(C)
asiaEP Bhd
asiaEP Bhd
ASP(C)
M3 Technologies Asia Bhd
ASP(C)
DVM Technology Bhd
DVM Intellisource Sdn Bhd
ASP(C)
Intelligent Edge Technologies Bhd Obnet Sdn Bhd (formerly known as Intelligent Edge Solutions Sdn Bhd)
ASP(C), NFP(I) Last Mile
and NSP(I)
MNC Wireless Bhd
MNC Consulting Sdn Bhd
MNC Wireless Bhd
ASP(C)
ASP(C)
Mobif Bhd
Mobif Global Sdn Bhd
Izzinet Sdn Bhd
ASP(C)
ASP(C), NSP(I), NFP(I) Last Mile
N2N Connect Bhd
N2N Connect Bhd
ASP(C)
2006
2007
25
40
Nextnation Communication Bhd
Nextnation Network Sdn Bhd
ASP(C)
35.3
20
35
30
25
REDtone International Bhd
REDtone Telecommunications Sdn Bhd
ReDtone Mytel Sdn Bhd
ReDtone Mobile Services Sdn Bhd
REDtone Marketing Sdn Bhd REDtone CNX Broadband Sdn Bhd
ASP(C)
ASP(C)
ASP(C)
NSP(I),NFP(I)
ASP(C), NSP(I), NFP(I) Last Mile
15
21.2
16.4
13.4
10
9.2
5
0
4.1
0.2
2003
5.1
4.8
2004
2005
15
8.2
10
5
0
2006
2007
MSC Trustgate.com Revenue
Digicert Revenue
Fig. 2.27 MSC Trustgate.com Revenue versus Operating Profit Margin in Percentage
20
GD Express Carrier Bhd
Courier
* MCM Technologies Bhd
MCM Wireless Sdn Bhd
NSP(I)
* Scan Associates Bhd
Scan Associates Bhd
ASP(C)
Fig. 2.28 Digicert Revenue versus Operating Profit Margin in Percentage
* Viztel Solutions Bhd
Viztel Technologies Sdn Bhd
ASP(C)
*SKMM Licensees listed on MESDAQ in 2008
ASP – Applications Service Provider; NSP – Network Service Provider; NFP – Network Facilities Provider I – Individual; C - Class
Fig. 2.29 SKMM Licensees on MESDAQ
0
5.2
60
40
20
0
-20
-40
-60
-80
-100
-120
-140
-160
-180
20.2
20.9
RM (million)
6
Digicert Revenue versus
Operating Profit Margin in Percentage
MSC Trustgate.com Revenue versus
Operating Profit Margin in Percentage
-26.8
SKMM Licensee
15
5
5
Holding Company (MESDAQ listed)
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
24
25
CHAPTER 2
CHAPTER 2
(Continued)
(Continued)
MALAYSIAN ADVERTISING EXPENDITURE (ADEX) 2008
Most of the 20 SKMM licensees listed on MESDAQ are companies offering telecommunications and Internet connectivity
services. Companies categorised under telecommunications services are in research and development, manufacturing,
telecommunications products and marketing of telecommunications multimedia solutions. Internet connectivity services
consist of e-commerce and provision of broadband services. Only a few companies involved in mobile content or value-added
service are listed on MESDAQ.
Advertising Expenditure (Adex) versus Gross Domestic Products (GDP) and Growth Comparison
18.9
8
5.5
RM (billion)
Holding Companies of SKMM Licensees Listed on MESDAQ
Courier Services 5%
Computer Services 5%
Internet Connectivity
Services 20%
Software Research and
Development 5%
Mobile Content /
Value Added Services 15%
4.4
2
0
Enterprise Software Services 5%
9.4
3.2
2001
Telecom Services 40%
7.1
5.3
Market
Revenue
Date
IPO Offer/ Capitalisation
Listed on Proceeds Issue Price 31/12/2008
2007
2008
%
^Holding Company
MESDAQ
RM
RM
RM RM
RM
change
(million)
(million) (million) (million)
5.7
6.0
5.5
2007
2008*
5
2.2
0
2002
2003
2004
2005
GDP (% Growth)
2006
Adex (% Growth)
27/04/2006
15.6
0.60
10.6
1.0
1.2
20.0
31/12/2008
asiaEP Bhd
16/01/2004
18.0
0.30
14.7
11.1
15.0
35.1
29/02/2008
27/01/2003
10.1
0.45
19.6
28.3
32.3
14.1
30/06/2008
2/01/2004
16.0
0.40
10.6
33.3
36.7
10.2
31/12/2008
08/2000
1.1
1.50
10.2
3.0
3.7
23.3
31/12/2008
MNC Wireless Bhd
25/10/2005
7.7
0.48
28.3
9.0
11.0
22.2
31/12/2008
Mobif Bhd
19/05/2004
10.2
0.80
21.4
94.8
82.2
-13.3
31/12/2008
N2N Connect Bhd
28/11/2005
8.4
0.70
89.5
32.1
22.4
-30.2
31/12/2008
Nextnation
Communication Bhd
26/08/2005
25.0
0.78
14.6
100.3
64.5
-35.7
30/04/2008
REDtone International Bhd
19/01/2004
29.5
0.95
69.6
105.1
110.0
4.7
31/05/2008
17/05/2005
10.5
0.30
205.7
57.4
68.0
18.5
30/06/2008
MCM Technologies Bhd
8/10/2002
12.8
0.10
22.4
18.9
18.7
-1.1
31/12/2008
Scan Associates Bhd
6/10/2006
27.3
0.50
21.0
21.0
15.1
-28.1
31/12/2008
Viztel Solutions Bhd
22/07/2004
5.3
0.35
4.2
1.5
0.7
-53.3
31/12/2008
Advertising expenditure (Adex) for the country grew 5.5% in 2008 to an annualised value of RM5.8 billion. Global Adex growth
is forecasted to reduce to 0.2% in 2009, from 2.6% in 2008. Despite the current global economic slowdown, the Advertising
Standards Authority Malaysia believed that Adex could reach RM6 billion, or 9% growth by end-2008, up from RM5.5 billion in
2007. The said growth was expected to come from the outdoor media and digital advertising, as well as from the potential
in television and creative productions.
The Malaysian advertising media has gradually shifted from its traditional channels to the new or digital advertising channels.
In the first half of 2008, an encouraging RM14.9 million was recorded for advertising on the Internet. Traditional television
also found new platforms to increase advertising revenues through mobile video streaming and mobile TV broadcast
services. However, insufficient bandwidth and low consumer acceptance are two key stumbling blocks against the growth of
new media advertising. These problems must first be tackled before advertising on new media channels could capture more
audiences to tip the scale for a significant takeoff.
^Represents holding company of SKMM licensees
Source: Annual Reports, Bursa Malaysia, SKMM
Fig. 2.31 Holding Companies of SKMM Licensees – Market Listing and Financials
Excerpts from Association of Accredited Advertising Agents Malaysia (4As) in ‘Malaysian Adex to reach RM6 billion this year with 8% increase’, Bernama.com, 12 August 2008
‘Newspaper and TV ads drive strong Adex growth’, The Star 16 August 2008, Media Specialists Association
FY Ending
Intelligent Edge
Technologies Bhd
5.9
*Adex annualised from six months data, GDP estimate as of 3Q 2008
Note: Non-discounted gross adex
Source: Nielsen Media Research Service, SKMM
Fig. 2.32 Advertising Expenditure (Adex) versus Gross Domestic Products (GDP) and Growth Comparison
Holding Companies of SKMM Licensees – Market Listing and Financials
DVM Technology Bhd
5.0
4.5
4.1
Adex (RM billion)
Source: Annual Reports, Company Websites, SKMM
Fig. 2.30: Holding Companies of SKMM Licensees Listed on MESDAQ
15
4.7
10
5.7
3.2
0.3
4.6
3.7
3.5
Networking Product 5%
5.8
6
4
20
17.0
Growth (%)
SKMM Licensees Listed on MESDAQ
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
26
27
CHAPTER 2
CHAPTER 2
(Continued)
(Continued)
ADEX MARKET SHARE
COMPOUND ANNUAL GROWTH RATE (CAGR) OF ADEX 1988 – 2008
Point of Sale
RM57.8 million (1.1%)
Radio
RM241.1 million
(4.4%)
Adex Market Share in 2008
Others
Point of Sale
Newspaper
RM3,065 million (56.1%)
Radio
RM271.6 million
(4.7%)
Others RM327.2 million
(5.6%)
CAGR:
13.0%
7
Newspaper
RM3,200 million (55.2%)
6
RM (billion)
Adex Market Share in 2007
5
4.4
4
3.1
3
1
Televison RM1,798 million (32.9%)
0
0.5
0.6
0.8
1.1
1.2
1.4
1.7
2.0
2.4
2.6
2.1
3.2
3.5
4.6
5.8
4.7
3.7
2.5
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008*
Internet RM29.8 million (0.5%)
*Adex annualised from six months data
Note: Non-discounted gross Adex
Source: Nielsen Media Research Service, SKMM
Fig. 2.35 Compound Annual Growth Rate (CAGR) of Adex 1988 – 2008
Note: Adex 2008 is annualised from six months data; Non-discounted gross adex
Source: Nielsen Media Research Service; Media Specialists Association; The Star, 16 August 2008
Fig. 2.33 Adex Market Share in 2007 and 2008
In 2008, traditional media made up the bulk of Adex in Malaysia. Newspapers represented 55% (annualised) of the total
Adex, forming the largest portion of advertising spend, with a total value of RM3.2 billion. Television media contributed 33%
of Adex, worth an annualised amount of RM1.9 billion. Internet media, which made its presence felt with almost 1% of market
share, had an annualised amount of RM29.8 million.
Looking back on the Adex trend, the pre-CMA period (1988 to 1998) showed Adex achieved a Compound Annual Growth Rate
(CAGR) of 15.4%. The highest advertisement spending recorded in the said period was in 1997 at RM2.6 billion but declined
a year later to RM2.1 billion due to the economic crisis more than a decade ago. Post-CMA period stimulated positive Adex
growth, and registered an annualised Adex at all-time high of RM5.8 billion in 2008. Despite many unforeseen negative
economic events regionally and globally, Malaysia overall, managed to post an Adex CAGR of 13% from 1988 to 2008.
Based on the following table, the top three brands are from the telecommunications sector, namely DiGi, Maxis and Celcom.
These three had consistently remained as top spenders in advertising. Worth noting was the almost 100% increase DiGi
Adex in August 2008, a result of its aggressive marketing to win more customers with new mobile packages and attractive
pricing.
In 2008, Adex from TV broadcast featured ‘net revenue’ data. Net revenue is used throughout the remaining part of this
section. In the following chart, TV accounted for 76% of the broadcast Adex pie while radio was at 24%. The four TV stations
of Media Prima recorded the highest share at 51%.
Top 10 Advertisement Spending by Brands in Malaysia
Rank
Top 10 Advertisement Spending by Brands
ADEX FROM BROADCAST, 2008
August 2008
July 2008
August versus July 2008 (%)
1
DiGi
20,538
10,352
98
2
Maxis
13,647
8,765
56
3
Celcom
6,869
5,864
17
4
Petronas
6,104
1,997
206
5
U Mobile
5,820
6,695
-13
6
TM
5,617
2,126
164
7
LG
5,165
1,476
250
8
Power Root
4,389
1,243
253
9
Sunsilk
4,388
5,298
-17
Giant
4,200
5,067
-17
10
Note: Ranked as at July 2008
Source: ADOI Marketing Communications Magazine, October 2008
Fig. 2.34 Top 10 Advertisement Spending by Brands in Malaysia
Radio
24%
Note: Adex is a net revenue figure
Source: Industry
Fig. 2.36 Adex from Broadcast, 2008
TV
76%
Media Prima
51%
RTM
5%
ASTRO
20%
5.5
CAGR:
15.4%
2
Television
RM1,895 million
(32.7%)
CAGR:
9.8%
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
28
29
OVERVIEW ON THE COMMUNICATIONS
AND MULTIMEDIA INDUSTRY
CHAPTER 3
THE REGULATORY FRAMEWORK IN THE MALAYSIAN COMMUNICATIONS
The Malaysian communications and multimedia industry is governed by the regulatory framework under the Communications
and Multimedia Act (CMA) 1998. The CMA encompasses a new licensing regime, introduced in 1998, to better regulate
the industry towards convergence. This framework provides greater transparency for growth and development, and a more
orderly market for the the benefit of both businesses and consumers. The CMA is guided by the 10 National Policy Objectives
(NPO) summarised in the table below:
10 NATIONAL POLICY OBJECTIVES FOR THE COMMUNICATIONS AND MULTIMEDIA INDUSTRY
1. Creating a Global Hub
To establish Malaysia as a major global centre and a hub for communications and multimedia information,
and content services
2. Building a Civil Society
To promote a civil society, where information-based services will provide the basis of continuing enhancements
to the quality of work and life
CHAPTER 3
The Regulatory Framework in the Malaysian Communications
Licensing in 2008
Development of the Communications and Multimedia Industry
Revenue of the Communications and Multimedia Industry Services
by Market Segment
Fixed Line Services Segment
Cellular Mobile Services Segment
Broadcasting-Subscription Television Segment
Capital Expenditure (Capex) Trend for the Communications
Fixed Line Connections
Direct Exchange Line (DEL)
Domain Names Registration
Cellular Mobile Services
Growth of Prepaid and Postpaid Subscribers
Market Share of Cellular Mobile Phone Connections
Mobile Number Portability
Broadcast Revenue Revenue of Free-to-Air Television (FTA TV)
Developments of Free-to-Air Television (FTA TV) in 2008
New Areas, Services or Developments of Free-to-Air Television
(FTA TV) in 2009
Radio Revenue
Radio Developments in 2008
Direct-to-Home (DTH) Satellite Pay Television
Developments of Direct-to-Home (DTH) in 2008
Postal Services
Direct Mail
Courier Business
3. Nurturing Local Content and Culture
To grow and nurture local information resources and culture representation that facilitate the national identity
and global diversity
29
30
32
34
35
35
36
37
38
38
39
40
41
42
43
45
46
46
48
48
49
51
52
54
55
57
59
4. Ensuring Long-term Benefits for the End User
To regulate for the long-term benefit of the end user
5. Nurturing User Confidence
To promote a high-level of consumer confidence in service delivery from the industry
6. Promoting Access and Equity
To ensure an equitable provision of affordable services over ubiquitous national infrastructure
7. Creating a Robust Applications Environment
To create a robust applications environment for the end user
8. Facilitating Efficient Allocation of Resources
To facilitate the efficient allocation of resources, such as skilled labour, capital, knowledge and national assets
9. Developing Industry Capabilities
To promote the development of capabilities and skills within Malaysia’s convergence industries
10.Promoting Secure and Safe Networking
To ensure information security and network reliability, and integrity
Source: Section 3(2) of the Communications and Multimedia Act 1998 (Act 588)
Fig. 3.1 10 National Policy Objectives for the Communications and Multimedia Industry
The communications and multimedia market is defined as an economic market for network and application services, goods
and services as well as access to those network and applications services. Apart from that, there is the market for content
applications. These economic market segments are spread across a horizontal market structure, in contrast to the traditional
silo structure, where one company may have many vertically separated services.
In the horizontal market structure, more than one operator is allowed in a particular market segment, thereby providing
the environment for healthy competition that acts as a catalyst towards building a robust communications and multimedia
industry with diverse products and services.
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
30
31
CHAPTER 3
CHAPTER 3
(Continued)
(Continued)
Comparison between the Old and the New Licensing Frameworks
Total Number of Individual Licences Issued
Licences issued under the CMA 1998 are
technology-neutral and service-neutral
Category of Licence
2007*
2008*
NFP
67
80
NSP
74
84
CASP
22
23
Total
163
187
CONTENT SERVICES
APPLICATIONS SERVICES
VAN Licence
ISP Licence
Broadcasting
Licence
Telecommunication
Licence
The old licences were issued based on specific
technologies, and specific services
NETWORK SERVICES
NETWORK FACILITIES
Under the old licensing framework, all activities related
to the provision of a particular service are vertically integrated
for the provision of that service
The new licensing framework promotes vertical separation
between facilities, network, applications, and content
*Cumulative
Source: SKMM
Fig. 3.4 Total Number of Individual Licences Issued
Source: SKMM Industry Performance Report 1999 – 2001
Fig. 3.2 Comparison between the Old and the New Licensing Frameworks
Collection of Licence Fees
Licensing
Type of Fee
Under the CMA, there are four categories of licensable activities:
1.
2.
3.
4.
NFP –
NSP –
ASP –
CASP–
2007
RM (million)
2008
RM (million)
0.120
0.360
0. 650
1.050
Application fee
Network Facilities Providers;
Network Services Providers;
Applications Service Providers, and
Content Applications Service Providers.
Approval fee
Annual licence fee
Under each of the four categories, two types of licences are issued – individual licence and class licence. The individual
licence is granted to conduct activities that require a high degree of regulatory control, while the class licence, which
requires only registration, requires annual renewal. The Malaysian Communications and Multimedia Commission (SKMM)
maintains the list of licensees in their respective registers.
LICENSING IN 2008
311.047
73.001*
Class licence registration
1.087
0.650
Miscellaneous
0.038
0.011
312.942
75.072
Total
*Inclusive ASTRO
Source: SKMM
Fig. 3.5 Collection of Licence Fees
Communications and Multimedia Licensees 2003 – 2008
The number of licences issued or registered by SKMM according to category, and the cumulative numbers of individual
licences issued in 2008 and 2007 are tabulated below:
450
393 372 392
365
Licences Issued (2008 versus 2007)
Category of Licence
Individual
2007
Class
2008 2007
2008
No. of licensees
400
350
300
250
200
142
150
NFP
4
12
28
15
NSP
5
12
29
15
ASP
_
_
368
392
CASP
2
1
19
13
Source: SKMM
Fig. 3.3 Licences Issued (2008 versus 2007)
50
29 36
67
53 63
80
31 39
74
60 69
84
96
78 89
20 20 19 20 22 23
24 29 29 33 28 15
23 29 32 35 29 15
NFP (C)
NSP (C)
0
NFP (I)
NSP (I)
ASP (I)
2003
*Started in 2007
Source: SKMM
Fig. 3.6 Communications and Multimedia Licensees 2003 – 2008
2004
CASP (I)
2005
ASP (C)
2006
2007
2008
19 13
CASP (C)*
100
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
32
33
CHAPTER 3
CHAPTER 3
(Continued)
(Continued)
Communications and Multimedia Industry – 6.1% of GDP
The stable pace of economic expansion in the first three quarters of 2008 provided a relatively favourable backdrop for
the communications and multimedia industry. The aggregated revenue of the communications and multimedia industry,
comprising public-listed telecommunications, broadcasting and postal services companies, posted a combined domestic
revenue of RM31.6 billion in 2008. This is a 5% growth from RM30 billion in 2007. This includes companies listed on the
Malaysian Exchange of Securities Dealing and Automated Quotation (MESDAQ).
The total aggregate domestic revenue (excluding overseas revenue) represented 6.1% of Gross Domestic Product (GDP)
(real prices) in 2008, while the overall aggregated revenue of RM40.8 billion (including overseas) represented 8.3% of Gross
National Product (GNP) (real prices). The latter indicates a growth of 10.3% from RM37 billion in 2007. Real GDP and GNP
prices are valued at year 2000 prices, instead of the 1987 prices, in accordance with a rebasing exercise by the Department
of Statistics, Malaysia.
Communications and Multimedia Industry: Revenue versus GDP
40
Revenue Growth of the Communications and Multimedia Industry: Domestic versus Overseas
+ 25% Overseas
+ 11% Domestic
+ 138% Overseas
+ 7% Domestic
36
34
RM (billion)
+ 60% Overseas
+ 7% Domestic
30
22
20
20
15
24
1.3
5.5
5.9
6.1
0
31.6
27.0
20.6
2006
2007
2008
Revenue as % of GDP
GDP at constant prices, base year 2000
Source: Industry, Department of Statistics, Malaysian Economy Third Quarter 2008, Annual Report 2008, Bank Negara Malaysia, SKMM
Fig. 3.9 Communications and Multimedia Industry: Revenue versus GDP
2004
2005
2006
2007
2008
Overseas
45
Fig. 3.7 Revenue Growth of the Communications and Multimedia Industry: Domestic versus Overseas
Percentage Contribution to the Revenue of the Communications and Multimedia Industry:
Domestic versus Overseas
RM (billion)
40
33
35
30
25
6.2
6.6
Percentage (%)
6
6
7.2
8.3
7.7
17
19
83
81
2006
2007
23
85
80
75
96
94
94
65
77
60
2003
2004
Domestic
10
6
10
4
5
2
0
2005
2006
Revenue of the Communications and
Multimedia Industry
2007
2008
Revenue as % of GNP
91
70
2002
12
8
15
2004
9
90
18
16
2005
Overseas
Fig. 3.8 Percentage Contribution to the Revenue of the Communications and Multimedia Industry: Domestic versus Overseas
2008
GNP at constant prices, base year 2000
Source: Industry, Department of Statistics, Malaysian Economy Third Quarter 2008, Annual Report 2008, Bank Negara Malaysia, SKMM
Fig. 3.10 Communications and Multimedia Industry: Revenue versus GNP
95
20
14
28
25
20
41
37
0
4
4
Communications and Multimedia Industry: Revenue versus GNP
Domestic
100
8
0
2005
Revenue of the Communications and
Multimedia Industry
18
2003
32
2
2004
30.0
25.3
5.6
5.7
30
5
9.2
5.7
1.5
23.6
27
10
2.4
+ 63% Overseas
+ 19% Domestic
25
6
+ 15% Overseas
+ 15% Domestic
28
24
25
7.1
32
26
RM (billion)
+ 617% Overseas
+ 53% Domestic
30
Revenue as % of GNP
38
+ 30% Overseas
+ 5% Domestic
10
35
Revenue as % of GDP
DEVELOPMENT OF THE COMMUNICATIONS AND MULTIMEDIA INDUSTRY
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
34
35
CHAPTER 3
CHAPTER 3
(Continued)
(Continued)
REVENUE OF THE COMMUNICATIONS AND MULTIMEDIA INDUSTRY SERVICES
BY MARKET SEGMENT
FIXED LINE SERVICES SEGMENT
Revenue from the fixed line segment amounted to RM9.6 billion in 2008 compared to RM8.1 billion in 2007, representing
an increase of 18.5%. Telekom Malaysia Berhad (TM), the market leader, recorded an encouraging growth, driven by its
broadband services due to aggressive promotions and high demand.
Revenue trends of communications and multimedia services had been on the rise. Revenue from the various market
segments of fixed line, cellular mobile services, Internet access, broadcasting (subscription television and Free-to-Air
television (FTA TV)) and postal services has thus so far demonstrated consistent positive growth.
Fixed Line Revenue Share 2007 (RM8.1 billion)
Services Market Segment: Revenue Comparison 2006 – 2008
Services Market
Segment
(Public-listed
2006
2007
2008
companies)
RM (billion)
RM (billion)
RM (billion)
Contribution to the
Communications and
Multimedia Industry (%)
2006
2007
2008
Fixed line1
25.2
8.2
8.1 9.6
Includes: Internet2 = 0.87
Includes:
Internet and
multimedia2 = 1.05
Includes:
Internet and
multimedia = 1.62
Mobile3
23.7 25.9
19.3
Includes:
Datacom services
Maxis = 1.39
DiGi = 0.65
59.2
21.8
63.9
TM 90%
Maxis* 7%
TM 90%
63.5
Includes:
Includes:
Datacom services
Datacom services**
Maxis = 1.70
DiGi = 0.91
DiGi = 0.81
Celcom*= 1.03
* Annualised based on the results of 3Q 08
Fig. 3.13 Fixed Line Revenue Share 2008 (RM9.6 billion)
Fig. 3.12 Fixed Line Revenue Share 2007 (RM8.1 billion)
CELLULAR MOBILE SERVICES SEGMENT
2.6
2.9
6.1
7.0
7.1
FTA TV 0.5
0.8 0.9
1.5
2.2
2.2
Post (excluding
courier)6
0.8
0.9 0.9
2.5
2.4
2.2
Others7
1.8
1.0 0.6
5.5
2.7
1.5
32.6
37.1 40.8
100
100
100
*Annualised based on 3Q revenue for 2007
** Datacom services of Maxis and Celcom are not available from the respective companies
Fig. 3.11 Services Market Segment: Revenue Comparison 2006 – 2008
1) Includes international gateway
2) Telekom Malaysia Berhad (TM) only
3) Includes overseas revenue contribution. Note: Mobile includes the revenue of TM International Berhad (TMI) (comprised three non-mobile companies out of 10 under the
TMI Group). TMI effective 1 April 2009 is known as Axiata.
4) ASTRO All Asia Networks Plc (ASTRO) only
5) Media Prima Berhad and Radio Televisyen Malaysia (RTM)
6) Pos Malaysia Berhad only
7) MESDAQ Companies only
The domestic cellular mobile services recorded a revenue of RM18.4 billion in 2008, compared to RM16.7 billion in 2007,
a growth of 10.2%. Revenue from data services, Short Message Service (SMS) and non-SMS continued to drive growth for
the cellular mobile service providers. Subscriber data usage continued to expand, spurred by the increasing availability of
mobile applications and services. Newcomer, U Mobile, recorded a 1% share in the revenue of the domestic cellular mobile
services.
Domestic Cellular Mobile Revenue Share 2007 (RM16.7 billion)
Domestic Cellular Mobile Revenue Share 2008
(RM18.4 billion)
U Mobile 1%
Maxis 44%
Celcom 30%
DiGi 26%
Fig. 3.14 Domestic Cellular Mobile Revenue Share 2007 (RM16.7 billion)
Maxis* 43%
Celcom 30%
DiGi 26%
*Annualised based on the results of 3Q 08
Fig. 3.15 Domestic Cellular Mobile Revenue Share 2008 (RM18.4 billion)
Time 3%
2.0
Total
Time 4%
Maxis 6%
23.5
Subscription
television4
5
Fixed Line Revenue Share 2008
(RM9.6 billion)
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
36
37
CHAPTER 3
CHAPTER 3
(Continued)
(Continued)
In 2008, the cellular mobile service providers recorded a total revenue of RM25.9 billion (+9.28%) in their domestic and
overseas operations. Due to the demerger exercise in 2008, TM International Berhad (TMI) took over the mobile operations of
Celcom including overseas mobile business of TM.
Domestic and Overseas Cellular Mobile Revenue Share 2007 (RM23.7 billion)
Maxis 37.2%
Domestic and Overseas Cellular Mobile
Revenue Share 2008 (RM25.9 billion)
TMI** (including Celcom) 43.7%
TM 44.4%
Maxis* 37.5%
CAPITAL EXPENDITURE (CAPEX) TREND FOR THE COMMUNICATIONS AND MULTIMEDIA INDUSTRY
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 investments in infrastructure in both the fixed
and mobile sectors. Hence the capex uptrend for both fixed and mobile segments taking in 1992, and levelling out 10 years
later around 2002 as basic infrastructure capacity becomes unavailable to meet demand. Nevertheless, new investments
are expected as the country turns to fibre rollout in the next 10 years and as the WiMAX investments begin to roll out.
Capex for Fixed Line versus Capex for Mobile 1982 – 2008
DiGi listed
(Previously
Mutiara Swisscom)
4.5
Maxis listed
Maxis de-listed
More players
4.0
RM (billion)
3.5
DiGi 18.4%
DiGi 18.5%
U Mobile 0.3%
3.0
2.5
Privatisation
TMB IPO
2.0
TMB corporatised
1.5
More players
Maxis
launched
More players
1.0
Fig. 3.16 Domestic and Overseas Cellular Mobile Revenue Share 2007 (RM23.7 billion)
*Annualised based on 3Q 08 results
**Effective 1 April 2009 known as Axiata
Fig. 3.17 Domestic and Overseas Cellular Mobile Revenue Share 2008 (RM25.9 billion)
0.5
1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Capex for Mobile
Capex for the Communications and Multimedia Market Share by Percentage
2.5
100
Percentage (%)
RM (million)
2,147.8
2,000
1,800.4
1,435.5
1,375.7
1,500
95
2.9
3.0
2.1
5.0
4.1
90
93.5
92.3
91.2
85
1,103.8
1,000
80
2006
2007
2008
500
91.0
0
FYE Jan
2004
106.2
FYE Jan
2005
109.1
FYE Jan
2006
Subscription Revenue
Fig. 3.18 Subscription and Advertising Revenue of ASTRO for FYE Jan 2004 – 2009
141.2
FYE Jan
2007
147.8
FYE Jan
2008
Advertising Revenue
159.3
FYE Jan
2009
Telcos
Broadcasting
Fig. 3.20 Capex for the Communications and Multimedia Market Share by Percentage
Postal
Others
1.5
0.8
1.1
3,000
2,500
Capex for Fixed Line
Fig. 3.19 Capex for Fixed Line versus Capex for Mobile 1982 – 2008
Subscription and Advertising Revenue of ASTRO for FYE Jan 2004 – 2009
2,466.4
TM completes demerger
exercise and listing of TMI
0.0
BROADCASTING-SUBSCRIPTION TELEVISION SEGMENT
ASTRO All Asia Networks plc (ASTRO), a major provider of the subscription-based pay television (pay TV) services,
recorded a total subscription and advertising revenue of RM2.466 billion in Financial Year Ending (FYE) January 2009.
This comprised subscription (94%) and advertising revenue (6%). An overall growth of 15% was posted (FYE Jan 2008:
RM2.148 billion).
CMA 1998
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
38
39
CHAPTER 3
CHAPTER 3
(Continued)
(Continued)
FIXED LINE CONNECTIONS
DOMAIN NAMES REGISTRATION
The fixed line services in Malaysia continued on a decline trend. As of end-2008, fixed line subscribers stood at 4.292
million, while the penetration rate decreased from 15.8% in 2007 to 15.4% in 2008. Pervasive mobile telephony, driven by
lower handset costs and wide coverage, is a large factor contributing to the decline in fixed line services.
MYNIC Berhad was incorporated in May 2006 as an agency under the Ministry of Science, Technology and Innovation
(MOSTI), and is regulated by SKMM. MYNIC is responsible for the registration of eight domain name categories, as well as
the maintenance and operation of a domain name registry (a central database for .my domain names).
DIRECT EXCHANGE LINE (DEL)
Services of MYNIC
The main fixed line operator for Direct Exchange Line (DEL) connections is TM. After seeing moderate growth initially since
2004, the fixed line business segment saw positive growth in 2008, due to the provision of more value-added voice service
options, such as Voice over Broadband, Skype, Voice over Internet Protocol (VoIP) services, and a variety of new pricing
plans, targeted specifically at the business sector.
DEL Subscriptions and Penetration Rate
4.6
18.1
17.2 16.6
20
16.1 15.8
4.5
15.3
15
4.4
10
4.3
4.2
5
4.1
4
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
3.5
3.4 3.4 3.3
3.2 3.2
3.2
2.9
3.0
2.8 2.8 2.9
1.2 1.2 1.2
1.3 1.3 1.4
1.5 1.5 1.5 1.5
0.5
Business
DEL Connections: Growth of Residential
versus Growth of Business
DEL Connections: By Operators, 2008
20
8.33
Growth (%)
Maxis 0.7%
DiGi 0.1%
Time 1.3%
TM 97.9%
6.7
6.25
Web hosting
Checking if domain name server is correctly configured
Allocation of IP addresses
News and information on the latest MYNIC policies for the .my domain
Registration of IN-ADDR.ARPA domains
Provision of a platform for dispute resolution between the registrant
of a .my domain name, and a third party
DNS (Domain Name System)
consultancy services
Categories
Purposes
com.my
Commercial organisation / activities
net.my
Network-related organisations / activities
org.my
Organisations / activities which do not qualify for other categories
edu.my
Malaysian educational organisations only
gov.my
Malaysian Government organisations only
mil.my
Malaysian military organisations only
name.my
Malaysian individuals personal use only
.my
Malaysian individuals and organisations
Source: MYNIC
Fig. 3.26 Categories of Domain Name
3.6
5
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
-5
Deleting / transferring / searching a domain name already registered with MYNIC
-2.94
-3.45
-6.06
-6.45
-10
Residential
-6.67
-6.9
Business
Fig.3.23 DEL Connections: Growth of Residential versus Growth of Business
Fig. 3.24 DEL Connections: By Operators, 2008
6.67
E-mail hosting
0.0
Fig 3.22 DEL Connections: Residential versus Business 1998 – 2008
10
Modifying a record of a domain name already registered with MYNIC
Categories of Domain Name
Fig. 3.21 DEL Subscriptions and Penetration Rate
15
Domain name hosting
1.6
1.0
Residential
15.39
Registering a .my domain name Source: www.mynic.net.my
Fig. 3.25 Services of MYNIC
2.0
1.5
Does Not Provide
2.7
2.5
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Penetrations Rate
Fixed Line Demand
DEL Connections (million)
Total subscribers (million)
19.7 19.5 19.7 19.6 18.8
Percentage rate (%)
25
4.8
4.7
DEL Connections: Residential versus Business
1998 – 2008
Provides
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
40
41
CHAPTER 3
CHAPTER 3
(Continued)
(Continued)
Year
1998
2008
*.my *.com.my
–
14,445
*.net.my
2061
*.org.my
86
59,566
2,090
*.gov.my *.edu.my
42
1,970
62
*.mil.my *.name.my
61
1,099
–
1,235
3
–
378
Total
2,312
80,786
Cellular Mobile: Growth of Subscribers
2001 – 2008
50
30
40
31.5
23.3
19.5
20
19.5
15
14.6
10
5
9.1
33.6
30
22.9 22.0
19.5
20
16.3
11.1
10
7.4
0.0
0
0
2001 2002 2003 2004 2005 2006 2007 2008
Source: MYNIC
Fig. 3.27 Number of Domain Names Registered
45.1
27.1
25
Growth (%)
Number of Domain Names Registered
Cellular Mobile: Subscribers
2001 – 2008
No. of subscribers (million)
In March 2008, MYNIC opened registration for shorter second-level domain (2LD) name Internet addresses that end with .my,
to the Malaysian public. That was to keep pace with the changing trends in the web world where business organisations and
individuals prefer a more generic or unified identity for their various web properties. This new 2LD name web address would
allow easy recall, and would offer more impact for branding purposes. The registration was conducted on a first-come-firstserved basis, and existing owners of the third level domain names were given priority to convert their domain names to the
shorter .my address. However, the third level domain names, like .com.my, .net.my, and .org.my would still be available for
registration.
2001 2002 2003 2004 2005 2006 2007 2008
CELLULAR MOBILE SERVICES
Fig. 3.29 Cellular Mobile: Subscribers 2001 – 2008
Cellular Mobile Phone Connections - Trends in Mobile Take up
The cellular mobile services segment posted phenomenal growth over the last 10 years. The penetration rate of mobile
services was at 96.8% in 2008, translating into 27.1 million subscribers out of a total population of 28 million in Malaysia.
A rationalisation exercise was carried out in 2007 to require legitimate subscribers to provide registration information,
under a mandatory prepaid subscription registration exercise. However, the exercise did not affect the data collected on the
number of mobile subscribers, even though there were cases of SIM cards registered in duplicate names across the cellular
mobile providers, or the number of inactive subscribers due for termination of services. In 2008, the growth of the cellular
mobile subscribers was 16.3%, compared to 19.5% in 2007.
Fig. 3.30 Cellular Mobile: Growth of Subscribers 2001 – 2008
GROWTH OF PREPAID AND POSTPAID SUBSCRIBERS
Overall, there were more prepaid subscribers compared to postpaid subscribers, in the ratio of 80:20, which translates into
21.5 million prepaid subscribers and 5.6 million postpaid subscribers. In 2008, the growth of both prepaid and postpaid
markets were 10.8% and 43.6% respectively, compared to the previous year.
Prepaid and Postpaid Subscribers of Cellular Mobile Services 2001 – 2008
96.8
100
85.1
Percentage rate (%)
90
74.1
80
70
56.5
60
43.9
50
40
72.3
30.8
36.9
30
Penetration Rate of the Cellular Mobile Segment 2001 – 2008
30
25
3.9
20
15
10
5
0
2.9
3.4
16.6
16.1
2005
2006
2.6
3.1
3.0
4.3
6.1
2001
2002
2.6
12.1
8.6
2003
2004
19.4
2007
5.6
21.5
2008
10
Prepaid
0
2001
2002
Fig. 3.28 Penetration Rate of the Cellular Mobile Segment 2001 – 2008
2003
2004
2005
2006
2007
2008
Fig. 3.31 Prepaid and Postpaid Subscribers of Cellular Mobile Services 2001 – 2008
Postpaid
20
INDUSTRY
PERFORMANCE
REPORT
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PERFORMANCE
REPORT
42
43
CHAPTER 3
CHAPTER 3
(Continued)
(Continued)
Growth of Prepaid and Postpaid Subscription Markets 2001 – 2008
One of the National Policy Objectives or NPOs is to regulate for the long-term benefit of the consumers, and to promote
consumer confidence in the delivery of the communications and multimedia services. Towards this end, SKMM, through the
implementation of the Mobile Number Portability (MNP), is working to promote healthy competition that would facilitate more
consumer choice, improve service quality, and introduce affordable and innovative mobile products and services.
72.0
80
60
Growth (%)
MOBILE NUMBER PORTABILITY
41.9
40
41.0
40.7
43.6
37.2
19.2
11.5
20
-3.2
0
20.5
17.2
10.8
0.0
-3.0
14.7
-13.3
-20
2001
2002
2003
2004
2005
Prepaid
2006
2007
2008
Postpaid
Fig. 3.32 Growth of Prepaid and Postpaid Subscription Markets 2001 – 2008
Regulatory Approach
The Minister for Energy, Water and Communications of Malaysia (KTAK) issued a Ministerial Direction on Number Portability
(the Ministerial Direction), instructing SKMM to undertake the effective implementation of the MNP and to take all such
measures, as may be deemed necessary, to amend or modify existing regulations and rules, or other decisions, that
might impede or delay the implementation of the MNP. SKMM undertook a study on the viability of, and method for, the
implementation of MNP in Malaysia, taking into consideration the implications and impact to the industry as a whole, the
mobile service providers, and the consumers.
In parallel with the study, SKMM also carried out a Public Inquiry (PI) on the implementation of the MNP. Subsequently, the
comments received through the PI exercise were used by SKMM in determining the most effective way of implementing the
MNP in Malaysia, and the establishment of rules and guidelines for its implementation framework and timeline
MARKET SHARE OF CELLULAR MOBILE PHONE CONNECTIONS
Maxis took the lead in market share in respect of the provision of cellular mobile services. Out of the total number of 27.6
million cellular mobile phone subscribers in 2008, Maxis held 40.2% (11.1 million subscribers), Celcom had 32.6% (9 million
subscribers), while DiGi had 25.4% (7 million subscribers). In 2008, U Mobile became the latest competitor in the cellular
mobile segment. In 2008, U Mobile subscribers amounted to 1.8% (0.5 million subscribers) of the market.
Cellular Mobile Phone Subscribers:
By Service Provider 2003 – 2008
Preferred Technical Solutions and Method of Operation for the MNP Clearinghouse
• A centralised clearinghouse to function as a reference database and order processing engine
• Routing of All Call Query (ACQ), whereby each of the cellular mobile service providers set up their own
“mirror” databases, and used these “mirror” databases to determine the porting status of called party for
routing purposes
Cellular Mobile Phone:
By Market Segment 2008
• An independent third party that builds, operates and manages the MNP clearinghouse
12
9.0
8.1
7.9
8
6
U Mobile 1.8%
11.1
9.7
10
6.9
DiGi 25.4%
7.2
6.4
5.3
4.8
6.1
6.0
5.2
4.4
4.5
4
Maxis 40.2%
Fig. 3.35 Preferred Technical Solutions and Method of Operation for the MNP Clearinghouse
7.0
3.2
2.2
2
0.5
0
2003
2004
Celcom
2005
DiGi
2006
U Mobile
2007
2008
Fig. 3.33 Cellular Mobile Phone Subscribers: By Service Provider 2003 – 2008
Celcom 32.6%
Fig. 3.34 Cellular Mobile Phone: By Market Segment 2008
Maxis
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
44
45
CHAPTER 3
CHAPTER 3
(Continued)
Operational Approach
Realising the importance of constructive engagement with the industry, SKMM initiated the establishment of the Mobile
Number Portability Steering Committee (MNPSC). Many high-level decisions in relation to the implementation of the MNP
have been discussed and made. The committee was chaired by SKMM Chairman with members comprising the captains of
the industry.
Under the MNPSC, the Industry Working Group on MNP (IWG) was formalised to comprise senior officers of the industry
and SKMM. Under the IWG, efforts in relation to the operationalisation of MNP were made through three main committees,
namely the Technical Sub-Committee, Commercial Sub-Committee and Consumer Awareness Sub-Committee.
A few niche industry task forces were also created under the Sub-Committees to deal with specific issues, such as the
review of the regulatory framework, the drafting of the MNP code of practice, and the study on the costing proposal for the
establishment of the MNP clearinghouse, including cost allocation to the industry.
(Continued)
DEVELOPMENT OF BROADCAST IN MALAYSIA
Free-to-Air Television (FTA TV)
introduced by the Government-owned Radio Televisyen Malaysia
(RTM) in Malaysia in 1963, and the colour television
already have television sets. In 2000, 84.3% of Malaysian
households have access to television, and in 2004, the
• Plan Phase comprised tasks related primarily to the regulatory activities, the selection of the clearinghouse
vendor, the finalisation of contracts or agreements, the finalisation of the codes of practice, the technical
requirements of the industry, the marketing, sales, customer care and collections strategies, necessary to
support the implementation of the MNP.
The first private FTA TV channel came into the picture in 1984
• Launch Phase indicated that the test phase and all other pre-implementation tasks, such as internal
customer handling training, clearinghouse help desk preparations and the like were completed and all parties
were ready for the nationwide launch of MNP.
with the launch of TV3. The second was Metrovision, which
went on air in 1995 but ceased transmission in 1999. The third
one, NTV7, was introduced to the Malaysian public in 1998.
In September 2003, Media Prima Berhad (MPB) was established
under a separate holding company, after a restructuring
Upon the completion of the plan, build and test phases, and prior to the launch phase, SKMM made the decision to commence
the LLT before the nationwide launch to ensure all potential glitches could be addressed and dealt with accordingly in order
to secure smooth implementation of the MNP. This cautious approach of not jumping headlong into a full-scale launch, was
based on past experiences and lessons learnt from other jurisdictions. Potentially, a “big bang” approach could lead to
undesirable result like the inability to make phone calls. During that trial period, porting activities were limited to only five
centres in the Klang Valley for each of the cellular mobile service providers, and each of them was only allowed to accept
100 port requests per day.
After the successful nationwide launch, SKMM is continuously monitoring the MNP service, with a view to further improve
service delivery to consumers. On the horizon is a review initiative to shorten the time frame for porting; the introduction of
measures that would allow for better tariff transparency; and a review of current processes for further improvement.
Metrovision
1995 – Second private-owned FTA TV
network (Metrovision) was
established
1998 – Third private-owned FTA TV
network began operation
exercise, to replace the listing status of Sistem Televisyen
Malaysia Berhad (STMB). After the 8TV channel was added to
2003 – Fourth private-owned FTA TV
the portfolio of the MPB in the following year, the Media Prima
was set up
Group consolidated further with the acquisition of two more
private-owned FTA TV channels – NTV7 and TV9, in 2005. MPB
now owns a total of four FTA TV channels in Malaysia. All FTA TV
2004 – Relaunch of 8TV,
formerly known as Metrovision
channels are now available on the Internet.
2006 – Relaunch of Channel 9
Satellite Pay Television (Pay TV)
The Direct-to-Home (DTH) television started with ASTRO in late
1997. Today, ASTRO offers more than 100 pay TV channels.
Since the successful launch of the MEASAT-3 in late 2006,
1996 – Launch of MEASAT-1
into space
ASTRO tailored their services to cater to the increasingly diversed
viewing preferences of its customers. As a result, ASTRO offered
the first Near Video On Demand (NVOD) TV service in Malaysia –
ASTRO on Demand, which aired the latest offering of Hong Kong
dramas in June 2007.
Source: Industry, Various websites
Fig. 3.37 Development of Broadcast in Malaysia
1996 – DTH TV Commenced
The launch of the MNP in Malaysia was divided into two sub-phases, which were the Limited Live Trial (LLT) from 29 August
2008, and the full nationwide launch on 15 October 2008.
1984 – First private-owned FTA TV
network was set up
110 countries in Asia, Eastern Europe, Middle East and Africa.
Source: SKMM
Fig. 3.36 Implementation Phases of the MNP
Launch Phase
1978 – Colour television transmission
was introduced
percentage went up to 95.2%.
The RTM channels can now be received through satellite by
• Test Phase was generally sub-divided into the testing of user acceptance, definition of the test standards,
testing of inter-operability, including the testing of end-to-end operations readiness. The tests were conducted
in phases, taking into consideration the capacity and the test-readiness of different cellular mobile service
providers.
1969 – Second FTA TV channel was
established
transmission in 1978, the majority of households in Malaysia
Implementation Phases of the MNP
• Build Phase encompassed tasks in connection with network upgrades, the updates to the information
systems, the installation of data centre facilities and clearinghouse platform, and deployment.
1963 – Black and white FTA TV
transmission began in Malaysia
Since the black and white television transmission first
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
46
47
CHAPTER 3
CHAPTER 3
(Continued)
(Continued)
BROADCAST REVENUE
FTA TV: Advertising Revenue 2005 – 2008
In 2008, the FTA TV companies raked in RM646.9 million worth of advertising revenue, higher by 3% as opposed to RM628.1
million in 2007. On the other hand, the radio medium marked a 12.6% growth in 2008, with a revenue of RM270.8 million.
Based on the following charts, the total advertising net revenue of the FTA TV was derived after accounting for the estimated
discount factor offered by the broadcasting industry. In 2008, TV3 was the highest revenue generator (since 2005), collecting
RM388 million, followed by its sister channel, 8TV, at RM87.1 million.
400
RM (million)
350
Comparison of Advertising Net Revenue for FTA TV and Radio
300
388.0
364.1
332.8
302.9
250
200
150
100
50
1,000
RM (million)
68.3
70.0
75.2
60.8 70.0
84.6
87.1
– 16.6
39.7 41.9
71.0 71.9
13.8
22.4
16.2
19.2
53.5
35.5
0
TV3
900
800
700
NTV7
8TV
2005
270.8
240.6
600
45.3
TV9*
2006
2007
TV1
TV2
2008
193.3
178.2
500
582.0
628.1
646.9
2007
2008
*TV9 started operations in April 2006
Source: Industry
Fig. 3.40 FTA TV: Advertising Revenue 2005 -– 2008
493.8
400
2005
2006
FTA TV
Radio
Source: Industry
Fig. 3.38 Comparison of Advertising Net Revenue for FTA TV and Radio
Based on the period from 2006 to 2008, the growth of advertising revenue for almost all FTA TV channels saw double-digit
growth, except in 2008. In 2007, both RTM channels, TV1 and TV2, experienced negative growth. The highest growth
recorded during the said period was 62.3% by TV1 in 2006, followed by TV9 in 2007 at 139.2% and 18.5% by TV1 in
2008.
FTA TV Stations: Revenue and Growth
REVENUE OF FREE-TO-AIR TELEVISION (FTA TV)
FTA TV Stations
FTA TV: Advertising Revenue
RM
(million)
2006
Growth
%
RM
(million)
332.8
9.9
364.1
640
NTV7
68.3
50.8
628.1
630
RM (million)
620
8TV
70.0
610
TV9*
600
590
582.0
580
2008
RM
(million)
Growth
%
9.4
388.0
6.6
70.0
2.5
75.2
7.4
15.1
84.6
20.9
87.1
3.0
16.6
–
39.7
139.2
41.9
5.5
TV1
22.4
62.3
16.2
-27.7
19.2
18.5
TV2
71.9
1.3
53.5
-25.6
35.5
-33.6
TV3
646.9
650
2007
Growth %
570
550
2006
Source: Industry
Fig. 3.39 FTA TV: Advertising Revenue
2007
2008
*TV9 (under Media Prima) started broadcast on 22 April 2006
Source: Industry
Fig. 3.41 FTA TV Stations: Revenue and Growth
560
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
48
49
CHAPTER 3
CHAPTER 3
(Continued)
(Continued)
DEVELOPMENTS OF FREE-TO-AIR TELEVISION (FTA TV) IN 2008
Media Prima Berhad (MPB)
Radio Televisyen Malaysia (RTM)
In late 2008, RTM launched a Disaster Unit channel to broadcast the latest coverage and report on disasters via all television
and radio stations in the country. The unit would disseminate information on weather, earthquakes, landslides, floods,
haze, storms, river levels, sea conditions, tides and other similar incidents. It would also provide live coverage and reports
nationwide so that the public could receive the latest and correct information on disasters.
Despite a challenging market ahead in 2009, the television networks of MPB are expected to still remain the main revenue
contributor to the Media Prima Group. With a combined audience share of 50%, its FTA TV channels – namely TV3, 8TV,
NTV7 and TV9 — show strong performance. Among the new areas planned for 2009 are eco-social campaigns, social
activities for kids, roadshows with the involvement of local artistes and more community-based content to create social
awareness, and game shows that would appeal to students and children. The following table highlights the new services
planned:
New Services for the Television Networks of MPB in 2009
In the private-owned FTA TV arena, the television networks of MPB have expanded, in terms of investment to produce quality
content, and undertook concerted branding exercise for all of MPB media stations, to ensure continued growth in revenue
and earnings performance. This included acquiring foreign syndicated reality shows, investing in local productions and coproduction of local dramas and game shows, focusing on news coverage, and creating local reality TV programmes. Some
of the MPB programmes are highlighted in the following table.
TV3
NTV7
8TV
TV9
• ‘Sejuta Impian’
(reality show)
• ‘Mentor’ (reality music
contest)
• ‘Save the environment’,
‘denggi’, ‘living healthy’
(eco-social campaigns)
• Game shows
• Local dramas
• Build more local talents
• ‘Semanis Kurma’ (talk
show)
• ‘Gadis Melayu Finale’
(reality show)
• ‘Jaguh Finale’ (reality show)
Developments of the Television Networks of MPB in 2008
TV3
NTV7
8TV
TV9
• ‘Lagenda’ (local TV series)
• ‘Naluri’ (local programme)
• ‘1…2…jus!’ (new local
game show)
• ‘Ampang Medikal’ (new
local medical drama)
• Utilised interactive bugs to
replace crawlers
• ‘Age of Glory’ (Chinese
programme – local
production)
• ‘Ultimate Prom Nite’
(reality show to search
for Prom King and Prom
Queen in campuses)
• ‘Double Triple or Nothing’
(game show that
encourages the use of
mathematics)
• ‘Halaqah’ (religious talk
show)
• ‘Nasi Lemak Kopi-O’
(morning talk show)
• ‘Akademi Al-Quran 3’
(Quran recital training)
• ‘Cari Menantu 3’
(family reality show)
• ‘Akademi Nasyid’
(reality show to find new
nasyid star)
• ‘Ketupat Rendang Kopi-O’
(a nine-hour talk show on
the first day of Hari Raya
2008)
Source: Media Prima Berhad, Industry
Fig 3.42 Developments of the Television Networks of MPB in 2008
NEW AREAS, SERVICES OR DEVELOPMENTS OF FREE-TO-AIR TELEVISION (FTA TV) IN 2009
In tandem with the process of going digital, restructuring of both the RTM TV Stations were rationalised effective 1 January
2009. TV1 is now known as the news and information channel. The channel’s content includes 49 daily news programme as
well as talk shows and documentaries. RTM expects its latest talk show programme ‘Santai@1’, to be capable of bringing
changes and to create an image that RTM could be proud of. Apart from that, two other programmes were also introduced,
namely ‘M@1’ and ‘Apa Kata Wanita’. Meanwhile, TV2 serves as the infotainment channel with entertainment programmes,
movies and dramas in various languages.
Development in High Definition Broadcasting
MPB scrutinised the viability of retrofitting their studios and Outside Broadcast (OB) vans for High Definition (HD) production.
Despite all the industry hype of HD being very affordable, MPB found that HD would actually cost 100% more vis-à-vis
Standard Definition (SD) system. Nevertheless, MPB plans for selected productions to use High Definition Engineering (HD
ENG) cameras for trial purposes, and also as part of its educational and internal training processes. These HD ENG systems
would be on loan from vendors.
At the same time, MPB would be tracking the HD trend and development worldwide. MPB also benchmarks its plan against
the efforts of other regional broadcasters, and monitors the varying degrees of progress of broadcasters which have gone
ahead with HD adoption.
RADIO REVENUE
The Advertising expenditure (Adex) of radio in Malaysia saw very positive growth throughout the period of 2001 – 2008.
Its highest growth was at 24.5%, amounting to RM240.6 million worth of revenue in 2007, while the lowest growth of 5.6%
at RM178.2 million was recorded in 2005. In 2008, there was a total of 17 private radio stations on air nationwide, and three
regional radio stations. Three main groups of broadcasters that received the most radio Adex were:
i)
ii)
iii)
iv)
Airtime Management and Programming Sdn Bhd (AMP) (a subsidiary of ASTRO) – manages eight radio stations;
MPB – operates two radio stations;
Star RFM Sdn Bhd – operates two radio stations; and
RTM – operates 32 radio stations, of which eight are national stations and the rest are regional stations.
In 2008, two new radio stations, namely Capital FM and BFM were launched to cater to the Klang Valley.
Fig. 3.43 New Services for the Television Networks of MPB in 2009
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
50
51
CHAPTER 3
CHAPTER 3
(Continued)
(Continued)
RADIO DEVELOPMENTS IN 2008
350
35
300
30
24.5
500
200
18.0
25
20.4
500
100
119.7
270.8
144.1
168.8
152.5
193.3
178.2
50
20
240.6
15
5.6
12.6
10.7
0
0
2002
10
2003
2004
2005
Total Revenue
2006
2007
2008
Share of Revenue from Radio Advertising
The radio stations under AMP had the biggest radio advertising revenue share at 67% (RM181.3 million), followed by the two
radio stations under MPB at 16% (RM42.1 million), Star RFM at 10% (RM27.9 million), and the radio stations under RTM at 7%
(RM19.5 million). Following decades of radio services in the country, the medium managed to achieve a Compound Annual
Growth Rate (CAGR) of 24% from 1998 to 2008. This compares favourably to when there were only mainly RTM-owned
nationwide radio stations which collectively, in 1998 garnered RM32.6 million worth of revenue.
300
270.8
250
200
CAGR: 24%
150
1998
Source: Industry
Fig. 3.46 Revenue from Radio Advertising 1998 – 2008
2008
Fig. 3.47 Developments of Hot FM and Fly FM in 2008
Source: Industry
Fig. 3.45 Revenue from Radio Advertising: Market Share 2008
Reports:
• Ad hoc traffic reports due to road congestions caused by natural disasters and accidents
• Ad hoc natural disaster reports
• Ad hoc PSA of emergency and rescue numbers
32.6
0
AMP
RM181.3 million
(67%)
Capsules on:
• Development of new capsules for Mother’s Day and Father’s Day
• Development of new “Hot Tip” (public service announcement – car care, recycling and first aid)
• Current events – abduction cases, flash floods and landslides
• Congratulatory messages – national related events (special events – Olympic games and Formula One)
Acknowledgment:
• World Aids Day and announcement of new fuel prices
100
50
Developments of Hot FM and Fly FM in 2008
Topics in shows:
• Current Affairs (kidnapping, smoking in public and honesty at workplace)
• Message conveying (condolence – Nurin’s case)
• Current issues related to entertainment
350
RM (million)
Star RFM
RM27.9 million
(10%)
Revenue from Radio Advertising:
1998 – 2008
RTM
RM19.5 million
(7%)
Media Prima
RM42.1million (16%)
The two radio stations under MPB, namely Hot FM and Fly FM, continued to enjoy further growth in listenership. According
to the Nielsen Radio Audience Measurement (Survey 2, 2008 [4/08/08 – 17/08/08]), Hot FM is now the number one
radio station in Malaysia, in terms of average audience, with a total listenership that has grown from 2.9 million in 2006 to
4.3 million in 2008. Meanwhile, Fly FM maintained its position as the number two English station for the ‘under 35 years’
category. The developments of radio in 2008 can be seen in the table below. Although anticipating a slowdown in Adex in
2009, the radio networks under MPB would be supporting more current issues and major events through the Probabilistic
Safety Analysis (PSA), topics and special programmes, as well as the introduction of another local chart show.
Growth
Source: Industry
Fig. 3.44 Radio Adex 2001 – 2008
Revenue from Radio Advertising:
Market Share 2008
RTM aims to strengthen its partnership with China Radio International (CRI) through various initiatives that will be implemented soon.
These include an exchange programme between the staff of RTM and CRI, and re-broadcasting some of the CRI programmes
through the radio stations under RTM. Both organisations have also agreed to explore initiatives to cooperate in the emerging
new media, including links to their official websites, and the dissemination of content through mobile phones. CRI, established in
December 1941, broadcast in 53 languages, including Malay. Its Malay language radio station began broadcasting in 1959, and
is aired over Malaysia, Singapore, southern Thailand and some parts of Indonesia.
5
8.5
5.8
2001
Growth (%)
RM (million)
Radio Adex 2001 – 2008
INDUSTRY
PERFORMANCE
REPORT
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PERFORMANCE
REPORT
52
53
CHAPTER 3
CHAPTER 3
(Continued)
(Continued)
ASTRO Subscribers and Churn Rate (FYE Jan 2005 to FYE Jan 2009)
With its two radio stations, namely Red104.9 FM and 988 FM, Star Rfm have diversified their radio content to include more
programmes on current issues and lifestyle trends. In 2009, the radio channels under Star Rfm will be customising their
content for various media platforms and delivered over 300 modern retail outlets. Such a move has the potential of reaching
more than 10 million listeners nationwide. Star Rfm is looking into engaging major hypermarket chains, such as Giant,
Carrefour and Tesco, to offer customised audio content media, and has plans to offer attractive advertising packages, for
example, bundling the services with radio airtime.
2,869
No. of Subscribers (’000)
3,000
Star Rfm is also looking to further develop the Red FM website (www.red.fm). Apart from offering its registered members
the ability to listen to the radio station through the Internet, members can also participate in polls, listen to informative audio
clips, and create their own radio, by uploading voice clips and mixing these with the music database of over 6,000 songs.
The User Generated Radio (UGR) is the first in Malaysia that uses the DIY concept where listeners would be able to decide
on what they would like to listen to, and also get a chance to be a deejay of their own radio station.
13.4
2,500
2,201
14
12
1,941
1,698
2,000
10
10.1
1,500
16
2,482
9.0
9.7
8
8.8
1,000
6
Churn (%)
Star Rfm
4
500
2
0
0
FYE Jan 2005
FYE Jan 2006
FYE Jan 2007
No. of Subscribers
Star Rfm is currently venturing into many Outside Broadcast (OB) opportunities, which would enable live on-the-spot
broadcasting at any location requested, or proposed by listeners, thus making Red FM more mobile and flexible.
FYE Jan 2008
FYE Jan 2009
Churn
Fig. 3.49 ASTRO Subscribers and Churn Rate (FYE Jan 2005 to FYE Jan 2009)
Airtime Management and Programming Sdn Bhd (AMP)
Recently, AMP was awarded with one bronze ‘Kancil Award’ and eight special merit awards under the radio category.
This was given in recognition of its home-grown creative excellence in advertising in Malaysia.
SAC* per Set-Top Box Sold (FYE Jan 2004 to FYE Jan 2009)
According to the Nielsen Radio Audience Measurement (RAM) Survey 2 2008, the radio stations under AMP recorded an
increase in weekly radio listenership from 14.5 million to 15 million listeners, representing 91.9% of the total population of
people aged 10 years and above. The spread in listenership might be attributed to the boost in Malay and Chinese listeners,
with Bahasa Malaysia format stations, that is Era FM and Sinar, and its Chinese station called MY FM, entering the top five list.
1,000
904
900
789
800
749
667
RM
700
698
704
600
500
400
DIRECT-TO-HOME (DTH) SATELLITE PAY TELEVISION
300
200
100
DTH Penetration Rate
–
FYE Jan 2004
45
Percentage (%)
35
FYE Jan 2007
FYE Jan 2008
FYE Jan 2009
*SAC - Subscriber Acquisition Cost
Fig. 3.50 SAC per Set-Top Box Sold (FYE Jan 2004 to FYE Jan 2009)
34.5
25
20
15
6.1
5.1
10
6.8
7.5
8.3
9.4
5
0
FYE Jan 2004
FYE Jan 2005
FYE Jan 2006
DTH penetration rate (per 100 inhabitants)
Fig. 3.48 DTH Penetration Rate
FYE Jan 2007
FYE Jan 2008
FYE Jan 2009
DTH penetration rate (per 100 households)
27.9
23.3
30
31.1
FYE Jan 2006
43.4
38.1
40
FYE Jan 2005
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
54
55
CHAPTER 3
CHAPTER 3
(Continued)
(Continued)
DEVELOPMENTS OF DIRECT-TO-HOME (DTH) IN 2008
POSTAL SERVICES
Despite the global economic downturn, ASTRO, the sole operator of the DTH satellite pay TV services in Malaysia, continued
its efforts to invest in local and premium content to satisfy the needs of existing customers. Recent developments in 2008
are highlighted in the table below.
On 1 November 2001, the functions of a regulator for postal services were transferred from the Postal Department
to SKMM. Regulatory functions include universal service obligations, promoting competition and the interest of users
of postal services, in terms of prices, quality, and continuity. SKMM also regulates rates, fees and commission,
performance of postal financial services and issuance of postage stamps.
Developments of ASTRO DTH
• Completed the new smart card exercise in July 2008
• More premium sports content under the Stadium ASTRO (‘EURO 2008’ and ‘Thomas and Uber Cups’)
• Delivered new content (‘Jangan Lupa Lirik’ and ‘Bolos’ game shows)
• Provided the live coverage for the Beijing 2008 Olympic Games
• Bahasa Malaysia (BM), English and Mandarin language options for the FUN package (Introduction of the BM
voice option in the premiere of Disney’s Camp Rock and Cartoon Network’s Ben 10)
• Signed a MoU with the Ministry of Education of Malaysia to provide Personal Video Recorders (PVR),
televisions and learning content to 10,000 primary and secondary schools including Teachers’ Activity
Centres, throughout the country. Expect the first project to be implemented in Sabah and Sarawak by Q1FY
2010
Since 2005, the average number of ‘letter post items’ per inhabitant in Malaysia has been below 50. This is considered a
fraction compared to developed countries as indicated in the table below.
Apart from postal services, 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. As the population becomes more connected, Malaysians
will have more choices for conducting their personal, banking and business transactions, thus creating pressure for Pos
Malaysia to improve on its services.
Average No. of ‘Letter Post Items’ Posted per Inhabitant – Comparison by Selected Countries
Country
2005
2006
2007
• Official launch of Kampus ASTRO by KTAK. Kampus ASTRO is an aggregation of the company’s world class
learning and information content, experiences and community projects
Indonesia
4
4
4
• Launched the Australia Network on a 24/7 basis
China
18
18
17
Thailand
25
27
28
Malaysia
48
45
47
South Korea
98
99
n.a.
Australia
258
254
254
Finland
521
533
549
Norway
572
573
572
USA
n.a.
667
n.a.
Switzerland
731
713
717
Source: ASTRO, Industry
Fig 3.51 Developments of ASTRO DTH
New Areas, Services or Developments in 2009
To further enhance its DTH facilities for better viewing experience, ASTRO has completed the re-engineering of its 13-yearold broadcasting facilities at the All Asia Broadcast Centre in Bukit Jalil, to be on par with the broadcasting facilities housed
in the Measat Teleport building in Cyberjaya. Each site is now capable of broadcasting some 65 TV and ancillary services,
making a total list of 130 TV channels.
Another new development is the second generation Personal Video Recorder (PVR). Currently, a PVR records everything that
is pushed to it. However, this will be upgraded in 2009 so that only content relevant to the pre-selected individual subscriber
profile will be recorded, while the rest will be ignored. Further planned enhancements include the ability to record file-based
content downloaded through the Internet, and the ability to book a recording remotely through the ASTRO website, using a
PC or a mobile device.
ASTRO has also developed a new Set-Top Box (STB) application that encourages subscribers to swap their smart cards,
if they have not already done so. The new application involves the simulcrypting of two sets of encryption parameters for
additional security. In addition to the cards themselves, some additional security features that rely on real-time Internet redistribution of encryption parameters were added to the system to stop piracy.
Note: 2008 data is not available
n.a. – not available
Source: Universal Postal Union (UPU)
Fig. 3.52 Average No. of ‘Letter Post Items’ Posted per Inhabitant - Comparison by Selected Countries
Postal Operations
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
56
57
CHAPTER 3
CHAPTER 3
(Continued)
(Continued)
Revenue versus Staff
Philately
1,000
859
800
RM (million)
700
14,628
600
14,312
500
14,338
15,553
15,000
694
648
645
635
15,500
820
787
14,500
14,780
14,383
14,000
13,500
400
13,000
300
12,967
12,500
200
100
12,000
0
11,500
2001
2002
2003
Revenue
2004
2005
2006
2007
No. of full time staff
Note: No data for 2008
Fig. 3.53 Revenue versus Staff
Average Revenue per Staff
70
RM (’000)
50
45
45
Bridges of Malaysia
28 February
Nocturnal Animals
13 March
Butterflies of Malaysia
24 April
100th Anniversary of St John Ambulance of Malaysia
22 May
Cultural Instruments and Artifacts II
10 June
Annual Stamp Album 2007
30 June
Golden Jubilee of the Reign of Tuanku Sultan Kedah
15 July
IDBF Club Crew World Championships 2008
1 August
Centenary Scouting In Malaysia
14 August
Treasures of the Nation’s Visual Arts
28 August
Royal Headgears
16 September
Unique Flowers
9 October
National Angkasawan Programme
21 October
Malaysian Cartoons Series I – Lat (2008 Stamp Week)
11 November
Sea Shells
27 November
Premier Schools
16 December
DIRECT MAIL
47
Direct mail, or advertising mail, is a part of the larger direct marketing industry. Like other forms of direct marketing,
direct mail advertisement is different from the more traditional advertising in numerous ways, such as the different formats
used involving catalogues, postcards, compact disks, and dimensional mailers (in a box). The most important difference
is that direct mail advertising typically aims to obtain a direct response from the consumer, who has been sent the mail. In
comparison, general advertising overall promotes a brand or product image, informs consumers, or sways public opinion.
However, direct mail might also attempt to fulfil some or all of these goals with a primary goal to elicit a tangible and
measurable reaction. In most postal services, direct mail is either addressed to pre-selected individuals, or unaddressed and
delivered on a neighbourhood-by-neighbourhood basis.
40
30
20
10
0
2001
2002
2003
Note: Average revenue per staff is calculated (dividing revenue by number of staff)
Fig. 3.54 Average Revenue per Staff
2004
2005
2006
2007
In most countries, direct mail represents a significant and growing amount of the total volume of mails being circulated. The
growth of the direct mail market in terms of volume as well as its allocation as a part of advertising expenditure also varies
significantly across countries. The Universal Postal Union (UPU) reported that in 2007 on average direct mail worldwide
accounted for 38% of letter post items in the domestic service, and 12% in the international service.
It is clearly noted that the market for direct mail in countries such as the United States is highly developed due to its legacy
of catalogue shopping, while the United Kingdom and other European countries are in early stage. The market is likely to
take off in countries within the Pacific Rim, whereas there is potential growth for countries within Asia, such as Malaysia and
Middle East in the development of direct mail services.
Date of Issue in 2008
55
53
44
Theme
Source: Pos Malaysia Berhad
Fig. 3.55 Philately
63
60
No. of staff
900
Philately or postage stamp collecting is popular in Malaysia. The thematic scheme for postal stamps is regulated by the
Stamp Advisory Committee (SAC). In 2008, there were 16 themes compared to 17 themes issued in 2007. The following
table shows the stamp themes that were issued in 2008.
16,000
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
58
59
CHAPTER 3
CHAPTER 3
(Continued)
(Continued)
Selected Countries for Total Number of Advertising Items: Domestic Services 2005 – 2007
The courier industry in Malaysia is a highly competitive sub-sector. Courier companies have to work hard to provide excellent
customer service, lest they lose out to competitors. There were a total of 113 courier licensees in 2008, compared to 109
in 2007.
100.9
102.5
103.5
12.0
Courier Licence Numbers Vary at Periphery
10.0
8.0
6.9 6.7 6.8
6.0
3.9
4.0
4.7
3.8
2.0
3.9
3.4 3.7
1.4
1.5 1.5
1.6
0.2
0.0
USA
2005 Addressed
3.5
Germany
2005 Unaddressed
Canada
2.6
2.3 2.4
1.9
1.5
0.1
Denmark
2006 Addressed
Japan
Korea
2006 Unaddressed
1.2 1.2
0.6 0.7
1.1 1.2 1.2
0.7 0.5 0.5 0.6
0.1 0.1
1.2
Switzerland
Australia
2007 Addressed
0.1
Malaysia
2007 Unaddressed
Source: UPU
Fig. 3.56 Selected Countries for Total Number of Advertising Items: Domestic Services 2005 – 2007
In Malaysia, the development and growth of the direct mail industry is not as significant and aggressive as compared to
other countries, like the United States and the United Kingdom, as Malaysia does not have the legacy of catalogue shopping
through the mail and direct distribution channels, like in the said two countries. The industry in Malaysia is still seen to be
at its infancy stage. However, the potential market for direct mail as a revenue stream for the postal service provider, bulk
mailers and direct mail users is high, as 99% of the Malaysian population is accessible through postal mail. According to UPU
statistics, the number of unaddressed advertising items in Malaysia totalled 80.7 million in 2006.
The postal revenue in Malaysia was at RM859.3 million in 2007, representing an increase of 4.1% from 2006. The revenue
contribution of Pos Malaysia came from its Strategic Business Units (SBUs) of Courier Services (Pos Laju and AsiaXpress),
Retail (PosNiaga) and Mail Services (PosMel). The PosMel SBU is the biggest contributor to the total revenue of the company
at RM567 million or 66%. Direct mail is an emerging revenue source for the PosMel SBU and could be seen as an opportunity
for sustainable mail volume growth, as well as revenue generator for Pos Malaysia.
Year
No. of Courier Licenses
2001
115
2002
117
2003
110
2004
114
2005
112
2006
114
2007
109
2008
113
Fig. 3.57 Courier Licence Numbers Vary at Periphery
Courier Licence Growth (%) 2002 – 2008
6
4
Percentage (%)
Advertising Items (billions)
14.0
COURIER BUSINESS
2
3.7
3.6
1.8
1.7
0
-2
-1.8
-4
-4.4
-6
-6.0
-8
2002
2003
2004
2005
2006
2007
2008
Source: SKMM
Fig. 3.58 Courier Licence Growth 2002 – 2008
The top 10 players in the local courier industry comprised overseas linked and local companies. The major overseas linked
companies are DHL, Federal Express (FedEx), United Parcel Services (UPS) and TNT Express (TNT). The more established
local companies are City Link Express (City Link) which is the first and oldest licensed courier company, Nationwide Express
(Nationwide), GD Express and ABX Express.
The courier industry is a major contributor to the economy, with a total estimated revenue of RM1.6 billion in 2007. Overseas
linked companies take up more than 60% of the market share with combined revenue of almost RM1 billion. This is due to
the expansion of international deliveries and better transportation equipment, more management experience and bigger
delivery networks.
As in many other countries, financial institutions, like banks and the insurance providers in Malaysia, have widely used the
postal mail to market and advertise products and services to existing customers and potential customers. Direct mail is seen
as relatively under-utilised and has therefore potential for growth.
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
60
61
CHAPTER 3
CHAPTER 3
(Continued)
(Continued)
Courier Traffic 2004 – 2007
21.47
25
ABX Express 1.66%
KTM Distribution* 1.02%
FedEx 21.76%
8.00
6.19
2.23
3.08
2.14
4.15
3.87
5
1.82
DHL* 28.27%
13.23
12.97
8.28
10
3.77
15
13.63
Nationwide 3.98%
City Link 4.85%
CEN Worldwide 19.08%
20
(million)
TNT 4.05%
1.48
GD Express 3.44%
3.35
Top 10 Courier Providers: Revenue Share 2007
0
UPS 11.88%
2004
Documents - Domestic
2005
2006
Documents - International
2007
Parcels - Domestic
Parcels - International
Fig. 3.61 Courier Traffic 2004 – 2007
*SKMM Estimate from year 2006 data. There is no data available for 2008 for further inferences.
Source: Company reports
Fig. 3.59 Top 10 Courier Providers: Revenue Share 2007
Top 10 Courier Providers: By Revenue 2001 – 2007
Top 10 Courier Providers: Revenue Share 2002 – 2007
500
471*
450
25
1,800
400
1,600
1,354
1,049
1,074
1,100
15
14.66
800
10
10.03
7.32
5
337
289
300
0
2002
2003
2.44
2004
0
2005
Total revenue
Growth
2006
2007
247
217
198
198
100
50
–
78
67
57
43
17
12
11
83
69
60
101
73
62
39
40
17
13
12
2002
128
115
113
101
114
71
21
18
14
2003
40
29
18
14
2004
81
72
63
40
38
21
64
14
2005
52
46
23
16
2006
67
81
66
57
28
17*
2007
FedEx
DHL
UPS
CEN Worldwide
City L
Nationwide
TNT
GD Express
ABX Express
KTM
*SKMM’s estimate as none are available from the respective companies
Note: Revenue of FedEx group of 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
Fig. 3.62 Top 10 Courier Providers: By Revenue 2001 – 2007
170
164
150
2001
*SKMM Estimate from year 2006 data. There is no data available for 2008 for further inferences.
Fig. 3.60 Top 10 Courier Providers: Revenue Share 2002 – 2007
318
294
251
250
200
2.38
345
342
331
200
400
362
350
1,181
1,000
600
384
370
20
RM (million)
1,200
21.72
Growth (%)
RM (million)
1,400
416
426
1,648
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
62
63
C&M INDUSTRY DEVELOPMENTAL OVERVIEW
CHAPTER 4
(To Solidify the Future) – Services and Infrastructure
The Malaysian communications and multimedia industry has undergone far-reaching changes in its landscape from traditional
telecommunications and broadcasting services to its current phase today. Yet, the industry is poised to witness even more
enhancements in terms of speed and efficiency in service delivery, including tighter aspects of security and to the switch to
green energy and green technology. Overall, the phases of industry development since the institution of the Communications
and Multimedia Act, 1998 (CMA) are summarised in the following table:
Phases of Development Since the Institution of Communications and Multimedia Act, 1998 (CMA)
Timeframe
1999 – 2004
Formative years CHAPTER 4
High Speed Broadband (HSBB)
Regional Comparisons
Broadband Development in Malaysia
3G and Beyond 3G Bandwidth and Mobile Developments Wireless Fidelity (Wi-Fi)
Worldwide Interoperability for Microwave Access (WiMAX)
Selected Voice over Internet Protocol (VoIP) Service and Packages
Home Internet Adoption
Digital and Interactive Multimedia
Mobile TV Internet and Internet Protocol TV (IPTV)
Digital Homes
Information and Network Security
Network Security Centre (NSC)
Digital Signature
Competence Development
Spectrum Research Collaboration
New Media Research Collaboration
ICT Centre of Excellence
Rural Community Asia-Pacific – Universiti Utara Malaysia
Center of Excellence (UUM CoE) Product Design and Manufacturing
Device Development
Digital Terrestrial Television (DTT) Receiver (Set-Top Box)
Smart Antenna at Universiti Teknologi Malaysia (UTM)
A Case in Point – VoIP Phones Malaysian Grown
A Case in Point – Home Grown HSDPA (Mobile) and WiMAX Devices Universal Service Provision (USP)
Nationwide Mobile Coverage
65
66
68
71
73
77
79
81
83
84
84
85
88
89
89
89
93
93
100
100
102
102
109
109
110
111
112
113
118
2004 – 2006 Regulatory development in enhancing liberalisation and competition 2006 – 2008
Going for Growth
2008 – 2009/10
Solidifying the future through excellent
execution of implementation plans
Leveraging on the communications and multimedia industry services
through the implementation of the CMA and its subsidiary legislations
(essentially the migration of old licences to the new regime under the
CMA 1998 through creation and establishment of new economic markets
of network facilities and services, applications and content applications
services provision).
Enhancing regulatory development; promoting infrastructure development
and access the communications and multimedia industry services.
Developing the communications and multimedia industry through a national
agenda via alignment of initiatives and activities under Malaysian Information,
Communications and Multimedia Services 886 (MyICMS 886) Strategy
Plan, Ninth Malaysia Plan and mid-term review of the Ninth Malaysia Plan,
and annual national budgets.
Continuing the communications and multimedia industry development
through clearly defined SKMM industry goals and execution of implementation
plans to further operationalise MyICMS 886 strategic thrusts and targets.
This is towards accelerating communications and multimedia services
growth through provision of national coverage for mobile, broadband and
other high-speed services, including enhancement of security, quality of
service, service delivery and affordability.
Source: SKMM
Fig. 4.1 Phases of Development Since the Institution of Communications and Multimedia Act, 1998 (CMA)
The Malaysian Information, Communications and Multimedia Services 886 (MyICMS 886) strategy was launched in December
2005, aimed for implementation over the 5-year period 2006 through 2010 – which is line with the duration of the Ninth
Malaysia Plan. The MyICMS 886 is aimed at developing Malaysia into the realm of advanced information, communications,
and multimedia services (ICMS), focusing on eight key service areas, eight types of infrastructure and six growth areas. This
strategic plan was developed in consultation with the industry through the “Technology Roadmap Exercise” started in 2005
and was also based on references and pointers from similar initiatives undertaken in advanced countries in Asia Pacific and
other OECA countries.
Phases
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
64
65
CHAPTER 4
CHAPTER 4
(Continued)
(Continued)
MyICMS 886 Core Elements
HIGH SPEED BROADBAND (HSBB)
Services
Infrastucture
Growth Areas
❶ High Speed Broadband
❷ 3G and Beyond
❸ Mobile TV
❹ Digital Multimedia Broadcasting
❺ Digital Homes
❻ Short Range Communications
Hard
❶ Multiservice Convergence Networks
❷ 3G Cellular Networks
❸ Satellite Networks
❶ Content Development
(e.g. RFID-based)
❼ VolP / Internet Telephony
❽ USP – Universal Service
Provision
Soft
❹ Next-Generation Internal Protocol
(IPv6)
❺ Home Internet Adoption
❻ Information and Network Security
❼ Competence Development
❽ Product Design and Manufacturing
❷
❸
❹
❺
❻
(e.g. education, entertainment
and games)
ICT Education Hub
Digital Multimedia Receivers
(set-top box)
Communication Devices
(e.g. VoIP phones)
Embedded Components and
Devices (e.g. RFID)
Foreign Ventures
Broadband Penetration in Malaysia
The number of broadband subscribers in Malaysia increased by 53.7% to 1.7 million at end-2008.
The usage of broadband continued to increase. Asymmetric Digital Subscriber Line (ADSL) was the most popular broadband
access technology, capturing 75% of all broadband subscriptions, which translates to 1.2 million subscribers at the end
of 2008. This is followed by High Speed Downlink Packet (HSDPA) cellular mobile services on 3G with 22.5%, other (fixed
and wireless) at 1.7%, Symmetric Digital Subscriber Line (SDSL) at 0.5% and Satellite at 0.3%. As of end-2008, Malaysia’s
broadband penetration rate by household grew steadily to 21.1%. However, Malaysia’s performance is still considered infant
compared to other Asia-Pacific countries like South Korea, Japan and Australia, where broadband penetration rates are
far higher.
Percentage of Broadband Subscriptions by Technology 2008
Note: The boxed items are areas under other Government agencies and sectors which can be developed through leveraging on services and infrastructure identified in MyICMS 886
Source: MyICMS 886, SKMM
Fig. 4.2 MyICMS 886 Core Elements
HSDPA (Mobile) 22.5%
Others* 1.7%
Satellite 0.3%
ADSL 75.0%
SDSL 0.5%
The MyICMS 886 strategies aims at creating a catalytic cycle by enhancing existing investments in ICMS infrastructure that
will support growth of ICMS services in future. 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).
The thrust of MyICMS 886 is to cascade identified initiatives, targets and goals, across the industry through collaboration with
industry players. In the light of convergence, which is blurring the boundaries of traditional services, and with the dearth of
expert knowledge from the market, there is urgent need for cross-industry, close private and government collaborations to
create content and knowledge so that all parties can work within the ecosystem for mutual gains.
Going forward, SKMM is working with the industry to further enhance the operationalisation of MyICMS 886. This is towards
accelerating communications and multimedia services growth through the provision of national coverage for mobile,
broadband and other high-speed services, including enhancements to information security, quality of service, service delivery
and affordability.
Number of Broadband Subscriptions by Technology
ADSL*
SDSL*
Total
Penetration Rate
Satellite*
(Mobile)*
HSDPA
Others*
Broadband*
by Household**(%)
2007
1,002.4
6.5
2.0
96.3
8.4
1,115.6
15.2
2008
1,284.8
7.9
4.9
386.2
30.3
1,714.1
21.1
*In thousands
**Total broadband (by household) 2008 = 1.284 million; 2007 = 0.907 million
Fig 4.4 Number of Broadband Subscriptions by Technology
In 2008, numerous public- and private-sector initiatives and activities were undertaken in the implementation of the strategies
in respect of the rollout and take-up of services, infrastructure and growth areas under the MyICMS 886.
*Fixed and wireless broadband
Source: SKMM
Fig. 4.3 Percentage of Broadband Subscriptions by Technology 2008
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
66
67
CHAPTER 4
CHAPTER 4
(Continued)
(Continued)
REGIONAL COMPARISONS
Total Broadband Subscriptions by Region
35
Asia-Pacific (Selected Countries) Broadband Penetration by Household
92.0
67.6
61.5
62.7
2006
21.1
ili
pp
i
ne
s
4.1 5.5
2.0
Ph
ay
sia
al
M
wa
n
Ta
i
ra
lia
st
Au
ai
la
Th
es
do
n
In
st
a
Ea
ric
id
dl
e
Af
Ea
st
M
ro
pe
Ce
er ntr
n al
Eu a
ro nd
La
tin pe
Am
er
ic
a
As
ia
-P
ac
ifi
c
a
ic
Ea
er
es
te
rn
Am
rth
No
W
a
ric
e
Eu
2007
3Q 2008*
*January – September 2008
Source: Informa Telecoms & Media
Fig. 4.8 Broadband Household Penetration by Region
2007
3Q 2008*
40
100,000
35
30
80,000
25
60,000
20
40,000
15
10
20,000
5
0
0
k s y d d n a d g a
e y s a n a d in d ly ic y l e ic d y o
ar nd a n n e re n or d om ium nc an te ali a tri n a n ta bl ar ga ec bl n ke ic
m rla orw erla cela wed Ko inla mb ana gd elg ra rm Sta str Jap us eala Sp rela I pu ng rtu re pu Pola ur ex
n
I
T M
n
F e d u
A Z
u
F e C i B
e N itz I S
Re H Po G Re
K
x
G ite A
De eth
w
k
h
d
e
Lu
Sw
c
a
n
e
N
N
e
U
it
ov
Cz
Sl
Un
Broadband penetration (%) (subscribers per 100 inhabitants, June 2008)
GDP per capita (USD PPP, 2007)
Note: GDP per capita for Malaysia: USD 17,600 according to “Highlight of Budget 2009” by The Star, 29 August 2008”
Source: TheStar, OECD, SKMM
Fig. 4.9 Broadband Penetration and GDP per Capita
Note: For statistical purposes, China figures do not include Hong Kong SAR and Macau SAR
Source: Informa Telecoms & Media, SKMM
Fig. 4.6 Asia-Pacific (Selected Countries) Broadband Penetration by Household
15.2
10.9
8.0
10.2
5.8
nd
ia
a
re
So
ut
h
Ko
pa
n
Ja
a
in
Ch
0.6
0.3 1.3
1.6
1.1 2.4
0
2006
75.5
17.6
di
a
14.7
11.9
0
1.4
4.0
0.7 1.6 2.1 5.7
68.8
60.4
50.0
40
20
15.7
16.6
17.8 13.6
13.8
11.6
9.5
GDP per capita
58.7
53.6
60
13.5
8.7
Broadband Penetration and GDP per Capita
86.9
80
20
3Q 2008*
Source: Informa Telecoms & Media
Fig. 4.7 Total Broadband Subscriptions by Region
Broadband Penetration (%)
90.5
In
Household Penetration (%)
100
2007
40
dl
rn
te
es
W
2006
59.3
54.9
55.3
50.6
46.5
41.7
60
id
ifi
ac
-P
ia
As
Note: For statistical purposes, China figures do not include Hong Kong SAR and Macau SAR
Source: Informa Telecoms & Media, SKMM
Fig. 4.5 Asia-Pacific (Selected Countries) Broadband Penetration by Population
st
0
1.6
0.8 2.1
Household Penetration (%)
25.2
26.4
20.4
20.1
2.2
13.9
13.0
1.1 2.7
40
Af
ili
108.4
80
M
3Q 2008*
109.7
85.1
100.0
78.5
81.6
65.0
er
ic
a
Ea Ce
st nt
er ra
n
Eu l an
ro d
La
tin pe
Am
er
ic
a
2007
in
es
0.9
0.4 1.1
pp
ay
al
M
Au
Ta
st
iw
sia
an
lia
ra
nd
Th
do
ai
ne
la
sia
a
So
ut
In
h
Ja
pa
n
0
5.0 5.3
3.3
0.1
1.9 2.4
0.1 0.3 1.4
153.0
131.6
120
Ph
0.3
0.2 0.5
Ko
re
5.0
4.0
a
5
6.0
In
di
10
160
pe
2006
Am
15
ro
20.2
25.0
22.6
19.4
rth
19.8
No
20
27.2
25.1
c
22.2
23.4
Eu
25
Broadband Household Penetration by Region
30.9
Subscriptions (in millions)
30.2
28.7
30
Ch
in
a
Population Penetration (%)
Asia-Pacific (Selected Countries) Broadband Penetration by Population
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
68
69
CHAPTER 4
CHAPTER 4
(Continued)
BROADBAND DEVELOPMENT IN MALAYSIA
The Government and the communications and multimedia industry have recognised a need for high-speed broadband
networks nationwide in order to raise national competitiveness and further improve business efficiencies as well as the
quality of life in general. A number of high-level accelerated projects to provide such connections has been proposed and
more will be introduced as part of an ongoing process. Widening network coverage and increasing connection points, and
efforts to raise awareness amongst potential broadband users – thereby encouraging the take-up of high speed broadband
– comes under the scope of the High Speed Broadband (HSBB) project.
On 16 September 2008, the Government and Telekom Malaysia (TM) signed an agreement for the implementation of the
HSBB Project through a Public-Private Partnership between the Government and TM. Out of the total cost of RM11.3 billion
for the project, the Government will be contributing RM2.4 billion within the first three years of the project implementation.
TM will commit the remaining RM8.9 billion as part of its investments within a 10-year period. The project implementation will
cover the Klang Valley, industrial areas and Iskandar Malaysia in the southern state of Johor, connecting 1.3 million premises
with the HSBB network.
One interesting fact is that the project will be implemented based on a revenue-sharing basis. The two revenue-sharing
methods are “fixed revenue-sharing” and “surplus revenue-sharing”. Any cost savings from the project will be returned to the
Government and TM through a mutual pre-arranged formula.
(Continued)
Broadband Committees Set up to Ensure Targets Met
In order to ensure targets are achieved, a number of committees has been established. Under the Cabinet
Committee on Broadband, a National Broadband Implementation (NBI) Steering Committee was established to
oversee the following Working Committees for broadband implementation from the demand and supply sides.
1 State Broadband Implementation Coordination Committee
• Set a framework to monitor broadband implementation in the state:
– measurement and data gathering
– promotion and awareness
– content and applications
– infrastructure rollout
– bridging digital divide
• To develop a framework to monitor pilot projects in the state
• To identify broadband requirements for the states
• To coordinate involvement with local authorities in infrastructure rollout
• To coordinate overall issues on telecommunications infrastructure
• Monthly report on broadband take-up to the Integrated Project Management Office (IPMO)
• Progress report to the Steering Committee
2 HSBB Procurement Monitoring Committee
TM Programmes to Ensure Broadband Penetration Target is Achieved
• To provide HSBB network to Government buildings and IPTA / IPTS inside and outside of the HSBB network
coverage. A total of 83 IPTA / IPTS will be connected with the HSBB network
• To provide content platform for new content and applications providers outside the USP areas
• To develop telecentres for the public within the first five years of the project
• To provide broadband packages to the public depending on consumer affordability
• To promote broadband and provide public awareness programmes such as exhibition, conferences, broadband
centres and other related programmes
Note: IPTA – Institut Pengajian Tinggi Awam (Public Higher Learning Institutes); IPTS – Institut Pengajian Tinggi Swasta (Private Higher Learning Institutes);
USP – Universal Service Provision
Source: TM
Fig. 4.10 TM Programmes to Ensure Broadband Penetration Target is Achieved
Implementation Coordination meetings were held since November 2008, where effective and efficient measures for
implementation and liaison between SKMM and KTAK with the related Ministries and Government agencies were established.
The stakeholders of the HSBB project will monitor the rollout implementation carefully to ensure excellent execution
for success.
•
•
•
•
•
To ensure the process is aligned with the relevant Cabinet Decision on and the relevant requirements of the
Agreement
To monitor and ensure that the tender process is observed by TM according to the packages as agreed
by the Ministry of Finance
To ensure local / Bumiputera involvement according to the national agenda
To discuss issues on procurement matters and recommend solutions to Steering Committee
Progress report to the Steering Committee
3 Technical Monitoring Committee
•
•
•
•
•
•
•
To monitor the HSBB rollout at the identified coverage areas as per the Agreement
To monitor the HSBB rollout at Government offices and IPTA / IPTS
To monitor the BBGP implementation
To approve the claims as per certification by the relevant bodies
Manage the Right of Way related issues and Technical Approval for equipment installation
To upgrade exchanges for BBGP broadband-enabled at exchange at specified exchanges
4 Broadband Take-up Committee
•
•
•
•
•
•
To study the affordability trend to adopt broadband
Comprehensive broadband data collection and trend analysis to track the progress of broadband takeup
To ensure various packages available to various segments of the society
Continuous analysis on the available schemes / incentives towards contributing to the national broadband
penetration
To propose new schemes / incentives to improve broadband subscription
The Committees above are spearheaded by the the Integrated Project Management Office (IPMO), comprising
members from KTAK, SKMM and TM. The IPMO heads the NBI Plan by focusing on three core areas –
Measurements, Awareness and Promotion, and Applications.
Source: SKMM
Fig. 4.11 Broadband Committees Set-up to Ensure Targets Met
To support broadband implementation, coordination meetings were held with the Ministry of Energy, Water and Communication
(KTAK) and other agencies, namely Ministry of Housing and Local Government, local authorities and the State Planning Units.
Towards this end, SKMM was appointed effective June 2008 as one of the Technical Agencies within the One-Stop-Centre set
up within the local authorities to address the communications and multimedia infrastructure requirements. As such, SKMM
determines the communications and multimedia infrastructure requirements including those for broadband implementation
at the National Local Government Meeting.
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
70
71
CHAPTER 4
CHAPTER 4
(Continued)
Ongoing developments and on-the-ground initiatives within this project are highlighted in the table below:
3G AND BEYOND
HSBB Activities and Programmes in 2008
3G in Malaysia – A History
1. Broadband Awareness Event
A Conference on Experiencing Convergence and My Broadband was held in October 2008 to promote broadband
services – enhancing awareness of supply implementation and demand potential in the country and overseas.
2005 saw the full commercial rollout of 3G services in Malaysia. The two spectrum assignment holders, UMTS Sdn Bhd
and TM, commenced their rollout through a Mobile Virtual Network Operator (MVNO) business model. TM rolled out their
3G services through Celcom on 17 May 2005. The other was UMTS Malaysia Sdn Bhd (UMTS) on 30 June 2005, which
introduced its 3G services under Maxis network.
2. Klang Valley Broadband Push (KVBP)
KVBP pilot project was implemented to increase broadband penetration rate to 90% of households in the
Klang Valley by the year 2010. Among the pilot projects implemented include:
>> Wi-Fi in libraries
10 libraries in the Klang Valley were equipped with free Wi-Fi facility for one year to be used by visitors.
>> Wireless@KL
Collaboration project between Dewan Bandaraya Kuala Lumpur (DBKL) and Packet One Networks (M) Sdn
Bhd to install 1,500 Wi-Fi hotspots in Kuala Lumpur before April 2009. Since the launch of this project on
12 May 2008, almost 700 Access Points (AP) have been installed.
>> eSchool
A joint collaboration between SKMM and TM, the project involves the placement of ICT facilitators in
four schools (St John’s Institution, SM Cyberjaya, SM Agama Bestari Subang Jaya and SK Taman Tun Dr
Ismail) to assist teachers and students in the use of ICT facilities.
>> U-Library Pilot Project
This is a collaborative project between SKMM and six libraries – the National Library of Malaysia, the Kuala
Lumpur Library, the Selangor State Library, the Negri Sembilan State Library, Pustaka Negri Sarawak and
the INTAN Library at Bukit Kiara. This initiative looks into the provision of physical and digital access to
knowledge resources without limitation of time, geographic location and users, simply known as ‘Ubiquitous’,
i.e. anytime, anywhere by anyone. It aims at making information accessible with the widening of broadband
service and RFID technology in a cooperative library network system, for the purpose of creating, sharing
and exchanging knowledge to keep communities together, promote learning and promote social network in
a knowledge society.
The formation of the Ubiquitous Library Steering Committee (ULSC) and Ubiquitous Library Technical
Committee (ULTC) brought about a sequence of activities that include knowledge sharing, readiness
assessment, feasibility study, establishment of U-Library policies, requirement analysis and the trial run
to test the U-Library concept in relation to ubiquitous service, anytime, anywhere by anyone. Awareness
on the concept of U-Library took an initial line of events in the form of the Executive Talk@SKMM for
Information Professionals and the information industry. The first Executive Talk on 23 June 2008 by The
National Library Board (NLB) of Singapore was about “Ubiquitous Libraries: Value Innovating Services”,
and this was followed by another event on 18 August 2008 on “Broadband Opportunities and Challenges”
by prominent consultant.
>> Metropolitan Web Portal – www.kul.com.my
kul.com.my is Kuala Lumpur’s official city portal, consequence of a collaboration between SKMM and
DBKL. Launched on 12 May 2008, it is an information and news portal about Kuala Lumpur in a single
dynamic website thus making it accessible and convenient for the ‘web-surfers’ to look for information
from one site, whilst indirectly boosting economic activity for SME’s and private sector by enhancing
their web presence and visibility. It also aims to engage Malaysian to actively promote Kuala Lumpur as
a major destination for tourism and commerce, highlighting the best that city has to offer.
3. HSBB Project Implementation and BBGP under the Cabinet Committee on Broadband
In 2007, the Cabinet Committee on Broadband set the target for broadband penetration rate by household
to 50% in 2010. The broadband implementation is divided into two categories, namely HSBB delivering
10Mbps and above in selected areas and Broadband for General Population (BBGP) with speeds generally
up to 2Mbps.
Source: SKMM
Fig. 4.12 HSBB Activities and Programmes 2008
On 22 July 2005, SKMM announced a second round of tender offer for 3G services. At the close of the tender, the following
companies had submitted bids:
1. DiGi Telecommunications Sdn Bhd
2. TT dotCom Sdn Bhd
3. MiTV Corporation Sdn Bhd
Cellular Technology in Malaysia
Technology
Description
1G
(First Generation Cellular >> Based on analogue signal transmission for voice; digitised data were transmitted by modem,
Technology) similar to wired telephony (data speeds did not exceed 10Kbps)
>> The standards used in Asia was AMPS (Advanced Mobile Phone System,
ETACS (Extended Total Communications Service) and NMT (Nordic Mobile Telephone)
>> Three major players:
1. Telekom Malaysia Bhd
2. Cellular Communications Network Sdn Bhd (Celcom)
3. Mobikom Sdn Bhd
2G
(Second Generation >> Based on digital signal processing in which voice and data are transmitted
Cellular Technology)
>> Malaysia adopted two different technologies – one European-based GSM 900 (Global
System for Mobile Telecommunications) and PCN 1800 (Personal Communications
Networks), and the other being US-based TDMA (Time Division Multiple Access) operating
on 800 MHz, offered as a dual-mode analogue AMPS 800 together with D-AMPS 800
>> GSM 900
There were two companies providing this service:
1. Binariang Sdn Bhd
Launched as Maxis Mobile GSM 012 in 1995.
2. Cellular Communications Network (M) Sdn Bhd
Launched in 1995 and was known as Celcom GSM (019).
>> PCN 1800
There were three companies providing PCN services:
1. Mutiara Telecommunications Sdn Bhd
First to launch PCN service in May 1995 under the name of DiGi 1800 (016).
2. Sapura Digital Sdn Bhd
Initially known as ADAM (017), it was bought over by Time Telekom and was
as Timecel (017).
3. MRCB Telecommunications Sdn Bhd
Branded as Emartel and launched in the same year 1995. It was bought over by
Telekom Malaysia and rebranded as TMTouch (013).
(Continued)
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
72
73
CHAPTER 4
CHAPTER 4
(Continued)
Cellular Technology in Malaysia (continued)
Technology
Description
(Continued)
3G BANDWIDTH AND MOBILE DEVELOPMENTS
HSDPA (Mobile) Subscription
2G (continued)
>> D-AMPS 800
(Second Generation Mobikom operates D-AMPS 800 and the servce is offered as a dual-mode service with its
Cellular Technology) Malaysia AMPS
Number of Subscription (’000)
400
2.5G
(2.5 Generation Cellular >> Enables consumers to instantly access WAP and HTML sites using appropriate mobile
Technology) phones, PDAs or Notebooks
– General Packet Radio
>> Works together with GSM providing better data transmission speeds
Services (GPRS)
>> Maximum speed of 115Kbps* versus 9.6 and 14.4Kbps for Circuit Switched Data
>> DiGi Telecommunications was the first company to offer GPRS (2.5G) in Malaysia
2.75G
(2.75 Generation Cellular >> Add-on to GPRS to increase data rates
>> Radio-based high-speed mobile data standard
Technology)
>> Provide incumbent GSM operators the opportunity to offer data services at speeds that
– Enhanced Data rates are close to those available on 3G networks
for GSM Evolution
>> DiGi Telecommunications was the first to launch their EDGE network throughout Klang
(EDGE) Valley in May 2004
350
300
250
200
150
96.3
100
50
4.5
2006
2007
2008
Fig. 4.14 HSDPA (Mobile) Subscription
3G
(Third Generation Cellular >> Two main 3G standards in the world. 3G data transmission speed is six times faster than
Technology) GPRS and three times faster than EDGE
1. CDMA 2000
2. WCDMA
>> Malaysian operators use the WCDMA standard for their 3G service offerings
Broadband Packages from Mobile Operators
3.5G
(3.5 Generation Cellular Technology)
– High Speed Downlink Packet Access (HSDPA)
For Celcom and Maxis, 2008 was a year to improve their broadband services by offering wider choices of packages so that
users could pick and choose the best services that could meet their individual needs. In 2007, Celcom broadband offered
only two packages, but in 2008 it offered six packages, of which five were new.
*Network dependent
Source: Adapted from www.avaxx.com
Fig. 4.13 Cellular Technology in Malaysia
>> Upgraded network path that allows higher data transfer speed
>> Minimum speed: Five times faster than the current 3G technology (384Kbps)
>> Provides a smooth evolutionary path for 3G networks allowing for higher data capacity
>> Setting up these networks usually involves upgrading existing 3G infrastructure
>> Evolving rapidly with speeds up to 1.8, 3.6, 7.2 or 14.4Mbps (downlink) available
>> Maxis became the first mobile operator offering this facility at speeds up to 3.6Mbps
In 2007, there were two main mobile operators that offered mobile broadband connection – Celcom and Maxis. But in 2008,
U Mobile became the newest 3G cellular mobile service provider, joining Celcom and Maxis in providing mobile broadband
connection to users. U Mobile subscribers pay RM78 (USD22) per month to get unlimited broadband access bandwidth up
to 3.6Mbps, and free HSDPA USB modem.
For Maxis, no new packages were offered. However, the same packages offering the same access speeds were being
offered to customers at relatively cheaper prices. Nevertheless, in 2008, Maxis launched the first Maxis Broadband-ready
Dell Inspiron Mini9 notebook computer at the “Experiencing Convergence: MyBroadband Exhibition and Conference 2008”.
Maxis was the first operator in Malaysia to offer this built-in mobile broadband, in a bid to further enrich the broadband
experience for users.
iZZinet Sdn Bhd (formerly known as MoBif Wireless Broadband Sdn Bhd) was incorporated in Malaysia on 8 May 2006 to
introduce and provide mobile wireless broadband service to the Malaysian public, employing the “iBurst” technology. iBurst
Wireless Broadband System is a mobile wireless broadband technology that was develop by ArrayComm Inc from USA and
promoted by Kyocera Japan. In 2008, there were seven packages offered by iZZinet with access speeds of up to 1Mbps.
9
At only RM99 (USD28.3) x 24 month, users can purchase the Maxis Broadband-ready Dell Inspiron Mini under a 0% interest easy payment scheme from participating banks.
This package comes with a six-month Maxis Broadband subscription.
386.2
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
74
75
CHAPTER 4
CHAPTER 4
(Continued)
(Continued)
HSDPA Broadband Packages from Mobile Operators
Charges/month
Plans 2007
Bandwidth*
2008
2007
2008
Mobile Market Developments in Malaysia
1982
Privatisation Policy by Malaysian Government
1985
The first wireless telephone system was introduced by Jabatan Telekom Malaysia (JTM)
Celcom Daily
RM8
• RM6 per day (promotion Up to 3.6Mbps Up to 384Kbps
Unlimited
per day period valid from 28 October 2008 to 28 January 2009)
• RM8 per day (after the promotion period)
GPRS / 3G
and 3Gx
HSDPA
(Mobile)
1988
Celcom Malaysia Sdn Bhd (Celcom) was founded10
1992
Celcom was under the management of Technology Resource Industries Berhad (TRI)
1997
Telekom Malaysia introduced CDMA-based mobile homeline services
1995
Maxis was incorporated
GPRS / 3G
1996
TIME dotCom was incorporated
1997
Mutiara Swisscom Bhd was listed – (now known as DiGi.Com Berhad)
GPRS / 3G
and 3Gx
HSDPA
(Mobile)
1999
Celcom was incorporated
2001
TIME dotCom was listed
2002
Maxis was listed
GPRS / 3G
2003
Celcom merged with Telekom Malaysia Berhad (TMB)
2003
Celcom Malaysia Sdn Bhd became the first provider to introduce video call based on 3G WCDMA technology
2005
Celcom’s 3G service launched
Consolidation of cellular operators in Malaysia completed11
2007
Maxis was de-listed to operate as a private company
SKMM handed out four 2.3GHz wireless broadband spectrum licences to four companies12
U Mobile services launched
Launch of Malaysia’s first Mobile Virtual Network Operator (MVNO): Asia Sdn Bhd (Merchantrade)
2008
Launch of three more MVNOs in Malaysia: REDtone Mobile (REDtone), Tune Talk (Tune Talk) and
XOX.com (XOX.com)
U Mobile launched its 3G content services
Green Packet through its unit Packet One Networks (Malaysia) Sdn Bhd, YTL E-Solutions Bhd (YTLE),
Asiaspace Sdn Bhd and REDtone launched WiMAX service in selected areas
Monthly Unlimited
RM68 –
Up to 384Kbps
–
Pay Per Use –
RM0.10 per 10Kb –
Up to 3.6Mbps
(Maximum RM250 per month)
Broadband –
•RM89 (With Modem)
–
Up to 384Kbps
Basic
•RM68 (Modem Purchase at
RM333 with Celcom
Broadband Plan)
Broadband
–
•RM119 (With Modem)
–
Up to 3.6Mbps
Advance
•RM98 (Modem Purchase at RM333 with Celcom Broadband Plan)
TM Net Streamyx
Combo 1
Combo 2
Combo 3
Combo 4
Combo 5
–
–
–
–
–
RM60
RM90
RM110
RM140
RM160
–
–
–
–
–
Maxis
Starter
RM68
RM68
384Kbps Advanced
RM78
RM78
640Kbps
Power
RM98
•RM88 (Promotion Price)
•RM78 (Maxis Postpaid Up to 3.6Mbps
Bolt-On Promotion)
384Kbps
512Kbps
1Mbps
2Mbps
4Mbps
384Kbps
640Kbps
Up to 3.6Mbps
GPRS / 3G
and 3Gx
HSDPA
(Mobile)
ADSL
HSDPA
(Mobile) /
3G
Power
RM138 •RM118 (Promotion Price)
Up to 3.6Mbps Up to 3.6Mbps
Mobile
•RM98 (Maxis Postpaid Bolt-On Promotion)
HSDPA (Mobile) /
3G
U Mobile
HSDPA
(Mobile)
Surf with U –
(without modem)
RM68 (RM58 – promotional
–
3.6Mbps
monthly fee until 31 December
2008
Fig. 4.16 Mobile Market Developments in Malaysia
*Speed of services is on “best efforts” basis
Source: Companies websites
Fig. 4.15 HSDPA Broadband Packages from Mobile Operators
10
Under its name STM Cellular Communications Sdn Bhd. The first to provide GSM based mobile services.
Bringing the number down to only three operators: Celcom, Maxis and DiGi.
Y-Max Networks, Packet One Networks, Asiaspace and REDtone International.
11
12
Network
Year
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
76
77
CHAPTER 4
CHAPTER 4
(Continued)
(Continued)
MVNOs in Malaysia
WIRELESS FIDELITY (Wi-Fi)
In Malaysia, SKMM awarded Mobile Virtual Network Operator (MVNO) licences to four companies – Merchantrade Asia Sdn
Bhd, REDtone International Bhd, TuneTalk Sdn Bhd and XOX.com Sdn Bhd. Merchantrade Asia and REDtone have already
launched their services, while Tune Talk and XOX.com are expected to launch their respective services in 2009.
As at end-2008, there were 1,970 hotspot locations in Malaysia. Selangor experienced a 61% growth from 356 hotspot
locations in 2007. The increase could partly be due to the Klang Valley Broadband Push (KVB90) that aims to create a
broadband culture and hence, demand for broadband connectivity. All states in Malaysia showed positive growth in hotspot
set-ups, except for Sabah and Labuan. States with unchanged hotspots location since 2007 were Melaka, Perlis and
Putrajaya. With the price of notebook computers becoming more affordable, wireless hotspots are expected to grow in the
near future.
W.P. Kuala Lumpur 25.0
Perlis 0.1
Pulau Pinang 6.2
Johor 5.3
Sabah 1.9
Terengganu 2.1
Pending Celcom Mass market
Low cost Pan ASEAN MVNO Prepaid voice and Short
launch
Messaging Service (SMS)
Fig. 4.18 Percentage (%) of Hotspot Locations by State, 4Q 2008
600
319
352
356
500
400
300
Fig. 4.19 Number of Hotspots by State
ja
ya
an
ra
ut
.P
m
ab
u
.P
.L
W
.P
Lu
la
ua
.K
W
pu
r
k
wa
ra
ba
h
Sa
nu
ga
2008
13
11
11
11
9
9
10
8
75
75
79
90
43
35
39
41
37
44
42
37
2007
W
.P
2006
Sa
la
u
Pu
Ne
ge
ng
rli
s
Pe
ra
k
Pe
n
ng
ha
Pa
ri
Se
m
bi
la
el
ak
a
M
an
nt
Ke
la
da
h
Ke
r
ho
Jo
2005
or
100
re
200
0
352
395 376
494
574
Number of Hotspots by State
196
Note: Mobile Network Operator (MNO)
Source: Various websites and meetings with Malaysian MVNO operators
Fig. 4.17 Malaysian MVNOs
Purchases via mobile devices,
top-up facilities, content and
services offering a social
networking element. Also, in its
suite of services is a feature that allows consumers to seamlessly
access mobile web services
through the web and mobile
devices
Selangor 29.1
81
104
36
31
56
64
30
30
37
47
20
34
41
41
24
31
36
40
58
80
88
96
44
43
111
XOX.com
Pending Celcom Young Chinese Offering customers
(Prepaid and
launch
market
full-fledged services
Postpaid)
(Nov ‘08)
competitive with those
from a mobile network
operator
Perak 9.9
79
94
Tune Talk
W.P. Labuan 0.4
ng
SMS, MMS, GPRS and 3G
technology
One-stop supplier and
Service Provider of total
telco solutions catering
to corporate, SMI, SME
and SoHo communities
in Malaysia
Kelantan 2.4
Melaka 2.2
Negeri Sembilan 2.0
Pahang 4.9
la
REDtone Mobile 2008
Celcom Enterprise (Postpaid)
customer
Kedah 3.3
Sarawak 4.6
W.P. Putrajaya 0.6
Te
Short Messaging Services (SMS),
Multimedia Messaging Service
(MMS), General Packet Radio Service (GPRS), and mobile content
Se
Merchantrade
2007
Celcom Foreign migrant Provide foreign workers
(Prepaid)
workers in in Malaysia with mobile
Malaysia
and remittance services
Percentage (%) of Hotspot Locations by State, 4Q 2008
88
94
120
122
Service Provided
ng
Description
na
Target
Market
Pi
Launch Host
Year
MNO
Number of Hotspots
MVNO
0
0
2
2
Malaysian MVNOs
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
78
79
CHAPTER 4
CHAPTER 4
(Continued)
(Continued)
Selected Hotspot Service Providers 2008
Providers
Packages
Price
WORLDWIDE INTEROPERABILITY FOR MICROWAVE ACCESS (WiMAX)
Bandwidth*
Technology
Airzed Broadband
• 1-Year Unlimited RM140
Up to
IEEE 802.11b
Sdn Bhd Access Plan
11Mbps
www.airzed.com
• 3-Month Unlimited RM40
Access Plan
• 1-Month Unlimited
RM30
Access Plan
Danawa Resources
• No package
Sdn Bhd offered
www.danawa.com.my
Free of
charge until
31 Dec ‘08
Up to
384Kbps
Selangor, Kuala Lumpur,
Melaka Pahang, Perak,
Pulau Pinang, Johor.
IEEE 802.11b/g Sarawak
JARING • 1 day
RM5
Up to
IEEE 802.11b
Communications
• 30 days
RM20
384Kbps
Sdn Bhd
• 90 days
RM50
www.jaring.my
Packet One Network • 1-Day Plan
RM5
n.a.
n.a.
(Malaysia) Sdn Bhd • 7-Day Plan
RM10
www.p1.com.my
• 30-Day Plan
RM20
Telekom • Streamyx ZONE™
Malaysia Bhd Streamyx Package RM15 – RM18 Up to
IEEE 802.11b
www.tm.com.my 1515 Package
RM20 – RM25 384Kbps
Prepaid Package
RM5 – RM28
Zapzone Wireless
• Annual
RM40
Up to
IEEE 802.11b
Hotspot subscription
per month
512Kbps
www.zapzone.com.my • 1 hour-day
RM8
• 1 day
RM16
• 1 week
RM25
Pulau Pinang, Perak,
Kelantan
Selangor, Kuala Lumpur
The four companies that hold the 2.3GHz WiMAX licences met the end-August 2008 deadline for launching commercial
services. Packet One Network (Malaysia) Sdn Bhd (P1), formerly known as MIB Comm, was the first to launch WiMAX in
the market in August 2008, followed by the first phase of the WiMAX network by REDtone International Bhd (REDtone) that
covers the Kota Kinabalu business district. The other two WiMAX service providers are Y-Max Networks Sdn Bhd (Y-Max),
which was formerly known as Bizsurf (Malaysia) Sdn Bhd, and Asiaspace Sdn Bhd. Y-Max rolled out its WiMAX services to
selected businesses in Bukit Bintang area in Kuala Lumpur and Asiaspace, which markets WiMAX under the “amax” brand,
launched services in Kuala Lumpur.
REDtone hopes to target 500 corporate customers and the SME segment in the first six months of its WiMAX operations,
focusing on high-density areas in Kota Kinabalu and Kuching. Its WiMAX services for the consumer segment are expected
to start towards the end of 2009 or early 2010. P1 target is to cover 35% and 46% of the population in 2009 and 2010
respectively. Asiaspace plans to provide WiMAX’s service to cover between 40% to 45% of the country’s population in 2010.
Most of the targeted areas are based on population density and commercial viability. Y-Max on the other hand, plans to roll
out WiMAX services for home users, once it has established an extensive WiMAX network coverage area.
Market research firm Strategy Analytics13 projected that Malaysia’s WiMAX market would grow in five years’ time to more than
1.5 million subscriptions, generating revenues of USD1.4 billion. The projection was based upon the Malaysian Government’s
plan to grow broadband penetration to 50% by 2010 and the Government sees WiMAX as one of the enabling technologies
to reach these goals. All licence holders need to attain 25% population coverage by end-2008, and at least 40% of the
population in 201014. Optimistically, collaboration with technology partners would also help licence holders to expedite
network rollout, as well as to provide affordable, reliable and scalable WiMAX services to consumers.
Selangor, Kuala Lumpur,
Johor, Melaka, Sabah,
Pulau Pinang, Pahang, Kedah, Perak, Sarawak,
Perlis, Negeri Sembilan,
Terengganu, Kelantan,
W.P. Labuan
Kuala Lumpur
Note: All packages are based on the Terms and Conditions imposed by companies
*Speed of services is on “best efforts” basis
n.a. = not available
Source: Companies’ websites
Fig. 4.20 Selected Hotspot Service Providers 2008
13
14
“WiMAX in Malaysia to Generate USD 1.4B” by myWireless, November 2008
“Key [email protected] TARGETS” by myWireless, November 2008
Service Area
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
80
81
CHAPTER 4
CHAPTER 4
(Continued)
(Continued)
WiMAX Operators in Malaysia
WiMAX Services
Charges/Month Bandwidth
Launch
Date
Launch
Operation Partner/
WiMAX Area Area
Collaboration
Asiaspace
(30 August ‘08)
From RM99 to From 1Mbps 30 August ‘08 Peninsular
Taman Tun
RM138
to 1.5Mbps
Malaysia
Dr Ismail
P1
(19 August ‘08)
RM60
400Kbps
19 August ‘08 Peninsular
Malaysia
RM100
Up to 2.4Mbps
REDtone
(20 August ‘08)
*From RM588
**From RM2,488
to RM4,288
KLCC, Setapak,
Sentul,
Subang,
Gombak
1Mbps
20 August ‘08 Sabah and
Kota
Sarawak
Kinabalu
From 1Mbps
to 2Mbps
Y-Max
(28 August ‘08)
RM80 to RM160 Up to 2Mbps 28 August ‘08
Peninsular
Malaysia
Bukit Bintang
40
Island & Peninsular Bhd
(I&P), Huawei
Technologies
Co Ltd
India
35
Indonesia
CAGR (2007 – 2012) (%)
Service Providers
(Launch Date)
Mobile WiMAX: Market Opportunities
Alcatel-Lucent,
Intel
30
Increasing attractiveness
for Mobile WiMAX
25
Philippines
20
Malaysia
Thailand
Middle-East / Africa
15
Latin America
10
Poland
China
Czech Republic
New Zealand
Hungary
Italy
5
Motorola
Electronics Sdn Bhd
Austria
AUS. US
Japan
S’pore
Germany Spain
UK
Belgium
Sweden
France
0
0
10
20
30
40
50
60
Taiwan
Canada
HK
South Korea
Switzerland Netherlands
70
80
90
100
Consumer Fixed Broadband Connections (% Household Penetration)
XOHM, Cisco
Services Malaysia
Source: “Mobile Broadband Trends and Implications” by Gartner, during Experiencing Convergence.MyBroadband 2008 Exhibition and Conference
Fig. 4.22 Mobile WiMAX: Market Opportunities
Note: All packages are based on the Terms and Conditions imposed by companies
* Packages for corporate customers for shared connection
** Packages for premium dedicated lines
Source: Companies’ websites, thestar.com.my, www.nst.com.my, www.theedgedaily.com, SKMM
Fig. 4.21 WiMAX Operators in Malaysia
Began Operations VoIP Service
Packages Offered
2005
BB phone VoIP offering services based on prefix
Monthly rental:
(formerly known number 0154
• Business : RM25/month
as IP Telephony)
• Consumer : RM10/month
• On net calls: free
May 2006 i-Talk with mobile
Prepaid calling card for making national
Access via 1800 87 3535:
and international calls (can be used to Call to Fixed – RM0.12/min
access Internet as well) with missed
Call to Mobile– RM0.15/min
callback features
Rate
Access via 1800 87 3636 (callback):
Call to Fixed – RM0.20/min
Call to Mobile– RM0.25/min
WiMAX holds promising potential as an alternative technology for fixed and broadband mobile service, especially to the
underserved areas that are unlikely to receive fixed line broadband services. Among the challenges for developing countries,
like Malaysia, is to deal with issues on coverage and quality of services. In developed countries such as Japan and the US,
the key challenges are to deliver key value differentiation in WiMAX technology, against other access technologies such as
xDSL, fibre, Wi-Fi and cable, in order to fulfil unmet needs of the users.
SELECTED VOICE OVER INTERNET PROTOCOL (VOIP) SERVICE AND PACKAGES
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
82
83
CHAPTER 4
CHAPTER 4
(Continued)
(Continued)
Selected VoIP Service and Packages (continued)
In Malaysia, the growth of home Internet adoption has been rather encouraging. The chart below shows a steady trend
from 2005 to March 2008 across the individual states of Malaysia, with Klang Valley comprising mostly Selangor and Kuala
Lumpur, exhibiting the most percentage shares in broadband adoption at 26.1% and 13% respectively.
Selected applications, such as chat,
file and folder sharing, voice call and Internet
sharing, are free
Percentage Share of Household User Base
25
20
15
10
5
Call rates from as low as ½ sen per second
for calls from mobile to mobile
pu
r
k
Lu
m
wa
.P
.K
ua
la
ba
h
ra
Sa
Sa
ga
ng
re
Te
W
2005
2006
2008
Note: In 2007, there was no primary survey carried out.
Source: HUIS 2008, SKMM
Fig. 4.24 Percentage Share of Household User Base
Methods of Internet Connection
Both (Dial-up and
Broadband) 1%
Dial-up 25%
Broadband 74%
Source: Industry, BERNAMA, italkbuddy.com.my, www.tm.com.my
Fig. 4.23 Selected VoIP Service and Packages
Fig. 4.25 Methods of Internet Connection
The demand in home Internet adoption is fuelled,
specifically, by two types of access modes – dial-up and
broadband connections. Under the MyICMS 886 strategy,
the high-speed broadband Internet connectivity is one
of the eight services that drives the delivery of digital
information across industrial, commercial and consumer
sectors. As of March 2008, 74% of home users accessed
the Internet through a broadband connection. Home dialup users accounted for 25%. It is worth noting that 1% of
home users indicated having both broadband and dial-up
access.
One of the trends observed in Household Use of the
Internet Survey (HUIS 2008) is that overall, home users
spend on average of 12 hours per week on the Internet.
nu
or
ng
s
Se
la
rli
k
Pu
Ne
ge
Pe
ra
Pe
ng
na
ng
Pi
la
u
Pa
m
bi
ha
la
a
ak
el
an
ri
Se
M
nt
da
The RM10 starter pack comes with a SIM
card and RM5 worth of call value
Ke
December iTalk Mobile
All calls are routed to the iTalk
2008
Starter
system and are charged according to iTalk rates.
Other conveniences:
•Direct dialling the number
•A six-month validity period from
the date of activation
•Share iTalk cards with up to
five other people
•Can be used with Maxis, Celcom,
or DiGi networks, and SIM cards
ho
Purchase items for MOJI will be charged
RM3 to purchase 100 Mojikan Dollars
Jo
n
0
la
PC to offnet call will follow current iTalk rates
In 2008,
Klang Valley
Users 39.1%
30
h
Other nearby services categorised as
premium services, such as screen
sharing, screen control and unlimited
Internet sharing, are chargeable at RM2 per
month
r
2007 iTalk Buddy
Applications:
•Communications tools, including instant messaging and PC calling
•Share tools, including files and folder
sharing, Internet sharing and screen
sharing
Value-added services:
•PC to Mobile Calls / SMS
•MOJI Virtual Pet Services
•Mobile Blogging SMS
Rate
Ke
Packages Offered
Percentage (%)
Began
Operations VoIP Service
HOME INTERNET ADOPTION
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
84
85
CHAPTER 4
CHAPTER 4
(Continued)
Intensity of Use
Percentage (%)
Internet Usage
28.0
30
23.2
25
19.3
20
16.0
15
8.4
10
5.2
5
28 hours
per week
and above
22 – 28 hours
per week
15 – 22 hours
per week
8 – 15 hours
per week
4 – 8 hours
per week
0
< 4 hours
per week
(Continued)
Fig. 4.26 Intensity of Use
For getting information
Communication by text
Leisure
Education
Financial activities
Public Services
e-Government transactions*
Online stock trading*
Others
*not
2005
2006
2008
40.5
99.6
47.1
46.8
14.6
12.7
–
–
1.3
84.5
80.7
52.7
45.9
23.6
12.0
–
–
0.2
94.4
84.7
63.5
64.5
31.8
29.2
19.8
5.9
0.7
canvassed in 2005 and 2006 surveys
Fig. 4.27 Percentage Share of Household User Base
DIGITAL AND INTERACTIVE MULTIMEDIA
Mobile TV, digital multimedia broadcasting and digital homes are among the service areas under the MyICMS 886 strategy.
As the industry move towards mobility, interactivity and digitalisation, it is critical to meet users’ needs in order to facilitate a
rich media environment, and vice-versa. This is in line with the 10 National Policy Objectives of ensuring long-term benefits for
end-users, and establishing Malaysia as a global hub for communications and multimedia information and content services.
MOBILE TV
Another new broadcasting platform emerging is the mobile TV broadcasting services. The mobile TV trials are ongoing in
Malaysia, and a full-scale broadcast is dependent upon the progress of the trials.
Maxis and Celcom are currently offering mobile TV (video streaming) using existing 3G Wideband Code Division Multiple
Access (W-CDMA) standard. They are currently upgrading their networks with improved 3G network protocol, namely, HSDPA,
for faster data speeds. DiGi is also providing mobile TV service using EDGE, although the speed is slightly slower than 3G.
Broadcast technologies (in contrast to unicast) for mobile TV include Digital Video Broadcasting-Handheld (DVB-H), Digital
Multimedia Broadcasting (DMB), TDtv (based on TD-CDMA technology from IPWireless), 1seg (based on Japan’s ISDB-T),
TDAB and MediaFLO. These technologies provide much faster data speeds compared to unicast technology, and utilise
broadcasting bands, namely Very High Frequency (VHF) band III, and Ultra High Frequency (UHF) Band IV and V.
Media Prima launched 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, aired by TV3, NTV7, 8TV and TV9, on their 3G mobile phones,
and also watch in real-time, views 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 applies when the video call is made.
INTERNET AND INTERNET PROTOCOL TV (IPTV)
Television content is also accessible through the Internet. There are two types of TV service – Internet TV and Internet
Protocol TV (IPTV). Internet TV is hosted on a Web portal and delivered over the Internet. This is similar to normal consumer
Internet experience, in that any rights holders can become an Internet TV broadcaster, as it is based on the same publishing
model that exists on the Internet.
IPTV is a model for marketing video and television-type content through secure and protected IP telecom networks. IPTV is
a regulated service that requires a license to operate. Among the IPTV available in Malaysia are FineTV and HyppoTV.
In terms of Internet TV, Media Prima launched Catch-Up Online TV service in September 2007 on the websites of TV3, NTV7,
8TV and TV9. The service enables Malaysians to watch selected programmes on the websites within 12 hours after the
programmes have been shown on TV.
Mobile TV service to handheld devices promises to enhance the delivery of multiple convergent digital media, namely,
broadcasting, telecommunications and information technology in the so-called mobile multimedia services.
Current cellular technology already allows subscribers to experience mobile TV service. It allows viewers to enjoy personalised,
interactive TV, with content specifically adapted to the mobile medium, which is streamed to the subscribers through a
cellular network. The services and viewing experience of mobile TV over cellular networks differ in a variety of ways from
traditional TV viewing. This is a unicast technology which requires multiple connections from the same streaming server,
even when streaming the same content. In addition to mobility, mobile TV delivers a variety of services, including video-ondemand and live TV programmes.
Another exciting opportunity for users is Mobile TV podcasts, where content is delivered to a user’s mobile on demand or
by subscription. Stored locally on the handset, this content can then be viewed even when there is no network connection.
Furthermore, a service provider can schedule the delivery to “off-peak” hours, for example, during the night.
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
86
87
CHAPTER 4
CHAPTER 4
(Continued)
(Continued)
TM Net: Limited IPTV Offering in the Northern Region
Scope of Work
IPTV and Broadband service offered to High-Speed Broadband areas in
Penang Island and Kulim.
RTM DTT Trial Objectives
a. Study on Set-Top Box (STB) receivers
Customer Premise Equipment
b. Management of the digital Multiplex (MUX)
c. DVB-T coverage characteristics and capacity
• North Penang – Plaza Gurney
to Batu Ferringhi to Telok Bahang
Locations
• South East Penang –
Bayan Lepas, Batu Maung
to Bayan Baru
• Kulim Hi-Tech Park
Timeframe
Service
Offered
d. Viewer perception and response to new Digital TV service
North West
e. Interactive applications on middleware (MHP)
Penang
Set-Top Box (STB)
Source: RTM
Fig. 4.29 RTM DTT Trial Objectives
South East
Further trials may include the use of RTM trial network platform and TM network assistance to widen the trial to include other
stakeholders in the broadcasting industry. The objectives are in the table below:
January to December 2008
• Streamyx 2.0Mbps with IPTV at RM99/month
• Streamyx 4.0Mbps with IPTV at RM124/month
Extended DTT Trial Objectives
IPTV Content Mix
Home Plug
Broadcast TV Channels
• RTM1 • RTM2 • TV3 • NTV7 • 8TV
• Channel News Asia • Al-Jazeera International
b. To evaluate the new Malaysian Standard STB, which comes with the new MPEG-4 Part 10 (H.264) video coding
standard and MHEG5 middleware
Genres
Video on Demand (VOD)
(100 hours)
Movies
• Malay / Indonesia • Chinese • English
• Indian Bollywood Hindi
c. To make available a live platform for STB manufacturers / importers to evaluate their STB compatibility, and
SIRIM to develop certification and collaboration procedures with the broadcasters
Series
• Chinese Drama • English Drama • English Animation
Interactive Games
Casual Games and Puzzles
Movie Trailers
Latest Blockbuster releases
a. To involve more broadcasters and content developers in the trial in order to understand the new converging
business and prepare the industry for eventual launch
d. To showcase the new DTT service and to allow viewers the new TV experience (if possible, the full scope of
the new service, interactive and HD) and to create awareness
Multi-Port Modem
Note: SIRIM - Standards and Industrial Research Institute of Malaysia
Fig. 4.30 Extended DTT Trial Objectives
Source: TM Net
Fig. 4.28 TM Net: Limited IPTV Offering in the Northern Region
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.
DTT Implementation
RTM conducted Digital Terrestrial TV (DTT) trial transmission, which was launched in 2006, for the Klang Valley area. The DTT
trial service is without involvement from other broadcasters. It was transmitted from two transmitter sites (Ulu Kali and KL
Tower) using DVB-T standard, Multimedia Home Platform (MHP) as middleware, and MPEG-2 audio-video compression standard.
Although the RTM DTT trial was completed, transmission still continues with further evaluation.
The DTT implementation roadmap, with a schedule of planned activities, leads up to the Malaysia switch off date for
traditional broadcast service of end-2015. SKMM intends to issue a Marketing Plan to be followed by a tender in 2009
to award spectrum to the Common Integrated Infrastructure Provider (CIIP) for fixed and mobile TV services to provide
transmission services and to manage the digital multiplex (MUX) hub for the broadcasters and applications providers.
DTT Trial by RTM
During the Beijing Olympic Games in 2008, RTM successfully tested its trial DTT platform to transmit High Definition (HD)
content. The HD test transmission was conducted in August 2008 using content from Beijing, which was delivered directly
through satellite and re-broadcasted over the air by RTM DTT platform. The trial was conducted throughout the duration of
the Olympics games, and provided consumers a good experience or exposure to HD.
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
88
89
CHAPTER 4
CHAPTER 4
(Continued)
DIGITAL HOMES
INFORMATION AND NETWORK SECURITY
The MyICMS 886 strategy identifies digital home as a new service that is aimed at improving the quality of life of Malaysian
as we take through the digital revolution. The digital home concept goes beyond a home with broadband access. It one
where the home is equipped with a home network that allows disparate devices to interoperate seamlessly, so that users are
able to access digital content from any device, anytime and anywhere, both inside and outside the home, through a home
gateway.
Malware is a cyber threat and a reality, and no networks are spared. There is increased security threat on the Web, e-mail,
as well as Web 2.0 social networking websites like Facebook and LinkedIn. Although more defences have been put in place
at e-mail gateways, thereby providing home users some protection from their ISPs or web e-mail account service providers,
cyber-criminals are reinventing malware and viruses to overcome these protective measures. The message is clear: concerted
and collective efforts at national, regional and international levels are required to deter and manage such criminal acts that are
costly to both consumers and businesses. To counter these threats, SKMM has in place a network security centre.
Today, service providers deliver distinct services to discrete devices. As the connected home takes shape, services will be
delivered by a centrally-controlled system, where devices can “talk” to each other, and services are designed to meet the
needs of consumers. For example, a refrigerator can “talk” to the control system, that in turn alerts the nearest convenience
store to deliver milk supply to the home, with payment completed electronically. As such, services will be created, managed
and delivered around the consumer-centric lifestyle packages, rather than the product-centric silos that characterise today’s
product offerings.
The challenges today include the requirements for creating awareness and availability of the technologies and products of
digital homes. Infrastructure build-out is a priority, as exemplified by the High Speed Broadband initiatives currently underway
in Malaysia. Universal standards for the interoperability of home network products are being worked out internationally, such
as the recently launched HomeGrid Forum on the International Telecommunications Union G.hn standard for home automation,
and security products throughout the house, which greatly simplify consumer purchasing and installation processes.
NETWORK SECURITY CENTRE (NSC)
The Network Security Centre (NSC) is a cybersecurity monitoring centre initiated by SKMM. Its objective is to reduce
the probability of cybersecurity risks from emerging by disseminating early warnings and sharing information among its
stakeholders, thus minimising any adverse impact to the overall communications and multimedia industry.
The NSC is also a member of the Internet Banking Task Force (IBTF), an industry task force looking at the issues of Phishing,
Internet banking frauds and identity thefts.
In its efforts to steer this sector of the industry forward and towards a common destination, a two-pronged approach from
the developmental and promotional perspectives is applied:
The NSC collaborates with various international organisations that specialise on neutralising various cyber threats like
Botnets, Virus, Malwares and Phishing. These organisations include F-Secure, Team Cymru and Microsoft to ensure that the
NSC personnel are kept current with the latest information and trends on these cyber threats and the technical know-how to
act against these cyber threats.
1. Development – Centre of Excellence to address issues on interoperability, standards and related areas, and
2. Promotion – showcasing through a Model Digital Home and education and awareness through exhibitions and
conferences.
At the ASEAN level, the NSC has participated in cyber drill exercises. Apart from that, the NSC collaborates with other
similar agencies in ASEAN and APEC on various network security, capacity building and information sharing initiatives. It also
participated in the cyber drill exercise organised by Majlis Keselamatan Negara.
To highlight possible innovations that would define the digital future, a Model Digital Home was constructed at the Multimedia
University at Cyberjaya. This model digital home functions as:
Furthermore, SKMM carries out various network security awareness campaigns to inform the public on how they can
ensure their own safety when they are online, and to provide them with information on how to seek assistance should they
experience any cyber incidence.
1.
2.
3.
4.
A technology showcase of innovative digital home related products
A platform to introduce and demonstrate functionality of digital home technologies from Centre of Excellence for Digital
Home (CDH), tertiary institutions, and industry partners
To provide a physical environment that acts as a testbed for newly invented products / solutions from CDH
To generate interest and promote adoption of digital living – from both the business’ and consumer’s perspectives
This Model Digital Home showcases an end-to-end digital home ecosystem for innovative and integrated technology featuring
3G mobile home monitoring, an integrated security system, an intelligent home automated control system, a sensoractivated controlled environment, and other gadgetries. This Model Digital Home allows visitors to experience the latest
communications and multimedia technology, exemplifying a true meaning of convergence and digital living.
In addition, a CDH is being established, with the key objective to encourage research and development of digital home
related products and technology. Prototypes developed from research can be tested in the model home, for individual and
holistic functionality test. The Model Digital Home would function as a platform for designers and engineers to exhibit their
prototypes. By doing so, it is hoped that the concept of the digital home of the future would be commercially attractive
to businesses.
To further promote the Digital Home concept to the industry and the public, SKMM together with KTAK, TM and other
selected partners, showcased D’Impian, a Digital Home Model at the “Experiencing Convergence. MyBroadband Conference
and Exhibition 2008”, held at the Kuala Lumpur Convention Centre (KLCC) from 27 – 30 October, 2008, D’Impian showcased
how progressive technology of today would enable converged video, voice and data (“triple-play”) services, providing
seamless consumer experience.
DIGITAL SIGNATURE
One of the goals for the MyICMS 886 implementation plan is to ensure information security, integrity and reliability of
networks. Digital Signature is a subset of the network security implementation that would ensure the reliability, integrity,
privacy and accountability of end-users’ data and to ensure that they are not compromised.
A digital signature will enable users of insecure public network such as the Internet to securely and privately exchange data
through the use of public and private cryptographic key pair that can be obtained and shared through trusted authorities
(Certification Agencies).
Background
The Digital Signature Act 1997 (DSA 1997) and Digital Signature Regulations 1998 (DSR 1998) were introduced as part of
the Malaysian Cyber Laws. Since then, both have been the primary references in regulating Certification Agencies and the
use of digital signatures in Malaysia.
In the new digital environment, Public Key Infrastructure (PKI) ensures that sensitive electronic communications are kept
private and protected from tampering. It provides assurances in the identities of the participants in such transactions, and
prevents them from denying repudiating participation in transactions.
(Continued)
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
90
91
CHAPTER 4
CHAPTER 4
(Continued)
(Continued)
Purpose
Malaysian Market for Digital Signatures
DSA 1997 and DSR 1998 are the enabling legal framework that allow development of electronic commerce and mobile
commerce by providing an avenue for secure online transactions through the use of digital signatures.
The current market size is relatively small but steadily growing. To date, there are only two licenced Certification Agencies,
namely MSC Trustgate.com and Digicert. Since the introduction of digital signatures, Malaysia is experiencing an encouraging
growth in the issuance of digital certificates. The issuance of digital certificate by Digicert and MSC Trustgate.com is as in
the diagram below:
Analysis on Digital Signature Market in Malaysia
Looking at the trends for digital signatures in Malaysia, the catalyst for digital signature is the need for secure authentication
and non-repudiation of electronic transactions. The growth of e-commerce is expected to drive the demand for digital
certifications. Currently, the biggest retail users of digital signatures are from the e-filling sector, which stands at 1.5 million
subscribers as of December 2008, while the biggest digital signature users are from financial sectors (Enterprise Banking)
and government agencies.
Market Segmentation for MSC Trustgate.com
BNM – CTCS and RENTAS 604
Banking – Maybank and RHB
7,935
Digital Certificates Issued by MSC Trustgate.com and Digicert (2004 – 2008)
Banking – CIMB Bizchannel 10,953
BNM – CTCS Project New
666
Invest CA – BNM and Corporate 17,183
E-Government 225,464
SSL / Server ID
1,569
1.0
Number of Certificates (million)
Market Segmentation for Digicert
SSL / Server ID 1,303
Individual
183
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
Bank and Individual 627
0.0
2004
2005
Digicert
2006
2007
2008
LHDNM e-Filing Project 1,584,885
E-Government – CDC 133,094
MSC Trustgate.com
Fig. 4.31 Digital Certificates Issued by MSC Trustgate.com and Digicert (2004 – 2008)
Note: Number of cerificates issued as at December 2008
Fig. 4.33 Market Segmentation for Digicert
Note: Number of cerificates issued as at December 2008
Fig. 4.32 Market Segmentation for MSC Trustgate.com
Digital Signatures by Type
In June 2008, SKMM organised a mobile banking symposium to bring together industry players from telecommunications
and financial sectors to deliberate on the future of mobile banking. Turkcell, the biggest mobile operator in Turkey, shared
its success in driving mobile digital signature to spur mobile banking in Turkey.
In December 2008, an inter-industry working group was set up as a step towards planning for an appropriate environment
for the mobile digital signature development, and to catalyse the transformation of the mobile initiatives. The working group
meets on a monthly basis to discuss various issues in establishing conditions that would nurture the growth and sustainability
of mobile commerce.
SKMM would continue to monitor and ensure compliance by the Certification Agencies in line with the Act. This includes
resolving relevant complaints with regards to the Certification Agencies.
Categories of Issuance of Digital Certificates
Type
2002
2003
2004
2005
2006
2007
2008
Individual
7,532 7,584 7,903 8,194 8,893 10,249 8,117
32,552 36,971 55,620 63,222 77,145 92,671 95,178
2,413 22,209 51,388 96,431 329,603 1,179,803 1,926,693
42,497 66,764 114,911 167,847 415,641 1,282,723
2,029,988
Corporate Government
Total
Fig. 4.34 Categories of Issuance of Digital Certificates
With the increased mobility of customers and their increased expectations for ubiquitous personalised services, mobile
commerce appears to be the next wave. The two factors of authentication and out-of-band characteristics will increase
security and reduce phishing. However, this can only be achieved if all parties such as banks, mobile operators and the
Government participate in the ecosystem.
There are three categories of digital certificates – corporate, individual and Government categories. Each category is seen
to be steadily growing based on the number of digital certificates issued as tabled below:
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COMPETENCE DEVELOPMENT
Number of Certificates (thousands)
Digital Certificates by Type (2002 – 2008)
1,926.7
2,000
1,800
i) New and developing communications and multimedia (including capabilities by existing experts to constantly build their
knowledge base as the industry and related cross industry elements evolve in a converging environment);
ii) Media; and
iii) Online services.
1,600
1,400
1,179.8
1,200
1,000
800
600
329.6
400
200
7.5 32.6 2.4
7.6 37.0 22.2
7.9 55.6 51.4
96.4
8.2 63.2
8.9
77.2
10.3
92.7
8.1
95.2
0
2002
2003
2004
2005
Individual
2006
Corporate
2007
Competence development is one of the MyICMS 886 planning strategies for the future. Skills and expertise that are much
sought after are in the areas of:
2008
Government
Amongst the activities towards this end are the Spectrum Research Collaboration Programme (SRCP) and New Media
Research Grant Programme with aim to bring together experts from academia, the industry and the public to learn and
build knowledge in key areas. In line with the objective, a number of centres of excellence has been set up, such as the ICT
Centre of Excellence (CoE), the IPV6 CoE, and the Rural Community Asia Pacific-UUM CoE, which are being highlighted in
this report.
SPECTRUM RESEARCH COLLABORATION
Spectrum is a scarce resource and becoming more so because of the rapid advancement in wireless communications in
recent years. Efficient spectrum management is crucial to ensure that there is ample supply to meet demand. Realising this,
SKMM together with designated Institutions of Higher Learning (IHL), collaborates in research on spectrum management
under the SRCP.
Fig. 4.35 Digital Certificates by Type (2002 – 2008)
Analysis of Digital Signature Usage
The digital certificates recorded a growth of 209% in 2007 from 2006. In 2008, the number of digital certificates issued
overall increased by 58%, mainly due to the doubling of electronic submission of Inland Revenue Board (IRB) forms.
In 2008, the number of certificates issued to corporate users was 95,178 which increased by 2.7% (2007: 92,671);
individuals 8,117 which decreased by 20.8% (2007: 10,249), and Government 1,926,693 which increased up to 63%
(2007: 1,179,803 million).
Digital Certificate Growth by Percentage (%)
Overview of Spectrum Management
Marketing
Plan
Conversion
Plan
Spectrum
Plan
Policy &
Regulations
International & Regional Coordination
Spectrum
Monitoring &
Inspection
Spectrum Quality Control
Database
250
Percentage (%)
Accounting
Spectrum
Engineering,
Standards &
Certification
200
150
Invoicing & Receipts
100
Spectrum
Assignment
0
2003
2004
2005
2006
2007
Apparatus
Assignment
2008
Spectrum Users
Fig. 4.36 Digital Certificate Growth by Percentage (%)
Source: SKMM
Fig. 4.37 Overview of Spectrum Management
Class/
Exempt
50
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The purpose of SRCP is to improve the administrative, regulatory and technical expertise of frequency management, by
promoting and funding research on spectrum related matters in collaboration with Institutions of Higher Learning (IHL) and
the industry. SRCP research studies or findings are shared with interested parties through a web collaboration portal, www.
spectrumresearch.com.my. It started operations in end-2007 and was officially launched on 12 April 2008. The portal
serves to disseminate knowledge and increases avenue for networking.
www.spectrumresearch.com.my
Source: SKMM
Fig. 4.38 www.spectrumresearch.com.my
Spectrum Research Collaboration Programme (SRCP)
The research programme started in September 2006, when SKMM established the Research Collaboration Steering Committee
(RCSC). The RCSC is responsible for the strategic direction, policy aspects, determination of priorities, recommendations of
collaboration projects to SKMM, and to approve the annual operational plans of the SRCP.
The initiative aims to:
i) develop human capacity;
ii) support and promote research in areas of spectrum management and related technologies;
iii) encourage collaboration among universities, research institutions and the players in communications and multimedia
industry;
iv) establish Malaysia as a desirable regional hub for spectrum research; and
v) facilitate the development of Malaysia as an ICT centre of excellence.
SRCP Objectives
Committees Providing Guidance in the Collaborative Process
1. Research Collaboration Steering Committee (RCSC)
Chaired by the Chairman of SKMM, members of RCSC include representatives from SKMM, KTAK, the
communications and multimedia industry, Government agencies, various stakeholders and Deputy ViceChancellors of Universities (research).
Role of RCSC:
• To ensure integrity, transparency and independence of SRCP
• Establishment and maintenance of world-class standards and reputation, appropriate networking of
available resources
• To be responsible for strategic direction, policy aspects, determination of priorities
• To recommend collaboration projects to SKMM
• To approve of annual SRCP operational plan, including modifying SRCP mandate as necessary
2. Research Collaboration Panel (RCP)
Supporting the RCSC, members of RCP are from IHL and the industry, who are elected by the RCSC.
The RCP advises, manages and monitors the research programmes.
RCP responsibilities include:
• Identification of partnership programmes
• Identification of appropriate existing resources available within the programme perimeter (including subject
matter experts)
• Development of programmes in collaboration with IHL committed to the implementation of selected
programmes
• Identification of research topics and evaluation of research proposals
• Promotion of the collaboration programme to ensure its goals are achieved
• Management and administration of the collaboration programme
• Coordination to optimise the use of resources within the partnership
• Analyses and advises the RCSC and SKMM on research projects and their status
3. Research Collaboration Secretariat
The Secretariat (also known as SRCP Secretariat) supports both RCSC and RCP in their functions.
The Secretariat further ensures the maintenance and updating of the web portal for the IHL Collaboration
Programme (http://www.spectrumresearch.com.my).
Source: SKMM
Fig. 4.40 Committees Providing Guidance in the Collaborative Process
• To develop SKMM knowledge resources; and to improve the capability of those dealing with spectrum
management
Collaboration of the Parties in the SRCP
• To provide a platform for collaboration, sharing and exchange of knowledge, expertise as well as enhances
capabilities in improving the spectrum management in Malaysia
The highest level of decision-making is assigned to the RCSC, with final approval of research projects resting with SKMM.
The creation of the research projects and the management setup ensures the governance and the collaboration of the
entire SRCP.
Source: SKMM
Fig. 4.39 SRCP Objectives
The SRCP follows a project-like organisational structure, which ensures the necessary governance under the collaboration
framework. In terms of project management, SKMM leads this project and plays an important role in fostering collaboration
to achieve the research goals. There are three committees within the SRCP structure, providing guidance in the collaborative
process.
Collaboration among IHLs and the industry in the research areas is based on Web-based networking. IHLs and industry
participants can form Research Collaboration Clusters which may collaborate not only with each other, but also with the SRCP.
The SRCP establishes collaborative and exchange relationships with other centres, with similar or related initiatives, locally
and within the Southeast Asian region and overseas. In this respect, it is of particular importance to make use of the
collaboration possibilities within the Asia-Pacific Telecommunications framework. The figure shows the functional relations
between the parties in the collaboration programme.
• To serve as a focal point of information, knowledge development and R&D activities related to spectrum
management
(Continued)
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Research Collaboration Programme Management
SKMM Involvement in the SRCP
SKMM involvement in the SRCP is as follows:
SKMM
IHL
Collaborative
6
Feedback
5
Quarterly
Report
RCSC
Report
RCP
INDUSTRY
1 Monitors
2 Quarterly Report
Feedback
SKMM also leverages on this programme to bring the experts from academia and the industry together in order to develop
knowledge and local experts through research in the field of spectrum management.
4 Advises
SECRETARIAT
Spectrum Research Priority Areas
3 Refer
1. The Secretariat monitors the progress of research projects, by evaluating quarterly reports, conducting technical
visits to IHL together with RCP and meeting with the research teams, if necessary.
2. Research teams are required to submit physical and financial progress reports every quarter.
3. The Secretariat compiles quarterly reports and refers to RCP, as well as any outstanding matters pertaining to
the research for advice.
4. RCP advises the Secretariat on technical issues regarding the research, and reports research progress to RCSC
during the Steering Committee meetings.
5. The Secretariat prepares working papers and reports to SKMM management on the research projects’ progress,
including advice and recommendations from RCP.
6. SKMM management acknowledges the report and provides feedback to the Secretariat on any outstanding
matters, with proposed actions to be implemented, or directions to be conveyed to the specific research team.
Fig. 4.41 Research Collaboration Programme Management
• SKMM allocates an annual fund for selected R&D projects, and the current allocation level is RM1 million per annum. Final
approval for all R&D proposals rests with SKMM. The allocated amount may differ yearly, depending on the budget.
• SKMM Chairman is the Research Collaboration Steering Committee Chairman.
• SKMM supports the SRCP, in terms of lecture series, conferences and other events.
• Emerging Wireless Technologies
Fast development of wireless broadband communication results in greater demand for radio spectrum
and the development of new technologies to cope with increasing demand for broadband services.
Emerging technologies include Cognitive Radio, Software-Defined Radio (SDR), High-Altitude Platforms (HAPS)
and Ultra Wideband (UWB).
• Spectrum Management
In order to efficiently fulfill the increasing spectrum demand, spectrum management should put greater emphasis
on the consideration of new emerging spectrum-efficient technologies, and economic aspects, such as
spectrum cost. Studies on spectrum management will lead to policy and regulatory development. For example,
study on spectrum cost versus network cost, and issues on interference management techniques may lead to
improvements in spectrum management.
• Spectrum and Us
Increasing demand for mobility means more spectrum will be used in our daily life. There is a need to study on
how and to what extent this intensive use of spectrum will change and affect our way of life. This is an exciting
theme for sociologists, political scientists and economists. The main task of the frequency managers is to
provide as much spectrum as they can to fulfill the increasing demand. Increasing electromagnetic radiation
and exposure is a concern, and studies in this area should be considered, including the investigation carried
out by the World Health Organisation (WHO).
Source: SKMM
Fig. 4.42 Spectrum Research Priority Areas
Other Benefits of Collaboration through SRCP
• Capacity building and knowledge growth for those dealing with spectrum management
• Funding such research themes in line with needs of the industry
• Promoting and organising seminars and workshops to a wider audience in layman terms to help acquaint the
public on aspects of spectrum management
• SRCP increases the weight of Malaysian spectrum management in the regional and international arena
• The spectrum research objectives are in line with promoting and achieving the Ninth Malaysia Plan goals, and MyICMS 886 national development strategies
Source: SKMM
Fig. 4.43 Other Benefits of Collaboration through SRCP
• Platform for sharing knowledge and exchange of expertise locally, regionally and internationally
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Details on the selection of research projects and the research collaboration tender process, including SKMM monitoring of
research projects, are available at www.spectrumresearch.com.my.
Research Projects 2007
The Request for Proposal (RFP) issued in 2007 saw 22 submissions of which nine different subjects were chosen in five
different themes. The table below shows research activities currently being carried out:
Research Projects 2008
In July 2008, the SRCP Secretariat announced the themes for the second round of research collaboration. A total of 31
submissions were received, a significant increase from the first round held in 2007. This is a good indication that the SRCP
is gaining popularity among the local research community. Out of the 31 submissions, six research proposals were selected
to receive grant awards.
Research Collaboration in 2008
Priority University Research Subjects in Collaboration
No. Research Subjects
Universities
Collaborative Partners
1
Impact on the society
Duration
(months)
UTM
University of Sydney, IIUM, UniKL
21
UKM
UUM
24
2
Radiation hazard
Uniten
UTM
15
3
Spectrum cost vs network cost
UNiM
First Principle Sdn Bhd
12
4
Cognitive radio
UTM
Uniten, IIUM
23
5
Frequency adaptive HF systems
UTM
UMP, MRCS, RF Communication Sdn Bhd
30
6
Frequency use above 25GHz
UPM
UTM, USM, IIUM, CRC (Canada)
23
MMU
MUST
26
7
Spectrum needs for IMT-Advance
UTM
UKM, Maxis
24
8
Coexistence in extended C-band
MMU
MIMOS
22
9
Synergising 2G, 3G and WiMAX
UM
DiGi
24
Partnerships among academic institutions are best suited when there are synergies, no overlapping areas and no conflict
of interest in the research findings. On the other hand, academic institution partnership with an industry player, like the one
conducted on spectrum needs of emerging wireless technology by UTM, UKM and Maxis, and on synergising 2G, 3G and
WiMAX by UM and DiGi provides implementation scenarios to academic assumptions.
Research Title
Duration (months)
1
UTM, Maxis
Leader: Prof Dr Tharek Abd Rahman
Sharing Studies between the Mobile Service
and Other Services in the 470-960 MHz
Frequency Band
18
2
UTM, UKM, USM
Leader: Dr Muhammad Ramlee Kamarudin
The Regulatory Measures to Enable Introduction of Software-Defined Radio and
Cognitive Radio Systems
20
3
UTM, UiTM
Leader: Prof Dr Tharek Abd Rahman
The Possibilities of High Altitude Platform Station Gateway Links Deployment in the
5850-7075 MHz in Malaysia 18
4
UPM, UTM, USM, IIUM
Leader: Dr Raja Syamsul Azmir Raja Abdullah
The Effect of Emission from Short Range Devices on Radiocommunication Services 18
5
6
UKM
Leader: Dr Rozilawati Razali
Collaborative Spectrum Management
System
12
UUM, MMU
Leader: Assoc Prof Dr Engku Muhamad Nazri Engku Abu Bakar
A Strategic Model in Spectrum Demand
Allocation and Spectrum Pricing
12
Source: SKMM
Fig. 4.45 Research Collaboration in 2008
Lecture Series
Other activities in the Collaboration Programme include lecture series with local and foreign speakers from the industry
and universities, and participants from the industry, the Government and universities. (Lecture Series topics are in
Appendix Ten)
UTM -Universiti Teknologi Malaysia
UKM -Universiti Kebangsaan Malaysia
Uniten -Universiti Tenaga Nasional
UNiM -University of Nottingham in Malaysia
UPM -Universiti Putra Malaysia
MMU -Multimedia University
UM -University of Malaya
IIUM -International Islamic University of Malaysia
UniKL -Universiti Kuala Lumpur
UUM -Universiti Utara Malaysia
USM -Universiti Sains Malaysia
MIMOS- Malaysian Institute of Microelectronic Systems
UMP -University Malaysia Pahang
MRCS -Malaysian Red Crescent Society
CRC -Communications Research Centre Canada
MUST -Malaysia University of Science and Technology
Source: SKMM
Fig. 4.44 Priority University Research Subjects in Collaboration
No Lead IHL and Partner(s)
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NEW MEDIA RESEARCH COLLABORATION
As a stakeholder, NAv6 needs to address the following:
Digitalisation and ongoing convergence of technology and applications have spurred the decline in the media distribution
cost and the rise of user generated content in social networking and content sharing at the consumer level, including the way
information is organised and stored. Although traditional broadcasting services continue to flourish in terms of advertising
returns, they are finding themselves in competition with other forms of media, such as the Internet.
1. To act as technical advisor to all stakeholders.
The New Media Research Collaboration was set up by SKMM in order to be equipped with the latest research in new media
in order to ensure appropriate policies for growth of this sector and to encourage research in new media in Institutions of
Higher Learning (IHL). This is also in line with the National Policy Objectives under the CMA 1998. The Content Research
Collaboration seeks:
• To establish SKMM as a focal point for information, knowledge, research and development in relation to new media policy
and regulation;
• To develop knowledge resources relating to the use of new media outlets by Malaysians, and
• To provide a platform for collaboration, sharing and exchange of knowledge and expertise in this area.
A call for papers was made in August 2008 and 12 research proposals were received from eight IHLs in areas such as effect
of blogs and blogging, social uses of new media, and the impact of regulatory frameworks. Research grants have been
awarded to fund four of the proposals.
2. To coordinate all IPv6 R&D nationwide so that pertinent issues are addressed and no overlapping of R&D resulting in
inefficient use of fund.
3. To provide IPv6 training and ‘train the trainers’ in order for knowledge and expertise to be proliferated.
4. To organise conferences, research meetings and workshops for Malaysian researchers, facilitating the sharing and
dissemination of knowledge.
5. To prepare detailed plans, strategies and guidelines as a result of this Roadmap to enable implementation at all levels.
6. To work with Ministry of Science, Technology & Innovation (MOSTI) with respect to R&D funding, and Ministry of Higher
Education (MOHE) with respect to human resource requirements.
7. To assist Malaysian Administrative Modernisation and Management Planning Unit (MAMPU) by providing technical
guidelines appropriate for Government agencies for the transition to IPv6.
8. To assist KTAK in the nation’s IPv6 rollout.
9. To assist Government agencies and private organisations in migrating to IPv6.
ICT CENTRE OF EXCELLENCE
IPv6 Centre of Excellence – NAv6
National Advanced IPv6 (NAv6) was established by KTAK, as recommended by the National IPv6 Council, as an IPv6 resource
centre manned by network experts. Its principal functions, requirements to address, achievements and standardisation
activities are listed in the following tables:
NAv6 Achievements to Date
1. Development of the National IPv6 Roadmap for KTAK
2. Conducted the IPv6 audit on ISP for SKMM
3. Assisted in the IPv6 pilot migration for KTAK and MAMPU
4. Conducted seminars at national level on IPv6
NAv6 Principal Functions
1. Conducting core R&D and middleware development
2. Providing and planning IPv6 training and human resource
5. Developed and started a certification programme for IPv6
Source: NAv6
Fig. 4.47 NAv6 Achievements to Date
3. Monitoring the migration of the nation as a whole and auditing stakeholders as required
4. Promoting and increasing awareness about IPv6
Source: KTAK
Fig. 4.46 NAv6 Principal Functions
IPv6 Standardisation Activities
1. IPv6 Standardisation activities were undertaken by the Malaysian Technical Standards Forum Bhd (MTSFB)
IPv6 WG, while SIRIM Bhd managed the Technical Committee (TC) on “IT Interconnection, Communications,
System Information” (TC/G/12).
3. The draft was released for Public Comment (PC) process from 1 September to 31 October 2008. Currently,
the TC is deliberating on the comments received before finalising the draft.
Source: NAv6
Fig. 4.48 IPv6 Standardisation Activities
2. MTSFB IPv6 WG submitted a draft on “Internet service provider (ISP) and large-scale enterprise IPv6 fixed
network implementation and compliance testing - Guidelines for the development of Malaysian Standard”.
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RURAL COMMUNITY ASIA-PACIFIC – UNIVERSITI UTARA MALAYSIA
CENTRE OF EXCELLENCE (UUM CoE)
In 2006, the International Telecommunication Union (ITU) appointed Malaysia to host its Asia-Pacific Centre of Excellence
(CoE) for rural ICT development at Universiti Utara Malaysia (UUM). Officially established a year later, the Malaysian CoE
conducted courses on rural technologies, applications, policy and regulation. ITU’s CoE programme is a flagship programme
to build regional mechanism that strengthens and builds capacity, develops human resource, and eradicates poverty.
The formulation of the CoE arose as an extension of the underlying Global Telecommunication University / Global
Telecommunication Training Institute (GTU / GT11) that includes the use of existing resources in the public, private or
semi-public institutions, and concerned parties from the telecommunication and ICT sector, for the purpose of assisting
developing countries.
In November 2008, ITU-UUM ASP CoE organised training on ICT for Disaster Management and Universal Access, and Service
and Rural Broadband in December. Both events attracted delegations from all over Asia.
(Continued)
(i) Development of Sensor Technology Knowledge Repository System
Objectives and Targets
• To develop a knowledge-based system (k-system) as a repository for knowledge, content management system, and
a collaborative space for building a virtual community environment related to sensor technology and the Wireless
Sensor Network (WSN);
• To gather wireless sensor information and various media for deposition into the repository; and
• To create virtual wireless sensor community using repository as a medium of communication.
Activities
• Collecting, storing and disseminating information such as research finding, reference materials, active local and
international experts and key players including industry, in the area of wireless sensor technology;
• Developing software interfaces, core engines and network security implementation; and
• Implementation of network security (on-going process).
PRODUCT DESIGN AND MANUFACTURING
Product Design and Manufacturing is one of the soft infrastructures identified in the MyICMS 886 strategy to support the
service areas where local original equipment manufacturing (OEMs) can contribute to the chain for speedy take-off of the
relevant services earmarked in the strategy. This will position Malaysia stronger in the high-tech ICT industries and provide
consumer access to a variety of locally produced communication devices at an affordable price.
Wireless Sensor Technology and The National Centre for Wireless Sensor Technology
The Wireless Sensor Technology is one of the key technologies that are currently being explored and studied under one of
the programmes spearheaded by the Ministry of Energy, Water and Communications (KTAK). The Wireless Sensor Network
(WSN) concept is to create a self-forming, self-healing wireless network of small, low-cost wireless sensors to enable rapid
and effective deployment of measuring and monitoring systems for all manner of applications. The information gathered
from the sensors is then relayed through a gateway into a computer, Local Area Network (LAN), or the Internet.
KTAK has established The National Centre for Wireless Sensor Technology at the University Putra Malaysia (UPM) under the
Ninth Malaysia Plan. The Centre is currently implementing a few projects under this programme. The projects are:
(i) Development of Sensor Technology Knowledge Repository System;
(ii) Development of Wireless Sensor System Architecture;
(iii) Wireless Sensor Applications Development;
(iv) KTAK RFID Asset Tracking System, and
(v) Promotion and Awareness (see Appendix Nine).
The objectives of the National Strategic Plan for WSN are:
indentify the state of readiness of wireless sensor technology;
steer the direction towards the implementation of wirelsss sensor technology and applications in Malaysia;
plan the strategic implementation of wirelsss sensor technology programmes and activities; and
determined the roles and responsibilities of Government agencies and main stake holders.
Wireless sensor technology contemplated by UPM includes different soil, light, humidity and temperature sensors for
agriculture purposes as well as MEMs, vibration sensors, rain gauges, vibrating wire and surface extensometers for measuring
soil erosion and earthquakes whilst they include Bluetooth, Zigbee and RFID as part of other short-range communication
technologies.
Although many different industries were in various stages of deployment and implementation of WSN technologies, the Team
from CoE at UPM recommended to the National WSN Steering committee to prioritise the following sectors – agriculture,
structure and infrastructure monitoring and transports and logistics.
As a result of the recommendations from the Centre of Excellence for Sensor Technologies, the National Steering Committee
for WSN adopted an approved the National WSN Strategic Plan which prioritised the above three sectors.
Development of Knowledge
Repository Engine
Development of Knowledge
Interchange and Content
Management Module
Development of
Collaborative Workspace
Development of
Expert Referral Module
Jan – Mar
Apr – Jun
Jul – Sep
Oct – Dec
2008
Source: KTAK, UPM Centre of Excellence
Fig. 4.49 Development of Sensor Technology Knowledge Repository System: Implementation Status up to 2008
(All modules were completed in November 2008)
(i) To
(ii) To
(iii) To
(iv) To
Development of Sensor Technology Knowledge Repository System:
Implementation Status up to 2008 (All modules were completed in November 2008)
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(Continued)
Issues and Challenges
• To update data and content collection on wireless sensor from various related sources; and
• To deal with illegal system intrusion and virus attacks.
(Continued)
Development of Wireless Sensor System Architecture:
Implementation Status up to 2008
Development of
WSN testbeds
Repository Interface
Performance
evaluation of
current WSN
WSN System
Architecture
Framework
Jan
Jun
Sep
2008
Fig. 4.51 Development of Wireless Sensor System Architecture: Implementation Status up to 2008
Fig. 4.50 Repository Interface
•
•
•
(iii) Wireless Sensor Applications Development
Objectives
• To develop and deploy wireless sensor applications as a Proof of Concept (PoC); and
• To develop the generic applications engine, usable in several sectors for rapid deployment of Wireless Sensor
Network (WSN) applications.
(ii) Development of Wireless Sensor System Architecture
Objectives
• To design Wireless Sensor Network System Architecture, which includes hardware interface, network and middleware
up to the applications layer;
• To plan system architecture development programme;
• To identify key technology issues requiring potential international collaboration and evaluate the “Develop Some Buy
Some” strategy involving technology transfer programme; and
• To develop reusable modules for other short-range communication applications.
Hardware and test equipment availability;
Limited number of local know-how and skilled-personnel in WSN; and
Limited support and involvement from the industries.
Activities
• Development of generic applications engine usable in several end user applications in identified sectors;
• Development of reusable software modules for other emerging applications; and
• Deployment of wireless sensor applications as a PoC.
•
•
•
•
Set up Wireless Sensor Network (WSN) testbeds and current WSN platform evaluation;
Develop system architecture development plan;
Design a new system architecture, focusing on network and middleware layer modules; and
Develop in-house WSN modules.
Activities
INDUSTRY
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(Continued)
Implementation Status Up to 2008
• The development of the Applications Module is now at the final stage of producing a generic engine
• Availability and readiness of onsite infrastructure for system testing and commissioning; and
• Cost and availability of metal compliance RFID tags.
• Compatibility of hardware and software for various WSN platform; and
• Reliability of WSN platform during test and evaluation in real environment.
System Interface
Authentication
(iv) KTAK RFID Asset Tracking System
Objectives and Targets
•
•
Activities
•
•
•
RFID Polling
Pilot the use of RFID in an asset tracking application; and
Evaluate the use of Wireless Sensor Network for asset tracking application.
Evaluation of RFID solutions in Asset Tracking;
Design and development plan of KTAK RFID asset tracking system; and
Implementation, testing and commissioning of RFID asset tracking pilot at KTAK.
KTAK RFID Asset Tracking System: Implementation Status up to 2008
Hardware setup
Requirement Study
and Analysis
Design and Development
Hardware Setup
Software Development
and Installation
System Integration
In-house System Testing
Testing and Commissioning
Jan
Feb – Apr
May – Jul
Aug – Nov
Source: KTAK
Fig. 4.53 System Interface
Fig. 4.52 KTAK RFID Asset Tracking System: Implementation Status up to 2008
2008
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(Continued)
(Continued)
(v) Promotion and Awareness
DEVICE DEVELOPMENT
Apart from relevant content and services for consumers, affordable pricing is another key to fast and mass take-up of
communications and multimedia services in the local scene. This calls for some balance of home-grown devices among those
imported, yet with qualities aligned to international standards. Among some of the devices being developed and produced
locally are Set-Top Boxes (STB) for the digital TV switchover, and devices in the IP telephony and WiMAX categories, which
are for both local and international consumption.
A series of events was held across the country and internationally as part of the promotion and awareness campaign
for the Wireless Sensor Technology project (see list of the events in Appendix Nine). A sensor technology knowledge
repository system is also available.
Web Portal for Sensor Technology Knowledge
DIGITAL TERRESTRIAL TELEVISION (DTT) RECEIVER (SET-TOP BOX)
SKMM is actively pursuing the migration of the analogue television to digital, taking into consideration the analogue shut-off
date of 2015. Policies, spectrum and standards were studied and facilitated to ensure that the migration would be smooth
sailing, and to the best interest of the public and the industry. The technical specifications for Free-to-Air (FTA) DTT Receiver
STB, registered on 13 August 2008, were among the outcome from these initiatives. SKMM will be promoting the standards
to local manufacturers in 2009, leading up to the commercial launch of DTT.
Current Set-Top Box Choices
Type
Functions
Remarks
Digital-to-
Analogue
Converter or
“Zapper Box”
Limited to converting digital broadcast
signals into analogue to enable reception
on current TV sets. Does not support
interactivity or value-added services.
Cheapest to produce and most
economical means for the consumer
to receive digital broadcast service.
Premium
Set-Top Box
Built-in interfaces compatibility to
Conditional Access modules and MHEG – 5
middleware enables access to all
value-added and interactive services.
More costly to produce but
necessary for viewers who want
to experience the full potential of
interactive digital TV services.
Also, provides a return path for interactivity.
Personal Video
Recorder (PVR)
Similar in functionality to the Premium
STB but with the additional features of being
able to record programmes and save them
in a built-in hard drive.
Most expensive to produce
but provides consumers with the
ability to watch what and when
they want it.
Source: “Digital Set-Top Boxes Standard for Malaysia”, MTSFB / RTM, Lecture Series 1/2008: SKMM, 21 February 2008
Fig. 4.55 Current Set-Top Box Choices
Fig. 4.54 Web Portal for Sensor Technology Knowledge
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(Continued)
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Requirements for Selected Functionalities
Functionality
Specifications
A CASE IN POINT – MALAYSIAN GROWN VOIP PHONES
G-Tek Gateway Phones
Information
Compression
MPEG-4
•
•
•
Latest compression
Up to twice the compression capability of MPEG-2
Already a requirement in Mandatory Standards for Digital
Terrestrial Television (Determination 1/2006)
Display Resolution
HDTV
•
•
•
More detailed screen display and suitable for large
screen television
To discrete from traditional analogue systems
Downward compatibility to Standard-Definition (SD)
Middleware
MHEG-5
New Generation of IP Communication Devices
GPI
GPII - P
GPII - G
GPIII
–
–
–
–
IP
IP
IP
IP
Telephony
Telephony
Telephony
Telephony
GPI
+
+
+
+
PBX
PBX
PBX
PBX
Core
Core
Core
Core
Built-In
Built-In + PSTN
Built-In + GSM
Built-In + PSTN + GSM
GPII – P
GPII – G
GPIII
• For interactivity application
• Competing standards, MHP by DVB
• No known significant royalty for broadcasters
Subscription Service DVB-CI • Enables STB to provide subscription services by using
capability Conditional Access Module (CAM)
• Avoids multiple STB per household
G-Tek Gateway Phone in SoHo, SMB Market Places
Source: SKMM
Fig. 4.56 Requirements for Selected Functionalities
SMART ANTENNA AT UNIVERSITI TEKNOLOGI MALAYSIA (UTM)
A wireless communications system with a well-designed antenna is key to overall system performance improvement, and it
contributes to substantial cost savings. Since 2007, the Wireless Communications Centre in Universiti Teknologi Malaysia
(UTM) has been working on a smart antenna project. Two types of smart antenna systems are being worked on, one is the
smart linear array antenna for application in mobile communications, and the other is a smart planner array antenna for
application in radar systems.
Smart Antenna Structure in Phase 1
Digital Linear Array Antenna
DSP Board
To the Receiver
Digital Planar Array Antenna
Circuits Interfaces
From the Transmitter
From the Transmitter
To the Receiver
From Control PC
From Control PC
Note: Digital Signal Processing (DSP) Board
Source: UTM
Fig. 4.57 Smart Antenna Structure in Phase 1
Circuits Interfaces
Antenna Elements
Potential Buyer
GPI
Service providers which provide:
1. VoIP and Trunk Service
2. DID Number Service
3. Internet Service with Fixed IP Address
GPII - P
4. Land Line Service
GPII - G
4. GSM Service
GPIII
4. Land Line Service
5. GSM Service
Planar Antenna Array
Tile Structure
Source: G Tek Electronics Sdn Bhd
Fig. 4.58 G-Tek Gateway Phones
DSP Board
Model
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(Continued)
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A CASE IN POINT – HOME GROWN HSDPA (MOBILE) AND WIMAX DEVICES
UNIVERSAL SERVICE PROVISION (USP)
Universal Service Provision Programme
Location of CEEDTec’s Facilities
The Universal Service Provision (USP) is a programme providing collective and individual access to basic telephony and
Internet services throughout Malaysia. As service providers understandably tend to focus on commercially income-generating
areas, a gap known as the digital divide is created between the “haves” in the urban areas, and the “have-nots” in the rural
areas. This needs to be addressed at the national level to avoid undesirable social ramifications.
The USP programme 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.” That is, a
designated service provider incurs no loss, or makes any profit when implementing this programme as the service provider
only claims for expenses incurred at cost, and SKMM reimburses them based on a detailed claims template available at
SKMM website.
USP targets are divided into underserved areas and underserved groups within the community. The classifications are
explained in the table below:
Classification of USP Target
1. Underserved Areas*
Wireless CPE Products
Single User
SoHo Access Point
Best-of-Both Worlds
In relation to:
Broadband Access Service Any area where penetration rate for broadband subscribers in Malaysia is below
the national broadband penetration rate, or where broadband access services are not
sufficiently available, as may be determined by SKMM.
Public Cellular Services
VM10 HSDPA USB Modem
VR20 HSDPA Wi-Fi Router
VD30 Docking Router
Milestones in Development
CEEDTec formed (Nov ‘05)
and began Operations
(Feb ‘06)
Signed JDM agreement
for HSDPA (Feb ‘07)
CEEDTec soft launched HSDPA
products to ODM’s (Oct ‘07)
US MNC awards
Mfg to CEEDTec
(Feb ‘08)
2H06
1H07
Source: CEEDTec Sdn Bhd
Fig. 4.59 A Case in Point – Home Grown HSDPA (Mobile) and WiMAX Devices
2. Underserved Group
within the Community
Definition
A group of people linked by similar characteristics from a socio-cultural or economic
perspective within a served area, which does not have collective and/or individual access.
*Additionally, SKMM takes into account the number of households in a locality, the community social economic status, the demand or waiting list, and existing installed capacities of
the network infrastructure for optimisation of network resources.
Source: SKMM
Fig. 4.60 Classification of USP Target
VigSys launched
Docking Router @
CommunicAsia
(Jun ‘08)
WiWi Gen
1.5 joint
demo with
MIMOS
(Dec ‘08)
VigSys did local launch of HSDPA
Products (Feb ‘08)
1H06
Public Switched Telephone An area where PSTN subscriber penetration rate is 20% below the national PSTN
Network (PSTN) services
penetration, or where PSTN services are not sufficiently available, as may be determined by SKMM.
VigSys HSDPA launched
at CEBIT (Mar ‘08)
Received MGS Grant
from MDeC (Sep ‘07)
First project with US
MNC (Feb ‘06)
Any area with a population density of 80 persons per square kilometre or less, or where
public cellular services are not sufficiently available, as may be determined by SKMM.
2H07
1H08
2H08
Granted MSC Status
(Jun ‘06)
WiMAX CPE product
development (Aug ‘08)
CEEDTec Technology formed to
focus on Manufacturing Operations
(Dec ‘07)
Definition
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The Universal Service Provision Fund (USPF)
The USPF was established under Section 204 CMA 1998. The USP Regulations stipulates that contributions from licencees
are based on the following three factors:
1. The list of designated services;
2. Weight factors; and
3. Six percent of weighted net revenue.
As per Regulation 27 of the Communications and Multimedia (Universal Service Provision) Regulation 2002, all licencees
(except for Content Application Service Provider (CASP)) that have weighted net revenue derived from the designated services
exceeds RM500,000 in a calendar year (minimum revenue threshold) shall contribute six percent of its weighted net revenue
to the USPF. In the Amended Regulations 2003, the minimum revenue threshold was increased to RM2 million, effective
1 January 2004.
Universal Service Provision Fund (USPF)
1. Pursuant to Part VIII, Section 204 of the CMA 1998, SKMM establishes, controls and manages the USPF
2. The sole purpose of USPF is to implement network facilities, network services, and applications services in
the underserved areas and communities
3. USPF is presently placed as Fixed Deposits at licensed financial institutions
a. Related project payments and claims (CAPEX / OPEX) are only applicable to Designated USP Services
Providers
4. USPF amounting to six percent of licencee weighted net revenue annually, comprising:
a. Contributions from Network Facilities Provider Individual / Class (NFP)
b. Contributions from Network Services Provider Individual / Class (NSP)
c. Contributions from Applications Services Provider Class (ASP)
5. Administrative processes of managing and administering USPF are specified under the Regulations as well
as the Standard Operating Process and Procedure (SOPP), inter alia:
a. R.27: Collection of Contribution from Licencees
b. R.12, R.20, R.20A: Disbursement of CAPEX and OPEX in the form of Advance Claims and Annual /
Quarterly Claims processing.
Source: CMA, USP Regulations, SKMM
Fig. 4.61 Universal Service Provision Fund (USPF)
Implementing the USP - Delivery of Universal Services under CMA 1998
Delivery of Universal Services: Four Basic Processes
1. Identify Universal Service Target
Pursuant to USP Regulations, SKMM issued Notification of Targets for Universal Service Provision
in 2001 (NTP/USP/1/01), 2002 (NTP/USP/2/02), 2004 (NTP/USP/1/04), and subsequently in 2008
(NT/USP/01/08).
2. Approve USP Plan
Once the target areas are identified, all eligible licencees are invited to submit USP draft plan(s) for SKMM
to evaluate. This is an open bidding exercise for the USP projects which SKMM designates to implement.
SKMM will then evaluate the USP draft plan(s) and recommend for approval.
3. Designate Universal Service Providers to Target Areas
Once the universal service plan(s) is approved, SKMM shall designate the successful bidders to implement
the USP projects in the Universal Service Target.
4. Implement and Monitor
This last stage occurs during the USP Project implementation and post-completion. SKMM will assess the
technical, operational, and performance of the USP projects to ensure their effective rollout. SKMM may also
perform audit exercise to verify and validate the level of compliance of USP projects rollout with respect to
the approved USP plan.
Source: USP Regulations, SKMM
Fig. 4.62 Delivery of Universal Services: Four Basic Processes
USP Project Management
SKMM is in the midst of establishing the USP project management Standard Operating Process and Procedure (SOPP),
aimed at monitoring the progress of each rollout in all USP districts to ensure projects are implemented and monitored in a
timely manner and compliant with the approved USP plans.
USP project management is an important initiative for SKMM in ensuring continuous assessment of all USP projects.
Currently, SKMM is preparing the conceptual approach in view of setting up a dedicated project management unit to realise
the following:
• Review the weaknesses of the current USP approach;
• Address the issue of implementing USP services in areas where they are actually needed. USP services should be
excluded from areas where there are already alternative services;
• Develop specific USP model for areas which are not economically viable due to their geographical remoteness, and
• Conduct thorough assessment of the service providers’ capacity and capability in implementing USP before they are
designated.
SKMM Role in Bridging the Digital Divide (BDD)
SKMM has prioritised the provision of collective universal service access (for basic telephony and Internet) over individual
access. The objective is to ensure that the target uneconomical areas are provided with communications services through
widespread community access to such services.
Throughout 2008, SKMM set its focus on developing broadband community access centres (or USP Broadband Community
projects) where promotion, awareness, marketing, and ICT enrichment training on ICT facilitated social service delivery to the
underserved communities. SKMM is of the opinion that once the community is fairly conversant with the use of broadband
facilities and services, the capacity needs at the centres as well as the need for individual access will increase. This in turn is
expected to catalyse national broadband take-up.
The whole mechanism of the USP project is best described through the understanding of the USP implementation process.
Thus, the delivery of the USP services follows four basic processes in order to complete all the necessary plans and
implementation. They are:
(Continued)
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USP Broadband Community Projects
Community Broadband Centre (CBC)
Among the initiatives towards this focus on the USP Broadband Community Project, are as follows:
The CBC was established by SKMM as part of its broadband rollout plan for 2006.Similar to the broadband library initiative,
the CBC is equipped with the latest IT hardware and broadband connectivity for faster access to the Internet. However, the
provision of facilities will be at greater capacity as the target users of CBC is bigger.
• Community Broadband Libraries (CBL); and
• Community Broadband Centre (CBC).
Community Broadband Libraries (CBL)
To facilitate communications access for selected communities, SKMM has expanded the rollout of Broadband Internet to
all libraries in the rural areas under the CBL project. Internet access in libraries will benefit the surrounding community and
facilitate the growth of a society knowledgeable in the use of field of communications, particularly information technology. This
is in line with plans and targets identified under the National Broadband Plan and the Strategic Framework in MyICMS 886.
These CBL will be equipped with the latest IT hardware and high-speed Internet connectivity to enable rural communities to
gain exposure to the latest technology in Internet communications. In addition, other IT-related activities, such as training
and promotional activities, will be conducted at the libraries to encourage locals to fully utilise the facilities so as to improve
their IT adoption, and ultimately, uplift their economic and social status.
SKMM will appoint a supervisor, on a contract basis, for each library. They will be stationed at the library and responsible
for managing and maintaining its equipment, as well as providing training and promoting the facilities to the surrounding
community.
The selection of libraries for this project was based on information provided by the National Library of Malaysia and the State
Library Organisations. To avoid duplication, SKMM works closely with KTAK as similar projects have been carried out by KTAK
under the Government funded USP programme.
In 2008, SKMM approved a total of 61 new CBL projects nationwide at the cost of RM29.2 million. (The CBL projects are
listed in Appendix Seven).
The CBC is managed by two supervisors, on a contract
basis, who are responsible for conducting various IT-related
activities such as training, seminars and workshops for the
community. An entrepreneurship concept is adopted for
sustainability in operating the CBC. Therefore, the supervisors
are encouraged to conduct any IT-related side business in the
CBC for additional income.
For the CBC implementation to be successful, the State
Governments provide their full cooperation by allocating the
premises, which comprise common public locations, with
good density and active community, easily accessible and
within town or business area. In 2008, SKMM approved a total
of 73 new CBC projects nationwide at the cost of RM92.5
million. (The CBC projects are listed in Appendix Eight).
Source: SKMM
Fig. 4.64 Community Broadband Centre in Sg. Pinggan, Pontian, Johor
Technology Symposium on USP
In June 2008, SKMM organised a USP Technology Symposium for Underserved Communities in Seremban, Negeri Sembilan.
Minister of Energy, Water and Communications of Malaysia, YB Dato’ Shaziman Abu Mansor, delivered the Keynote Address
at the Plenary Opening Session, witnessed by more than 200 delegates from the communications and multimedia industry,
representatives from State Government and Government bodies, technology experts, and members of academia.
The two-day symposium aimed to identify the right technology-mix for the USP programme rollout. This is to ensure that the
universal services offered are relevant and beneficial to the underserved communities identified under the USP Programme.
Topics in the symposium covered a variety of wired and wireless communication technologies which could reach people in
rural, remote and underserved, as well as technology applications for e-community development.
Each technology was evaluated vis-à-vis five main aspects and deliberated under specific working groups, namely Technology
Characteristics for Underserved Community; Issues and Challenges in Implementing USP for Underserved Areas; Sustainable
Application Technologies of e-Community Development; Meeting USP Objectives Through Reliable, Accessible and Affordable
Last Mile Solutions and Future Model for Community Projects.
Source: SKMM
Fig. 4.63 Broadband Library in Desa Ijok, Selangor
All ensuing issues were extensively discussed and debated, including the best type of USP community model, whether it
should be a social entrepreneurship, e-Commerce or other more suitable models, to ensure its sustainability and continued
development.
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(Continued)
(Continued)
USP Technology Symposium for Underserved Communities at Klana Resort, Seremban
Time 3 Programme
In 2008, a new programme known as Time 3 was introduced under the direction of the Minister of Energy, Water and
Communications of Malaysia, YB Dato’ Shaziman Abu Mansor, to further expand cellular coverage nationwide. The
objective of the programme is to increase the national population’s cellular coverage to 97% by 2010.
The Time 3 programme targets rural areas and villages with population density of below 80 persons per square
kilometre. Key target areas include Felda, Felcra, plantations, orang asli settlements, new tourist spots, and significant
portions of federal highways.
The approach taken in the implementation of Time 3 consists of provisioning communications tower for the purpose of
Infrastructure Sharing (IS) and Domestic Roaming (DR) in providing cellular services. Hence, there is cost savings for
service providers as well as elimination of high local authority fee and the difficulty of acquiring sites, while ensuring
smooth completion of the project.
Source: SKMM
Fig. 4.65 Keynote address by the Minister of Energy, Water and Communications
of Malaysia, YB Dato’ Shaziman Abu Mansor
Source: SKMM
Fig. 4.66 Panelists at the USP Technology Symposium
The programme was announced by YB Dato’ Shaziman at the opening of the USP Technology Symposium in Seremban
on 12 June 2008.
Extent of Time 2 and Time 3 Programmes in Peninsula Malaysia
Source: SKMM
Fig. 4.67 Participants at the USP Technology Symposium
Source: SKMM
Fig. 4.68 Discussion during one of the breakout sessions
NATIONWIDE MOBILE COVERAGE
In national concerted efforts to expand cellular coverage service across the nation in 2004, SKMM formulated and executed,
together with service providers, Government agencies and State Governments, programmes known as Time 1 and Time
2. With the completion of these programmes, national population coverage increased to 92% – up 10% from 82% in 2004.
T
R
A
IT
S
O
F
M
E
L
A
K
A
On the other hand, Time 2 was executed nationwide in areas with population density of above 80 persons per square
kilometres. A total of 1,268 communications towers were constructed under the programme that ended in December 2007.
LEGEND
In 2007, an additional Time 2 Expansion programme was introduced to address the quality of service issues within the Time
1 and 2 areas. This programme, requiring 330 towers to be built nationwide, was fully completed in December 2008.
T2 COVERAGE
T3 COVERAGE
Fig. 4.69 Extent of Time 2 and Time 3 Programmes in Peninsula Malaysia
Time 1 focused on areas within Klang Valley, covering Kuala Lumpur, Putrajaya and Cyberjaya as well as the protocol routes
connecting the Parliament and the KLIA. Under this programme, 210 communications towers and rooftop structures were
completed in December 2005.
S
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(Continued)
(Continued)
Extent of Time 2 and Time 3 Programmes in Sabah and Sarawak
Time 3 Funding
A funding mechanism for the Time 3 programme is through the concept of Private-Public Partnership whereby the project
cost is shared between SKMM and the service providers. Initial funding of RM500 million shall be disbursed from the USP
Fund for Phase 1 of Time 3.
SULU SEA
The disbursement of the USP fund to successful service providers shall be made through open bidding exercise, as stipulated
under Regulation 5(1) of the USP Regulations 2002. The Request For Proposal (RFP) for this exercise will be issued to eligible
licensees in the first quarter of 2009.
SOUTH CHINA SEA
Time 3 Progress
The construction of towers funded by celcos throughout the country started in July 2008, with 100 towers to be fully
completed by end-2008. The table below summarises the status of the 250 towers, commercially funded by the service
providers.
CELEBES
SEA
Number of Cellular Towers under Time 3 Initiative
LEGEND
T2 COVERAGE
T3 COVERAGE
Fig. 4.70 Extent of Time 2 and Time 3 Programmes in Sabah and Sarawak
Total
Completed
as of 2008
Total
Number
of Towers
Kedah
1
2
–
3
7
Perak
1
8
–
9
14
Selangor
–
–
–
–
1
N. Sembilan
1
–
–
1
12
Johor
7
2
–
9
15
Pahang
6
4
9
19
36
Time 3 Implementation Plan
Time 3 Sites by State
The Time 3 programme involves building a total of 1,250
towers in two phases. Under Phase 1, 600 towers will be
erected beginning July 2008 to December 2009. Out of this
number, 250 towers are funded by the service providers,
while the remaining 350 are funded by the USP Fund.
Population coverage is expected to increase to 95% once
the phase is completed.
No
State
No. of Tower Sites
1
Sabah
278
Terengganu
4
2
2
8
21
Kelantan
1
–
6
7
24
13
8
18
39
66
9
–
10
19
54
43
26
45
114
250
Under Phase 2, 650 towers will be built from October 2009
to December 2010. Completion of Phase 2 will see the
national population coverage increased by another 3% to
achieve the overall Time 3 target of 97%. The following are
the distribution of the said tower sites by state.
2
Sarawak
257
3
Pahang
243
4
Kelantan
105
5
Terengganu
98
6
Perak
76
7
Johor
74
8
Kedah
47
9
Negeri Sembilan
45
10
Selangor
27
Total
Sabah
Sarawak
Total
Fig. 4.72 Number of Cellular Towers under Time 3 Initiative
1,250
Note: Melaka, Perlis, Pulau Pinang, W.P. Labuan and Kuala Lumpur are not included
under Time 3 as the population coverage has reached 99%.
Source: SKMM
Fig. 4.71 Time 3 Sites by State
State
Celcom DiGi
Maxis
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CHAPTER 5
Malaysia is poised to further develop its nascent content industry; facilitating locally produced content and infrastructure
development. The trend for this development shows it to be more IP-based, and channelled over emerging fibre network.
Business opportunities abound not only in new areas, but also through rejuvenation of existing services for better speed and
cost savings. The Malaysian scenario for many market segments has the online gamers market profile (see graph below)
that shows emergent market staus that is poised to take off. The potential for cross-border market development is also high
among the ASEAN countries.
Asia Pacific Online Gamers’ Market Size in 2007
160
Year-on-Year Growth (%)
140
India
120
Singapore
People’s Republic of China
100
Philippines
80
Thailand
60
Malaysia
Vietnam
Korea
40
Taiwan
Indonesia
20
Hong Kong
0
0
10
20
30
40
50
60
70
Online Gamers Penetration (%)
Source: IDC 2008
Fig. 5.1 Asia Pacific Online Gamers’ Market Size in 2007
CHAPTER 5
As outlined in the MyICMS 886 strategy, the highlighted growth areas are networked content development, foreign ventures
by Malaysian communications and multimedia companies, in addition to the impetus behind aligning national developments
with international trends, such as network security development and going green.
Networked Content Development
123
129
Alignment with International Developments
132
Network Security Development
132
Going Green: Green Energy and Computing 132
NETWORKED CONTENT DEVELOPMENT
Due to the rapid deployment of communications networks, networked content has become an increasingly important and
pervasive factor in helping to shape the economic and social developments of the country. High-speed Internet access,
the converging of previously distinct networks, and innovation in new devices and applications will drive new ways of
creating, collecting, processing, storing, distributing, and accessing networked content.
The Government recognises the growing role of content producers as one of the key drivers in promoting the take-up of
broadband services. Accordingly, a high-level Integrated Content Task Force (ICON) was established to further chart the
course towards promoting content development. Among the key objectives of ICON are to undertake extensive analysis
and initiate strategies for content development. ICON is currently chaired by the Chief Secretary to the Government.
Its committee members comprise Ministries and Government agencies that have stakes in content development as well as
the industry players.
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(Continued)
Market Size of Networked Content
Networked Content Development Grant
The networked content industry in Malaysia is mainly driven by broadcasters and telecommunications companies (telcos).
The estimated market size for the broadcasting sector in 2007 was RM3.12 billion, while the mobile content services sector
was worth RM3.22 billion. Excluding RTM’s numbers, the total market size of the networked content industry was estimated
at RM6.34 billion in 2007.
The Networked Content Development Grant (NCDG), launched in July 2007 with an initial allocation of RM20 million, is a fund
established by SKMM to facilitate and encourage Malaysian involvement in the creation, production and distribution of highly
creative and marketable networked content. This is in tandem with the National Policy Objectives of the Communications and
Multimedia Act (CMA) 1998, the Government strategic initiatives in the Ninth Malaysia Plan, and the MyICMS 886 strategy.
In 2008, the networked content industry was estimated at RM8.86 billion, with market size for the broadcasting sector at
RM3.6 billion, and the mobile content services increased to RM5.26 billion.
The grant covers up to 70% of the total cost of approved projects. Emphasis is on the creation of content, which can
be delivered on multiple platforms – a prerequisite for realising the “triple play” service whereby Internet access, TV and
telephony converge onto a single high-speed connection.
Estimated Total Market Size of Networked Content Industry*
Since the inception of NCDG in July 2007 through to end-2008, SKMM received a total of 32 applications. Out of these, six
have been approved, marking an approval rate of 19%. The total amount of pledged funding for the six projects is RM4.03
million and so far, RM1.03 million has been disbursed based on the achievements of the agreed milestones.
Market Size
2007
RM (billion)
2008
RM (billion)
% Change
Broadcasting sector
3.12
3.60
15.4
Mobile content services 3.22
5.26
63.4
Total Market Size
6.34
8.86
39.7
*Excluding RTM
Fig. 5.2 Estimated Total Market Size of Networked Content Industry
The NCDG objective is to encourage Malaysian involvement in the creation of networked content marketable to domestic
and international markets. This has become a reality with the significant achievements, numerous awards and recognition
received by the NCDG grantees in 2008. Among the key achievements and recognition received by NCDG grantees are as
follows:
NCDG Grantee – Awards and Recognition
NCDG Grantee
The broadcast industry in Malaysia has also experienced robust growth. The two biggest media companies – ASTRO and
Media Prima — have substantial investments to accelerate local content production. ASTRO, the subscription-based, direct
satellite broadcast service in Malaysia, allocated an estimated amount of RM229 million for local content production in 2008,
compared to RM141 million in 2007. As for Media Prima, which owns a number of television networks, newspapers and
radio stations, the company established a subsidiary, Primeworks Sdn Bhd, with the aim to produce more local content for
all its TV channels. In 2007, Media Prima spent RM196 million for local content and RM250 million in 2008.
Inspidea Sdn Bhd • The animated TV series, Mustang Mama Diehard Sports Fan Season 2 (MMDSF2),
has penetrated international market, namely Japan, Singapore, Russia, Middle
East, Canada and Italy
• The characters of Mustang Mama were licensed to Yahoo! and featured in the
Philippines, Singapore and Vietnam in August 2008
Indicative Investment to Produce Local Content
Broadcasting Companies
2007
RM (billion)
2008
RM (billion)
% Change
ASTRO
141
229
62
Media Prima
196
250
28
Total
337
479
42
The networked content industry market size growth of 39.7% in 2008 could be attributed to a number of factors. One was
the additional TV channels offered by ASTRO to reach different market segments through specialised programming. Another
factor could be the increasing demand for real-time news and event reporting, such as the eventful 12th Malaysian General
Elections in 2008, and the increase in the number of mobile subscribers of close to three million in the year. The introduction
of HSDPA service added close to 386,200 new mobile subscribers last year, and the commercial rollout of U Mobile also
brought significant increase.
• MMDSF2 was nominated for the “Best TV Animation for All Ages” category at
the Cartoon On The Bay 2008, held in Italy
Firdaus Maju Sdn Bhd
• The TV documentary, Alexander Bukan Zulkarnain, was featured in
“Mingguan Metro” in November 2008
• Strategic collaboration with Celcom to offer video content via IVVR 3G and
Streaming Server
• Firdaus Maju CEO, Zainal Rashid Ahmad, has been awarded
“Anugerah Kategori Pengarah Dokumentari Terbaik PPFM 2008 (Best Director,
Documentaries, PPFM 2008)”
Murasu Systems Sdn Bhd
• The first Mobile Dhivehi News Reader was launched with Wataniya in Maldives
in May 2008 (Dhivehi is the local language of Maldives)
Note: PPFM – Persatuan Pekerja Filem Malaysia
Fig. 5.4 NCDG Grantee – Awards and Recognition
• An agreement with Maxis was signed to offer JawiSMS as the Maxis brand service
Fig. 5.3 Indicative Investment to Produce Local Content
Awards and Recognition
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Two committees, namely the NCDG Business and Technical Committee and the NCDG Management Committee, evaluate,
recommend and approved all applications for the grant in a transparent manner. Apart from scrutinising proposal papers,
SKMM’s evaluation process also involves site visits, pitching by the applicants, and discussions among committee members,
who are field experts from various organisations in the content industry. The evaluation process ensures the grant is awarded
only to potential, creative and capable content developers with unique value proposition, which include demonstrating export
or business potential.
NCDG Committee Evaluating Applications
NCDG Business and Technical Committee (NBTC)
The NBTC is a committee chaired by SKMM. The committee members are content experts nominated by the
Multimedia Development Corporation Sdn Bhd (MDeC), JARING, TMI, Maxis, DiGi, U Mobile, Time dotCom, Media
Prima and ASTRO. The main role of NBTC is to evaluate and make recommendations on all applications to the
NCDG Management Committee.
NCDG Management Committee (NMC)
The NMC is a Commission Committee chaired by a SKMM Commission Member. The current Chairman is the
Secretary General of the Minsitry of Energy, Water and Communications. Other members include two highranking Ministry officials and two senior directors from SKMM, who are directly involved in content development.
Throghout 2008, the NMC was chaired by Ministry and content regulator main role of NMC is to make the final
decision for approval of the NCDG grants.
Source: SKMM
Fig. 5.5 NCDG Committee Evaluating Applications
(Continued)
Potential Deals from MIPTV 2008
Samayolu Broadcasting Group (Turkey), Arab Information Centre (Kuwait), Filmexport Home Video (Czech
Republic), Phoenix Pictures International (Lebanon), Blink Studios (UAE), Anatolia (Turkey), NTN TV Channel
(Ukraine), and others have shown their keen interest in buying TV and DVD distribution rights of Saladin,
the co-production animation venture between MDeC and Al-Jazeera Children Channel.
Aiwa Gulf.com has interest to distribute mobile content produced by Malaysian companies, namely Ozura,
Macera and Metadome.
Arab Information Centre (Kuwait), Trade Media UK, Kewego (France) and NTN TV Channel (Ukraine) were interested
in buying the rights for “Geng” and “Upin & Ipin”, produced by Les Copaque Sdn Bhd.
PorchLight Entertainment (USA) and Studio 100 Media (Germany) express interest to co-produce “Monster Ghost
Academy” with Backbone Entertainment Sdn Bhd.
Kidsplant (France) was negotiating an outsourcing deal with Netcarbon Sdn Bhd.
Al-Jazeera Children Channel had interest to co-produce an animation series called “Ibnu Bathuta” with Go-Infusion
Sdn Bhd.
E-M Entertainment GmbH (Germany) was interested to distribute an animation series “ABC Monsters”, produced
by Animasia Sdn Bhd, to German-speaking markets.
Grand Brilliance Sdn Bhd (GB) was negotiating co-production deals with partners from Brunei and Vietnam. GB also
managed to initiate sales of Islamic programmes such as “Jejak Rasul” and “As-salam USA” for Indonesian and
Mideast markets. Presidio Corporation (Japan) had expressed interest to buy the rights for “Evolusi KL Drift”.
Source: Industry, MDeC
Fig. 5.6 Potential Deals from MIPTV 2008
Market Access
One of the major objectives of MyICMS 886 in the area of networked content development is to generate a sizeable export
revenue earner for Malaysia from the content industry. SKMM has joined forces with other agencies, like the Multimedia
Development Corporation (MDeC) and the National Film Development Corporation (FINAS), to promote and sell Malaysian
content on international markets.
In April 2008, SKMM together with MDeC and FINAS, sponsored the Malaysian Pavilion at the MIPTV 2008 in Cannes, France.
Twenty Malaysian companies took part in the pavilion, which functioned as their hub for promotions and marketing.
Mustang Mama Die-Hard Sports Fan, an animation series under NCDG
Source: Inspedia Sdn Bhd
Fig. 5.7 Animation series under NCDG
The Koreans put up a giant poster outside the exhibition hall depicting one
of their premier content, successfully making their presence strongly felt
Source: SKMM
Fig. 5.9 Content is King
Officers from FINAS manning the information counter at the Malaysian
Pavilion during MIPTV 2008 in Cannes, France
Source: SKMM
Fig. 5.8 Looking out for the buyers
En. Roslan Mohamad, SKMM Director of Content and Industry Development
Department, being briefed by animators from INFUSION Sdn Bhd about their
Ibnu Batutha project
Source: SKMM
Fig. 5.10 Dealing with Animation under NCDG
The venture had produced encouraging results, among which were the formalisation of a content licensing deal, and a coproduction deal worth nearly RM7 million. These comprised a Malaysian animation outfit, Animasia Sdn Bhd, which licensed
the rights for 39 completed episodes of animation series “Bola Kampung” and 26 in-the-making episodes of “Supa Soccer”
to Media International Pictures (Lebanon). In another landmark deal, Eden Animation Sdn Bhd signed a Memorandum of
Agreement (MoA) with Sieun Design Co Ltd (Korea) to co-produce 26 episodes of 2D animation called “Banana Shake”.
The following table lists the various deals from MIPTV 2008.
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(Continued)
Creating Excitement and Capacity Building in Content Development
Way Forward
“Creating excitement” and “capacity building” are action items under the Government’s strategies to invigorate the local
content industry with fresh talents and sustainable human capital. For these two purposes, SKMM carried out various field
activities like organising content development competitions, as well as conducting seminars and workshops.
The NCDG was initiated with the objective to facilitate and encourage the growth of Malaysian networked content industry.
These efforts will continue through 2009 and beyond with the initial allocation of RM20 million.
SKMM forged strong cooperation with the Maxis Developers Programme to organise the Mobile Content Challenge 2008
(MCC2008) – a national level competition for university students, to create exciting mobile contents and applications.
In 2008, an overwhelming total of 185 concept submissions were received from 59 Institutions of Higher Learning (IHL).
The number of concept submissions increased by 93% (96 submissions in 2007), with the number of IHLs involved up
by 69% (35 IHLs in 2007).
Number of IHLs Involved and Submissions (MCC2007 versus MCC2008)
As part of the capacity building initiative and human capital development, continuous awareness programmes and promotions
on the opportunities in content development will be conducted in the coming years. Strong collaboration and strategic
partnerships with relevant Government agencies will also constantly be enhanced to improve inter-agency cooperation.
To successfully manage the MyICMS 886 strategies on networked content development, more initiatives are expected in
the pipeline to meet the targets for content development, especially to generate sizeable export revenue contribution for
Malaysia from the networked content industry by 2010. Given this target, SKMM plans to carry out a more aggressive
market access plan to sell Malaysian contents to foreign markets. To reach this target, continued strategic cooperation
among relevant Government agencies and participation of local industry players are key success factors.
FOREIGN VENTURES IN 2008
200
180
Company/ Date Announced
160
140
120
100
80
60
MCC2007
40
MCC2008
20
0
No. of IHLs
No. of Submissions
Fig. 5.11 Number of IHLs Involved and Submissions (MCC2007 versus MCC2008)
As part of the development activity of Mobile Content Challenge, Memoranda of Understanding (MoU) were signed between
the MCC2007 winners and respective mentors for content commercialisation and business development. The list of MoUs
signed between the winners and the mentors are as follows:
• MoU between Focus IT, MCC2007 first prize winner from Universiti Malaysia Sarawak, with Metadome Sdn Bhd (mentor)
for the project entitled HalalPro
• MoU between Kids Cashier, MCC2007 first runner-up from Universiti Teknikal Malaysia, Melaka, with LTT Global
Communication Sdn Bhd (mentor) for the project entitled Mobile Money Edutainment
Seminars and workshops were conducted to highlight career and business opportunities in content development and to
instil basic knowledge to beginners about the business of content development. Two seminars were conducted in Kuching,
Sarawak and Kuala Terengganu, Terengganu, with the support of the State Governments, while six workshops were organised
together with Maxis at various regions nationwide.
In addition, SKMM and KTAK also held a dialogue session to bring together two major stakeholders of the content industry.
They are the network owners controlling content delivery, and the local animation companies seeking a fair deal to distribute
their works on local networks. SKMM was the moderator at the dialogue, and issues raised by the two sides were noted for
further consideration and actions.
TM
25 April ‘08
Demerge TM operations into
two separate legal entities
TMI
25 April ‘08
Remarks/Financial
Investment
FixedCo (TM) – retain the listed
TM domestic interests in fixed-line
voice, data and broadband and
other non-core services under
TM Ventures, and
RegionCo (TM International or
TMI)* – group TM regional mobile
operations under TM International,
and domestic mobile operations
under Celcom.
Listing TMI on the Main Board of Bursa Malaysia Securities Bhd
25 April ‘08
To acquire**all of Khazanah’s equity
interests in:
• SunShare Investments Ltd
(SunShare) (49%), and
• PT Excelcomindo Pratama
TBK (XL) (16.81%)
SunShare is an investment holding
company. In 2005, SunShare acquired
12.1% of the equity interest in M1
from Great Eastern Telecommunications
Ltd and became a strategic shareholder
in M1. Subsequently, up to March
2006, SunShare made on-market
purchases, bringing its total equity
interest in M1 to 29.7%.
As at 31 December 2007, SunShare
has a 29.7% equity interest in M1.
SKMM also joined hands with ASTRO and MDeC to organise the Nextgen Contentpreneur Award 2008, a reality TV programme
for young adults, to give recognition to their outstanding skills in various aspects of content creation.
Proposed Acquisition or
Other Corporate Developments Business
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(Continued)
(Continued)
Remarks/Financial
Investment
Astro All Asia
Networks plc
(cont’d)
Joint Venture with:
28 October ‘08
• Saudi Telecom Company (STC) – 51% stake, and
• Saudi Research and Marketing Group (SRMG) – 20% stake
to provide content services
encompassing information, religious, entertainment, and education communication
across formats ranging from text, image, audio, video, multimedia
and interactive service delivered
through a broad range of options,
such as broadcasting, streaming, downloads, text messaging and
browsing. Astro All Asia Networks plc will own 29% share of the new Joint
Venture company.
TMI (cont’d)
XL provides voice, data and other value added mobile
telecommunications services. In September 2006, XL introduced 3G service, which is currently available in 73 cities throughout Indonesia. XL also provides leased
line and corporate services which
include Internet service provider and
Voice over Internet Protocol services.
Purchase price of
RM155 million
(SunShare)
23 December ‘08
Investment in Tune Talk***
Tune Talk plans to embark on the business of provision of mobile communications services in Malaysia
as a Mobile Virtual Network Operator
(MVNO).
Cash investment of
RM2.6 million
Media Prima
27 August ‘08
Proposed initial public offering
exercise for TV3 Network Limited (TV3N)**** on the Ghana Stock Exchange (GSE) Purchase price of
RM1,400 million (XL)
Still subject to the
necessary Ghanaian
regulatory approvals
Astro All Asia
Networks plc
February ‘08
Invested USD3.7 million in South Asia FM Limited (SAFL) in India for 6.98% stake. SAFL has licences to own and operate
23 FM stations across North, East
and West India including key metro markets of Delhi, Mumbai and Kolkata. SAFL owns stakes in Red FM which operates three metro FM stations in
Delhi, Mumbai and Kolkata, and is the
no. 1 radio station in Mumbai and
no. 2 in Delhi.
Total Joint Venture
funding expected to
be approximately
USD100 million over
three years
Remarks/Financial
Investment
STC is Arab Saudi’s largest phone
company offering landline, mobile,
and Internet services. It operates
in nine countries across the Middle East, Africa and South East Asia regions,
serving 18 million mobile and 4.5 million
fixed line subscribers in Saudi Arabia,
and more than 70 million subscribers
through its international subsidiaries.
SRMG is a leading integrated publishing
group in the Middle East and North
Africa. It also publishes the pan-Arabian
newspaper Asharq al-Aswat and
the Saudi-based Arab News.
The Group is actively engaged in
four key areas of publishing which are,
media and advertising, sales, printing
and distribution.
The start-up will
have an initial capital
of 280 million Riyals
or USD75 million
U Mobile
15 April ‘08
Acquisition of joint 33% equity stake in the company by NTT DoCoMo and KT Freetel to provide
global expertise towards developing innovative products and services. NTT DoCoMo is world’s leading mobile
communications company serving
53 million customers, including
43 million people subscribing to
FOMA™. The company launched the
world’s first 3G mobile service based
on WCDMA in 2001. DoCoMo also
offers a wide variety of leading-edge
mobile multimedia services, including
i-mode™, the world’s most popular
mobile e-mail / Internet service,
used by more than 47 million people.
Acquisition price of
USD200 million
KT Freetel is the largest 3G mobile
service provider in Korea with 5 million
HSDPA customers in only 14 months
and the world’s first operator to achieve
99% population coverage with
HDSPA. Overall, it has 13.6 million
mobile communications subscribers in
Korea with a forefront in providing
innovative services.
* Effective 1 April 2009 known as Axiata
** Acquisition by TMI and Indocel Holding Sdn Bhd
*** Investment by Celcom in Tune Talk (Celcom (Malaysia) Bhd, is a wholly owned subsidiary company of TM International Bhd (“TMI”)
**** TV3N is a subsidiary of MPB, held through its wholly-owned subsidiary, Gama Media International (BVI) Ltd, which operates a Free-to-Air television station in Ghana.
Source: Bursa Malaysia, Bloomberg, Company reports and websites
Fig. 5.12 Foreign Ventures in 2008
25 March ‘08
Establishment of a Media Fund
For the purpose of making private Expected size of
equity investment in the media sector fund is USD100
within the ASEAN emerging markets
million
including Indonesia, the Philippines,
Vietnam and Malaysia.
The initial financial
close of the Fund is
expected to take
place by the end of
the current financial
year in 2008
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(Continued)
ALIGNMENT WITH INTERNATIONAL DEVELOPMENTS
Greenhouse Gas Emission in ICT Sector
Malaysian developmental activities are strategised along international trends, but adapted to the local national context
as required for local consumption and domestic economic sustainability. The Malaysian Government’s involvement in
International Multilateral Partnership Against Cyber-Terrorism (IMPACT) is a case in point from the perspective of network
security development, and the efforts in the Malaysian context, into green energy strategies.
NETWORK SECURITY DEVELOPMENT
Printers 6%
LAN and Office Telecommunications 7%
Mobile Telecommunications 9%
Malaysia’s commitment towards cooperation in cybersecurity
areas is exemplified by the Malaysian Government’s approval and
disbursement of a USD13 million grant to kick off IMPACT, a publicprivate collaborative initiative to address cyber threats through
international cooperation. More than half of this initial funding is
for IMPACT to build its secretariat in Malaysia’s high-tech city of
Cyberjaya.
PCs and Monitors
(excluding Embodied Energy) 40%
Fixed Line Telecommunications 15%
The physical facilities of IMPACT in Cyberjaya are purpose-designed
to allow IMPACT to undertake its four core activities, namely:
global response;
policy, regulatory framework and international co-operation;
training and skills development; and
security certification, research and development.
Fig. 5.13 IMPACT global headquarters in Cyberjaya, Malaysia
The International Telecommunication Union (ITU) and IMPACT have assigned an MoU to formally endorse IMPACT’s new
state-of-the-art global headquarters in Cyberjaya, Malaysia, as effectively the physical home of the ITU Global Cybersecurity
Agenda (GCA). Under the auspices of GCA, IMPACT initiatives, such as the Global Response Centre, as well as training and
skills development, security assurance, research, and international cooperation, will be conducted.
Note: Embodied Energy refers to the quantity of energy required to manufacture a product or material
Source: International Telecommunications Union – ICT Background Report on ICTs and Climate Change December 2008
Fig. 5.14 Greenhouse Gas Emission in ICT Sector
Meanwhile, at the Regional Radiocommunication Conference 2006 (RRC 2006), a new digital broadcasting plan was
developed to bring about significant reduction of up to 10 times of transmitter power through digital modulation.
Energy-Saving Checklist (ITU – T Study Group 15)
The GCA, launched in 2007 by ITU Secretary-General, is a framework for international cooperation and is aimed at enhancing
confidence and security in the information society. The framework is designed for cooperation and efficiency in cybersecurity;
encouraging collaboration among all relevant partners; and building on existing initiatives to avoid duplicating efforts.
Responding to the current issue on global climate change, the communications and multimedia industry has taken lead to
move forward in reducing energy usage and the emission of carbon dioxide (CO2). Going green is part of various efforts
taken by organisations in order to develop an eco-consciousness.
Many industry players have initiated specific programmes and methods of energy saving and steps to reduce carbon
footprints, like GSM Association that has developed base stations running on alternative energy sources such as wind
turbines, solar panels and biofuels, since 2006.
ICT industry players can reduce their carbon footprints by emphasising recycling the materials used, reducing power
consumption and energy usage. Indirectly, the ICT sector can also make this happen by using existing technologies in
innovative ways to reduce carbon output.
Forecast
G-PON
Plateau?
G-PON
1G
100 M VDSL2 at DP
VDSL Plateau?
100 M
100 M VDSL2 + cab
ADSL Plateau?
10 M
ADSL2
1M
100 k
Early ADSL Implementation
10 k
56 kbit/s modems
1k
1990
1995
2000
Typical bit rate per second
2005
2010
2015
2020
LT and NT Power Consumption Trend
Note: LT stands for Line Termination, NT stands for Network Termination
Source: International Telecommunications Union – ICT Background Report on ICTs and Climate Change December 2008
Fig. 5.15 Energy-Saving Checklist (ITU – T Study Group 15)
According to recent studies (Ericsson Research and Gartner), the ICT sector has contributed to 2% share of total global
warming. ITU has set up standards related to the impact of ICT on climate change. ITU indicated that ICT could assist to cut
global gas emissions by between 15% to 40%.
Actual
10 G
Typical bit rate per second
GOING GREEN: GREEN ENERGY AND COMPUTING
100 G
LT and NT Power Consumption Trend
•
•
•
•
Servers (including Cooling) 23%
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(Continued)
(Continued)
Service Providers in Malaysia Going Green Energy
DiGi Green Energy Initiatives – A Green Case Study (cont’d)
Green energy efficiencies are being adopted by the Malaysian service providers, like DiGi and ASTRO, which are being
highlighted in this section.
Thrust 2 - Activating Innovations to Reduce Shared Climate Impact
a. Sustainable and environmentally-friendly corporate gifts and customer premiums, such as woven shopping
bags as gifts to customers who sign up for new post-paid plans, woven bags as festive greeting “cards”, and
the likes
b. Development of products that encourage online interaction
c. Encourage customers to opt for e-billing
d. Undertake a community programme to encourage “greener” / sustainable behaviour amongst young
Malaysians
In 2008, the communications and multimedia industry in Malaysia saw the implementation of the Green Computing policy
by DiGi through its Deep Green programme. Deep Green is a corporate responsibility programme that extends beyond
community relations. It was designed to create better awareness about climate change to various stakeholders of DiGi,
namely its employees, suppliers, customers, business partners and local communities. DiGi aims to achieve the goals in the
Deep Green programme, as summarised below:
1. Addressing internal CO2 emissions in the areas of:
• mobile and IT networks;
• building and transport management; and
• employees’ mindset.
Key success factor to achieving DiGi’s ambition is the engagement of employees. In this regard, the following are
some initiatives undertaken to encourage employees to adopt a more green / sustainable lifestyle:
a. Three-week internal awareness programme on Climate Change
b. Waste separation into paper, plastic and general waste in all office areas
c. Waste separation facilities at all company car parks for employees to bring their personal disposables from
home.
d. Carpooling – covered carpark within D’House is reserved mainly for carpoolers
2. Activating innovative solutions to reduce its shared climate impact with its external stakeholders through its:
• marketing;
• products; and
• community programmes.
Recycling programme that enabled employees to bring their old furniture, clothing and other big items which are
then donated to charitable homes. Employees are also invited to bring their unused electrical items, which are
passed on to a licensed electronics waste handler
DiGi Green Energy Initiatives – A Green Case Study
DiGi launched their Deep Green ambition in August 2008. Deep Green basically has two key thrusts:
Thrust 1:
Thrust 2:
Reduce CO2 emissions by 50% in the next three to four years – addressing DiGi technology, operations
and processes
Activate innovations to reduce shared climate impact – addressing its key stakeholders, like
customers, community, suppliers and others
a. Set up DiGi’s first solar site on rooftop of headquarters, D’House, as a test site with a view to explore renewable
energy for DiGi sites.
b. Reducing air-conditioning requirements in base stations by investing in air-conditioning units with
inverter principle, outdoor enclosures, as well as other cabin design elements that will reduce airconditioning requirements.
c. Harnessing greater power efficiency for DiGi network and IT, such as converting more indoor sites to outdoor
sites, and maximising Power Usage Efficiency (PUE) in DiGi’s new Technology Operations Centre.
d. Incorporate “green” criteria into DiGi Request For Proposal (RFP) evaluation process, such as 20%
weightage given to environmental criteria.
e. Incorporate “green” requirements into DiGi’s new Supplier Code of Principles, which are mandatory to
all suppliers.
f. Changing lights at D’House to more energy-efficient lighting.
g. Increase temperature set point at the office areas.
h. Reduce the operating hours of air-conditioning and lighting.
Since 2008, ASTRO initiated various steps to reduce energy consumption to the extent of using more energy-saving light
bulbs and installing movement or solar sensors for lights at selected areas. In 2009, a more systematic and focused
approach towards Green Energy will be implemented with the completion of ASTRO’s Environmental Strategic Plan (2009–
2011) where the key objectives are to seek reduction in energy consumption by 10% in 2011, and to seek supplies from
renewable sources. Apart from that, other initiatives include air-conditioning system, automatic off system for lights when
not in use, and increase awareness among employees to switch off electrical devices when not in use.
Astro Going Green Energy – A Green Case Study
2009
2010
2011
ASTRO’s
• Conduct energy audit exercise and implement recommendations from the review
Conduct feasibility Environmental committee
studies on
Strategic Plan
• Continuous review of effectiveness of audit exercise and improve
alternative energy
where appropriate
options
(Energy Audit, Energy Smart Lighting System, Energy Saving Campaign)
(Solar Energy)
(Energy
Review and improve current IT network
Implementation of new solutions to
Upgrade data
Efficiency)
data server and storage consolidation
data storage
storage system
(Centralised Storage) (Server Efficiency Solution)
Source: ASTRO
Fig. 5.17 ASTRO Going Green Energy – A Green Case Study
Thrust 1 - Planned and On-going Initiatives
Source: DiGi
Fig. 5.16 DiGi Green Energy Initiatives – A Green Case Study
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CONSUMER PROTECTION
CHAPTER 6
QUALITY OF SERVICE
SKMM regulates the performance of application and network service providers by mandating Standards for Quality of Service
(QoS MS). These QoS mandatory standards (MS) are minimum standards of service that the service providers must maintain
in their service offerings to consumers.
QoS Standards are created to ensure:
•
•
•
The rights of consumer are enhanced and protected;
Consumers have a visible and specific criteria through which the QoS received or used can be gauged; and
Robustness of the industry, thereby enhancing the global competitiveness of the nation.
To comply with a certain standard a service provider must not exceed the maximum number of complaints on for example
service availability or network disruption, within a reporting cycle. Non-compliance with the QoS MS is a breach of Section
105 (3) of CMA 1998, and offenders are liable to a fine of a sum not exceeding RM100,000, or imprisonment to a term not
exceeding two years, or both.
There are currently seven QoS MS registered between 2002 and 2007. These are mandatory standards on:
1.
2.
3.
4.
CONSUMER PROTECTION
137
138
139
140
141
141
143
145
147
Summary Report for the Period Ending June 2008
For the reporting period ending June 2008, SKMM received a total of 52 reports from the relevant service providers. Based
on the reports submitted, out of 258 applicable standards, 19 standards were not complied with. Overall, the percentage of
compliance is 91.57%. BB and DLL have the most number of non-compliance, at 13% and 9% respectively.
The table below shows the overall compliance on applicable standards:
No. of Services
Standards
No. of
Standards
Complied
No. of
Standards
Not Complied
% Standards % Standards
Complied Not Complied
PSTN
50
48
2
96.00
4.00
PCS
16
16
0
100.00
0
DIAS
11
11
0
100.00
0
CAS
20
20
0
100.00
0
4
4
0
100.00
0
DLL
81
74
7
91.36
8.64
BB
76
66
10
86.84
13.16
258
239
19
92.64
7.36
PP
Total Source: SKMM
Fig. 6.1 Summary Report for the Period Ending June 2008
5. Public Payphone (PP) Services
6. Digital Leased Line (DLL) Services
7. Broadband Access (BB) Services
As provided for under the QoS MS, service providers are required to submit semi-annual reports to show compliance with the
standards. SKMM will randomly or selectively conduct audit on reports submitted by service providers to ascertain validity
and reliability.
CHAPTER 6
Quality of Service Customer Satisfaction Survey (CSS)
Observations
Consumer Complaints
Rates Monitoring
Content Regulation (Complaints) Enforcement Public Switched Telephone Network (PSTN) Services
Public Cellular Services (PCS)
Dial-up Internet Access Services (DIAS)
Content Applications Services (CAS)
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
138
139
CHAPTER 6
CHAPTER 6
CONSUMER PROTECTION
(Continued)
CONSUMER PROTECTION
(Continued)
CUSTOMER SATISFACTION SURVEY (CSS)
The following table shows the CSI targets for the period 2002 – 2007.
The CSS forms a major part of SKMM quality of service monitoring and is considered one of the benchmarks (from
consumers’ perspective) on the level of satisfaction of the various communications and multimedia services provided to
them.
Key Performance Index (KPI)
The results of the survey present an insight into the consumers’ perceived level of quality of the services offered by the
various service providers in both urban and rural areas. The objective of this study is to measure the respective satisfaction
levels of fixed line telephone services, mobile telephone services, Internet access services (Dial-up and Broadband), public
payphone, digital leased lines, Free-to-Air Television (FTA TV), Free-to-Air Radio (FTA Radio), pay-TV, and postal services,
including courier services.
The CSS was initiated in 2001. The survey was conducted once every six months until 2003, after which it was conducted
annually. By end-2007, there are a total of nine surveys conducted as in the table below:
Consumer Satisfaction Survey (CSS) 2001 – 2007
Year
CSS
Consultants
2001
Wave 1 and 2
TNS
2002
Wave 3 and 4
TNS and UKM
2003
Wave 5 and 6
TNS and UKM (W5) and IIUM and UKM (W6)
2004
CSS 2004
TNS
2006
CSS 2006
IDC
2007
CSS 2007
IDC
SKMM Framework for Industry
Development 2002 – 2007
CSI
Mobile Cellular *
3.5
Fixed Line *
3.5
Free to Air TV
4.0
Dial-up Internet *
3.5
Postal
4.0
Courier
4.5
*The specified benchmark was based on a 10-point scale.
As the current survey uses a 5-point scale, the equivalent calibrated benchmark for the
5-point scale is 3.5.
Source: SKMM Framework for Industry Development (2002 – 2007)
Fig. 6.3 Key Performance Index (KPI)
CSI SCORES BY PRODUCT CATEGORY (CONSUMER) 2007
The findings of the CSS 2007 are summarised in the table below:
Payphone
2006 : 3.50
2007 : 3.86
5.0
Cellular
2006 : 3.56
2007 : 3.64
Dial-up
2006 : 3.12
2007 : 3.49
BB
2006 : 3.20
2007 : 3.52
4.5
4.0
3.5
TNS – Taylor Nelson Sofres
UKM – Universiti Kebangsaan Malaysia
IIUM – International Islamic University of Malaysia
IDC – IDC Malaysia
*No CSS was conducted in 2005 and 2008
Source: SKMM
Fig. 6.2 Consumer Satisfaction Survey (CSS) 2001 – 2007
4.02
4.02
3.90
3.85
3.86
3.65
3.63
3.64
3.71
3.66
3.69
3.55
3.57
3.55
3.55
3.49
3.50
3.46
3.40
3.34
3.50
3.43
3.12
3.14
3.58
3.26
3.0
3.37
3.07
2.5
2.0
1.5
1.0
Customer Satisfaction Survey 2007 (CSS 2007)
IDC Malaysia was the appointed consultant to conduct the CSS 2007. The CSS was a nationwide study, covering Peninsular
Malaysia, Sabah and Sarawak, with a total of 35,171 respondents. The survey was conducted from October to December
2007. The confidence interval was at least ±2% at the national level and ±5% at regional level.
The information gathered from the CSS was used to compile the Consumer Satisfaction Index (CSI) which formed a benchmark
for SKMM to set targets towards improving service quality.
TM
L
N=
TM
h
yp
Pa
e
on
is
ax
M
h
yp
Pa
e
on
e
m
Ti
m
co
l
Ce
Gi
Di
al
o
di
st
Po
TA
Ra
F
2006
A
FT
2007
TV
TV
y-
Pa
–
t
tro
As
p
-u
al
Di
TM
Ne
p
-u
al
Di
t
g
rin
Ja
BB
TM
Ne
g
rin
BB
Ja
0.20
0.36
0.36
0.09
0.08
0.08
0.56
0.31
0.33
0.15
0.36
0.31
0.32
0.30
2,321
2,367
2,329
2,335
2,349
2,336
2,332
2,755
2,760
2,317
1,153
297
1,152
498
: CSI difference between 2006 and 2007 Total N = 27,301
Fig. 6.4 CSI Scores by Product Category (Consumer) 2007
Out of the residential segment survey, the highest index obtained was for Free-to-Air Radio and Free-to-Air TV at 4.02. Postal
services achieved the second highest with an index of 3.9, followed by public pay phones services with an index of 3.86.
TM’s fixed line service achieved a score of 3.6, which is higher than the specified level of index at 3.5. This shows an
increment from 2006 with an index of 3.46.
The study involved soliciting responses from customers in 14 separate surveys over time. Questions asked covered areas
such as telecommunications, broadcasting and postal services segregated into the residential and commercial segments.
The study helps SKMM determine consumer needs or expectations and over time monitor how such needs or expectations
change. It also helps identify which needs or expectations have the highest impact on consumers’ satisfaction.
d
xe
Fi
e
in
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
140
141
CHAPTER 6
CHAPTER 6
CONSUMER PROTECTION
(Continued)
CONSUMER PROTECTION
(Continued)
The mobile telephone services obtained an index of 3.64 in 2007 and this shows an improvement from 2006. All the three
mobile operators – Celcom, Maxis and DiGi, outperformed the 3.5 benchmark set by SKMM. Maxis achieved a CSI of 3.64,
Celcom obtained an index of 3.65, and DiGi, 3.63.
Pay-TV services provided by ASTRO registered an increase in index to 3.55, compared to 3.40 in the preceding year. Internet
Dial-up service and Broadband Internet indicated low satisfaction levels at 3.52 for Broadband and 3.49 for Internet Dial-up.
However, both services showed increases in index compared to 2006.
OBSERVATIONS
Based on the conducted surveys, both residential and commercial consumers were generally satisfied with the services
provided. Most of the categories covered in the survey managed to meet the industry benchmark set by SKMM, and showed
improvement in the respective indices.
CONSUMER COMPLAINTS
CSI SCORES BY PRODUCT CATEGORY (COMMERCIAL) 2007
Fixed Line
2006 : 3.41
2007 : 3.60
Dial-up
2006 : 3.10
2007 : 3.46
In 2008, a total of 4,289 complaints were received by SKMM, which was double the 2,147 complaints received in 2007.
The increase was due to greater awareness brought about by the publicity and advertisements made by SKMM in the
mass media on the complaints procedure as well as on the establishment of the SKMM Consumer Complaints Bureau
in August 2007. The number of complaints received has been increasing over the last seven years, and more so in the
last three years.
BB
2007 : 3.47
5.0
4.5
4.0
3.35
3.5
3.54 3.60
3.60
3.45 3.60
3.49
3.45
3.10
3.0
3.48
3.17
3.09
3.58 3.51
3.43
5,000
2.5
4,289
4,500
2.0
4,000
1.5
3,500
1.0
TM
e
ed
n
Li
x
Fi
d
xe
om
tC
e
Fi
N=
Consumer Complaints (2002 – 2008)
n
Li
e
m
Ti
do
r
rie
u
Co
p
l-u
a
Di
TM
t
Ne
p
l-u
a
Di
2006
ri
Ja
2007
ng
nd
TM
t
Ne
d
an
a
db
b
ad
ro
a
ro
B
B
ng
ri
Ja
ed
as
ne
Li
2,500
e
2,147
2,000
t
i
ig
D
L
al
3,000
1,500
1,000
0.25
0.06
0.15
0.35
0.40
0.31
n.a.
-0.07
2,296
998
2,307
481
235
1,070
172
294
: CSI difference between 2006 and 2007 N = 7,853
Fig. 6.5 CSI Scores by Product Category (Commercial) 2007
TM’s and Time dotCom Fixed Line services obtained the same index levels at 3.6 for 2007. The benchmark satisfaction
level for this service was fixed at 3.5. Satisfaction level of commercial courier users was at 3.6, which showed better
performance compared to 3.45 in 2006.
Internet Dial-up and Broadband shared increase index levels at 3.46 (Internet Dial-up) and 3.47 (Broadband). However, there
was a decrease in index for Digital Leased Line from 3.58 in 2006 to 3.51 in 2007.
500
369
343
190
0
2002
2003
2004
2007
2008
500
418
450
457
445
396
416
470
406
355
303
350
298
300
200
173
152
150
100
50
0
Jan
Feb
Mar
Fig. 6.7 Number of Complaints Received by Month (2008)
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2006
Number of Complaints Received by Month (2008)
250
Compared to residential users, the index as a whole for the commercial users in the five sectors covered by the study was
lower. These were Fixed Line, Courier, Internet Dial-up, Broadband Internet and Digital Leased Line services sectors.
2005
Fig. 6.6 Consumer Complaints (2002 – 2008)
400
Based on the survey, the index performances of all the areas covered showed an improvement compared to 2006 except
for Digital Leased Line service.
664
370
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
142
143
CHAPTER 6
CHAPTER 6
CONSUMER PROTECTION
(Continued)
CONSUMER PROTECTION
(Continued)
Types of Complaints Received
RATES MONITORING
Rates regulation generally covers the rules and principles used in rate setting by service providers, whereas rates
monitoring covers the compliance by service providers with any rules and principles, as well as rates set according
to the Rates Rules.
Unfair Practice 2%
Postal / Courier 1%
SMS Content Services 8%
Poor Service 41%
Misleading Promo / Ads 1%
Billing 13%
Non-GCC 3%
SMS Scam 10%
Dispute Terms and
Conditions 1%
Service Coverage 7%
Spectrum Interference 2%
Tower / Satellite
TV Antenna 3%
Miscellaneous 2%
Content 6%
Fig. 6.8 Types of Complaints Received
In general, the cellular industry recorded the highest number of complaints, mainly relating to scam SMS, SMS mobile content
service, billing and charging, network service coverage, poor customer service, misleading promotions and unfair practice.
Internet broadband had the second highest number complaints received. Most of the users who complained were generally
not satisfied with the quality of broadband service. Among the customer complaints were slow broadband connection or
speed which did not meet the speed of the subscribed package, unsuccessful or delay in installation or activation of service,
service disruption or downtime, billing and charging, poor customer service and restoration, misleading promotions and unfair
practices such as the imposition of penalties on the termination of service.
The third highest complaints were on pay-TV services (ASTRO) with complaints relating to poor customer service, service
downtime, unreasonable charges such as penalty for late payment and reconnection fee, poor service restoration, termination
of service not processed, unfair practice, late delivery, and billing disputes.
CMA
CMA Explanations
Section 197
Rate setting by service providers:
a) may set rates in accordance with the market rates
b) to publish the rates charged to customers for one or more services
Section 198
Principles on rate setting:
a) rates must be fair, and for similarly situated persons, not unreasonably discriminatory
b) rates should be oriented toward costs and, in general, cross-subsidies should be eliminated
c) rates should not contain discounts that unreasonably prejudice the competitive opportunities
of other providers
d) rates should be structured and levels set to attract investment into the communications and
multimedia industry
e) rates should take into account the regulations and recommendations of the international
organisations of which Malaysia is a member
Section 201
Rules regarding rates by Minister – Rates Rules 2002
Source: CMA, SKMM
Fig. 6.9 Rates Monitoring Provision in Communications and Multimedia Act (CMA) 1998
Rate Control Mechanism
Most organisations require communications and multimedia services regardless of whether they are engaged in services
or in manufacturing. Fair and affordable prices for such services are considered necessary to ensure competitiveness of
economic activities conducted by organisations in various sectors as well as individual consumers.
Rate control mechanism is normally employed to ensure rates or tariffs are not artificially inflated or do not contain excessive
economic rent (price is above that which would be set in a competitive market) and that prices charged are fair and reflect
underlying costs.
In short, the rate control mechanism is used in sectors that are exposed to monopolistic conditions and where regulations
are required to align with national objectives and to protect consumers’ interests.
Other categories of complaints were related to Postal Services, Free-to-Air TV and Radio services, Fixed Line services, Internet
Dial-up services, telecommunication towers, website content, spectrum interference, and installation of illegal satellite TV
antenna.
Rates Monitoring Provision in Communications and Multimedia Act (CMA) 1998
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
144
145
CHAPTER 6
CHAPTER 6
CONSUMER PROTECTION
(Continued)
CONSUMER PROTECTION
(Continued)
Rate Monitoring as at December 2008
CONTENT REGULATION (COMPLAINTS)
1. Fixed Line Telephone
In 2008, there was a marked shift in the types of complaints received by SKMM. Besides complaints on traditional media
such as TV and Radio, consumers were also providing feedback on Online Content services. Overall, complaints received
on content have increased over the last five years. There was a marked increase in complaints received for Online Content
from 45 complaints in 2007 to 216 complaints in 2008.
SKMM found that there was compliance with the specific rates in terms of the line rental (access charge) and the call
charges as published on service providers’ websites and displayed at customer service centres.
2. Cellular Phone Service
SKMM found that there were 21 packages available for postpaid mobile services, and 14 packages for prepaid mobile
services offered by the four service providers.
Malaysians were able to decide on the cellular phone service plans that best fit their needs by comparing services and
rates that the service providers provided.
3. Broadband Internet Access Service
Broadband Internet Access (Broadband) is High-Data-Rate Internet access – typically compared with Dial-up access over
a modem. Broadband services, wired or wireless, are steadily becoming more popular for home and business use.
Service providers are now offering packages based on “unlimited time” or “flat rate” model with varying prices. Celcom
introduced a “Broadband Daily Unlimited” service at the price of RM6 for 24 hours of usage. The package allowed users
to access broadband on a daily basis without having to subscribe to a long-term plan.
Based on SKMM monitoring in compliance with Section 197 of the CMA 1998, on the rate setting and the requirement
to publish rates, SKMM found that the service providers have made the rates available to their customers, on their usual
respective websites, media advertisements, brochures, and also through their customer service hotlines.
Complaints on Content Trends for 2004 – 2008
Services
2007
2008
Television
• TV3
8
8
2
8
• NTV7
1
2
5
3
• Ch-9
3
–
–
–
• 8TV
3
2
3
8
• ASTRO
8
4
10
13
• General TV (RTM)
5
1
2
5
4
1
–
2
16
6
General Complaints
(Content Applications
Service Providers)
2004
–
Radio
• AMP Radio
1
6
2
1
• Fly FM
–
–
–
3
• Hot FM
–
1
1
3
• Red 104.9
–
–
–
1
• Suria
–
–
–
2
• THR FM
1
–
–
1
• 988
–
–
–
1
• General Radio (RTM)
6
–
–
1
4
2
1
–
1
1
–
–
Others
• Telcos
1
–
–
–
5
TOTAL
–
2006
–
Internet Websites
6
2005
–
–
9
26
45
216
43
33
51
95
259
Source: SKMM
Fig. 6.10 Complaints on Content Trends for 2004 – 2008
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
146
147
CHAPTER 6
CHAPTER 6
CONSUMER PROTECTION
(Continued)
CONSUMER PROTECTION
(Continued)
Number of Complaints Received by Category
ENFORCEMENT
240
216
200
In 2008, there was a significant increase in the number of reports received by SKMM for enforcement actions to be taken
under the CMA 1998, the Digital Signature Act (DSA) 1997, and the Postal Services Act (PSA) 1991.
SKMM investigated a total of 403 cases for various offences under the CMA 1998, two cases under DSA 1997 and three
cases under PSA 1991. In comparison, in 2007, there were only 352 cases investigated, 16 cases charged and 54 cases
compounded. A total of RM1.3 million of compound fines were collected.
160
120
The cases investigated in 2008 are as follows:
80
40
16
9
7
6
5
Cases Investigated in 2008
0
ASTRO
FTA TV
Radio
General TV
Others
Internet
No.
Case
Law
Source: SKMM
Fig. 6.11 Number of Complaints Received by Category
1
Sending offensive, obscene, indecent, menacing or false Short Messaging Services (SMS)
Section 233 (1) (a) CMA
44
2
Sending / posting offensive, obscene, indecent, menacing emails / websites, or blogs
Section 211/233 (1) (a) CMA
56
3
Making crank calls to 999 emergency number
Section 233 (1) (b) CMA
44
4
Breach of Licence Condition
Section 242 CMA
55
5
Use of apparatus without apparatus assignment
Reg. 20, C&M (Spectrum) Regulation
12
6
Possession of non-standard equipment
Section 239 CMA
52
7
Providing network services and application services
without licence
Section 126 CMA
12
8
Failure to contribute to USP Fund
Reg. 27, C&M (USP) Regulation
Source: SKMM
Fig. 6.12 Number of Complaints Received by Month in 2008
9
Failure to submit Audited Account
Reg. 29 (a), C&M (USP) Regulation
12
Number of Complaints by Type in 2008
10
Failure to submit Return of Net Revenue (RONR)
Reg. 29 (b), C&M (USP) Regulation
95
11
Non-compliance with a Directive of the Commission
Section 74 CMA
12
Number of Complaints Received by Month in 2008
45
42
40
36
35
29
30
31
30
25
20
10
17
16
13
15
10
9
14
12
5
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
7
Technical
16
False / Misleading
33
12
Failure to deal reasonably with consumer complaint
Section 188 CMA
2
Offensive
58
Obscene
152
13
Failure to take reasonable measure to check for proper identification
Section 6 (1) DSA
2
14
Providing courier services without licence
Section 25 PSA
3
Total Cases Investigated
Source: SKMM
Fig. 6.13 Number of Complaints by Type in 2008
Source: SKMM
Fig. 6.14 Cases Investigated in 2008
408
No. of
Cases
INDUSTRY
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REPORT
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REPORT
148
149
CHAPTER 6
CHAPTER 6
CONSUMER PROTECTION
(Continued)
CONSUMER PROTECTION
(Continued)
Types of Offenders (Total 408)
From the total of 408 cases investigated, 188 were non-compliance by licensees. The cases are as follows:
Types of Offences
Other Offenders
220
Licensees
188
Source: SKMM
Fig. 6.15 Types of Offenders (Total 408)
Offences by Licensees (Total 188)
Failure to Deal Reasonably with
Consumer Complaint
2
Use Apparatus Without Apparatus
Assignment
5
Failure to Contribute to USP Fund
7
Failure to Submit RONR*
95
Non-compliance with Direction
of the Commission
12
Breach of Licence Condition
55
Failure to Submit Audited Account
12
Offences by Other Offenders (Total 220)
Making Crank Calls to
999 (S233)
44
Note: Section 233 – Improper use of network facilities or network service
Source: SKMM
Fig. 6.17 Offences by Other Offenders (Total 220)
1
Breach of Licence Conditions
i. Non-compliance with Mandatory Standards on Quality of Service (4 cases)
ii. Non-compliance with General Consumer Code (4 cases) iii. Non-compliance with Prepaid Registration (35 cases)
iv.Broadcasting of programmes against moral and culture values (2 cases)
v. Others (10 cases)
No. of Cases
55
2
Failure to deal reasonably with consumer complaints
2
3
Failure to submit Audited Account
12
4
Failure to submit Return On Net Revenue (RONR)
95
5
Failure to contribute to USP Fund
6
Non-compliance with a Direction of the Commission
7
Use Apparatus without Apparatus Assignment TOTAL
7
12
5
188
Source: SKMM
Fig. 6.18 Types of Offences
SKMM will begin to organise Compliance Seminar in 2009 for all licensees to educate them on compliance and regulation
issues with a view to reduce cases of non-compliance and to improve self-regulation.
Others
2
Sending Offensive, Obscene, Indecent,
Menacing or False SMS (S233)
44
Sending / Posting Offensive, Obscene,
Indecent, Menacing E-mails, Websites,
or Blogs (S233 & 211)
56
Providing Network Services and
Application Services Without Licence
12
Use Apparatus Without Apparatus
Assignment
7
Status of Investigations
No.
Cases Investigated
1
Charged in courts
2
Compounding of cases
107
3
Pending investigations / DPP’s decision
222
4
Cases closed due to insufficient evidence
116
DPP – Deputy Public Prosecutor
Source: SKMM
Fig. 6.19 Status of Investigations
No. of Cases
23
Possession of Non-standard
Equipment
52
Type of Offences
The non-compliance offences committed by the licensees were mostly preventable cases and if positive steps were taken,
these cases would not recur. Some licensees took the initiative of organising compliance seminars for their staff members
with the objective of educating them on compliance issues, the CMA 1998, and the relevant Regulations, and to ensure
all the compliance issues were adhered to. Speakers from SKMM were invited to give presentations on all aspects of
compliance during these seminars. About 700 staff members from the licensees attended these seminars.
*Return On Net Revenue
Source: SKMM
Fig. 6.16 Offences by Licensees (Total 188)
Providing Courier Services
Without Licence
3
No.
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
150
151
CHAPTER 6
CHAPTER 6
CONSUMER PROTECTION
(Continued)
CONSUMER PROTECTION
(Continued)
Status of Cases
Compound
No.
Compounded
107
Compound of Cases
1
Licensee
i. Compound (103 Licensees)
ii. Compound Paid (84 Licensees)
iii. Compound Pending Appeal (19 Licensees)
Pending Investigation /
DPP’s Decision
278
2
Other Offenders
i. Compound (4 Offenders)
ii. Compound Paid (4 Offenders)
Charged in Court
23
Amount (RM)
1,444,000
922,000
222,000
13,800
13,800
Source: SKMM
Fig. 6.22 Compound
Insufficient Evidence
Source: SKMM
Fig. 6.20 Status of Cases
Status of Court Cases
No.
Cases Charged in Court
1
Licensees
i. Breach of Licence Condition
ii. Failure to contribute to USP Fund
No. of Cases
No.
Cases Closed due to Insufficient Evidence
1
Licensees
2
Other Offenders
109
Total
116
1
3
2
Other Offenders i. Making crank calls to 999
ii. Sending offensive SMS
iii. Unlawful use, possession or supply of non-standard equipment
iv. Unlicenced Network Facility, Network Services and Application Services
2
2
4
11
Total
23
No.
Status of Cases Charged in Court
1
Pending trial
2
Pleaded guilty
5
3
Cases withdrawn (Compound Paid)
2
No. of Cases
7
Source: SKMM
Fig. 6.23 Insufficient Evidence
No. of Cases
13
Source: SKMM
Fig. 6.21 Status of Court Cases
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
152
153
GOING FORWARD – AN OUTLOOK
CHAPTER 7
The Malaysian economy has been relatively resilient over
the last decade of turmoil and change. It has seen the
global economy shifting amidst the impact of the Severe
Acute Respiratory Syndrome (SARS) pandemic outbreak
(2003), terrorist attacks on US World Trade Centre (2001),
the smouldering effects of war in the Gulf region (2003), the
tsunami disaster in Asia (2004), and the London bombings
(2005).
As the country recovered from the Asian financial crisis of
1997, efforts on rebuilding infrastructure, human capital
and other key areas were intensified. Rebuilding included
relooking at the country’s dependence on domestic demand,
regional growth and diversification of growth areas that are
facilitated by information and communications technology.
CHAPTER 7
While the Malaysian economy is once again in rough waters,
one thing remains clear – Malaysia has been solidifying its
plans to realise a bright future for young people of today
and for generations to come, by working towards becoming
a developed nation, where wired as well as wireless
technologies become an essential ingredient to realising
better lifestyles, more conducive business environments,
and better productivity. Efforts have to be undertaken ever
more fervently in order to achieve this objective.
Without doubt, the communications industry of yesterday
has been transformed into a more exciting and interactive
communications and multimedia industry of today. Added
to this is budding broadband connections, prevalent mobile
connectivity, and the increasing number of young, Internet
and device savvy consumers who are eager to take
advantage of convenient communications products and
services. Consequently, there is a need to upgrade the
infrastructure built over the years in order to leverage on
the benefits of broadband and Internet Protocol (IP)-based
services. The availability of accompanying versatile products
and services can offer a rich and robust digital content and
applications environment. Thus, the national plans of today
are for 2009 and the future, as well as putting in place the
Among the plans are the mid-term review of the Ninth
Malaysia Plan (2006 – 2010), the national annual budgets,
and the various industry-specific developmental plans such
as the Third Industrial Master Plan (2006 – 2020) and the
Malaysian Information, Communications and Multimedia
Services (MyICMS 886) strategy, which will become
impetus to ignite important growth enabler not just for the
respective industries but also many other related industries.
The annual budget of 2009 has allocated more than
RM40 billion for many sectors in the development of the
country’s human capital – formal education from primary
school leavers to the institutions of higher learning, as well
as the cultivation of expertise in advanced, related fields.
These are carried out based on the recognition of the need
to provide solid infrastructure and nurture the right human
capital, with appropriate funding and ways to operationalise
such resource, towards nation- and people-building that will
ensure national economic resilience into the future.
The downturn in the global economy will eventually bottom
out. While waiting for the upswing, the domestic front is
ever more keen to move ahead in countering, solving and
moderating economic issues proactively. The range of
monetary and fiscal policies announced by the Government
will assist in no small ways to stimulate our local economy,
and the private sector will also move in tandem to achieve
greater heights. For example, the overall communications
and multimedia infrastructure build-out as a result of
the HSBB project, a collaboration between TM and the
Government, over the next 10 years will provide impetus
to help local enterprises participate in the provision of core
technologies as well as ancillary products and services to
realise the nation’s next-generation broadband initiatives. To
support this, the Universal Service Provision (USP) plans of
SKMM are aligned to meet such infrastructure developments
nationwide.
SKMM expects 2009 to be a year of mixed results in terms
of industry performance. With some moderation in growth,
the communications and multimedia industry is expected to
nevertheless be able to resist a slowdown, although it is not
impervious to negative growth. In terms of services today,
the communications and multimedia industry in Malaysia
is seen to provide about 90% of basic services instead of
higher value-added premium services. As “basic” equates
“necessity”, users will likely hold on to their subscription or
lines, but perhaps be more cautious on their usage. Under
these circumstances, premium services may be affected,
but this again depends on the services themselves. As
an example, instead of going to the cinema with family or
friends, consumers may well turn to a different form of
entertainment platform such as pay-TV or mobile TV as a
cheaper alternative.
GOING FORWARD – AN OUTLOOK
Today, in order to manoeuvre across the global financial
crisis and its reverberating effects, Malaysia is continuously
monitoring its monetary and fiscal policy. Additionally, the
sky-high fuel prices have also driven many Malaysians to
opt for online services on a planed permanent basis such
as their daily banking and business matters. Although fuel
prices moderated towards end-2008, there is a need for
continuous strategic plans for the future such as costsaving and system efficiencies that can contribute towards
long-term sustainable national economic growth. For
example, the planned and funded High Speed Broadband
(HSBB) project is expected to see the communications and
multimedia industry contributing an additional 1% to the
Gross Domestic Product (GDP) growth by end-2010.
building blocks for enhanced growth prospects.
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CHAPTER 7
CHAPTER 7
GOING FOWARD – AN OUTLOOK
(Continued)
GOING FOWARD – AN OUTLOOK
(Continued)
The convergence of television, Internet and telephone is
expected to continue, perhaps at an accelerated pace.
Malaysian service providers are already working to reap
its benefits and t o safeguard or enhance their market
share. For example, broadcasters are working with telcos
to put each other’s expertise together to offer Free-to-Air
TV over non-traditional platforms such as mobile devices
and broadband that can be accessed anywhere. This in
turn creates new advertising avenues. However, these new,
non-traditional platforms still need to be fine-tuned in many
aspects, such as open delivery systems, standards and
security, apart from advertising formats that can be shared
or conveyed across more, if not all, forthcoming delivery
channels. There are also consumer-centric innovations to
capture those eyeballs through new ways of infotainment
which offers more interactivity and personalisation, on top
of mobility.
Competitive pressures are ever present. Given this,
Malaysian telcos are constructively working their way around
it, such as leveraging on the content expertise of others in
the new Mobile Virtual Network Operator (MVNO) service,
recently introduced in Malaysia. Other similar cases in the
wired platform are the mobile and IPTV services.
As supply is expected to increase significantly in the critical
area of high-speed communications and services, the
appropriate levels of demand need to be generated as well.
Content and applications development has received further
funding – up from RM20 million earlier to RM50 million in
2008 – through the Networked Content Development Grant
(NCDG) Programme. This will catalyse the creation of a rich
content applications environment, which is also in line with
the vision outlined in the National Policy Objectives. Apart
from the national-level MSC initiatives and the e-Government
projects, operators such as Maxis, Celcom and DiGi have
also launched a number of developer programmes. At the
individual level, consumers also need to educate themselves
on the online do’s and don’ts, aside from knowing what online
services are available to them. In addition, media literacy is
also important.
The tightening of security and the monitoring of cyber-threats
are also expected to take centre stage in 2009 and beyond.
Internet, online gaming or e-mail addiction is the new social
ill, and there must be enough safeguards to prevent users
from going astray. For example, vigilance against Internet
café abusers will help guard the young and the uninitiated
against online perils, in addition to providing guidelines
on parental control. In most of these cases, prevention
is better than cure. In the corporate world, providing
proactive network security would cost far less than reacting
to network security breaches, since, when a breach has
happened, damage would have been inflicted. Although an
Internet Service Provider (ISP) is required by law to provide
some form of network protection for its subscribers, the
onus is still on the individual user himself or herself in being
vigilant against cyber-threats. An example will be in the
regular updating and upgrading of virus protection software
and other software against malware. On a broader scale,
the Government has recently called for a comprehensive
legal framework to combat cybercrime.
Information on the go is happening through wireless
broadband, which is gradually gaining popularity, although
the still nascent 3G/HSDPA technology and the recently
introduced WiMAX offerings are just the foretaste of more
things to come. Although the rollout of service offerings was
done in relatively small incremental steps especially in niche
markets, the new services, nevertheless, offer connections
to areas and people where previously communications
services were either not available or limited.
This sharing strategy pertains to both the Government industry
development and regulatory aspects where, in our national
aspirations to build a secure network, it will require domestic
and international alignment and collaboration. Similarly, there
is also requirement for monitoring and curbing the growth
of black markets, developing standards in an evolving multiplatform world, promoting open access to submarine cable
landing stations and international gateways, and cautiously
planning and preparing the switchover to digital television.
The commonality lies in sharing through leveraging on the
expertise of others, while sharpening your own so as to be
able to be mutually beneficial. Going forward, these efforts
will result in an overall sustainable national competitiveness
in an increasingly globalising economic environment. l
At present, SKMM sees opportune timing to fully implement
the strategies of the MyICMS 886. This is carried out in
collaboration with other Government agencies and the
private sector, including the licensees under the CMA 1998
and other related industries such as manufacturing and
consumer electronics, segment vendors and the public.
End users are the ultimate beneficiaries of efficient and
effective communication products and services, and are
an influencer on the take-up of fast-paced services. Today,
there is a need for the development of enhanced services,
including premium services, that will assist communications
to reach the next level of supply and adoption in the country.
Thus, to complement the Governments and industry
efforts in striking this balance between basic and premium
services, a framework for monitoring and assessment of
these services is required to assist in adapting to changes
in the environment. This is expected through the accounting
separation programme currently being worked on by SKMM.
Now is the best time for a review – to examine what is in
the near future to enable us to tackle the more challenging
times ahead as well as to work towards the preparation,
development and execution of plans that will gear us towards
being ready for the good times in an upturn.
In tough times, even well-known brands may lose ground if
their strategies are unclear, execution of plans is poor, or
if there is any slack in monitoring their quality of service.
Vendors also have to ensure their customers are given
the best to win their loyalty, in order to stay in business.
By doing so, they can be assured that their business will
flourish when good times return. It is about going back to
basics, but in the communications and multimedia industry,
vendors have to go the extra mile, in view of the rather
unrelenting pace of transformation brought about by
convergence. For example, service providers not only need
to build sound infrastructure, but also need to collaborate
with others to tap the infrastructure of others, to ensure
good service delivery to consumers. They should include
consumer-centric services that will create a marketable
value proposition, or have sound plans through collaboration
and to execute plans with trusted parties who can deliver in
favourable and adverse times.
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PERFORMANCE
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APPENDIX ONE
LIST OF INDIVIDUAL LICENSEES
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
Airzed Broadband S/B
ARL HomeComm S/B
(formerly known as ARL Home Communications S/B)
Asiaspace S/B
(formerly known as Asiaspace Dotcom S/B)
Asiaspace WiMAX S/B
AtlasONE S/B
(formerly known as Kasturi Capital S/B)
Baycom S/B
Celcom (Malaysia) Bhd
(formerly known as Celcom (Malaysia) S/B)
Celcom Mobile S/B
(formerly known as TM Cellular S/B)
Celcom Timur (Sabah) S/B
Celcom Transmission (M) S/B
Clear-Comm S/B
Common Tower Technologies S/B
D’Harmoni Telco Infra S/B
Danawa Resources S/B
Desabina Industries S/B
DiGi Telecommunications S/B
DTRS Consortium S/B
eB Technologies (M) S/B
Electcoms Wireless S/B
Fiberail S/B
Fibrecomm Network (M) S/B
GTC Global S/B
(formerly known as Gapura Technologies S/B)
Global Transit Communications S/B
Go Lightspeed Broadband S/B
(formerly known as Accos Communications S/B)
I-R&D S/B
Infra Quest S/B
IP Mobility S/B
(formerly known as Ikram Saksama S/B)
iZZinet S/B
(formerly known as Mobif Wireless Broadband S/B)
Jaring Communications S/B
(licence transferred from MIMOS Bhd)
Kedah ICT Holdings S/B
Konsortium Jaringan Selangor S/B
Macro Lynx S/B
Malaysia Airports (Sepang) S/B
Maxis Broadband S/B
Maxis International S/B
Maxis Mobile S/B
Maxis Mobile S/B
(licence transferred from Prismanet (M) S/B)
Maxis Mobile Services S/B
(formerly known as Malaysian Mobile Services S/B)
MEASAT Satellite Systems S/B
(formerly known as Binariang Satellite Systems S/B)
Melaka ICT Holdings S/B
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
74.
75.
76.
77.
78.
79.
80.
APPENDIX ONE:
Mobikom S/B
MyKRIS Asia S/B
NasionCom S/B
(formerly known as High-Tech Electronics S/B)
OBNET S/B
(formerly known as Intelligent Edge Solutions S/B)
Optical Communication Engineering S/B
Packet One Networks (M) S/B
(formerly known as MIB COMM S/B)
V-Telecoms Bhd
(formerly known as Paneagle Communications S/B
PDC Telecommunications Services S/B
Perak Integrated Network Services S/B
Perlis Comm S/B
Pernec Paypoint S/B
(formerly known as TM Payphone S/B)
Rangkaian Minang (NS) S/B
Realm Energy S/B
REDtone – CNX Broadband S/B (
formerly known as CNX Solutions S/B)
REDtone Marketing S/B
Sacofa S/B
Sapura Research S/B
Sarawak Information Systems S/B
Scopetel S/B
Sector Solutions S/B
Segi Maju Consortium S/B
Setia Haruman S/B
Smart Digital Communications Bhd
(formerly known as Smart Multimedia
Technology S/B)
Stealth Solutions S/B
Suidar Elektronik S/B
Technology Park Malaysia Corporation S/B
Telekom Malaysia Bhd
TIME Reach S/B
TIME Sat S/B
Touch Matrix S/B
Touch Mindscape S/B
TT dotCom S/B
U Mobile S/B
(formerly known as MiTV Networks S/B)
U Television S/B
(formerly known as U Telecom Media Holdings S/B
and MiTV Corporation S/B)
(licence transferred from Grafimatix S/B)
VDSL Network S/B
Wellcom Communications (M) S/B
Wi-Net Technology S/B
Y-Max Infra S/B
Y-Max Networks S/B
(formerly Known as Bizsurf (M) S/B)
Yiked Bina S/B
Network Service Provider (NSP) Individual Licensee
1. Airzed Broadband S/B
2. AIMS Data Centre S/B
(formerly known as Applied Information Management
Services S/B)
3. ARL HomeComm S/B
(formerly known as ARL Home Communications S/B)
4. Asia Telecommunications (M) S/B
5. Asiaspace S/B
(formerly known as Asiaspace Dotcom S/B)
6. Asiaspace WiMAX S/B
7. AtlasONE S/B
(formerly known as Kasturi Capital S/B)
8. Baycom S/B
9. Celcom (Malaysia) Bhd
(formerly known as Celcom (Malaysia) S/B)
10. Celcom Mobile S/B
(formerly Known as TM Cellular S/B)
11. Celcom Timur (Sabah) S/B
12. Celcom Transmission (M) S/B
13. Centennial Gateway S/B
14. Clear-Comm S/B
15. Patimas Outsourcing Services S/B
(formerly known as Cordoda Corporation S/B)
16. Danawa Resources S/B
17. DiGi Telecommunications S/B
18. DTRS Consortium S/B
19. eB Technologies (M) S/B
20. Electcoms Wireless S/B
21. Equant Services Malaysia S/B
22. Fiberail S/B
23. Fibrecomm Network (M) S/B
24. Fristor.com S/B
25. FSBM Net Media S/B
26. GTC Global S/B
(formerly known as Gapura Technologies S/B)
27. GITN S/B
28. Global Transit Communications S/B
29. Go Lightspeed Broadband S/B
30. Heitech Padu Bhd
31. I-R&D S/B
32. IP Mobility S/B
33. ITG Communications S/B
34. iZZinet S/B
(formerly known as MoBif Wireless S/B)
35. Jaring Communications S/B
(licence transferred from MIMOS Berhad)
36. Kedah ICT Holdings S/B
37. KKIPC S/B
(formerly known as K.K.I.P Communications S/B
38. Macro Lynx S/B
39. Magxo S/B
40. Malaysia Airports (Sepang) S/B
41. Maxis Broadband S/B
42. Maxis International S/B
43. Maxis Mobile S/B
(licence transferred from Prismanet (M) S/B)
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
74.
75.
76.
77.
78.
79.
80.
81.
82.
83.
84.
Maxis Mobile Services S/B
(formerly known as Malaysian Mobile Services S/B)
MCM Wireless S/B
MEASAT Satellite Systems S/B
(formerly known as Binariang Satellite Systems S/B)
Mobikom S/B
MyKRIS Asia S/B
NasionCom S/B
(formerly known as High-Tech Electronics S/B)
NTT MSC S/B
OBNET S/B
(formerly known as Intelligent Edge Solutions S/B)
Optical Communication Engineering S/B
Packet One Networks (Malaysia) S/B
(formerly known as MIB COMM S/B)
V-Telecoms Bhd
(formerly known as Paneagle Communications S/B)
Reach Bandwidth Services Malaysia S/B
Realm Energy S/B
REDtone Marketing S/B
REDtone-CNX Broadband S/B
(formerly known as CNX Solutions S/B)
Sacofa S/B
Sapura Research S/B
Sarawak Information Systems S/B
Scopetel S/B
Sector Solutions S/B
Segi Maju Consortium S/B
Smart Digital Communications Bhd
(formerly known as Smart Multimedia
Technology S/B)
Suidar Elektronik S/B
Technology Park Malaysia Corporation S/B
Telekom Malaysia Bhd
Telshine S/B
TIME Sat S/B
TM Net S/B
Touch Mindscape S/B
TT dotCom S/B
Tune Talk S/B
U Mobile S/B
(formerly known as MiTV Networks S/B)
U Television S/B
and MiTV Corporation S/B)
(licence transferred from Grafimatix S/B)
VADS Bhd
(formerly known as VADS S/B)
VDSL Network S/B
Wellcomm Communications (M) S/B
Wi-Net Technology S/B
XOX Com S/B
Y-Max Infra S/B
Y-MAX Networks S/B
(formerly known as Bizsurf (M) S/B)
Network Facilities Provider (NFP) Individual Licensee
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159
APPENDIX TWO
LIST OF CLASS LICENSEES
APPENDIX ONE:
BFM Media S/B (BFM)
(formerly known as Bristol Avenue S/B)
CH-9 Media S/B
(formerly known as Medanmas S/B) (TV9)
Husa Network S/B (Manis FM)
Institut Kefahaman Islam Malaysia (Radio IKIM)
ISY Holdings S/B (Capital FM)
Kristal Harta S/B (Cats Radio)
Maestra Broadcast S/B (MIX FM) & (ERA)
Malaysia Airports (Sepang) S/B (Fly FM)
Measat Radio Communications S/B (MY), (HITz) &
(Light & Easy)
Metropolitan TV S/B (Metro Vision) (8TV)
MOL Media S/B
Natseven TV S/B (NTV7)
Network Guidance S/B (FINE Network)
Perfect Excellence Waves S/B
(transferred from Titian Sebaran S/B) (Sinar FM)
Radio Lebuhraya S/B (THR) – THR Raaga and THR Gegar
Radio Wanita Bhd (One FM)
Rimakmur S/B (Suria FM)
Sistem Televisyen Malaysia Bhd (TV3)
STAR Rfm S/B (988 FM and Red FM)
(formerly known as Radio Rediffusion S/B) (RfM) & (Redi.FM)
Suara Johor S/B (Best 104)
Synchrosound Studios S/B (HotFM)
TM Net S/B
U Television S/B
and MiTV Corporation S/B) (licence transferred
from Grafimatix S/B)
Applications Service Provider (ASP) Class Licensee
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
3B Vision International S/B
Ace Serve Anaconda S/B
Ace Touchstone S/B
Achi Jaya Communications S/B
Advance Able Network S/B
Advanced Mobile Services & Solutions S/B
Ahead Mobile S/B
AIMS Data Centre S/B
Airtime Management & Programming S/B
Airzëd Networks S/B
Aliya Technologies S/B
Antechnic Systems S/B
ARL HomeComm S/B
ARN Technology S/B
Arthatek Resources Corporation S/B
Asia Media S/B
AsiaEP Bhd
Asiaspace WiMax S/B
Aspati S/B
Aspire Technologies S/B
Avenue Telecommunications S/B
Avio Telecommunication S/B
Avo Technology S/B
Axis Technologies Solutions (M) S/B
Azea Communications S/B
B.D Call S/B
Bakti Anggun S/B
Basic Depth S/B
Baycom S/B
Best Debut S/B
Bestlelong.com S/B
Bimbit.com S/B
Biox Carbon Malaysia S/B
Bizsurf MSC S/B
Boeing Aerospace (M) S/B
Brightnet System S/B
Brilliant Communications S/B
Broad-Line Corporation S/B
BT Systems (Malaysia) S/B
Callplus Telecommunications S/B
Capable Titan S/B
Carlsberg Marketing S/B
CCI Technology S/B
Celcom (Malaysia) Bhd
Celcom Mobile S/B
Celcom Technology (M) S/B
Celcom Timur (Sabah) S/B
Centennial Gateway S/B
Centennial Global Communication S/B
Centurise Tech S/B
Chatgate Communications S/B
Clear-Comm S/B
Cmaxzone Technology S/B
CMRS Trunk Radio S/B
56. COM2U S/B
57. Community Shapers S/B
58. Commzgate S/B
59. Compurex Corporation (M) S/B
60. Computer Systems Advisers (M) S/B
61. Confident Communications S/B
62. Connection Fidelity S/B
63. Consensus Network S/B
64. Cool Mobile S/B
65. Cosmos Discovery S/B
66. Crazy2U Dotcom S/B
67. CTAPPS Technology S/B
68. Custommedia S/B
69. D Lloy Network
70. Da Fa Lottery Information Services
71. Danawa Resources S/B
72. Dapat Vista (M) S/B
73. Data Zone S/B
74. Datapower S/B
75. Dencomm Sales & Services S/B
76. Didadee S/B
77. DiGi Telecommunications S/B
78. Domino Application System S/B
79. Dream Chorus S/B
80. DSA Alliance S/B
81. Dubaitech Marketing S/B
82. Duo A Synergy (M) S/B
83. DVM Intellisource S/B
84. E-Gal Corporation S/B
85. E-Room S/B
86. Econet Corridor S/B
87. Edgecomms S/B
88. Elanet S/B
89. Electcoms Bhd
90. Emerge Software Solutions (M) S/B
91. Equant Services Malaysia S/B
92. Ericsson (Malaysia) S/B
93. ERP Twenty One S/B
94. ESKY Holdings S/B
95. ETA Network Systems S/B
96. Etnet.com S/B
97. Everest Mobile S/B
98. Everest Web S/B
99. Everworks Solutions (M) S/B
100. Excel Commerce Solutions S/B
101. Exticom S/B
102. Extiva Communications S/B
103. Extreme Broadband S/B
104. EZNET S/B
105. Fast Line Marketing S/B
106. Fibrecomm Network (M) S/B
107. Firatel S/B
108. First Click S/B
109. First Logix S/B
110. Focus Spirit S/B
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
Content Application Service Provider (CASP) Individual Licensee
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161
Applications Service Provider (ASP) Class Licensee (continued)
111. Forest Interactive S/B
112. Forte Tech Solutions S/B
113. Foundermall Dot Com S/B
114. Frenclub Mobile S/B
115. Fristor Communications S/B
116. Frizzhub VOB S/B
117. FSBM Net Media S/B
118. Ftone S/B
119. Function Ramslink S/B
120. Funz Mobility S/B
121. Gang Mobile S/B
122. GTC Global S/B
(formerly known as Gapurna Technologies S/B)
123. Gateway Option S/B
124. Gen-X Technology S/B
125. Genesis Voiz Systems S/B
126. Genusis Consultancy S/B
127. Gerakan Padu S/B
128. GITN S/B
129. Global Forway S/B
130. Global Surf S/B
131. Global Telelinks (M) S/B
132. Global Tone S/B
133. Global Transit Communications S/B
134. Global Transit Malaysia S/B
135. Golden Digit Resources S/B
136. Green Web S/B
137. Hasyon Teknik S/B
138. Heitech Padu Bhd
139. Hitz Mobile S/B
140. Horizon Multimedia S/B
141. I-Office 2 S/B
142. I-Way Network S/B
143. IBM Malaysia S/B
144. IdotTV S/B
145. IGMobile Holdings S/B
146. Ikogo S/B
147. Imsa Technology S/B
148. iNavigate S/B
149. Info-Age Technology S/B
150. Infolient S/B
151. Information Network Services S/B
152. Infosphere S/B
153. Infra-Info Telecommunications S/B
154. Innatech S/B
155. Inobel S/B (formerly known as UPE Systems
Services S/B)
156. Intellectual Learning S/B
157. Intelligent Essence S/B
158. Inter-Touch (Malaysia) S/B
159. Intereach Communication S/B
160. Ionnex S/B
161. IP Innovation S/B
162. IPSAT S/B
163. IPTEL S/B
164. iRepublics.com S/B
165. Iridea (M) S/B
166. iSCALAR HT Technology S/B
167. Isentric Media S/B
168. iSentric S/B
169. ITG Telecommunications S/B
170. ITX Marketing S/B
171. Izzinet S/B
172. J&C Pacific S/B
173. Jaring Communications S/B
174. JAS Mobile Solutions S/B
175. JNI System S/B
176. Jobmobile Service Centre (M) S/B
177. JP Com S/B
178. K-Amal Technologies (M) S/B
179. Karisma Electronic Systems S/B
180. KDDI Malaysia S/B
181. Kist Prepaid Retail S/B
182. KKIPC S/B
183. Kotaemas Edaran S/B
184. Kurnia Insurans (M) Bhd
185. Langkah Teknologi S/B
186. Lasskar System Technologies S/B
187. Lavish Team S/B
188. Level 1 Communications (M) S/B
189. Long Tail S/B
190. Lotus West S/B
191. Lovelink Connections S/B
192. M-Mode Mobile S/B
193. M-Village S/B
194. M-Village Solutions S/B
195. M3 Technologies (Asia) Bhd
196. Macro Kiosk Bhd
197. Macro Lynx S/B
198. MAL-TEL Communications S/B
199. Malaysian Allied Mobile S/B
200. Marcobuzz Interactive S/B
201. Matrix Internet & Wireless S/B
202. Matrix Tech Management S/B
203. Maxis Broadband S/B
205. Maxis Mobile Services S/B
206. Maxlink Technology S/B
207. Mboard Media S/B
208. MCOM Media Technology S/B
209. MCOM Messaging S/B
210. MDOT Marketing S/B
211. Media Xch S/B
212. Mediacliq S/B
213. Mediaconcise S/B
214. Mediaring S/B
215. Megamobile Solutions S/B
216. Meghna Telecommunication S/B
217. Melewar International S/B
218. Merchantrade Asia S/B
APPENDIX TWO:
219. Meridian Surveys (M) S/B
220. Metabolix (M) S/B
221. Mexcom S/B
222. Mikimoto Communications S/B
223. Mikro Oasis S/B
224. MNC Consulting S/B
225. MNC Wireless S/B
226. Mobif Global S/B
227. Mobile Communications Media S/B
228. Mobile Entertainment (M) S/B
229. Mobile FPX S/B
230. Mobile Management Solution S/B
231. Mobile Money International S/B
232. Mobile Multimedia S/B
233. Mobile Touchetek S/B
234. Mobileexec S/B
235. Modern Solution S/B
236. Moore Nasser Infra S/B
237. Move Success S/B
238. MRCB Technologies S/B
239. MTL E-Solutions S/B
240. MTN Solution S/B
241. Multimedia Interactive Technologies S/B
242. Murasu Communications (Malaysia) S/B
243. Mutual Digital S/B
244. My Lucky Mobile S/B
245. Mypressto.Com S/B
246. N-Visio S/B
247. N-Wave Telecoms (Malaysia) S/B
248. N2N Connect Bhd
249. Nano Media Technology S/B
250. Nassion Systems (M) S/B
251. Newszapped Media (M) S/B
252. Nex-Ge Technologies S/B
253. Next G Telecommunication (M) S/B
254. Next Telecommunications S/B
255. Next Wave Communications S/B
256. Nextnation Network S/B
257. NFAB Services Holdings (M) S/B
258. NGC Systems S/B
259. Nglobe S/B
260. NGNTalk (M) S/B
261. Nokia (M) S/B
262. NTT MSC S/B
263. Nukilan Mahir S/B
264. OBNET S/B
265. Ocean Violet S/B
266. Optical Communication Engineering S/B
267. ORBCOMM Satellite Malaysia S/B
268. Otelo Telecommuniactions S/B
269. Ourcom S/B
270. P1.Com S/B
271. Packet One Networks (Malaysia) S/B
(formerly known as MIB Comm S/B)
272. Pacmee S/B
273. Pacnet Global (M) S/B
274. Pacnet Internet (Malaysia) S/B
275. Pan Malaysian Pools S/B
276. V-Telecoms Bhd
(formerly known as Paneagle Communications S/B)
277. Paximej (M) S/B
278. Paycomm S/B
279. Pennytel Communications S/B
280. Penzpages S/B
281. Pernec Paypoint S/B
282. Persada Digital S/B
283. Persiasys S/B
284. PG Communications S/B
285. Phenomenal UAM S/B
286. Planworth Communications (M) S/B
287. Platronix S/B
288. Purple Gum S/B
289. Qasima Technology S/B
290. Questnet (M) S/B
291. Radiant Corridor S/B
292. Radius-ED S/B
293. Rafais (M) S/B
294. Reach Bandwidth Services Malaysia S/B
295. Reapfield Technology S/B
296. Redtone Mobile Services S/B
297. Redtone Mytel S/B
298. REDtone Telecommunications S/B
299. REDtone-CNX Broadband S/B
300. Rentak Setia S/B
301. Responsive and Directive Media Malaysia S/B
302. Ring 8 (Malaysia) S/B
303. Sacofa S/B
304. Sadiatec S/B
305. Samen Trunked Radio S/B
306. Savvis Malaysia S/B
307. Scan Associates Bhd
308. Schlumberger Wellog (M) S/B
309. Sedania Corporation S/B
310. Sellreenz Communications S/B
311. Serting Com S/B
312. SG Communications (M) S/B
313. Shanco Rich S/B
314. Silkron Technology S/B
315. Skyetel Malaysia S/B
316. Skyline Theme S/B
317. SMS Biz S/B
318. SMS91.Com S/B
319. Softwareone S/B
320. Solution System Touchmedia S/B
321. Sphinx Fusion S/B
322. Startone Telecommunication S/B
323. Suitelab Technology S/B
324. Sunway Digital Wave S/B
325. Super Call S/B
326. Suprima Holdings S/B
APPENDIX TWO:
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
162
163
APPENDIX TWO:
327. Sybase 365 Asia S/B
328. Sybase Software (M) S/B
329. Symphonet S/B
330. Synergycentric Teleservices S/B
331. T-Force Technology S/B
332. Talk Eight Communications S/B
333. Tam Tam Asia Sdn Bhd
334. Tanla Mobile Malaysia S/B
335. Tappo Tappi S/B
336. Tec-Surf Technologies S/B
337. Techexpert Solutions S/B
338. Telcom Communication S/B
339. Telcom Research (M) S/B
340. Teleinfo Technology & Services S/B
341. Telekom Applied Business S/B
342. Telekom Malaysia Bhd
343. Teletouch Communications S/B
344. Teliti Computers S/B
345. Telshine Communication S/B
346. Telshine S/B
347. Textphon (M) S/B
348. Threesixty Technologies S/B
349. TIME Reach S/B
350. TM Info-Media S/B
351. TPM IT S/B
352. TraderInAsia S/B
353. Tranglo S/B
354. Trio Mobile S/B
355. Trylah S/B
356. TT dotCom S/B
357. Tune Talk S/B
358. Two Tale Marketing S/B
359. Two-P Technology (M) S/B
360. U Mobile S/B
APPENDIX TWO:
361. Uberfusion S/B
362. Uncover Technology S/B
363. VADS Bhd
364. Vast Meridian S/B
365. Venus Telecommunication S/B
366. Verizon Communications Malaysia S/B
367. Viztel Technologies S/B
368. Voicestar Communications S/B
369. Voiztech Communications S/B
370. Vox Emas Communications S/B
371. Wavecall Malaysia S/B
372. West Infinity (M) S/B
373. WI Network S/B
374. Widenet Distributor S/B
375. Wizio S/B
376. Wokbyte S/B
377. Wonderful Telecommunications S/B
378. World Marketplace S/B
379. Worldtone (Malaysia) S/B
380. X-Pax Telecommunication S/B
381. X-Wave Solutions S/B
382. Xintel S/B
383. Xota Communications S/B
384. XOX Com S/B
385. Xpedite Systems Incorporated (Malaysia) S/B
386. XTC Solutions S/B
387. Y-Max Networks S/B
(formerly known as Bizsurf S/B)
388. Yellotext S/B
389. Yesnet Telecommunication S/B
390. Yomobile S/B
391. Zed Mobile Malaysia S/B
392. Zeus3 S/B
APPENDIX TWO:
1.
2.
3.
4.
5.
6.
7.
8.
Network Facilities Provider (NFP) Class Licensee
Communications and Satellite Services S/B
Electcoms Bhd
Extreme Broadband S/B
Hasyon Terknik S/B
MAL-TEL Communications S/B
ORBCOMM Satellite Malaysia S/B
9.
10.
11.
12.
13.
14.
15.
PersiaSYS S/B
Samen Trunk Radio S/B
Schlumberger Wellog (M) S/B
Serting Com S/B
Siva Temple Registered
Textphone (M) S/B
Widenet Distributors S/B
APPENDIX THREE
Content Applications Service Provider (CASP) Class Licensee
1.
2.
3.
4.
5.
6.
7.
Berjaya Georgetown Hotel (Penang) S/B
Bukit Jambul Hotel Development S/B
Crowne Plaza Mutiara Kuala Lumpur
Digistar Rauland MSC S/B
Greenearth Technovations S/B
Komtar Hotel S/B
Metroplex Holdings S/B
8.
9.
10.
11.
12.
13.
One World Hotel S/B
Pantai Dalit Beach Resort S/B
PJ Hotels and Resorts
Subang Jaya Hotel Development S/B
Tanjung Aru Hotel S/B
Traders Hotel Kuala Lumpur S/B
APPENDIX FOUR
Network Service Provider (NSP) Class Licensee
1.
2.
3.
4.
5.
6.
7.
8.
Boeing Aerospace (M) S/B
Communications and Satellite Services S/B
Electcoms S/B
Extreme Broadband S/B
Hasyon Teknik S/B
MAL-TEL Communication S/B
9.
10.
11.
12.
13.
14.
15.
ORBCOMM Satellite Malaysia S/B
Persia SYS S/B
Samen Trunk Radio S/B
Schlumberger Wellog (M) S/B
Serting Com S/B
Textphone (M) S/B
Widenet Distributors S/B
1.
Pos Malaysia Bhd
Postal Service Provider
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
164
165
APPENDIX FIVE
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
ABX Express (M) S/B
Aero Line Services S/B
Airpak Express (Ipoh) S/B
Airpak Express (M) S/B
Airpak Express (Penang) S/B
Airway Express Servis
AMC Express Mail S/B
Americaras Express Services
Arahbumi Logistik S/B
Avanti Worldwide Express S/B
AYJ Courier Service S/B
B.P. Express Services S/B
B.P. Ambulatory S/B
Batu Pahat Express Service
BBB Express (M) S/B
BPL Logistic S/B
Cahaya Kilat (M) S/B
Cen Worldwide S/B
Cheras Jaya Enterprise
Chosen Express S/B
City Link Air Cargo S/B
City Link Express (M) S/B
City Link Logistics S/B
(formerly known as City Link Parcel and Card
Service S/B)
Consol Express Service S/B
Customise Link Express S/B
D-TWO Services S/B
D.C. Express
Daily Courier Express
Daylight Express Services
DHL Air Freight Forwarder S/B
DHL Worldwide Express S/B
Dropzone (M) S/B
Epic Fleet Courier (M) S/B
Era Baru Business System S/B
Explore Network Solutions (M) S/B
Express Systems Sabah
Federal Express (M) S/B
Federal Express Brokerage S/B
Felda Transport Services S/B
First Letter Despatch Service
First Nationwide Courier S/B
Flash Jordan Courier S/B
Fontello Secretarial Services
GBS Express Services S/B
GD Express S/B
HangWang S/B
HMR Worldwide Express S/B
APPENDIX FIVE:
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
74.
75.
76.
77.
78.
79.
80.
81.
82.
83.
84.
85.
86.
87.
88.
89.
90.
91.
92.
93.
Hyjet Express S/B
Interlink Access Services S/B
INX Logistics (M) S/B
J.N.E. Express S/B
J’Mhelleys Carrier (M) S/B
JB Express System S/B
Kangaroo Worldwide Express (M) S/B
Klach Courier Services (M) S/B
KNZ Mail Services S/B
KTM Distribution S/B
LBC Mabuhay (M) S/B
Link Dual Express (M) S/B
LMA Express Couriers
Lymans Technologies S/B
M & A Express S/B
M.L.H Services S/B
Matang Logistics S/B
Metro Post Courier S/B
Nationwide Express Courier Services Bhd
Natsons Despatch Services
Norman Courier Service S/B
NZA Logistics (M) S/B
OBS Corporate Services (M) S/B
Officeserve (M) S/B
(formerly known as Despatch 2000 S/B)
One Express Courier S/B
Orami S/B
Overseas Courier Service (M) S/B
Pacific Express Worldwide S/B
Pack-Man Services S/B
PAKARGO Logistic Distribution Warehousing S/B
Pro Office Solutions S/B
PSH Express S/B
(formerly known as Gerak Kawal S/B)
Public Courier (M) S/B
QNS Services
Quantum Express Logistics S/B
Quick Courier (International) S/B
Rafrim S/B
RNZ Express S/B
SA Kargo S/B
Securexpress Services S/B
Securior (Malaysia) S/B
Skymail Express Worldwide S/B
Skynet Worldwide (M) S/B
Speed Express Services
SR Courier S/B
(licence transferred by SR Express S/B)
Stork Express (M) S/B
Courier Service Providers (continued)
94. Successline (M) S/B
95. Sunda Worldwide S/B
96. Sure-Reach Worldwide Express S/B
97. Syarikat Maju Emas Teknologi S/B
98. Syarikat O.B.S
99. T&T Travel Cargo S/B
100. Tasco Express S/B
101. The Senders
102. TNT Express Worldwide (M) S/B
103. TNTT Packages Express S/B
104. Trans-Express Courier S/B
105. Transforma S/B
106. Tri-K Worldwide Express (M) S/B
107. United Express Delivery S/B
108. United Parcel Service (M) S/B
109. Verifield (M) S/B
(licence transferred by Beukhen International S/B)
110. Wan & Zul Marine Supply & Services S/B
111. WEB Courier S/B
112. World Courier (Malaysia) S/B
113. YME Express S/B
APPENDIX SIX
Digital Signature Certification Authorities
1. Digicert S/B
2. MSC Trustgate Com S/B
Courier Service Providers
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
166
167
APPENDIX SEVEN
List of Community Broadband Libraries
APPENDIX SEVEN:
State / District
State / District
Community Broadband Libraries
KELANTAN (continued)
Tumpat
33.PD Kg Ketil, Pengkalan Kubor, Tumpat
Gua Musang
34.PD Kg Jerek, 18300 Gua Musang
Kuala Krai
Besut
35.PD
36.PD
37.PD
38.PD
39.PD
Dungun
40.PD Kg Balai Besar, Batu 48, Rantau Panjang, 23100 Dungun
41.PD Felda Kerteh 3, Ketengah Jaya, 23300 Dungun
Marang
42.PD Kg Tasik, Bukit Payung, 21400 Marang
43.PD Kg Alur Limbat, 21400 Marang
44.PD Kg Tok Amat, Merchang, 21610 Marang
KEDAH
Sik
45.PD Felda Teloi Timur, 09300 Kuala Ketil
Community Broadband Libraries
MELAKA
Alor Gajah
1. PD
2. PD
3. PD
4. PD
5. PD
JOHOR
Pontian
6. PD Mukim Api-Api d/a Balai Raya Kawasan 1, Mukim Api-Api, 82000 Pontian
7. PD Kg Puteri Menangis, Lot 1163, Mukim Sg. Pinggar, Bebut, 82100 Pontian
8. PD Parit Bilal Rembah, 82000 Pontian
Kota Tinggi
9. PD Kampung Ulu Tiram, Mukim Plentong, Ulu Tiram, 81800 Kota Tinggi
NEGERI SEMBILAN
Jempol
SELANGOR
10.PD
11.PD
12.PD
13.PD
14.PD
15.PD
16.PD
17.PD
Kg
Kg
Kg
Kg
Kg
Seri Pengkalan, 78000 Alor Gajah
Kuala Sungga, Mukim Tebong, 76460 Tebong, Melaka
Bukit Nangga, 78000 Alor Gajah
Paya Datuk, Taman Paya Datok, 78000 Alor Gajah
Lubok Redan, 78300 Masjid Tanah
Lui Selatan 1, d/a Felda Lui Selatan 1, 72120 Jempol
Felda Palong 5, 73430 Gemas
Felda Palong 12, 73430 Gemas
Rumah Rakyat Kg Serting Tengah, Batu Kikir, 72200 Bahau
Kg Serting Ulu, Batu Kikir, 72200 Bahau
Taman Tunku Puan Chik, 72100 Bahau
Kg Bukit Kerdas, Batu Kikir, 72200 Bahau
Kg Sri Rompin, 73500 Jempol
PAHANG
Maran
19.PD
20.PD
21.PD
22.PD
Pekan
23.PD Kg Dusun, 26000 Pekan
KELANTAN
Jeli
24.PD Kg Gemang, Air Lanas, 17700 Jeli
25.PD Kg Sungai Satan, Air Lanas, 17700 Jeli
26.PD Kg Batu Melintang, 17520 Jeli
Bukit Kening, 28100 Chenor
Pekan Awah, 28330 Maran
Kg Pantai Chenor, 28100 Chenor
Kg Senggora, d/a Balai Seni JKKK Kg Senggora, 26500 Maran
27.PD Kg Pangkal Petai Dalam, Kemuning, 18500 Machang
Machang
28.PD Kg Pangkal Gong, PT 983 Mukim Gading Galoh, Pulai Chondong,
18500 Machang
Bachok
29.PD
30.PD
31.PD
32.PD
Kg
Kg
Kg
Kg
Wakaf Zin, d/a Kompleks Penggawa Kg Wakaf Zin, Tawang, 16020 Bachok
Telong, d/a Kompleks Penggawa Telong, 16310 Bachok
Permatang Piah, Mahligai, 16300 Bachok
Chat Bekelam, 16300 Bachok
Kg Sungai Sam, Dabong, 18000 Kuala Krai
Kg Kuala Geris, Dabong, 18000 Kuala Krai
RPT Chuchuh Puteri, 18000 Kuala Krai
Kg Keruak, Hulu Jertih, 22010 Besut
Kg Bukit Tanah, 22200 Besut
46.PD Kg Padang Durian, d/a Pejabat ADUN Sungai Tiang, Kg Padang Durian,
Sungai Tiang, 06760 Pendang
47.PD Kg Dato’ Syed Ahmad, Padang Peliang, 06750 Pendang
Pendang
48.PD Kg Charok Kudung, Mukim Guar Kepayang, 06700 Pendang
49.PD Kg Titi Akar, Watt Kg Titi Akar, 06750 Pendang
50.PD Kg Paya Mengkuang, 08330 Gurun
51.PD Bukit Raya, d/a Pejabat Penghulu Mukim Bukit Raya, 06760 Pendang
KEDAH
52.PD
53.PD
54.PD
55.PD
Masjid
Masjid
Masjid
Masjid
Bandar Baharu
56.PD
57.PD
58.PD
59.PD
Kg Permatang Pasir 34950 Bandar Baharu
Kg Baru Bagan Samak, 34950 Bandar Baharu
Taman Cempaka, Selama, 09810 Serdang
Kg Sungai Batu, 09810 Serdang
Baling
60.PD Kg Pokok Setol, Masjid Siong, Mukim Siong, 09100 Baling
SARAWAK
Betong
61.PD Kg Pusa Tengah, 93950 Betong
Padang Terap
Source: SKMM
Kg
Kg
Kg
Kg
Masjid Lama, Naka, 06350 Padang Terap
Datuk, Mukim Tekai Kiri, Naka, 06350 Padang Terap
Perik, Mukim Kurong Hitam, 06300 Kuala Nerang
Padang Niyor
Kuala Selangor
18.PD Bandar Puncak Alam, PT 1562 Fasa 1D,
Bandar Puncak Alam, Jeram, 43200 Kuala Selangor
List of Community Broadband Libraries (continued)
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
168
169
APPENDIX EIGHT
APPENDIX NINE
List of Community Broadband Centres
List of SKMM Events 2008
State / District
MELAKA
Alor Gajah
1. Brisu
2. Melaka Pindah
3. Melekek
4. Pegoh
5. Rembia
6. Sungei Baru Ilir
7. Taboh Naning
8. Tanjong Rimau
9.Sungei Baru Ulu
10. Tebong
JOHOR
Kota Tinggi
Pontian
NEGERI
SEMBILAN
Jempol
PAHANG
Bentong
Jerantut
17. Api-Api
18. Ayer Baloi
19. Jeram Batu
20. Rimba Terjun
21. Jelai
22. Rompin
23. Serting Hilir
24. Serting Ulu
25. Pelangai
26. Sabai
27. Pedah
28. Pulau Tawar
32. Chenor
33. Luit
34. Pahang Tua
35. Penyor
Rompin
TERENGGANU
Besut
Dungun
Marang
36. Keratong
37. Rompin
Mukim
38. Jabi
39. Kampong Raja
40. Kuala Besut
41. Pelagat
42. Jerangau
43. Kuala Paka
44. Rasau
45. Sura
46. Alur Limbat
47. Bukit Payong
48. Mercang
49. Pulau Kerengga
SARAWAK
No
Events
Venue
Date
1.
NextGen Contentpreneur Awards
SKMM
3 Jan
2.
MSC Malaysia-Ericsson CR Innovation Awards
KL
24 Jan
3.
Government Industry Forum on Inter-Carrier Blocking of Lost / Stolen Mobile Phones
SKMM
19 Mar
4.
Conference on Malaysian Communications and Multimedia Market 2008
SKMM
1 Apr
5.
Soft Launch of Experiencing Convergence.MyBroadband 2008 Exhibition and Conference
SKMM
15 Apr
6.
Opening of SKMM CATI Centre and Launch of the SKMM Household Use
of Internet Survey 2008
KL
19 Apr
7.
Launch of KL Wireless Metropolitan Project
KL
12 May
8.
IMPACT World Cyber Security Summit
KL
20 – 23 May
9.
Mobile Digital Signature Symposium
SKMM
3 Jun
10.
USP Symposium on Communication Technology for Underserved Communities
Seremban
12 – 13 Jun
11.
International Hacking Competition 2008
Shah Alam
15 – 17 Aug
Serian 50. Tebedu
Saratok 51. Budu
Marudi
52. Pekan Marudi
Matu 53. Igan
Mukah 54.Balingian
12.
Launch of Mobile Number Portability
KL
15 Oct
Tatau
55. Pekan Tatau
13.
Experiencing Convergence.MyBroadband 2008 Exhibition and Conference
KL
28 – 30 Oct
14.
BN Backbencher Briefing
KL
12 Nov
15.
ASEAN Cyberkids Camp 2008
Subang Jaya
23 – 29 Nov
Julau
29. Kuala Lipis
30. Penjom
31. Ulu Jelai
Maran
Pekan
11. Johor Lama
12. Kota Tinggi
13. Penggerang
14. Sedili Kechil
15. Tanjong Surat
16. Ulu Sungai Johor
State / District
56. Pekan Pakan
57. Pekan Julau
Asajaya
58. Pekan Asajaya
Bintulu 59. Kg Penan
16.
Forum on Consumer Awareness
SKMM
9 Dec
Sri Aman
60. Lingga
17.
Mobile Content Challenge 2008 Prize Giving and Closing Ceremony
KL
10 Dec
Kapit
61. Pekan Kapit
18.
MAMPU
Putrajaya
12 Dec
Betong
62. Pekan Betong
Samarahan 63. Pekan Samarahan
19.
Launch of the One-Laptop-Per-Child (OPLC) Scheme
KL
16 Dec
Dalat
64. Pekan Dalat
20.
Jom Heboh! Exhibition
Bukit Jalil
20 Dec
Limbang 65. Pekan Limbang
22 Dec
66. Pekan Sarikei
Signing Ceremony between Celcom, ASTRO and FM Production for Content Development
Petaling Jaya
Sarikei
21.
Song 67. Song
SABAH
Kinabatangan
68. Pekan Kinabatangan
69. Sukau
70. Bukit Garam
71. Kg Paris 1
Nabawan 72. Pegalungan
Pitas
73. Mempakat Laut
Lipis
Mukim
INDUSTRY
PERFORMANCE
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PERFORMANCE
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171
APPENDIX TEN
APPENDIX ELEVEN
List of Events for Wireless Sensor Technology Project 2008
Spectrum Research Collaboration Program (SRCP) Lecture Series 2006 - 2008
No. Programme
Date
Venue
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
Wireless Sensor Technology Awareness for Industries
7 Jan Renaissance Hotel
No.
Lecture
Presenter
Date
National Roadmap for Wireless Sensor Technology
technical visit and European WSN Conference 2008
28 Jan – 4 Feb Italy
1. Spectrum rules OK: Wireless communications from submarines to satellite
UTHM
1 Dec 06
National Roadmap for Wireless Sensor Technology for Industry
5 Feb
Marriot Hotel, Putrajaya
2. Smart antenna and location based services
UTM
21 Mar 07
National Roadmap for Wireless Sensor Technology for Academics and Research Institutes
21 Feb
Shangri-La Hotel
3. Wireless broadband access: An overview on standards and systems trials in Malaysia
MMU and DiGi
12 Jul 07
National Roadmap for Wireless Sensor Technology: 7 Apr
Global Village Initiative (Ambient assistive health and wellbeing services in the heart of the city)
Berjaya Times Square
Convention Centre,
Kuala Lumpur
4. Evolution to next generation mobile network
Maxis Communications
17 Aug 07
16 Aug 07
29 May
KLIA, Sepang
Approaches in refarming of spectrum and spectrum management
Telenor
e-Baggage Pilot Project: Technical Visit
5. National Roadmap for Wireless Sensor Technology for Transportation Sector
13 Aug
Faculty of Engineering, UPM
6. Mobile TV
Qualcomm
4 Sep 07
7. Current activities within ITU-R towards IMT-Advanced or 4G systems
NTT DoCoMo
4 Oct 07
8. Set-top box and Digital TV
RTM / MTSFB, NDS AP, Telenor Broadcast Hldg AS
21 Feb 08
9. WiMAX Technology and the Strategic Importance of Interoperability for Large Scale Deployment
WICHORUS Inc.
5 Jun 08
10.
Propagation Effect by Rain in Wireless Communication
UTM
System
1 Aug 08
11.
The Sentinels: Technologies and Spectrum Occupancies of Radars
IIUM
24 Oct 08
12.
Unmanned Aerial Vehicle (UAV): The Integration of UAV’s Operation into Civil Airspace
USM
21 Nov 08
13. WiMAX Essentials: Technology, Interoperability, Deployment Challenges and Market Analysis
Awards Solutions, Inc.
22 Dec 08
National Roadmap for Wireless Sensor Technology: 28 Aug
Towards Implementation of Wireless Sensor Technology and Application over IPv6 Network
Putrajaya International
Convention Centre
National Roadmap for Wireless Sensor Technology: Working Group meeting with representatives of RF
Communication (M) Sdn Bhd 29 Aug
UPM
National Roadmap for Wireless Sensor Technology: Working Group meeting with representatives of GS1 Malaysia
16 Jun
13 Aug
UPM
National Roadmap for Wireless Sensor Technology visit: Auto ID Labs, Japan
21 Mar
Japan
National Roadmap for Wireless Sensor Technology: Working Group meeting with representatives
of FEC International Sdn Bhd
1 Jul
National Roadmap for Wireless Sensor Technology: 25 Aug
Working Group meeting with representatives of JKR (Slope Department)
Cawangan Kejuruteraan
Cerun, Ibu Pejabat JKR
Malaysia, KL.
National Roadmap for Wireless Sensor Technology: Working Group meeting with experts in agriculture sectors
4 – 11 Sep
UPM Agriculture Park
National Roadmap for Wireless Sensor Technology: Working Group meeting with representative of National
Committee on Bridge Inspection, Appraisal and
Maintenance, and Industrialised Building System (IBS) 12 Sep
Convergence of RFID and Wireless Sensor Technology 28 - 30 Oct
& Applications in Malaysia showcase at MyBroadband 2008
Kuala Lumpur Convention
Centre
MIMOS Technology Preview 2008 session: Towards Implementation of Wireless Sensor Technology
and Applications in Malaysia
MIMOS Berhad
3 Dec
SRCP Lecture Series 2006 - 2008
170
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
172
173
APPENDIX TWELVE
APPENDIX TWELVE:
List of International Meetings and Other Activities for 2008 (continued)
No.
Meeting
Venue
Date
No.
Meeting
Venue
Date
1.
ITU High Level Expert Group Meeting to develop the Global Cybersecurity Agenda
Geneva, Switzerland
7 – 10 Jan
21.
795th FACSMAB Meeting
Singapore
21 Feb
Jakarta, Indonesia
15 – 18 Jan
MCMC Study visit to the Philippines on Mobile Phone Blocking (IMEI)
21 – 22 Feb
Meeting on ASEAN ICT Fund Disbursement
22.
Manila, Philippines
2.
3.
ITU Regional Meeting of Tariff Group for Asia and Oceania
Jakarta, Indonesia
16 – 18 Jan
23.
5th ASEAN Digital Broadcasting Meeting
Brunei Darussalam
25 – 26 Feb
4.
Meeting on Interference and Band-sharing in EGSM Band between Indonesia and Malaysia
Jakarta and Batam, Indonesia
17 – 19 Jan
24.
Meeting of the OECD-WPISP
Paris, France
4 – 5 Mar
25.
The APT Wireless Forum (AWF) Interim Meeting 2008
Bangkok, Thailand
4 – 5 Mar
5.
UPU 2008 Postal Operations Council (POC) Meeting
Berne, Switzerland
24 Jan – 1 Feb
26.
ASEAN TELSOM Joint WG & WG Meetings
Kuala Lumpur
4 – 7 Mar
6.
UPU 2008 Council of Administration (CA) Meeting
Berne, Switzerland
4 – 8 Feb
27.
Seminar on Contemporary Competition Law and Policy
Singapore
5 Mar
7.
6th FACSMAB Review Meeting
Singapore
24 Jan
Singapore
25 Jan
First APT Conference Preparatory Group Meeting for WRC 2011 (APG2011-1)
6 – 8 Mar
28.
Bangkok, Thailand
8.
9.
WSIS Meeting on Implementation of Outcomes Geneva, Switzerland
25 – 28 Jan
29.
APCERT 2008 AGM & Conference
Hong Kong, China
10 – 12 Mar
10.
WSIS Meeting on Participation of stakeholders in ITU activities
Geneva, Switzerland
29 – 30 Jan
30.
Satellite Coordination Meeting with the Administration
of Singapore
Cyberjaya
10 – 14 Mar
11.
ITU-R WP 5D Meeting on IMT Systems
Geneva, Switzerland
28 Jan – 1 Feb
31.
The 8th Global Symposium for Regulators
Pattaya, Thailand
11 – 13 Mar
32.
Meeting on Community-based ICT Integration: Lessons and Possibilities
Manila, Philippines
14 Mar
33.
Summit Conference on Telecommunications Regulatory Practices
Bangkok, Thailand
17 – 18 Mar
34.
WiMAX World Asia
Bangkok, Thailand
18 – 20 Mar
37th AIC Conference: “Issues and Opportunities in Promoting Cooperation among AIC Members to Realise Information
Society in the Asian Region”
Xian, China
17 – 21 Mar
12.
Satellite Coordination with the Administration of Saudi Arabia (By Correspondence)
28 Jan – 1 Feb
13.
14th JTC Meeting between Malaysia and Thailand
Pattaya, Thailand
4 – 6 Feb
14.
GAC & ICANN Meetings
New Delhi, India
9 – 15 Feb
15.
2008 GSMA Mobile World Congress
Barcelona, Spain
11 – 13 Feb
16.
Coordination Meeting between Malaysia and Brunei on Cyberjaya
frequency and interference issues along the common border
12 Feb
17.
Study visit to the National Mobile Phone Crime Unit (NMPCU)
London, UK
15 Feb
35.
18.
ITU Regional Workshop on Frameworks for Cybersecurity and CIIP Doha, Qatar
18 – 21 Feb
36.
Brunei Darussalam
17 Mar
37.
37th APEC TEL Meeting
Tokyo, Japan
23 – 28 Mar
38.
Preparatory Measurement for JCC Joint Measurement exercise for broadcast channels between Malaysia and Indonesia for Peninsular Malaysia-Sumatera common border
Selangor, Perak and Pulau Pinang
25 – 27 Mar
39.
3rd BIMP-EAGA Telecommunication Meeting (WG on ICT)
Brunei Darussalam
28 – 29 Mar
19.
Coordination Meeting between Malaysia and Brunei on Cyberjaya
frequency and interference issues along the common border
19 Feb
20.
WTO Telecom Symposium to Commemorate the 10th Anniversary of the Fourth Protocol of the GATS 20 – 21 Feb
Geneva, Switzerland
List of International Meetings and Other Activities for 2008
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
174
175
APPENDIX TWELVE:
No.
Meeting
Venue
Date
No.
Meeting
Venue
Date
40.
ITU Mobile Termination Rate Rapporteur Meeting
Geneva, Switzerland
29 Mar
20 – 22 May
ITU SG / WP 3 Meeting on tariff and accounting principles including related telecommunications economic
and policy issues
1st International Multilateral Partnership Against Cyber-terrorism (IMPACT) Ministerial Forum
Kuala Lumpur
41.
58.
59. 798th FACSMAB Meeting
Cyberjaya
(Virtual meeting)
26 May
42.
Preparation for Phase 3 of JCC Joint Measurements Negeri Sembilan,
for broadcast channels between Malaysia and Indonesia Melaka, Johor
for Peninsular Malaysia / Sumatera border
1 – 3 Apr
60.
APT Asia-Pacific Policy and Regulatory Forum (APRF)
Maldives
26 – 28 May
61.
2008 ITU Global Event on Measuring the Information Society
Geneva, Switzerland
27 – 29 May
43.
ASEAN-China Internet Emergency Response Drill Seminar
Shenzhen, China
7 – 9 Apr
ITU WP 4A Meeting on Efficient orbit / spectrum utilisation
Geneva, Switzerland
7 – 16 Apr
Phase 2 of JCC Joint Measurements for broadcast channels
between Malaysia and Indonesia for Peninsular Malaysia / Sumatera border
Pekanbaru, Sumatera, Indonesia
2 – 6 Jun
44.
62.
45.
WiMAX Forum Congress Asia 2008
Singapore
9 – 10 Apr
8 Apr
Coordination Meeting between Malaysia and Brunei on frequency and interference issues along the common border
5 – 6 Jun
ATRC-AICTC-ASEC Coordination Meeting for 14th ATRC Meeting 63.
Kota Kinabalu, Sabah
46.
47.
ATRC Work Plan Implementation Meeting
9 – 11 Apr
64.
APPU Executive Council Meeting
Hanoi, Vietnam
9 – 13 Jun
48.
7th ATRC MRA JSC Meeting
9 – 11 Apr
65.
14th APT Standardisation Programme (ASTAP) Forum
49.
Cyberjaya
17 Apr
66.
Kobe, Japan
2nd APT Preparatory Meeting for WTSA-08
50.
APEC TELMIN Meeting
Bangkok, Thailand
20 – 25 Apr
67.
Interim / Coordination Meeting between the Officials of the ASEAN ICT Centre and the ASEAN Secretariat ICT Unit
Jakarta, Indonesia
10 – 11 Jun
51.
Meeting on Interference Resolution and Sharing in 880 – 890 MHz (EGSM Band) between the Administrations
of Indonesia and Malaysia
Jakarta, Indonesia
23 – 24 Apr
68.
Regional ASEAN-EU Dialogue Instrument (READI) Workshop
on Telecommunications Regulation: “Ensuring Competition
for the Benefit of Citizens”
Singapore
16 – 17 Jun
52.
7th APEC TELMIN Meeting
Bangkok, Thailand
24 Apr
53.
2nd ITU Ad hoc High Level Expert Group Meeting to develop the Global Cybersecurity Agenda
Geneva, Switzerland
28 – 29 Apr
69.
Communic Asia 2008
Singapore
16 – 20 Jun
54.
ASEAN Workshop on the Use of Wireless Technology to Bridge the Digital Divide
Bangkok, Thailand
70.
Satellite Coordination Meeting with the Administration
Seoul, Republic of Korea 16 – 20 Jun
of the Republic of Korea
16 – 18 Jun
Meeting of the ASEAN Internet Exchange (AIX)
Bangkok, Thailand
Regional Executive Seminar on Digital Terrestrial Television Broadcasting
Singapore
55.
71.
56.
Phase 1 of JCC Joint Measurements for broadcast
channels between Malaysia and Indonesia for Peninsular Malaysia / Sumatera border
Pulau Pinang, Perak
and Selangor
72.
6th ASEAN Digital Broadcasting Seminar Singapore
19 Jun
5 – 9 May
73.
14th ASEAN Telecommunications Regulators Council (ATRC) Meeting
Singapore
18 – 20 Jun
57.
The CTO Asia-Pacific e-Gov Forum on “Harnessing ICTs for more efficient, inclusive and transparent governance”
Kuala Lumpur
20 – 22 May
74.
7th ATRC MRA Joint Sectoral Committee Meeting
Singapore
18 – 20 Jun
Bangkok, Thailand
31 Mar – 4 Apr
28 – 30 Apr
30 Apr
9 – 11 Jun
12 – 14 Jun
APPENDIX TWELVE:
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
176
177
APPENDIX TWELVE:
No.
Meeting
Venue
Date
No.
75.
ITU-R WP 1A Meeting on Spectrum Engineering Techniques
Geneva, Switzerland
18 – 24 Jun
76.
77.
ITU-R WP 1B Meeting on Spectrum Management Methodologies
Geneva, Switzerland
ITU-R WP 1C Meeting on Spectrum Monitoring
78.
Venue
Date
93. 4th IDA-MCMC Bilateral Meeting
Singapore
14 – 15 Aug
18 – 24 Jun
94. APT / WTO Capacity Building Workshop on Telecom Trade Rules & Regulatory Disciplines Singapore
19 – 22 Aug
Geneva, Switzerland
18 – 24 Jun
Brunei Darussalam
21 Aug
ITU-R SG 1 Meeting on Spectrum Management
Geneva, Switzerland
26 – 27 Jun
96. Roundtable on ASEAN Information Infrastructure
Bali, Indonesia
22 – 23 Aug
79.
Singapore
19 Jun
97. 9th TELSOM and 8th TELMIN
Bali, Indonesia 25 – 29 Aug
80.
GAC & ICANN Meetings
Paris, France
21 – 27 Jun
98. 5th APT Wireless Forum (AWF)
Macau, China 26 – 29 Aug
81.
Phase 3 of JCC Joint Measurements for broadcast channels between Malaysia and Indonesia for Peninsular Malaysia / Sumatera border
Negeri Sembilan, Melaka & Johor
23 – 27 Jun
99. Satellite Coordination Meeting with the Administration of Seychelles
Seychelles
27 – 29 Aug
100. ITU Telecom Asia 2008
Bangkok, Thailand
2 – 5 Sep
82.
8th Malaysia-US Free Trade Agreement Telecommunications and e-Commerce Working Groups
Meeting
Washington, USA
22 – 23 Jul
83.
Special TELSOM JWG Meetings
Manila, Philippines
84.
28 APT Study Groups Meeting
Tehran, Iran
7 – 9 Jul
85.
Satellite Coordination Meeting with the Administration of United Arab Emirates
Abu Dhabi, UAE
7 – 10 Jul
104. APT Sub-Regional Workshop on ICT for Disaster Prevention Manila, Philippines
and Management for ASEAN
86.
Phase 4 of JCC Joint Measurements for broadcast channels between Malaysia and Indonesia for Peninsular
Malaysia / Sumatera border
Medan, Indonesia
21 – 25 Jul
105. ITU-R WP 5D Meeting on IMT Systems
Seoul, Republic of Korea 8 – 15 Oct
Cyberjaya
9 – 10 Oct
87.
APT Workshop on Standardisation
Chiang Rai, Thailand
29 – 31 Jul
106. The 1st Meeting of the Special Technical Committee on Mobile Services between Indonesia,
Malaysia and Singapore
88.
Langkawi
31 Jul
107. Coordination Meeting on cellular signal across Malaysia-Brunei border
Brunei Darussalam
15 – 16 Oct
89.
7th FACSMAB Review Meeting
Langkawi
1 Aug
20 – 21 Oct
ASEAN Conference on Connected Communities
and Universal Service Policy
Hanoi, Vietnam
5 Aug
108. Coordination Meeting on cellular signal across Malaysia-Brunei border
Brunei Darussalam
90.
Nanning, China
21 – 25 Oct
91.
6 Meeting of the Joint Committee on Communications
(JCC) between Indonesia and Malaysia
Langkawi
12 – 14 Aug
109. The 3rd ASEAN-China ICT Week: Building the Information Superhighway, Constructing
the Regional Information Platform
92.
24th UPU Congress
Geneva, Switzerland 13 Aug – 3 Sep
110. The Meridian 2008 Conference and Meeting
Singapore
22 – 24 Oct
th
th
Meeting
101. ITU Forum on Bridging the Standardisation Gap in Asia-Pacific
Hanoi, Vietnam
102. Third APT Preparatory Meeting for WTSA-08
15 – 7 Sep
17 – 19 Sep
30 Jun – 4 Jul
103. 802nd FACSMAB Meeting
Cyberjaya
(Virtual meeting)
25 Sep
30 Sep – 2 Oct
APPENDIX TWELVE:
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
178
179
APPENDIX TWELVE:
Venue
Date
No.
111. 23rd FACSMAB Meeting
Cyberjaya
23 Oct
112. The 13th Asia-Pacific Regulatory Roundtable
Kuala Lumpur
28 – 30 Oct
No.
Meeting
Meeting
Venue
Date
129. Satellite Coordination Meeting with the Administration of Australia
Canberra, Australia
1 – 5 Dec
130. The 3rd Internet Governance Forum
Hyderabad, India
3 – 6 Dec
131. ITU-R World Radiocommunication Seminar
Geneva, Switzerland
8 - 12 Dec
113. The 4 Trilateral Meeting between Indonesia, Malaysia and Singapore
Kota Kinabalu
114. World Information and Communications Summit
Seoul, Republic of Korea 30 Oct – 1 Nov
132. The 11th Session of the General Assembly of the APT
Kuala Lumpur
11 – 13 Dec
115. IIC International Regulators Forum and Annual Conference
Hong Kong
31 Oct – 4 Nov
133. The 32nd Session of the Management Committee of the APT
Kuala Lumpur
15 – 18 Dec
116. GAC & ICANN Meetings
Cairo, Egypt
1 – 7 Nov
Johor
15 – 16 Dec
117. ITU-R JTG 5-6 Meeting: Studies on the use of the band 790-862MHz by mobile applications and by
primary services
Geneva, Switzerland
4 – 10 Nov
134.
Singapore
16 Dec
136.
Singapore
17 – 18 Dec
137. APIRA Board Meeting and 5th Annual Conference
Lijiang, China
20 – 24 Dec
138. The 15th JTC Meeting
Kuala Lumpur
22 – 24 Dec
th
30 – 31 Oct
118. KCSC International Conference
Seoul, Republic of Korea 10 – 11 Nov
119. APT Asia-Pacific Telecommunications and ICT Development Forum
Bangkok, Thailand
11 – 13 Nov
120. UPU Council of Administration Meeting
Berne, Switzerland
12 – 14 Nov
121. ITU Council 2008
Geneva, Switzerland
Joint measurement by Maxis and Mobile8 of Indonesia to Confirm Interference level of CDMA2000 transmission
from Indonesia operating at 880.00-883.37MHz Channel
in South Johor
Special Trilateral Meeting between Indonesia, Malaysia and Singapore for Resolution of Interference
and Sharing between CDMA and EGSM Systems
in the 880-890MHz Band
12 – 21 Nov
Chiang Mai, Thailand
13 – 14 Nov
123. The 7th ASEAN Digital Broadcasting Meeting
Bali, Indonesia
17 – 18 Nov
124. Satellite Coordination Meeting with the Administration of the United Kingdom
London, UK
24 – 28 Nov
125. ITU-UUM ASP CoE Workshop on “Effective use of
Telecommunications / ICTs in response
to disasters: Saving lives”
Sintok, Kedah
24 – 28 Nov
126. The 26th Annual Meeting of the International Audiotext Regulators Network
Sydney, Australia
25 – 26 Nov
127. Meeting with IDA on International Roaming Charges
Singapore
26 Nov
128. ASEAN-ROK Broadcasting Cooperation Workshop
Seoul, Republic of Korea 30 Nov – 4 Dec
122. The 8 ATRC MRA Joint Sectoral Committee Intersessional Meeting
th
APPENDIX TWELVE:
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
180
181
LIST OF FIGURES
(continued)
Fig. 2.1
Selected Economic Indicators
Fig. 3.5
Collection of Licence Fees
Fig. 2.2
Malaysian GDP Growth Forecasts
Fig. 3.6
Communications and Multimedia Licensees 2003 – 2008
Fig. 2.3
2009 Economic Outlook
Fig. 3.7
Revenue Growth of the Communications and Multimedia Industry: Domestic versus Overseas
Fig. 2.4
Individual Communications and Multimedia Companies Contribution to Bursa Malaysia 2008
Fig. 2.5
Market Capitalisation – Communications and Multimedia versus Bursa Malaysia
Fig. 3.8
Percentage Contribution to the Revenue of the Communications and Multimedia Industry:
Domestic versus Overseas
Fig. 2.6
Communications and Multimedia Companies Market Capitalisation RM (billion)
Fig. 3.9
Communications and Multimedia Industry: Revenue versus GDP
Fig. 2.7
Communications and Multimedia Companies Market Capitalisation in Ringgit
Fig. 3.10
Communications and Multimedia Industry: Revenue versus GNP
Fig. 2.8
Communications and Multimedia Revenue Market Share by Company 2008
Fig. 3.11
Services Market Segment: Revenue Comparison 2006 – 2008
Fig. 2.9
Communications and Multimedia Revenue Market Share by Sector 2008
Fig. 3.12
Fig. 2.10
Fig. 3.13
Fig. 2.11
Fig. 3.14
Fig. 2.12
TM’s Revenue by Segment 2008: RM8.67 billion
Fig. 3.15
Fig. 2.13
TMI Group Revenue 2008: RM11.35 billion
Fig. 3.16
Fig. 2.14
Maxis Revenue and Operating Profit Margin
Fig. 3.17
Fig. 2.15
Maxis Revenue by Segment 2008
Fig. 3.18
Subscription and Advertising Revenue of ASTRO FYE Jan 2004 – 2009
Fig. 2.16
DiGi Revenue and Operating Profit Margin
Fig. 3.19
Capex for Fixed Line versus Capex for Mobile 1982 – 2008
Fig. 2.17
DiGi Revenue by Segment 2008
Fig. 3.20
Capex for the Communications and Multimedia Market Share by Percentage
Fig. 2.18
Time Revenue and Operating Profit / Loss
Fig. 3.21
DEL Subscriptions and Penetration Rate
Fig. 2.19
Media Prima Quarterly Revenue and Operating Profit Margin
Fig. 3.22
DEL Connections: Residential versus Business (1998 – 2008)
Fig. 2.20
Media Prima Yearly Revenue and Operating Profit Margin
Fig. 3.23
DEL Connections: Growth of Residential versus Growth of Business
Fig. 2.21
ASTRO Revenue and Operating Profit Margin
Fig. 3.24
DEL Connections: By Operators 2008
Fig. 2.22
ASTRO Revenue by Segment Financial Year Ended January 2009
Fig. 3.25
Services of MYNIC
Fig. 2.23
RTM TV and Radio Revenue 2008
Fig. 3.26
Categories of Domain Name
Fig. 2.24
Pos Malaysia Revenue and Operating Profit Margin in Percentage
Fig. 3.27
Number of Domain Names Registered
Fig. 2.25
Pos Malaysia Postal and Related Services Revenue 2004 – 2008
Fig. 3.28
Penetration Rate of the Cellular Mobile Segment 2001 – 2008
Fig. 2.26
Revenue of Digital Certificate Companies
Fig. 3.29
Cellular Mobile: Subscribers 2001 – 2008
Fig. 2.27
MSC Trustgate.com’s Revenue versus Operating Profit Margin in Percentage
Fig. 3.30
Cellular Mobile: Growth of Subscribers 2001 -– 2008
Fig. 2.28
Digicert’s Revenue versus Operating Profit Margin in Percentage
Fig. 3.31
Prepaid and Postpaid Subscribers of Cellular Mobile 2001 – 2008
Fig. 2.29
SKMM Licensees on MESDAQ
Fig. 3.32
Growth of Prepaid and Postpaid Subscription Markets 2001 – 2008
Fig. 2.30
Holding Companies of SKMM Licensees Listed on MESDAQ
Fig. 3.33
Cellular Mobile Phone Subscribers: By Service Providers 2003 – 2008
Fig. 2.31
Holding Companies of SKMM Licensees – Market Listing and Financials
Fig. 3.34
Cellular Mobile Subscribers: By Market Segment 2008
Fig. 2.32
Advertising Expenditure (Adex) versus Gross Domestic Product (GDP) and Growth Comparison
Fig. 3.35
Preferred Technical Solutions and Method of Operation for the MNP Clearinghouse
Fig. 2.33
Adex Market Share in 2007 and 2008
Fig. 3.36
Implementation Phases of the MNP
Fig. 2.34
Top 10 Advertisement Spending by Brands in Malaysia
Fig. 3.37
Fig. 2.35
Fig. 3.38
Comparison of Advertising Net Revenue for FTA TV and Radio
Fig. 2.36
Fig. 3.39
FTA TV: Advertising Revenue
Fig. 3.1
10 National Policy Objectives for the Communications and Multimedia Industry
Fig. 3.40
FTA TV: Advertising Revenue 2005 – 2008
Fig. 3.2
Comparison between the Old and the New Licensing Regimes
Fig. 3.41
FTA TV Stations: Revenue and Growth
Fig. 3.3
Licences Issued (2008 versus 2007)
Fig. 3.42
Developments of the Television Networks of MPB in 2008
Fig. 3.4
Total Number of Individual Licences Issued
Fig. 3.43
New Services for the Television Networks of MPB in 2009
Fig. 3.44
Radio Adex 2001 – 2008
LIST OF FIGURES
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
182
183
LIST OF FIGURES
LIST OF FIGURES
(continued)
Fig. 3.45
Revenue from Radio Advertising: Market Share 2008
Fig. 4.23
Selected VoIP Service and Packages
Fig. 3.46
Revenue from Radio Advertising 1998 – 2008
Fig. 4.24
Fig. 3.47
Developments of Hot FM and Fly FM in 2008
Fig. 4.25
Methods of Internet Connection
Fig. 3.48
DTH Penetration Rate
Fig. 4.26
Intensity of Use
Fig. 3.49
ASTRO Subscribers and Churn Rate (FYE Jan 2005 to FYE Jan 2009)
Fig. 4.27
Fig. 3.50
SAC per Set-Top Box Sold (FYE Jan 2004 to FYE Jan 2009)
Fig. 4.28
TM Net: Limited IPTV Offering in the Northern Region
Fig. 3.51
Developments of ASTRO DTH
Fig. 4.29
RTM DTT Trial Objectives
Fig. 3.52
Average No. of ‘Letter Post Items’ Posted per Inhabitant - Comparison by Selected Countries
Fig. 4.30
Extended DTT Trial Objectives
Fig.3.53
Revenue versus Staff
Fig. 4.31
Digital Certificates Issued by MSC Trustgate.com and Digicert (2004 – 2008)
Fig. 3.54
Average Revenue per Staff
Fig. 4.32
Market Segmentation for MSC Trustgate.com
Fig. 3.55
Philately
Fig. 4.33
Market Segmentation for Digicert
Fig. 3.56
Selected Countries for Total Number of Advertising Items: Domestic Services 2005 – 2007
Fig. 4.34
Categories of Issuance of Digital Certificates
Fig. 3.57
Courier Licence Numbers Vary at Periphery
Fig. 4.35
Digital Certificates by Type (2002 – 2008)
Fig. 3.58
Courier Licence Growth 2002 – 2008
Fig. 4.36
Digital Certificate Growth by Percentage (%)
Fig. 3.59
Top 10 Courier Providers: Revenue Share 2007
Fig. 4.37
Overview of Spectrum Management
Fig. 3.60
Top 10 Courier Providers: Revenue Share 2001 – 2007
Fig. 4.38
www.spectrumresearch.com.my
Fig. 3.61
Courier Traffic 2004 – 2007
Fig. 4.39
SRCP Objectives
Fig. 3.62
Top 10 Courier Providers: By Revenue 2001 – 2007
Fig. 4.40
Committees Providing Guidance in the Collaborative Process
Fig. 4.1
Phases of Development Since the Institution of Communications and Multimedia Act, 1998 (CMA)
Fig. 4.41
Research Collaboration Programme Management
Fig. 4.2
MyICMS 886 Core Elements
Fig. 4.42
Spectrum Research Priority Areas
Fig. 4.3
Percentage of Broadband Subscriptions by Technology 2008
Fig. 4.43
Other Benefits of Collaboration through SRCP
Fig. 4.4
Number of Broadband Subscriptions by Technology
Fig. 4.44
Priority University Research Subjects in Collaboration
Fig. 4.5
Asia-Pacific (Selected Countries) Broadband Penetration by Population
Fig. 4.45
Research Collaboration in 2008
Fig. 4.6
Asia-Pacific (Selected Countries) Broadband Penetration by Household
Fig. 4.46
NAv6 Principal Functions
Fig. 4.7
Total Broadband Subscriptions by Region
Fig. 4.47
NAv6 Achievements to Date
Fig. 4.8
Broadband Household Penetration by Region
Fig. 4.48
IPv6 Standardisation Activities
Fig. 4.9
Broadband Penetration and GDP per Capita
Fig. 4.10
TM Programmes to Ensure Broadband Penetration Target is Achieved
Fig. 4.49
Development of Sensor Technology Knowledge Repository System:
Implementation Status up to 2008 (All modules were completed in November 2008)
Fig. 4.11
Broadband Committees Set-up to Ensure Targets Met
Fig. 4.50
Repository Interface
Fig. 4.12
HSBB Activities and Programmes 2008
Fig. 4.51
Development of Wireless Sensor System Architecture: Implementation Status up to 2008
Fig. 4.13
Cellular Technology in Malaysia
Fig. 4.52
KTAK RFID Asset Tracking System: Implementation Status up to 2008
Fig. 4.14
HSDPA (Mobile) Subscription
Fig. 4.53
System Interface
Fig. 4.15
HSDPA Broadband Packages from Mobile Operator
Fig. 4.54
Web Portal for Sensor Technology Knowledge
Fig. 4.16
Mobile Market Developments in Malaysia
Fig. 4.55
Current Set-Top Box Choices
Fig. 4.17
Malaysian MVNOs
Fig. 4.56
Requirements for Selected Functionalities
Fig. 4.18
Percentage (%) of Hotspot Locations by State, 4Q 2008
Fig. 4.57
Smart Antenna Structure in Phase 1
Fig. 4.19
Number of Hotspots by State
Fig. 4.58
G-Tek Gateway Phones
Fig. 4.20
Selected Hotspot Service Providers 2008
Fig. 4.59
A Case in Point – Home Grown HSDPA (Mobile) and WiMAX Devices
Fig. 4.21
WiMAX Operators in Malaysia
Fig. 4.60
Classification of USP Target
Fig. 4.22
Mobile WiMAX: Market Opportunities
Fig. 4.61
Universal Service Provision Fund (USPF)
Fig. 4.62
Delivery of Universal Services: Four Basic Processes
(continued)
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
184
185
LIST OF FIGURES
LIST OF FIGURES
(continued)
Fig. 4.63
Broadband Library in Desa Ijok, Selangor
Fig. 6.13
Number of Complaints by Type in 2008
Fig. 4.64
Community Broadband Centre in Sg. Pinggan, Pontian, Johor
Fig. 6.14
Cases Investigated in 2008
Fig. 4.65
Keynote Address by the Minister of Energy Water and Communications of Malaysia,
Fig. 6.15
Types of Offenders (Total 408)
Y.B. Dato’ Shaziman Abu Mansor
Fig. 6.16
Offences by Licensees (Total 188)
Fig. 4.66
Panelists at the USP Technology Symposium
Fig. 6.17
Offences by Other Offenders (Total 220)
Fig. 4.67
Participants at the USP Technology Symposium
Fig. 6.18
Types of Offences
Fig. 4.68
Discussion during one of the breakout sessions
Fig. 6.19
Status of Investigations
Fig. 4.69
Extent of Time 2 and Time 3 Programmes in Peninsula Malaysia
Fig. 6.20
Status of Cases
Fig. 4.70
Extent of Time 2 and Time 3 Programmes in Sabah and Sarawak
Fig. 6.21
Status of Court Cases
Fig. 4.71
Time 3 Sites by State
Fig. 6.22
Compound
Fig. 6.23
Insufficient Evidence
Fig. 4.72
Number of Cellular Towers under Time 3 Initiative
Fig. 5.1
Asia Pacific Online Gamers’ Market Size in 2007
Fig. 5.2
Estimated Total Market Size of Networked Content Industry
Fig. 5.3
Indicative Investment to Produce Local Content
Fig. 5.4
NCDG Grantee - Awards and Recognition
Fig. 5.5
NCDG Committee Evaluating Applications
Fig. 5.6
Potential Deals from MIPTV 2008
Fig. 5.7
Animation series under NCDG
Fig. 5.8
Looking out for the buyers
Fig. 5.9
Content is King
Fig. 5.10
Dealing with Animation under NCDG
Fig. 5.11
Number of IHLs Involved and Submissions (MCC2007 versus MCC2008)
Fig. 5.12
Fig. 5.13
IMPACT global headquarters in Cyberjaya, Malaysia
Fig.5.14
Greenhouse Gas Emission in ICT Sector
Fig. 5.15
Energy-Saving Checklist (ITU – T Study Group 15)
Fig. 5.16
DiGi Green Energy Initiatives – A Green Case Study
Fig. 5.17
ASTRO Going Green Energy – A Green Case Study
Fig. 6.1
Summary Report for the Period Ending June 2008
Fig. 6.2
Consumer Satisfaction Survey (CSS) 2001 – 2007
Fig. 6.3
Key Performance Index (KPI)
Fig. 6.4
Fig. 6.5
Fig. 6.6
Consumer Complaints (2002 – 2008)
Fig. 6.7
Number of Complaints Received by Month (2008)
Fig. 6.8
Type of Complaints Received
Fig. 6.9
Rates Monitoring Provision in Communications and Multimedia Act (CMA) 1998
Fig. 6.10
Complaints on Content Trends for 2004 – 2008
Fig. 6.11
Number of Complaints Received by Category
Fig. 6.12
Number of Complaints Received by Month in 2008
(continued)
INDUSTRY
PERFORMANCE
REPORT
INDUSTRY
PERFORMANCE
REPORT
186
187
CONTACT US
Suruhanjaya Komunikasi dan Multimedia Malaysia
Malaysian Communications and Multimedia Commission
63000 Cyberjaya, Selangor, Malaysia
T : +6 03 86 88 80 00
F : +6 03 86 88 10 00
E : [email protected]
W : www.skmm.gov.my
Freephone number : 1-800-888-030
CENTRAL REGIONAL OFFICE
Level 17, Wisma SunwayMas
1, Jalan Tengku Ampuan Zabedah C9/C
Section 9, 40100 Shah Alam, Selangor
NORTHERN REGIONAL OFFICE
Tingkat 1, Bangunan Tabung Haji,
Jalan Bagan Luar,
12000 Butterworth, Penang
T: +6 03 55 18 77 01 F: +6 03 55 18 77 10
T: +6 04 32 38 22 8 F: +6 04 32 39 44 8
SOUTHERN REGIONAL OFFICE
Suite 7A, Level 7
Menara Ansar, Jalan Trus
80000 Johor Bahru, Johor
EASTERN REGIONAL OFFICE
B8004 Tingkat 1, Sri Kuantan Square
Jalan Telok Sisek
25200 Kuantan, Pahang
T: +6 07 22 66 70 0 F: +6 07 22 78 70 0
T: +6 09 51 21 10 0 F: +6 09 51 57 56 6
SABAH REGIONAL OFFICE
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No. 6, Menara MAA
Lorong Api-Api 1, Api-Api Centre
88000 Kota Kinabalu, Sabah
SARAWAK REGIONAL OFFICE
Level 5 (North),
Wisma STA
26, Jalan Datuk Abang Abdul Rahim
93450 Kuching, Sarawak
T: +6 088 27 05 50 F: +6 088 25 32 05
T: +6 082 33 19 00 F: +6 082 33 19 01
Sandakan Branch
Miri Branch
Lot No. 7, Block 30,
Bandar Indah Phase 6
Batu 4, Jalan Utara, 90000 Sandakan, Sabah
Lot 1385 (1st Floor), Block 10,
Centre Point Commercial Centre, Phase II
98000 Miri, Sarawak
T: +6 089 22 73 50 F: +6 089 22 73 52
T: +6 085 41 74 00 / +6 085 41 76 00
F: +6 085 41 79 00
Our Regional Offices are located at:
INDUSTRY
PERFORMANCE
REPORT
188
COVER RATIONALE
Paper planes are powered solely by the downward force of gravity.
The minute differences in air pressures above and below the paper
wings are what cause the paper planes to glide, once they are set
in motion with a little throw into the air.
The paper plane is nothing more than just a sheet of paper,
transformed with a few folds and a couple of adjustments, to give it
the rigidity to harness fluid dynamics in order to take flight. There is
no glue, tape or paper clips to make it fly – just a simple idea behind
its transformation from a delicate sheet into a gliding object.
Like a piece of paper that needs to be transformed into a plane,
the growing communications and multimedia industry requires
purposeful planning and guiding before it can take off. Likewise,
the paper plane is also symbolic of an organisation’s creativity
and resourcefulness as well as its continuous striving to be the
best, in order to maintain and sustain its course in the competitive
communications and multimedia industry, despite the challenges
and obstacles ahead.
© Suruhanjaya Komunikasi dan Multimedia Malaysia 2009
Malaysian Communications and Multimedia Commission 2009
The information or material in this publication is protected under copyright and, save where otherwise stated, may be reproduced for non-commercial use provided it is reproduced accurately
and not used in a misleading context. Where any material is reproduced, SKMM as the source of the material must be identified and the copyright status acknowledged.
The permission to reproduce does not extend to any information or material the copyright of which belongs to any other person, organisation or third party. Authorisation or permission to
reproduce such information or material must be obtained from the copyright holders concerned.
Suruhanjaya Komunikasi dan Multimedia Malaysia
Malaysian Communications and Multimedia Commission
Off Persiaran Multimedia, 63000 Cyberjaya, Selangor Darul Ehsan, Malaysia. T: +60 3 86 88 80 00 F: +60 3 86 88 10 00 E: [email protected] W: www.skmm.gov.my
Concept, design and layout by: World Communications Network Resources Sdn Bhd (498793-D)

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