Ms' Azizah Hamzah,

1
National Broadband Plan Connecting Communities
Widening Private Access
Ms. Azizah Hamzah, Ministry of Energy, Water and
Communications Malaysia
APT Telecommunication Development Forum Bangkok,
Thailand, 28-29 June 2004
2
Outline

• Introduction
• Definition
• Features
• Current Scenario
• Rationale
• National Broadband Plan
• Objectives
• Target
• Strategies

3
Introduction - Definition

• Definition of Broadband
• Different understanding of broadband in different
  countries
• Global understanding is Transmission capacity
  and speed to allow interactive high-quality
  full-motion video, data and voice applications
  simultaneously via one pipe.
• Malaysia define broadband speed as speeds above
  128 kbps
• Currently, bandwidth provided by TMNet
  (Streamyx) is 384 kbps for households and 512
  kbps 2 Mbps for corporate users
• Other players include TIME, NasionCom, AtlasOne

4
Introduction - Features
Features of Broadband

• Speed
• Speeds will change according to demands
• ITU 2 Mbps
• Korea, Japan 10 Mbps is the norm
• Malaysia currently, 384 kbps is the norm

5
Introduction - Features
Features of Broadband

• Technologies
• Fixed/cable ADSL, FTTH, HFC and PLC
• Satellite-VSAT and DTH
• Wireless - LMDS, MMDS, etc.
• Note
• ADSL Asymmetric Digital Subscriber Line
• FTTH Fibre To The Home
• HFC Hybrid Fibre Coaxial
• PLC Power Line Communications
• VSAT Very Small Aperture Terminal
• DTH Direct to the Home
• LMDS - Local Multipoint Distribution System
• MMDS - Multipoint Multi-channel Distribution
  System

6
Introduction - Features

• Features of Broadband
• Communications technology that can provide
• support for always-on and fast-access
• Applications - Advanced computer applications,
  Video-on-Demand (VOD), Video Conferencing (VC),
  Computer Aided Design (CAD), e-learning,
  telehealth, etc.

7
Normally charges are at flat rateTariff review 1
Nov 2003New Streamyx charges offer opportunity
to increase broadband Internet penetration
US1 RM3.8
SOURCE TM Net
8
Introduction Current Scenario
Broadband country comparison based on cost per
100 kbps

• Price per 100 Kbps of data per month
• US, April 2003

From 1 Nov 2003
Malaysia US5.21
Prior to 1 Nov 2003
Malaysia US7.61
Source ITU Research
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Introduction Current Scenario

• Prerequisite for broadband access
• PC ownership - 4.2 M (16.7 )
• Internet penetration - 2.9 M (11.4 )

Need to accelerate both PC ownership and Internet
access to widen broadband penetration
Source MCMC, Dec 2003
10
Introduction Current Scenario
PC per 100 population, 2003 Malaysia in
comparison with other countries
Source ITU_at_2004
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Introduction Current Scenario
Internet Users per 100 population, 2003 Malaysia
in comparison with other countries
Ratio for Internet Subscriber to Users is 1 3
Source ITU_at_2004
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Introduction Current Scenario
Broadband subscribers per 100 population,
2003 Malaysia in comparison with other countries
125,000 subscribers
Source ITU 2003 / Analysys
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Introduction Current Scenario

• Current Broadband Supply Situation In Malaysia
• Service Providers
• Service providers No. of broadband
  subscribers
• TMNet 140,386
• TimeNet 1,124
• MaxisNet 633
• Jaring 189
• Total 142,332
• Availability Of Infrastructure
• - Abundant availability of domestic backbone
  capacity as compared to last mile broadband
  infrastructure

As at March 2004
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Introduction Current Scenario
Existing backbone infrastructure for broadband
Telekom Malaysia 5,454.8 km Maxis 1,381.0
km Fiberail 1.414.0 km Celcom 609.7 km Digi
113.2km Time Telekom 2,965.0 km Others
30,000km Estimated Total 70,000 km Excess
capacity 50
Tumpat
Pasir Mas
Sg.Petani
Penang
Kota Kinabalu
Seberang Jaya
Labuan
Taiping
Miri
Tasik
Cherating
K.Lipis
Teruntum
MALAYSIA DOMESTIC OPTICAL FIBRE SUBMARINE
CABLE SYSTEM
Bintulu
Temerloh
Batu
WMU
KLJ
B.T Razak
KLR
Kelang
Rasah
Segamat
Mersing
P.Dickson
Tampin
Kuching
Kluang
Melaka
Gemas
Muar
Skudai
Johore Bharu
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Introduction Current Scenario
Projected Broadband Household Penetration Rate In
Selected Asian Countries (without Government
intervention)

• Broadband household penetration rate in
  Malaysia
• still below 10 over the next 5 years
• Strategies needed to boost up penetration rate

Penetration Rate
90 80 70 60 50 40 30 20 10
Korea Hong Kong Taiwan Singapore
4.8 5.9 6.8
0.4 0.8 1.8
3.5
Malaysia
2002 2003 2004 2005 2006 2007 2008
Broadband speed defined as 128kbps
Source IDC 2003
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Introduction - Rationale
Rationale for broadband

• In the context of the development of a
  knowledge-based society and economy
• Pre-requisite for high-speed info-communications
  access
• New benchmark on national infrastructure and
  country competitiveness
• Expansion of Multimedia Super Corridor (MSC)
  nationwide
• Rollout of e-government and other flagship
  applications
• Potential for bridging the digital divide hence
  the knowledge divide

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National Broadband Plan

• Malaysia need a conducive strategies to stimulate
  and promote broadband rollout through out the
  country
• The Government is formulating National Broadband
  Plan

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National Broadband Plan
Objective

• Developing k-Society
• High-performance infrastructure ( broadband) is
  key prerequisite to the creation of a
  knowledge-based society
• Accelerate Roll-Out Of Flagship Applications
• Governments commitment to a full-scale roll-out
  of MSC flagship applications during Eight
  Malaysia Plan

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National Broadband Plan
Objective

• Expansion Of MSC
• To support the expansion of MSC roll-outs with
  Infrastructure of high quality and capability
• Regional Centre Of Excellence
• To promote the country as an operational office
  or centre of excellence for shared
  services/centres

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National Broadband Plan
Projected Demand For Broadband Connection
2004-2008
(public private home users) Projected 1.3
million connections by 2006 or penetration 5 per
100 population. To reach 2.8 million connections
by 2008 or penetration 10 per 100 population.
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Projected Broadband Penetration Rates
National Broadband Plan
2008
2007
2006
2005
2004
Year
2,870
2,009
1,276
693
282
Broadband Connections (000)
10
7
5
3
1
Penetration/100 population
50
35
23
11
5
Penetration /100 households
65
41
25
12
7
- Urban
33
25
13
6
3
- Rural
Source KTAK
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National Broadband Plan
Strategy 1 - To Create a Critical Mass

• A critical mass equivalent to a penetration rate
  of 5 equivalent to 1.3 million connections to
  attract industry players to roll out
  infrastructure at the last mile level.

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National Broadband Plan
Strategy 2 - Government Intervention

• Connecting Communities
• - To connect identified communities with
  broadband infrastructure
• 2006 to reach critical mass 5 (1.3 mil
  connections)
• 2008 to reach target 10

Network
Community
EGNet

• Government Departments
• Federal (219)
• State (346) 22,000 POW
• District (142)

SchoolNet
Schools (10,000)
MyREN
Universities Research Institutions
Telehealth
Hospitals and clinics
ADSL, WiFi, ISDN And VSAT
Internet Community Centres
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National Broadband Plan
Strategy 2 - Private Sector
Leveraging on Government intervention,
(publicprivatehome) target 1.3 mil connections
by 2006
Network Examples
Community
Leased line ADSL
Manufacturing (MNCs and SMEs)
Leased Line
Banking and Finance
Leased Line ADSL
Distributive Trade
Leased Line ADSL
Transportation
ADSL, WiFi, ISDN And VSAT
Others
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National Broadband Plan
Strategy 3 Policy and Regulatory Framework (1)

• Promote Competition and Infrastructure Sharing
• To intensify competition at the last mile
  through
• Opening up of licensing for the last mile
• Separation of wholesale and retail businesses
• Outsourcing of installation
• Mandate Unbundling and Co-location
• - Interconnection Tariffs must be approved by
  Government
• - Commission to resolve the disputes between
  telecommunications providers.

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National Broadband Plan
Strategy 3 Policy and Regulatory Framework (2)

• Mandate Broadband Under USP Programme
• To mandate broadband access for USP programmes
• Promote Facilitative Role Of Local Authorities
• Need to play a facilitative role to speed up
  approvals for infrastructure development within
  their districts

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National Broadband Plan
Strategy 4 - Incentives (1) Provide incentives
for private sector take up

• Tax Rebates Government Computer Loan
• Greater tax rebates for purchase of new computers
  (currently tax rebate of RM400, proposed 40
  rebate)
• Government computer loan periods can be reduced
  to three years from the current 5 year period
• 15 tax rebate for broadband equipment
• Affordable PCs
• Introduce affordable PC at prices lower than RM
  1000
• This is to encourage PC ownership which is a
  pre-requisite for creating broadband demand.
• Note Phase 1 (15.3.04 30.4.04) 11,255 units
  sold.
• Phase 2 will be commenced soon.
• Soft loans to ISPs to rollout infrastructure
• Easy access to affordable financing (eg. Bank
  Pembangunan Infrastruktur)

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National Broadband Plan

• Strategy 4 - Incentives (2)
• Extend existing tax relief schemes given to MNCs
  that operate shared-services centres to other
  sectors eg. transportation, tourism, hotels,
  restaurants, wholesale, retail sectors etc. for
  investment in broadband expenditure.
• Currently MNCs that operate shared services in
  the MSC area enjoy a 20 tax relief (i.e. 20 of
  taxable income)
• Similar benefits should also be extended to SMEs
  in the above sectors which are highly automated,
  and have requirements for higher bandwidths
• These sectors also contribute significantly to
  the economy

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National Broadband Plan

• Strategy 5 Designate Focal Point
• Ministry and Designated Focal Point
• To plan and monitor development of broadband in
  the country. This includes aggregation of demand
  for broadband.
• To nurture and promote local-content development
  to stimulate broadband usage
• To align broadband plan with flagship rollout
  programmes

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Thank You AzizahH_at_ktkm.gov.my