KUALA LUMPUR, Nov 26 — Consumers in Malaysia pay some of the highest prices for broadband in the region, one major reason being the monopoly which state-owned Telekom Malaysia (TM) holds on submarine cable landing rights, a senior executive at a multinational company has asserted.
There is no shortage of gateway service providers seeking landing rights because of the pent-up demand for quality bandwidth, but the government must deregulate or liberalise gateways in order to improve competitiveness by providing larger broadband at lower costs, said Ryaz Patel, Intel Electronics country manager for Malaysia and Brunei.
Patel’s comments that the lacklustre quality and high cost of broadband is hurting the country’s knowledge aspirations come on the heels of warnings by Australian businesses that slow Internet speeds were putting them off investing in Malaysia.
Malaysia Australia Business Council vice-chairman Michael Halpin said large technical documents from Australia had difficulty getting sent over because of the poor quality broadband.
“Australian and American investors see this as a nuisance and an impediment to them to do business successfully here,” he said.
In a press briefing on Intel’s roadmap for 2010, Patel observed Malaysian consumers pay significantly more for broadband, but even to buy broadband wholesale as a service provider was ‘“frighteningly expensive” compared to its neighbours.
His comparison of regional costs showed Malaysian broadband offers some of the lowest speeds in the region, but at the highest costs.
For the fastest bandwidth of 100 megabit per second, Singapore users pay nearly US$85 (RM286.56) or US$10.20 mbps.
For 4mbps in Malaysia, consumers pay US$76. Vietnam’s 3mbps bandwidth — although a tad slower — costs users US$50.55, or US$16.85 mbps.
In the region, broadband costs in Indonesia and India also tend to be higher.
TM is likely to resist liberalisation as it has invested huge sums in infrastructure and now owns or leases capacity on more than 10 submarine cable networks which span more than 60,000 fibre-route miles.
But Patel said if Malaysia aspires to be a knowledge-based society, it needs to get more computers as well as quality and affordable broadband into more homes.
“(And) the single biggest link has to do with landing rights.”
Malaysia is aiming for 50 per cent household broadband penetration next year from about 30 per cent now. Broadband users can access 10MB speeds next year when TM rolls out high-speed broadband in selected suburbs in the Klang Valley in the first phase of its nationwide rollout.
Last month, Thailand broke a state-owned enterprise hold on submarine cable landing rights in the country by granting a licence to the first private operator, True Internet Gateway Co Ltd, which pointed out it would be able to source submarine bandwidth capacity from a wide range of providers directly, resulting in greater bandwidth being available at more competitive prices. — Business Times Singapore

written by duduk atas pagar, November 26, 2009
written by Rage against the Machine, November 26, 2009
you stupid, silly company.
written by Sean, November 26, 2009
written by confused.., November 26, 2009
written by sigh!, November 26, 2009
written by yearofsnake, November 26, 2009
written by Consumer, November 26, 2009
How to be negara maju & have knowledgeable rakyat by 2020?
If TM is incapable to provide fast speed broadband, then let other service providers do the job. Don't victimise the rakyat! We are PAYING tau tak?!!
written by KWood, November 26, 2009
written by democrat gsk, November 26, 2009
written by JustaGuy, November 26, 2009
written by jan, November 26, 2009
written by Paul Ong, November 26, 2009
If they charge us the equivalent price as Singaporeans paid then they either go bust or the Gomen got to pump in more cash to prop them up. This is called Malaysia Bolih!
written by i_love_malaysia, November 26, 2009
written by change28, November 26, 2009
All this wawasan this and 1xxx that is just for lip service.
None of the GLCs need to care about customer satisfaction as the entire population is a captive market!
written by Jasraj Sandhu, November 26, 2009
This is clearly the result of the monopolistic nature that has been long practised in Malaysia especially so when it concern TM!
To quote from the above article...
" ... comparison of regional costs showed Malaysian broadband offers some of the lowest speeds in the region, but at the highest costs."
Now just so the people understand how TM Corporate are in the dark, both blindly and unknowingly and worst still dumbfounded-ly, just read what Datuk Zam Isa, group CEO of TM, said in this interview that you can definitely MUST read up here:
http://www.malaysianwireless.com/2009/11/latest-interview-with-telekom-malaysia.html
Mark my words HSBB is still a long long long way off for the majority of internet users in Malaysia! Meanwhile the government is touting HSBB as THE solution for our broadband troubles when the clear fact of the matter is that the solution required for today issues is YET years away.
What happens when come 2011 and HSBB proves inadequate for the the needs of tomorrow?
Another mega project to solve the problem this mega project(HSBB) couldn't?
More millions if not billions to be squandered?
Welcome to reality of Malaysia!
written by hiyyl, November 26, 2009
I agree with KWood also, Telekom is just cheating their customers.
written by alias, November 26, 2009
written by Steve, November 26, 2009
Why? Bcos there are NO genuine competitors, so how to improve??!?!
Government shud invite True Internet Gateway Co Ltd to Malaysia to compete with Telekom.
written by JG, November 26, 2009
written by PM Markham, November 26, 2009
written by dede, November 26, 2009
written by straightvoice, November 26, 2009
written by amoker, November 26, 2009
written by Tan, November 26, 2009
written by Indiana Jones, November 26, 2009
written by Johan Malaysia, November 26, 2009
For all these GLCs which is critical/nessasity for public, only got 3 categories:
i. High prices (monopoly price), bad service/products, can make some profit... but the profit no know go where...
ii. If competitive price, good service/products, make huge loss... cover by public funds.
iii. The worst is High price, bad service/products, still make losses... cover by public funds.
This is Malaysia ma.
written by pak, November 26, 2009
written by leslie, November 26, 2009
written by Anak Kedah, November 26, 2009
Oi Anak Malaysia - bila engkau bangun dan tolak UMNO sehabis-habisnya ?
written by chinaman, November 26, 2009
written by Shade, November 26, 2009
written by master of the universe, November 26, 2009
written by Durian Besar, November 27, 2009
==============
You can't even "Skype" smoothly with Malaysian broadband!
Like may other things in the life of Malaysians, we get inferior products, inferior goods and inferior services, inferior education, inferior everything.
All because we have a f8king interior government, which consists of a bunch of inferior and corrupted ministers.
written by AgreeToDisagree, November 27, 2009
It's better to cut that internet line, stop wasting time on the computer and get back to the real world. Join a political party, or even better form your own political party. The amount of money and time spent on internet access would be better put to use in the real world. Hardly costs that much more.
written by din haron, November 27, 2009
written by Tan, November 27, 2009
written by Mira, November 27, 2009
written by drama, November 27, 2009
those top pelple never use internet, they use their mouth to talk,
malaysia have the top highway
top universiti
top internet, top msc, to putra jaya, top 2020,, top income per capital, top top top....ya we also pay top money for thos top services and goods....we all top rakyat.
written by KWood, November 27, 2009
If you are/have been the near sole provider of the service, it is your responsibility to solve the problems. In the end you get the just rewards. As in any business venture, you take the good and the bad and manage the mix so as to earn a decent profit in ways which you have not even thought of now. How other countries can do it successfully, obviously is not in your consideration because as a business venture all you talk about is good returns now.
Mira must also consider how TM can charge based on a best effort basis (a ridiculous term from the consumer's point of view) and not based on actual average usage and service provided. This is akin to a guaranteed payment for a commercial service. I can accept it was yesterday's norm to do so, but then technology has so far advanced you just can't continue to provide on that basis. From my experience best effort is consistently 60% of what is promised with no recourse for the short-change. When you have the means to provide the full through-put of 1mbps, don't cap that and just provide 700kpbs when you are selling a 1mbps service. That is blatant cheating and you expect consumers to take it without complaints?




