WITSA Public Policy Meeting

1. WITSA Public Policy Meeting Broadband Initiatives in Malaysia Zamani Zakariah Senior Director, MyICMS, Technology & Standards Division Malaysian Communications and Multimedia Commission 18 May 2007

2. Broadband is critical • Beneficial for businesses, consumers and society • High broadband uptake has a positive impact on the nation’s GDP • World class broadband infrastructure is seen as a key success factor in attracting foreign investors • Pushing the frontiers of knowledge and economic development amongst Malaysians

3. “Top Ten” Broadband Countries by Population Penetration Dec 05 – Dec 06 Malaysia: Q4 05 = 1.9 Q4 06 = 3.3 Source: MCMC, ITU Source: Point Topic- World Broadband Statistics Q4 2006

4. Broadband Countries by Population Penetration-Comparison– Dec 06 (Source: Point Topic- World Broadband Statistics Q4 2006)

5. “Top Ten” Broadband Countries by Household Penetration Dec 05 – Dec 06 Malaysia: Q4 05 = 7.0 Q4 06 = 11.0 Source: MCMC, ITU Source: Point Topic- World Broadband Statistics Q4 2006

6. Broadband Household penetration-comparison-Dec 06 (Source: Point Topic- World Broadband Statistics Q4 2006)

7. Major Issues & Challenges • Intensive upgrading of infrastructure • Policy adjustments to create incentives for the the private sector to make capital investment in last mile access • Lack of facility-based competition ie. high access prices • Low PC penetration ~19.7 per 100 population (end 2006 - Business Monitor International) • Lack of new services and content • Broadband/communication is not regarded as public utility • Affordability of services • Awareness

8. National Broadband Policy • Generate adequate supply for broadband infrastructure • Stimulate demand for broadband take up • Funding mechanisms for broadband roll out • Identify gaps in existing regulations • To create a critical mass of 1.3 million broadband lines by 2006 to encourage private sectors to invest in broadbandinfrastructure

9. MyICMS886 • Blueprint for the development of information and communications services in Malaysia for the five year period from 2006 till 2010. • Consist of 8 initiatives in the services industries, 8 type of hard and soft infrastructure and 6 growth areas. • Private-public partnership • Aims to guide/leverage on investments by the private sector to create a catalytic cycle that will drive the development of the services, infrastructure and growth areas.

10. MyICMS886- cont’d • MyICMS886 Action Plans consists of 6 main areas: • Policy and Regulatory Framework; • Broadband Roll-out; • Institution Building; • Content Development; • Foreign Ventures and Manufacturing; • Strengthening of Inter- Agency Cooperation.

11. Broadband Targets under MyICMS 886 & NBP

12. CROSS-SECTOR POLICY CROSS SECTOR SERVICES • To further promote convergence and the deployment of next generation networks, the prohibition on cross sector services will be lifted. This is expected to give the following effect: • boost the provision of IP based next generation networks ; • encourage the growth of content and content applications services such as IP television ; • allow the provision of applications services via digital and analogue broadcasting networks; • provide economies of scale through the better utilisation of existing infrastructure • boost the demand for high speed broadband access such as fibre to the home, 3G HSDPA and other wireless networks such as Wimax;

13. ACCESS FRAMEWORK POLICY IMPROVING THE ACCESS FRAMEWORK Key elements of the access framework are standards on access and the access list. • The access framework is currently being reviewed to further improve access to the last mile so crucial for the delivery of advanced content and applications services. • Access to the local loop was partially unbundled by requiring TM (Telekom Malaysia) to provide bandwidth via bit-streaming to interested licensees. The effectiveness of bit-streaming will reassessed before further “unbundling” measures are undertaken. • Access List is being reviewed for the inclusion of: • VoIP and voice over broadband; and • 3G and beyond services;

14. MALAYSIAN INTERNET EXCHANGE ESTABLISHMENT OF MYIX (MALAYSIAN INTERNET EXCHANGE) • Launched on 15th December 2006, offers opening peering to 17 ISPs in Malaysia. • To strengthen and provide a mechanism for the peering and exchange of domestic IP traffic. and • Expected to boost the local content services, broadband and VoIP services.

15. SPECTRUM POLICIES SPECTRUM POLICIES • For 3G, two new bands of spectrum were issued to MITV and TT Dotcom. • MEWC & MCMC is evaluating the use of existing and new technologies including Wimax, HSDPA, I-Burst and wireless-mesh and other innovative technologies for the delivery of high-speed broadband. • Adequate spectrum, as provided for by the Malaysian Spectrum Plan will be made available for the provision high-speed wireless broadband, digital terrestrial broadcasting, digital multimedia broadcasting and short-range communications using RFID. and • Award of 2.3GHz spectrum. 4 successful applicants announced on 16 March 2007- type of allocation through AA (5 years duration)

16. Broadband Roll-out Plans Action being taken to enhance broadband roll-out includes: • The Establishment of Broadband Stakeholders Group or BSG . Stakeholders from both the public and private sectors to increase awareness as well as coordinate the implementation of the National Broadband Plan. • State Broadband Plans being developed-pilot project in Penang. Sarawak, Kedah, Johor & Pahang-ongoing. • Public-Private Sector Collaboration- approaches to be considered to encourage investments in broadband; • Private sector CAPEX funding backed by Govt Procurement contracts. • Joint-Venture funding by private sector. • Public sector concept & requirements for implementation, private sector funding upon award.

17. Broadband Roll-out Plans • Broadband Research & Analysis- To set up National Broadband Portal for analysis of demand and supply for broadband • Promotional Activities planned for 2007: • A conference & Exhibition on Broadband; • Road shows to promote broadband; • Publications; and • Development of a National Broadband Portal.

18. KLANG VALLEY BROADBAND PUSH KLANG VALLEY BROADBAND PUSH (KVBP) • Promote rapid development of broadband infrastructure in the Klang Valley using various technology such as fibre optics, wireless access, hotspot, i-burst and others; • Promote advanced application services and content including IPTV; • Make winning comparisons with HK and Singapore as a model metropolis • Complements eKL

19. KVBP Projects Model Local Authority • Create a municipality with world class communications infrastructure supporting broadband services and applications for government/public/business Wi-Fi in Libraries • Promote public access to broadband in key public institutions. Improve infrastructure & provide free broadband for a year Ubiquitous Library • Promote public access to broadband in key public institutions. Connect public libraries within the Klang Valley Pilot Project at Schools • Improve infrastructure & services, create awareness and sponsor ICT interns in schools

20. KVBP Projects Pilot Project for the Disabled • Ensuring that underserved community has access to broadband services. Identify categories of the disabled who are eligible for USP within the Klang Valley • Addressing Broadband Complaints • Identify issues faced by consumers in relation to broadband services and improve quality of service standards Web portal kl2u.com • Encouraging online activity by retailers

21. Other Initiatives • Fibre Study:- Determine requirements for fibre by 2010 within the Klang Valley • Deployment of WiMax and other wireless broadband technology • MDeC’s initiative on roll out of more Cybercenters within Klang Valley • On going initiatives by industry/relevant stakeholders - BPL (Broadband over Powerline), Wireless Broadband and Fibre Optics

22. Other Initiatives (cont’d) USP Regulation Review • USP for broadband • Allow contributors to use their contributions to expedite broadband deployment • 48 libraries broadband enabled at RM 17.5 million (Q2, 2007) Towards making Communications (broadband) essential • Requirement to include communication as essential service in housing areas and buildings. • Proposal to amend the UBBL

23. Conclusion-Key success factors for increasing broadband uptake in Malaysia • Promote government Initiatives / PPP • Encourage public-private-partnership investment especially in developing FTTH • Encourage adoption of new technologies • Converged platforms and alternative access technologies • Encourage competition • Competition among infrastructure providers will be a strong driver for broadband penetration growth • Access to content • Strong government commitment for local content development

24. Thank you Terima kasih