© malaysian communications and multimedia commission … · contribution of c&m companies to...

© Malaysian Communications and Multimedia Commission 2007The 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, MCMC 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.

Malaysian Communications and Multimedia Commission63000 Cyberjaya, Selangor Darul Ehsan, Malaysia. Tel: +603 - 8688 8000 Fax: + 603 - 8688 1000Toll Free Numbers: 1-800-888-030 http://www.mcmc.gov.my

Concept, design and layout by: Versa Ads Sdn. Bhd. (498793-D)

Contents

Message from the Chairman 3

Executive Summary 4

Economic Performance Of The Industry 7

Malaysian GDP At 5.8% in 2006; 6% 2007 7Contribution of C&M Companies to Bursa Malaysia 9C&M Industry Revenue Overview 11 TelecommunicationsSector 12 BroadcastingSector 16 PostalServicesSector 18 DigitalSignatureUsage 19MESDAQ - MCMC Licensees 21Malaysian Adex 2006 22 AdexComparisons:GeneralObservations 22 FTATVandRadioAdvertisingRevenue 23 AdexbySectors 26 AdvertisementbyMCMCLicensees 27

C&M Industry Overview 28

Communications & Multimedia Industry 28C&M Revenue by Services Market Segment 29 FixedLine&CellularMobilePhoneServices 30 Broadcasting-SubscriptionTV 32 PostalServices 33Communications & Multimedia Services Connections 33 FixedLineServices 33 CellularMobilePhoneServices 34 InternetConnections;Broadband;and3G 35 Direct-To-Home(DTH)SatellitePay-TV 38Postal Services 39 Philately 41 DirectMail 41 ProposedPostalServicesBill 43 CourierServices 43The MSC Malaysia 44

Regulating Effectively 46

Licencing in 2006 46 VariationsandTransferOfLicences 47 ResponsetoMarketandNewDevelopments 47 SuspensionofLicence 48Licensing Developments and Issues 48 RebatesonApplicableAnnualLicenceFees 48 ImplementationofRebatesFramework 49 NicheGuidelines 49Consumer Protection 50 ConsumerSatisfactionSurvey(CSS) 50 MandatoryStandardsforQualityofService(MSQoS) 51 AuditandCertificationExercise 52 TrendAnalysisforMSQoS 56 RatesRegulation 66 RateMonitoringasatJune2006 67

Chapter 12

3

4

Message from the Chairman

ConsumerComplaintsReceivedbyMCMC 68 RequiredApplicationServices(RAS) 69Competition and Access to Services 70 AccessRegime 70 CompetitionRegulation 72Challenges in Regulating Content 76 IndustryOverview 76 CompliancewithContentRequirements 77Resource Management 79 SpectrumManagement 79 NumberManagement 90Enforcement 92 Investigations&ActionTakenOnCasesInvestigated 93

Initiating Transformations For Future Generations 94

Introduction 94MyICMS 886 94 MyICMS886Directorate 96 MyICMS886ImplementationCommittee 96 GoingForwardin2007 99Mobile Number Portability (MNP) 100Numbering Regulation 100Developments on Content 100 RoleofMCMCinNetworkedContentDevelopment 101Network Security 102 DigitalSignature 102 PrepaidRegistrationExerciseinMalaysia 104Cybercities 106 TheRoleofMCMCinCybercities 107 SpecificStateswithProposedCybercities 107

Enhancing Partnerships 110

Forums under the CMA 110 CommunicationsandMultimediaConsumerForumofMalaysia 110 CommunicationsandMultimediaContentForumofMalaysia 112 MalaysianTechnicalStandardsForumBerhad 112 MalaysianAccessForumBerhad 113Courier Industry Forum 113Universal Service Provision (USP) 114 OverviewofUSPProgramme 114 USPRolloutGroupandStatus 117 LookingAhead 120 USPFund 124Progress of Time 1 and Time 2 Implementation 126 IndustryImpact 129Awareness Campaigns 131Standards 133 CertifyingAgency 133Spectrum Research Collaboration 135

Steps Into The Future – An Outlook 138

Chapter

5

6

7

Appendices 140

List Of Figures 156

Contact Us & Secretariat Information 160

�

For the lastfiveyears, theMCMChasbeenpublishing the IndustryPerformanceReportasstipulatedunderChapter15,PartVoftheCommunicationsandMultimediaAct,1998(CMA);reportingtheindustryandregulatorydevelopments,includinghighlightsofthechangesintheindustrysincethemigrationof licenseesin1999/2000tothecurrent licencestructureunderCMA. The reportalso includesdevelopmentsunder thePostalServicesAct,1991and theDigitalSignatureAct,1997ofwhichMCMCplaystheroleofregulatoraswell.

TheCommissionisindeedpleasedtopresentoursixthIndustryPerformanceReportfor2006.Thereport,with the themeof“RegulatingEffectivelyForSuccessfulTransformations”noteschangeseffectedtoacceleratesuccessofthecommunicationsandmultimedia(C&M)industryinMalaysia.TheC&Mindustryinourcaseincludesthetelecommunications,broadcastingaswellaspostalservices.DevelopmentsincludethelaunchoftheMyIXorMalaysianInternetExchange;theregistrationofprepaidusers;theprogressofTime1andTime2implementationfornationwidecellularcoverageonintegratedeffortsbasiswithindustryandstategovernments;the2.3GHzspectrum,withexpectationof itsawardin2007;andgroundworkunderwayforimplementationofmobilenumberportabilityinthecountry.

Regulatory monitoring continues on the implementation of 3G and for the new spectrumassignmentsof3Gawardedin2006.Competitionandaccessissuesarerecurringphenomenainthechangingindustryenvironment,andrequiredetailedassessmentanddeliberationinitsfacilitationtoensurealevelplayingfield.

Meanwhile, as the domestic operators are successfully reaping from overseas operationsacquiredoverthelastfewyears,thedomesticmobilemarketstillhaswidepotentialinamarketmaturingtowardsanincreasedavenuefordifferentiationofservices,cash-inoncustomerloyaltyinwaystoreducechurn,andstrifeforhigherqualityofserviceinexistingandnewemergingservices suchasmobileTV, InternetProtocol TV (IPTV) and interactivity inbroadcast. Thepostalserviceisseekingnewrevenuestreamstowardsrejuvenationandsustainedearnings.Amidstallthis,thedigitaldivideremainsaprimefeaturetoensuretheavailabilityofservicestoallusersirrespectiveoflocation.Furthermore,themovementtobroadbandforthenationisongoingwithaimstoincludemitigating“broadbanddivide”moresointhehighlypopulatedanddevelopedKlangValleyarea.

Strategically,theMyICMS886,whichisablueprintfortheindustry’sdevelopmentintheperiod2006to2010andofficiatedbytheMinisterinDecember2005,hashadin2006,theMCMCandallpartiesconcernedcreatingawarenessoftheneedforalignmentinitsimplementationacrosstheindustryandrelatedsectors.

So far, the industry’sdevelopmenthas involvedconcertedeffortsofallpartiesconcerned -industryplayers,governmentanditsagencies;alsothevendors,manufacturers,andevenusersasstakeholders.Thereisvigilanceforchangestocome,institutingchangesforbetterandmorerobustbusinessmodelsinthecommunicationsservicesarena.Theseinturnaffect“workstyles”and lifestyleswithengagingorcaptivatingnewandemergingcommunicationsdevicesandplatforms,whichareable tocatalysenewbusinessesandaccelerateor rejuvenate theold;shapepublicsectorimprovementsandgrowthaswellassharpennationalcompetitivenessandsustaineconomicgrowth.

TheMCMCwelcomesanycomments,enquiries,suggestionsandfeedbackontheinformationpresentedintheIndustryPerformanceReport.MCMC’scontactinformationisavailableonthelastpageofthisreport.

DatukDr.HalimShafie

Message From The Chairman

�

Executive SummaryCha

pter 1

ThestillresilientMalaysianeconomy,inthefaceofreiterativeconcernsoffuelhikes,inflationarypressuresandanoverallslowingglobaleconomy,hasmanagedtolendsteadysupporttothegrowthofthecommunicationsandmultimedia(C&M)industryovertheyears.TheC&Mindustrycomprisesthetelecommunications,broadcastingaswellaspostalservices.TheMalaysianeconomicgrowthisexpectedat6%in2007(2006:5.8%)–apaceinlinewiththegrowthratedesired in the Ninth Malaysia Plan (9MP) for propelling national development activities andimplementationofitsfarreachinginitiatives.

By way of contribution to the market capitalisation of the country, the public-listed C&Mcompanies comprising the integrated telecommunications service providers, the broadcastserviceprovidersofFree-To-Airtelevision(FTATV)andpay-TV,andthepostalservicescapturealtogetheramarketcapitalisationofRM87.3billion,up18.5%fromRM73.7billionin2005.Thepublic-listed C&M companies constitute 10.3% of the Bursa Malaysia market capitalisation(2005:10.6%).

Intermsofrevenue,theC&McompaniesgarneredRM31.7billionin2006(2005:RM26.8billion).Overallgrowthissupportedbyrevenuefromoverseasoperations(16%contributionin2006).For the bigger players, Telekom Malaysia Berhad (TM) and Maxis Communications Berhad(Maxis), thestrategicmovetoprovide theircoreservices in fastergrowingregionalmarketsoverthepasttwotothreeyearshavebornefruitsignificantlyin2006,especiallyinthemidstofamaturingmobilemarketinMalaysia.Overall,theC&Mindustrycontributes9.6%tothecountry’sGDP.

Adexforthecountryappearsrelativelystable,withindustryexpertsforecastingadexofRM4.8billionin2007(2006:RM4.7billion).AggregaterevenuepostedbytheCMAlicenseeslistedonMESDAQmarketof the localstockexchange ismorethanRM561million (2005:RM300million). Postal servicesgarnered revenueofRM822million in2006,whilecourier servicespostedRM1.1billion.

Cellularmobilepenetrationinthecountrywas72.3%in2006(2005:74.1%).Prepaidgrowthhasmoderatedtoanegativegrowthof3%in2006(2005:39.5%)whilstpost-paidgrowthhasincreased17.2%in2006(2005:11.5%).Thisisduetoprepaidregistrationexercisein2006andperhapsbetterpackageforpost-paidservicesincontrast.

Fixed line substitution by mobile cellular phone continues. Connections by DEL showspenetrationrateof16.1%in2006(2005:16.6%).Broadbandconnectionsamountedto879,200subscribersor3.3%penetrationratein2006(2005:1.9%),andthisisabout11%byhouseholdpenetration.3Gsubscriberstotalled406,717or1.53%penetrationatend2006.Internetdial-upservice,however,isslowontake-upwithestimatesat3.8millionsubscribersor14%basedonpenetrationrate(2005:3.7millionsubscribers;13.9%penetrationrate).IPTVandmobileTVarestillemergentservicesintheMalaysianscene.

ExecutiveSummary

�

TheMultimediaSuperCorridor,aptlyrenamedMSCMalaysiainApril2006,continueswithitsPhase2(2004-2010)developmentthatincludesexpansionoftheMSC-statuswebtosimilardevelopmentcorridorsacrossthecountry.Inlinewiththis,thevariouseconomicdevelopmentcorridorsintheNorthern,EasternandSouthernregionsofPeninsularMalaysiahavealreadybeenspecifiedassuchintheBudget2006/2007.Digitalcertificatesissuedunderthepurviewof the Digital Signature Act, grew 147.6% in 2006 to 415,641 (2005: up 46.1% to 167,847certificates)duemainlytosecurityrequirementfrome-FilingexercisefortaxreturnsintroducedbytheInlandRevenueBoard.

Thecommunicationsandmultimedia industry inMalaysiahasmoved forward,with thefirstconvergencelawofitskindsinceeightyearsago.Today,thelicensingregimeundertheCMAcontinuestobetestedforrobustness.WhilethisisbuttheorderofthedayforMCMC,theserviceprovidershaveyettotakefulladvantageofthemonetarysavingsavailableintheCMAenvironment such as licence fee rebates provision through the implementation of specifieddevelopmentexpenditures.

Theyear2006,atleastfromtheregulatoryperspective,wasayearofregulatingeffectivelyforsuccessfultransformationsintothefuture.Thisisexemplifiedbytheinitiativessuchasfurtherprogress of Time 1 and Time 2 implementation for nationwide cellular coverage; spectrumresearchcollaboration;networksecurityinitiativesofprepaidregistrationrequirement;MyICMS886initiatives;continuedvigilanceonqualityofservice,enforcementactivities,andofcourse,theinitiativesundertheUniversalServiceProvision(USP)forlesseningthedigitaldivideinthecountry. Thesedevelopmentsultimatelypave theway forneworalternativewaysofdoingbusinessintheconvergingenvironmentofthecommunicationsandmultimediaindustryaswellastoexpandthecommunicationsservicesas“abasicdependable,reliableandneedlesstosay,availableutility”.

WithTime1completed,Time2was79%completedin2006.Whiledelaysinvariousquartersstillexist,thesearebeingmitigatedthroughvariousmeanssuchaslicensing,stategovernmentco-operation,infrastructuresharingandtheuseofgovernmentlandasanalternativeto“difficult”privatelandacquisitionfortowersites.

MonitoringandenforcementactivitiesoftheMCMCcontinuewithoffenderschargedincourtorfacingcompound.In2006,theprepaidregistrationexercisecompletedinDecemberwouldfacilitate MCMC enforcement activities as well as law enforcement and national securityactivitiesbypoliceandotherenforcementauthoritiesnationwide.

ThemandatorystandardonQoSisinitsthirdyearofimplementationin2006.Resultsshowthatwhilecomplianceeffortshaveoverallbeensteppedupby licensees, there isstillmuchroomforimprovementincertainareas,whichneedadditionalattentionbyserviceproviders.Generally,whiletheQoSstandardsaremandatory,theserviceprovidersshouldfarebetteriftheystrivetoexceedthestipulatedbenchmarkratherthan,perhapsworkto“justmeeting”thestandardsset.Afterall,excellentqualityofservicebenefitstheirservicesreputationdirectly.

Resourcemanagement in theareasofspectrumandnumbering remainscrucialasefficientusage supports national development to ensure long term economic resilience and futurecompetitiveness. In 2006, spectrum research and collaboration activities have been givenemphasisamidsttheon-goingactivitiesofspectrummonitoring,internationalcoordinationandthevariousassignmentsassociatedwithspectrumusage. Also,anewSpectrumPlanwaspublishedinNovember2006.

ExecutiveSummary

�

In2006,theremainingtwo3GspectrumblockswereassignedtoTTdotComBerhadandMiTVCorporationSdnBhd(MiTV)ontopofthoseforTMandMaxiseffectivein2003.Inrespectofnumberingresource,theMCMCpublishedtheNationalElectronicandAddressingPlan(NEAP)inJanuary2007.ThistogetherwiththeNumberingRegulations,whichisinthefinalstagesofdevelopment,willarmtheMCMC,theindustryandotherstakeholders,withaclearbasisofnumberingenvironmentforderivingtheirbusinessmodels.MobilenumberportabilityisintheoffinginthecomingyearinlinewiththeMinister’scalltoacceleratethismatterintheinterestofcompetitiveforcesandspurringthemarketforward.

Asnewservicesemergeandolddeliveryplatformsupgradetoavailhigherspeedsorbandwidthandagreatervarietyofofferingsandchannels,theaspectofcontentdevelopment,includinglocalcontent,needstobehighlighted.ForMCMC,contentmonitoringandregulationisanongoingtask,whilecontentdevelopment isa role for initiationashighlighted in2006. TheContentForumhadin2006receiveditsfairshareofcomplaintsforresolution.Fromthecomplaintsperspective,theavenueforrecourseisclear–firstcomplaintorespectiveserviceproviders;thentotheContentForumandalsoMCMCifmattersremainoutstanding.Broadcastingservicesin2006sawtheintroductionofanewTVstationreminiscentlycalledTV9andanewradiostation,HotFM,bothfromtheMediaPrimagroup.

AccesstoservicesundertheaccessregimeoftheCMAisadynamicareaofmonitoringandvigilancefortheMCMC.Withtheexpansionoftheaccesslisteffectivein2005,monitoringitsdevelopmentsandobtainingfeedbackontheirstatusandsuccessof implementationareMCMC’stasksforattention.Overall,theaccessregimeservestoprovidegreatertransparencyintheprovisionofaccesstokeyservicestherebyfacilitatingafairandequitableenvironmentandchoiceofservicestoend-users.

Asisfor2005,therequirementformorepartnershipsandcollaborationsinmanyareasremainsevermorecrucialin2006andbeyond,especiallysoasconvergencetakesfurtherroot.Thisisparticularlysointheareaofstandardsandstandardsdevelopment;tradenegotiationsoffreetradeagreementsandfromamoremicroperspective,thedomesticandinternationaleventsof the MCMC,be it for creating awareness, fulfilling national requirements suchasprepaidregistrationandinternationalactivitiessuchasInternationalTelecommunicationsUnion(ITU)recommendationsordiscussionsinAsiaPacificTelecommunity(APT)meetings.

Thegovernment’srecognitionforanacceleratedandcoordinatedplanforgettingconnectedtodayisexemplifiedintheMyICMS886,whichisoneofthegovernment’sstrategiestopropelinformationandcommunications technology (ICT) in thecountry. Thegoalsand targetsasspecifiedintheMyICMS886aresettogetherbythegovernmentaswellastheindustry.Goalalignment inplanningandcarriedthrough inexecutionand implementationstages iskey toachievingoverwhelmingsuccessatjourney’send.

�

Indicators2005(%)

2006 (e)

(%)2007 (f)

(%)RealGDP(annualchange) Sectors-Agriculture,livestock,forestry,fishing -Mining&quarrying -Manufacturing -Construction -ServicesConsumerPriceIndex(CPI)ProducerPriceIndex(PPI)UnemploymentRateBudgetDeficitas%ofGDPCorporateTaxRate(%)PerCapitaIncome(currentprices)(RM)PerCapitaIncome(currentprices)(USD)PerCapitaIncomebyPurchasingPowerParity(USD)

5.22.50.85.1

-1.66.53.06.83.53.828

18,0394,763

10,614

5.85.32.47.30.75.7

3.5-4.06.83.53.527

19,7395,353

11,871

6.04.74.56.83.76.0

<3.0-

3.53.426

21,1685,74012,666

MinistryofFinance(MoF)BankNegaraMalaysia(BNM)MalaysianInstituteofEconomicResearch(MIER)AsianDevelopmentBank(ADB)WorldBank

5.85.85.95.85.5

6.0-

5.25.35.5

--

5.5-

5.5-6

GDP Growth Forecasts2006 (e)

(%)2007 (f)

(%)2008 (f)

(%)

(e)-estimate(f)-forecastSource:BankNegaraMalaysia,EconomicReport

Fig.2.1SelectedEconomicIndicators

(e)-estimate(f)-forecastSource:MoF,BNM,MIER,ADB,WorldBank

Fig.2.2GDPGrowthForecasts

Economic Performance of the Industry C

hapte

r 2

MALAYSIAN GDP AT 5.8% IN 2006; 6% 2007

In2006,economicexpansionstrengthenedonthebackofastrongercurrencynotwithstandinghigher inflation and utilities tariff hikes. The economy expanded at a steady momentumregisteringrealGrossDomesticProduct(GDP)growthof5.8%inthethirdquarter,and6.2%(revised)inthesecondquarterof2006.Growthwasunderpinnedbystrongexpansionintheservicesandagriculture sectorsat6.5%and6.2% respectively. Themanufacturingsectorcontributedamoremoderatepaceof7.1%comparedtothepreviousquarter(2Q-06:8.4%).

GiventheresilientdomesticdemandandprojecteddisbursementsunderBudget2006/2007,the outlook for the economy in the fourth quarter remains positive. Bank Negara Malaysia(BNM)isconfidentoftheeconomyachievingtheforecastedGDPgrowthof5.8%in2006.

Selected Economic Indicators

EconomicPerformanceoftheIndustry

�

As part of the government’s efforts to cut its subsidy bill, retail gasoline and diesel pricesincreasedbyasmuchas23%inFebruary2006,beingthefifthrisesinceMay2004.InJune2006,electricitytariffsroseforthefirsttimeinnineyears.Subsequently,inNovember,waterratesalsorosebyasmuchas18%inKualaLumpur,SelangorandPutrajaya.

Headline inflation,asmeasuredbytheConsumerPrice Index (CPI),hitaseven-yearhigh inMarchat4.8%beforeeasingtoa16-monthlowof3%inNovember.BankNegaraMalaysia(BNM)raiseditsOvernightPolicyRate(OPR)twiceduringtheyear2006inFebruaryandAprilbutas inflationeased,BNMmaintainedanaccommodativestancetosupportbusinessandexpansion,keepingborrowingcoststeadyat3.5%.

In2006,theperformanceoftheringgithasbeenmixedagainstmajorcurrencies.IntheperiodfromendSeptember2006to9January2007,theringgitstrengthenedagainsttheUSdollarhittingahighof3.5065on9January2007.

StocksonBursaMalaysiaralliedstronglyinthelaterhalfof2006;theKualaLumpurCompositeIndex(KLCI)hitahighfortheyearat1,101.70pointson11December2006.Investorsentimentsimproved on the back of encouraging developments such as better-than-expected secondquarterGDPgrowth,Budget2006/2007goodiessuchascorporate taxcuts,amidsteasinginflationarypressures.

MIER’sBusinessConditions Index (BCI)andConsumerSentiments Index (CSI) for the thirdquarterof2006areboth trendingupwards. The trend indicates thatoptimism is improvinginthemanufacturingsectordespitetheuncertaintiesintheexternalenvironment,albeitwithexpectationsofimpendingmoderationinproduction,localandexportorderslaterintheyear2006.ConsumersentimentsalsoremainedupbeatasincomeandemploymentconditionsgetaboostfromprovisionsinBudget2006/2007.However,risingcostoflivingandfestivitiesinthe fourthquarterof2006hashadconsumers tighteningpursestringsespeciallywherebigticketitemsareconcerned.

6

5

4

3

2

1

0

Per

cent

age

Consumer Price Index & Overnight Policy Rate

ConsumerPriceIndex OvernightPolicyRate

Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06

Source:BNM

Fig.2.3ConsumerPriceIndex&OvernightPolicyRate

3.4 3.53.2 3.2

4.8 4.6

3.9 3.9 4.1

3.3 3.3 3.1 3.03.4 3.0 3.03.5 3.5

3.253.5

3.5 3.5 3.5 3.5

3.253.25


�

Ontheinflationfront,thereisexpectedfurtherriseintollratesin2007aspertheconcessionagreementswithtolloperators.Nevertheless,BNMexpectsinflationtofallbelow3%in2007.Publicexpenditure,asprovisionedundertheNinthMalaysiaPlan(2006-2010),anditseffectsare expected to be felt in 2007 though contingent on timely and effective implementation.Hence,intermsofgrowth,thegovernmentenvisagessteadyexpansionof6%in2007.ThisisinlinewiththetargetedGDPgrowthundertheNinthMalaysiaPlan.

CONTRIBUTION OF C&M COMPANIES TO BURSA MALAYSIA

The overall market capitalisation of the domestic stock market increased 22% to a totalof RM848.7 billion in 2006. In contrast, the public listed C&M companies comprisingthe integrated telecommunications service providers, the broadcast service providers ofFTA TV and pay-TV, and the postal services of Pos Malaysia Services and Holdings Bhd(PosM) captured altogether a market capitalisation of RM87.3 billion. This is 18.5% higherthanthemarketcapitalisationofRM73.7billionrecordedatend2005.ThepubliclistedC&Mcompaniesconstitute10.3%ofBursaMalaysia’smarketcapitalisation(2005:10.6%).

MIER Consumer Sentiments & BusinessConditions Indices versus GDP Growth

140

120

100

80

60

40

20

0

Ind

ex P

oin

ts

CSI BCI GDPGrowth

1Q-04

7.9%

2Q-04 3Q-04 4Q-04 1Q-05 2Q-05 3Q-05 4Q-05 1Q-06 2Q-06 3Q-06

8.5%

6.8%5.9% 6.1%

4.1%

5.3% 5.2%5.9%

6.2% 5.8%

9

8

7

6

5

4

3

2

1

0

Source:MIER,MCMC

Fig.2.4MIERConsumerSentiment&BusinessConditionsIndicesversusGDPGrowth

WorldUSJapanEurozoneAsiaChinaWorldTradeVolume

3.01.9

-0.30.96.69.13.3

3.92.71.80.86.7

10.05.4

5.33.92.32.17.8

10.110.6

4.93.22.61.37.4

10.27.4

5.13.43.22.47.2

10.08.9

4.92.42.31.87.09.07.6

% change 2002 2003 2004 2005 2006e 2007f

GDP Growth Forecasts of Major Economies

(e)-estimate(f)-forecastSource:MIER

Fig.2.5GDPGrowthForecastsofMajorEconomiesG

row

th (%

)


10

Communications and Multimedia Market Capitalisation 2006

BursaMalaysiaMarketCapitalisation(RM848.7billion)

Others89.7%

C&MSector(RM87.3billion)

10.3%

Maxis3.0%

DiGi1.4%

Time0.2%

PosM0.3%

MediaPrima0.2%

ASTRO1.3%

TM3.9%

Source:MCMC,Bloomberg

Fig.2.6C&MCompaniesMarketCapitalisation2006

Market Capitalisation - Communications& Multimedia versus Bursa Malaysia

RM

(bill

ion)

2003

640

900

800

700

600

500

400

300

200

100

0

579.1

722 695

849

640.8 621.6761.4

60.9 81.2 73.7 87.3

2004 2005 2006

C&M OthersonBursaMalaysia

Source:MCMC,Bloomberg

Fig.2.7MarketCapitalisation-C&MSectorversusBursaMalaysia

Themaintelecommunicationsoperatorscontributed8.5%toBursaMalaysia’scapitalisation.PosMcontributed0.3%whichisthesameasthatfor2005.AllAsiaNetworksplc(ASTRO)(satellitepay-TVoperator)andMediaPrimaBerhad(MediaPrima)(FTATVoperator)contributed1.3%and0.2%respectively.


11

C&M INDUSTRY REVENUE OVERVIEW

The C&M industry comprising the major sectors of telecommunications, broadcasting, andpostalservices togetherpostedcombined revenueofRM31.7billion for theyearending31December2006.ThisexceedstheRM26.8billionrecordedin2005by18.3%.

Thetelecommunicationscompaniescommandedthelion’sshareoftheoverallC&Mrevenueat88%marketshareorRM28.1billion,followedbybroadcastingandpostalservicesat9%(RM2.7billion),and3%(RM0.8billion)respectively.

Telecommunications serviceproviders are representedbymain telecommunicationsplayersTelekom Malaysia Berhad (TM), Maxis Communications Berhad (Maxis), DiGi.Com Berhad(DiGi)andTimedotComBerhad(Time).

TM

Maxis

DiGi

Time

ASTRO

Media Prima

PosM

0 10 20 30 40

RM (billion)

C&M CompaniesMarket Capitalisation in Ringgit

TM

Maxis

DiGi

ASTRO

PosM

Time

MediaPrima

Total

C&M Companies Market Capitalisation RM (billion)

32.4

21.0

5.9

10.1

2.1

1.2

1.0

73.7

33.1

25.7

11.4

10.7

2.6

1.9

1.9

87.3

2.2

22.4

93.2

5.9

23.8

58.3

90.0

18.5

2005 2006

%Change20062005

Source:MCMC,BursaMalaysia

Fig.2.8C&MCompaniesMarketCapitalisation

C&M Revenue Market Share 2006

TM52%

MediaPrima1.5%

ASTRO*7%

Time1%

DiGi12%

Maxis24%

PosM2.5%

C&M Industry Revenue Breakdown by Sectors 2006

MajorTelcosRM28.09billion

88%

PostRM0.82billion

3%

Broadcasting*RM2.74billion

9%

*AdjustedandannualisedbasedonthirdquarterresultsSource:MCMC,Industry

Fig.2.9C&MIndustryRevenueMarketShare2006

*AdjustedandannualisedbasedonASTROthirdquarterresultsSource:MCMC,Industry

Fig.2.10C&MIndustryRevenueBreakdownbySectors2006


12

Telecommunications Sector

Thetelecommunicationssectorrecordedrevenuegrowthof18.8%fortheyearendingDecember2006.

RevenuemarketshareleaderTMmaintaineditspolepositionwithRM16.4billionor59%oftotalmarketshareofRM28.1billion,followedbyMaxisandDiGiat27%and13%respectively.

Telecommunications Companies Revenue

TMgrouprevenuestoodatRM16.4billionfor2006(2005:RM14billion)postingayear-on-yearrevenuegrowthof18%.ThegrowthwasdrivenmostlybyoverseasoperationsandfromitsdomesticInternetandmultimediasegment.

Domesticmobilecellulararm,Celcom(Malaysia)Berhad(Celcom),postedrevenueofRM4.4billionasatendof2006compared toRM4.3billion for2005. Mobile revenue from foreignoperations contributed 13% or RM1.8 billion of total group revenue for 2005. In contrast,contributionfromthesamesegmentincreasedto25%orRM4.1billionfor2006.TheGroup’srevenuefromitsmobilesegmentsconstituted52%surpassingitstraditionalfixedlinerevenueof46%.Overall,groupoperatingprofitmarginin2006was21.3%.

Telecommunications Sector Revenue 2005

Telecommunications Sector Revenue 2006

TM62%

Time2%

DiGi11%

Maxis25%

TM59%

Time1%

DiGi13%

Maxis27%

Source:MCMC,Industry

Fig.2.11TelecommunicationsSectorRevenue2005


Fig.2.12TelecommunicationsSectorRevenue2006


1�

TMR

M (m

illio

n)

16,500

11,500

6,500

1,500

-3500

35

30

25

20

15

10

5

0

Op

erat

ing

Pro

fit

Mar

gin

(%)

Revenue OperatingProfitMargin

2002 2003 2004 2005 2006

9,83411,796

13,251 13,94216,399

18.215.8 14.2 13.1

21.3


Fig.2.13TMRevenueversusOperatingProfitMargin2006


Fig.2.15TMRevenuebySegment

TM Revenue by Segment 2006: RM16.399 billion

FixedLine&Data41%

Internet&Multimedia5%

Others2%

MobileDomestic27%

MobileForeign25%

Celcom

RM

(mill

ion)

3,500

3,000

2,500

2,000

1,500

1,000

500

0

20

15

10

5

0

-5

-10

-15

Op

erat

ing

Pro

fit

Mar

gin

(%)


2002 2003 2004 2005

2,4002,590

3,179 3,016

1.9

16.7

-12.3

15.8


Fig.2.14CelcomRevenueversusOperatingProfitMargin2005


1�

Maxis Revenue by Segment 2006: RM7.707 billion


Fig.2.17MaxisRevenuebySegment

MobileForeign10%

FixedServices2%

MobileDomestic84.9%

InternationalGatewayServices3%

Others0.1%

Maxis revenue grew 21% from RM6.371 billion in 2005 to RM7.707 billion at end of 2006.MalaysianandIndianoperationsshowencouraginggrowthbywayofrevenueandnumberofsubscribers. Indonesiansubsidiary,PTNatrindoTeleponSeluler, isontrack forcommercialrolloutbutinthemeantime,hasincurredstart-uplosses.DomesticSMSvolumegrewby103%whilemobiledatarevenuegeneratedgrowthof29%orRM1.344billion(2005:RM1.044billion).Nevertheless,operatingprofitmarginforyear2006moderatedto36.8%from38.5%in2005.


Fig.2.16MaxisRevenuebyOperatingProfitMargin

Maxis

RM

(mill

ion)

10,000

8,000

6,000

4,000

2,000

0

Op

erat

ing

Pro

fit

Mar

gin

(%)

100

80

60

40

20

0


2002 2003 2004 2005 2006

3,769

35.4

4,6805,689

6,3717,707

29.740.7 38.5 36.8


1�

DiGicontinueditsstrongrevenuegrowthtrend,rising26.7%toRM3.653billionatend2006fromRM2.884billiongarneredfor2005.Datarevenuefor2006amountedtoRM650million,agrowthof41%fromRM460millionin2005.Operatingprofitmarginstoodat29.2%.

Timerevenueedgedlowerfortheyear2006duetolowerwholesalevoicerevenueandlaggingpayphonerevenue.ThecompanypostedrevenueofRM335million,adropofRM125millionfromRM460millionin2005.Currentlydevelopingnewgrowthareasforitsbusiness,Timeisreportedalsoundertakingvoluntaryseparationschemeaspartof its restructuringplanandworkforceoptimizationinitiatives.

In2006,itswholly-ownedsubsidiary,TTdotComSdnBhd,wasawardedtheThirdGeneration(3G)spectrumassignmentandhasplans foracommercial launch in thesecondquarterof2007usingHighSpeedDownlinkPacketAccess(HSDPA)networkswhichenablehigherdatatransferspeedfor3Gmobileservices.


DiGi

RM

(mill

ion)

4,000

3,000

2,000

1,000

0

Op

erat

ing

Pro

fit

Mar

gin

(%)

100

80

60

40

20

02002 2003 2004 2005 2006

1,2901,714

2,234

2,884

3,653

15.9 15.622.8 23.4

29.2


Fig.2.18DiGiRevenuebyOperatingProfitMargin

DiGi Revenue by Segment 2006: RM3.653 billion


Fig.2.19DiGiRevenuebySegment

Others4%

CellularMobile96%


1�

Broadcasting Sector

Thebroadcastingsector is representedby listedentitiesFTATVoperatorMediaPrimaandASTRO, a subscription-based multi-channel satellite TV service provider. The combinedrevenueofthecompaniesamountedtoRM2.7billion.

Broadcasting Companies Revenue

MediaPrima,anintegratedmediainvestmentgroup,hasfourofthecountry’sFTATVstationsinitsstable,namely8TV,TV3,NTV7andTV9.MediaPrimaalsoownslocalradiostationsFly.fmandHotFMaswellasFTATVnetwork,TV3inGhana.

MediaPrimapostedrevenueofRM533millionfortheperiodunderreview,anincreaseof33%fromRM400millionin2005.Operatingmarginforthecompanystoodatasteady22%fortheperiodandcomparesfavourablyto19%operatingprofitmarginin2005.

RM

(mill

ion)

600

100

-400

-9002002 2003 2004 2005 2006

916799

578460

335

-290

-44

-848

-203 -177

Time Revenue and Operating Profit/Loss 2002 - 2006

Revenue OperatingProfit/Loss


Fig.2.20TimeRevenueandOperatingProfit/Loss

300

0

-300

RM

(mill

ion)

Q1 Q2 Q3

119

-42

122

-40

120

-42

Time Revenue and Operating Loss 1Q-4Q 2006

Revenue OperatingLoss


Fig.2.21TimeRevenueandOperatingLoss1Q-4Q2006

-52

76

Q4


1�

*AnnualisedSource:MCMC,Industry

Fig.2.23ASTRORevenueandOperatingMargin

ASTROforgedahead,postingRM1.65billionrevenuefortheninemonthsperiodendingOctober2006(basedonfinancialyearending31January2007)-growingitsrevenueby11.2%fromthesameperiodin2005.Operatingprofitmarginisencouragingat21.5%.

The company’s pay-TV service start-up in Indonesia, PT Direct Vision, is currently awaitingformalauthorisationtouseMEASATforitsDTHservices.Athome,ASTROfurtherreinforceditsleadershippositionwiththelaunchofadditionalchannelsandmorearebeingplannedgiventherecentlaunchoftheMeasat3satellite.

^16monthsending31DecSource:MCMC,Industry

Fig.2.22MediaPrimaRevenueandOperatingMargin

RM

(mill

ion)

550500450400350300250200150100500

100

80

60

40

20

0

Op

erat

ing

Pro

fit

Mar

gin

(%)

2003^ 2004 2005 2006

Media Prima

371328

400

533

62

19 19 22


ASTRO

RM

(mill

ion)

2,200

1,700

1,200

700

200

-300

1,143

1,419

1,716

2,0132,195

-159

149299 274

473

FYE Jan-03 FYE Jan-04 FYE Jan-05 FYE Jan-06 FYE Jan-07*

Revenue OperatingProfit/Loss OperatingProfitMargin

-13.9

10.5

17.4 13.6

21.5

40.0

30.0

20.0

10.0

0

-10.0

-20.0

Op

erat

ing

Pro

fit M

arg

in (%

)


1�

PosM

RM

(mill

ion)

900

800

700

600

500

400

300

200

100

0

50

45

40

35

30

25

20

15

10

5

0

Op

rera

ting

Pro

fit M

arg

in (%

)

645 648694

787822

2002 2003 2004 2005 2006

11.8

4.38.5

13.1 12.0

Revenue OperatingMargin


Fig.2.25PosMRevenueandOperatingMargin

Postal Services Sector

ThepostalservicessectorcomprisesthepostalservicesofPosMandthecouriersegment,whichisconstitutedby113licensedcouriercompanies(asat15November2006).

Postal Revenue

PosMrecordedtotalrevenueofRM822millionfortheyearending31December2006.Thisisagrowthof4.4%fromRM787millionrecordedin2005.Thecompany’soperatingprofitmargindroppedslightlyto12%intheperiodconcernedcomparedto13.1%for2005.

ASTRO Revenue* by Segment FY Ended 31 January 2007

SatelliteTV89%

Others2%

Radio7%

Librarylicensing&distribution

2%

*AnnualisedSource:MCMC,Industry

Fig.2.24ASTRORevenuebySegment


1�

Courier Services Revenue

Thecouriercompanies inMalaysiaareamixofhomegrowncompaniesaswellasoverseaslinkedcompanies.ThemajoroverseaslinkedcompaniesareDHL,FederalExpress(FedEx),UnitedParcelServices (UPS)andTNTExpress (TNT)whilesomeof themajorhomegrowncompanies are City Link Express (City Link), Nationwide Express (Nationwide), GD Express(GDEX)andABXExpress(ABX).

Intermsofrevenue,thetoptencourier companies recordedRM1.1 billion, a 7.6% increasecompared to 2004. Thesignificant revenuecontributorsare DHL (32%), FedEx (26%),UPS (16%),CityLink (7%)andNationwide(6%).

Noticeably,DHLovertookFedExintermsofthetoptenposition,having increased market sharebyRM0.3billionto32%in2005from29.6%in2004.FedExisinsecondposition.

Top 10 Courier Services Companies 2005(Capturing RM1.1 billion Revenue)

GDEX4%

TNT4%

Nationwide6%

CityLink7%

UPS16%

FedEx26%

DHL32%

KTMDistribution1%

UdaraExpress2%

ABX2%


Fig.2.26Top10CourierServicesCompanies2005

Top 10 Courier Services Companies by Revenue

RM

(‘00

0)

350,000

300,000

250,000

150,000

100,000

50,000

0

2004 2005


Fig.2.27Top10CourierServicesCompaniesbyRevenue

KTMD

istrib

ution

UdaraE

xpre

ssABX

GDEXTN

T

Nation

wide

CityL

inkUPS

DHL

FedEx

Digital Signature Usage

The total numberofdigital signaturecertificates issuedasat 2006 is0.4million. This is a148%jumpfrom2005to2006,adding0.2millionintermsofissuanceofdigitalcertificates.Such increasewasmainlydue to thee-Filingexercise introducedby InlandRevenueBoard(IRB)incollaborationwithoneofthelicensedCertificationAuthorities(CA),DigiCert.OnlinesubmissionoftaxformstotheIRBovertheInternetrequireslegalbindingdigitalsignatureforsecurityprecautionsandotheradministrativereasons.


20

Certification Authorities – Revenue


Fig.2.30DigitalCertificateRevenue

RM

(mill

ion)

10

8

6

4

2

0

Digital Certificate Revenue

6.77.8 7.9

4.1 5.1 4.8

2.6 2.7 3.1

2003 2004 2005

MSCTrustgate DigiCert

Digital Signature Growth160

140

120

100

80

60

40

20

0

Per

cent

age

(%)

2003 2004 2005 2006

57.1

72.1

46.1

147.6


Fig.2.29DigitalSignatureGrowth

8,893

77,145

329,603

415,641

7,584

36,971

22,209

66,764

7,903

55,620

51,388

114,911

8,194

63,222

96,431

167,847

2003 2004 2005 2006Type

Individual

Corporate

Government

Total


Fig.2.28DigitalSignatureUsage

Intheinitialyears,digitalsignatureswaswidelyusedinG2B(governmenttobusiness)andB2B(businesstobusiness).TheindividualusageofdigitalsignaturesisstilllowcomparedtoG2BandB2B.Itisbelievedthatfortheforthcomingyears,thefigureswillincreasetremendouslywithmoreG2C(governmenttocitizen)applicationssuchase-Passport.

IntermsofrevenuepostedbytheCA,MSCTrustgatepostedasteadygrowthwhileDigiCertshowed a decline when compared to 2004. However, both companies posted combinedrevenueofRM7.9millioncomparedtoRM7.8millionin2004.


21

MESDAQ - MCMC LICENSEES

The total number of MESDAQ (Malaysian Exchange of Securities Dealing and AutomatedQuotation)listingis128companiesasatendDecember2006.Outofthis,14companiesareMCMClicensees(11%).

MostoftheselicenseesareinthelicencecategoryofApplicationsServiceProviders(Class)orASP(C).ASP(C)licenseesarethosethatprovideservicessuchasdiscountedvoiceservices,data services, content based services, electronic commerce and others. Most of theseapplicationservicesprovidersareinbusinessesthatservicesendusersdirectly.

ThenewMCMClicensedcompanylistedonMESDAQasat27April2006isAirocomTechnologyBhd.Theircorebusinessistheprovisionofwirelesscommunicationssolutionsandservicesinthefieldofmessagingtechnology.Overall,theholdingcompanyoftheselicenseespostedrevenuetotallingRM582.1million,withtotalpaid-upcapitalamountingtoRM252.7million.

S/B-SdnBhdBhd–BerhadSource:Bloomberg

Fig.2.31MCMCLicenseesListedonMESDAQ2006

eBCapitalBhdAirocomTechnologyBhdAKNMessagingTechnologiesBhdasiaEPBhdDVMTechnologyBhdIntelligentEdgeTechnologiesBhdMNCWirelessBhdMobifBhdN2NConnectBhdNasionComHoldingsBhdNextnationCommunicationBhdREDtoneInternationalBhdREDtoneInternationalBhdREDtoneInternationalBhd

eBTechnologies(M)S/BAirocomTechnologyBhdAKNMessagingTechnologiesBhdasiaEPBhdDVMIntellisourceS/BIntelligentEdgeSolutionsS/BMNCWirelessBerhadMobifGlobalS/BN2NConnectBhdNasionComS/BNextnationNetworkS/BREDtoneTelecommunicationsS/BREDtoneMarketingS/BREDtoneMytelS/B

NFP(I)LastMile,NSP(I)&ASP(C)ASP(C)ASP(C)ASP(C)ASP(C)NFP(I)LastMileandNSP(I)ASP(C)ASP(C)ASP(C)NSP(I)andNFP(I)LastMileASP(C)ASP(C)NSP(I)ASP(C)

Holding Company MCMC Licensees Types of Licenses

*For15monthsending31May06;changeoffinancialyearendfrom28Febto31MaySource:Bloomberg

Fig.2.32MCMCLicenseesListedonMESDAQ-Revenue

eBCapitalBhdAirocomTechnologyBhdAKNMessagingTechnologiesBhdasiaEPBhdDVMTechnologyBhdIntelligentEdgeTechnologiesBhdMNCWirelessBhdMobifBhdN2NConnectBhdNasionComHoldingsBhdNextnationCommunicationBhdREDtoneInternationalBhdTotal

Holding CompanyRevenue

RM (million)

1.621.130.710.711.11.5

16.636.37.7

195.067.4

182.4*582.1

2.515.216.420.016.39.19.4

19.913.580.025.225.2

252.7

31/12/200531/12/200530/06/200628/02/200630/09/200531/12/200531/12/200531/12/200531/12/200531/12/200530/4/2006

31/05/2006

2/08/200527/04/200627/01/200316/01/20042/01/2004

18/03/200225/10/200519/05/200428/11/200525/02/200526/08/200509/01/2004

Paid-Up CapitalRM (million)

FY EndingDate Listed on

MESDAQ


22

2004 311.1 298.5 354.8 339.1 360.2 379.1 358.7 396.5 370.7 404.0 372.4 402.8

2005 357.6 299.7 400.4 378.6 379.2 368.0 382.4 389.8 387.5 402.5 360.5 433.7

2006 355.4 281.8 381.9 348.8 386.0 435.7 405.3 425.1 420.2 406.3 418.1 449.6

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

20052004 2006

Adex Month-to-Month 2004-2006 Comparison

RM

(mill

ion)

500

400

300

200

100

0

Source:NielsenMediaResearchService

Fig.2.34AdexMonth-To-Month2004-2006Comparison

MALAYSIAN ADEX 2006

Adex Comparison: General Observations

Source:NielsenMediaResearchService,MCMCNote:2006GDP(%Growth)isanestimate

Fig.2.33AdexandGDPGrowthComparison

Adex and GDP Growth Comparison

RM

(bill

ion)

6

4

2

0

Gro

wth

(%)

20

15

10

5

0

Adex(RMbillion) GDP(%Growth) Adex(%Growth)

2001 2002 2003 2004 2005 2006

3.23.5 3.7

18.9

4.6 4.74.4

3.2

0.3

9.4

4.15.7

7.15.2

4.5

5.8

2.2

Inlinewiththerespectablegrowthoftheeconomy,adexinMalaysiashowedpositivegrowththroughouttheperiodfrom2001until2006,reachingacompoundannualgrowthrate(CAGR1)of8%.Adexin2006iscurrentlyatRM4.737billionandindustryexpertsareforecastinga2%growthin2007.FestivitiessuchastheVisitMalaysiaYear2007promotionscouldkick-upadexandachievetheforecastedgrowth.

Theadexgrowthin2006includeseventssuchastheFIFAWorldCup2006andthelaunchofTV9undertheMediaPrimaGroup.

Adex Month-To-Month Comparison 2004-2006

1CAGR–CompoundAnnualGrowthRate.Thisisaformulatomeasuretheannualgrowthrateoveraperiodofseveralyears.

5.3


2�

ThemonthofDecemberin2006showedthehighestadexachievedcomparedtootheryears,registeringRM449.6million. Notably, thecontributionwasmainly fromtheendofyearsaleeventsandvariousnationalcelebrations.ItisobservedthatthemonthlytrendhasthemonthsofOctoberandDecembercollectinghighestadexofmorethanRM400million,likelyduetothefestiveseasonsduringtheseperiods.

Theprintmedium lost3%of itsmarket share to61% inyear2006,paving theway forTVmediumarrivingat31%,a2%notchhigherfromthatof2005.Radioremainsstatusquowhilethe“othermedium”categorywasonepercentagehigher.

FTA Television and Radio Advertising Revenue

Adex Market Share 2005 Adex Market Share 2006

Print64%

Radio4%

Others3%

Television29%

Television31%

Others4%

Radio4%

Print61%


Fig.2.35AdexMarketShare2005and2006


Fig.2.36AdvertisingRevenueofFTATVandRadioComparison

Advertising Revenue for FTA TV & Radio Comparison

RM

(mill

ion)

1,600

1,400

1,200

1,000

800

600

400

119.7

2001

144.1152.5

168.8 178.2

878.1

193.3

921.9 993.8

1,300.7 1,309.91,477.7

2002 2003 2004 2005 2006

Television Radio

BothFTATVandradioshowedacceleratinggrowthduring2001until2006,registeringanall-timehighadexofRM1.478billionandRM193.3millionrespectivelyin2006,reachingaCAGRof11%and10.1%respectivelyforthe2001-2006period.TheFTATVadvertisementrevenuewasmadepossiblewiththelaunchofTV9plustheremarkablesuccessofTV3andthree-yearold8TV.


2�

Currently rated as the number one FTA TV channel in Malaysia, TV3 collected the highestadvertisementrevenueofRM672millionin2006,agrowthof18.9%from2005.Despitethedecline in growth of 15.5% from 2005, NTV7 remains the second favourite advertising TVstationafterTV3.Sisterchannels8TVandTV9registeredRM225.7millionandRM70.5millionrespectivelyasatend2006.Government-ownedchannelsrakedinatotalofRM229.1millionworthofadexin2006,ofwhichTV2contributedthreequartersofthisrevenue.

*TV9startedoperationsApril2006Source:NielsenMediaResearchService

Fig.2.38FTATVAdvertisingRevenue2004–2006

RM

(mill

ion)

800

600

400

200

0

FTA TV Advertising Revenue 2004-2006

26.6 40.9 54.4

141.1 154.1 174.7

565.1 565.3

672.0

385.7331.9

280.4

*70.5

136.2

215.9 225.7

TV1 TV2 TV3 NTV7 TV9 8TV

2004 2005 2006

FTA TV Advertising Revenue


Fig.2.37FTATVAdvertisingRevenueversusGrowth

FTA TV Advertising Revenue versus Growth

1,600

1,400

1,200

1,000

800

600

400

200

0

35

30

25

20

15

10

5

0

% G

row

th

RM

(mill

ion)

921.9993.8

1,300.7 1,309.9

1,477.7

2002 2003 2004 2005 2006

5.07.8

30.9

0.7

12.8


2�

Radio Advertising Revenue

Radioadvertisingrevenuewitnessedadouble-digitgrowthfrom2001until2002andin2004followed by decelerated growth in 2005. Radio adex chalked up RM193.3 million in 2006representingagrowthof8.5%fromthesameperiodinyear2005.

Radio Advertising Revenue Market Share

*Channel9ceasedoperationsonFebruary2005**TV9(underMediaPrima)startedbroadcaston22April2006n.a.-notapplicableSource:NielsenMediaResearchService

Fig.2.39FTATVStationsRevenueGrowth

TV1TV2TV3NTV7Channel9TV98TV

FTA TV Stations

26.6141.1565.1385.7*46.0

n.a.136.2

-18.2-9.17.8

36.8n.a.n.a.n.a.

40.9154.1565.3331.9

*1.8n.a.

215.9

53.89.20.0

-13.9n.a.n.a.

58.5

54.4174.7672.0280.4

n.a.**70.5225.7

33.013.418.9

-15.5n.a.n.a.4.5

RM (million)

RM (million)

RM (million)

Growth%

Growth%

Growth%

2004 2005 2006


Fig.2.40RadioAdex2001-2006

Radio Adex2001-2006

RM

(mill

ion)

250

200

150

100

50

0

30

15

0

Gro

wth

(%)

RM(million) %Growth

2001 2002 2003 2004 2005 2006

119.7144.1 152.5

168.8 178.2193.318.0

20.4

5.8

10.7

5.6

8.5

Radio Stations Advertising Revenue Market Share 2005

Radio Stations Advertising Revenue Market Share 2006

StarRFM14%

RTM7%

AMP79%

AMP78%

RTM10%

StarRFM12%


Fig.2.41RadioStationsAdvertisingRevenueMarketShare2005and2006


2�

Adex by Sector

**PercentageshareacrossallsectorsSource:NielsenMediaResearchService

Fig.2.43TopTenAdvertisingSectorsComparison

CommunicationsMiscellaneousToiletriesRetailAutomotiveFinanceBeverage(Non-Alcoholic)FoodstuffServiceGovernment,Social&PoliticalOrganisationEntertainment

Sector

1,257.71,238.3

854.7844.5514.0485.4

445.4432.3366.4

364.6350.3

14139965

554

44

MiscellaneousCommunicationsToiletriesRetailAutomotiveFinanceFoodstuffBeverage(Non-Alcoholic)ServiceEntertainmentGovernment,Social&PoliticalOrganisation

622.9639.1420.2408.6243.7229.1198.3

196.2194.2176.6

158.0

141499554

444

3

RM (million)

RM (million)

(%) Share**

(%) Share**

Sector

2005 2006

Top Ten Advertising Sectors Comparison

Radio Advertising Revenue By Stations

EraFMcontinuedtobethefavouriteradiostationamongadvertisersin2006,rakinginRM46.4millionworthofadvertisingrevenue-agrowthof11.3%fromthesameperiodlastyear.EraFMleadstwootherradiostationsintheAMPfamily,namely,MyFMatRM31.4million(8.6%growth)andMixFMatRM25million(negativegrowthof2.3%)asat2006.

Radio Advertisng Revenue by Stations 2006

RM

(mill

ion)

50

40

30

20

10

0

46.4

19.5

11.3

25.031.4

22.0

1.6 1.0 1.5 0.86.1

3.2 1.2 0.57.0 7.2

1.85.8

Era

FM

hitz

.fm

Ligh

t&

Eas

y

Mix

FM

My

FM

red

i988

red

104

.9

KL

FM(R

MS

KL)

Nas

iona

lFM

(RM

S4

)

Trax

xFM

(RM

S4

)

AiF

M(R

MS

5)

Min

nal(

RM

S6

)

Muz

ikF

M(R

MS

Muz

ik)

Sel

ango

rFM

(RM

SS

’gor

)

Sin

arF

M

THR

Xfr

esh

FM

Oth

erR

egio

nal(

RTM

)


Fig.2.42RadioAdvertisingRevenuebyStations2006


2�

Advertisements By MCMC Licensees 2006

MaxistopsasMCMClicenseehavingthehighestadvertisingexpendituretotallingRM151.8million, with highest advertisement spent on their mobile lines services at RM130 million.OnInternetServicesProviders (ISP)services,TM,throughtheirsubsidiaryTMNetSdnBhd(TM Net), spent RM20.5 million on advertisements followed by Jaring and Time at RM0.5millionandRM0.2millionrespectively.Themajorityofthelicenseesandnon-licenseesspendadvertisementontheirmobileinteractiveservices,totallingRM113.2million,thehighestwhencomparedtoothermajorlicensees.

Communications Sector Advertising Medium 2006

PrintTelevisionRadioCinemaOutdoorPoint-of-SalesTOTAL

764.5392.356.310.034.00.5

1,257.6

60.831.24.50.82.7

0.0004100.0

Medium RM (million) Share (%)


Fig.2.44CommunicationsSectorAdvertisingbyMedium2006

Communications Sector Advertising Breakdown 2006

Medium RM (million)

Communications-CorporateAd

Communications-Other

DiscountedCallServices

FixedLineServices

InternetServiceProviders

MobileInteractiveServices

MobileLineServices

Others

TOTAL

43.4

0.9

0.4

3.4

24.2

158.4

316.1

71.1

617.9


Fig.2.45CommunicationsSectorAdvertisingBreakdown2006

RM (million)Services

Celcom DiGi Maxis Time TM ASTRO Jaring Others† TOTAL

MobileLines

MobileInteractive

ISP

FixedLines

Total RM (million)

86.2

13.9

n.a.

1.2

101.3

130.0

21.8

n.a.

n.a.

151.8

0.6

n.a.

0.2

n.a.

0.8

1.2

0.01

20.5

0.5

22.2

n.a.

n.a.

0.5

n.a.

0.5

12.1

113.2

2.9

1.7

129.9

316.1

158.0

24.1

3.4

501.6†IncludesbothsmallerMCMClicenseesandnon-licensees n.a.-notapplicableSource:NielsenMediaResearchService

Fig.2.46AdvertisementsbyMCMCLicensees2006

86.0

9.1

n.a.

n.a.

95.1

n.a.

n.a.

n.a.

n.a.

n.a.

28

C&M Industry Overview

Communications and Multimedia Industry – 9.6% of GDP

Overall, the C&M industry revenue aggregated here comprises the revenues of telecommunications, broadcasting, post and other smaller companies in the C&M sector listed on the local stock exchange. The combined revenue of these companies amounted to RM31.7 billion at end of 2006 - a growth of 18.3% from 2005 of RM26.8 billion. Total aggregate domestic revenue amounting to RM26.7 billion (excluding overseas) represents 9.6% of GDP (constant prices) and at RM31.7 billion (including overseas operations) represents 12% of GNP (constant prices)2.

Underpinned by strong economic fundamentals, the C&M industry has enjoyed overall positive growth over the years. This is contributed mainly by the telecommunications sector, and specifically by the high growth in the domestic mobile segment. In 2006, the contribution from overseas telecoms segments is comparatively more significant as the revenue contributions from the acquisition activities of major Malaysian telecoms operators in regional markets in 2004/2005 bear fruit as additional revenue sources.

Communications & Multimedia Industry Revenue versus GDP

Communications & Multimedia Industry Revenue versus GNP

RM

(bill

ion)

40

30

20

10

0

Rev

enue

as

Per

cent

age

of

GN

P (%

)20

15

10

5

0

RM

(bill

ion)

30

25

20

15

10

5

0

20181614121086420

Rev

enue

as

Per

cent

age

of

GD

P (%

)

2002 2003 2004 2005 2006* 2002 2003 2004 2005 2006*

C&M Industry Revenue Revenue as % of GDP C&M Industry Revenue Revenue as % of GNP

* Forecast GDPSource: MCMC, Bank Negara Malaysia, Industry

Fig. 3.1 Communications and Multimedia Industry - Revenue versus GDP

* Forecast GNP Source: MCMC, Bank Negara Malaysia, Industry

Fig. 3.2 Communications and Multimedia Industry - Revenue versus GNP

1720

2325

27

7.68.7 9.2 9.4 9.6

20 2124

27

32

9.8 9.7 10.3 10.912.2

Cha

pter 3

2 Total Domestic Revenue Total Overseas & Domestic Revenue Forecast GDP Forecast GNP

The foregoing calculations are based on forecast GDP and GNP for 2006 extracted from the report of the Malaysian Economy for Third Quarter 2006 by Ministry of Finance Malaysia.

X 100% X 100%

C&MIndustryOverview

2�

C&M REVENUE BY SERVICES MARKET SEGMENT

Theservicesmarketsegmentbroadlycomprisesfixedline,cellularmobileservices,Internet,broadcasting(subscriptionTVandFTATV)andpost.


Fig.3.3C&MIndustryRevenueGrowth:OverseasversusDomestic


Fig.3.4PercentageContributionToGroupRevenue:OverseasversusDomestic

C&M Industry Revenue Growth: Overseas versus Domestic

Percentage Contribution To Group Revenue: Overseas versus Domestic

RM

(bill

ion)

32

30

28

26

24

22

20

182003 2004 2005 2006

1.2

1.5

2.3

4.9

20.223.0

24.526.7

+65%Overseas+20%Domestic



+263%Overseas+31%Domestic +93%Overseas

+8%Domestic

Domestic Overseas

100

95

90

85

80

75

4 6 69

16

9694 94

91

84

2002 2003 2004 2005 2006

Domestic Overseas

Per

cent

age

(%)

C&MIndustryOverview

�0

Services Market Segment – Revenue Comparison 2005-2006

Fixed Line Services

FixedlineservicessegmentrevenueamountedtoRM8.2billionin2006.IncomparisonwithRM8.7billionin2005,revenueforthissegmentdeclined.MarketshareleaderTM,appearstohaveincreaseditsshareto91%from88%previously.Nevertheless,thisisduetothesmallerpie of RM8.2 billion in revenue for 2006 as DiGi exited the fixed line market, compared toRM8.7billionin2005.ThetelcorecordedstronggrowthinrevenueforInternetandmultimediasegmentscontributingRM0.87billiontogrouprevenue,anincreaseof24%fromtheyear2005ofRM0.7billion.

Services Market Segment (Public

Listed Companies)

Fixedline1

Mobile3

SubscriptionTVFTATVPost(excludecourier)OthersTotal

8.7Includes:Internet2=0.70

14.7Domestic=12.9Overseas=1.8Includes:DatacomServicesMaxis=1.04DiGi=0.46

1.84

0.46

0.80.426.8

25.9

61.1Domestic=45.7Overseas=15.1

6.41.62.52.5

100.0

8.2Includes:Internet2=0.87

19.3Domestic=14.5Overseas=4.8Includes:DatacomServicesMaxis=1.34DiGi=0.65

2.05

0.56

0.80.931.7

2005 2006 Contribution to C&M Industry

(%)RM (billion) RM (billion)

1Includesinternationalgateway2TMonly3Includesoverseasrevenuecontribution4ASTROSubscriptionTVRevenueforFYEnd31January20065ASTROSubscriptionTVRevenueannualisedforFY20076MediaPrimaSource:MCMC,Industry

Fig.3.5C&MRevenuebyServicesMarketSegment

Fixed Line Revenue Share(RM8.7 billion for 2005)

Fixed Line Revenue Share(RM8.2 billion for 2006)


Fig.3.6FixedLineRevenueShare2005Source:MCMC,Industry

Fig.3.7FixedLineRevenueShare2006

TM88%

DiGi1%

Time6%

Maxis5%

Maxis5%

Time4%

TM91%

C&MIndustryOverview

�1

Cellular Mobile Phone Services

ThedomesticcellularmobilerevenuesegmentamountedtoRM14.5billionin2006.Revenuefor thissegment indicatesan increaseof12.4%fromtheRM12.9billion recorded for2005.Revenuefromdata,SMSandnon-SMScontinuedtodrivegrowthforoperators.Subscribers’datausagecontinueditsstronggrowthspurredbyincreasingavailabilityofmobileapplicationsandservices.

Together with revenue contribution from overseas cellular mobile units, service providersrecorded total revenue forcellularmobile revenuesegment to the tuneofRM19.3billion in2006.Intheperiodunderreview,MaxisrevenueisaugmentedbyitsIndianunit,Aircel,whichcontributedRM739milliontogrouprevenue. Revenuefor themobilesegmentgrew31.3%fromRM14.7billionin2005.


Fig.3.8DomesticCellularMobileRevenueShare2005


Fig.3.9DomesticCellularMobileRevenueShare2006


Fig.3.10Domestic&OverseasCellularMobileRevenueShare2005


Fig.3.11Domestic&OverseasCellularMobileRevenueShare2006

Domestic Cellular MobileRevenue Share (RM12.9 billion for 2005)

Domestic Cellular MobileRevenue Share (RM14.5 billion for 2006)

DiGi21%

Celcom33%

Maxis46%

DiGi24%

Celcom31%

Maxis45%

Domestic & Overseas Cellular MobileRevenue Share (RM14.7 billion for 2005)

Domestic & Overseas Cellular MobileRevenue Share (RM19.3 billion for 2006)

Maxis41%

Maxis38%

TM44%

TM41%

DiGi18%

DiGi18%

C&MIndustryOverview

�2

Broadcasting-Subscription TV

ASTRO isamajorplayer in subscription-basedmulti-channel satelliteTV. ThebroadcasterrecordedtotalsubscriptionandadvertisingrevenueofRM1.4billionintheninemonthsendingOctober2006foritsmulti-channelsatelliteTVservices,ofwhichsubscriptionandadvertisingrevenueconstitute92%and8%respectively.Thisisa27%growthfromRM1.1billionrecordedinthesameperiodforYTD3Q-05(endingOctober2005).Onanindicativebasis,subscriptionandadvertisingrevenuegrew27%basedonannualisedrevenueofRM1.9billionforFY2007fromRM1.5billionforFY2006.

ASTRO Subscription & Advertising Revenue FY 2004-2007

ASTRO Subscription and Advertising Revenue 1Q-3Q FY 2007

RM

(mill

ion)

2,000

1,500

1,000

500

0

RM

(mill

ion)

500

400

300

200

100

0

SubscriptionRevenue AdvertisingRevenue

SubscriptionRevenue AdvertisingRevenue

FY2004 FY2005 FY2007*

3Q-07*2Q-071Q-07

1,103.8

1,375.7 1,435.5

91.0 106.2 109.1

432.5 453.4 449.9

28.1 43.5 37.1

*AnnualisedforFY2007ending31Jan2007Source:MCMC,Industry

Fig.3.12ASTROSubscriptionandAdvertisingRevenueFY2004-2007

*endingOctober2006Source:MCMC,Industry

Fig.3.13ASTROSubscriptionandAdvertisingRevenue1Q-3QFY2007

1,781.1

144.9

FY2006

C&MIndustryOverview

��

Postal Services

PosMrecordedRM0.8billionforthefinancialyearending31December2006.Revenuefrompostal and relatedservicesaccounts fornearlyall of 99%of thecompany’s turnover. It iscurrentlyundergoingmodernisationtoraisetheautomationlevelofitsmailsorting.Revenuegrowthhasslowedfor2006at4.4%comparedto13.4%growthfor2005.

COMMUNICATIONS & MULTIMEDIA SERVICES CONNECTIONS

Fixed Line Services

The total number of fixed line subscribersas measured by Direct Exchange Line (DEL)connections is between 4.3 to 4.4 millionsince the year 2004. As at 2006, fixed linesubscribers stood at 4.345 million, withpenetrationrateof16.1%orabout16personsper100population.

The incumbent in fixed line services, TMholds 97.8% share by DEL connections.Nevertheless, fixed line services continue toface cellular mobile services substitution asMalaysianlifestyles,particularlyoftheyoungerpopulation, take mobility as daily staple ofconvenience.


Fig.3.14PosMPostal&RelatedServicesRevenue2004-2006

PosM Postal & Related Services Revenue 2004-2006

2004 2005 2006

+13.4%+4.4%

RM

(mill

ion)

900

800

700

600

500

400

300

200

100

0

693.5786.3 821.2


Fig.3.15DELConnectionsResidentialversusBusiness(2004-2006)

DEL Connections Residential versus Business (2004-2006)

DE

L C

onn

ectio

ns (m

illio

n) 3.5

3.0

2.5

2.0

1.5

1.0

0.5

02004 2005 2006

Residential Business

2.9

1.5

2.8

1.5

2.8

1.5

C&MIndustryOverview

��

Cellular Mobile Phone Services

Themobilephonepenetrationasat2006is72.3%translatinginto19.5millionoutofapopulationof26.9million.Thedecreaseinpenetrationrateisseenduetotherationalisationresultingfromthemandatedprepaidregistrationexercisecarriedoutin2006.Forthesamereason,thepost-paidmarkethasseengrowthby0.5millionsubscribersto3.4millionwhiletheprepaidmarketshowedadeclineby0.5millionsubscribersto16.1million.


Fig.3.16DELConnectionsbyOperatorsSource:MCMC,Industry

Fig.3.17FixedLineDemandandPenetrationRate

DEL Connections by Operators 2006 Fixed Line Demand and Penetration Rate

TM97.8%

Time1.4%

DiGi0.1%

Maxis0.7%

No

. of

Sub

scri

ber

s(m

illio

n)

4.5

4.4

4.3

4.2

4.1

4.0

Pen

etra

tion

Rat

e (%

)

18

17

162004 2005 2006

17.2

16.6

16.1


Fig.3.18CellularDemandandPenetrationRate


Fig.3.19CellularMobile–PrepaidandPost-paidMarket

Cellular Demand and Penetration Rate

Cellular Mobile - Prepaid and Post-paid Market

No

. of S

ubsc

rib

ers

(mill

ion)

25

20

15

10

5

0

Pen

etra

tion

Rat

e (%

)9080706050403020100

2004 2005 2006

55.9

74.1 72.3

2000 2001 2002 2003 2004 2005 2006

Prepaid Post-paid

2.63.1

3.02.5

2.6

2.9

2.5 4.4 6.3 8.511.9

16.6 16.1

No

. of S

ubsc

rib

ers

(mill

ion)

25

20

15

10

5

0

3.4

C&MIndustryOverview

��

2006

Asat2006,prepaidmarketdeclinedby3%whilepost-paidmarketpostedagrowthof17.2%.In the previous years, the prepaid market did better when compared to post-paid market.However, the trend switched in year 2006 whereby the post-paid market outperformed theprepaidmarket.Thelikelyreasonscouldbespilloverfromtheprepaidregistrationexercisein2006,andrepackagingofpost-paidplansthatmaybemoreattractivecomparedtoprepaidofferings.

Inrespectofprovisionofmobileservices,Maxistakesthe lead.Outofthetotalnumberofcellularsubscribersat19.5millionasat2006,therespectiveserviceprovidersMaxis,CelcomandDiGiholds42%,31%and27%sharerespectively.

Internet Connections

Malaysia Internet subscribers in respect of Internet dial-up service is low. Internet dial-upsubscribersamountedto3.8million,translatinginto14%penetrationrateasat2006.


Fig.3.20CellularMobile–PrepaidversusPost-paidGrowth


Fig.3.21CellularPhoneConnectionsbyServiceProviders


Fig.3.22CellularPhoneSubscribersMarketShare2006

Cellular Phone Subscribers Market Share 2006

Cellular Phone Connections by Service Providers (2003 to 2006)

Celcom31%

Maxis42%

DiGi27%

Cellular Mobile - Prepaid versus Post-paid GrowthG

row

th (%

)

100

80

60

40

20

0

-20

-40

Prepaid Post-paid

2001 2002 2003 2004 2005

19.2

76.0

-3.2

43.2

-16.7

34.9

4.0

40.0 39.5

17.211.5-3.0

No

. of

Co

nnec

tions

(m

illio

n)

10

8

6

4

2

0

2006200520042003

Celcom Maxis DiGi

4.45.2

6.9

6.1

8.17.9

6.0

4.5 5.34.8

3.2

2.2

2006

C&MIndustryOverview

��

Broadband

The number of broadband subscribers has increased by 79% to 897,200 from 501,700 atendof2006.Asusual,thebroadbandservicethroughADSLcapturedthemost intermsofbroadbandmarketshare,thatis,80%.However,intermsofpenetrationrateat3.3%,Malaysiaisconsideredan infantcomparedtootherAsiaPacificcountries. Bybroadbandhouseholdpenetration,Malaysiaisat11.4%.

Broadband Services2003

ADSL

SDSL

Wireless

Others

Total no. of subscribers

108,173

1,931

n.a.

302

110,406

247,802

2,834

n.a.

1,865

252,501

477,700

3,700

5,900

14,400

501,700

735,900

4,800

15,100

141,400

897,200

2004 2005 2006Number of Subscribers

n.a.-notavailableSource:MCMC,Industry

Fig.3.25Broadbandservices


Fig.3.23Internet(Dial-Up)andPenetrationRate

Source:MCMC,Industry,BusinessMonitorInternational,*estimate,**forecast

Fig.3.24InternetSubscribers,PCOwnershipandInternetDial-UpPenetration

Internet (Dial-Up) & Penetration Rate

Internet Subscribers, PC Ownership and Internet Dial-Up Penetration

1999

No

. of S

ubsc

rib

ers

(mill

ion)

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

02000 2001 2002 2003 2004 2005 2006

Pen

etra

tion

rate

(%)

25

20

15

10

5

0

0.7

1.7

2.1

2.62.9

3.33.7 3.8

2.9

7.18.8

10.5 11.412.7

13.9 14.0

No

. of

Sub

scri

ber

s(t

hous

and

s)

6,000

5,000

4,000

3,000

2,000

1,000

0

Pen

etra

tion

Rat

e (%

)

16

14

12

10

8

6

4

2

01999 2000 2001 2002 2003 2004 2005 2006

1,800

2.9668

7.1

2,200

1,659

8.8

3,300

2,113

10.5

3,600

2,614

11.4

4,200

2,8813,293

12.7

4,400

13.9

4,700*

3,672 3,764

5,000**

14.0

InternetSubscribers PCOwnership Internetdial-uppenetration

C&MIndustryOverview

��

Malaysian Broadband SubscribersQuarter-to-Quarter Growth 2004-2006

Asia Pacific Broadband Penetration by Population 2Q 2006

Asia Pacific Broadband Penetration by Household 2Q 2006


Fig.3.26MalaysianBroadbandSubcribers

*2006Source:MCMC,ASIACOM

Fig.3.27AsiaPacificBroadbandPenetrationbyPopulation

*2006Source:MCMC,ASIACOM

Fig.3.28AsiaPacificBroadbandPenetrationbyHousehold

No

. of S

ubsc

rib

ers

(mill

ion)

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0

Gro

wth

(%)

35

30

25

20

15

10

5

0

2925

1618

222219

17 15 1316

2004 2005 20061Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

South Korea

Hong Kong

Japan

Taiwan

Australia

Singapore

New Zealand

China

Malaysia

Thailand

Philippines

India

Indonesia

South Korea

Hong Kong

Japan

Taiwan

Australia

Singapore

New Zealand

China

Malaysia

Thailand

Philippines

India

Indonesia

0 5 10 15 20 25 30

0 10 20 30 40 50 60 70 80

26.2

24.4

19.218.6

17.5

15.611.8

3.7

3.3*

0.8

0.2

0.10.02

75.1

74.6

58.6

58.6

50.9

44.1

31.2

12.9

11.4*

2.8

1.0

0.7

0.1

4Q

16

C&MIndustryOverview

��

*Feb-Oct2007Source:MCMC,Industry,BusinessMonitorInternational

Fig.3.32ASTROSubscribers&Churn

*Feb-Oct2007Source:MCMC,Industry

Fig.3.31Direct-To-HomePenetrationRate

Direct-To-Home Penetration Rate

Per

cent

age

(%)

2,500

2,000

1,500

1,000

500

0

40

35

30

25

20

15

10

5

0

16

14

12

10

8

6

4

2

0

Chu

rn R

ate

(%)

FY2004

Direct-to-homePenetrationRate(per100inhabitants)Direct-to-homePenetrationRate(per100households)

FY2005 3QFY*2007

1,698 1,941 2,149

9.0

13.4

10.6

5.1

Asatend2006,thenumberof3Gsubscriberstotalled406,717.Thisisagrowthof790%from45,692 subscribers asat 2005. Maxis andCelcomhas220,000 (54%)and186,717 (46%)subscribersrespectively.

Someofthemainreasonsforthehikeinthesubscriberfigurescouldbeduetoattractivenessintheserviceapplications,revisedwidercoverageareaandthegradualdropinthecostof3Ghandsetswhichmainlyattractstheyoungergeneration.

Direct-To-Home (DTH) Satellite Pay-TV

DTHsatellitetelevisionservicesasprovidedbyASTRO,hassubscriberstotalling2.1millionasatthirdquarterFY2007(thatis,asatendOctober2006)withanimprovedchurn2rateof10.6%.Thismaybeduetotargetedmarketingfocusedonfestiveseasonandmorestringentcustomerverificationprocedureswhichcontinuedtohaveapositiveimpactonchurn.


Fig.3.293GSubscribersSource:MCMC,Industry

Fig.3.303GSubscribersbyServiceProvider

3G Subscribers 3G Subscribers by Service Provider 2006

3G

450,000400,000350,000300,000250,000200,000150,000100,00050,000

0

No

. of

Sub

scri

ber

s Celcom46%

Maxis54%

ASTRO Subscribers & Churn(FY 2005 to 3Q FY 2007)

2Churn is the difference between total subscriber disconnections and total reconnections of previouslydisconnectedsubscriberscomputedasamovingannualtotalovertheperiodinreview.

Dec2005 Dec2006

406,717

45,692

FY2006

6.1 6.8 7.4

33.931.1

27.9

23.3

FY2005 FY2006 3QFY2007*

No

. of

Sub

scri

ber

s (‘0

00)

C&MIndustryOverview

��

POSTAL SERVICES

Thepostalservicescomprisethepostalandcourierservicesrespectively,andpostalservicesonthewholeareviewedasacommunicationsserviceintheC&Mindustry.TheprimaryroleofMCMCinrespectofthepostalsectoristoprotectandensuresustainableprovisionofqualityandaffordableuniversalpostalserviceinMalaysia.PosMistheonlydesignatedbodytofulfilthisuniversalserviceobligationthroughalongtermlicenceissuedtothecompanyuntil23July2035.

UniversalPostalServicemeansthatanyoneinMalaysia,nomatterwheretheylivewhetherinurbanorruralareas,canpostaletterorsendaparceltoanypartofthecountryatthestandardaffordablerate.Thisincludesthe“onepricegoesanywhere”stampaswellascollectionsanddeliveriestoalladdressedinthecountryoneachworkingday.

In2006,PosMdeliveredmorethan1.2billionpiecesofmailtoover18millionhomes,businessesandpostofficeboxesalloverthecountry.ThesizeofthedomesticlettermarketinMalaysiaisrelativelysmall,particularlyifcomparedtothesizeofdevelopedmarketselsewhereintheworld.

Intermsofaveragenumberofletterpostitemspostedperinhabitant,Malaysiarecordsonly48letterpostitems.Thisisonlyafractionofthatforthedevelopedcountries.Malaysiathereforeposeshighgrowthpotentialforthepostalsectorandperhapsalsootheropportunitieswhichareyettobefullyexploitedsuchasdirectmailmarketing.

Uptothefirsthalfof2006,PosMoperatedatotalof1,228permanentpostofficescoveringbothurbanandruralareas(665PostOfficesand563PosMini/PostalAgents)ascomparedtothetotalof1,225permanentpostofficesin2005.During2006,PosMcontinuedtoexpanditsagencyservicesandintroducedmorevalue-addedproductsandservicesbycapitalisingonitsnetworkofpostofficesthroughoutthecountry.

On the other hand, ASTRO’s residential subscribers totalled 1.97 million with residentialcustomernetadditionsof0.2millionasatthirdquarterFY2007(endOctober2006).MostofthenewnetadditionsareinquartertwoFY2007(endJuly2006)duetotake-upinterestamidstfootballseason,forexampleFIFAWorldCup,andother“live”entertainmentprogramsofferedlikeAkademiFantasia4.

*SAC per Set-Top Box Sold(FY 2004 to 3Q FY 2007

*SubscriberAcquisitionCost**Feb-Oct2007Source:MCMC,Industry

Fig.3.33SACperSet-TopBoxSold

RM

1,00

800

600

400

200

0

FY2004 FY2005 FY2006 3QFY2007**

904

789 790

652

C&MIndustryOverview

�0

PostOfficesoffer,aconvenientand efficient “one-stop”servicecentreforall. Todate,PosMprovidesmore than120agency services such as roadtaxrenewal,paymentoftithes,purchase or renewal of motorvehicleinsurance,andpaymentofutilitybills.

IndonesiaChinaThailandMalaysiaSouthKoreaNewZealandCanadaFinland

518254898

200217325

Source:UPU,MCMC

Fig.3.34Country-AverageNo.ofLetterPostItemsPostedperInhabitant

Source:MCMC-Postal&CourierServicesSelectedFactsandFigures

Fig.3.35PostalTraffic–NumberofLettersPostItems

Postal Traffic - Number of Letter Post Items

Source:MCMC-Postal&CourierServicesSelectedFactsandFigures

Fig.3.36LetterTariffComparison-20grams

Letter Tariff Comparison - 20 grams

Gro

wth

(%)

5

0

-5

-10

-15

-20

Denmark

Germany

France

UK

USA

Spain

New Zealand

Philippines

Singapore

Malaysia

2001 2002 2003 2004 2005

1.143.39 3.48

1.51-0.12

-2.72

-6.43

-10.32

-17.05

-7.28

Year

DomesticGrowth InternationalGrowth

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5

RM

3.122.92

2.612.54

2.522.47

2.251.85

1.451.41

1.381.24

1.070.68

0.660.64

0.540.310.30

Average No. of Letter Post Items Posted per Inhabitant

Country

C&MIndustryOverview

�1

Philately

TheMalaysianPostalServicehasa role inportraying theMalaysianexperiencethroughtheissuanceofdefinitive,commemorativeandspecialpostagestamps.Thegeneralpublic,specialinterestgroups,andcollectorsareseentohaveakeen interest instamps–aphenomenoncommoninMalaysia,andperhapsbecauseMalaysianstamps,apartfrombeinga“collectors’item,alsoserveeducationalandaestheticvalues.

In 2006, there were 17 issues of commemorative and special stamps on various themesapprovedforissuancebyPosM.

Direct Mail

Malaysia is an infant in this arena compared to the US where as much as 35% of the USdomesticadvertisingcakeisfromdirectmailmarketing.TheUSalreadyhas20yearsofdirectmailmarketexperience.Malaysiahasjuststarted.

Directmailisimportanttothepostalservicesgrowthintermsofnewrevenuestreamsaswellasoverallcontributiontothenationaleconomy.Directmailcreatesopportunitiesnotonlyforthepostaloperators,sendersandreceivers,advertisersbutalsotothesupportingsub-segmentsoftheindustrysuchasdatabaseaggregators,cataloguepublishersandeventheprintinganddesignindustries.

Directmailisadvertisingmail,essentiallynormalmailwithastandardenvelopeandaddress.It isamarketingtoolusedbymarketerstoattractcustomersforindividualisedpurchasesorservicesattheirconvenience.Directmailalsoservesasacommunicationtoolbetweenthesenderandreceiverwhichcanthenbecapturedandtrackedonadatabaseforfutureuse.

WildDuckSpecies

100thAnniversaryofJabatanAuditNegara

RareFruitsSeriesIII

NaturalScenery–MountainsofMalaysia

FreshWaterFish

50thAnniversaryofDewanBahasadanPustaka

100YearsFELDA*

SultanAzlanShahGallery

MalaysianFestivals

TraditionalCostumesofVariousRaces

Semi-AquaticLife-StampWeek2006

XVIIIFIGOWorldCongressofGynaecologyandObstetrics

9thFESPIC**Games-KualaLumpur2006

ASEANChinaDialogue

WorldVeteranFederation

SouthPoleExpedition

26January

14February

28March

26April

25May

22June

7July

18July

15August

29August

9to15October

6November

25November

20November

4December

28December

Theme Date of Issue in 2006

*FederalLandDevelopmentAuthority **FarEastandSouthPacificGamesFederationfortheDisabledSource:PosM

Fig.3.37CommemorativeandSpecialStampsIssues

C&MIndustryOverview

�2

Total Number of Advertising Items - Domestic 2005

Addressed Advertising Items - Domestic Services 2005

US89%

Brunei0.0004%

Malaysia0.1%

Denmark0.1%

Australia1%

Italy1%

Canada1%

Korea2%

Germany6%

Source:UniversalPostalUnion,MCMC

Fig.3.38TotalNumberofAdvertisingItems-Domestic2005

Source:UniversalPostalUnion,PosMalaysia,MCMC

Fig.3.39AddressedAdvertisingItems-DomesticServices2005

14

12

10

8

6

4

2

0

No

. of

Mai

l (b

illio

n)

Addressed Unaddressed

US

Germ

any

Korea

Canad

aIta

ly

Austra

lia

Denm

ark

Brune

i

Switzer

land

Mala

ysia

100.9

10.8

2.3

4.8

1.8 1.1 1.70.001

1.20.1

Inmostcountries,directmailisdividedintoaddressedmailandunaddressedmail.Addressedmailisindividuallyaddressed,senttocustomersbasedonspecificdatabaseoraddresslist.Thedatabaseispurchasedfromspecializedaddressdatabasemanagementcompaniesthatmeetthesendersormarketingcriteria.Unaddressedmail,ontheotherhand,isnotindividuallytargetedbutdirectedtocustomersinaspecificgeographicalarea,withtheobjectivetogainprospectivecustomers.

Directmailneednotnecessarilybeaserviceorproductonly.Itcouldbeanagreementtojoinanorganisation,adonation,couponwithdiscountstobeusedforexample,atretaileroutlets.Theroleofpostindirectmailmarketingissaidtocreateverylargeopportunitiesforthepostalindustrythroughalternativerevenuegeneration.

DirectmailhasmaintaineditspopularitydespitetheprevalentavailabilityofalternativessuchasInternetande-mail.Thiscouldbeduetoadvantagesofitspersonalisationfactorwhichavoidsaccidentaldiscarding,deletionorevenfiltrationascanhappen ine-mail. Italsoallows forcomfortableandbettercustomerrelationship.Furthermore,customersareallowedtorespondattheirownconvenience.Theyneednotdivulgeane-mailaddressorspeakwithastrangeronthephone.

C&MIndustryOverview

��

Proposed Postal Services Bill

The postal market in Malaysia is undergoing profound changes. Evolving customer needsand theproliferationofoperatorson themarketpresentnewchallenges forgovernmentasrequirementsemerge,forexample,toenforcerulesofcompetition,providecleardefinitionofuniversalpostalserviceobligationandpolicymeasurestosafeguardthesame.

Moving forward, theMEWCtogetherwith theMCMChaveproposedanewpostal industryframeworkandadraftpostalservicesbill. Theobjectiveof thisdraftbill is tostimulatethedevelopmentofpostalandcourierservicesindustryinthecountrybygeneratinggrowthtomeettheeconomicandsocialneedsofMalaysia.Suchneedstakenintoconsiderationwillensuresustainableprovisionofqualityandaffordablepostalservices inamorecompetitivemarketenvironment.Consultationswithvariousstakeholdersontheproposedbillareongoing.

Courier Services

ThecourierindustryinMalaysiahasbeeninoperationforabout30years-sincethe1970s.Today,theindustryatmorethanabillioninrevenueismakingsignificantcontributiontotheMalaysianeconomy.Courieraspartoftheservicessectoralsofacilitatestradeandinvestment,andsupportstheoverallcompetitivenessofcompaniesoperatinginMalaysia-oneoftheworld’stop20tradingnations.Theimportanceofcontinueddevelopmentofthecourierservicessectorisunderscoredbyitsroleasacriticalbusinesssupportfunction.Forinstance,anefficientandprogressivecourierserviceisimportanttocompaniesthatoperateintheimportandexportaswellaselectronicsandelectricalmanufacturingindustries.Courierservicesfacilitateinternationaltradeinanumberofways.Theyprovidequickresponsetomarketneeds.Theyofferdomesticandmulti-nationalinvestorshighqualitytransportlinks,both for bringing materials, components and spare parts to their production facilities andfinishedproductstothemarketplace.

Courierservicesprovideimpactonthecompetitivenessofothersectorsoftheeconomysuchasmanufacturingandfinancial services tonamea few. They improve thecompetitivenessof companies operating in Malaysia in many aspects of operations by reducing their coststhrough:

• Reductionofpurchasingcostswithwideraccesstocheapersuppliers.• Costsavingsoninventorieswithjustintimedeliveries.• Extensivelogisticsupportservices,thusallowingcompaniestofocusoncorebusiness.• Improvingcompanieshandlingofreturnsandcomplaintsbyprovidingnextdaydeliveryof replacementpartsorquickturnaroundofrepairs.• Improvedstockmanagementandproductiontechniques,byreducingfirmsstoragecosts anddisruptioncausedbyfailureofmachineryorproductionline.

Investmentinnewdeliveryroutesbymajorhomegrowndomesticcouriercompaniesinparticularassistsmallandmediumsizedenterprises located inmajorcitiesandtownsthroughoutthecountrytoparticipateefficientlyindomesticandinternationaltrade.

C&MIndustryOverview

��

THE MULTIMEDIA SUPER CORRIDOR (MSC) MALAYSIA

Expansion of MSC Malaysia in 2006

MootedbytheMalaysiangovernmentin1996,MSCMalaysiaisenvisagedtopropelthenationinto theeraofaknowledgeeconomy. MSCMalaysia iscurrently rollingoutPhase2of itsmasterplanwhichculminatesinyear2020.TheoverallthrustofPhase2(2004-2010)istogrowMSCMalaysiaintoaglobalICThub.AspartofthePhase2developmentstoexpandthewebofsimilarcorridorsthroughoutMalaysia,MSCareasexpandedtonorthernindustrialareasin2004and2005,namely,theBayanLepasIndustrialParkanditsvicinityandKulimHighTechPark.

MSCMalaysiaisfirmlybackedbytheMalaysiangovernment’scommitmenttodevelopthenationintoaglobalICThub.TheMSCMalaysiaaimsnotonlytoattractcompaniesfromtheworldovertoinvestinMalaysiabutalsoengagingorempoweringMalaysianICTsmallandmediumsizedenterprisesbyavailinghigh-capacityglobaltelecommunicationsandlogisticsnetworks,amongothers,tofacilitateintheirtransformationintocompetitiveworldclassandhighvalueaddedcompanies.TheuseofICTinbusinessesandgenerationofneweconomicgrowthareasisoneof theobjectivesof theMSCMalaysiaflagshipapplicationssuchasSmartSchools,Telehealth,e-Business,smartcardtechnology,electronicgovernmentandtechnopreneurship.

ThewebofsimilareconomicandICTdevelopmentcorridorsexpandsintootherkeylocationsunderPhase2(2004-2010).PlansareunderwaytoturntheeconomicallyhighgrowthareaofKlangValleytobepartofMSCMalaysiainstages.InFebruary2006,theKLSentralbuildingwasawardedthestatusofaMultimediaSuperCorridor(MSCMalaysia)Cybercentre,whichisdefinedasabuildingorcomplexwithbasicenablingenvironmentofferingthe(orpartialthereof)10-point MSC Malaysia Bill of Guarantees. For quality assurance management systems,PenangMSCMalaysiaCybercityattainedpioneerISO9001:2000certificationforMSCMalaysiaCybercityManagement.

Growth of MSC Companies

1,317 MSC Status Companies* Breakdown by Technology Cluster 2006

*Operationalasat8December2006Source:MDeC

Fig.3.40MSCStatusCompaniesbyTechnologyCluster2006

SoftwareDevelopment52%

ShareServicesOutsourcing7%

CreativeMultimedia9%

HardwareDesign9%

InternetBasedBusiness10%

SupportServices13%

C&MIndustryOverview

��

Topromotecontentdevelopment,MultimediaDevelopmentCorporation(MDeC)andSoftwareIndustryPromotionAgency(SIPA)ofThailandsignedaMoUforgreatercollaborationbetweenthedigitalcontentindustriesofeachcountry,particularlyincomputergames,featurefilmsandanimation.

Duringtheyear,arebrandingexercisecommencedtotakethedevelopmentofMSCMalaysiatonewheights. TheMSCMalaysiaCreativeMultimediaContent Initiativewas launched inconjunctionwiththerefreshedbrandidentitiesoftheMSCMalaysiaandMDeCwhichwouldhelp strengthen its efforts to promote and raise awareness of MSC Malaysia abroad andfacilitategreaterinformationaccessandservicethroughthesettingupofaworld-classMSCMalaysiaClientContactCentre(CLIC)tohandleallcallsandqueriesrelatingtoMSCMalaysiaandMDeC.

MDeC was allocated a fund of RM154 million under Budget 2006/2007 to provide, amongothers, more comprehensive services as well as to support ICT-based small and mediumenterprise (SME)entrepreneurs.MDeChasallocatedRM120million ingrantstoassistMSCstatuscompanies fund their researchanddevelopment (R&D)projects. InDecember2006,theTechnopreneursPre-Seedfund (RM80million)wasunderway,offeringaboost to thosedeveloping their ideas into prototype products. Budget 2006/2007 also emphasised onattractingglobalcompaniestoMalaysiawithafocusondevelopingandpromotingthenation’spotentialasalocationforsharedservicesandoutsourcing(SSO)companies.

Therewereatotalof1,317MSCstatuscompaniesoperationalasat8December2006.Softwaredevelopmentcompaniesconstitute52%(681companies),anincreaseof12%from2005(609companies).ThenumberofSSOcompanieshasgrownby38%orfrom68asatendoflastyearto94althoughtheyaccountforonly7%ofallcompanieswithMSCstatus.Ratedasthethird-mostattractivedestinationintheworldforSSO1,MalaysiahaspositioneditselftomoveuptheSSOvaluechainnotonlytobedifferentiatedfromcountriessuchasIndiaandChinabuttobegloballyrecognisedasthelocationofchoice.

1RankedbyATKearneyOffshoreLocationAttractivenessIndex2004

MSC Global Companies

1996-2003 P

hase 1 2004-2

009 Phase

2

Asat8December2006Source:MDeC

Fig.3.41MSCGlobalCompanies2006

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

0 20 40 60 80 100

No. of Companies

13

31

34

3850

5460

67

70

83

��

Regulating Effectively

With the migration of ASP individual licence to ASP class licence in 2005, the permissibleactivitiesunderASPclasslicenceisexpanded.OutoftheactivitiesunderASPclasslicences,messaging services remains the most popular activity in 2006 in terms of class licenceregistration.

Thecommunicationsandmultimedia(C&M)industryinMalaysiahasmovedforward,withitsbundlesofjoyandshareofheartaches,sotospeak,sincetheintroductionoftheCommunicationsandMultimediaAct,1998(CMA)andtheconsequentmigrationoflicencesofoldtothenewlicencesundertheCMA.Thefirstconvergencelawofitskindisnoweightyearsinforceandthelicenceseffectedthereofarestillbeingtestedbythepassageoftime,albeitstillholdingrobust.

LICENSING IN 2006

TherearefourcategoriesoflicensableactivitiesundertheCMA:

1. NFP–NetworkFacilitiesProviders2. NSP–NetworkServicesProviders3. ASP–ApplicationsServiceProviders4. CASP–ContentApplicationsServiceProviders

Underthefourcategoriesoflicences,therearetwotypesoflicencesissued,namelyindividualandclasslicences.Theindividuallicencesaregrantedforactivitieswhichrequireahighdegreeofregulatorycontrolwhileclasslicencesarerenewableannually.ThelicenseesarerecordedintherespectiveregistersmaintainedbyMCMC.

NFPNSPASPCASP

77-1

3335372n.a.*

Category of licence Individual Class

Number of Licences Issued or Registered by MCMCas at 31/12/06

*n.a.-notapplicableSource:MCMC

Fig.4.0NumberofLicencesIssuedorRegisteredbyMCMC

1.PSTNtelephony2.Publiccellularservices3.IPtelephony4.Publicpayphoneservices5.Publicswitcheddataservice

ASP Class Licence – Current Activities

6.Audiotexthostingservicesprovidedonopt-inbasis7.Directoryservices8.Internetaccessservices9.Messagingservices

Source:MCMC

Fig.4.1ASPClassLicence

Cha

pter 4

RegulatingEffectively

��

Although the number of individual licencesissuedforyear2006isnotsignificant,MCMCprocessed a total of 38 such applicationsreceivedin2006,thatis,NFP(15applications);NSP (17); and CASP (6). With the issuanceofnew licences in2006, individual licenseesof C&M industry total 152 in its respectivecategories.

Variations and Transfer of Licences

Inadditiontoprocessingnewlicenceapplications,theMCMCprocessesapplicationstovarylicence conditions and/or to transfer individual licences. Application for variations can betriggeredwhenalicenseewishestochangetheconditionsstipulatedinitslicence,forexample,forexpansionofbusiness,changesinnatureofbusinessorchangesinbusinessstrategy.Intotal, therewere15applications forvariationsof licenceconditionsandoneapplication fortransferoflicencereceivedin2006.

Response to Market and New Developments

Rapidimprovementsintechnologyhaveledtomanynewservicesinthemarket.Newservicessometimescreateuncertaintyastowhethersuchservicesrequirelicencesandifrequired,whatcategoryandtypeoflicencesitshouldfallunder.Forsuchcases,potentialserviceproviderswillapproachtheMCMCforadviceontheirservicesmapping.

Therewasatremendousvolumeofinquiriesreceivedin2006.Inquiriesreceivedwereintheformofletters,walk-invisitsaswellasthroughtelephonecalls.

NFPNSPCASPTotal

636920

152

Category of Licence

Individual Licensees as at 31/12/06

Source:MCMC

Fig.4.2IndividualLicensees

Source:MCMC

Fig.4.3C&MIndustryLicensees

C&M Industry Licensees 2006

No

. of

Lice

nsee

s

2003 2004 2005 2006

450

400

350

300

250

200

150

100

50

0

NFP(I) NSP(I) ASP(I) CASP(I) ASP(C) NFP(C) NSP(C)

29 3653 63

31 3960 69 78 89

20 20 19 20

96

142

393372

24 29 29 33 23 29 32 35


��

Suspension of Licence

Nolicencewassuspendedforyear2006.However,MCMCcontinuestomonitorlicencefeepayments;andforcasesofnon-payment,initiativestosuspendand/orrevokelicenceswillbetaken.

LICENSING DEVELOPMENTS AND ISSUES

Rebates on Applicable Annual Licence Fees

Sincetheyear2002,theMCMChasintroducedguidelinesforindustrylicenceholderstoclaimrebatesfromlicencefeepayablebasedonspecifiedconditions.

Eligibility

OnlyforCMAindividuallicenseeswhoarechargedwithmaximumrateat0.5%ofGrossAnnualTurnover(GAT)areeligibletoapplyforrebatesontheannuallicencefeespayable.

Thedifferencebetweenthemaximumrateof0.5%ofGATandtheminimumrateof0.15%ofGAT is themaximumrebateentitlement thatcanbeapplied forby theeligible licensees.Generally,theeligiblelicenseesmayapplyforindustrydevelopmentexpenditureitemsunderthefollowingfivecategories:

1. Researchanddevelopment; 2. Skillsandtraining; 3. Minorityinterestinsmallmediumenterprises(SMEs); 4. MalaysianvalueaddedprocurementfromMalaysianSMEs;and 5. Localcontentandproduction

Development of Rebates Reference

Eligible licenseessubmits their rebatesapplication formanddocumentsasper theRevisedInformationPaper –EligibleDeductions for Individual LicenceFeeRebates (RevisedPaper)publishedon8November2005.

Applicationfee

Approvalfee

Annuallicencefee

Classlicenceregistration

Miscellaneous

Total

Type of FeeRM

(million)

0.29

1.00

82.09*

1.11

0.05

84.54

Total Licence Fee RM84.54 million

Classlicenceregistration

1.3%

Applicationfee0.34%

Miscellaneous0.06%

Approvalfee1.2%

Annuallicencefee97.1%

*Thisamountincludessumscollectedforannualfeesduefortheperiodfrom2001until2006,resultingfromtheprocessingofrebateapplications.Source:MCMC

Fig.4.4LicenceFeeCollectedSource:MCMC

Fig.4.5TotalLicenceFee

Licence Fee Collected in 2006


��

ThisRevisedPaperwasaresultofthePublicConsultationPaperonReviewofLicenceFeeRebates published by MCMC in March 2005. The Revised Paper supersedes the previousInformationPaper–EligibleDeductionsforIndividualLicenceFeeRebatesfirstpublishedon20December2002.

Further informationon the feecollectionandrebates implementation framework isavailablefromMCMCwebsiteat:http://www.cmc.gov.my/what_we_do/licensing/cma/individual.asp

Implementation of the Rebates Framework

Therebatesframeworkinvolvesamulti-stageprocess.Thereareseveralcriteriaandformulastobeappliedinordertofulfiltherequirementsneededtoobtainrebatesandtodeterminethefinalrebateentitlement.

TheonusisonthelicenseestoensurethattheexpenditureitemsclaimedmeetthedefinitionofindustrydevelopmentexpenditureasstipulatedintheRevisedPaper,andprovidesupportingdocumentsasproofofexpenditure incurred for thatfinancialyear. Uponprocessingof theapplicationandtheapplicableindustrydevelopmentexpenditureascertained,thisisinsertedintothefollowingformulatoultimatelyobtainthepercentageofrebateentitlement:

Observations from Rebates Applications

Fortheyear2006,therewerenorebatesapprovedbyMCMC.Fromtherebatesapplicationssubmitted, the MCMC noted that the licensees have yet to reach the required industrydevelopmentexpenditurespendingofatleast2.5%oftheGAT.The2.5%industrydevelopmentspendingoverapplicableGATistheminimumpercentagespendingthresholdinordertoqualifyforrebatesentitlementof33%.

Niche Guidelines

On17September2002,theMinisterissuedtheMinisterialGuidelinesonclasslicencesforNFPandNSP(NicheGuidelines).FortheimplementationoftheNicheGuidelinesandtheprocessforregisteringNFPandNSPclasslicensees,MCMChassetupaspecialcommittee,knownastheNicheCommittee,comprisingrepresentativesfromallrelevantdepartments,toassesstechnicalaspectsand/orimplementationissues.RecommendationsbytheNicheCommittee

1 Morethan15%2 6to15%3 2.5tolessthan6%4 Lessthan2.5%

Source:MCMC

Fig.4.6IndustryDevelopmentExpenditureas%ofApplicableGrossAnnualTurnover

1006633

0

Industry Development Expenditure as % of Applicable Gross Annual Turnover (GAT)

% of Rebate Entitlement

Applicable Industry Development Expenditure (RM)Applicable GAT (RM) X100

Industry Development Expenditure as % of Applicable GAT

=


�0

aretabledintheMCMCLicensingCommitteefordecisions.

In2006,themajorityoftheregistrationsforNFPandNSPclasslicenceconsistedofrenewalsfromexistinglicensees.Thebulkoftheservicesfallingunderthiscategorywerethoseprovidingservicessuchaspaging,analoguetrunkradioandbroadbandInternetwithinveryspecificandlimitedlocality.

CONSUMER PROTECTION

Consumer Satisfaction Survey (CSS)

TheCSSformsamajorpartofMCMC’squalityofservicemonitoringandisconsideredoneofthebenchmark(fromtheconsumer’sperspective)onthelevelofsatisfactionofthevarioustelecommunicationsandmultimediaservicesprovidedtothem.

Theresultsonthesurveypresentsaninsightintotheconsumers’perceivedlevelofqualityoftheservicesofferedbythevariousserviceproviders inboththeurbanandruralareas.Theobjective of this study is to measure the satisfaction level of fixed line telephone services,mobiletelephoneservices,Internetaccessservices(Dial-Upandbroadband),publicpayphone,digitalleasedlines,Free-To-Airtelevision(FTATV),Free-To-Airradio(FTARadio),pay-TV,postalincludingcourierservices.

Background

Since2001,MCMChasconductedatotalofsevensuchsurveys.Thefirstsixsurveys(year2001to2003)wereconductedonceeverysixmonths,canvassedtheconsumers’perceptiononservicequalityviaface-to-faceinterviews.Inaddition,theMCMCalsoconductedFocusGroupDiscussionsessionstoobtainopinionontheissuesandservicelevelonthetelecommunicationsandmultimediaservices.

In 2004, MCMC implemented the survey mainly via telephone interviews using computerassistedtelephoneinterviews(CATI).Thisaimstoreducetimeandcosttoobtainagoodsamplesize.Surveysonafewserviceswerealsoconductedviaface-to-facetocatertorespondentswithoutaccesstomobileorfixedlineservices.

CSS 2006

CSS2006adoptsimilarmethodsasCSS2004inconductingthesurvey,i.e.,CATIandface-to-facemethods.Theindustryplayerswereinvitedtoreviewandprovidefeedbacktothesurveyquestionnairesbeforethecommencementofthesurvey.Atotalofelevenservicecategories(15surveys)werecoveredforthisstudy,whichincluderesidentialandcommercialsegmentsasfollows:

1. FixedLine-Residential 2. FixedLine-Commercial 3. MobilePrepaid 4. MobilePostpaid 5. PublicPayphone 6. InternetDial-up-Residential 7. InternetDial-up-Commercial 8. InternetBroadband-Residential

9. InternetBroadband-Commercial 10. DigitalLeasedLine-Commercial 11. FTARadio 12. FTATV 13. Pay-TV 14. PostalServices 15. Courier-Commercial


�1

Atotalof35,079responseswereinvolvedinthisstudyfromOctobertoDecember2006.Theresultsofthesurveyaresharedwiththeindustryplayersforimprovementactionintheweakareasaswellasforthemtoimprovethequalityofservices.Thesurveyreportisexpectedtobepublishedinourwebsiteinearly2007.

Mandatory Standards for Quality of Service (MS QoS)

TheMandatoryStandardsforQualityofService(MSQoS)areminimumstandardsonservicequality.Thisistoensureprotectionoftherightsofconsumersandprovidethemwithavisibleandspecificcriterionthroughwhichthequalityofservicesreceivedorusedcanbegauged.

Overall, the MS QoS covers the areas of billing, complaints, fulfilment of installation andrestoration,serviceavailabilityandtechnicalaspects.Fortechnicalaspects,MCMCconductssamplingteststoverifycompliancewiththestandards.

UndertheMinisterialDirectiononQualityofService,Number1of2002,MCMChasissuedthefollowing:

1. DeterminationsNo.1to4of2002on28June2002covers: a. PublicSwitchedTelephoneNetworkService(PSTN); b. PublicCellularService(PCS); c. Dial-upInternetAccessService(DIAS);and d. ContentApplicationsService(CAS).

AlltheaboveDeterminationswereeffective1January2003.

2. Determinationsnumber3to5of2003on17November2003covers: a. PublicPayphoneService(PP); b. DigitalLeasedline(DLL)Service;and c. BroadbandAccess(BA)Service.

All the above Determinations were effective 1 January 2004 except for Public Payphoneservicewhichwaseffective1June2004.

All Applications Service Providers (ASPs), Content Application Service Providers (CASPs)andNetworkServiceProviders(NSPs)thatprovidetheservicescoveredundertheMSQoSarerequiredtosubmitreportstoMCMCeverysixmonths,detailingvariousaspectsoftheirperformance.Thisincludesasigneddeclarationattestingtoitsaccuracy.

Section105(3)oftheCMAstatesthatapersonsubjecttoaMandatoryStandardshallcomplywiththestandardandintheeventapersonomitsorneglectstocomplywiththesaidStandard,heshallbyliabletoafinenotexceedingRM100,000,ortoimprisonmentforatermnotexceedingtwoyearsorbothasprovidedforbySection242oftheCMA.

TheMSQoSrequiresreportstobesubmittedeveryhalfyearly,thatis,fortheperiodsendingJuneandDecemberrespectively.ThereportshavetobesubmittedtoMCMCnolaterthansixweeksfromtheendoftheperiod.


�2

Audit and Certification Exercise

MCMCalsoconductsrandomauditandcertificationexerciseswhichprimarilyacttovalidatetheaccuracyofthereports.TheauditalsoaimstogatherfeedbackonsuggestionforimprovementontheMSforQoS.

SincetheMSforQoSbecameeffective1January2003,MCMChasconductedfiveroundsofauditandcertificationexerciseofwhichallwereoutsourced. Thefirst four roundswereconductedbyMSCTechnologyCentreSdnBhd.ForthereportsendingDecember2005,Ernst&YoungwastheappointedauditortoundertaketheexercisewhichwascompletedinAugust2006.

TheresultsoftheauditweresharedwiththeindustrysothattheindustrycouldplanforfurtherimprovementsintheirQoSreportingandcompliance.

CompliancetotheMandatoryStandardDeterminationsaresummarisedasfollows:

Public Switched Telephone Network Service (PSTN) QoS

PSTNPCSDIASCASPPDLLBATotal

646

16495

50

545

16440

38

1010055

12

ServicesNo. of

SubmissionsNo. of Licensee

CompliedNo. of Licensee Did Not Comply

Compliance to Submission of Reports for Period Ending 30 June 2006


Fig.4.7CompliancetoSubmissionofReportsforPeriodEnding30June2006

% Complaints

of bills issued

% Bill complaints

resolved within 15 business

days

% Bill complaints


days

% Installation

orders Fulfilled within 24

hours

% Installation


hours

% Installation


hours

Licensee

Standard

Telekom Malaysia Berhad

Maxis Broadband Sdn Bhd

Maxis Mobile Sdn Bhd

TT dotCom Sdn Bhd

DiGi Telecommunications Sdn Bhd

NasionCom Sdn Bhd

2

0.76

0.20

0.27

1.80

0.21

0

90

99.71

97.89

100.00

99.02

100.00

0

95

99.96

99.30

100.00

99.92

100.00

0

80

99.15

97.50

100.00

99.52

97.20

0

90

99.39

99.67

100.00

99.52

97.20

0

100

100.00

100.00

100.00

100.00

100.00

0


Fig.4.8DeterminationNo.1-PublicSwitchedTelephoneNetworkService


��

Public Cellular Service (PCS) QoS

Number of service trouble

reports for every 1,000 line

Licensee

Standard

Telekom Malaysia Berhad



TT dotCom Sdn Bhd


NasionCom Sdn Bhd

50

4.29

2.49

0

0.32

13.05

9.40p.a.-perannumSource:MCMC,Industry

Fig.4.9DeterminationNo.1-PublicSwitchedTelephoneNetworkService

% Service restoration

Fulfilled within 48 hours

% Service restoration

Fulfilled within 24 hours

Number of general customer

complaints per 1,000 lines p.a.

80

97.34

87.12

100.00

99.37

94.19

0

90

99.19

96.12

100.00

98.90

97.42

0

500

268.20

63.15

12.42

36.92

25.83

0

Number of general customer

complaints per 1,000 lines p.a.

Licensee

Standard

Telekom Malaysia Bhd

Celcom (M) Bhd

Malaysian Mobile Services Sdn Bhd


2.00

0.31

0.37

0.17

0.59Source:MCMC,Industry

Fig.4.10DeterminationNo.2-PublicCellularService

% Bill complaints


days

% Bill complaints


days

% Complaints of bills issued

90.00

99.63

96.95

95.80

99.96

95.00

100.00

99.17

97.78

99.98

50

9.43

24.30

16.41

35.18

Dial-Up Internet Access Service (DIAS) QoS

Number of General

Customer Complaints per 1,000 customer

p.a.

Licensee

Standard

TM Net Sdn Bhd

Celcom (M) Bhd

Time dotNet Bhd


Jaring Communications Sdn Bhd

NasionCom Sdn Bhd

2

0.02

n.a.

n.a.

n.a.

0

0n.a.-notapplicable p.a.-perannumSource:MCMC,Industry

Fig.4.11DeterminationNo.3-Dial-upInternetAccessService

% Bill complaints


days

% Bill complaints


days

% Complaints of bills issued

90

92.42

n.a.

n.a.

n.a.

100.00

0

95

96.72

n.a.

n.a.

n.a.

100.00

0

50

12.34

5.61

5.70

0.68

0.05

70.00

Public Switched Telephone Network Service (PSTN) QoS (cont’d)


��

Content Application Services (CAS) QoS

Public Payphone Service (PPS) QoS

StandardHusaNetworkSdnBhdSuaraJohorSdnBhdKristalHartaSdnBhdSynchrosoundStudioSdnBhdNatsevenTVSdnBhdSistemTelevisyenMalaysiaBerhadMetropolitanTVSdnBhdStarRFMSdnBhd(988channel)StarRFMSdnBhd(red104.9channel)CH-9MediaSdnBhdInstitutKefahamanIslamMalaysia(IKIM)MalaysiaAirports(Sepang)SdnBhdMaestraBroadcastSdnBhd(MixFM)MaestraBroadcastSdnBhd(EraFM)MaestraBroadcastSdnBhd(XfreshFM)MeasatRadioCommunication(HitzFM)MeasatRadioCommunication(MyFM)MeasatRadioCommunication(Light&Easy)RadioLebuhrayaSdnBhdPerfectExcellenceWavesSdnBhdMiTVCorporationSdnBhd

AnnualServiceAvailability%Complaintsofbillsissued

%Billcomplaintsresolvedwithin15busdays%Billcomplaintsresolvedwithin30busdays

Numberofgeneralcustomercomplaintsper1000linesp.a.

Service ProviderAnnual Service Availability

(%)

9999.8299.9699.9699.9799.3999.9499.9299.9699.9699.7699.4799.9999.8699.8599.8699.8799.8799.8799.9399.83

99.18n.a.n.a.n.a.

47.59

1.2.3.4.5.6.7.

9.10.11.

14.15.16.

12.

13.

8.

n.a.-notapplicableSource:MCMC,Industry

Fig.4.12DeterminationNo.4-ContentApplicationServices

Licensee

Standard

TM Payphone Sdn Bhd

Time Reach Sdn Bhd



90

95.62

93.43

100.00

98.77Source:MCMC,Industry

Fig.4.13DeterminationNo.3of2003-PublicPayphoneService

% of Public Payphone in ProperWorking Conditions


��

Digital Leased Line Service (DLL) QoS

Digital Leased

Line (DLL)

Local DLL(%)

National DLL(%)

Int’l* DLL (%)

Fulfilled within 1

week (%)

Fulfilled within 2 weeks

(%)


(%)


(%)


(%)


(%)

Fulfilled within

24 hours (%)

Fulfilled within

48 hours (%)

Annual Service Availability** Fulfillment of installation orders Service

Restoration PerformanceLocal DLL National DLL International DLL

StandardsTelekomMalaysiaBhdCelcom(Malaysia)BerhadMaxisBroadbandSdnBhdDiGiTelecom-municationsSdnBhdTTdotcomSdnBhdFiberailSdnBhdVADSBerhadSacofaSdnBhdCelcomTimur(Sabah)SdnBhd

99

n.a.

99.93

n.a.

99.97

99.92

n.a.n.a.

99.3

99.91

99.9

99.96

99.93

99.96

100.00

99.92

99.9799.97

99.94

0

99.99

99.98

0

99.94

0

99.72

99.97100.00

0

0

90

n.a.

100.00

100.00

100.00

99.27

n.a.n.a.

0

100.00

100

0

100.00

100.00

100.00

99.63

n.a.n.a.

0

100.00

90

100.00

0

97.37

0

100.00

100.0092.66

n.a.

0

100

100.00

0

100.00

0

100.00

100.00100.00

n.a.

0

90

100.00

n.a.

95.00

0

100.00

0100.00

n.a.

0

100

100.00

n.a.

100.00

0

100.00

0100.00

n.a.

0

80

99.50

96.14

92.39

100.00

97.07

100.0091.99

100.00

100.00

90

99.89

97.82

97.10

100.00

99.13

100.0098.38

100.00

100.00*International n.a.-notapplicable**ServiceAvailabilityismeasuredfromNetworkTerminationUnitattheoriginationpointtoNetworkTerminationUnitattheterminationpoint.Thereporteddowntimehoursincludesdamagetonetworkduetoforcemajoureandthirdparties.Source:MCMC,Industry

Fig.4.14DeterminationNo.4of2003-DigitalLeasedLineService

Broadband Access Service (BA) QoS

Licensees % Fulfilled within 24

hours

% Fulfilled within 48

hours


days


hours


hours

% of Number of Sample

with Network Latency below 85

miiliseconds

% of Number of

Sample with Bandwidth Utilisation more than

70% of Subcribed

level

% of Packet Loss

% of Network

Availability

Fulfillment of installation orders

Service Restoration

PerformanceNetwork Performance

StandardTelekomMalaysiaBhdMaxisBroadbandSdnBhdTTdotcomSdnBhdDiGiTelecom-municationsSdnBhdOpticalCom-municationsEngineeringSdnBhd

80

98.32

88.24

99.19

80.00

53.06

90

99.07

96.08

99.19

90.00

74.90

100

100.00

100.00

99.73

90.00

84.39

80

95.20

96.92

89.99

100.00

69.57

90

98.85

100.00

97.82

100.00

93.12

95

100.00

100.00

100.00

100.00

100.00

95

100.00

100.00

96.33

n.a.

100.00

1

0

0

0

0

0

99.99

99.98

99.97

100.00

99.98

96.53n.a.-notapplicableSource:MCMC,Industry

Fig.4.15DeterminationNo.5of2003-BroadbandAccessService


��

Trend Analysis for MS QoS

TheMSQoSforPSTN,PCS,DIASandCASserviceshavebeenineffectformorethanfouryears.ForDLLandBAservices,theMSQoShavebeenineffectformorethanthreeyearswhereasforPublicPayphoneService,ithasbeenineffectfortwoandahalfyears.

Ingeneral,MCMChasseenimprovementintheoverallperformanceoftheindustryintheseareas.Notably,somelicenseeshavetakeninitiativestoadoptthestandardsastheirinternalKeyPerformanceIndicator.DetailsofMSQoStrendanalysesforeachserviceareasfollows:

PSTN

1. BillingComplaintsofBillsIssuedTheperformanceofPSTNproviderswithregardstothepercentageofbillingcomplaintsagainstthenumberofbillsissuedisseentobegettingworse.However,theachievementoftheindustryisstillwithinthemaximumstandardof2%.

2. ResolutionofBillingComplaintsTheminimumstandardsimposedarethat90%and95%ofbillingcomplaintsreceivedmustberesolvedwithin15and30businessdaysrespectively.

Therewasaslightdropinindustryperformanceinthereportforperiodending31December2005due to theproblemfacedbyanew licenseeprovidingPSTNservice for theUniversalServiceProvision(USP)areas.However,theindustryhasonaveragecompliedwiththetwostandards,achieving93.55%and95.57%.

0.60%

0.50%

0.40%

0.30%

0.20%

0.10%

0.00%

30-Jun-2003

31-Dec-2003

30-Jun-2004

31-Dec-2004

30-Jun-2005

31-Dec-2005

30-Jun-2006

0.22%0.27%

0.37%0.33%

0.51%

0.44%

0.54%

Average0.38%


Fig.4.16PSTN-BillingComplaintsofBillsIssued

PSTN Billing Complaints of Bills Issued


��

100%

95%

90%

85%

80%

75%

70%

65%

60%

55%

50%

93.3

3%

93.6

6%

94.2

3%

96.7

9%

98.8

5%

78.6

4%

99.3

2%

95.6

7%

97.1

0%

97.9

6%

98.6

9%

99.8

9%

79.8

1%

99.8

4%

%Billcomplaintsresolvedwithin15businessdays

%Billcomplaintsresolvedwithin30businessdays

30-Jun-2003

31-Dec-2005

31-Dec-2003

30-Jun-2006

30-Jun-2004 31-Dec-2004 30-Jun-2005

93.55%Average

95.57%Average


Fig.4.17PSTN-ResolutionofBillingComplaints

3. FulfillmentofInstallationOrdersTheminimumstandardsimposedarethat80%ofinstallationorderrequestsmustbefulfilledwithin24hours,90%fulfilledwithin48hoursand100%fulfilledwithin7normalcalendardays.Ingeneral,theindustryhasperformedsatisfactorilyagainsttheminimumstandardsandhasshownageneralimprovedtrend.

120%

100%

80%

60%

40%

20%

0%

89.8

9%

83.3

8% 94.6

4%

92.4

6%

98.0

4%

82.7

9%

98.6

7%

95.2

4%89

.09%

96.9

3%

97.0

3%

99.4

2%

83.1

1%

99.1

6%

100.

00%

96.0

0%

100.

00%

100.

00%

100.

00%

100.

00%

83.3

3%

%InstallationordersFulfilledwithin24hours

%InstallationordersFulfilledwithin48hours

%InstallationordersFulfilledwithin7normalcalendardays

30-Jun-2003

30-Jun-2005

31-Dec-2003

31-Dec-2005

30-Jun-2004 31-Dec-2004

30-Jun-2006

97.05%Average94.28%

Average91.41%Average


Fig.4.18PSTN-FulfillmentofInstallationOrders

PSTN-Resolution of Billing Complaints

PSTN-Fulfillment of Installation Orders


��

4. GeneralCustomerComplaintHandlingThe standard for thenumberof general customer complaints is that it shall not exceed50complaintsper1,000customers.Theindustryhasperformedexceptionallywellinthisarea,achievinganaverageof8.96complaintsfor1,000customers.Itiswellbelowthemaximumstandard,whichisat50.

PCS

1. BillingComplaintsofBillsIssuedInsummary,theperformanceofthePCSprovidershasslightlydropped,from0.27%inJune2003to0.36%inJune2006.However,itisstillwellwithintheminimumstandardof2%.Onaverage,thePCSprovidersrecorded0.33%ofbillingcomplaintsagainstthebillsissuedtothecustomers.


Fig.4.19PSTN-GeneralCustomerComplaintHandling

16

14

12

10

8

6

4

2

0

10.1310.87

14.44

8.63

4.94

8.80

4.93

30-Jun-2003

31-Dec-2003

30-Jun-2004

31-Dec-2004

30-Jun-2005

31-Dec-2005

30-Jun-2006

8.96Average


Fig.4.20PCS-BillingComplaintsofBillsIssued

0.50%

0.45%

0.40%

0.35%

0.30%

0.25%

0.20%

0.15%

0.10%

0.05%

0.00%

0.27%0.29%

0.27%

0.44%

0.34% 0.34%0.36%

30-Jun-2003

31-Dec-2003

30-Jun-2004

31-Dec-2004

30-Jun-2005

31-Dec-2005

30-Jun-2006

0.33%Average

PSTN-General Customer Complaint Handling

PSTN-Billing Complaints of Bills Issued

No

. of

Co

mp

lain

ts


��

2. ResolutionofBillingComplaintsTherehasbeenanimprovementofresolutionofbillingcomplaints.Theindustry,however,hasnotcompliedwiththeminimumstandardsofbillingresolutionwithin15businessdays.Thestandardissetat90%whiletheindustryhasonlyachieved88.9%.Thisismainlyduetothebadperformanceduringthefirstthreereports.Ontheotherhand,thePCSprovidershaveonaverageperformedabovetheminimumstandardonbillingresolutionwithin30businessdaysat95.08%.Theminimumstandardissetat95%.


Fig.4.21PCS-ResolutionofBillingComplaints

100%

95%

90%

85%

80%

75%

70%

65%

60%

55%

50%%Billcomplaintsresolvedwithin15businessdays %Billcomplaintsresolvedwithin30businessdays

78.1

0%

78.8

2%

79.5

0%

95.0

5%

96.5

6%

96.1

6%

98.0

9%

93.6

7%

85.0

2%

91.7

1%

98.1

5%

98.8

6%

98.9

4%

99.2

3%

30-Jun-2003 31-Dec-200531-Dec-2003 30-Jun-200630-Jun-2004 31-Dec-2004 30-Jun-2005

88.90%Average

95.08%Average

3. GeneralCustomerComplaintHandlingThe industryperformed reasonablywellafter recordingasudden increase in thenumberofgeneralcustomercomplaints for thereport30June2004. Theaverageperformanceof theindustryis21.05complaints;whichiswellwithinthemaximumstandardof50.


Fig.4.22PCS-GeneralCustomerComplaintHandling

21.05Average

40

35

30

25

20

15

10

5

0

12.41 12.11

34.43

26.6523.93

16.46

21.33

30-Jun-2003

31-Dec-2003

30-Jun-2004

31-Dec-2004

30-Jun-2005

31-Dec-2005

30-Jun-2006

PCS-Resolution of Billing Complaints

PCS-General Customer Complaint Handling


�0

DIAS

1. BillingComplaintsofBillsIssuedThe performance of DIAS providers has shown an improvement in trend, with an averageperformanceof0.07%againstthemaximumstandardof2%.

2. ResolutionofBillingComplaintsOverthelastfouryears,theperformanceoftheindustryhasbeenoverallconsistent,althoughtherewasaslightdropintheperformanceforthe30June2005report.

Onaverage,theindustryhasresolved92.94%ofbillingcomplaintswithin15businessdays,shortoftheminimumstandardof95%.Inaddition,98.26%ofthebillingcomplaintshavebeenresolvedwithin30businessdays,surpassingtheminimumstandardof95%.


Fig.4.23DIAS-BillingComplaintsofBillsIssued


Fig.4.24DIAS-ResolutionofBillingComplaints

0.07%Average

92.94%Average

98.26%Average

0.25%

0.20%

0.15%

0.10%

0.05%

0.10%

0.05%

0.00%

100%

95%

90%

85%

75%

70%

30-Jun-200330-Jun-2005

31-Dec-200331-Dec-2005

30-Jun-2004 31-Dec-200430-Jun-2006

30-Jun-200330-Jun-2005

31-Dec-200331-Dec-2005

30-Jun-2004 31-Dec-200430-Jun-2006

0.22%

0.04%0.06%

0.12%

0.04%

0.02%0.01%

96.7

7%

95.3

0%

97.4

0%

87.8

9%

80.6

1%

96.4

2%

96.2

1% 98.4

9%

97.8

7%

97.1

5%

98.3

8%

98.9

6%

98.6

1%

98.3

6%

%Billcomplaintsresolvedwithin15businessdays %Billcomplaintsresolvedwithin30businessdays

DIAS-Billing Complaints of Bills Issued

DIAS-Resolution of Billing Complaints


�1

3. GeneralCustomerComplaintHandlingThe industry has performed reasonably well in the 30 June 2006 report, after number ofgeneralcustomercomplaintsforthe31December2004to30June2005reports.Theaverageperformanceoftheindustryis18.42,wellwithinthemaximumstandardof50.


Fig.4.25DIAS-GeneralCustomerComplaintHandling

18.42Average

35

30

25

20

15

5

0

30-Jun-200330-Jun-2005

31-Dec-200331-Dec-2005

30-Jun-2004 31-Dec-200430-Jun-2006

Numberofgeneralcustomercomplaintsper1000linesp.a.

5.55

14.01 14.09

18.56

33.30

27.73

15.73

CASP

1. AnnualServiceAvailabilityFor the Content Application Service Providers, the performance in the standard of AnnualServiceAvailabilityhasbeenconsistentlyabovetheminimumstandardat99%.Theindustryhasonaveragerecorded99.84%withalowestperformancerecordedfor31December2003reportat99.66%.


Fig.4.26CASP-AnnualServiceAvailability

100.00%

99.90%

99.80%

99.70%

99.60%

99.50%30-Jun-

200331-Dec-

200330-Jun-

200431-Dec-

200430-Jun-

200531-Dec-

200530-Jun-

2006

99.84%Average99.83%

99.66%

99.90% 99.90%99.94%

99.86%99.82%

DIAS-General Customer Complaint Handling

CASP-Annual Service Availability


�2

Public Payphone Service

1. ServiceAvailabilityThe performance of the industry has been consistent, but it only managed to record anaverageof87.69%.This isstillbelowtheminimumstandardof90%.Thebelowstandardperformancewascontributedbythebadperformancesinthefirsttworeports,butsincethenithassignificantlyimproved.

Digital Leased Line (DLL) Service

1. AnnualServiceAvailabilityFor Local DLL, the industry shows a decreasing trend, but still it managed to, on average,performabovetheminimumstandardat99.92%againsttheminimumstandardat99%.

ForNationalDLL,theindustryhasshownanoverallimprovementandexceededtheminimumstandardat99.91%.Theminimumstandardisat99.9%.

Ontheotherhand,theindustryhasnotmanagedtomeettheminimumstandardforInternationalDLL.Onaverage,theindustryrecorded99.93%againstthestandardof99.99%.Thisstandardismeasuredfromthenetworkterminatingunitofanoriginationpointtothenetworkterminationunitoftheterminatingpoint.ForInternationalDLL,itmeansthestandardismeasuredbasedonthewholelengthofthecircuit,withoutanyexclusionclauses.Thedowntimeofthecircuitwouldincludecasesduetoforcemajoureandcablecutcausedbythirdparty.


Fig.4.27PublicPayphoneService-ServiceAvailability

30-Jun-2004

31-Dec-2004

30-Jun-2005

31-Dec-2005

30-Jun-2006

100%

80%

60%

40%

20%

0%

87.69%Average

73.02%77.69%

93.34%97.44% 96.95%

Public Payphone Service-Service Availability


��

2. FulfillmentofInstallationOrdersIn general, the industry performed better in complying with the standard on fulfillment ofinstallationordersforthefirstlevel(90%fulfillmentwithin1weekforLocalDLL,2weeksforNationalDLLand4weeksforInternationalDLL)ascomparedtocomplianceonthesecondlevel(100%fulfillmentwithin2weeksforLocalDLL,3weeksforNationalDLLand5weeksforInternationalDLL).

Theserviceproviders,onaverage,managedtocomplywiththestandardforfirstlevelbutnotthesecondlevel.Forthefirstlevel,theindustryhasonaveragereported93.88%fulfillmentagainstthestandard90%.Forthesecondlevel,theaverageindustry’sperformancewasat95.26%againstthestandardat100%.


Fig.4.28DigitalLeasedLine-AnnualServiceAvailability

LocalDLL NationalDLL InternationalDLL

99.97%

99.95%

99.93%

99.91%

99.89%

99.87%

99.85%

30-Jun-2004 30-Jun-200631-Dec-2004 30-Jun-2005 31-Dec-2005

99.92%Average

99.91%Average

99.93%Average

99.9

0%

99.9

3%

99.9

5%

99.9

0%

99.9

3%

99.8

7%

99.9

0%

99.9

4%

99.8

7%

99.9

6%

99.9

1% 99.9

2%

99.9

5%

99.9

4%

99.9

2%


Fig.4.29DigitalLeasedLine-FulfillmentofInstallationOrders


100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%LocalDLL

(1week)LocalDLL(2weeks)

NatDLL(2weeks)

NatDLL(3weeks)

Int’lDLL(4weeks)

Int’lDLL(5weeks)

98.3

6%97

.69%

98.0

5%

62.5

3%99

.85%

99.4

5%

99.4

1%99

.48%

99.9

3%63

.40%

97.5

8%97

.74%

98.5

7%85

.50% 98

.01%

99.6

5%99

.64%

99.8

1%86

.53% 10

0.00

%

97.0

7%98

.33%

99.8

4%

98.7

5%

80.3

9%

100.

00%

100.

00%

100.

00%

86.9

6% 100.

00%

Digital Leased Line-Annual Service Availability

Digital Leased Line-Fulfillment of Installation Orders


��

3. FulfillmentofRestorationRequestThe average industry performance on fulfillment of restoration request was at 97.48% forfulfillmentwithin24hours and98.57% for fulfillmentwithin48hours. For fulfillmentwithin24hours,theperformanceseemedtobeonadownwardtrendbutstillmanagedtoperformabovetheminimumstandardat80%.Forfulfillmentwithin48hours,therewasanimprovingperformancetrendandtheindustryperformedabovetheminimumstandardof90%.

Broadband Access Service

1. FulfillmentofInstallationOrdersTheindustry’sperformancehasbeenslightlydecreasing.However,theindustryhascompliedwith the standard set by MCMC for fulfillment within 24 hours at 83.22% and 48 hours at91.07%(standardsat80%and90%respectively).

Forfulfillmentwithinsevendays,theindustryhasperformedbelowtheminimumstandardof100%,recordingonly95.43%.


Fig.4.30DigitalLeasedLine-FulfillmentofRestorationRequest


Fig.4.31BroadbandAccessService-FulfillmentofInstallationOrders



100%

99%

98%

97%

96%

95%Fulfilledwithin24hours Fulfilledwithin48hours

97.2

3%

97.5

0% 98.0

6%

97.1

6%

97.4

5% 97.9

1%

98.0

8%

98.9

2%

98.8

2%

99.1

5%

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%Fulfilledwithin24hours Fulfilledwithin48hours Fulfilledwithin7days

92.7

2%

91.4

0%

91.5

2%

56.6

9%

83.7

6% 97.7

2%

96.8

0%

97.1

6%

71.8

5%

91.8

5%

100.

00%

99.9

1%

99.7

9%

82.6

5% 94.8

2%

97.48%Average

98.57%Average

83.22%Average

91.07%Average

95.43%Average

Digital Leased Line-Fulfillment of Restoration Request

Broadband Access Service-Fulfillment of Installtion Orders


��

2. FulfillmentofRestorationRequestThe industry’s performance was at 89.73% for fulfillment within 24 hours and 97.06% forfulfillmentwithin48hours.

Forfulfillmentwithin24hours,theperformanceseemedtobeonadownwardtrendbutstillmanagedtoperformabovetheminimumstandardat80%.Forfulfillmentwithin48hours,therewasanimprovingperformancetrendandtheindustryperformedabovetheminimumstandardof90%.


Fig.4.32BroadbandAccessService-FulfillmentofRestorationRequest


100%

98%

96%

94%

92%

90%

88%

86%

84%

92%

80%

78%

85.3

7%

90.2

9%

93.2

9%

89.3

8%

90.3

4%

95.8

9% 97.5

2%

97.9

5%

96.0

0% 97.9

6%Fulfilledwithin24hours Fulfilledwithin48hours

3. NetworkPerformanceThere are four standards set for Network Performance, Network Latency, Throughput orBandwidthUtilisation,PacketLossandAnnualNetworkServiceAvailability.

Basedonthefivereportssubmitted,thereweregenerally improvementsfornetworklatencyand throughput,but therewasa slightdecrease in annual network serviceavailability. Forstandardpacketloss,theindustryhasperformedconsistentlywellbelowthestandardof1%.

Theindustryhasmettheminimumstandardsonnetworklatencyandthroughputrecordingat99.72%and97.21%respectively. MCMCsetbothstandardsat95%.ForAnnualNetworkServiceAvailability,theindustryperformedbelowtheminimumstandardat99.62%whereasthestandardsetisat99.99%.

89.73%Average

97.06%Average

Broadband Access Service-Fulfillment of Restoration Request


��

Rates Regulation

Rateregulationsgenerallycovertherulesandprinciplesusedinratesetting.Ratemonitoringontheotherhandcoverscompliancebyserviceproviderstoanyrulesandprinciples,marketratesbeingofferedandinparticular,theregulatedratessetbytheMinister.

Communications and Multimedia Act, 1998 (CMA)


Fig.4.33BroadbandAccessService-NetworkPerformance


100%

98%

96%

94%

92%

90%

88%

86%

84%

82%NetworkLatencybelow

85msBandwidthutilisationmore

than70%ofsubscribedlevel

AnnualNetworkServiceAvailability

99.6

7%

98.9

4%

100.

00%

100.

00%

100.

00%

98.0

6%

88.8

9%

99.0

8%

100.

00%

100.

00%

99.9

8%

99.9

5%

99.9

8%

98.9

0%

99.2

9%

CMA

Section 197

Section 198

Section 201

Ratesettingbyserviceproviders:-a.serviceprovidermaysetratesinaccordancewiththemarketrates,andb.topublishtherateschargedtocustomersforoneormoreservices.

Principlesonratesetting:a. ratesmustbefairand,forsimilarlysituatedpersons,notunreasonably discriminatory;b. ratesshouldbeorientedtowardcostsand,ingeneral,cross-subsidiesshouldbe eliminated;c. ratesshouldnotcontaindiscountsthatunreasonablyprejudicethecompetitive opportunitiesofotherproviders;d. ratesshouldbestructuredandlevelssettoattractinvestmentintothe communicationsandmultimediaindustry;ande. ratesshouldtakeintoaccounttheregulationsandrecommendationsofthe internationalorganisationsofwhichMalaysiaisamember.

RulesregardingratesbyMinister–RatesRules2002.

Description

Source:MCMC,CMA

Fig.4.34Sections197,198and201CMA

99.72%Average

97.21%Average

89.62%Average

Broadband Access Service-Network Performance


��

Communications and Multimedia (Rates) Rules 2002

Rate Monitoring as at June 2006

1. FixedLineTelephoneBasedonrandomchecksonallmajorserviceproviders,MCMCfoundthattherewascompliancewith the specified rates in terms of the line rental (access charge) and the call charges aspublishedinwebsitesandcustomerservicecentres.Arandomcheckcarriedoutontelephonebillsissuedalsoindicatedcompliance.

2. MobileCellularServiceMCMCmonitoringfoundthattherewereatotalof23packagesofferedbythethreeserviceproviders.Outofthese,18werepost-paidpackages,onelessthanintheprevioushalf-yearreporting.

Thenumberofmobilesubscribersaresteadilyincreasingandthemarketisverycompetitive.Thiswasevidentinthenewpromotionproductsoffered,especiallythevalueaddedservicessuchasfor“activenumbers”or“familyandfriends”.Aserviceproviderforexample,introducedmobileTV,trafficinformation,voicerecordedSMSandpictogramSMS.

TheratesandchargesforvoicecallsandSMShaveslightlydecreased.Thissituationappearstobethenormasserviceproviderscompetevianichemarketing;offeringbundledvalueaddedservicestospecificgroupsofpotentialusers.

BasedonMCMCmonitoringoncompliance tosection197of theCMA, that is,on the ratesettingandtherequirementtopublishrates,MCMCfoundthattheserviceprovidershavemadeavailabletherateschargedtoitscustomers,normallyonthewebsites,mediaadvertisements,brochuresandalsothroughtheircustomerservicehotlines.

Inrespectof3GserviceswhicharecurrentlyofferedbyMaxisandCelcom,thecoverageisstillconcentratedaroundthreemaincities,i.e.,KualaLumpur,PenangandJohorBahru.However,thecontentandapplicationsofferedinthe3Gportalshaveslightlyincreased.

Rule3 – NotificationofchargeareaandchargedistrictRule4 – ChargeforeffectivecallRule5 – ChargeforeffectivelocalcallRule6 – ChargeforeffectivenationalcallRule7 – ChargeforusingpublicpayphonefacilityRule8 – ServicechargeforoperatorassistanceRule9 – ChargeforInternetaccessserviceRule10 – ChargeforaudiotexthostingserviceRule11 – RentalRule12 – ConnectionfeeRule13 – ReconnectionfeeRule14 – DepositRule15 – Remissionofsumdue

Rules covering range of service charges and activities under Rates Rules 2002

Source:MCMC,CommunicationsandMultimedia(Rates)Rules2002

Fig.4.35CommunicationsandMultimedia(Rates)Rules2002


��

3. Dial-UpInternetAccessServiceTheRateRules2002regulatesthedial-upInternetchargesthroughPublicSwitchedTelephoneNetwork(PSTN)dial-upshortcode151x(x=1,2,5,6,7and9).Uponassessment,theMCMCfoundthatallserviceproviderscompliedwiththisrule.

Inaddition,someserviceprovidersofferthedial-upservicethroughPSTNvianormalPSTNnumbers,andtherateschargedisasperPSTNcalls.

TMhasintroducedanewservicecalled“EzNet”,adial-upservicefromanywhereinMalaysiaviaTM’sfixedlineservicethrough1315accessnumber.Itisaninstantdial-upservicewithouttheneedtoregister.However,thedial-upserviceischargedatalocalcallrate,i.e.,foursenperminute.

4. BroadbandInternetAccessServiceBroadbandservicehasbecomeincreasinglypopularorrathernecessarywiththedependencyonnumerousapplicationssuchase-mailsandonlinetransactions.Wesawasteadyincrementinthenumberofsubscribersoverthelastthreeyears.

Onthetypeofconnection,AsymmetricDigitalSubscriberLine(ADSL)isstillthemostpopularmethod.However,serviceprovidershavestartedtoaggressivelymarketwirelessbroadbandservices.

Lookingatthesnapshotofthepackagesofferedforbroadbandaccessservice,thepricesaregettingcheaper.eBTechnologiesoffers10hoursusageoflimitedserviceatRM18,whichisslightlycheaper thanTMNet’satRM20.However, theserviceofferedbyeBTechnologies iswirelesswhereasTMNet’sisonADSLmode.Outofthesevenserviceproviders,atotalof69packageswereofferedofwhich41ofthemutilisewirelesstechnology.

Atthepackagespeedof512kbpsunlimitedusage,eBTechnologiesoffersthecheapestatRM52(wireless)whereasTMNetoffersRM66(ADSL).Ataspeedof1Mbps,eBTechnologiesagainoffersthecheapestpackageatRM75(wireless)whilstTMNetisofferingatRM88(ADSL).Someofthekeyfactorsthatcontributestotheincreaseinbroadbandsubscriptionareaffordabilityoftheservice,largerservicecoverageandtheaggressivemovebyotherserviceproviders(otherthanTMNet),suchasJaring,eBTechnologiesandTIMEdotNet.

BasedonMCMCmonitoringforcompliancetosection197oftheCMAonratesettingandtherequirementtopublishrates,MCMCfoundtheserviceprovidershavemadeavailabletherateschargedtoitscustomers,normallyonthewebsitethroughmediaadvertisements,brochuresandalsothroughtheircustomerservicehotlines.

Consumer Complaints Received by MCMC

Atotalof664complaintswerereceivedbyMCMCinyear2006ascomparedto373complaintsreceivedinyear2005.Thisrepresentsanincreaseof43.8%.


��

The most frequent category of complaints received is poor services provided by a serviceprovider,i.e.,servicedowntime/lineinterruption,slowinternetspeedfollowedbySMSservice,i.e.,receivingunsolicitedSMSandunabletostoptheservice.

Regularmeetingswiththeserviceprovidersconcernedareheldtodiscussandaddresstheissue.Theyhaveamongothersimplementedthenetworkandsystemupgradinginordertoimprovetheservice.

InmanagingtheSMSissue,aWorkingGroup(WG)comprisingrepresentativesfromtheMCMC,PublicCellularService(PCS)providersandContentProviderswassetuptodiscussindetailontheimprovementtotheGuidelineonProvisionofMobileContentandServices(Guideline).TherevisedGuidelinehasbeenissuedon9June2006forimplementationeffective1July2006.

The revised Guideline has incorporated additional suspension and reactivation clauses tofurtherstrengthenthemonitoringandenforcementactiononnon-compliancewithregardtoMobileContentandServices.

Required Application Services

Required Application Services (RAS) is a set of required applications that service providersmustprovidetoconsumers.TheCMAlists(butnot limitedto)theservicesunderRAS, i.e.,emergencyservices,directoryassistanceservices,operatorassistanceservicesandservicesfordisabledconsumers.

Complaints Received in 2006


Fig.4.36ComplaintsReceivedin2006

No

. of

Co

mp

lain

ts

80

70

60

50

40

30

20

10

0

Month

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

37

5256

45

59

4954

6974

33

72

64


�0

The following instrumentswere issuedandregisteredon22December2004 tosupport theimplementationofRAS:

a. MinisterialDeterminationonthe listofRequiredApplicationsServices (Determination No.1of2004) b. Ministerial Determination on Required Applications Services (Determination No.2 of 2004) c. MinisterialDirectiononRequiredApplicationsServices(DirectionNo3of2004)

The MCMC is to issue a Commission Direction to the affected service providers indicatingtheoperationaldetailsforprovisioningofRAS.Towardsthisend,apublicconsultationpaperentitled“ProposalfortheRequiredApplicationsServicesOperationalDetailsunderSections193(2)and194oftheCMA”waspublishedon12October2005toobtainpublicfeedbackonthescopeoftheRASimplementationwhichisbeingproposedbytheMCMC.AsecondroundofPublicConsultationPaperwaspublishedfrom1March2006to14March2006.APublicConsultationReportwaspublishedon12July2006whereMCMCdetailstherecommendationsmadeaftertakingintoconsiderationthecommentsreceived.TheMCMCiscurrentlydevelopingtheCommissionDirectionontheprovisionofRAS,whichisexpectedtobefinalisedinearly2007.

As part of the RAS services the MCMC has also started looking into services for disabledconsumers.Inlate2005,meetingswereheldwiththeMEWCandvariousNon-GovernmentalOrganisations(NGOs)todiscussthewayforward.Aformalstudyontheservicesfordisabledconsumerswillbeundertakenin2007.

COMPETITION AND ACCESS TO SERVICES

Access Regime

TheAccessregimeisessentiallyaregulatoryregimetofacilitateequitableaccesstonetworkfacilitiesandservicesamongstoperatorsundernon-discriminatorytermsandconditions.

Subsequent to the public inquiries held in 2004–2005, the various instruments to manageaccessandinterconnectioninMalaysiainclude:

a. CommissionDeterminationonAccessList,DeterminationNo.1of2005(ALD2005) b. CommissionDeterminationontheMandatoryonAccess,DeterminationNo.2of2005 (MSA2005) c. Commission Determination on the Mandatory Standard on Access Pricing, DeterminationNo.1of2006(MSAP2006)

MSAP2006,whichcameintoforceon15February2006,mandatespricesfor11facilitiesandservicesfrom15February2006to31December2008.Indicativepriceswerealsopublishedforsevenfacilitiesandservices.

Registration of Access Agreements

PursuanttoALD2005andMSA2005,operatorsarerequiredtoamendexistingagreementsorenterintonewagreementsandtosubmittotheMCMCforregistration.


�1

As at 12 June 2006, MCMC had received a total of 18 Access Agreements submitted byoperatorsforregistration.Subsequently,asat15November2006,theMCMCreceivedtwofurtherAccessAgreementsforregistration-amountingto20AccessAgreementssubmittedtotheMCMCforregistrationinall.

Consultation on Implementation of 1800-Freephone for VoIP Services

Duringtheevaluationprocessofthe18AccessAgreements,theMCMCreceivedcomplaintsfromVoIPoperatorsthattheyarerequiredtomigratetheirservicesfrom7/8digitnumbersto1800-freephonenumbersonly.TheMCMCnotedthattheagreementscontainedaclauseontheprovisionofVoIPservicesusing1800-freephonenumbersonly.Accordingtotheagreements,ifusageofthe7/8digitnumberswerecontinued,anoriginationchargewillapply insteadoftermination.

AstheissuewillsignificantlyimpacttheVoIPindustry,MCMCdecidedtoconsulttheindustryinSeptember.Intheconsultationpaper,theMCMCrequestedfeedbackonthreeoptionsfortheprovisioningoftheVOIPservices:

a. Option1–StatusQuo–Using1800-freephoneand7/8digitnumberwithtermination charges b. Option2–Using1800-freephoneonly c. Option3–Using1800-freephoneand7/8digitnumberwithoriginationchargesuntil theissuesregardingcongestionandqualityisresolved

A total of 82 licensees comprising VoIP operators and Tier-1 telcos were consulted. Fromthese,28submissionswerereceived.

After an evaluation of all the responses, MCMC decided to maintain the status quo whereboth the 1800-freephone number and 7/8 digit numbers will continue to be used for VoIPservices.Thechargingprinciplewillremainasterminationchargependingstudiesontheissueofwholesalebusinesssuchaspricingofleasedlinesandservicelevelagreementsamongsttelcos.MCMCrecognizesthatthelongtermsolutionwouldbetouse1800-freephoneforVoIPserviceswithoriginationchargeandnottermination.Thiswouldbeinlinewiththeprincipleofcostcausationwherethepartythatcausesthechargetobeincurredwillpay.

Interconnection of 0154 Services

The0154numberrangeisassignedtooperatorstosupportapplicationsservicessuchasvoiceanddatacallsdeliveredover IPnetworks. Thenumberwillallowsubscribers tomakeandreceivecallsfromIPtoIP,IPtoPSTN,IPtomobileandviceversa.Todateabout18operatorshavebeenassignedwiththe0154numberranges.

The VoIP operators who planned to provide 0154 services would need to negotiateinterconnectionarrangementswithfixedandmobileoperators,basedontheFixedNetworkOriginationService,FixedNetworkTerminationService,MobileNetworkOriginationServiceand Mobile Network Termination Service under ALD 2005. VoIP service is included in thereviseddefinitionofFixedNetworkOriginationServiceandFixedNetworkTerminationServiceinALD2005.

Thenegotiationprocessiscurrentlyunderwayandisbeingmonitoredclosely.


�2

Review on Bitstream Services

Pursuant to theALD2005, four formsofaccess tonetworkelements (ANE) (alsoknownasunbundlingofthelocalloop),namelyfullaccessservice,linesharingservice,bitstreamservicesandsub-loopserviceweremandated.However,itwasdecidedthattheimplementationwouldbeinphasestoensureeffectiveandsustainableimplementation,withthebitstreamservicesbeingimplementedeffective1July2005.TheotherthreeformsofaccesswouldbeimplementedatadatetobedecidedbytheMCMC.Indecidingthedateofcomingintoforceofthethreeforms,theMCMCmaytakeintoaccountfactorsincludingbutnotlimitedto,marketresponsetotheimplementationofbitstreamservicesandrequirementsofaccessseekersandaccessproviders.

InJuly2006,theMCMCconductedasurveytogaugethedemandforbitstreamservicesaswellasthedemandfortheotherthreeformsofANE.Questionnairesweresentto50NetworkServiceProviderIndividual(NSP(I))andApplicationServiceProviderClass(ASP(C))licensees.Thirty six (36) responses were received from the respondents. Most of the licensees whorespondedwereaccessseekers.

Atthetimeofwriting,adecisionhasnotbeenreached.

Competition Regulation

Since thesecondhalfof2005 toendof2006,MCMCreceivedanumberofallegationsonanti-competitivebehaviouragainstmajorplayersallegingconductwhichinvolvessubstantiallesseningofcompetition(SLC).

InaccordancewiththecompetitionprovisionsintheCMA,MCMChasadutytoensurethatthereiseffectivecompetitionandtoprotectthelong-terminterestsofend-users.Accordingly,MCMCtookstepstoassesstheallegations,includinginvokinginformationgatheringpowersundersection73oftheCMA.

Highlights of Cases in Allegations of Anti-Competitive Behaviour

1.AllegationsofAnti-CompetitiveBehaviouragainstMaxisGroupofCompanies(“Maxis”) bytheVoIPOperators:MaxisVoiceAwayInSeptember2005,theMCMChasreceivedcomplaintsfromseveralVoIPoperatorsallegingMaxis’anti-competitivebehaviorduetotheintroductionoftheMaxisVoiceAwayretailservicesproductbyMaxisBroadbandSdnBhd(MB)on15August2005.TheVoIPoperatorsallegedthatMaxisVoiceAwayischeaperthanthewholesalerateofferedtothembyMaxisInternationalSdnBhd(MI).

Inassessingtheallegations,MCMChadinDecember2005issuedawrittennoticepursuanttosection73oftheCMAoninformationgatheringpowersrequiringMBandMItoprovidethenecessaryinformation.AprivatehearingwasalsoheldbytheMCMCinJanuary2006pursuanttosection73(2)(e)oftheCMA.

TheMCMCconsideredvariousmattersandisoftheviewthattheintroductionoftheMaxisVoiceAwayBizConnectproduct is inbreachofsection133oftheCMA. InApril2006,theMCMCissuedaDirectiontoMBundersection51oftheCMArequiringMBtoceaseprovidingtheVoiceAwayBizConnectservicenolaterthan1June2006.


��

2.AllegationsofAnti-CompetitiveBehaviouragainstTM’sMerdekaPlanTMintroducedapromotionalpackageknownasTMMerdekaPlanforitsresidentialandsmalland medium enterprise (“SME”) customers with fixed line and wireless services. The planraisedconcernfromVoIPoperatorswhoallegedthatTMisabusingitsdominantposition.

Inassessingtheallegations,theMCMChadinNovember2005issuedawrittennoticepursuanttosection73oftheCMAoninformationgatheringpowersrequiringTMtoprovidethenecessaryinformation.

A private hearing was conducted wherein the MCMC concluded that there is no evidencethatthelaunchofTMMerdekaPlanconstitutesasubstantiallesseningofcompetitionundersection133.Further,thereisnoevidencetoindicatethatTMMerdekaPlanisanabuseofTM’sdominantpositioninthefixedlineandinterconnectionmarket.

3. Allegations of Anti-Competitive Behaviour Against TM’s Channel Partners Programme(TMCPP)andSmartCallAllegationsweremadeagainstTMCPPandSmartCallPlanmainlybyVoIPoperators.TheseallegationswerethattherewerediscriminatorypricingandmarginsqueezebyTMwhichwillresultinsubstantiallylesseningofcompetition,anoffenceundersection133oftheCMA.TheVoIPoperatorsalsoallegedthattheplansspecificallytargetedtheircustomers.

TheMCMCfoundCPPtocontainelementsofresalepricemaintenanceandTMsubsequentlysuspendedCPP inJune2006. SmartCallwas launched inSeptember2006andwhile thesamecomplaintswereallegedbytheVoIPoperators,theMCMCdidnotfindanyelementsinthePlanthatbreachestheCMA’scompetitionprovisionintheCMA.

Mobile Market

TheMCMCmonitorsthemobileoperators’marketshares,revenuesandprofitabilityaswellastheirmobilepackagesonaregularbasisforanyindicationsofanti-competitiveconductthatmayconstituteaSLCinthemobilemarket.

In 2006, it was found that competition between the players continue to stiffen in terms ofproduct offerings and pricing. This has resulted in higher mobile growth as shown by theMalaysianmobilepenetrationratewhichhasincreasedtoanear-maturitycellularpenetrationrateof72%in2006outofapopulationof27million.

Duetomarketmaturityatthehighervaluesegmentsofthemarket,theoperatorscontinuetofocustheireffortsonpenetratingthelowervaluemarketanduntappedmarketsegmentsinordertogrowtheirmarketshare.ThepriceofprepaidSIMpacksalsocontinuedtodecline.MaxisdroppedthepriceofstarterpacksfromRM8.80perunittoRM6.00forEasyTalkandTotalPlan,makingthemthelowestpricedpacksasofOctober.ThisisfollowedbyDiGi’sBeyondstarterpackatRM8.50andCelcom’spackatRM10.Inadditiontotheintensecompetitionforlowvaluemarketsegments,someoftheoperatorshadalsoofferednewtariffstoattractcustomerstotheirnetworks.However,thereisnoevidenceofpredatorypricingwhichcontributestoSLC.Therefore,nointerventionisrequiredfromMCMC.

Althoughcompetingwitheachother, thekey telecommunicationsplayersalsocollaboratedwitheachothertoachieveawin-winsituation.InMay2006,DiGiandMaxislaunchedaninter-operatorFriendFinderservice,enablingcrosstracingover12millionpeoplenationwide.AsacollectiveobjectiveofCelcomandMaxistocreatealargercommunityof3Gusersandboostthepotentialofvideotelephonyandinteractive3Gservicesamongstmobilephoneusers in


��

Malaysia, the two operators announced 3G interconnect video telephone between the twomajor3Gnetworks,allowingCelcomandMaxisuserstomakeandreceivevideocalls,andsendandretrievevideomessagesamongthemselves.

Movingforward,datacouldbethekeyareathatallplayerswillbelookingatwhilesubscribergrowthwillnolongerbedrivenbyrevenuegrowth.CompetitionmayspurconsolidationandARPUisexpectedtofallduetothedecliningratesofferedbytheoperators.Astheearningsgrowthdecreases,capitalmanagementwillbeakeycomponent in theTelco industry. TheMCMCwillcontinuetomonitortheoperatorstoensuretheircompliancewiththecompetitionprovisionsoftheCMA.

Market Supervision and Compliance

TheMCMCcarriesoutmonitoringofspectrumassignmentconditionsandlicenseconditionstoensurethatscarceresourcessuchasspectrumandnumbersareutilisedefficientlyandthatservicesarerolled-outforthebenefitoftheend-users.

Spectrum Assignment Conditions

a.ImplementationofIMT-2000ServicesSpectrum Assignments (SA) were assigned to Telekom Malaysia Berhad (TM) and UMTS(Malaysia) Sdn Bhd (UMTS) on 2 April 2003. As part of their commitment in their DetailedBusinessPlan(DBP),bothSAholdershavecommerciallylaunchedtheir3Gservices.InMay2005,TM launched their3GservicesviaCelcomas their fullMVNO. Subsequently, inJuly2005,UMTSalsolaunchedtheir3GservicesviaMaxisastheirfullMVNO.

MaxisandCelcomfinalisedtheir3G-3Ginterconnectionarrangementthisyear.Since3April2006,customersofMaxisandCelcomareabletomake3Gcallsincludingvoiceandvideotoeachother.

b.TMIngeneral,TM’srolloutof3Gservices isprogressing,albeit there issomedelay in termsofserviceareasrolloutandcoverage.Thereisalsoalackofinter-operatorroamingarrangementswithotherdomesticoperatorsalthoughithasstartedtoimplementsiteswappingarrangementsfor3GnetworkdeploymentandcallinterconnectionwithMaxis.

TMappointedCelcomMalaysiaasaseparateentitytoundertake3GwholesaleoperationsandCelcomMobilefor3GretailoperationsandaMVNOagreementwassignedbetweenCelcomMalaysiaandCelcomMobileinAugust2006.

c.UMTSIn March 2006, Maxis integrated High Speed Download Packet Access (HSDPA) in its 3GnetworkandbecamethefirstinAsiaoutsideJapantoimplementHSDPAwhichofferbroadbandservicestoresidentialusers.ThewirelessbroadbandserviceisofferinghighspeedInternetaccessatthespeedof384kbpsand768kbpstogetherwithatelephoneline.Thiswirelessbroadbandservicewaslaunchedon26September2006intheKlangValley.


��

As at 31 December 2006, UMTS 3G service coverage includes the Klang Valley, Penang,PahangandJohorwithanationwidepopulationcoverageof27%andtotalactivesubscribersof220,000nationwide.

Due toa shortfall of transmitters andsitesdeployedbyUMTSby31December2005, andtherebyconstitutingnon-compliancetotheirDBP,theMCMCimposedapenaltywithapartialdrawdownofRM5millionfromtheirPerformanceGuaranteeofRM50millioninJune2006.

Monitoring of Licence Conditions

Inorder toensurecompliancewith the licenceconditionsand rolloutof serviceswithin thestipulatedtimeframeof12months,MCMCconductssitevisitstothepremisesoflicensees.Theobjectiveofthismonitoringexercise(includingthesitevisits)isto:

a. determine the rollout progress of the Network Facilities Provider Individual (NFP(I)) and/orNetworkServiceProviderIndividual(NSP(I))licenseeholders b. ensure compliance with shareholding requirements and other special license conditions;and c. recommendfurtheractiontothemanagement,ifnecessary.

AsofDecember2006,MCMChadvisitednineNFP(I)and18NSP(I)licensees.Amajorityofthelicenseesofferwholesalevoiceand/orbroadbandservices.Mostofthelicenseescompliedwiththeroll-outrequirementwithinthestipulatedtimeframeof12months.Ofthem,twolicenseesexceededtheirrolloutplansintermsofcoverageareasandperformance.Onlytwolicenseesfailedtorollouttheirserviceswherebybothlicenseesrequestedforanextensionoftime.

Negotiations in Free Trade Agreement (FTA)

1.Malaysia–USTheMalaysia-USAFTAcommencedinJune2006andtodate,therehavebeenthreeroundsofnegotiations,whichtookplaceinJune,JulyandNovember.TheMCMChasbeenactivelyinvolvedinnegotiationsofthetelecommunicationsande-Commercechapters.

2.Malaysia–AustraliaTheMalaysia-AustraliaFTAcommencedinMay2005.Thefirstfewmeetingsweremainlyheldtoscopetheadministrativeframework,negotiatingprinciplesandobjectives.ThefullroundofnegotiationscommencedinFebruary2006. Todate, theMCMChasbeen involved inthreeroundsofnegotiationsonthetelecommunicationsande-CommercechapterswhichtookplaceinMarch,MayandJuly2006.


��

CHALLENGES IN REGULATING CONTENT

Rapidtechnologicaldevelopmentsandglobalisationposesimmensechallengesinregulatingcontent. Availability andaccessibility to variousnewmediahasmade traditionalmodesofcontentregulationalmostobsolete.Theconceptof“commandandcontrol”practisedpreviouslyisbeingreplacedwithnewconceptslike‘self-regulation’,providinggreaterresponsibilityandaccountabilitytoserviceprovidersandusers.

Withcontentbecoming increasingly ‘personalised’and the increasingpopularityof ‘contentsharing’amongusers, there isamuchgreaterneedtoensurethegeneralpublic,especiallyparents, are better equipped with the relevant knowledge on how to control and managecontent.

Industry Overview

Todate, there are a total of 20ContentApplicationsServiceProvider Individual orCASP(I)licencesissuedandoneregisteredlicensee,whichisfortheprovisionofsatellitebroadcastingsubscriptionservice.Ofthe20licencesissued,fourarefortheTerrestrialFree-To-AirTelevisionorFTATV,14forTerrestrialRadioBroadcastingandtwoforSubscriptionBroadcasting.MeasatBroadcastNetworkServicesSdnBhdwhichholdsaRegisteredLicenceundertheCMAisthecountry’ssinglesatellitesubscriptionbroadcastingservice-ASTRO.

Severallicenseesrecommencedcommercialservicesin2006.Ch-9MediaSdnBhdsuspendedservicesin2005duetofinancialdifficultiesandwaslateracquiredbyMediaPrima.OnApril2006,MediaPrimagroupofcompaniesstarteditsfourthFTATVserviceunderbrandname,TV9,whichtargetstheMalaymarket.

Synchrosound Studios Sdn Bhd suspended radio broadcast in October 2005, butrecommenced services in February 2006 under brand name Hot FM. The bahasa Melayustationplayspopularandhitmusichasrapidlygainedpopularity,andisoneofthemorepopularbahasaMelayustationsinthecountry.

The Minister ofEnergy, Waterand Communications onFebruary 2006 granted aCASP(I)licencetoISYHoldingsSdnBhdtoprovideTerrestrialRadioBroadcastingservice.

The licensee, which isexpected to commenceservicesinfirstquarter2007,intendstoprovideitsservicesin the Klang Valley only.Undoubtedly, the new stationwill provide the public withmorechoice in radiostations,in terms of language andcontent. Source:MCMC,Industry

Fig.4.37No.ofTVStationsbyLanguage

No. of TV Stations by Language

BahasaMelayu7

MixedLanguage

4

Chinese2

English5


��

Compliance With Content Requirements

MCMC ensures CASP(I) licensees comply with the Content Code and other contentrequirementsstipulatedintheirlicenceconditionsaswellastherequirementsundertheCMAbythefollowing:

Licence Compliance AssessmentsSevenCASP(I)licenseeswereassessedin2006,thatis,inrespectoftheirlevelofcompliancetolicenceconditionswhichincludeadvertisingminutes,broadcastofnewsandpublicserviceannouncements and language requirements. There were no serious breaches of licenceconditionsdetectedfortheseLicensees.

On-Air Monitoring of Broadcast ContentMCMChasaContentMonitoringCentretomonitorbroadcastcontentofCASP(I) licensees,includingallprivateFTATVandradiostationsaswellassubscriptionbroadcastingservices.Onaverage,betweenfourtosixhoursaweekisspentmonitoringbroadcastcontent.Themainmonitoringfocus in2006wasonpublicserviceannouncements, liveprogrammesandSMSGameShows.Furthermore,theCommissionalsoundertakesgeneralmonitoringofprogrammecontenttoensurethattheycomplywiththevariouscontentrequirements.

Complaints HandlingSeveralconcernswereoncontentpublishedinthelocalnewspapersaswellasthoseraisedin Parliament in 2006. Most of the concerns related to Internet content, in particular, theincreasinglypopular ‘blogs’. Thecomplaints againstblogsaremainly relating to seditious,offensiveordefamatorycontent,someofwhicharealsooffencesunderotherlegislation.

Therefore, 2006 saw an increase inthe number of complaints relating toInternetContent to26complaints. Amajority of complaints (59%) wereaboutoffensivecontent,mainly thoseagainst thesensitivitiesof the Islamicreligion,whileanumberwereregardingracistcontent.

Offencesundersections211and233relate to content which is indecent,obscene, false and menacing withintent to annoy, abuse, harass orthreatenanotherperson.Inrelationtothis,over96%ofthecomplaintswereagainst foreign websites. As such,MCMC was unable to identify thepersons responsible for the contentnorproceedfurtherwithsuchcases.

Source:MCMC

Fig.4.38TypesofComplaintsin2006

Types of Complaints in 2006

Offensive59%

False/Misleading

5%

Indecent/Obscene

18%

Technical/Policy18%

Section3(3)oftheCMAstatesthat“nothingintheActshallbedeemedaspermittingcensorshipof the Internet”. In this regard, the MCMC does not have the power to direct websites tobe blocked. Further, blocking websites is not available as a remedy or punishment undertheAct. Anysuspectedbreachesmustbe investigatedundertherelevantActandwiththe


��

recommendationoftheAttorneyGeneral’sOfficeorbyCourtdecision,sanctionsorpunishmentasprovidedbytherelevantAct,whichmaybeafineand/orimprisonment.

ItisalsonotedthattheCMAisnotthesolelawthatdealswithInternetcontent.ContentontheInternetmayalsobeinbreachofotherlawssuchastheSeditionAct,OfficialSecretsAct,InternalSecurityActandthePenalCode.Insuchcases,uponreportbeingmade,thepolicewillcarryouttheinvestigationundertherelevantstatutes.Inrelationtoothertypesofcomplaintsin2006,theMCMCreceived22complaintsagainstthetelevisionbroadcastsectorwithonly12complaintsonFTAradiostationsand10againstsubscriptiontelevision.

Of the total complaints received, 92% were on programming content and were mainly onprogrammeswhichwereinsensitivetocommunitystandards.Otherareasofcomplaintsrelatedtoadvertisingcontentwherethecomplainantsallegedinappropriateorinaccuratecontent.

Television TV3 NTV7 Channel9/TV9 8TV GeneralTV ASTROGeneral Complaints (CASPs)Radio GeneralRadio HotFM THR.fm AMPRadioOthers Telcos RTMInternet/ WebsitesTotal

2003

9622-3

11

1

74

11-

47

8133586

6

11

1--

43

82-214-

1

6

933

25-32

10-

1

2

-

2651

2004 2005 2006

Number of Complaints Received and Resolved


Fig.4.39NumberofComplaintsReceivedandResolved

Oneof thecomplaints receivedconcerneda televisionstation’sbreakfastshow,whichwasbroadcastlive.Theprogrammecontainedasegmentwhichpromotedalcoholicdrinks.ThecomplainantallegedthatthedialogueandactionsofthehostwereinsensitiveandthewholesegmentwasoffensivetoMuslims.

Astheprogrammewasaliveprogramme,priorapprovaloftheMCMChastobesoughtandconditionsareimposedonthestationswithregardstothecontentthat isbroadcast.Whileaction to revoke approval of the said programme could be taken, the Commission insteadsuspended the host and producer of the programme for three months for breaching theconditionsofapproval.Thedecisionwasmadeinviewofthefactthattheprogrammewasgenerally informative, and apart from this particular incident, does not usually contain anyobjectionablematerial.

Service


��

RESOURCE MANAGEMENT

Spectrumandnumberingformpartofthecountry’snationalresources.Thesearelimitedandscarce,andneedtobemanagedwellinorderforthecommunicationsandmultimediaservicestoplayasignificantroleinsupportofraisingMalaysiancompetitivenessglobally.Therefore,theimportanceofspectrumandnumbermanagementfunctionsoftheMCMCincollaborationwiththeindustry,bothlocalandacrossnationalboundaries.

Spectrum Management

Spectrummanagementisadedicatedprocessthatinvolvesawiderangeofareasandexpertiseandmaybevisualisedasaninter-linkedframeworkcomprisingthefollowingactivities:

1. SpectrumPlanning2. AssignmentofSpectrum3. SpectrumCoordination/Harmonisation4. MonitoringandInterferenceResolution

1. Spectrum PlanningThe Spectrum Plan is an important prerequisite for the intended augmented usage of thespectrumbothintechnicalandadministrativeor licensingterms.TheSpectrumPlanfurtherprovidesaguideastohowthespectrumiscurrentlyusedinMalaysiaandhowit isplannedtobedevelopedinthenearfuture.InternationaltreatiesonthelatestversionoftheITURadioRegulations(asof2004)andupdatesprovidedbythelatestWorldRadioConference(i.e.,WRC2003),aswellasstrategicplanningandpolicyarethebasisforanupdatedSpectrumPlan.

Asstatedundersection172oftheCMA:-

a. TheMCMCmaydevelopaspectrumplaninrespectofanypartorallofthespectrum;b.TheSpectrumPlanshallbemadeavailabletothepublic(includinginelectronicmedia);andc. Section160furtherstatesthatspectrumassignmentistocomplywiththeSpectrumPlan. A spectrum assignment shall not be issued unless it is consistent with the Spectrum Plan.

The updated Spectrum Plan was published on 15 November 2006. A copy is available onMCMCwebsiteat:http://www.mcmc.gov.my/Admin/WhatIsNew/SpectrumPlan_15Nov2006v3.pdf

Spectrumplanningactivitiesinvolveindustryparticipationanddiscussion,whichisexemplifiedintheindustryconsultativecommitteesinthedrawingupoftheSpectrumPlan,StandardRadioSystemPlans(SRSP)aswellastheascertainmentofMalaysia’spositioningthroughinternationalpreparatorymeetingsintheWorldRadioConference.

StandardRadioSystemPlanTheStandardRadioSystemPlan(SRSP)isasubsidiarydocumenttotheSpectrumPlanandit describes the administrative, operational, regulatory and technical requirements for radiosystemsandthechannellingplanforaparticularradioserviceinaspecificbandandasallottedintheSpectrumPlan.TheMCMChascreatedworkinggroupstolookintovariousSRSPssothatthedocumentsmaybeupdatedwithcurrentpracticesandmethods.Sofar,theworkinggroupshavecompletedreviewof31SRSPs.


�0

NewandrevisedSRSPsissuedin2006are:

1. WirelessLAN-5130MHzto5350MHz

2. DigitalTrunkRadioService-806MHzto821MHz/851MHzto866MHz

3. WirelessBroadbandAccessServiceinthebands:-

a. 2300MHzto2400MHz, b. 2504MHz-2688MHz, c. 10.15-10.3GHz/10.50-10.65Ghz, d. 24.25-27GHz,27.0-29.50GHzand31.0-31.3GHz

4. FixedLine-of-sightRadioRelay-21.20GHz-23.60GHz

CopiesoftheabovementionedareavailableonMCMCwebsite:http://www.cmc.gov.my/what_we_do/spectrum/srsp.asp

NationalPreparatoryWorkingGroup(NPWG)andWRC-07The NPWG-07 is the working group in preparation for the World RadiocommunicationConference2007(WRC-2007).

TheWorldRadiocommunicationConference(WRC)istheInternationalForumwhereMemberStatescometogethertoreviseaninternationaltreaty-theRadioRegulations,whichcontainsnotonlyallocations toover40 radiocommunicationservicesbutalsoprovide the technical,operationalandregulatoryconditionsfortheuseoftheradiofrequencyspectrumandsatelliteorbits.ItisheldeverytwotothreeyearswiththepurposeofreachingconsensusonchangesintheRegulations.ThechangestotheITURadioRegulationswillresultinchangesand/orupdatestotheSpectrumPlanandpossiblechangestoMalaysianpolicyandregulatorymatters.

Inorder tostrikeabalancebetween theoften imperativeneed toobtainagreementso thatbusinesses do not miss out on market opportunities without sacrificing national interests,a comprehensive working process needs to be planned, regularly improved and diligentlyimplementedandexecuted.Hence,thesettingupoftheNPWG-07.

BasedonthesuccessofpreviousNPWG-03,theopenandtransparentmanneroftheWRCpreparationinNPWGwhereindustryisdirectlyparticipatingintheWorkingParties,isseentobeconstructive.ItallowsfulldialogueandensuresthedevelopmentofstrongnationalpositionsandMalaysianrepresentationatAPG(AsiaPacificTelecommunityWorkingGroupforWRC)andtheWRCitself.

Source:MCMC

Fig.4.40NPWG-07Activities

NPWG-07 Activities

ToprovideMEWCwithadvice,technicalsupport,andrecommendationsfor2007WorldRadiocommunicationConference(WRC-2007).

Providenecessaryinformation,advice,technicalanalysis,andspecificrecommendationsorproposalsonmattersrelatingto2007WorldRadiocommunicationConferenceandrelatedconferences.

Objective

Scope


�1

2. Process of Assignment of SpectrumTherearethreetypesofassignmentsundertheCMAnamely,SpectrumAssignment,ApparatusAssignmentandClassAssignment.TheMinistermayalsoexemptapersonfromrequiringanassignmentviaanExemptionOrderasprovidedundersection157oftheCMA.AssignmentmustbeconsistentwiththeSpectrumPlan.TheSpectrumPlandividesthespectrum(frequencyupto420THz)inMalaysiaintoanumberoffrequencybandsandspecifiesthegeneralpurposesforwhichthebandsmaybeused.Thisprocessisreferredtoastheallocationoffrequencybandstoradiocommunicationservices.

Thepurposeofanassignmentistoassignspectrumsuitablyandfreefrominterferencefromortousers.Italsoisameanstomanageefficiencyintheuseofspectrum.TheassignmentconferstherightstoapersonasdefinedintheCMAtousethespectrum.

SpectrumAssignmentASpectrumAssignmentconfersrightstoapersontouseoneormorespecifiedfrequencybandsforanypurposeconsistentwiththeassignmentconditions.TheIMT-2000(3G)assignmentsareexamplesofSpectrumAssignment. AsshowninFig.4.41twosetsofspectrumblockswereassignedin2003andanothertwoin2006.

Aspectrumassignment isvaliduptotwentyyearsandtheholdermaytransferortradethespectrum. Thereare twocomponents in the fees foraspectrumassignment. Theyareanannualfeetocontributetowardsthemaintenanceoftheassignmentandthepricecomponentsetthroughauction,tenderorothermethodsasprescribedintheCMA.Inthecaseofthe3Gspectrumassignmentviabeautycontest,thepricecomponentwassetatRM50millionandtheannualmaintenancefeebasedonthenumberofapparatususedintheassignedspectrumband.

IMT-2000 Spectrum Assigned

1950MHz–1965MHz2140MHz–2155MHz2020MHz–2025MHz




2April2003

2April2003

10November2006

10November2006

TelekomMalaysiaBerhad

UMTS(Malaysia)SdnBhd

MiTVCorporationSdnBhd

TTdotComSdnBhd

Licensees Date Assigned Frequency

Source:MCMC

Fig.4.41IMT-2000SpectrumAssigned


�2

ApparatusAssignmentApparatusAssignment(AA)isanassignmentissuedtoapersonororganisationthatneedstouseand/oroperatetelecommunicationsapparatusinaspecificfrequencybandunderspecifiedconditions.TheMCMCmaintainsaregisterofapparatusassignment,whichcanbeviewedat:http://www.mcmc.gov.my/registers/cma/spectrum/index.asp

AAmeansanapparatusisassignedwithsomeattributesorcharacteristicsforittooperateasfollows:

• Aparticularlocationandgeographicareawhereitisused; • Auserandhisrequiredqualification; • Transmitpowerandantenna,includingitsheight;and • Frequencybands,channelsandnumberofchannelsaccordingtotheSpectrumPlan, PolicyandRegulation.

Anapparatusassignmentcanbeacquiredwithin60daysafteracceptanceoftheapplication.

Source:MCMC

Fig.4.42AARegistrationbyType

AA Registration by Type (% Revenue)Total Revenue Collected 2006 : RM84.5 million

CellularStations85.4%

AeronauticalMobileStations0.02%

MaritimeMobileStations0.57%

AmateurRadioStation0.16%

PrivateNetworkStation1.93%

BroadcastStation0.18%

EarthStation1%

TerrestrialMicrowaveStation11.1%


��

ClassAssignmentClassAssignmentconfersrightsonapersontouseafrequencybandorbandsforaspecifiedpurpose.NoapplicationisneededforClassAssignment.TheMCMCmaintainsaregisterofclassassignmentsinMCMCwebsiteat:http://www.cmc.gov.my/registers/cma/ClassAssignment/index.asp

Source:MCMC

Fig.4.43TypesofApparatusAssignments(Services)

MobileAircraftStationShipStationAeronauticalMobileStationExperimentalStationLeasedChannelRadioBaseStationMobileEarthStationMobileStationMaritimeMobileEarthStationAeronauticalMobileEarthStationLandMobileStationCellularRadioBaseStationTrunkRadioBaseStationPagingBaseStationRemoteControlledStationWirelessAlarmStationPrivateUseStation

BroadcastingBroadcastingTransmitterBroadcastingTransmitterStationBroadcastingRepeaterStation

AmateurAmateurStation(ClassA)AmateurStation(ClassB)AmateurRepeaterStation

FixedCoastStationAeronauticalFixedStationPressReceivingStationEarthStation(lessthan2.4meters)EarthStation(2.4metersormore)ExperimentalStationFixedStationLandStation(lessthan30MHz)LandStation(30MHzupto3GHz)LandStation(morethan3GHz)

Radiodetermination RadiodeterminationStationRadiolocationStationRadionavigationStationRadiodeterminationSatelliteStation

SpaceSpaceStationBroadcastingSatelliteStationAmateur-SatelliteStationFixed-SatelliteStation

1.

2.

3.

4.

5.

6.

Types of Apparatus Assignments (Services)

Apparatusassignmentisissuedafterconsiderationofthefollowingkeygeneralprinciples:

• Itsimpactonfrequencyinterference • Threattopublicsafetyduetoincorrectuseoftheapparatus • Levelofcongestionwithinthespectrumrangestipulated • Compliancewithtechnicalstandards • ConsistencewithSpectrumPlan • Innovationandintroductionofnewnetworkservice


��

3. Spectrum Coordination

CoordinationofSatelliteNetworksSatellitecoordinationisaprocesswheretheuseofanyfrequenciesatspecificorbitalslotiscoordinatedwithadjacentsatellitenetworks.ItinvolvessettingouttherightsandobligationsoftheAdministrationsinthedomainoforbitorspectrummanagement,thusprovidingameanstoachieveinterference-freeradiocommunications.ThecoordinationprocedurescomplywithArticle9,RadioRegulationofITU.As the MEASAT satellite networks continue to expand its coverage and service, adequatespectrumandsafeguardsfortheircurrentandfutureoperationsisapriority.Tofacilitatethis,priority in completing bilateral satellite intersystem coordination were based on MEASAT’simmediatelaunchprogramsaswellasitslongtermplans.

LaunchofMEASAT-3SatelliteMEASATSatelliteSystemSdnBhd(MSS)isacommunicationssatelliteoperatorwhichpioneeredthedevelopmentofhigh-poweredKu-bandDirect-to-HomeservicesinSouthEastAsiawiththelaunchofMEASAT-1andMEASAT-2in1996-providingKu-bandconnectivity.

MSS acquired a high-power commercial communications satellite from Boeing SatelliteSystemsin2003.ThenewBoeing601HPsatellitedesignatedMEASAT-3,willjointheexistingoperationalMEASAT-1andMEASAT-2inthefleetoftheMalaysia-EastAsiaSatellite(MEASAT)system.

MEASAT-3satellitewithapayloadof24C-bandand24Ku-bandtransponders,eachproviding36MHzofbandwidthovera15-yearminimumservice life,was launchedon12December2006.MEASAT-3’sC-bandpayloadwillcoverAfrica,MiddleEast,AsiaandAustralia.TheKu-bandpayloaddesignedtoprovidehigh-poweredflexibleserviceoptionsforthedevelopmentofdataservicesandDirect-to-HomeapplicationsinMalaysia,Indonesia,IndiaandChina.

Source:MCMC

Fig.4.44ExamplesofClassAssignment

Examples of Class Assignment

• Walkie-Talkie(FamilyRadioSystem)

• WirelessLANandBluetooth

• Cellularmobileaccessdevice

• Shortrangecommunicationdevice

• Leasedchannelradioaccessdevice

• Trunkedradioaccessdevice

• Personalradioservicedevice

• Cordlesstelephonedevice

• Two-wayradiopageraccessdevice

• Fixedwirelessaccessdevice

• Radiotelemetryaccessdevice

• Verysmallapertureterminal

• Infrareddevice

• Remotecontrolleddevice

• Securitydevice

• Wirelessmicrophonedevice

• Freespaceopticsdevice

• Industrial,scientificandmedicaldevice


��

MEASAT-3 isbeco-locatedwithMEASAT-1at91.5degreesEast longitudeandwillprovideincreased capacity and back-up for MSS to meet increasing market demand for satelliteservicesintheregion.ThereisalsoanupgradedgroundfacilityonPulauLangkawi,Malaysiaincludingtrainingandlaunchsupportservices.

RazakSAT(MLA-NEQO)SatelliteNetworksRazakSAT satellite network is a non-geostationary satellite near Equatorial Low Earth Orbit(NeqO);plannedtoprovideEarthExplorationSatelliteService(EESS).Itisaremotesensingmini-satellitesystemprovidingmediumhigh-resolutionimagesandwillbeoperatinginSandXfrequencybands.

RazakSATwillorbittheEarthatanaltitudeof685kmwithinclinationangleofseventoninedegrees.Ithascapabilityfor13to15passesperdaytocaptureimagesthataresenttotheassociatedearthstation,PusatMisiAngkasasituatedinSungaiLang,Banting,Selangor.TheapplicationsplannedforRazakSATare:

a. Panchromatic • urbandevelopment,urbanorruralboundarystudiesinfrastructuremapping; • insuranceassessment; • stereomappingforforestryuse,agricultureapplication; • monitoryshippingroutesandcoastalmonitoring,oilspilldetectionandmonitoring; • logisticsplanning,terrainanalysis;and • disasterresponse.

b. Multi-spectral • infrastructuremapping,real-estateplanning,landcoverandlanduse; • assessinghazardsanddamage; • geologymapping,structuralinterpretation,rangeandwaterresources; • coastalmonitoring,pollutionmonitoring,managementofmarineecosystem; • detectingminesandmissiles,monitoringrefugeemovements; • 3DDigitalElevationModeling,swimthrough(fornavy);and • publichealthprogramme.

Although the launch of RazakSAT was planned for earlier, unforeseen circumstances havepostponeditslaunchuntil2007.ThemissionlifetimeofRazakSATisthreeyears.

CoordinationofTerrestrialServiceTerrestrial radio communication services namely Fixed, Mobile, and Radiolocation services,needtobecoordinatedamongtheservicesinordertoensuretheservicesco-existinharmony,without interference. This is facilitated through sufficient frequency separation as well astransmissionparameterscontrol.

Theterrestrialservicecoordinationisparticularlycrucialfortheborderareasasradiowaveshavenointernationalbordersrecognition;requiringcoordinationinradiospectrumusagewithneighbouringcountries.Towardsthisend,MCMChasestablishedthreebordercommittees:


��

a. FrequencyAssignmentandCoordinationSingapore,MalaysiaandBrunei (FACSMAB). Itisabordercoordinationcommittee,withmemberscomprisingregulatorsandtheArm ForcesfromMalaysia,Brunei,andSingapore;

b. Joint Technical Committee on Coordination and Assignment of Frequencies along Malaysia-ThailandCommonBorder(JTC)

c. JointCommitteeonCommunicationsbetweenMalaysiaandIndonesianregulatorsfrom MalaysiaandIndonesia(JCC).

Thecoordinationofterrestrialservicesattheborderareasfollowsrelevantnationalregulationsandinternationalconventionsandregulations.Successofsuchcoordinationresultsinreducednumberofinterferencecasesreportedannually.

The communications industry actively participates in the terrestrial coordination meetings,whereindustryinputsarecrucialtoensureagreementsonuseofspectrumprotectstheinterestoftheMalaysianindustry.

In2006,cellularoperatorsofbothThailandandMalaysiaagreedtoadjusttheirsignalspillovertoaminimumtechnically feasibledistanceat theborderdue tosecurity issues inSouthernThailand.Thiswasinlinewithagreementsreachedatthe12thJTCmeeting.Inthespiritofcooperationbetweenthetwocountries,suchexercisewasdonedespitetheMalaysiancellularnetworkcoverageattheborderareasinKelantan,KedahandPerlisbeingnegativelyaffected.

Furtherin2006,thetelecommunicationsandbroadcastserviceprovidershavealsoparticipatedwithMCMCinexchanginginformationonradiofrequencyusageinJohor,SabahandSarawakwithIndonesia(Batam,Bintan,KarimunandKalimantan).

4. Monitoring And Interference ResolutionAmongstoneofMCMCrolesistoensureaspacefreefromspectruminterference.TheresolutionofinterferencecasesacrossthewholeofMalaysiaanditsresolutionisacrucialmediationroleoftheMCMC.In2006,therewere25interferencecaseslodgedwithMCMCofwhich21caseshavebeenresolvedandfourstillpending.Onecaselodgedin2005byMIMOSisstillpendingmakingatotaloffivependingcasesaltogether.

Source:MCMC

Fig.4.46No.ofCasesbyLocationSource:MCMC

Fig.4.45InterferenceCasesbyLocation2006

KualaLumpur

Selangor

Johor

Penang

Sarawak

Pahang

NegeriSembilan

Terengganu

Brunei

Total

8

7

3

2

2

1

1

1

1

26

Location No. of CasesInterference Cases by Location 2006 (Total 26 cases)

Selangor26%

KualaLumpur30%

Brunei4%

Terengganu4%

NegeriSembilan4%

Pahang4%

Sarawak8%

Penang8%

Johor12%


��

National Spectrum Control and Monitoring Centre ProjectTheMCMCis intheprocessofsettinguptheNationalSpectrumControlMonitoringCentre(NASMOC). NASMOC will equip the MCMC with the capability to perform monitoring andcontrolofspectrumthroughoutthecountryandaroundtheclock.

Thesystemcanmonitorspectrumfrom10KHzupto3GHz.TheNASMOCisenvisagedtooperateonlineandinrealtime,allowingforchanneloccupancy,DirectionFinding,fieldstrengthandbandwidthmeasurementstobecarriedoutatanationallevelwithgreateraccuracyandefficiency. Automated monitoring and measurement are available to capture intermittentinterferenceactivities.

NASMOC infrastructures are located at 29 separate locations throughout the country. TheMCMCheadquartersatCyberjayawillactas thesystemscontrolcenterwhileeachof thesix MCMC regional offices will house the Fixed Monitoring System (FMS) equipment. Theremaining22 locationsnationwidewillbeequippedwithRemoteMonitoringSystem (RMS).The22RMSaretobeplacedonrooftopsorstructureswhichhavemetrequiredcriterialikecoveragearea,clearfromobstructions,andlowradiofrequency(RF)disturbance.

Source:MCMC

Fig.4.47InterferenceCasesbyMonth2006

Interference Cases by Month 2006 (Total 26 cases)N

o. o

f C

ases

5

4.5

4

3.5

3

2.5

2

1.5

1

0.5

0

Janu

ary

1

4

5

1

5

2

5

Febru

ary

Mar

chApril

July

Augus

t

Septe

mber

Pending

3


��

The original project timeline was for NASMOC to be completed by 30 September 2006.However,thedifficultyofobtainingsitesheldbacktheproject,whichwillnowbecompletedin2007.Currently,twolocationsatSepangandPandanKualaLumpurareinoperation.Thecompletionprojectisenvisagedtofacilitatetheresolutionofcasesthatarependingasthenthereisthesystemscapabilityofrecording24-hourmonitoring.

Source:MCMC

Fig.4.48GeneralAreasofRMSReplacement-PeninsularMalaysia

KangarIpohAlor SetarPulau Pinang

Kuala LumpurSepangShah AlamPort Klang

KuantanKubang KerianKuala Terengganu

Johor BahruBatu PahatMelaka

PERLIS

KEDAH

P. PINANG

PERAKKELANTAN

TERENGGANU

PAHANG

JOHOR

SELANGOR

N. SEMBILAN

MELAKA

Coverage: 45 km radius

General Areas of RMS Placement - Peninsular Malaysia


��

General Areas of RMS Placement - Sabah & Sarawak

Source:MCMC

Fig.4.49GeneralAreasofRMSReplacement-Sabah&Sarawak

Other Activities Of Spectrum Interference ManagementTheroleofMCMCinspectruminterferencemanagementalsoextendstointernationaleventsheldinMalaysia.Foreachevent,MCMCisrequiredtoensurethatthefrequencyusedbytheeventparticipantsisfreefromanyinterferencefromtransmittingequipmentaroundtheareasconcerned.

*SepangInternationalCircuitSource:MCMC

Fig.4.50EventsRequiringMCMCSpectrumInterferenceManagementin2006

F1WorldChampionship(Round2)

JapanGT

MOTOGP

Events Requiring MCMC Spectrum Interference Management in 2006

Event Location Date

SIC*

SIC*

SIC*

17to19March2006

17to19March2006

8to10September2006

Coverage: 45 km radius

Kota KinabaluTawauLabuanSandakan

KuchingSamarahanSibuMiri

SABAH

SARAWAK

BINTULU

LABUAN

KUCHING

SIBU

KOTA KINABALU

TAWAU

SANDAKAN

SAMARAHAN

MIRI


�0

Number Management

Numbersandelectronicaddressingareconsideredasnationalresourcesofgreatimportance.The design, adoption and management of numbers and electronic addresses can advancenationalinterestsandthereforeaplantoeffectthisiscrucial.

Numbermanagementinvolvestwoaspectsofactivities,whichare:

• Planning • Assignment

Planning - Numbering and Electronic Addressing Plan (NEAP)

InearlyNovember2006,theMinisterapprovedanewplancalled‘NumberingandElectronicAddressingPlan’orNEAP.TheNEAPwasdevelopedbytheMCMCwiththeinputfromindustrytoprovideaconsistentandpredictableframeworkwithinwhichnumbersaredesignated,tobeassignedandusedfornetworkaddressingandforotherpurposes.TheNEAPwasissuedon27November2006.

a.TheWayForwardforMobileNumberExpansionWith the intention toensurea reasonablecapacityofmobilenumbers iskept in reserve forpotential new services, markets and technological development, the MCMC decided thefollowing:

i. Mobilenumbersforcellularserviceproviderswillcontinuethecurrentmobilenumbering scheme. The current numbering scheme is three digits prefix and seven digits subscribernumbersalsoknownas3+7numberstructure.

ii. Thenew3Gplayersshouldadoptthe3+7numberingstructure.

iii. Theindustrywillexpandadditional‘onedigit’numbertosubscribernumberswithinthe next three to four years. The new format will be three digits prefix and eight digits subscriber numbers or 3+8 numbering scheme. The MCMC will carry out study with theConsultativeGrouponNumbering (CGON) toexplore themigrationof3+7to3+8 mobilenumberingstructures.

b.RecoveryofPrefix‘010’and‘018’Therecoveryofprefix010and018isafollow-uptotheNEAP,thusensuringtheefficientuseofmobilenumbers.Oneofthekeyactionsgoingforwardvis-à-vistheNEAPistoreviewandwherepossible,cancelsuchprefixesthatareunder-utilised.Theneedtorecovertheseprefixesiscriticalastherearetwonewplayersinthe3Gmarket.Henceforthesereasons,theMCMChascancelledtheassignmentof‘010’fromCelcom(Malaysia)Berhadand‘018’fromMobikomSdnBhd.


�1

c.NewNumberingPrefixesTofacilitatenewmarketsandtechnologicaldevelopment,theMCMChasopenednewnumberingprefixesforDigitalPublicMobileRadio(DPMR)servicesandMobileVirtualNetworkOperator(MVNO)servicesusing4+7numberingscheme.

Source:MCMC

Fig.4.51Prefix014

014

014

014

Prefix Subscriber Number Service Providers

2XXXXXX

30XXXXX

31XXXXX

32XXXXX

35XXXXX

6XXXXXX

8XXXXXX

MaxisMobileServiceS/B(MMSB)

DiGi

Celcom

0156

0159

Prefix Subscriber Number Services

0000000to9999999

0000000to9999999

DigitalPublicMobileRadioServices

MobileVirtualNetworkOperator

Source:MCMC

Fig.4.52NewNumberingPrefixes

Assignment

a.Prefixesfor3GPlayersTheMCMCdecidedthatthenew3Gplayers,thatis,TTdotComandMiTVwillusethesamenumberingformatastheexistingcellularserviceproviders.Currently,onlytheprefixes‘010’and‘018’arefreefornewassignmentaftertheMCMCsuccessfullyrecoverthoseprefixes.Toensureefficientuseofnumbers,theMCMCwillnotreleasethewholeblockof‘010’and‘018’tothenew3Gplayers. TTdotComandMiTVwillbeassignedanumberingrangefromtheprefix‘010’and‘018’respectively.

b.Prefix‘014’TheMCMCreleaseofprefix‘014-XXXXXXX’in2005isoneoftheinitiativestocatertoshortageofnumbersexperiencedbycellularserviceoperators.Theprefixwaslaunchedin2006bytherespectivecellularserviceproviders.Thetablechartsthelatestallocationoftheprefix‘014’asofNovember2006.


�2

e.NumberingforIPBasedTechnologyThe MCMC has studied the technologies related to application of numbering in IP basedapplications such as Next Generation Network (NGN), IP Multimedia Subsystem (IMS),ElectronicNumbering (ENUM)danFixedMobileConvergence (FMC)whicharealsoagendaitemsforfurtherworkintheNEAP.

ENFORCEMENT

Intheareaofenforcement,theMCMChashadanotherbusyyearin2006.Therewereatotalof129reportslodgedattheMCMCforwhichtherewasrequirementtoconductinvestigationsandundertakenecessaryactionagainstthecompanies,individualsandalsolicenseesforcommittingvarious offences. The MCMC has investigated 127 cases under the Communications andMultimediaAct,1998(CMA)andtwocasesunderthePostalServicesAct,1991(PSA).TherewasnoreportforcontraventionoftheDigitalSignatureAct,1997(DSA).

There was a significant rise in cases involving abuse of short messaging services (SMS) in2006.Atotalof42caseswerereportedascomparedtosevencasesin2005.ThesendersoftheSMShadsentoffensive,obscene,false,menacingorindecentmessageswithintenttoabuse,threaten,annoyorharasstherecipients.InvestigationsofthistypeofcasesusuallyfacedifficultyinrespectoffailingtotraceoridentifythesendersoftheSMSbecauseoftheirusingunregisteredprepaidmobilecellularphones.

In order to address this problem and similar investigation cases, the government issued adirectiverequiringtheregistrationofallprepaidmobilephonesubscribers.Failuretoregistermeantthattheserviceswouldbeterminatedon31December2006.ThispositivesteptakenbytheGovernmentwillassistauthoritiestotraceculpritsresponsibleforSMSabusesandalsotocurbthiskindofoffencefromoccurring.

d.NumberingAssignmentsAtendOctober2006,thefollowingcategoriesofnumberingwereassignedinordertofacilitatedemandintheindustry:

1.

2.

3.

4.

5.

6.

7.

No Numbering Type Numbering Amount

PSTN

CellularMobile

MobileService-TSoIP

CommonInter-carrierShortCodes

IndependentShortCodes

SpecialServices–PersonalNumbering(1700)

NationalSignallingPointCode

524,000

300,000

50,000

42

3

10,000

5

Source:MCMC

Fig.4.53NumberingType


��

Sendingoffensive,obscene,indecent,menacingorfalseshortmessagingservices(SMS)

Sendingoffensive,obscene,indecent,menacingorfalsecommentsorcommunicationsbyelectronicmail(e-mail)

Breachoflicenceconditionbylicensees

UnlicensedNFP/NSP/ASP

Unlawfuluse,possessionorsupplyofnon-standardequipment

Uses,sellsorsuppliescounterfeitaccessdevices

Transmitsanypartofthespectrumwithoutapparatusassignment

Failuretodealreasonablywithconsumersandadequatelyaddressconsumercomplaintsbythenetworkorapplicationsserviceproviders

Providingcourierservicewithoutlicence

Offence Law (CMA)

Section233

Section233

Section242

Section126

Section239

Section236

Section157

Section188

Section25

42

12

31

17

10

5

7

3

2

129

1

2

3

4

5

6

7

8

9

Cases MCMC Investigated in 2006

No. of Cases

Law (PSA)

TotalSource:MCMC

Fig.4.54CasesMCMCInvestigatedIn2006

Action Taken On Cases Investigated

1. Charged In Courts

In2006,theMCMChastakenactionsagainstsevencompaniesandindividualsforcommittingvariousoffencesundertheCMAbychargingthemincourt. Sixoffenderswerechargedforsupplyorpossessionofthenonstandardequipmentsundersection239oftheCMA,andoneoffenderforprovidingapplicationsservicewithoutlicenceundersection126oftheCMA.

Oneoffenderwhowaschargedundersection239oftheCMApleadedguiltyandwassentencedwithafineofRM15,000byShahAlamSessionCourt.Therestoftheoffendershaveclaimedtrialandthecasesarependingtrial.

2. Compounding of Cases

For those offenders who were not charged in court, MCMC has imposed compounds forcommittingvariousoffences.FortytwooffenderswereofferedthecompoundwiththesumofRM2,808,400.

SevenoffendershadalreadypaidthesumofRM2,052,400andanother35offendershavefiledappealsforthereductionofcompoundofRM756,000whichwereoriginallyofferedtothem.

Investigations

��

Initiating Transformations for Future Generations

INTRODUCTION

SincetheintroductionoftheCMAin1998,therehavebeenanumberofsubsequentmilestonechanges in the industrysuchas themigrationof licences fromtheold to thenew licensingregimeunder theCMA; thesubsidiary legislationsof theCMA; theoperatorsdealingwitha“new”regulatorandmanymore.

TowardsthetenthyearoftheCMAinexistencein2008–twoyearsfromnow,thetransformationsareexpectedtobeevenmoreprofound,withtheadventofamorepervasivedigitalenvironment;morepossibilities throughmobiledevicesandhandsets;morebandwidth;more reasonablepricingforpeopletohaveahandycommunicationchoicesanddevicestosuittheirneeds;andmoreinvolvedanddiscerningconsumersaswell.

Inviewof suchdevelopmentsandgreaterpossibilities tocome, there isaneed toprepareandplanahead.Thegovernmenthasbeenlookingaheadandthankstotheforgingofbetterrelationships,theindustryhasbeenandstillisaclosepartnerinmanyaspectsofplanninganddevelopmentinthecommunicationsandmultimediaindustry.Thispartnershipisexpectedtostrengthenovertheyears.

TheblueprintoverviewisexemplifiedintheMyICMS886StrategicPlanthatstrivesamongstotherobjectivestoprovidetargetsfordevelopmentandalignmentofnationalaspirationsamongallstakeholders;andco-ordinatesectorcommunicationsandmultimediaobjectives.Alongsidethistheblueprintalsoenvisionsthegreaterinvolvementofthepublicandusersalikeonnotonlyconsumerandproductawarenessbutalsothedevelopmentoftheindustrythatinvolveseachindividualasalivingecosysteminanetworkofwiredandwirelesscommunicationsandlifestyleaccessoriesatworkandplay.

MyICMS 886

TheMinisterofEnergy,WaterandCommunicationsYBhgDato’SriDr.LimKengYaikon19December 2005 launched MyICMS 886, which is a strategy outlined for the developmentof information, communications and multimedia services (ICMS) in Malaysia (2006–2010).MyICMS886 identifieseight key serviceareas, eight typesof infrastructure andsixgrowthareasasfocuspointsfordevelopment.

MyICMS886aimstocreateacatalysingeffectenhancinginvestmentinexistingservicesandinfrastructure togenerategrowthareas. Itwasdeveloped inconsultationwith the industryviathe“TechnologyRoadmapExercise” in2005,andbyacarefulstudyofsimilar initiativesundertakeninotheradvancedcountries,namely,JapanandSouthKorea.

Cha

pter 5

InitiatingTransformationsforFutureGenerations

��

Ninth Malaysia Plan: Focus for ICT Development

• EnhancingMalaysia’spositionasglobalICTandMultimediahub

• Expandingthecommunicationsnetworktoensuremoreequitableaccessto informationandservices

• Intensifyingeffortsatbridgingthedigitaldivide

• DevelopingtheexistingcybercitiesaswellaspromotingnewcybercitiesandMSC multimediaapplications

• FosteringnewsourcesofgrowthintheICTsectorincludingbioinformatics,a convergenceofbiotechnologyandICT:

a. DevelopingskilledICTworkforce

b. AcceleratingICTacculturation

c. EnhancinginformationsecuritySource:NinthMalaysiaPlan

Fig.5.1NinthMalaysiaPlan:FocusforICTDevelopment

MyICMS 886 Core Elements

Services

1.HighSpeedBroadband2.3G&Beyond3.MobileTV4.DigitalMultimedia Broadcasting5.DigitalHome6.ShortRange Communications (e.g.RFID-based)7.VoIP/InternetTelephony8.USP-UniversalService Provision

Infrastructure

Hard1.MultiserviceConvergence Network2.3GCellularNetworks3.SatelliteNetwork

Soft4.NextGenerationInternet Protocol(IPv6)5.HomeInternetAdoption6.Information&Network Security

7.CompetenceDevelopment8.ProductDesign& Manufacturing

*Growth Areas

1.ContentDevelopment (e.g.education entertainment,games)2.ICTEducationHub3.DigitalMultimedia Receivers(settopbox)4.CommunicationDevices (e.g.VoIPphones)5.EmbeddedComponents Devices(e.g.RFID)6.ForeignVentures

Source:MyICMS886

Fig.5.0MyICMS886CoreElements

*Areasundergovernmentagenciesandindustrysector


��

TheMyICMS886blueprintreflectsournationalaspirationsinthedevelopmentandproliferationof major services and infrastructure that would propel Malaysia forward in the delivery ofadvance information, communications and multimedia services. It will enhance our globalcompetitiveness and generate new growth areas in related industries. The attainment ofMyICMS886goalswillspurourprogresstowardsknowledgeork-EconomystatusandleadtoimprovementsinthequalityoflifeforMalaysians.

MyICMS 886 - Value Chain

MyICMS 886 Directorate

TheMCMCestablishedadedicated“MyICMS886Directorate”withintheorganisationinMay2006. Its main function is to coordinate the efforts of various stakeholders in meeting theMyICMS886goals.Sinceitsformation,theDirectorateisactivelyinvolvedineducatingthepubliconMyICMS886aswellasestablishingon-goingdialogueswiththeindustryandotherstakeholderstoensurealignmentbetweentheireffortsandtheMyICMS886targets.

1. MyICMS 886 Implementation CommitteeConcentrated efforts undertaken to ensure that the MyICMS 886 strategy is implementedsmoothly and to bring the strategy to fruition, MEWC and MCMC have set up a high-levelMyICMS886ImplementationCommitteeon6July2006.TheCommitteecomprisesvariousstakeholdersfromthegovernmentandindustry,withitsobjectivestocoordinate,developand

Source:MyICMS886

Fig.5.2MyICMS886-ValueChain

Satellite Networks

3G Networks

Competence Development

Multiservice Convergence

Network

IPv6 InternetProduct

Design & Manufacturing

INFRASTRUCTURE

SERVICESGROWTH

AREAS

Digital MM Broadcasting

Mobile TV

VoIP

USP

High Speed Broadband

ShortRange

Communication

3G & Beyond

Embedded Component & Devices

Content Development

Foreign Ventures

ICT Education

Hub

Digital MM Receivers

Communication Devices


��

streamlinepoliciesandstrategiesatthenationallevel,towardstherealisationoftheMyICMS886targetsspecifically,andthenationalICTagenda,generally.

2. More InitiativesOtherinitiativesinrealisingtargetsofMyICMS886includethedevelopmentoftheIPv6NationalRoadmapandtheMultiserviceConvergenceNetworkPlan.

3. Database BuildingToensurethattheMyICMS886goalsarebeingmet,theMCMCthroughtheinitiativesofitsMyICMSDirectoratealsoactivelycompilesdataandinformationfromitsstakeholderstobuildupitsstatisticaldatabase.

Areas

High Speed Broadband

3G & Beyond

Mobile TV

Digital Multimedia Broadcasting

Digital Homes

Short Range Communications

VoIP/Internet Telephony

USP-Universal Service Provision

1.3millionsubcribers25%householdpenetration.

300,000subcribers.

Furtherpilotservice.Adoptionofstandards.

StandardsadoptedDTTBtrials.Initialcommercialdeployment.

HomeGateway/SOHOintroducedin60,000homes.

Standards/spectrumallocated.Awareness&promotiononusageinlogostics,transportation.

EstablishedQoS;VoIPtoPSTNaccess.ResidentialbusinessservicerevenueconstituteRM800million.

NewUSPprojects.BroadbandInternetcommunityproject.

2.8millionsubcribers25%householdpenetration.

1.5millionsubcribers.

75%mobileusersadoptmobileTV.

60%householdcoverageforDTTB.

500,000homesinterworkwithexternalnetworks.

Extensiveusageinsupplychainmanagement.LocalmanufacturingofRFIDchipset.

Residential&businessservicesrevenueconstituteRM1billion.

IncreasedbroadbandInternetindividualaccess.

Totalbroadbandpenetration75%ofhousehold.

Aleastfivemillionsubcribers.

Multimediaserviceanywhere,anytime,90%oftotalmobileusers.

95%householdcoverage.

Onemillionconnectedhomes.

Widespreadusageinvariousapplications.2%globalmarketshareofchipsetservices.

Highquality&cheapervoiceservices,RM1.5billionservicesrevenue.

60%coverageforunderservedruralhouseholds.

2006 2008 2010

Source:MyICMS886

Fig.5.3MyICMS886-Statusin2006


��

MyICMS 886 Implementation Coordination Committee

InJuly2006,theMinisterofEnergy,WaterandCommunicationsofficiatedtheinauguralMyICMS886ImplementationCoordinationCommittee.TheinauguralmeetingresultedintheformationoffourWorkingCommitteesandSub-WorkingCommitteesthatstartedworkingonactionplansasfollows:

MyICMS 886 Seminar with the theme Broadband for all MalaysiansTheoutcomeoftheseminarwastheformulationoftheframeworkforbroadbanddeploymentinMalaysiawhichidentifythebroadactionplanstoaddressbroadbanddeploymentaswellasincreasebroadbandpenetrationinthecountry.

MyICMS 886 Action PlansTheseplansarebeingfinalizedandwillbetabledtotheMEWC.InputfortheactionplanswasgatheredfrommeetingsanddiscussionswithMEWC,MyICMSRetreat,MyICMSBroadbandWorkshopandtheWorkingCommittees.NIPI (National Internet Peering Initiative) The Directorate was involved in setting up the National Internet Peering Initiative (NIPI). ATechnicalCommitteewasalsoformedtoformulatethebusinessmodel forNational InternetExchangeorNIX.

Home Internet AdoptionTheOneHomeOneInternetAccesscampaigncomesunderthebannerof“InfoSavvyYou”.

Source:MyICMS886

Fig.5.4MyICMS886Targets

2006 2008 2010

InformationandnetworksecurityportalInstallationofnetworksecuritymeasures

Compliancetointernationalsecuritystandards

InitiateprogramsforcompetencedevelopmentUpgradingandenhancingcompetencies

DevelopR&Dcapabilities

CapacitybuildingOriginalEquipmentManufacturing

High-techcommunicationindustries

Migrationofplatform-basedservices

Completemigrationoflegacyservices;Fixed-

mobileconvergencePlatformready

Multipleservices,FullyIP-based

Nationwide3Gservicescoverage

Criticalservicesreachableusing

satellite

IPv6fulldeviceandnetworkcompliance

90%householdwithInternet

access

IntroductionofHighSpeedData

Nationalpolicyonsatellite-basedcommunications

PilotofIPv6services;AllISPareIPv6

enabled

“OneHome,OneInternetAccess”

campaign

Highspeedmobiledataservices;

InterworkingofBWAwith3GPP

Satelliteasacomplementing

transmissionmedium

GovernmentagenciesadoptIPv6

70%householdwithInternetaccess

Multiservice Convergence Network

(MSCN)

3G Cellular Networks

Satellite Networks

Next Generation Internet Protocol (IPv6)

Home Internet Adoption

Information & Network Security

Competence Development

Product Design & Manufacturing


��

Digital HomeSeveralmeetingsanddiscussionswereheldwiththeDigitalHomestakeholderstoformulatethestrategyforDigitalHomedeployment.TheproposalforModelDigitalHomeisbeingfinalised.

Collaborative MeetingCoordinationmeetingswithotheragenciesandotherstakeholderscontinuedtoalignwiththerespectiveagenciesMasterPlan.Theagenciesamongstothersare:

i. KPKT(UniformBuildingBy-Laws), ii. MOSTI(StrategicICTroadmap), iii. MDeC(WirelessBroadbandCity), iv. EPU(StatesBroadbandPlan), v. MOF(BudgetandincentivesforICMS),MIDA(ProductManufacturingandBroadband intheIndustrialestates), vi. UMTS(IndustrialDevelopmentPlanrelatedto3G) vii. NITFPS/NationalImplementationDirectorate(Broadbandstatusinthecountry)

Technology/Technical PresentationsIntheyear,therewerealsoanumberofmeetingsandpresentationsbytechnologyprovidersrelevanttoMyICMS886areas.

Going Forward in 2007

While there are several activities aimed at promoting awareness of MyICMS 886, furtherparticipationamongstthepublicregardingMyICMS886isrequired.Therefore,for2007,theMCMCfocusistodisseminatemoreinformationontheadvantagesofcommunicationsandmultimediaservices,ingeneralandMyICMS886,inspecific,tostudents.

Anawarenesscampaignwouldlaythegroundworkfortheacceptanceofthegrowingimportancethecommunicationsandmultimediaserviceswouldplayinourlives.Itwillalsohelptoensurethattheinfrastructureputinplacewouldbeeffectivelyutilized.Moreawarenessofthebenefitsoftheindustrywillspur,forexample,students’interestindevelopingtheirskillsandknowledgeinthisarea.

Inplanningtheprogrammefor2007,therearetobethreemaincomponents:

1. Generating Awareness Among University StudentsThishasthepurposetocreateawarenessamongststudents,especiallyfinalyearstudents,oftheindustrydevelopmentplansforthecommunicationsandmultimediaindustryinMalaysia.Suchknowledgeisexpectedtoassisttheircareerpathandcreatenetworkingopportunitiesforthestudentswithindustrymembers.

2. MCMC SeminarsThisisexpectedtobecarriedoutthroughhalfdayseminarsheldinMCMC’sofficeorinthepremisesofmajorlicensees.SeminartopicswouldbethoserelatedtotheMyICMS886areas.Industry members, especially relevant Working Committee members, are also expected toattendandinteractwiththestudents.


100

3. Interactive Involvement of Primary and Secondary School StudentsIt is importantthattheawarenessprocess isstartedearly inachild’seducation. Thus, it isproposedthatstudentsareco-optedtolearnmoreaboutthecommunicationsandmultimediaindustry,forexample,viaactivitykitsorworksheets.Thisisalongerterminvolvementwherenewkitsaredevelopedandinterestintheprogrammeissustainedfurtherthroughcontestsandoutsideactivities.

MOBILE NUMBER PORTABILITY (MNP)

MNPisenvisagedtofurtherenhancecompetitionandtoexpandchoicetoconsumers,Tothisend,MCMCcommissionedaconsultancyservicetostudythereadinessofnetworkprovidersand the Malaysian market for MNP implementation. It was completed in January 2006.Subsequenttoastudymadeonitsimplementation,anMNPIndustryWorkingGroup(MNP-IWG)wasformedinJune2006.TheparticipantswereconfinedtotheTier1telecommunicationsserviceprovidersastheirnetworkwouldtakethemostimpactbytheimpendingarrivalofMNPservices.

WiththeMNP-IWGdiscussionsnowfocusedonspecificissuessuchastechnical,marketandeconomicaswellasend-usersawarenessandprotection;threesub-committeeswereformedtostudyspecificissuesineachareaasfollows:

a. MNP-IWGTechnicalSub-committee(TSC)to look intothetechnicalaspectsofMNP Clearinghouseoperations.

b. MNP-IWG Commercial Sub-committee (CSC) to study the financial and competition aspectsoftheMNPClearinghouseoperations. c. MNP-IWG Communications and Public Relations (CPRSC) Sub-committee to providefeedbackonconsumerprotectionrelatedissues.

NUMBERING REGULATION

SimultaneouswiththedrawingupoftheNumberingandElectronicAddressingPlan(NEAP),theaccompanyingNumberingRegulationwerealsodrafted.TheNumberingRegulationhasbeendrawnupinconjunctionwiththeNEAPinordertoensureregulationsareinlinewiththeNEAP.Todate,finalisingofthisworkisinprogresswithMEWC.AmongthesignificantdevelopmentsuponapprovalofthisdocumentisthatMCMCwillimposeachargetonumbersassignedtothelicensees.TheobjectivesofimplementingtheNumberingRegulationistoensureefficientuseofthecountry’snumberingresourcesbythelicenseesandtoimposelegalconditionsontheassignmentofnumbering.

DEVELOPMENTS ON CONTENT

Asthedeliveryofcommunicationsandmultimediaservicesincreasestowardsubiquity,thereis an expected increase in demand with technological push for digital content. Further toaccessibilityonawiderscale,thereisalsoavailabilityofcommunicationsserviceswithgreaterspeeds or bandwidth. Along with the multiplicity of access, there is also the concept of


101

multiplicityofchannelsrequiringmorevariedcontent,notonlyindigitalformatbutalsoinhighdefinition.

Acceleratingnetworkconvergenceandwidespreaddiffusionofhigh-speedbroadbandhaveshiftedbusinessattentiontowardsbroadbandcontentandapplicationsfortheaccompanyingbenefits. Networked content will increasingly become the basic virtual infrastructureunderpinning theknowledgeeconomyandwhichcaneventuallybeat thecentreofhealth,educational,andculturalactivities.Convergenceofnetworksandincreasingtake-upofhigh-speedbroadbandrequiresfocusedpolicyattentiononrapidlydevelopingnetworkcontentandapplicationstotakeadvantageofthenewdemandpullforthedigitaleconomy,promisingnewbusinessopportunities,includingacceleratedgrowthandemployment.

Advancementsinandnewcommunicationsandmultimediatechnology,anddigitisationmeansthat content canbedistributedacrossmanydifferentplatforms, acrossall borders,quicklyandseamlessly.Thiseasyaccessmayhavetheeffectofturningusintomere‘consumers’,absorbingforeignideasandvaluesthatinturnmayunderminenationalidentityandeconomicwellbeing.

Rather than take this as a shortcoming, technological advancements should be viewed as‘enablers’toempowerusersinmakingchoicesthatimproveourqualityoflife.SuchdevelopmentsprovidethemeansforMalaysianstosharetheirideas,knowledgeandexperienceswithintherelevant localcontext. However, localisedcontent isnoteasilygeneratedanddisseminatedwithoutputtinginplacethevisionandmotivation,creative,technical,financialandexpertskillstotranslateideasintoworkableeconomicengines.Strongincentiveswouldhavetobeputinplaceforalltheingredientstowork.

Role of MCMC In Networked Content Development

In2005,theMinisterofEnergy,WaterandCommunicationslaunchedtheMyICMS886strategy-ablueprintforinformation,communicationsandmultimediaindustrygrowth,whichidentifiedamongstothers,thedevelopmentofcontentasoneofthegrowthareasinafive-yeartimeframe.ThisisinlinewiththeNationalPolicyObjectivesoutlinedintheCMAthatincludes: a. establishing Malaysia as a major global centre and hub for communications and multimediainformationandcontentservices; b. promoting the development of capabilities and skills within Malaysia’s convergence industries;and c. to grow and nurture local information resources and cultural representation that facilitatethenationalidentityandglobaldiversity.

Furthermore, content is identified as a new engine of growth in the Ninth Malaysia Planreleasedin2006.Thus,intherecentrestructuringprocesswithinMCMC,adedicatedContentDevelopmentDepartmentwascreatedtocatalysecontentdevelopmentasafirststep,workingtowardsrealisingtheNationalPolicyObjectivesandtheMyICMS886growthstrategy.

MCMCthroughtheMyICMSDirectoratehasestablishedaWorkingCommitteetolookintotheContentandApplicationsmatters.TheworkingcommitteeistheJawatankuasaPelaksanaanMyICMS886-WC2–ContentandApplications.


102

WC 2 – Content and Applications Members consist of relevant Government Ministries and Agencies including industry

KementerianTenaga,AirdanKomunikasi

KementerianKesihatan

KementerianSains,TeknologidanInovasi

KementerianPenerangan

KementerianKebudayaan,KeseniandanWarisan

UnitPemodenanTadbirandanPerancanganPengurusanMalaysia(MAMPU,JPM)

Selectedindustryplayers

Source:MCMC

Fig.5.5WC2-ContentandApplicationsMembers

The focus areas in content development that MCMC will work on are mainly in policyrecommendations and review, capacity building and incentives towards creating demandespeciallyforlocalcontent.

NETWORK SECURITY

NetworksecuritythreatscomeinmanyvariedformsandforMCMCin2006,thehighlightsareintheformof,forexample,prepaidregistrationexerciseinMalaysia.

Digital Signature

DigitalSignaturewasfirstintroducedtoaddresstheimportanceofsecurityfeaturesforonlinebusinesstransactions.Usingdigitalsignatures isawaytoprovidethesafeguardinrespectof identity, legalcommitment, thirdparty interferenceandmanipulationof information. Withtheadventofe-Governmentapplications,theusageofDigitalSignaturegoesbeyondonlinecommercialtransaction.DigitalSignaturesarenowwidelyusedintransactionsbetweenthecitizensandgovernmentsuchasfilingtax-returnsandelectronicvoting.

The Legal FrameworkThe Digital Signature Act, 1997 (DSA) and Digital Signature Regulations, 1998 (DSR) wasintroducedaspartoftheMalaysianCyberLaws.TheDSAanditsaccompanyingregulationsprovide a framework for the licensing and regulation of Certification Authorities and therecognitionofdigitalsignatures.

The MCMC tookover the role of Controller of Certification Authorities from the then PostalServicesDepartmenton1November2001.Thus,MCMCisempoweredtoexercise,dischargeandperformtheduties,powersandfunctionsundertheDSA.TheDSAandDSRprovidethefollowingtypeoflicencesandrecognitions:-

• CertificationAuthorityLicence • RecognitionofForeignCertificationAuthority • CertificateofRecognitionforRepositories • CertificateofRecognitionforDate/TimeStampingServiceinMalaysia • RegistrationofQualifiedAuditors


10�

Licensees

DigicertSdnBhd

MSCTrustgate.comSdnBhd

BankNegaraMalaysia

Source:MCMC

Fig.5.6LicenseesundertheDSA

LicenceIssuedDate

25December2005

26July2005

24July2004

Licensees under the Digital Signatures Act, 1997

DSAisanenablinglawthatallowsforthedevelopmentofamongstothers,e-Commercebyprovidinganavenueforsecureonlinetransactionsthroughtheuseofdigitalsignatures.

Public Key Infrastructure (PKI)The PKI is a system for supporting digital signatures and document encryption for anorganization.Itisessentialforaneffective,securee-Commerceandtofulfillgeneralsecurityandauthenticationrequirementsovernon-securenetworkssuchastheInternet.InMalaysia,variousapplicationssuchaspaymentstotheInlandRevenueBoard,e-Procurementandcorporatebankingservicesutilisethistechnology.PKIenablesusersofanunprotectedpublicnetworksuchastheInternettosecureandprivatelyexchangethedatathroughtheuseofapublicandaprivatecryptographickeypairthatisobtainedandsharedthroughatrustedauthority.ThePKIprovidesdigitalcertificatesthatcanbestored,revokedorremovedwhennecessary.ThePKIisanunderlyingtechnologythatprovidessecurityfortheSecureSocketsLayer (SSL) and Hypertext Transfer Protocol Secure Sockets (HTTPS) protocols, which areusedextensivelytoconductsecuree-BusinessovertheInternet.

ThePKIassumetheuseofpublickeycryptographywhich is themostcommonmethodontheInternetforauthenticationofamessagesenderorencryptionofamessage.Traditionalcryptography involves the creation and sharing of a private key for the encryption anddecryptionofmessages.Thisprivatekeysystem,however,hasasignificantflaw,thatis,ifthekeyisdiscoveredorinterceptedbysomeoneelse,messagescaneasilybedecrypted.Forthisreason,publickeycryptographyandthepublickeyinfrastructuresisthepreferredapproachontheInternet.

Thefiverequirementsfore-SecurityareasfollowsandtheyformmajorpartsofasuccessfulPKIimplementationframework:

1.Non-repudiation-Forabusinesstransactiontobevalid,neitherpartycanlaterdenytheexistenceorexecutionofthattransaction.PKIusesdigitalsignaturestobindtheidentityofapartytothetransactionssothatknowledgeofthetransactioncannotbelaterdenied.

2.Privacy-PKIoffersprivacythroughpublicandprivatekeyencryption.Thissystemenablesunrelatedpartiestoconductbusinesssecurelyacrossunprotectednetwork.

3. Integrity-PKIoffers integritythroughdigitalsignatures,whichcanbeusedtoprovethatdatahasnotbeentamperedwithintransit.Thisisimportantinitsownright,butthisisalsofornon-repudiation.

4.Accountability -PKIoffersaccountabilitybyverifyingthe identityofusersthroughdigitalsignaturesasthesearemoresecurethanusernameandpasswordscombinations.Usersaremorelikelytobeheldaccountablefortheiractions.


10�

5.Trust - Thewhole concept ofPKI isbasedon trust to theCertificateAgencies (CA). InMalaysia it ismandatory forallCAstobe licensedunder theDSA1997. Therefore,withalicensedCA,consumersinMalaysiaareprotectedunderthecurrentlegislation.

Current Challenges of DSAPreviously, it was the low take up rate for the usage of this technology. Recently, withgovernment initiatives in e-procurement and tax payments, this industry is slowly growing.CurrentcertifiedlicensedauthoritiesareDiGicert,MSCTrustgateandBankNegaraMalaysia(RestrictedLicence).

BothMSCTrusgateandDiGiCertareaggressivelyworkingonexpansionofbusiness in thissector. In the recent e-Filing tax exercise 2006, 30% of the market filed via e-Filing. It ispredictedthatin2007,thisfigurewillreachmorethat40%penetrationrate.

Nevertheless,promotionsandawarenessprogramsarevitaltothedevelopmentofPKIinthecountry.Assuch,MCMCiscurrentlyinthemidstofestablishingafewdevelopmentalplansincreatinggrowthandawarenessinthisarea.

Trends In Other Countries Useful for MalaysiaAsexperiencedinothercountries,digitalsignatureapplicationsneedagovernmentpushfactor.TheMalaysiangovernment’smaininitiativeintheusageofPKIwasbyincludingPKIinMyKADas one of the applications alongside MEPSCash, Touch `nGo,ATM, identity card,driver’slicence,healthandpassportinformation.PKIwasimplementedinMyKADin2002.AlthoughallMyKadarePKIready,theusageisnotcompulsory.TheMyKadmustbebroughtbytheusertoalicensedCAorRegistrationAuthoritytoactivatethePKIusage.

ComparedtootherAsiancountriessuchasTaiwan,Korea,JapanandSingaporethatareactiveintheusageofPKI,Malaysiaisstillattheprematurestage.TheMCMCandtheindustrywouldneedtoworktogetherwithallpartiesincreatingaplatformthatwouldbetheengineofgrowthforPKIinthefuture.

Prepaid Registration Exercise In Malaysia

TheMalaysianGovernment requireseveryprepaidmobile serviceuser in thecountry toberegistered.AllusersregardlessoftheirnationalityaretoregistersolongastheyaresubscribersofaMalaysianprepaidpubliccellularservice.ThisincludesMalaysiancitizens,foreignworkersaswellastourists.Registrationiscompulsoryforeachprepaidmobilenumberthatauserhaswiththerespectiveserviceprovider.

Pursuant to the Cabinet’s directive, MEWC and MCMC are to ensure that all the licenseesprovidingprepaidpubliccellularserviceshave theirsubscribers registeredby29December2006.


10�

Aim Of Prepaid RegistrationThedirectiveisaimedtocurbmisusesoftheprepaidpubliccellularservicesandsimultaneouslyaddresssecurityconcerns.Forexample,enforcementauthoritiesfacedifficultiesintracinguserswhosendthreateningorabusiveSMStovictimsincludingransomcallsmadeinkidnappingcasesthroughunregisterednumbers.Onceallusersareregistered,tracingofsuchactivitiesiseasierandspeedilydone.

Database Management for ConfidentialityUsers need not be apprehensive or worried that their personal information will be sharedindiscriminately.Allinformationprovidedduringtheregistrationprocessistreatedwithstrictconfidentiality. Service providers are under a legal obligation to ensure the protection ofusers’information.Theyarerequiredtoensurethatthedatacollectediskeptsecureandnottransferredtoanypartywithoutpriorapprovalfromtheusersunlesstheinformationisrequiredtobereleasedduetoanorderfromthepoliceorthecourt.

Outcome of the Prepaid Registration ExerciseAlltherelevantbodiesincludingtheMEWC,MCMCandtheCelcosworkedtogethertoensureallusersaredulyregisteredwithinthestipulatedtimeline.

Atotalof15.8millionprepaidmobileservicenumberswereregisteredon29December2006,frommorethan18millionnumbersbeforetheregistrationexercise.Thistranslatestoabout85%oftotalprepaidmobileservicenumbers.

Theremainingprepaidmobileservicenumbers,amountingto2.8millionor15%notregisteredwithinthestipulateddateof29December2006,havebeendeactivatedbytherespectivemobilecellularcompanies(Celcos).

Cooperation in Accelerating Prepaid RegistrationMEWC, MCMC and the Celcos co-operated as a team to ensure success of the prepaidregistrationexercise.TheawarenessandeducationofthepublicontheneedtoregisterwereconsistentlyspearheadedbybothMEWCandMCMC.

TheMCMCworkedtodevelopgoodworkingrelationshipswithboththeprintandelectronicmediatoconveythemessageacrosstothegeneralpublic.Theseincludedperiodicadvertisements,articles,pressreleases,televisionandradioappearancesandpublicserviceannouncements.

Prepaid registration innationwide roadshowscarriedoutcollaborativelyby theCelcosandMCMCwasaninitiativetospeedupregistration.MCMC,spearheadingthisinitiative,wenttothepublicdirectlyduringtheroadshowswhichwereheldatmostmajorshoppingcomplexesandpublicplaces.

Inanefforttomaketheprocessmoreconvenienttothepublic,registrationismadeavailableatpostoffices,petrolstations(Shell,BPandPetronas)andonlineatMaybank2U,CIMBandRHBInternetbankingportals.TheseareinadditiontoregistrationserviceatCelcosservicecentresorwiththeirauthorizeddealers.


10�

ConclusionTheprepaid registrationexercisewillensure that thedatabasemaintainedat the respectiveCelcospremisecontainaccurateuserinformationasaresultoftheregistrationprocess,whereverificationofinformationistreatedasacrucialelement.

CYBERCITIES

Brief HistoryTheconceptofcybercitiesintheMalaysiancontextasestablishedbytheMalaysianDevelopmentCorporation(MDeC)isindustryclusteringthroughlocatingsimilartechnologycompanieswithinthesamegeographicalareas.ThisaccordingtoMDeCisaprovenmechanismtofueleconomicgrowth,eitheronregionalornationallevel.Itistruethatclusteringdrivesinnovationandhelpstoacceleratethedevelopment,andtechnologicalcompetencieswithinthearea.

Phase1ThecybercitiesrolloutforMalaysiaisdividedintophases.ForPhase1intheperiodof1996to2003,fivecybercitiesweresuccessfullydeveloped.TheseareCyberjaya,UniversityPutraMalaysia–MalaysianTechnologyDevelopmentCorporation(UPM–MTDC),TechnologyParkMalaysia,KualaLumpurCityCentre(KLCC)andtheKualaLumpurTower.Asaresultofthesecybercitiesaccording toMDeC,1,000companiesaswellasuniversitiesweregrantedMSCMalaysiaStatus;sevenmajorMSCMalaysiaflagshipinitiativespiloted;22,000high-valuejobscreated;andatotalofoverRM6billionofrevenuegenerated.

Phase2andPhase3Therefore,Phase1expandingintoPhase2where,duringtheseventeenthMeetingoftheMSCImplementationCouncil,chairedbyYABPrimeMinisterofMalaysianon21June2004,itwasdecidedthattherewillbefurtherrollouttogobeyondtheoriginaldesignatedareaaimedatspreadingtheMSCMalaysiabenefitsnationwide.IntheinitialstageofMSCMalaysiaNationalRolloutundertheMSCMalaysiaNextLeap,MSCMalaysiaCybercitystatuswasawardedtoPenang(inBayanLepasFreeIndustrialZonesanditsvicinity)andKulimHi-TechPark.

This phase was further enlarged where, at the eighteenth MSC Malaysia ImplementationCouncilMeetingon11August2005,chairedbytheYABPrimeMinistercybercentresstatuswasawardedtoPerak,Melaka,Pahang,JohorandNegeriSembilanaswellasKLSentral.BytheendofPhase3inyear2020,theMSCMalaysiaagendawillbeextendedtothewholeofthecountry.


10�

The Role of MCMC in Cybercities

TheMCMCinitsroleasindustryregulatoranddevelopercontributestowardsthegrowthofcybercitiesviathreechannels:

1. The implementation of the MyICMS 886 strategy where ‘high speed broadband’ isoneof thekeyservicesset for implementation (thesignificanceof this is that the backboneforcybercitiesisbroadbandconnectivity);

2. The amendment of the Universal Service Provision Regulations which will seetheimplementationofbroadbandservicesfordistrictsundertheUniversalService Provision(USP)programme;and

3. The participation and involvement of the MCMC Regional Offices in the development of the ICT blueprint and cybercity planning for States throughout the country.

Specific States with Proposed Cybercities

Johor - MSC CyberportJohor intends to achieve knowledge-State or k-State status by 2015 and with it, the fulldevelopmentofacybercity.Highpriorityisgiventothepublic-privatepartnershipbetweentheStateGovernment(UPEN)andtheprivateentitiestodevelopMSCCybercitiesandCybercentressuchas:

1. MSC Cyberport Sdn Bhd with Nosa Ventures and State Government as key stakeholder; 2. UnitedEngineersMalaysiaforNusajayadevelopment;and 3. OtherMSCCybercity/Cybercentrestakeholders.

The ingredient forexpectedsuccess for theStateofJohor is itsstrategic locationbetweenEast, West and South Malaysia therein becoming the first cybercity to be located betweenKualaLumpurandSingapore,aidedbyitstacticallocationtothreelogisticports.Centraltothecybercityplanningwill be the150-acreMSCCyberport locatedat themeetingpointoftheNorthSouthHighwayandtheSecondLinkHighway.ThehuboftheCyberportwillhousetenantswithcoreactivitiescomprisingthefollowingkeyareas:

• Softwareandcallcentreoutsourcing-thestrategyisbasedonthefactthatCyberport is located next to Singapore which is a key financial hub in Asia, as well as the presence of large multi-national corporations (MNCs) such as Citibank setting-up shopinJohor;

• Logistic outsourcing - Johor with its two ports and up and coming airport makes it idealforaone-stoplogisticoutsourcingcentrethatcanservetheregionasMNCswill beabletoleverageonthecomparativelylowcostadvantagesofJohor;and


10�

• Bioinformatics-sinceMalaysiaisoneofthekeyproducersofpalmoilgloballyaswell as a one-stop hub for research and development in biotechnology (more so with biodiesel),focuswillalsobeplacedonMalaysia’sbiodiversity.Theadditionalattraction of this place is the garden-based working environment with 100% wireless Internet availability and lowest cost structure for ICT companies to set-up shop in any cybercityintheworld.

Sarawak - Zon Perindustrian Bebas Sama JayaThe locationof thefirstcybercity identifiedbytheSarawakStateGovernmentwillbe in theSamaJayaFreeTradeZone(ZonPerindustrianBebasSamaJaya-ZPBSJ),inKuching.Thebasisforchoosingthislocationisitsstrategicreadinessandinfrastructureavailability.ZPBSJhasalsobeenspecificallytargetedforthedevelopmentofHi-Techindustriesandknowledge-basedindustries.

Todate,therearesixmajorMNCsand12SupportingIndustriesinoperationhere.TheintentionandagendaoftheSarawakindustrydevelopmentcanbesaidtobuilduptheindustrysectorthroughtheconceptofIndustrialCluster.ItfollowsthatZPBSJwillbedevelopedspecificallyforknowledge-basedandhigh-techindustries.Assuch,allinfrastructureshasbeenplannedandimplementedwiththeaimofmeetingthisobjective.WiththeenhancementofZPBSJasanMSCCybercity,ICTapplicationwillbeemphasized-catalysinggrowthforaknowledge-basedindustry.TheSarawakStategovernmentappreciatesandunderstandstheimpactofcybercitiesfortheState.Theimpactincludesattractinginvestments;thebenefitsofaknowledge-driveneconomy;andstrengthenedindustriesinlinewithachievingnationalpoliciessuchastheNinthMalaysiaPlan,theNationalMission,theThirdIndustrialPlanandVision2020.

Pahang - Putra Square, Tanjung Lumpur and GambangThePahangStateGovernmentapplicationforMSCCybercentrestatusiscrucialinfacilitatingthechangetowardsbecomingadevelopedStateby2020.ThisisnotsurprisingconsideringthatPahangseesbothservicesandmanufacturingindustryaskeyeconomicdriversforeconomicgrowth. As such, the MSC Cybercentre status will be a significant stepping stone towardsrealising its i-Pahangvision,“The IDEAL ICTGateway for theEastCoastby InnovatingandIntegratingICTtoEnhanceDigital,MindandEconomicInclusion”.TheproposedCybercentreareasarestrategicallylocatedasthegatewaytotheEastCoast.

PutraSquareissituatedintheheartofKuantan,whilstTanjungLumpurisnestledwithinthefishermen’s village in Kuantan, with Gambang situated south-west of Kuantan, adjacent toEastcoastExpressway(LPT).SuchrealisationofPutraSquarehasstartedsince2005withICTHub(Phase1)andwillbereadybyfirstquarterof2007.Afour-storeyShoppingCentrewillalsobebuilttoachievePutraSquare’spotentialasamajorcommercialhubinKuantaninthenearfuture.Phase2ofPutraSquareisexpectedtobecompletedby2009,withConventionHall(capacityof5,000people),a17-storeyhotelwith350roomsanda21-storeyofficetower.AsforGambangandTanjungLumpur,thecentrewillbereadybytheyears2008/2009.


10�

Perak - Perak MSC Cybercentre – Perak Technotrade CentreIn the eighteenth MSC Malaysia Implementation Council Meeting held on 11 August 2005,chaired by the YAB Prime Minister of Malaysia, Perak was awarded the MSC MalaysiaCybercentrestatus.

TheinitialplannedMSCCybercentreinPerakisPerakTechnotradeCentre,abuildingwithina345-acrelandlocatedinBandarMeruRayaearmarkedforfutureexpansion.Equippedwithstate-of-the-artinfrastructureandthepromiseofMSCstatus10BillofGuarantees,MSC@PerakisdesignedtojumpstartICTinnovationsandinitiativesintheState.Itisexpectedforlaunchsometime inFebruary2007by thePrimeMinister. TheplannedMSCCybercentre inPerakencompassesbothexistingandneweconomicsectors.ThestrategyhingesondevelopingICTasanindustryaswellasICTasanenablertospurneweconomicactivitiesandenhancevaluecreation. Theaim is toe-Enablemajor industriesbytappingthepotentialsynergy fromtheinteractionbetweennewtechnologiesandeducatedpopulationwithinanenablingenvironmentfortheattainmentofknowledge-basedeconomies.

MSC@Perakservesasthephysicallocationandenvironmenttocatalyzeandsupportgrowthof ICT and ICT-enabled industries with the ensuing benefits extended to local community.Onceagain,theconceptisindustryclusteringbylocatingsimilartechnologycompanieswithinthesamegeographicalarea.TheplannedMSCCybercentre’shighspeeddatanetworksandinfrastructurealsoservesasatestbedformanynewICTtechnologyandproducts.Clusteringofthesecompanieswillindeedoptimizeandrationalizethehighcostofinfrastructureinvested.

110

Enhancing Partnerships

Introduction

Inaconvergingenvironmentofthecommunicationsandmultimediaindustry,evermorecrucialis the Industry partnerships towards different yet overlapping goals. For example, workingtowards an agreement on a standard or establishing a benchmark or objective that wouldfacilitatethefulfillmentofseparateproductlinesorsupportservicesasisthecaseofbroadbandwirelessaccessdevelopments.

Governmentand industryco-operationorcollaboration ismore intertwinednowadays. Theindustry-regulator and regulator-regulator or regulator-government agencies partnershipsaremoreevident in recentyears. MCMCalsoworkscloselywithmanygovernmentbodiesandagencies,includingregionalandinternationalarrangementsincomingupwithresearch,standards,andindustrydevelopment.

Whileindustry-consumerpartnershipsarehappeningmore,theregulator-consumerpartnershipsaremorepronouncedin2006,andthisisexpectedtoincreaseastheregulatorsetsoutinitiativesfor consumer or public awareness through participation in conferencesand others creatingplatformsforindustry-consumerdiscussions.

FORUMS UNDER THE CMA

Industry forums under the CMA comprise the Communications and Multimedia ConsumerForumofMalaysia,theCommunicationsandMultimediaContentForumofMalaysia,MalaysianAccessForumBhdandtheMalaysianTechnicalStandardsForumBhd.

Communications and Multimedia Consumer Forum of Malaysia

TheCommunicationsandMultimediaConsumerForumofMalaysia(CfM)wasestablishedinFebruary2001,inlinewiththerequirementsoftheCMAundertheauspicesoftheMCMC.TheCfM,worksonthebasisofindustryself-regulationwithparticipationfromtheserviceprovidersin telecommunications and multimedia industry (supply side) and representative bodies ofconsumers(demandside).FivecommitteeshavebeenestablishedwithintheCfMtoundertaketherelevanttaskandactivities:

1. ComplaintCommittee; 2. MembershipCommittee; 3. EducationandAwarenessCommittee; 4. CodesDraftingCommittee;and 5. ComplianceMonitoringCommittee.

Cha

pter 6

EnhancingPartnerships

111

Consumer Complaints Handling and Dispute ResolutionTheComplaintsHandlingUnitwithintheCfMwassetupintheyear2004.Inyear2006,CfMreceivedatotalof645complaintscomparedto623complaintsin2005.Thisrepresentsanincreaseof3.4%.

The most frequent categories of complaints received are “poor Internet connection” whichconstitutes27.1%(175cases)ofthetotalcomplaintsreceivedfollowedby“Poorcoverage”whichconstitutes17%(109cases).

Category of Complaints

PoorInternetconnection

Poorcoverage

PoorServiceApplication

Billingproblems

UnwelcomeSMS

PoorBroadcastTransmission

Inattentivecustomerservice

Contest

NotCoveredinGeneralConsumerCode

Others

Total


Fig.6.0CategoryofComplaints

No. of ComplaintsNo. of Complaints

(% of Total)

175

109

105

104

90

21

17

8

8

8

645

27.1

17.0

16.3

16.1

14.0

3.3

2.6

1.2

1.2

1.2

100.0

Consumer CodeOneof the tasksundertakenbyCfM is todevelopandmanage theConsumerCode. TheConsumerCode ismandatory to all licenseesby virtueof its compliancebeinga standardlicencecondition.CfMhastodateregisteredtwocodes,GeneralConsumerCode(GCC)on17October2003andInternetApplicationsServiceProviderSubCode(IASP)on1June2005.CfMiscurrentlyworkingonaSubCodeonPremiumRateservices.

Education and Awareness ActivitiesDuring2006,CfMactivelypromotedorcreatedpublicawarenessontheroleandfunctionsofCfMandtheGCC.TheCfMalsoembarkedonaPublicityandEducationProgrammeconsistingofparticipating in exhibitions, seminarsaswell as initiatingmediaeventsandcollaboratingwiththelocaluniversitiesinseveralawarenessprogrammes.CfMalsotookpartinthemobileprepaidregistrationexercisetogetherwithMCMCandMEWC.

In addressing the complaint or issue pertaining to short messaging services (SMS), mobilecontentandservices,CfMisoneoftherepresentativesintheWorkingCommitteeSub-Group(WGSG)togetherwithMCMC,PublicCellularService(PCS)providersandtheContentProviders.TheWCSGwasformedtoreviewandresolveanydisputethatmayariseduetotheenforcementoftheGuidelinesontheProvisionofMobileContentandServices,anindustryguidelineissuedbythePCSfortheirContentProviderswhoprovidemobilecontentandrelatedservices.


112

Communications and Multimedia Content Forum of Malaysia

The Communications and Multimedia Content Forum of Malaysia (CMCF) was designatedby the Commission on 29 March 2001 as an industry body entrusted with promoting self-regulationinthecontentindustry.TheContentCode,whichwasregisteredbytheCommissionon1September2004,providesguidelinesandproceduresforgoodpracticeandstandardsofcontentdisseminated toMalaysianaudienceby itsmembers in thecommunicationsandmultimediaindustry.Asat31stDecember2006,thereare45membersofCMCF.

Theyear2006sawtheappointmentofYBhgDato’MohamedBazainIdris,whowasformerlytheAttorney-GeneralofSabah,astheChairmanoftheComplaintsBureau.

In2006,CMCFreceivedandresolved13complaintsandattendedtofourrequestsforcontentadvisory.OneofthenotablecaseswhichtheComplaintsBureaumediatedonwasinregardsto the complaint made by a newspaper group against one of the local blogger sites. Theresolutionproposedwasagreedbybothpartiesandthecomplaintwassatisfactorilyresolved.

CMCFhasalsoundertakenseveralactivitiesforthepurposesofpublicityandcreatinggreaterawarenessofitsroleandfunctions.Inrelationtothis,CMCFconductedseveralmediainterviewsandparticipatedin18seminars,exhibitionsandconferencesnationwide.CMCFalsoreceivedvisitsfromforeignregulatoryauthoritiesandorganisationsaswellasfromlocaluniversitiesandcompanies.

Malaysian Technical Standards Forum Berhad

ThedesignationofMalaysianTechnicalStandardsForumBerhad(MTSFB)isamilestonefortheconceptofself-regulationtothecommunicationsandmultimediaindustryinMalaysia.MTSFBistaskedtodeveloptechnicalvoluntaryindustrialcodes.Currently,thereare11workinggroups(WG)reportingtoonereferencepanelofMTSFB.


Fig.6.1MTSFB-11WorkingGroupsonVariousAreas

1. DigitalTerrestrialTelevisionBroadcasting(DTTB)

2. IMT2000

3. MultimediaNetworkInfrastructure

4. DigitalSoundBroadcasting(DSB)

5. PowerLineCommunications(PLC)

6. NextGenerationNetwork(NGN)

7. WirelessIndustryEmission

8. WirelessBroadband(WiMax)

9. MultimediaTerminal

10. IPv6

11. RadioFrequencyIdentification(RFID)

MTSFB – 11 Working Groups on Various Areas

No. Areas


11�

Todate,theMTSFBhassubmittedfourVoluntaryIndustryCodesasfollows:

1. TechnicalStandardonRFEmissionControlofCellularRadioSites; 2. DigitalSoundBroadcastingTechnicalStandards; 3. TechnicalStandardsandInfrastructureRequirements–FixedNetworkInfrastructure;and 4. TechnicalStandardandInfrastructureRequirements–BroadcastNetworkInfrastructure.

Malaysian Access Forum Berhad

The Malaysian Access Forum Berhad (MAFB) was incorporated as a company limitedby guarantee on 17 April 2006 with its registered office in Kuala Lumpur. There are threecommitteesintheAccessForum,namely,theNetworkFacilitiesandNetworkServiceAccessForumCommittee,ApplicationsServiceAccessForumCommitteeandContentApplicationServiceAccessForumCommittee.

Todate,MAFBhas15membersrepresentingtheNFPs,NSPs,ASPsandCASPs.AmongstthekeyactivitiesofMAFBin2006includetheworkonthedevelopmentoftheAccessCode;participation in APT Forum in Macau and APT trainings in Kuala Lumpur and Bangkok;participationinCommunicAsiainSingapore;andco-sponsorshipoftheCompetitionRegulationWorkshoporganisedbyMCMC.

COURIER INDUSTRY FORUM

AlthoughnotrequiredbythePSA,theCourierIndustryForumwasformedin2006specificallytoaddress issuespertinent to licensees in thecourier industry.MCMC facilitatedaCourierIndustryForuminfourthquarter2006.TheForummeetsonceineveryquarteroftheyear.KeyfocusareasoftheForumaresectordevelopmentinitiatives,policyandregulatory,andsecurityissues.

• PosMalaysiaBerhad

• NationwideExpressCourierServicesBerhad

• GDExpressSdnBhd

• City-LinkExpress(M)SdnBhd

• ABXExpress(M)SdnBhd

• FederalExpressServices(M)SdnBhd

Courier Industry Forum Members

• DHLWorldwideExpress(M)SdnBhd

• UnitedParcelServiceSdnBhd

• OneExpressCourierSdnBhd

• Sure-ReachWorldwideExpressSdnBhd

• TNTExpressWorldwide(M)SdnBhd

• WorldCourier(M)SdnBhd

• J’MellysCarrier(M)SdnBhd


Fig.6.2CourierIndustryForumMembers


11�

UNIVERSAL SERVICE PROVISION

Overview Of The USP Programme

Background

TheUniversalServiceProvision(USP)programmehasthemainobjectivetoprovidecollectiveandindividualaccesstobasictelephonyandInternetservicesthroughoutthecountry.Thisisbecausenetworkfacilitiesproviders,understandably,tendtofocusoncommerciallylucrativeareaswhereinthishascreatedagapbetweenthe“haves”inurbanareas,andthe“have-nots”inruralareas.OftenreferredtoastheDigitalDivide,thisimbalanceincommunicationsaccesscanhavesocialramificationsifnotaddressedatthenationallevel.Consequently, USP targets are divided into “underserved areas” and “underserved groupswithinthecommunity”.Theclassificationsaredefinedasfollows:

1.UnderservedareaItisanareawherethepenetrationrateforPublicSwitchedTelephoneNetwork(PSTN)subscribersinMalaysiais20%belowthenationalpenetrationrateoranylocalitywhere,intheopinionoftheMCMC,applicationservicesarenotsufficientlyavailabletothecommunityatlarge.

Additionally, the MCMC also takes into account the number of households in an area, thedemandlist,andexistinginstalledcapacitiesofthenetworkinfrastructureforoptimizationofnetworkresources.

2.UnderservedgroupwithinthecommunityIt is a group of people linked by similar characteristics from a socio-cultural or economicperspective,withinaservedarea,whodonothavecollectiveand/orindividualaccess.Hence,theUSPprogrammeisatoolforbridgingtheDigitalDividebyactingasamechanismforchannellingprivatesectorinvestmentintounprofitableruralareas.Thekeytenethereisoneof“nogain,noloss.”Thismeansthatadesignatedserviceproviderincursnoloss,ormakesaprofit,whenimplementingthisprogramme.Theserviceproviderclaimsonlyforexpensesincurred,atcost,andtheMCMCreimbursesthembasedonadetailedclaimstemplate.

Activities

Designation

PursuanttotheUSPregulations,theMCMChadissuedNotificationofTargetsforUniversalServiceProvisionintheyear2002(NTP/USP/2/02)andsubsequentlyin2004(NTP/USP/1/04).

Subsequently,theMCMCcompletedthedesignationofallthe89underservedareas.Duetothelargenumberofunderservedareastobedesignated,theyweredoneingroupings.Theinitial groupof underservedareasconsistingof threedistricts (Yan inKedah,KinabatanganinSabahandJulau inSarawak)wascalled thepilotgroup. Thedistricts in thepilotgroupweredesignatedtotherespectiveserviceprovidersintheyear2002and2003.Thelistof89UnderservedAreasdesignatedareatAppendixSeven.

Enhancing Partnerships

115

Peninsular Malaysia

Source: MCMC, Industry

Fig. 6.3 Peninsular Malaysia

TM = 30 Districts

NasionCom = 1 Districts

eB Technologies = 4 Districts

DiGi = 5 Districts

Maxis = 1 Districts

Total = 41 Districts

Padang Terap

Sik Pendang

Yan

Bdr Baharu

Hulu Perak

Baling

Perak Tengah

Sabak Bernam

Kuala Selangor

Kuala Langat

Alor Gajah

Jasin

Pontian

Kota Tinggi

Mersing

Rompin Jempol

Bera Pekan

Maran Kuantan

KemamanJerantut

Dungun

Hulu T’ganu Marang

Setiu Besut

Pasir Puteh Machang

Bachok

Tumpat

Pasir Mas

Tanah Merah

Jeli

Kuala Krai

Gua Musang

Lipis

Hulu Selangor Jerantut


11�

TM=3Districts

Celcom=5Districts

TTdotCom=14Districts

TM=18Districts

NasionCom=3Districts

Celcom=1Districts

TTdotCom=1Districts

Maxis=1Districts



Lundu

Bau Samarahan

Asa Jaya

Simunjan

Serian Sri Aman

Betong

Saratok

Sarikei Maradong

Daro Matu

Dalat

Mukah Tatau

Julau Kanowit

Song

Lubok Antu

Kapit

Belaga

Bintulu

Marudi

Kudat

Kota Belud

Tuaran

Papar

Kuala Penyu Beaufort

Tenom

Sipitang Nabawan

Tongod

Beluran

Ranau

Tambunan

Keningau Kinabatangan

Sandakan

Lahad Datu

Kunak

Tawau

Pitas

Marudu


Fig.6.4Sarawak


Fig.6.5Sabah

Sarawak

Sabah

Limbang

Lawas


11�

USP Rollout Group & Status

TheoverallstatusofUSPprojectimplementationasat31December2006are:


Fig.6.6USPRolloutGroup&Status

89

Status

Completed

123

712

183

-59

-253

In Progress Evaluation PlanningPhase

No. of Districts

Completed – implementationcompletedasperapprovedUSPPlanInprogress – implementationisstillon-goingEvaluation – draftUSPPlansubmittedtoMCMCandcurrentlyunderevaluation bytheMCMCPlanning – preparationofdraftUSPPlanison-goingbytherespectiveService ProviderandnotyetsubmittedtoMCMC

Note:

Subscriber Take-up

Responsesfromthepeopleintheunderservedareastothefixedlineservicesprovidedbytheuniversalserviceprovidersarevaried.Thereareareaswithhighpent-updemandwhichwastranslatedintohighfixedlinetake-up.However,therearealsounderservedareaswherethesubscribertake-uparesurprisinglylow.Thereasonsforthiscouldbebasedonthefollowingfactors:

• Lackofmarketingandawarenesscampaignfromtheuniversalserviceprovidersof the servicesavailabilityinsomeunderservedareas; • Customersinunderservedareaslacktheconfidenceinunfamiliarserviceproviders;and • Thecommunity’spurchasingpower.

MCMCfelt thatextraeffortshouldbetakenbythedesignatedserviceprovidersto improvetake-upratethroughmarketingandawarenesscampaignstailoredtothedifferentincomelevelofparticulargroupsofcustomers.

Project Management

AstheUSPprojectrequirestheattentionandparticipationofmanyparties(thestategovernment,localauthorities,serviceprovidersandheadofvillagers),coordinationamongthemisimperative.Assuch,itwasdecidedthattheUSPprojectbemanagedasthreemainactivities.

1.CoordinationMeetingAkickoffmeetingwassubsequentlyarrangedupondesignationofaUSPdistricttoaserviceprovider.ThismeetingwasheldatDistrictOfficesandattendedbyMCMCandtherespectivedesignatedserviceproviders.DuetothenumerousdistrictsandremotelocationsinSarawak,acoordinationmeetingwasheldandchairedbytheHonorableStateSecretaryofSarawakandattendedbyallResidentandDistrictOfficers.


11�

2.ProjectMonitoringInordertoensureprojectsareimplementedaccordingtoapprovedUSPplans,activitiessuchasprojectmonitoringandsupervisionarecarriedout.Thisisusuallyintheformofsitevisitstoprojectsitesandregularclarificationmeetingswithdesignatedserviceproviders.Duringthecourseoftheprojectrolloutatleastonesitevisitwillbedoneineachdistrict.

3.CompletionVisitUponcompletionoftheproject,avisitisthenmadetotheprojectsite.Inthisvisit,detailsoftheequipmentinstalledandtheirlocationaredulyrecordedandverifiedbyallpartiesconcerned.TheMCMCcarriedoutatotalof50visitstoUSPprojectsitesbetween2004and2006.


Fig.6.7USPCompletionVisit

Role of MCMC Regional Offices

TheregionalofficesplayanimportantroleintheimplementationoftheUSPprogrammeatthestatelevel.TheytakeontheroleastherepresentativeoftheMCMCintheirrespectiveregionsinordertofacilitatemeetingswithstategovernmentsandlocalauthorities.Inadditiontothis,theRegionalOfficealsoprovidessupport to theMCMCUSPDepartmentduring theactualsupervisionofsiteworksaswellasensuringco-operationfromthestateauthorities.

Activities Carried Out by MCMC Regional Offices

Inlinewiththecurrentallocationofresponsibilities,theRegionalOfficesconductaseriesofprojectmonitoringexercisesatsiteswhereprojectsarebeingimplemented.


11�


Fig.6.8USPProjectMonitoringExercisebyDistricts

Eastern

Northern

Central

Sabah

Sarawak

Southern

Region States No. of USP Districts

Pahang,TerengganuandKelantan

Perak,Penang,KedahandPerlis

SelangorandNegeriSembilan

Sabah

Sarawak

MelakaandJohor

23

8

5

22

26

5

Exchanging Experiences Internationally

The implementationofUniversalService inMalaysia isof interest formanycountriesasthewideningdigitaldivideisamajorconcern.InternationalbodiesandregionalgroupingssuchastheAsiaInfo-CommunicationCouncil(AIC),AsiaPacificTelecommunity(APT)andAssociationof South East Asian Nations (ASEAN) promote exchange of ideas on universal service inconferences,forumsandworkshopsorganisedbythem.

MCMC took part in the conferences and workshops organised by the respective bodiesandsharedMalaysianexperiences in formulating theUSPLegalFrameworkandUSPFundMechanism.


Fig.6.9USPInternationalConference/Workshops


120

The MCMC also receives foreign delegates from other Regulators/Ministries. The foreigndelegatesforthepastyearsincludeSriLanka,PapuaNewGuinea,IndonesiaandVietnaminDecember2006.ThesedelegatesvisitedMCMCforexchangeofinformationontheMalaysianUSPFrameworkandtheUSPFundMechanism.

Looking Ahead

Malaysia’sappointmentasITUCentreofExcellencelocatedatUniversityUtaraMalaysiaITU has appointed Malaysia to host the Asia-Pacific Centre of Excellence (COE) for RuralICTDevelopmentatUniversityUtaraMalaysia. TheCOEisexpectedtostart inthesecondquarterof2007.Itwillruncoursesonruraltechnologies,applications,policyandregulation.TheCOEisaflagshipprogrammeoftheBureauofTelecommunicationsDevelopmentofITUtobuild regionalmechanismtostrengthencapacitywith focusoncapacitybuilding,humanresourcedevelopmentandpovertyeradication.ITUorInternationalTelecommuicationsUnionisaninternationalorganisationestablishedtostandardiseandregulateinternationalradioandtelecommunications.

USPReviewTo ensure the USP regulations remain relevant to changing needs and developments, theMCMCisrequiredundertheCMAtoconductafullreviewofthesaiddocumentonceineverythreeyears.Consequently,in2005,aspecialworkingcommitteewasformedforthatpurpose.ThecommitteehasreviewedthepresentregulationsandwillsoonrecommendtotheMCMCthenecessarychangesintheregulations.

TheexperienceofimplementingthesystemofUSPtodateisinlinewithorbasedonthedesiretoachieve:

a. thenationalobjectivesassetoutintheCMA; b. thenationalmissionasenvisagedinthe9thMalaysiaPlan(9MP);and c. thegoalssetoutintheMyICMS886Strategy;

TheUSPReviewCommitteewasgiventhetasktoreview,improveandenhancethesystemfortheprovisionofuniversalserviceinMalaysia.Tothisend,theMCMChasconductedinternaldiscussions, held various sessions and meetings with various parties to obtain views andfeedback inorder to improvethesystemforUSP, inparticular thedeliveryofmuchneededservicestothepublicinunderservedareas.

Thisculminatedwiththe“USPIndustryRetreat”whichwasheldinMelakainMay2006andattended by parties representing members of the industry, various Ministries, governmentagenciesandbodies.VariousviewsandproposalsputforwardduringthediscussionswereincludedinthePublicConsultation(PC)fordiscussion.

AmongtheproposalsandviewswhichwereincorporatedintothePCwereissuesregardingtherolloutofbroadbandservicesinUSP,thefundingofcommunity-basedandeducation-basedcontentdevelopmentfortheUSPCommunicationsCenter(UCC)andlibraries,theprovisioningof cellular accessnetwork infrastructure inunderservedareas, andamendment to theUSPclaimstemplate.


121

Fromtheconsolidated listofrespondents,each issuewasanalysedandarecommendationprovided.TheitemsreviewedledtoseveralproposedamendmentstotheUSPregulationsandtopartofthepoliciesandprocedureswithintheUSPDepartmentandMCMC.

The questions that were incorporated into the consultation papers included issues ondisbursement of funds directly to government and state agencies, funding of contentdevelopmentforUSPprojects,providingcellularaccessnetworkinfrastructureandrollingoutofbroadbandservices,amongothermatters.

Discussions between MEWC and the USP Review Committee are still ongoing to finalisethePublicConsultationexerciseandtodevelopamendmentsto theUSPregulationswherenecessary. It isenvisagedthattheAmendedUSPregulationswouldbegazetted insecondquarter2007.

USP for Other Underserved Groups

As the USP program will continue to touch many lives throughout the country, the MCMCisaware thatcertaingroupsdonothave thenecessaryaccess tobasiccommunications inspiteofthevastdevelopmentintheirsurroundingareas.Suchgroupshavebeendefinedasunderservedgroupswithinthecommunity,andhasbeenthemainfocusoftheUSPReviewCommittee.

The people within such a group need not necessarily be in an underserved area. On thecontrary,theycouldberesidingwithinaservedareabutareunabletouseorgainaccesstothestandardcommunicationfacilitiesduetosomespecialneedsorrequirementuniquetothegroups, insufficient infrastructure inthespecificlocality,ortheservicehasyettoreachtheirparticularareadespitenumerousapplicationsforit.TheMCMChasidentifiedsuchgroupsandhadproposedappropriatesolutionstocaterforthemin2006.

BridgingtheDigitalDividebytheEconomicPlanningUnitThe Economic Planning Unit (EPU) has started an initiative called the Study on NationalStrategicFrameworkforBridgingtheDigitalDivide.AmongtheobjectivesofthisinitiativeistosynchronizeallprogramsrelatedtoITdevelopmentintheruralcommunitycurrentlyconductedbyvariousdepartmentsandagenciesatdifferentlocationsthroughoutthecountry.

Throughout2006,theMCMCwasactiveinparticipatinginallmeetingsandworkshopsorganizedbytheEPUandprovidedallpossiblesupportbasedontheexperiencegainedfromUSP.

The MCMC conducts regular meetings with all USP service providers to acquire feedbackfromthemontheirrolloutofUSPprojectsintherespectiveareasdesignatedtothem.ThisisimportantasitenablesMCMCtoacquireusefuladditionalinformationsuchasdifficultiesfacedduringimplementation,feedbackfromthepublicandlocalauthorities,andalsosuggestionsforfuturerollouts.Allfeedbackandsuggestionsarethenevaluatedthoroughlytoensurethatitisawin-winsituationforeveryoneinvolvedintheUSPprojects.

BroadbandinUSPBroadbandInternetaccesswasfirstintroducedin2004inthepilotUSPsitesofJulauinSarawakandKinabatangan inSabah. These twopilot sitesare vital test sites togather informationonprovisioningofbroadbandaccessintosuchareas,wherebythefindingsmaybeusedas


122

the basis and guidelines should such technology be made available throughout the nation,especiallyintheunderservedareas.


Fig.6.10BroadbandinUSP

ThisisinlinewiththeobjectiveoftheUSPprogramwhichistoprovidebothbasictelephonyandInternetaccessservicestounderservedarea.Thetwostateswerechosenasthevaryingandchallengingconditions therecouldprovide thenecessary avenues to test theMCMC’splans.

Theevaluationoftheeffectivenessofbroadbandprovisioninginthetwolocationsisstillon-going,andwerecloselymonitoredin2006.

Impact Study on USP

UNIMASInadditiontotheprovisioningofbroadbandInternetaccess,aprogramcalledtheInformationTechnology (IT) Literacy program was also introduced in Rumah King, Julau in 2005. Thecoreobjectiveof theprogram is to train the local communityonbasic computer skills andInternetaccesswiththefourunitsofpersonalcomputersprovidedtogetherwiththeprogram,fullymaintainedbyTelekomMalaysiaBerhad, theappointedUSPserviceprovider forJulaudistrict.

Thefacilitatoroftheprogram,YayasanSalamMalaysia,placesavolunteertostayinRumahKing for the whole duration of the program and conduct the planned activities. Severalsupplementary programs such as adult literacy classes, medical camps and internationalcampswereconductedtocomplementtheITLiteracyprogramaswellastoimprovethesocio-


12�

economicstatusofthelocalsingeneral.TheseprogrammesinRumahKingandtheoutcomeswillbeusedasaninstrumentinidentifyinganyspecialrequirementthatcanbereplicatedinotherunderservedareas.


Fig.6.11UNIMAS

InordertoevaluatetheeffectivenessoftheITLiteracyprogramtheMCMChasalsoappointedUniversityMalaysiaSarawak(UNIMAS)toconductanImpactStudyontheITLiteracyprogramtothecommunity inRumahKingandthesurroundingnearbyareas.Thisstudywillprovideevaluation of the effectiveness of programs conducted and the impact that it brings to thecommunity,aswellastheeffectivenessofthefacilitatorappointedandrecommendationsforimprovementfromathirdpartyviewpoint.

UKMPakarundingInMarch2006,theMCMCengagedUKMPakarundingSdnBhd(UKMP)toconductasocio-economicimpactstudyontheUniversalServiceProvision(USP)Programme.Besidesassessingthe impactof theUSPprogramon thecommunity, thestudywasalsoundertakenwith theobjectiveofassessingtheperformanceofthedesignatedserviceproviders.

Thescopeofstudywaslimitedtothreeserviceproviders,i.e.,TM,NasionComandMaxisfortheUSPdistrictsofYan,Julau,Kinabatangan,HuluTerengganu,andLipis.

DigitalMappingofUSPSitesAlsointheagendafor2006wasthedigitalmappingofafewselectedunderservedareas,whichincludesthedetailedlocationofallUSPdistricts,networkhardwareandpayphonelocations.ThemappingistobedonebycollectingthelongitudeandlatitudeofthelocationsusingmobileGlobalPositioningSystem(GPS)receiversandmarkingitdigitallyintotheMapInfoProfessionalmappingsoftware.ThiswillenableaccuraterecordingofallexistingUSPhardwareinstallationlocationsandservicecoverageintherespectiveUSPareas,aswellasfacilitatetheexpansionoftheserviceinthesubsequentphasesoftheUSPimplementation.


12�

USP Fund

Background

Contribution

TheUniversalServiceProvisionFund(USPFund)wasestablishedundertheprovisionofSection204oftheCMA.TheUSPregulationsstipulatethatcontributionsfromlicenseesshallbebasedonthreefactors:

1. Thelistofdesignatedservices; 2. Weightagefactors;and 3. Sixpercentofweightednetrevenue.

AsperRegulation27ofthe2002USPRegulations,alllicensees(exceptforcontentapplicationsservicesprovider)whoseweightednetrevenuederivedfromthedesignatedservicesexceedsRM500,000inacalendaryear(minimumrevenuethreshold)shallcontribute6%ofitsweightednetrevenuetotheUSPFund.IntheAmendedRegulations2003,theminimumrevenuethresholdhasbeenincreasedtoRM2millioneffective1January2004.


Fig.6.12SampleofDigitalMappingofUniversalServiceSites

SGDEDAP

SGLMAUDLM

TEKALENT

KGKEPALA10

KGSEDAKA

KGTITIBATU

BKTBESAR

KGPULAUMAS

KGDATOLAH2

PDGLUMATLIGU KGKEPALA30

RLISCOMMSMKGRCMPDK

KGDLANGKCL

LIMAUDLM

TMNSAMUDRA

HSPTLYAN2

PNTAIMURNIKGSBRGPKAN USPPublicTelephone

USPGSMTower


12�

Table on Weightage Factor and Designated Services


Fig.6.13USPWeightageFactorandDesignatedServices

Localcall

Nationalcall

Rentalonexchangelines(residentialandbusiness)

Operatorassistedcall

Directoryassistanceservice

Connectionservice

Reconnectionservice

Internetaccesscommunicationscharge

Internetaccesscharge

Audiotexthostingservice

Designated Services

0

0

0

0

0

0

0

0

0

0

0

1

0

1

0

0

0

0

0

1

2002 Regulations2003 Amended

Regulations

Regulated under the Communications and Multimedia (Rates) Rules 2002

Not regulated under the Communications and Multimedia (Rates) Rules 2002

Internationalcall

Callterminationserviceprovidedtoforeignnetworkfacilitiesprovider,foreignnetworkservicesproviderand/orforeignapplicationsservicesprovider

Freephoneservice

ISDN

Cellularmobileservice

Internationalroamingservice

IPtelephony

Leasedlines

Suchotheractivitiessubjecttoanindividualorclasslicence

1

1

1

1

0.5

0.5

1

1

0

1

1

1

1

1

1

1

1

1

The weightage factor for calculation of USP contribution are as follows depending on the

designatedservices.


12�

Thecontributioniscalculatedthroughthesubmissionofreturnofnetrevenuefromdesignatedservices(return)fromalllicensees(exceptforcontentapplicationsservicesprovider).Thisisayearlyobligationandthelicenseesarerequiredtosubmitthereturnandtheirauditedfinancialstatementslatestby30Aprilofeachyear.Theformatofthereturnisstatedintheregulations.Uponthederivationoftheweightednetrevenue,theformulaofcontributionis:ContributionAmount=WeightedNetRevenueXContributionrate

Currently,thecontributionratehasbeenfixedat6%ofthetotalweightednetrevenue.

Todate,onaveragetheannualcontributionfromeligiblelicenseesamountstoRM600-RM700million and these funds are managed and controlled by the MCMC through the USP FundAccountwhichisseparatefromtheMCMCAccount.

InlinewiththeUSPregulations,aUSPAnnualReportispublishedprovidingfulldetailsoftheactivitiesoftheUSPFundAccountaswellastheAuditedFinancialStatements.

Payment out of the USP Fund

Intheyear2006,paymentshavebeenmadetothefollowingdesignatedserviceprovidersfortheUSPprojects:

1. CelcomBerhad 2. eBTechnologiesSdnBhd 3. TelekomMalaysiaBerhad 4. TimedotComSdnBhd 5. MaxisMobileSdnBhd

PROGRESS OF TIME 1 AND TIME 2 IMPLEMENTATION

The conception of Time 1 and Time 2 projects stemmed from several Cabinet Minister’smeetingsbetween25September2002and23April2003,whereuponinMay2004,theMinisterforEnergy,Water andCommunicationsmade it clear that there is tobe fullmobile cellularcoverageforthewholecountrybyyearend2006.

Time 1 focused on the capital of the nation, Kuala Lumpur, as well as the nation’s seat ofGovernmentPutrajayawhich includedCyberjaya. Time2extendsto includetherestof thecountrywithfocalpointsatcommercialareas,highways,majortownsandtouristspots.Todate,Time1isinachievementof100%coverageandforTime2at79%.

Cellular Coverage Test

CellularcoveragedrivetestandwalktesthavebeencarriedoutthroughouttheyeartoensurecoverageprovidedbythecelcoshavereachedtheTime1andTime2requirements.Cellularcoverage drive test and in-building walk test are also carried out whenever complaints arereceivedorwhentheneedarises.


12�

Source:MCMC

Fig.6.14In-BuildingCoverageWalkTest:Building

1. ParcelA

2. ParcelB

3. ParcelC

4. ParcelD

5. ParcelE

6. SeriPerdana

7. KediamanTPM–SriSatria

8. IstanaMelawati

9. WismaPutra

10. MOF1–KementerianKewangan

11. MOF2–KastamDiRajaMalaysia

12. MOF2–JabatanAkauntanNegara

13. PalaceofJustice

14. MahkamahSyariah

15. PutrajayaShangri-La

16. PutrajayaNationalConventionCentre

17. KementerianPerdaganganDalamNegeri& HalEhwalPengguna

18. KementerianPerusahaanPerladanganDan Komoditi

19. KementerianPembangunanUsahawan danKoperasi

20. JabatanPendaftaranNegara JabatanImigresen

In-Building Coverage Walk Test: Building

1. Completed

2. Work-in-progress

3. Approvedbutcivilworkshavenotstarted

4. Pendingatlocalauthorities/governmentagencies

5. Pendingacquisition

6. Withdrawn/cancelled

Status

Time 1 Progress Report Status

No. Overall Sites Protocol Routes

193

2

5

7

3

52

92%

61

0

0

0

0

11

100%Completion


Fig.6.15Time1-ProgressReportStatus

Time 2 Progress Report Status Summary – Overall Sites

SBC

CELCOS

Total

Total LCN Issued Current Completion Current (%)

LCN-LocationCriteriaNotificationSource:MCMC,Industry

Fig.6.16Time2-ProgressReportStatusSummary–OverallSites

917

351

1,268

656

351

1,007

72

100

79


12�

History

EffortsontheimplementationofTime1andTime2beganin2004whentheMinisteroftheEnergy,WaterandCommunicationssoughttheengagementandparticipationoftheindustrytoassistinachievingfullcellularcoverageforMalaysiabyend2005.Toberealistic,itwasagreedthattheprogrammebedividedintoTime2AandTime2Bwithcompletionattheendof2006.

Ineffortstoacceleratetheprocess,therewasthecreationandbirthofanewbreedofNFP(I)licenseesknownastheSBCs(StateBackedCompanies)forrespectivestates,withthesoleaimtoinstallandprovidethenetworkfacilitiesinfrastructureonwhichtheserviceprovidersaretoplacetheirequipmentforcoverage.Asaresult,13newlicenseeswereestablishedfrom13states.ForWilayahPersekutuanKualaLumpur,theexistinglicenseeAsiaspaceDotcomSdnBhdwasropedintoprovidetheinfrastructure.

To manage this nationwide project and steer it towards success, a Steering CommitteecomprisingCEOsofthethreemajorplayerschairedbytheChairmanofMCMCtogetherwiththeMinistryofficialswasestablishedinApril2004.TheCommitteeistooverseetherecommendedtwo-prongedTime1andTime2approach,andpriortoeachSteeringCommitteeMeetingaTechnicalWorkingGroup,andtheChiefTechnicalOfficersmeetingwereheldtoensurethatall

Time 2 Progress Report Status Detail – Overall Sites

Target 2006 Completed %


Fig.6.17Time2-ProgressReportStatusDetail–OverallSites

Pahang

Kedah

Johor

Terengganu

Kelantan

Sarawak

Selangor

Melaka

Sabah

NegeriSembilan

PulauPinang

Perak

Perlis

Total SBC

Asiaspace

Celcom

Digi

Maxis

Total Time 2

134

84

112

52

71

120

57

41

111

65

25

37

8

917

1

97

84

169

1,268

115

70

91

38

51

86

40

26

73

40

11

15

0

656

1

97

84

169

1,007

86

83

81

73

72

72

70

63

66

62

44

41

0

72

100

100

100

100

79

State


12�

cornersweresufficientlyexploredinordertoironoutexistingandanticipatedissues.Partiesinvolvedinthiseffortcomprisedthefollowing:

1. Thecellularserviceproviders:Celcom,DiGiandMaxis; 2. StateBackedCompanies; 3. TheProjectDirectorDewarisanCorporationSdnBhd;and 4. TheOneStopAgenciesfromallStatestakingonthefunctionofexpeditingthesiteapproval processonbehalfoftheserviceprovidersfromthelocalauthorities.

Industry Impact

TheprogressonbothTime1andTime2canbeattributedtotheconsistentandunrelentingeffortsoftheindustryasawholeandthecooperationreceivedfromthelocalauthoritiesaswell.However,theprojectwasnotwithoutitsfairshareofproblemsandobstacles;andrecurringissuesthatplaguedonprogressasfollows:

1. Land acquisition – Main difficulty is acquiring land for installing the network facilities. MCMCresortedtoapproachdirectlytheStateGovernmentstogarnertheirsupportand assistance in overcoming this problem as well as set up periodical platform for discussionsamongserviceproviders,theSBCsandStateGovernmentagencies.

SBC


Fig.6.18Time2-StateBackedCompanies

State

Johor

Pahang

Kelantan

Terengganu

NegeriSembilan

Sabah

Sarawak

Melaka

Selangor

Perak

Penang

Perlis

WilayahPersekutuanKualaLumpur

D’Harmoni

TouchMatrix

InfraQuest

Desabina

RangkaianMinang

CommonTowersTechnology

Sacofa

MITCH

KonsortiumJaringanSelangor

PINS

PDCTelecoms

PerlisComm

Asiaspace

State Backed Companies


1�0

2. Non-standardized fees, documentation and process flows – Local Authorities adopt differentsetsofapprovalchecklists,chargingthe licenseesdifferent feesandhadnon- standardisedprocessflowsacrossthecountry. Thesecausedconfusionandproblems for the licensees in meeting their deadlines. Attending to this, the MCMC, MEWC, andtheMinistryofHousingandLocalGovernmentworkedclosely toestablishamore standardisedguideline.Atthesametime,theMCMCsoughtassistancefromtheLocal Authorities to lower processing fees and the number of requisite application documentations. To this end, the MCMC utilised platforms for discussions such as theInfrastructureCoordinatingMeetingsheldatStateleveltoattendtospecificmatters concerned.

3. Protestfromresidents–This isa long-standing issueeven intheearlydaysofmobile telephony network facilities installations. However, the situation is more aggravated todayinviewoftheaggressivenatureofinstallationsimplemented.Besidesnationwide dialogues and seminars open to the public on the scientific results of perceived RF Radiation by local experts from University of Malaya and the Malaysian Institute of Nuclear Technology Research (MINT), the MCMC also constructed a website, (www. rfrad.gov.my) with information on RF Radiation and the perceived health threat. The objectiveofthewebsiteistoreducethehealthconcernsofthepublicbyeducatingthem ontheactualpositionofRFRadiation.

4. Highrentals–Theincreaseinrentalratesimposedbylandandbuildingownersforthe network facilities is hard toavoid, as these landandbuildingownersareawareof the dependency of the licensees on their property. The upside to this is the licensees’ successful adoption of the MCMC recommendation and encouragement to share the network facilities. Also, the licensees were recommended to utilise State and Federal landinsteadofprivatelandwithsomedegreeofsuccess.

5. Exclusivity–Themainobjectiveof thecreationof theSBCswastoprimarilybuildand ownthenetworkfacilitiesneededbytheserviceproviders.ThereareStateGovernments who have mistaken this primary objective and have in turn made the installation of networkfacilitiesanexclusiverightoftheSBCtherebyeffectivelystoppingthelicensed service providers from building they own network facilities for both the Time 2 project aswellasthelicensedserviceproviders’ownexpansionplans.TheMCMCmanagedto approach this situation by having direct dialogues with the respective Senior State OfficialstocommunicatetheactualpositionoftheMCMConthismatter.

6. Powersupply–Despitetherapiddevelopmentofthecountry,ensuringadequatepower supplyinremoteareasisstillachallengefortheserviceproviders.TheMCMCsoughtto moderate this situation throughseveralmeetingswith theEnergyCommission,Tenaga NasionalBerhad(TNB),SarawakElectricitySupplyCorporation(Malaysia)or(SESCO)as well as Sabah Electricity Sdn Bhd (SESB) and the service providers to ascertain the extent of support and assistance by which the power suppliers can ensure rural communications had a constant supply of power. Alternative solution was for service providers tousegeneratorsetswhich runon fuel. Thisoption iscurrentlyusedbutat highcosts.Itisthegovernment’swishthatsuchhighcostsisnotultimatelybepassed ontotheconsumers.


1�1

7. Monsoonseason –Eachyear the implementationandprovisionofnetwork facilities is hampered by severe weather conditions making it almost impossible for the network facilitiestobeinstalled.Theonlypossiblemeansofovercomingthisproblemistospecify which quarter of the year is best for installation. Towards meeting this objective, the MCMChasacceleratedfortheissuanceofLCN(LocationCriteriaNotification)ordersto beissuedtotheSBCsatamuchearlierdatesoastoavoidthemonsoonseason.

AWARENESS CAMPAIGNS

Theyear2006wasagoodyearforboththe industryandthegeneralpublicastherewasasubstantialrolloutofcampaignsonnumerousmatters.TheMCMCthroughitsStatePlanningDivisionwasinvolvedinseveralkeyindustrycampaignswhichhelpedpavethewayforindustrydevelopmentandconsumerempowerment.

ChiefamongthecampaignswastheinvolvementoftheMCMCRegionalOfficesinthemobileprepaid registration awareness campaigns; the introduction of the MyICMS 886 to stategovernments;thecampaignonhealthconcernsperceivedtobecausedbyRFRadiation;thecampaignrelatedtobusinessopportunitiesintheindustry;andenforcementactivities.

Inlinewiththecampaigns,theMCMCdiscussedface-to-facewithStateMinisters,aimedatcommunicating theMCMCandFederalGovernmentpoliciesandplans for the ICT industryforthatparticularstate.TheseincludetheMenteriBesarofJohor,Pahang,Selangor,Perak,Terengganu,Kelantan,andtheChiefMinistersfromPenangandMelaka.ThedirectapproachallowedforboththestategovernmentandtheMCMCtoachievealevelofcommitmentfromeachotherfortheadoptionaswellasimplementationofgovernmentpolicies.

Othercampaignsinclude:

1. ITAwarenessco-organisedwiththeSabahStateDept-Sabah; 2. InternationalConferenceonArtificialIntelligenceTechnologyalignedwiththeMyICMS 886andNationalBroadbandPlanco-organisedwithUMS–KotaKinabalu,Sabah; 3. WorldPostalDay–KotaKinabalu,Sabah; 4. AmateurRadioExhibition&LiveDemo–Kuching,Sarawak; 5. Collaborator & USP Presentation at UNIMAS Symposium on ICT for Rural Development–Kuching,Sarawak; 6. ICTLiteracyCamp–PejabatDaerahMatu,Sarawak; 7. Spectrumandmonitoringactivities–throughouttheStateofJohor; 8. Joint presentation on Import Procedures, Sales of Electronic Goods and CommunicationDevicestogetherwithSIRIM–Johor; 9. DialogueSessionwithAmateurRadiouserswiththeMedia–KotaBharu,Kelantan; 10. IndustryDevelopmentSeminar–KotaBharu,Kelantan; 11. BriefingonMyICMS886toPahangGovernmentagencies–Kuantan,Pahang.


1�2

Awareness in Areas of MyICMS 886

Theeventsin2006inrespectofawarenessofareaspertainingtoMyICMS886areasfollows:

1. National Broadband WorkshopWithbroadbanddeploymentidentifiedasoneofthekeymoversforMyICMS886,aNationalBroadbandWorkshopwasheldinAugust2006wheremorethan200participantstookpartinaneffort toformulatetheframeworktobringaboutsuccessfuldeploymentoftheservicetoMalaysianresidents.

2. MyICMS EXPOTheMEWChostedaMyICMS886ExpoattheKualaLumpurConventionCentrefrom5to9September2006.TheExpofeatured200exhibitorsshowcasinganarrayofgadgetsandvisitorscouldobtainabetterideaoftheopportunitiesbeingprovidedbytheMyICMS886frameworkaswellasobtainapreviewofthedigitallifestyleenvisioneduponsuccessfulimplementationofMyICMS886goals.

3. MyICMS886 Summit - Digital Opportunities for DevelopmentInconjunctionwiththeMyICMS886Expo,aconferenceintheformoftheMyICMS886Summit,withtheme“DigitalOpportunitiesforDevelopment”,featuredpresentationsfromMCMCandtheindustry.

4. World Habitat Day 2006 – Featuring Model Digital HomeThe MCMC is working on building a model digital home to enable the public to grasp theconceptoflivinginafullydigitalisedhomeenvironment.Therefore,inconjunctionwiththeWorldHabitatDay2006,anannualworldwideeventorganisedbytheMinistryofHousingandLocalGovernment(KPKT),MCMCcollaboratedwithKPKTtofeaturethedigitalhomeconcept.Theeventwasatwo-dayexhibitionheldattheMidValleyExhibitionCentreon25to26November2006,whichcarriedthethemeCities,MagnetsofHope.

Attheexhibition,MCMCpropoundeditsveryfirstdigitalhomeconceptwiththeobjectivetoeducatethegeneralpublicandcreateawarenessondigitallifestylesinviewoftheinevitablyincreasingurbanisation.MCMCshowcasepresentedaselectionofdigitalproductsandservicesfromoursupporters,namely,TelekomMalaysiaBerhad(TM),Hewlett-PackardMalaysia(HP)andLGElectronics(LG),whichincluded:

a. Live demo of a digital home in action in the Living Hall by HP showcasing a world of excitingdigitalmediaoptionswith theirstate-of-the-artMediaCenterPCpairedwitha generouslysizedflatscreenplasmaTV,allfromthecomfortsofthesofa;

b.Live demo of a smart kitchen in the Kitchen by LG showcasing their TV fridge, rapid- cookingmicrowave,smartvacuumcleanerandthelike;and

c. ShowcasebyTMontheirinnovationssuchas:

• TM’s latest application, ADSL Homeplug which terminates broadband access at customer premises and has the capability to deliver up to 85Mbps throughout over powerlinecommunication;and

• Whereuserscanhave fasterspeedsandshorterdownload timeswithCelcom3GX, whichisbasedonHighSpeedDownlinkPacketAccess(HSDPA)technology,fourto fivetimesfasterthan3G,and15timesfasterthanGeneralPacketRadioService(GPRS). It is an evolution of 3G, with higher downlink packet access of up to 14.4 Mbps comparedto2Mbpsfor3G.


1��

5. Info Savvy U CampaignMCMC is collaborating with the ICT industry to develop and launch a campaign designedto make Malaysians more technology savvy. Entitled, Info Savvy U, the campaign aims toraisethelevelofpublicawarenessoftheInternetandotherrapidtechnologicaladvancementsthataretakingplace.Thecampaignisexpectedtotakeaholisticapproach,andwillincludeactivitiessuchasthecreationofawebcommunity,ruraloutreachprogrammesandnumerousroadshows.

6. Promotion and Awareness ActivitiesMorepromotional andawareness activities in the thirdquarter of 2006were in the formofpresenting the MyICMS 886 blueprint in various seminars and conferences to investors,industry stakeholders, state governments and various government ministries and agencies.PresentationswerealsomadetotheInfocommunicationsDevelopmentAuthorityofSingapore,andtheSeoulDigitalForum.

ThiscontinuedengagementwithstakeholdersisseenasacrucialfactorinensuringthattheMyICMS886strategycanbeimplementedforthemutualbenefitofallrelevantparties.ThepresentationsanddialoguesessionsprovidedextensivefeedbackandinputstoaugmentandhighlightinitiativesthatshouldbeundertakenbyMCMCforthedevelopmentoftherelevantservices and infrastructure. The MyICMS 886 video also brings to life the concept and itsaccessibilitytoall.

STANDARDS

Certifying Agency

Section186of theCMAprovidesforMCMCtoregisterCertifyingAgencies (CA)orClassesofCertifyingAgencies (CCA) includingagenciesoutsideMalaysia. This is thebasis for thecertifyingmechanismforpurposesofcertifyingcompliancewithcodesorstandardsunderPartVII,TechnicalRegulationoftheCMA.Todate,theMCMChasappointedthreeorganisationsandregisteredthemasCAs.

Registration CategoryOrganisation

1. SIRIMQASInternational SdnBhd(SQASI)

2. MalaysianMaritime Academy(ALAM)

3. MultimediaCollege(MMC); formallyknownasTelekom TrainingCollege

CertificationofCommunicationsEquipment

CertificationofProficienciesfordesignatedskillareaofRadioOperator

CertificationofProficienciesfordesignatedskillareaofNonRadioOperator

3September2003

3September2003

15July2002

Source:MCMC

Fig.6.19CertifyingAgency

No. Date of Appointment


1��

CA Achievement for 2006 versus 2005

Certifications

SQASI ALAM MMC

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

No

. of

Cer

tifica

tes

Issu

ed

2005 2006

2,538

781

4,043

2,567

872

3,501

Source:MCMC

Fig.6.20CAAchievementfor2006versus2005

SQASIundertakescertificationprogramforcertifyingall typeofcommunicationsequipmentfor wired and wireless categories. ALAM and MMC manage the certification program forcertificationofproficiencies.ALAMconductscertificationcategoryforthedesignatedskillareaofradiooperatorandtheMMCisappointedtocarryoutacertificationprogramfordesignatedskillareasforotherthanradiooperatorcategory,i.e.,cablingprovider.

Malaysian Standards Act (Act 549, 1996)

SIRIMBerhadhasbeenappointedby theDepartmentofStandardsMalaysia (DSM)as thesole national standards development agency under the provisions of Malaysian StandardsAct(Act549,1996).MCMCworkscloselywithSIRIMindevelopingstandardsinthesectorofcommunicationsbyjoiningtheIndustryStandardsCommittee(ISC)establishedbySIRIM.MCMCarecurrentlymembersofthefollowingISCs.

a. ISCE-1:IndustryStandardsCommitteeonElectrotechnical-1 b. ISCE-2:IndustryStandardsCommitteeonElectrotechnical-2 c. ISCG:IndustryStandardsCommitteeonInformationTechnology

TheISCsareresponsiblefor: • Overseeing for an orderly and effective development of standards in specific broadsector; • Overseeinginternationalstandardizationinspecificbroadsector;


1��

• Finalapprovaloftechnicalcontentofdraftstandards;and • Coordinating all standards work undertaken by technical committees and workinggroups.

MCMC is alsoamemberofTechnicalCommittee (TC) forEMCandTC forEMFunder theMalaysianElectrotechnicalNationalCommittee(MyENC).

• TechnicalCommitteeonInformationSecurity(TC5) • TechnicalCommitteeonIntelligentTransportSystem(ITS) • TechnicalCommitteeonElectromagneticCompatibility(EMC) • TechnicalCommitteeonFreightContainer(TC104) • TechnicalCommitteeonAudioVideoandITEquipment(AV/IT) • WorkingGrouponRequirements,SecurityServicesandGuidelines(TC5/WG1)

Standards Development with Ministry of Health

TheMCMCalsoworksinclosecooperationwithgovernmentagenciessuchastheMinistryofHealth(MoH)inrelationtodevelopingstandardsonelectromagneticfield(EMF)radiationandhealth.Theseareasneedtobedevelopedtoaddressconcernsfromthepublicandprovideguaranteethatcommunicationsinfrastructureutilisingradiofrequency(RF)issafe.Onasimilarnote, MCMC and the Malaysian Technical Standards Forum Bhd, or MTSFB, are currentlyassistingMoHindraftingaguidancedocumentonsafetyandhealthaspectsofbasestationsandmobilephonesforthepublic.

Mutual Recognition Arrangements

TheMutualRecognitionArrangement(MRA)ontelecommunicationsequipmentbringsaboutmutualacceptanceontestingandcertificationofequipment.Oneoftheprocessesinvolvedwillbealigningofstandardsamongparticipatingcountries.MalaysiaisactivelyinvolvedintheASEANTelecommunicationRegulatorsCouncil(ATRC)SectoralMRAonTelecommunicationsequipment and is currently aligning and upgrading MCMC’s technical specifications as arequirementfortheimplementationoftheMRA.

Free Trade Agreement in Technical Standards Development

Malaysia is actively participating in bilateral Free Trade Agreements. Many of them are on-goingnegotiations.However,onethathasbeenimplementedisthebilateralagreementcalledMalaysia-JapanEconomicPartnershipAgreement (MJEPA). MCMC isactivelyparticipatinginoneoftheMJEPAsub-committeeswhichistheSubCommitteeonTechnicalRegulations,StandardsandConformityAssessmentProceduresheadedbyDSM.

SPECTRUM RESEARCH COLLABORATION

This is anew initiativebyMCMC incollaborationwith InstitutionsofHigherLearning (IHL).Theaimistocarryoutresearchworkonspectrumrelatedmatterswhichwillbringbenefitstonotonlytheindustrybutalsoimproveourdailylives.ThisisalsoinalignmentwiththeNinthMalaysiaPlan,MyICMS886strategies,andMCMCobjectivesoncapacitybuilding.


1��

TheobjectivesofSpectrumResearchCollaborationare: • Researchfortheneedsofindustry;and • Buildcapacityandgrowknowledgeintheareaofspectrum.

SpectrumResearchCollaborationFrameworkcomprises: • Researchpriorityareas; • Creationandmanagementofprojects; • SpectrumResearchCollaborationPanel; • CollaborationManagementCentre; • FundingandResources;and • Knowledgesharingandpromotion.

TheMCMChasidentifiedthefollowingfocusareasforresearchcollaborationwithIHL:

ExamplesResearch Priority Areas

1. Emergingtechnologiesand advancementswithimpacttofuture usageofspectrumandchangefactors

2. Policyandregulatoryaspectsof spectrum

3. Spectrumandus

TechnologiessuchasUWB,SDR,CognitiveRadio,RFID,HAPS,WiRAN,WiFiber

Spectrumallocationandassignmentmethodologies.Spectrumtrading,pricing,andeconomicsofassignment

Useofspectrumandhowitwillchangeourlives

Source:MCMC

Fig.6.21SpectrumResearchPriorityAreas

1. TostudyresearchproposalsorprojectsidentifiedbyInstitutionsofHigherLearning;the communicationsandmultimediaindustry;andtheMCMC

2. AllprojectsandresearchproposalswillbevettedandendorsedbyMCMC

3. Searchforresearchprojectsdeliveringpositiveshort-termaswellaslong-termimpact

Source:MCMC

Fig.6.22CreationandManagementofResearchProjects

ThereisalsoaResearchCollaborationPanelestablishedtoprovideanadvisoryroletoMCMContheareasofspectrumresearch.ThememberscompriseMCMC,IHLandtheindustry.

The MCMC is in the process of setting up a Collaboration Management Centre, which isa web based network to facilitate collaboration among Universities and the industry in theResearchAreas/Clusters tobesetup. MCMCtakestheroleofmanagementof thecentre,includingproviding interim reports; andmanagementof capacitybuilding throughseminarsandworkshops.

AnappropriateamountofResearchFundwillbecreatedbyMCMCtosupporttheresearchworkincludingresourceadministration.

Creation and Management of Research Projects


1��

TheMCMC’scollaborationworkwithboththeindustriesandIHLwilloccupyauniqueroleinthedevelopmentofarichwirelesscommunicationandmultimediaenvironment inMalaysia.Thiswillstrengthenthecapabilitytogenerateadvanceadministration,regulatoryandtechnicalexpertise toaddress thedemandingneedsof thecommunicationsandmultimedia industry.Amongsttheinitiativestowardsthisendincludeconferencesandlectureseriesforknowledgesharingandpromotionofspectrumresearch.

1. Sponsorshiporhostingoffull-timeresearchers;acquisitionoftools;andengagementof experts

2. ResourcescompriseMasters/Doctoratestudentsfromuniversitiesandworkingindustry professionalssponsoredonMasters/Doctorateprogrammes

Source:MCMC

Fig.6.23SpectrumResearchFundandResource

Spectrum Research Fund and Resource

1��

Steps Into the Future - An Outlook

TheMCMCseestheyear2007asayearofmorepositivegrowthfortheindustry.Thepro-businesspolicyoftheMalaysiangovernmentandmonetarystanceconduciveforinvestmentsremaininplacetoeffectastableinvestmentandbusinessclimateforcapital investmentsinthecountrygenerally,andsimilarly investmentsinthecommunicationsandcommunicationsindustryinspecific.

GovernmentinitiativesforICTdevelopmentinMalaysiasecuresthegoaheadforfurther,albeitatacceleratedpace,developments in thecommunicationsandmultimedia industry. Thesetrendssetin2006underthefarreachinginitiativesoftheNinthMalaysiaPlan(2006-2010);theThirdIndustrialMasterPlan(2006-2020);emphasisandallocationsaccordinglyintheBudget2007;andinthemorespecificinitiativesoftheMyICMS886introducedin2005toalignindustrytargetsaswell.ThewheelsforturningtofastpacefocusonleveragingonICTforgrowthhasbeenstartedandthisisexpectedtoberealisedinstages,tobefirmlyentrenchedintheplansforgrowthanddevelopmentaspectsoftheindustryin2007andbeyond.

ThemajorMalaysianplayers’strategiestosecureoperationsinnewgrowthregionsoverseaswill furtherbear fruit, contributing tonational and internationaldevelopment in thearenaofcommunicationsservices.ManyindustrymilestonesarerecordedovertheyearsinMalaysia–convergencelaw,2.5G,3G,3G+HSDPA,fixedbroadbandaccess,QoSratings;andmanymoreareexpectedtobeofferedsoon,suchasnewservicesfromthe2.3GHzplatformfeaturingwirelessbroadbandaccess,mobilenetworkportability,andtherealmofdigitisation,openingawholenewarrayofbusinessmodels(digitalradioanddigitalhomes).Furthermore,inlinewith the expansion of the MSC Malaysia designated areas to include the Klang Valley, therequirementstoacceleratebroadbandserviceintheKlangValleytherebybecomescrucial.Tothisend,theMCMCtogetherwithMDeCisworkingonaKlangValleyBroadbandPush(KVBP)programmetocommencein2007.

Thematuringmobilemarketcontinuestooffercalculatedsurprisestoextractmaximumandoptimum revenue from existing infrastructure, for example, in the formofmoreofferingsofmultimediamessagingon topofSMS,mobileTVande-mail through thewirelesshandset.The declining fixed line market offers latent potential for further communications servicesgrowthovertime,especiallywhenthe“mobility”platformissolidlyinplace,andasconsumersdesiremoreintheirhomesinstationaryoptionon“lightning”speedsandasbusinessesandgovernmentscanbegintooffertheversatilityof“homeworkplace”.

Thecatchofcourseremainsthefactorsofcostandlowerprice,perhapsmore“flat-rates”billing;andthepaceofawarenessof theconsumers,businessesand individualsenmassetonewcommunicationsandmultimediadevicesandservicescomingintotheMalaysianenvironmentoverthenextfewyears.Acrossallthesedevelopmentstheelementsofcorporategovernanceandfairplayneedstoexisttostrengthentherelationshipsamongstbusinesses;businessesandtheircustomers;andalsoserviceproviderswithregulatorsandgovernment.

Cha

pter 7

1��

StepsIntotheFuture-AnOutlook

Inflationarypressuresare likely topersevere in2007. Thispresentsaconstant reminder toserviceproviderstoensurecost-savingsmethods;improvecustomerrelationshipstoretainthelastringgitearnedfromcustomers,letalonethemuchneededtobeearnedincrementalringgitfromnewcustomers;andcreateconsumerawareness ina long term relationshipwith theirrevenuesources.Innovationsatalljuncturesoftheindustryvaluechainisexpectedtocontinuetobetheorderofthedayforserviceprovidersasmorediscerningconsumersdevelopandthenextyoungergeneration–evenmoretechsavvy,goesintotheMalaysianlabourforceasidefromtheeverincreasingcompetitiveforcesgnawingawayatoperatingmargins.

The regulatoryenvironmentcontinues toevolve;working inamoreconvergentenvironmentovertime,whichrepeatedlyteststherobustnessoftheregulatoryanddevelopmentalregimeundertheCMA.Asthenetworkbecomesmorepopulatedandaccessmoreprevalent,theissueofnetworksecurityandappropriatemeasurestoensurecompliancebyallpartiesconcernedandtointernationalsecuritystandardpracticeatthatbecomesanecessity.TheMyICMS886strategieshavesecurityininformationsecurity,integrityandreliabilityofnetworksasoneofitstargetpriorityareas.

Fromtheregulatoryperspectiveaswell,theaccessframeworkneedstobefurtherenhancedandrefinedwithindustryplayersforensuringgreatertransparencyandcreatinganenvironmentfacilitatingagreementsthatensuresuccesstoallpartiesinvolved.Throughtheaccessregime,theMCMCasthemediatorisalreadyinplace;themechanismreadyincaseofrequirementforrecourse.Theareaofspectrumhasprioritymatterstosortoutforefficiencyinusageaswellasspectrumresearchcollaborationbusiness,whilenumbermanagementremainsapotentialareatoensuregreatercompetitionincommunicationsservices,beitB2C,B2B,M2Morothers.

Timelyavailabilityof“richenough”contentthroughthemanydeliverymodesalreadyinplacesuchasmobileTV,IPTV,andforthoseentertainmentservicestocomethroughFTTH,digitalHDTV, and more entrenched IP environment are crucial improvements to implement today.Traditionalbusinesstodaymaynotexistintothefullydigitalfutureatourdoorstepimmediatelyintime.Thecouragetoexitandstartanew,ortoconsolidateespeciallyamongstthesmallerbusinessesareexpected.Thisisanaturalcourseasincreasingcompetitionteasesoutthebestplayersforsuccessovertime.

TheevolutionarytrendsinplacesincetheintroductionoftheCMAcontinuesitsunrelentlessmovetowardsaconvergedcommunicationsservicesindustryinMalaysia,andthisalongwithsimilardevelopments internationally. The blurring of the boundaries of traditional communicationsservices isexpectedtocontinueandindustryplayerstogetherwithregulatorsalike,havetolearnand learn fast in the fasterpaceof communicationsandmultimediadevelopmentsoftoday;beittogarnerfirstmoveradvantages,orpursueincrementalrevenueandmarketshare,ororderlydevelopmentof the industry. Addedon this the fact thatcompetitionmodesareexpectedtonolongerremainnational,butregionalandincreasingly,internationalaswell.

Asusualamidstchange,thereisopportunityandchallenges.Thisisthesameforallindustryplayers,theregulatorandeventobusinessesandconsumersalike.Insummarisingthischapteronsteps into the future, thevariouscommon ingredients forsuccessappear fundamentallysimple,forexample,smartpartnershipsandconstructivecollaborationsharesriskandincreasestheprobabilityofsuccessfulexecutionofplansaswellashigherrevenueandmargins;creatingconsumerandpublicawarenessraisesservicestake-upandincreasesnaturallythequalityofserviceforsharpercompetitiveness;goodstrategicplanningcombinedwithexcellent,timelyexecution are ingredients for repeated success; excellent quality of service; and also moreemphasisoncustomerrelationshipmanagement.

1�0

DIGITAL SIGNATURE – CERTIFICATION AUTHORITIES AND FEES

Certification Authorities

1. DigiCertSdnBhd 2. MSCTrustgate.ComSdnBhd 3. BankNegaraMalaysia(RestrictedLicensee)

Recognised Repositories

1. DigiCertSdnBhd 2. MSCTrustgate.ComSdnBhd 3. BankNegaraMalaysia(RestrictedCertificate)

LICENSES UNDER THE DIGITAL SIGNATURE ACT, 1997

Fee

Appendix One

EstablishmentStage OperationStage GrantingFee AnnualOperatingFee Renewal of licenceTransfer of licence

RM2,500RM2,500

RM30,000RM2,500

RM2,500RM2,500

Application for licensed certification authority

Recognition of Repository/Date/Time Stamp Service

EstablishmentStage OperationStage GrantingFee AnnualOperatingFee Renewal of Certificate of RecognitionRecognition of Foreign Certification Authority

RM2,500RM2,500

RM30,000RM2,500

RM2,500RM30,000

1�1

Appendix Two

LIST OF INDIVIDUAL LICENSEES 31 December 2006

Network Facilities Provider (NFP) Individual Licensee

1. DiGiTelecommunicationsS/B2. TelekomMalaysiaBhd3. CelcomMobileS/B(TMCellularS/B (formerlyknownasTelekomCellularS/B)4. TMPayphoneS/B(formerlyknown asCitifonS/B)5. FiberailS/B6. MobikomS/B7. AsiaspaceDotcomS/B8. Celcom(Malaysia)S/B9. CelcomTransmission(M)S/B10. MaxisBroadbandS/B11. MaxisInternationalS/B12. MaxisMobileS/B13. SuidarElektronikS/B14. TTdotComS/B15. MalaysianMobileServicesS/BTIMECel S/B(formerlyknownasTIMEWirelessS/B)16. TIMESatS/B17. TIMEReachS/B18. MEASATSatelliteSystemsS/B (formerlyknownasBinariangSatellite SystemsS/B)19. NasionComS/B(formerlyknown asHigh-TechElectronicsS/B)20. AtlasONES/B(formerlyknownasKasturi CapitalS/B)21. SapuraHoldingsS/B22. SacofaS/B23. MiTVCorporationS/B(licence transferredfromGrafimatixS/B)24. SmartDigitalCommunicationsBhd (formerlyknownasSmartMultimedia TechnologyS/B)25. MaxisMobileS/B(licencebeing transferredfromPrismanet(2002)S/B; originallytransferredfromPrismanet(M) S/BtoPrismanet(2002)S/B)

26. eBTechnologies(M)S/B27. AirzedBroadbandS/B28. JaringCommunicationsS/B(licence transferredfromMIMOSBhd)29. MyKRISAsiaS/B30. SetiaHarumanS/B31. ScopetelS/B32. OpticalCommunicationEngineeringS/B33. BaycomS/B34. ARLHomeCommS/B(formerlyknownas ARLHomeCommunicationsS/B)35. ITSurplusS/B36. VDSLNetworkS/B37. D’HarmoniTelcoInfraS/B38. TouchMatrixS/B39. MelakaICTHoldingsS/B40. InfraQuestS/B41. Bizsurf(M)S/B42. KonsortiumJaringanSelangorS/B43. RangkaianMinang(NS)S/B44. IntelligentEdgeSolutionsS/B45. CelcomTimur(Sabah)S/B46. YikedBinaS/B47. GoLightspeedBroadbandS/B48. DesabinaIndustriesS/B49. Clear-CommS/B50. PerakIntegratedNetworkServicesS/B51. CommonTowerTechnologiesS/B52. CNXSolutionsS/B53. TechnologyParkMalaysiaCorporationS/B54. PDCTelecommunicationServicesS/B55. DanawaResourcesS/B56. MIBCOMMS/B57. FibrecommNetwork(M)S/B58. ElectcomsWirelessS/B59. RealmEnergyS/B60. PerlisCommS/B61. IPMobilityS/B

1�2

AppendixTwo

Network Service Provider (NSP) Individual Licensee 31 December 2006

1. DiGiTelecommunicationsS/B2. TelekomMalaysiaBhd3. CelcomMobileS/B(TMCellularS/B) (formerlyknownasTelekomCellularS/B)4. FiberailS/B5. MobikomS/B6. AsiaspaceDotcomS/B7. Celcom(Malaysia)S/B8. CelcomTransmission(M)S/B9. MaxisBroadbandS/B10. MaxisInternationalS/B11. MaxisMobileS/B12. SuidarElektronikS/B13. JaringCommunicationsS/B(licence transferredfromMIMOSBhd)14. TTdotComS/B15. MalaysianMobileServicesS/B TIMECelS/B(formerlyknownas TIMEWirelessS/B)16. TIMESatS/B17. MEASATSatelliteSystemsS/B(formerly knownasBinariangSatelliteSystemsS/B)18. NasionComS/B(formerlyknownasHigh- TechElectronicsS/B)19. AtlasONES/B(formerlyknownasKasturi CapitalS/B)20. SapuraHoldingsS/B21. BaycomS/B22. VADSS/B23. MiTVCorporationS/B(licencetransferred fromGrafimatixS/B)24. SacofaS/B25. SmartDigitalCommunicationsBhd (formerlyknownasSmartMultimedia TechnologyS/B)26. MaxisMobileS/B(thelicencebeing transferredfromPrismanet(2002)S/B; originallytransferredfromPrismanet(M) S/BtoPrismanet(2002)S/B)27. TMNetS/B28. eBTechnologies(M)S/B

29. AirzedBroadbandS/B30. MyKRISAsiaS/B31. ScopetelS/B32. CordodaCorporationS/B33. OpticalCommunicationEngineeringS/B34. ARLHomeCommS/B(formerlyknownas ARLHomeCommunicationsS/B)35. MerchantradeAsiaS/B36. RedtoneMarketingS/B37. ReachBandwidthServicesMalaysiaS/B38. ITSurplusS/B39. VDSLNetworkS/B40. Fristor.comS/B41. AppliedInformationManagementServices S/B42. NextTelecommunicationsS/B43. XintelS/B44. K.K.I.P.CommunicationsS/B45. NTTMSCS/B46. Bizsurf(M)S/B47. IntelligentEdgeSolutionsS/B48. TelshineS/B49. ITGCommunicationsS/B50. CentennialGatewayS/B51. CelcomTimur(Sabah)S/B52. GoLightspeedBroadbandS/B53. Clear-CommS/B54. AxisTechnologiesSolutions(M)S/B55. AsiaTelecommunications(M)S/B56. EquantServicesMalaysiaS/B57. CNXSolutionsS/B58. FSBMNetMediaS/B59. GITNS/B60. TechnologyParkMalaysiaCorporationS/B61. DanawaResourcesS/B62. MIBCOMMS/B63. FibrecommNetwork(M)S/B64. ElectcomsWirelessS/B65. RealmEnergyS/B66. HeiTechPaduBhd67. IPMobilityS/B

1��

1. PowercomInteractiveMediaS/B2. StationNetwork(M)S/B3. NeurolightS/B4. UlmaxGlobalS/B5. MicroCommunicationSystemsS/B6. EverworksSolutions(M)S/B7. VastMeridianS/B8. PurpleGumS/B9. 12WAPS/B10. PerisaiKreatifS/B11. MetastableProductionS/B12. ReachBandwidthServicesMalaysiaS/B13. AirocomTechnologyBerhad14. InteractiveVista(M)S/B15. OramiTechnologyS/B16. CTAPPSTechnologyS/B17. ConnectionFidelityS/B18. CommzgateS/B19. iSCALARHTTechnologyS/B20. XwaveSolutionsS/B21. GlobaleapCommunicationsS/B22. SamartI-Mobile(Malaysia)S/B23. DamansaraDutaS/B24. K-AmalTechnologies(M)S/B25. ImpianasS/B26. PersiasysS/B27. IPMobilityS/B28. SertingComS/B29. VirtualCommerceS/B30. SiemensMalaysiaS/B31. IsentricMediaS/B32. MalaysianAlliedMobileS/B33. QuicknetComS/B34. WhoopsS/B35. TriExcelSystemS/B36. JASMobileSolutionsS/B37. MacrobuzzInteractiveS/B38. Cellab(M)S/B39. TPMITS/B40. VOBAsiaS/B41. MichiganPastriesS/B42. SGCommunications(M)S/B43. ArthatekResourcesCorporationS/B44. EvergreenPublisherS/B45. ZedMobileMalaysiaS/B46. AceServeAnacondaS/B47. OnlineE-ClubManagementS/B48. Mobile365AsiaS/B49. DubaitechMarketingS/B

50. KotaemasEdaranS/B51. AzeaCommunicationsS/B52. PanMalaysianPoolsS/B53. ThumbwaveS/B54. MediaDigitalDistributionS/B55. VoizipAsiaS/B56. WidenetDistributorS/B57. StarsAssociatedS/B58. SegiMajuS/B59. STRCommunicationS/B60. AchiJayaCommunicationsS/B61. SamenTrunkedRadioS/B62. CMRSTrunkRadioS/B63. SyarikatPelatusS/B64. ElectcomsS/B65. Textphon(M)S/B66. Mal-TelCommunicationsS/B67. Wellog(Malaysia)S/B68. ViaCommunicationNetworkBhd69. TenggaraNasaS/B70. PerfisioSolutionsS/B71. MurasuCommunications(Malaysia)S/B72. MaxisBroadbandS/B73. MaxisInternationalS/B74. MalaysianMobileServicesS/B75. MaxisMobileS/B(IAS)76. MaxisMobileS/B(PSTN&PublicPay Phone&DirectoryServices)77. MerchantradeAsiaS/B78. TIMEReachS/B79. ReliantCommunicationS/B80. NasionComS/B81. TelshineS/B82. Celcom(Malaysia)S/B83. CelcomMobileS/B84. RedtoneTelecommunicationsS/B85. Polytrans(M)S/B86. QuantumBusinessS/B87. ExtivaCommunicationsS/B88. PCSE-HubHoldingsS/B89. TelekomMalaysiaBhd90. TelcomUnited(M)S/B91. TMPayphoneS/B92. ZenAlphaNetworkS/B93. SoftSwitchS/B94. J&CPacificS/B95. MobileExecS/B96. i2US/B97. FtecCommunicationsS/B98. ARLHomeCommS/B

AppendixTwo

Application Service Provider (ASP) Class Licensee 31 December 2006

1��

AppendixTwo

99. DragonbackMediaInteractiveS/B100.ClickNRingS/B101.MobileCommunicationsMediaS/B102.AxistoneTelecommunication103.OneCallNetworkCommunicationS/B104.IkogoS/B105.SwedtelSoutheastAsiaS/B106.EmexusAsiaPacificS/B107.iRepublics.comS/B108.TrioMobileS/B109.XintelS/B110.EmergeSoftwareSolutions(M)S/B111.JaringCommunicationsS/B112.AxisTechnologiesSolutions(M)S/B113.SmartdialInternationalS/B114.RedtoneMytelS/B115.TriplayS/B116.AsiaGatewayCommunications(M)S/B117.FibrecommNetwork(M)S/B118.LingkaranEhsanS/B119.E-RoomS/B120.InventiveComputingS/B121.NextTelecommunicationsS/B122.THTechnologiesS/B123.TTdotComS/B124.E-AuthenticS/B125.ITGCommunicationsS/B126.RealmBPLCommunicationsS/B127.KajangInterGroupBhd128.WokbyteS/B129.SuperbTraxSystemsS/B130.CineArtProductionHouseS/B131.KurniaInsurans(M)Bhd132.HICOMCommunicationsS/B133.FunmobileS/B134.InspirationDataServices135.BaycomS/B136.SkylineThemeS/B137.ViewqwestTechnologiesS/B138.LovelinkConnectionsS/B139.OngSangHuatHoldingsS/B140.Tec-SurfTechnologiesS/B141.MNCConsultingS/B142.SeaLordTechnologiesS/B143.ChiliworksInteractiveS/B144.LevelOneCommunications(M)S/B145.ElanetS/B146.NyholtTelecommunications(M)S/B147.CentennialGatewayS/B148.FSBMNetMediaS/B149.DreamFusionS/B150.MTLE-solutionsS/B151.VastelCorporationBhd

152.Swiftnet(M)S/B153.VoxEmasCommunicationsS/B154.AsiaNetcomServicesS/B155.JNISystemS/B156.TMNetS/B157.HeiTechPaduBhd158.VADSBhd159.MazandGroupS/B160.HasyonTeknikS/B161.DigiTelecommunicationsS/B162.ExticomS/B163.TelekomAppliedBusinessS/B164.P&OGlobalTechnologiesS/B165.PagerCommunicationsS/B166.CometronS/B167.SocieteInternationaleTelecommunications Aeronautiques(SITA)168.LNVSolutionsS/B169.JayaplusWirelessS/B170.Push-To-TalkS/B171.SaturnHoldingsS/B172.IngenDynamicsS/B173.YesnetTelecommunicationS/B174.GITNS/B175.MobifGlobalS/B176.Bru-HaasS/B177.WorldMarketplaceS/B178.TricubesMobileS/B179.PaneagleCommunicationsS/B180.NGlobeS/B181.K.K.I.P.CommunicationsS/B182.MillionFramesS/B183.AliyaTechnologiesS/B184.NukilanMahirS/B185.AJVMultimediaDevelopmentS/B186.DraconidSolutions187.BigSpaceS/B188.PlatronixS/B189.WapPortalS/B190.CosmosDiscoveryS/B191.DanawaResourcesS/B192.PacificInternet(Malaysia)S/B193.UnitedStarComunicationS/B194.GoVoiceS/B195.FunContentS/B196.ParadeNineTechnoS/B197.ParacorpTechnologyS/B198.TMInfo-MediaS/B(formerlyknownas TelekomPublicationsS/B)199.IPSATS/B200.DialRingIP(M)S/B201.NagisanCommunicationS/B202.ComputerSystemsAdvisers(M)Bhd

1��

AppendixTwo

203.NextnationNetworkS/B204.GenesisVoizSystemsS/B205.JobSakeDotComS/B206.NoblePlatformS/B207.BestDebutS/B208.CuteplexInnovationsS/B209.MediacliqS/B210.XpediteSystemsIncorporated(Malaysia) S/B211.CertitudeS/B212.SedcomS/B213.DirecthereS/B214.CNXSolutionsS/B215.MRCBTechnologiesS/B216.VoicecomGlobalS/B217.RhyzrinS/B218.EtnikHarmoniS/B219.AntechnicSystemsS/B220.VoicestarCommunicationsS/B221.ITXMarketingS/B222.GatewayOptionS/B223.AvivaS/B224.PlanworthCommunications(M)S/B225.ERPTwentyOneS/B226.UnrealmindInteractiveBhd227.AsiaMobileCommercePrivilage(M)S/B228.Ericsson(Malaysia)S/B229.EudooS/B230.MatrixInternet&WirelessS/B231.RedwoodNetworksS/B232.MCOMMediaTechnologyS/B233.GenusisConsultancyS/B234.SmartDigitalCommunicationsBhd235.SacofaS/B236.GlomobiS/B237.MNCWirelessBhd238.MobileTouchetekS/B239.K.S.LeeS/B240.DazzlingMomentsS/B241.TeliixS/B242.UniversalChainS/B243.DancomTelecommunications(M)S/B244.FrizzhubVoiceServicesS/B245.JupitelS/B246.ConsensusNetworkS/B247.MCSBSystems(M)Bhd248.FocusSpiritS/B249.GlobalSurfS/B250.TwoTaleMarketingS/B251.Bizsurf(M)S/B252.SMSBizS/B253.MobileEntertainment(M)S/B254.AKNMessagingTechnologiesBhd

255.NetstarAdvancedSystemsS/B256.XtendServicesS/B257.OteloTelecommunicationsS/B258.BuzzcityS/B259.DexiberS/B260.NTTMSCS/B261.UniversalConnectionsIntegrator(M)S/B262.IntelligentEssenceS/B263.Gen-XTechnologyS/B264.BelltoneInternationalS/B265.ArticulateNewMediaS/B266.Inter-Touch(Malaysia)S/B267.FtoneS/B268.FreeNetBusinessSolutionsS/B269.MobileWalletS/B270.CCITechnologyS/B271.JPComS/B272.MiTVBroadbandS/B273.BTSystems(Malaysia)S/B274.DVMIntellisourceS/B275.AsiaEPBhd276.AirzedNetworksS/B277.SpyglassS/B278.AppliedInformationManagementServices S/B279.GWNetworksS/B280.ZontellS/B281.Airoport.comS/B282.AchiJayaCommunicationsS/B283.IonnexS/B284.E-ToneNetworkS/B285.JobmobileServiceCentre286.AlyaIntegratedTelecommunicationS/B287.ModernLinesCommunicationS/B288.InformationNetworkServicesS/B289.PlanetunesMobilesS/B290.idotyouMobileS/B291.N-WaveTelecoms(Malaysia)S/B292.ArticulateOnlineS/B293.AVWorksS/B294.TeletureS/B295.VisionTechSolutionS/B296.GenmeServicesS/B297.YomobileS/B298.MikimotoCommunicationsS/B299.GlobalTouchSolutions(M)S/B300.MacroKioskBhd301.N2NConnectBhd302.IsentricS/B303.TIMEdotNetBhd304.IPXcess.comS/B305.AheadMobileS/B306.ChatgateCommunicationsS/B

1��

AppendixTwo

307.SistemMegajayaS/B308.EquantServicesMalaysiaS/B309.IPInnovationS/B310.N-VisioS/B311.MobileMoneyInternationalS/B312.RachCallCentreS/B313.Polytrans(K.L)S/B314.KeepCommunicationS/B315.AsiaTelecommunications(M)S/B316.AsiaspaceS/B317.iFreedomCommunications(Malaysia)S/B318.OzumMaxCommunicationsS/B319.WunderwerkeS/B320.CallplusTelecommunicationsS/B321.MT&TTechnologyS/B322.UberfusionS/B323.SnatecSolutionsS/B324.GreenWebS/B325.MobalexMalaysiaS/B326.PromotheusResources327.MacroLynxS/B328.IdotTVS/B329.NGCSystemsS/B330.NanoMediaTechnologyS/B331.Youtalk(M)S/B332.ITWorksConsultingS/B333.VoiztechCommunicationS/B334.BetaTechnologyS/B335.CoreAlliedS/B336.EverestWebS/B337.MapITMSCS/B338.MeasatBroadcastNetworkSystemsS/B339.M-VillageSolutionsS/B

340.IGMMobileS/B341.ORBCOMMSatelliteMalaysiaS/B342.ExtremeBroadband(M)S/B343.BoeingAerospace(Malaysia)S/B344.XotaCommunicationsS/B345.HingLeeTechnology346.iNavigateS/B347.eBTechnologies(M)S/B348.ShancoRichS/B349.FastLineMarketingS/B350.TSMobileS/B351.DreamChorusS/B352.EcenturyS/B353.GlobalTransitCommunicationsS/B354.BigBangInteractiveS/B355.VDSLNetworkS/B356.HGNetworkTechnologyS/B357.AirtimeManagement&ProgrammingS/B358.ClicqueTechnologyS/B359.CelcomTechnology(M)S/B360.Info-AgeTechnologyS/B361.InfosphereS/B362.Rock-OnAllianceS/B363.RentakSetiaS/B364.MCMWirelessS/B365.Two-PTechnology(M)S/B366.PaycommS/B367.ITGTelecommunicationsS/B368.iGlow.com.myS/B369.MediaconciseS/B370.Clear-CommS/B371.WebvisionsNetworkServicesS/B372.AmazonConnectionS/B

1. SistemTelevisyenMalaysiaBhd(TV3)2. NatsevenTVS/B(NTV7)3. MetropolitanTVS/B(MetroVision)4. MaestraBroadcastS/B(MixFM)&(ERA)5. MeasatRadioCommunicationsS/B(MY), (Hitz.FM)&(Light&Easy)6. SynchrosoundStudiosS/B(WowFM)7. KristalHartaS/B(CatsRadio)8. SuaraJohorS/B(Best104)9. STARRfmS/B(formerlyknownasRadio RediffusionS/B)(RfM)&(Redi.FM)10.RadioLebuhrayaS/B(THR)11.HusaNetworkS/B(ManisFM)

12.InstitutKefahamanIslamMalaysia(Radio IKIM)13.MalaysiaAirports(Sepang)S/B(Radio KLIA)14.RimakmurS/B15.PerfectExcellenceWavesS/B (transferredfromTitianSebaranS/B)16.MiTVCorporationS/B (licencetransferredfromGrafimatixS/B)17.CH-9MediaS/B(formerlyknownas MedanmasS/B)18.NetworkGuidanceS/B(FINENetwork)19.RadioWanitaBhd20.ISYHoldingsS/B

Content Application Service Provider (CASP) Individual Licensee 31 December 2006

1��

Appendix Three

LIST OF CLASS LICENCEES

Network Service Provider (NSP) Class Licensee 31 December 2006

1. ImpianasS/B2. PersiasysS/B3. IPMobilityS/B4. SertingComS/B5. MediaDigitalDistributionS/B6. MutiaraPMCS/B7. WidenetDistributorS/B8. StarsAssociatedS/B9. SegiMajuS/B10. STRCommunicationsS/B11. AchiJayaS/B12. SamenTrunkRadioS/B13. CMRSTrunkRadioS/B14. SyarikatPelatusS/B15. ElectcomsBhd16. Textphone(M)S/B17. Mal-TelCommunicationS/B18. Communications&SatelliteServicesS/B

19. Wellog(M)S/B20. HaysonTeknikS/B21. LNVSolutionsS/B22. IngenDynamicsS/B23. JayaPlusS/B24. PushToTalkS/B25. CometronS/B26. P&OGlobalTechnologiesS/B27. SocieteInternationaleTelecommunications Aeronautiques(SITA)28. PagerCommunicationsS/B29. ParacorpTechnologyS/B30. SaturnHoldingsS/B31. NetstarAdvancedSystemsS/B32. XtendServicesS/B33. ExtremeBroadbandS/B34. OrbcommSatelliteMalaysiaS/B35. BoeingAerospace(Malaysia)S/B

1. ImpianasS/B2. PersiasysS/B3. IPMobilityS/B4. SertingComS/B5. MediaDigitalDistributionS/B6. MutiaraPMCS/B7. WidenetDistributorS/B8. StarsAssociatedS/B9. SegiMajuS/B10. STRCommunicationsS/B11. AchiJayaS/B12. SamenTrunkRadioS/B13. CMRSTrunkRadioS/B14. SyarikatPelatusS/B15. ElectcomsBhd16. Textphone(M)S/B17. Mal-TelCommunicationS/B

18. Communications&SatelliteServicesS/B19. Wellog(M)S/B20. HaysonTeknikS/B21. IngenDynamicsS/B22. JayaPlusS/B23. PushToTalkS/B24. CometronS/B25. P&OGlobalTechnologiesS/B26. SocieteInternationaleTelecommunications Aeronautiques(SITA)27. PagerCommunicationsS/B28. ParacorpTechnologyS/B29. SaturnHoldingsS/B30. NetstarAdvancedSystemsS/B31. XtendServicesS/B32. ExtremeBroadbandS/B33. OrbcommSatelliteMalaysiaS/B

Network Facility Provider (NFP) Class Licensee 31 December 2006

1��

Appendix Four

Postal Service Provider

1. PosMalaysiaBerhad

Courier Service Providers 1 September 2006

1. BatuPahatExpressService2. BeukhenInternationalS/B(formerlyknown asBeukhen&Pokhrell(M)S/B)3. CherasJayaEnterprise4. CenWorldwideS/B5. ConsolExpressServiceS/B6. GDExpressSdnBhd7. KlachCourierServices(M)S/B8. MetroPostCourierS/B9. QNSServices10. YMEExpressS/B11. EraBaruBusinessSystemS/B12. SyarikatMajuEmasTeknologiS/B13. WEBCourierS/B14. AMCExpressMailS/B15. UnitedExpressDeliveryS/B16. SpeedExpressServices17. PSHExpressS/B(formerlyknownas GerakKawalS/B)18. OneExpressCourierS/B19. DailyCourierExpress20. KangarooWorldwideExpress(M)S/B21. SkymailExpressWorldwideS/B22. J.N.E.ExpressS/B23. SpeedlineCourierServices24. OramiS/B25. ExploreNetworkSolutions(M)S/B26. TNTTPackagesExpressS/B27. DaylightExpressServices28. KTMDistributionS/B29. M&AExpressS/B30. PacificExpressWorldwideS/B31. MatangLogisticsS/B32. PadatJayaServicesS/B33. NZALogistics(M)S/B34. AYJCourierServiceS/B35. D-TWOServicesS/B36. All-TradeBusinessAgencies37. B.P.AmbulatoryS/B38. HMRWorldwideExpressS/B39. H.E.S.ExpressServices(M)S/B40. UnitedCourierAgencyS/B41. Despatch2000S/B42. Sure-ReachWorldwideExpressS/B

43. TheSenders44. InterlinkAccessServicesS/B45. SRCourierS/B(licencetransferredbySR ExpressS/B)46. SAKargoS/B47. NatsonsDespatchServices48. PacargoManagementS/B49. B&HWorldwideS/B50. AirpakExpress(M)S/B51. AirwayExpressServis52. AmericarasExpressServices53. Trans-ExpressCourierS/B54. B.PExpressServicesS/B55. CityLinkAirCargoS/B56. CityLinkLogisticsS/B57. ContinentalExpressIncorp.S/B58. CityLinkExpress(M)S/B59. D.CExpress60. DHLAirFreightForwarderS/B61. DHLWorldwideExpressS/B62. DPEServices63. ExpressSystems(Penang)S/B64. ExpressSystemsSabah65. FederalExpressServices(M)S/B66. FeldaTransportServicesS/B67. FirstLetterDespatchService68. FirstNationwideCouriersS/B69. EpicFleetCourier(M)S/B70. FontelloSecretarialServices71. JBExpressSystemS/B72. GunmaPostCourierS/B73. LMAExpressCouriers74. Successline(M)S/B75. NationwideExpressCourierServicesBhd76. NormanCourierServiceS/B(licence transferredbyNormanServices)77. OverseasCourierService(M)S/B78. OverseasCourierService(Sabah)S/B79. RafrimS/B80. SkynetWorldwide(M)S/B81. SecurexpressServicesS/B82. Securicor(Malaysia)S/B83. StorkExpress(M)S/B84. SyarikatO.B.S.

1��

AppendixFour

85. TransformaS/B86. UdaraExpressCourierServicesS/B87. UnitedParcelService(M)S/B88. InstantExpressS/B89. AvantiWorldwideExpressS/B90. GBSExpressServicesS/B91. FlashJordanCourierS/B92. WorldCourier(Malaysia)S/B93. ABXExpress(M)S/B94. ACICourierExpressS/B95. LinkDualExpress(M)S/B96. LBCMabuhay(M)S/B97. OBSCorporateServices(M)S/B98. RoadrunnerExpressS/B99. TNTExpressWorlwide(M)S/B

100.Tri-KWorldwideExpress(M)S/B101.Distinct2000S/B102.LynxNetServicesS/B103.RNZExpressS/B104.T&TTravel&CargoS/B105.CustomiseLinkExpressS/B106.Pro-OfficeBulkMailingS/B107.SundaWorldwideS/B108.J’MhellysCarrier(M)S/B109.PublicCourier(M)S/B110.Wan&ZulMarineSupply&ServicesS/B111.Dropzone(M)S/B112.AeroLineServicesS/B113.HangWangS/B

Content Applications Service Provider (CASP) Individual Licensee 31 December 2006

1. SistemTelevisyenMalaysiaBhd(TV3)2. NatsevenTVS/B(NTV7)3. MetropolitanTVSdnBhd(MetroVision)4. MaestraBroadcastS/B(MIXFM)&(ERA)5. MeasatRadioCommunicationsS/B (MY),(HITz)&(Light&Easy)6. SyncrosoundStudiosS/B(WowFM)7. KristalHartaS/B(CatsRadio)8. SuaraJohorS/B(Best104)9. STARRfmS/B(formerlyknownasRadio RediffusionS/B)(RfM)&(Redi.FM)10. RadioLebuhrayaS/B(THR)11. HusaNetworkS/B(ManisFM)12. InstitutKefahamanIslamMalaysia(Radio IKIM)

13. MalaysiaAirports(Sepang)S/B(Radio KLIA)14. RimakmurS/B15. PerfectExcellenceWavesS/B (transferredfromTitianSebaranS/B)16. MiTVCorporationS/B(licencetransferred fromGrafimatixS/B)17. CH-9MediaS/B(formerlyknownas MedanmasS/B)18. NetworkGuidanceS/B(FINENetwork)19. RadioWanitaBhd20. ISYHoldingsS/B

1�0

Appendix Five

List of MCMC Events and Press Releases in 2006Press Release in 2006Date Events11Jan 2LDSecondPublicConsultation24Jan FindingsoftheHandPhoneUsersSurvey200527Feb MCMClaunchesCompendiumonInformationNetworkSecurity17Mar MalaysiaatCommunicAsia20061Apr ProjekPemberianPerkhidmatanSejagatdidaerahSabakBernam,Selangor11May MCMCPublishesAnti-SpamToolkit12Jun 22DaerahdiSabahMendapatTalianTelefonMelaluiProjekPemberianPerkhidmatanSejagat20Jun MalaysiaatCommunicAsia200627Jun MCMCLaunchesRFRadiationWebsite17Jul MCMCBringsPrepaidRegistrationtoOfficeWorkersMobilePhoneUsersHaveupto15Decemberto RegisterorLoseLines19Jul 2.3GHzBroadbandWirelessAccessSpectrumTenderExercise19Jul PressReleaseon2.3GHzBroadbandWirelessAccessSpectrumTenderExercise11Aug FAQsonPrepaidRegistrationExerciseinMalaysia7Sep MCMCtoDeliverWelcomeAddressatAsia’sLargestNetworkSecurityEvent8Sep PrepaidRegistrationatPostOfficesFromMonday;EasySign-Upat650CountersNationwide25Nov MCMCFeaturesDigitalHomeExhibitinConjunctionWithWorldHabitatDay200620Dec MalaysiaatForefrontofICTWithKeyInternationalPositionsandAwards

Date Events 13Feb APTConferencePreparatoryGroupforWRC200717Feb APTWirelessForumInterimMeeting17Apr ASEAN-China2ndICTWeek8May AsiaPacificPostalUnion(APPU)Meeting

14Jun MalaysiaatCommunicAsia200628Jul CEO’sDialogueSession23Aug UpdatedFAQonDeterminationonAccessList(1of2005)andMandatoryStandardonAccess (2of2005)06Sep IndustryTalkonInformationNetworkSecurity06Sep NotificationonRadioAmateurExamination(RAE)2006-211Sep NotificationofConsumerSurvey26Sep Clarification:TenderfortheDesign,PlanandExecutionoftheQualityofServiceAssessmentonthe BroadbandServices30Oct AReportonaPublicInquiryontheMandatoryStandardonDigitalTerrestrialTelevision Broadcasting(DTTB)forFTAServiceinMalaysia31Oct MinisterialDeclarationonAmendmenttoStandardConditionsforApplicationServiceProviderClass License-RegistrationofEnd-UsersofPrepaidPublicCellularServices9Nov CommissionDeterminationontheMandatoryStandardforFTATransmissionofDigitalTerrestrial TelevisionService13Nov MCMCLectureSeries,Cyberjaya14Nov UpdatedTimelineforNationalPreparatoryWorkingGroup2007(NPWG-07)inPreparationforthe WorldRadiocommunicationConference2007(WRC-2007)20Nov MCMCPublishesNewSpectrumPlan20Nov GuidelinesonRegistrationofEnd-UsersofPrepaidPublicCellularServices21Nov NationalSpectrumManagementSeminar27Nov AnnouncementofNewNumberingandAddressingPlan29Nov SabahRegionalOfficeNationalBroadbandPlanExhibitionfrom2to3December200630Nov NationalSpectrumSeminar200630Nov Notification:HouseholdUseofInternetSurvey20065Dec CMAIndividualAnnualLicenceFeeCollectionProcess5Dec InvitationtoNPWGWorkingPartiesMemberstoParticipateasMalaysianDelegationtoAPG2007-04 MeetinginBangkok(8-12January2007)andCPM2007/02inGeneva28Dec IndustryTalkonCyberspaceSecurity28Dec RadioAmateurExamination(RAE)2006-2Results

Events in 2006

1�1

No. Meeting Venue

Appendix Six

List of MCMC International Events in 2006No. Meeting Venue

JICASeminaron“UniversalServiceFundinTelecommunications”

The12thJointTechnicalCommitteeMeetingbetweenMalaysiaandThailand

APT-ITUPrepMeetingforWorldTelecommunicationDevelopmentConference2006(WTDC-06)

770thFACSMABMeeting

SatelliteCoordinationMeetingwiththeAdministrationofIndonesia

3rdMeetingoftheAPTConferencePreparatoryGroupforWRC2007-3(APG2007-3)

771stFACSMABMeeting

InterimMeetingoftheAPTWirelessForum

5thATRCMRAJSCMeeting

APT-NAv6CenterJointWorkshop

IDA-MCMCBilateralExchange

Malaysia-USFreeTradeAgreementNegotiations

SatelliteCoordinationMeetingwiththeAdministrationofTurkey

WorldTelecommunicationDevelopmentConference2006(WTDC-06)

ITU-RWP4-9SMeetingonFrequencysharingbetweenfixed-satelliteserviceandthefixedservice

772ndFACSMABMeeting

JointMeasurementActivitiesbetweenIndonesia,MalaysiaandSingapore

GAC&ICANN

UPUPostalOperationsCouncil(POC)

APCERT&CNCERT2006AnnualConference

WTOServicesClusterMeeting

APT2ndPrepMeetingforITUPlenipotentiary2006

The5thMeetingoftheMalaysia-ThailandJointPermanentCommitteeontheCoordinationandAssignmentofFrequenciesalongtheCommonBorderAreas

2ndASEAN-ChinaICTWeek/MinisterialForum

ITUCouncil2006

773rdFACSMABMeeting

3rdFACSMABAnnualReviewMeeting

APECTEL33

ResolvingLandingRightsandSatelliteCoordinationMeetingbetweentheAdministrationofMalaysiaandIndonesia

19thMeetingofWorkingPartyonIMT-2000andsystemsbeyondIMT-2000

APPUSeminaronWTOIssues

APPUExecutiveCouncilMeeting

ITU-DandITU-TWorkshoponNextGenerationNetworksanditsemergingissueforAsiaandthePacific

ITUTASGroupMeeting

34thAICConference“PoliciesandTechnologiesinimplementingICTservices/networkconvergenceinAsia–SpecialfocusonNGN”

SecondSessionoftheRegionalRadiocommunicationConference(RRC-06)

AsianDevelopmentBank(ADB)CompetitionLawandPolicyRoundtable

MeetingoftheOECDWorkingPartyonInformationSecurityandPrivacy(WPISP)

APTPolicy&RegulatoryForum

SouthEastAsianExecutiveRoundtable

KualaLumpur

Nongkhai,Thailand

Bangkok,Thailand

VirtualMeeting

Jakarta,Indonesia

KualaLumpur

VirtualMeeting

KualaLumpur

Singapore

Langkawi,Malaysia

Singapore

WashingtonDC,USA

Turkey

Doha,Qatar

Geneva,Switzerland

Malaysia

Singapore

Wellington,NewZealand

Berne,Switzerland

Beijing,China

Geneva,Switzerland

Bangkok,Thailand

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

Penang,Malaysia

Penang,Malaysia

Geneva,Switzerland

Penang,Malaysia

Penang,Malaysia

Calgary,Canada

Jakarta,Indonesia

Biarritz,France

KualaLumpur

KualaLumpur

Hanoi,Vietnam

Tokyo,Japan

UbonRatchathani,Thailand

Geneva,Switzerland

NewDelhi,India

Seoul,RepublicofKorea

Macau,China

Singapore

23.

24.

25.

26.

27.

28.

29.

30.

31.

32.

33.

34.

35.

36.

37.

38.

39.

40.

1�2

No. Meeting Venue

AppendixSix

No. Meeting Venue

Malaysia-AustraliaFreeTradeAgreementTelecommunicationsande-CommerceWorkingGroupsIntersessionalMeeting

ICANNBoardMeeting

InternetGovernanceForumConsultation

WirelessBroadbandWorldForum

774thFACSMABMeeting

SeoulDigitalForum

ASEAN-AustralianDevelopmentCooperationProgramme(AADCP)–LegalInfrastructurefore-CommerceinASEAN

SpecialTELSOM

JointMeasurementActivitiesbetweenIndonesia,MalaysiaandSingapore(Phase3)

WiMAXAsia2006

WorldHealthOrganisation(WHO)11thInternationalAdvisoryCommittee(IAC)Meeting2006

TheSecondConsultativeMeetingforthePriorityIntegrationSectors(COPSII)


APTSymposiumonNetworkSecurity

TheEleventhASTAPForum

ITUWorkshopon“End-to-EndQoE/QoS”

IMBX/CommunicAsia2006

ITU-TStudyGroup3Meeting

775thFACSMABMeeting

GAC&ICANN

PreparatoryMeetingfor7thASEANTELSOM

DigitalCitiesConvention2006

ATRCWorkPlanImplementationMeetingsforCompetitionandNetworkSecurity

HighLevelConference:OrganisingthePostalMarketofTodayandTomorrow

3rdAPTPreparatoryMeetingforITUPlenipotentiary2006

TelecommunicationAdministrationWorkshopforASEANCountryOfficers

ASEANTelecommunicationsRegulators’Council(ATRC)WorkshoponNGN

APTAsiaPacificTelecommunicationandICTDevelopmentForum(ADF)

776thFACSMABMeeting


ATRCJSCMRAInterimMeeting

The26thAPTStudyGroupsMeeting

12thASEANTelecommunicationsRegulators’Council(ATRC)Meeting

JointUNCTAD-ITU-UNESCAPRegionalWorkshoponInformationSocietyMeasurementsinAsia-Pacific

APTWorkshoponMultilateralandBilateralTelecommunicationsTradeNegotiations

SatelliteCoordinationMeetingwiththeAdministrationofChina

3rdInternationalConferenceoftheAsiaPacificInternetResearchAlliance(APIRA)

ATRCWorkPlanCoordination

777thFACSMABMeeting

Workshopon“InformationSystemsSecurityforSystemAdministrationofASEANCountries”

ITUSeminaronQualityofServiceandConsumerProtection

Minister’sWorkingVisittotheUnitedKingdom

Penang,Malaysia

SantaMonica,USA

Geneva,Switzerland


VirtualMeeting


Manila,Philippines

Manila

Batam,Bintan&Karimun,Indonesia

HongKong

Geneva,Switzerland

Jakarta,Indonesia

Penang,Malaysia

Thailand

Thailand

Geneva,Switzerland

Singapore

Geneva,Switzerland

Singapore

Marrakech,Morocco

Cyberjaya

Taipei,Taiwan

Cyberjaya

Berne,Switzerland

Bangkok,Thailand

Wuhan,China

Jakarta,Indonesia

Chennai,India

VirtualMeeting

WashingtonD.C.,Malaysia

Singapore


Myanmar

Bangkok,Thailand

Bangkok,Thailand

Shanghai,China

Taipei,China

Singapore

BruneiDarussalam

NewDelhi,India

Geneva,Switzerland

UnitedKingdom

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.

81.

82.

1��

AppendixSix

No. Meeting Venue No. Meeting Venue

4thMeetingoftheJointCommitteeonCommunications(JCC)betweenRepublicofIndonesiaandMalaysia

6thTELMIN&7thTELSOM,TELSOMWGMeetings

InternationalInstituteofCommunications(IIC)RegulatorsForum

37thInternationalInstituteofCommunications(IIC)AnnualConference(SpeakingEngagement)

The30thSessionoftheAPTManagementCommittee

APECTELSecurityTrainingCoursebyKoreaCERT

4thFACSMABReviewMeeting

778thFACSMABMeeting

APTMeetingonBroadbandWireless/BroadcastinganditsApplication

APTWirelessForum

SatelliteCoordinationMeetingwithAdministrationofUnitedKingdom

ITUWP1A–SpectrumEngineeringTechniques

ITUWP1B–SpectrumManagementMethodologies

ITUWP1C–SpectrumMonitoring

UPUCouncilofAdministration

ITUFifthWorldTelecommunication/ICTIndicatorsMeeting&SpecialMeetinginITUStatisticalTeam

AIBDRegionalSeminaronPublicInterestandBroadcastingDevelopment:Regulation,Co-regulation,Self-regulation

3GSMWorldCongressAsia20062ndAnnualRegulatorsSymposium

Malaysia-PakistanFTA–3rdMeetingoftheSub-GrouponServices

WiMAXForumMemberConference

APECTEL34

779thFACSMABMeeting

CASBAAConvention2006Regulators’Roundtable

ICANNBoardWorkshop

InternetGovernanceForum

AnnualMeetingoftheABUTechnicalCommittee

ITUPlenipotentiary2006

2ndUNESCOWorkshop–IssuesofCommunicationandInformationatInternationalandRegionalLevel

ISOTechnicalCommitteeMeetingonInformationTechnology–SecurityTechniques

Seminaron“TelecommunicationsIndustryTransformation:TheUKModel”

UPUStrategyConference

MCMCStudyVisittoAustraliaandACMAInformationCommunicationsEntertainment(ICE)2006Conference

780thFACSMABMeeting

ASEMICTMinisterialMeeting

GAC&ICANN

ITU-RSpecialCommitteeMeeting

ITUTELECOMWorld2006

ASEANWorkshoponPublicDomainandContentDevelopment

SPAMWorkshopforCounteringSPAMCooperationAgenda(heldinconjunctionwithITUTelecomWorld2006)

ITU/ESCAPJointRegionalWorkshoponDisasterCommunications

781stFACSMABMeeting

Penang,Malaysia

BruneiDarussalam

Cyberjaya

KualaLumpur

Maldives

Seoul

BruneiDarussalam

BruneiDarussalam

Hanoi,Vietnam

Hanoi,Vietnam

Cyberjaya

Munich,Germany

Munich,Germany

Munich,Germany

Berne,Switzerland

Geneva,Switzerland

NewDelhi,India

Singapore

Islamabad,Pakistan

Seoul,Rep.ofKorea

Auckland,NewZealand

VirtualMeeting

HongKong

Sofia,Bulgaria

Athens,Greece

Beijing,China

Antalya,Turkey

KualaLumpur

Johannesburg,SouthAfrica

Putrajaya

Dubai,UAE

Sydney,MelbourneandCanberra

VirtualMeeting

Hanoi,Vietnam

SaoPaolo,Brazil

Geneva,Switzerland

HongKong

Manila,ThePhilippines

HongKong

Bangkok,Thailand

Singapore

83.

84.

85.

86.

87.

88.

89.

90.

91.

92.

93.

94.

95.

96.

97.

98.

99.

100.

101.

102.

103.

104.

105.

106.

107.

108.

109.

110.

111.

112.

113.

114.

115.

116.

117.

118.

119.

120.

121.

122.

123.

1��

Appendix Seven

FixedGSMCDMA,VSATFiber,ExtendedCopper,CDMA&VSATFiberOptic,ExtendedCopper,FiberOptic,ExtendedCopperFiber,ExtendedCopper,CDMACDMA,VSATCDMA,VSATFixedGSMFixedGSMFixedGSMFixedGSMVSAT,FiberOptic,ExtendedCopperVSAT,CDMAFixedGSMFixedGSMWirelessBroadbandAccess5.8GHzWirelessBroadbandAccess5.8GHzWirelessBroadbandAccess5.8GHzWirelessBroadbandAccess5.8GHzWirelessBroadbandAccess5.8GHzWirelessBroadbandAccess5.8GHzWirelessBroadbandAccess5.8GHzWirelessBroadbandAccess5.8GHzWirelessBroadbandAccess5.8GHzWirelessBroadbandAccess5.8GHzWirelessBroadbandAccess5.8GHzWirelessBroadbandAccess5.8GHzWirelessBroadbandAccess5.8GHzWirelessBroadbandAccess5.8GHzFixedGSMExist.FiberOptic,Ext.Copper&newCDMAFiberOptic&ExtendedCopper,CDMAFixedGSMExtendedCopperFiberOptic,ExtendedCopperExtendedCopperExtendedCopperFixedGSMFixedGSMWirelessBroadbandAccess(3.5GHz)WirelessBroadbandAccess(3.5GHz)FiberOpticFiberOpticFiberOptic

List of 89 Underserved Areas

YanJulauKinabatanganJeliBesutLipisSamarahanSriAmanKunakBeluranTongodKanowitNabawanPitasKeningauRanauBeaufortKotaBeludKotaMaruduKualaPenyuKudatLahadDatuPaparTenomSandakanSempornaSipitangTambunanTuaranTawauMersingKotaTinggiPontianSikBalingBandarBaharuPadangTerapPendangKualaKraiTanahMerahPasirMasPasirPutehBachokGuaMusangMachang

TechnologyServiceProvider

StateDistrictNo.

KedahSarawakSabahKelantanTerengganuPahangSarawakSarawakSabahSabahSabahSarawakSabahSabahSabahSabahSabahSabahSabahSabahSabahSabahSabahSabahSabahSabahSabahSabahSabahSabahJohorJohorJohorKedahKedahKedahKedahKedahKelantanKelantanKelantanKelantanKelantanKelantanKelantan

MaxisTMTMTMTMTMTMTMCelcomCelcomCelcomCelcomTMTMCelcomCelcomTTdotComTTdotComTTdotComTTdotComTTdotComTTdotComTTdotComTTdotComTTdotComTTdotComTTdotComTTdotComTTdotComTTdotComDiGiTMTMCelcomTMTMTMTMCelcomDiGieBTechnologieseBTechnologiesTMTMTM

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.

1��

AppendixSeven

List of 89 Underserved Areas

TumpatJasinAlorGajahJempolKuantanBentongBeraJerantutMaranPekanRompinPerakTengahHuluPerakBelagaDaroLubokAntuMeradongLunduBetongBintuluKapitLimbangMarudiMatuMukahSaratokSarikeiSerianSimunjanSongTatauLawasAsajayaBauDalatHuluSelangorKualaLangatKualaSelangorSabakBernamKemamanSetiuHuluTerengganuDungunMarang

TechnologyServiceProvider

StateDistrictNo.

KelantanMelakaMelakaNegeriSembilanPahangPahangPahangPahangPahangPahangPahangPerakPerakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSarawakSelangorSelangorSelangorSelangorTerengganuTerengganuTerengganuTerengganuTerengganu

TMDiGiTMCelcomDiGiTMTMTMTMTMTMeBTechnologiesTMBNasionComNasionComNasionComNasionComNasionComTMTMTMTMTMTMTMTMTMTMTMTMTMTTdotcomTMMaxisTMTMTMTMTMDiGieBTechnologiesNasionComTMTM

46.47.48.49.50.51.52.53.54.55.56.57.58.59.60.61.62.63.64.65.66.67.68.69.70.71.72.73.74.75.76.77.78.79.80.81.82.83.84.85.86.87.88.89.

FiberOpticFixedGSMFibreOptic,ExtendedCopperFixedGSMFixedGSMExtendedCopperSystem/CDMACDMA,Existingfiber/copperCDMA,FiberOpticCDMA,ExtendedcopperforpayphoneCDMA,ExistingNetworkforpayphoneExtendedCopperSystem/CDMAWirelessBroadbandAccess(3.5GHz)FiberOptic,ExtendedCopper,VSATSatellitePhoneSatellitePhoneSatellitePhoneSatellitePhoneSatellitePhoneCDMA,FiberOptic&ExtendedCopperCDMA,FiberOptic&ExtendedCopperCDMA,FiberOptic&ExtendedCopperCDMACDMAFibreOpticSystemCDMACDMACDMACDMA,FiberOptic&ExtendedCopperCDMA,FiberOptic&ExtendedCopperCDMA,FiberOptic&ExtendedCopperCDMAandExtendedCopperWBA5.8GHzCDMA,FiberOptic&ExtendedCopperFixedGSMCDMA,FiberOptic&ExtendedCopperExtendedCopperSystemExtendedCopperSystemExtendedExist.Fiber&CopperExtendedCopperSystemFixedGSMWirelesBroadbandAccess(3.5Ghz)SatellitePhoneFiberandExistingNetworkFiberOptic,ExtendedCopper

1��

List Of Figures

Fig.2.1SelectedEconomicIndicatorsFig.2.2GDPGrowthForecastsFig.2.3ConsumerPriceIndex&OvernightPolicyRateFig.2.4MIERConsumerSentiment&BusinessConditionsIndicesversusGDPGrowthFig.2.5GDPGrowthForecastsofMajorEconomiesFig.2.6C&MCompaniesMarketCapitalisation2006Fig.2.7MarketCapitalisation-C&MSectorversusBursaMalaysiaFig.2.8C&MCompaniesMarketCapitalisationFig.2.9C&MIndustryRevenueMarketShare2006Fig.2.10C&MIndustryRevenueBreakdownbySectors2006Fig.2.11TelecommunicationsSectorRevenue2005Fig.2.12TelecommunicationsSectorRevenue2006Fig.2.13TMRevenueversusOperatingProfitMargin2006Fig.2.14CelcomRevenueversusOperatingProfitMargin2005Fig.2.15TMRevenuebySegmentFig.2.16MaxisRevenuebyOperatingProfitMarginFig.2.17MaxisRevenuebySegmentFig.2.18DiGiRevenuebyOperatingProfitMarginFig.2.19DiGiRevenuebySegmentFig.2.20TimeRevenueandOperatingProfit/LossFig.2.21TimeRevenueandOperatingLoss1Q-4Q2006Fig.2.22MediaPrimaRevenueandOperatingMarginFig.2.23ASTRORevenueandOperatingMarginFig.2.24ASTRORevenuebySegmentFig.2.25PosMRevenueandOperatingMarginFig.2.26Top10CourierServicesCompanies2005Fig.2.27Top10CourierServicesCompaniesbyRevenueFig.2.28DigitalSignatureUsageFig.2.29DigitalSignatureGrowthFig.2.30DigitalCertificateRevenueFig.2.31MCMCLicenseesListedonMESDAQ2006Fig.2.32MCMCLicenseesListedonMESDAQ-RevenueFig.2.33AdexandGDPGrowthComparisonFig.2.34AdexMonth-To-Month2004-2006ComparisonFig.2.35AdexMarketShare2005and2006Fig.2.36AdvertisingRevenueofFTATVandRadioComparisonFig.2.37FTATVAdvertisingRevenueversusGrowthFig.2.38FTATVAdvertisingRevenue2004-2006Fig.2.39FTATVStationsRevenueGrowthFig.2.40RadioAdex2001-2006Fig.2.41RadioStationsAdvertisingRevenueMarketShare2005and2006Fig.2.42RadioAdvertisingRevenuebyStations2006Fig.2.43TopTenAdvertisingSectorsComparisonFig.2.44CommunicationsSectorAdvertisingbyMedium2006

1��

ListOfFigures

Fig.2.45CommunicationsSectorAdvertisingBreakdown2006Fig.2.46AdvertisementsbyMCMCLicensees2006Fig.3.1CommunicationsandMultimediaIndustry-RevenueversusGDPFig.3.2CommunicationsandMultimediaIndustry-RevenueversusGNPFig.3.3C&MIndustryRevenueGrowth:OverseasversusDomesticFig.3.4PercentageContributionToGroupRevenue:OverseasversusDomesticFig.3.5C&MRevenuebyServicesMarketSegmentFig.3.6FixedLineRevenueShare2005Fig.3.7FixedLineRevenueShare2006Fig.3.8DomesticCellularMobileRevenueShare2005Fig.3.9DomesticCellularMobileRevenueShare2006Fig.3.10Domestic&OverseasCellularMobileRevenueShare2005Fig.3.11Domestic&OverseasCellularMobileRevenueShare2006Fig.3.12ASTROSubscriptionandAdvertisingRevenueFY2004-2007Fig.3.13ASTROSubscriptionandAdvertisingRevenue1Q-3QFY2007Fig.3.14PosMPostal&RelatedServicesRevenue2004-2006Fig.3.15DELConnectionsResidentialversusBusiness(2004-2006)Fig.3.16DELConnectionsbyOperatorsFig.3.17FixedLineDemandandPenetrationRateFig.3.18CellularDemandandPenetrationRateFig.3.19CellularMobile-PrepaidandPost-paidMarketFig.3.20CellularMobile-PrepaidversusPost-paidGrowthFig.3.21CellularPhoneConnectionsbyServiceProvidersFig.3.22CellularPhoneSubscribersMarketShare2006Fig.3.23Internet(Dial-Up)andPenetrationRateFig.3.24InternetSubscribers,PCOwnershipandInternetDial-UpPenetrationFig.3.25BroadbandservicesFig.3.26MalaysianBroadbandSubcribersFig.3.27AsiaPacificBroadbandPenetrationbyPopulationFig.3.28AsiaPacificBroadbandPenetrationbyHouseholdFig.3.293GSubscribersFig.3.303GSubscribersbyServiceProviderFig.3.31Direct-To-HomePenetrationRateFig.3.32ASTROSubscribers&ChurnFig.3.33SACperSet-TopBoxSoldFig.3.34Country-AverageNo.ofLetterPostItemsPostedperInhabitantFig.3.35PostalTraffic-NumberofLettersPostItemsFig.3.36LetterTariffComparison-20gramsFig.3.37CommemorativeandSpecialStampsIssuesFig.3.38TotalNumberofAdvertisingItems-Domestic2005Fig.3.39AddressedAdvertisingItems-DomesticServices2005Fig.3.40MSCStatusCompaniesbyTechnologyCluster2006Fig.3.41MSCGlobalCompanies2006Fig.4.0NumberofLicencesIssuedorRegisteredbyMCMC

1��

ListOfFigures

Fig.4.1ASPClassLicenceFig.4.2IndividualLicenseesFig.4.3C&MIndustryLicenseesFig.4.4LicenceFeeCollectedFig.4.5TotalLicenceFeeFig.4.6IndustryDevelopmentExpenditureas%ofApplicableGrossAnnualTurnoverFig.4.7CompliancetoSubmissionofReportsforPeriodEnding30June2006Fig.4.8DeterminationNo.1-PublicSwitchedTelephoneNetworkServiceFig.4.9DeterminationNo.1-PublicSwitchedTelephoneNetworkServiceFig.4.10DeterminationNo.2-PublicCellularServiceFig.4.11DeterminationNo.3-Dial-upInternetAccessServiceFig.4.12DeterminationNo.4-ContentApplicationServicesFig.4.13DeterminationNo.3of2003-PublicPayphoneServiceFig.4.14DeterminationNo.4of2003-DigitalLeasedLineServiceFig.4.15DeterminationNo.5of2003-BroadbandAccessServiceFig.4.16PSTN-BillingComplaintsofBillsIssuedFig.4.17PSTN-ResolutionofBillingComplaintsFig.4.18PSTN-FulfillmentofInstallationOrdersFig.4.19PSTN-GeneralCustomerComplaintHandlingFig.4.20PCS-BillingComplaintsofBillsIssuedFig.4.21PCS-ResolutionofBillingComplaintsFig.4.22PCS-GeneralCustomerComplaintHandlingFig.4.23DIAS-BillingComplaintsofBillsIssuedFig.4.24DIAS-ResolutionofBillingComplaintsFig.4.25DIAS-GeneralCustomerComplaintHandlingFig.4.26CASP-AnnualServiceAvailabilityFig.4.27PublicPayphoneService-ServiceAvailabilityFig.4.28DigitalLeasedLine-AnnualServiceAvailabilityFig.4.29DigitalLeasedLine-FulfillmentofInstallationOrdersFig.4.30DigitalLeasedLine-FulfillmentofRestorationRequestFig.4.31BroadbandAccessService-FulfillmentofInstallationOrdersFig.4.32BroadbandAccessService-FulfillmentofRestorationRequestFig.4.33BroadbandAccessService-NetworkPerformanceFig.4.34Sections197,198and201CMAFig.4.35CommunicationsandMultimedia(Rates)Rules2002Fig.4.36ComplaintsReceivedin2006Fig.4.37No.ofTVStationsbyLanguageFig.4.38TypesofComplaintsin2006Fig.4.39NumberofComplaintsReceivedandResolvedFig.4.40NPWG-07ActivitiesFig.4.41IMT-2000SpectrumAssignedFig.4.42AARegistrationbyTypeFig.4.43TypesofApparatusAssignments(Services)Fig.4.44ExamplesofClassAssignment

1��

ListOfFigures

Fig.4.45InterferenceCasesbyLocation2006Fig.4.46No.ofCasesbyLocationFig.4.47InterferenceCasesbyMonth2006Fig.4.48GeneralAreasofRMSReplacement-PeninsularMalaysiaFig.4.49GeneralAreasofRMSReplacement-Sabah&SarawakFig.4.50EventsRequiringMCMCSpectrumInterferenceManagementin2006Fig.4.51Prefix014Fig.4.52NewNumberingPrefixesFig.4.53NumberingTypeFig.4.54CasesMCMCInvestigatedIn2006Fig.5.0MyICMS886CoreElementsFig.5.1NinthMalaysiaPlan:FocusforICTDevelopmentFig.5.2MyICMS886-ValueChainFig.5.3MyICMS886-Statusin2006Fig.5.4MyICMS886TargetsFig.5.5WC2-ContentandApplicationsMembersFig.5.6LicenseesundertheDSAFig.6.0CategoryofComplaintsFig.6.1MTSFB-11WorkingGroupsonVariousAreasFig.6.2CourierIndustryForumMembersFig.6.3PeninsularMalaysiaFig.6.4SarawakFig.6.5SabahFig.6.6USPRolloutGroup&StatusFig.6.7USPCompletionVisitFig.6.8USPProjectMonitoringExercisebyDistrictsFig.6.9USPInternationalConference/WorkshopsFig.6.10BroadbandinUSPFig.6.11UNIMASFig.6.12SampleofDigitalMappingofUniversalServiceSitesFig.6.13USPWeightageFactorandDesignatedServicesFig.6.14In-BuildingCoverageWalkTest:BuildingFig.6.15Time1-ProgressReportStatusFig.6.16Time2-ProgressReportStatusSummary-OverallSitesFig.6.17Time2-ProgressReportStatusDetail-OverallSitesFig.6.18Time2-StateBackedCompaniesFig.6.19CertifyingAgencyFig.6.20CAAchievementfor2006versus2005Fig.6.21SpectrumResearchPriorityAreasFig.6.22CreationandManagementofResearchProjectsFig.6.23SpectrumResearchFundandResource

1�0

Contact Us

MALAYSIAN COMMUNICATIONS AND MULTIMEDIA COMMISSION63000CyberjayaSelangor,MalaysiaTelephone: +60386888000Facsimile : +60386881000E-mail : [email protected] : www.mcmc.gov.my

Our Regional Offices are located at:

NORTHERN REGIONAL OFFICEUnit3,Level11MenaraUMNO128,JalanMacalister10400PenangTel :(604)2271657Fax:(604)2271650

EASTERN REGIONAL OFFICELevel2,BangunanTabungHajiJalanBukitUbi25200KuantanPahangTel :(609)5121100/1119Fax:(609)5157566

SOUTHERN REGIONAL OFFICESuite7A,Level7MenaraAnsarJalanTrus80000JohorBahruJohorTel :(607)2266700Fax:(607)2278700

SABAH REGIONAL OFFICE6-10-10,Tingkat10No.6,MenaraMAALorongApi-Api,Api-ApiCentre88000KotaKinabaluSabahTel :(6088)270550Fax:(6088)253205

SARAWAK REGIONAL OFFICELevel5(North),WismaSTA26,JalanDatukAbangAbdulRahim93450KuchingSarawakTel :(6082)331900Fax:(6082)331901

CENTRAL REGIONAL OFFICELevel17,WismaSunwayMas1,JalanTengkuAmpuanZabedahC9/CSection940100ShahAlamSelangorDarulEhsanTel :(603)55187701Fax:(603)55187710

© Malaysian Communications and Multimedia Commission 2007The 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, MCMC 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.

Malaysian Communications and Multimedia Commission63000 Cyberjaya, Selangor Darul Ehsan, Malaysia. Tel: +603 - 8688 8000 Fax: + 603 - 8688 1000Toll Free Numbers: 1-800-888-030 http://www.mcmc.gov.my

Concept, design and layout by: Versa Ads Sdn. Bhd. (498793-D)

© malaysian communications and multimedia commission … · contribution of c&m companies to...

Documents