Suruhanjaya Komunikasi dan Multimedia Malaysia,Off Persiaran Multimedia, 63000 Cyberjaya, Selangor Tel: 6 03 86 88 80 00 | Fax: 6 03 86 88 10 00 E-mail:
[email protected] | Web: www. skmm.gov.my | 1-800-888-030
ANNUAL REPORT Diversified culture, united towards communication excellence
000 Table of Contents
001 001 002 003 003 004 006 016 026 030
Statutory Requirement National Policy Objectives Vision/Mission Statement Core Values Clients’ Charter Chairman’s Message Commission Members Senior Directors A Snapshot of Statistics on Communications & Multimedia Activities
Speeding Up the Growth of ICT 01 034 036 037 037 037 038 038 042 044 045 048 051
Progress Report for Broadband (MyICMS 886) 2008 TM’s Undertakings Application of the Regulatory Framework for High-Speed Broadband Network Economic Indicators on Broadband’s Benefits to the Nation Indicators for Broadband Take-up Report on QoS Compliance on Broadband Services Managing Communications Infrastructure Promotion of Local Content Development and NCDG Establishment of R&D Initiatives Under Digital Home Implementation of U-Library Digital TV Mobile Number Portability (MNP)
Ensuring Communications 02 056 058 058 059
Integrity & Excellence
Categorisation Market Supervision Services’ Accessibility Implementation of WiMAX Services
Responding to New 03
Emerging Technologies
064
Spectrum Management Strategic Review (SMSR) 2007/2008 Spectrum Research Collaboration Spectrum Assignment and Management NASMOC and Spectrum Engineering and Interference Resolution Spectrum Co-ordination Numbering
066 072 081 081 085
Expanding Digital Reach 04 092 093 095
Nationwide Mobile Coverage: Time 1/Time 2 Projects Quality of Service Required Application Service (RAS)
095 096 097 099 100 100 101
Rates Monitoring SKMM Complaints Bureau Consumer Issues Prepaid Registration Phishing Network Security Centre Enforcement
Upholding National 05
Culture & Identity
106
Content Regulation
Channeling Equal Access 06
to ICT Services
112 112
USP Fund USP Projects in Bridging Digital Divide
Enhancing ICT Ethics 07
and Excellence
120 121 123 125
Consumer Forum’s Activities Content Forum’s Activities Report on Technical Standards Forum Report on Access Forum
Enhancing Postal 08
Services Standards
128
Postal Services
Accelerating Growth 09
Through Global Partnerships
132
International Affairs
Delivering Better Performance 10 for Greater Effectiveness
138 140
Human Capital Development IT Strategic Review
Building 1Malaysia Through 11 144
ICT Convergence Corporate Highlights
Maintaining Transparency 12
148
and Good Governance Governance and Audited Financial Statements
Statutory Requirement In accordance with Section 47 of the Malaysian Communications and Multimedia Commission Act 1998, the Malaysian Communications and Multimedia Commission hereby publishes a report that entails the activities of the Commission and has submitted it to the Minister of Information, Communications and Culture together with a copy of its Audited Financial Statements of the Malaysian Communications and Multimedia Commission Fund for the Year Ended 31 December 2008 to be laid before both Houses of Parliament. SKMM Annual RePort 2008
002 National Policy Objectives We shall endeavour to fulfill the 10 National Policy Objectives for the communications and multimedia industry as enunciated in the Communications and Multimedia Act 1998: 1. To establish Malaysia as a major global centre and hub for communications and multimedia information and content services; 2. To promote a civil society where information-based services will provide the basis of continuing enhancement to quality of work and life; 3. To grow and nurture local information resources and cultural representation that facilitate the national identity and global diversity; 4. To regulate for the long-term benefit of the end-user; 5. To promote a high level of consumer confidence in service delivery from the industry; 6. To ensure an equitable provision of affordable services over ubiquitous national infrastructure;
003 Vision To become a globally competitive, efficient and increasingly selfregulating communications and multimedia industry generating growth to meet the economic and social needs of Malaysia.
Mission We are committed to: a. Promoting access to communications and multimedia services; b. Ensuring consumers enjoy choice and a satisfactory level of services at affordable prices; c. Providing transparent regulatory processes to facilitate fair competition and efficiency in the industry; d. Ensuring best use of spectrum and number resources; and e. Consulting regularly with consumers and service providers and facilitating industry collaboration.
7. To create a robust application environment for end users; 8. To facilitate the efficient allocation of resources such as skilled labour, capital, knowledge and national assets;
Core Values
9. To promote the development of capabilities and skills within Malaysia’s convergence industries; and
• Authoritativeness • Integrity • Competence
10. To ensure information security and network reliability and integrity.
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Clients’ Charter Our undertaking to our clients are: General Consumers • Recording all complaints received • Acknowledgement to complainant within three working days • Forward complaint received to relevant service provider within five working days • Follow-up on status of complaint from service provider after 15 days
Assignment Applicants Apparatus Assignment (AA) • 60 days to process the AA application subject to the Licence Committee meeting, border co-ordination by FACSMAB, JTC and Trilateral (Malaysia, Singapore and Indonesia) meetings and approvals
Licencees • Promote fair competition and market development through transparent regulatory processes as outlined in the CMA 1998 • Provide resolutions to disputes when necessary • Promote effective regulation by monitoring all significant matters relating to the performance of its licencees and reporting to the Minister at the end of each financial year • Review the Rules & Regulation every three years or as and when directed by the Minister. This is to ensure that the Rules & Regulation remain relevant
Number Assignment • 30 days to process normal assignment applications e.g. PSTN Numbering Application • 45 days to process special assignments e.g. mobile, short codes
Licence Applicants • 60 days from receipt of complete application to process NFP, NSP and CASP licence applications and to recommend to the Minister for approval • 45 days from receipt of complete submission to process NFP and NSP class licence registrations • 30 days from receipt of complete submission to process ASP class licence registration SKMM Annual RePort 2008
006 Chairman’s Message
007 The Malaysian Communications and Multimedia Commission celebrates its 10th Anniversary on 2008 as the regulator of the communications and multimedia industry in Malaysia and the implementor of the Communications and Multimedia Act 1998-an Act which has played an integral role in the convergence of the communications and multimedia industry, as well as in the nation’s growth as a technologically-competent and economically-competitive nation. Overview of the Communications and Multimedia Industry in 2008 Key Growth Indicators in Communications and Multimedia Over the ten years since the Communications and Multimedia Act 1998 was implemented, the total gross revenue of this industry grew four times over, from RM12.0 billion in 1999 to RM40.8 billion as at the end of 2008. The revenue has contributed to 6.1% (2007 : 5.9%) of the total Gross Domestic Product (GDP) of the country and approximately 8.3% (2007 : 7.7%) of the Gross National Product for 2008. The industry has grown tremendously over the last ten years, with the value of the communications [and transportation] sub-sector growing almost 240% from 1999 to 2008, giving a compound average growth rate (CAGR) of 13.02% per annum.
Datuk Dr. Halim Shafie Chairman, Malaysian Communications and Multimedia Commission
Even during the apex of the world economic crisis and in a relatively volatile and variable market of 2008, the communications and multimedia industry was able to expand growth and achieve a market capitalisation of RM48.5 billion or 7.3% of the total Bursa Malaysia market capitalisation (2007 : RM69.5 billion or 6.7% (after delisting of Maxis from Bursa Malaysia Stock Exchange). No doubt the communications and multimedia industry is important for the nation’s growth, not only for the
investment and revenue it generates but also for the manufacture of goods and provision of services that it creates besides shaping the competitive landscape of a nation. Since the implementation of the Communications and Multimedia Act 1998’s regulatory framework, the communications and multimedia industry has achieved marked progress from many different aspects. Among those developments include the proliferation of a number of private-sector telecommunications, television and radio service providers. In the period of 2000 - 2001, 87 licences have been issued forth where 20 licences were network facilities provider, 19 were network service providers, 18 were content application service providers and 30 were application service providers. By the end of 2008, the number of licences issued has multiplied many times over - 79 network facilities provider, 86 network service providers, 23 content application service providers and 401 application service providers.
the ten-year period of convergence, this path towards cellular mobile connectivity continued at full speed as consumer demands changed towards mobility and multi-functionality of their telephones. In 2008, Mobile Number Portability (MNP), which is the ability to change one’s service provider without changing the number, also enhanced consumers’ choice over cellular mobile services available to them. Nationwide telephony coverage was also expanded to cover rural areas. In 2008, under the direction of the Minister to further expand cellular coverage nationwide, a new programme known as Time 3 was introduced, with the objective of increasing national population cellular coverage to 97% by 2010. The Time 3 programme is targeted at extreme rural areas and villages with a population density of below 80 persons per square kilometre. Key target areas include Felda, Felcra, plantations, Orang Asli settlements, new tourist spots and significant federal highways.
As evidenced by the value of the industry and number of licencees, this sector has indeed contributed to and facilitated the economic development of the country.
The announcement of the programme was made by the Minister during the opening of the USP Technology Symposium in Seremban on 12 June 2008.
Telephony Connectivity
Back in 1997, the total mobile phone subscribers was only 2.46 million which gave a modest mobile penetration rate of only 11%. In 2008, the cellular penetration rate rose many times over to 96.8%, comprising 27.6 million subscribers.
The gradual substitution of fixed-line telephone subscriptions by cellular mobile telephone subscriptions is an overriding trend in most countries which have a developed telephony infrastructure and network. Over
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Broadband Connectivity
Broadcasting in Malaysia
What have we achieved in terms of broadband connectivity within the ten years of convergence?
2008 marked a crucial turning point for the broadcasting industry in Malaysia with preparation towards digital television (TV) crossover.
Over the last six years, the number of broadband subscribers in Malaysia increased from 19,000 in 2002 to 1.4 million in 2008. In terms of household penetration, broadband increased two-fold from 11% in 2006 to 21.1% as end of 2008. Subscriber base has extended from simple voice and SMS services in the 1990s to the growth of more data services in the advent of 3G and increased wireless access through WiFi hotspots in the mid 2000s. The upward trend in statistics indicates that the increase in demand is driven by the public’s increasing awareness of the importance of access to broadband services. 2008 can be seen as a landmark year for the implementation of the National Broadband Plan. The strategy as proposed through the Cabinet Committee on Broadband (CCB) is for nationwide broadband implementation to achieve 50% household penetration by 2010. In May 2008, the Government announced details of the strategy to extend broadband penetration throughout the nation. The implementation covers two categories, with the first covering High Speed Broadband (HSBB) of selected areas of more than 10 Mbps and the second being Broadband for General Population (BBGP) with speeds of up to 2 Mbps. On 15 September 2008, the Government and Telekom Malaysia Berhad (TM) agreed to work jointly on the first category covering HSBB Project, and will be realised through a Public-Private Partnership (PPP) arrangement between the Government and TM. Hence, all systems are geared towards achieving the 50% household penetration target by 2010 and getting Malaysia connected.
vendors, and so on). The Government allocated a budget of RM1 million under the RMK-9 budget for the implementation of Projek Usahawan Pos Mini Luar Bandar (PUPMLB), intended for the rural areas. 105 suitable locations have been approved. 64 new mini post offices were successfully opened nationwide. 21 are operating in Felda settlements.
The current mode of TV and Radio broadcasting on terrestrial or free-to-air platform is still in analogue format and in line with the development of digital broadcasting around the world, the Government made a decision that digital terrestrial TV services be implemented in Malaysia beginning 2005 and set an analogue switch-off date of 2015. As a further commitment to promote digital TV broadcasting, the Digital Multimedia Broadcasting and Mobile TV agenda was placed as one of the areas in the MyICMS 886 incorporating goals outlined from 2006 to 2010. The goal is to achieve 95% household coverage for fixed reception and 90% of total mobile TV users by 2010. Additionally, the goal is to introduce Digital Audio Broadcasting services, beginning with the rollout of trials in 2006. Digital broadcasting provides not only the space within which new and leading-edge services can be developed, but more importantly, it has the potential to directly contribute to socio-economic development and the improvement of the quality of life of all Malaysians in line with the country’s National Policy Objectives on communications and multimedia. The traditional boundaries of broadcasting continue to blur as content is offered over both analogue and digital platforms. Malaysians have been enjoying digital TV and Radio services on a satellite platform through pay TV operator, Astro, since 1996. Besides the satellite platform, digital mobile TV broadcasting services have also been offered to subscribers on 3G platforms by several Telco players since 2005. During the year in review, the broadcasting sector
which comprises four free-to-air privately-owned TV stations under the Media Prima Berhad Group, two Government-owned free-to-air TV stations and one Direct-to-Home satellite TV operator, ASTRO in total had a combined revenue of RM3.8 billion as at end of 2008 as compared to RM3.3 billion in 2007, indicating a growth of 15.2% from last year. A major contributor of the broadcasting sector revenue is Advertising Expenditure (Adex) which grew from RM5.5 billion in 2007 to RM 5.8 billion in 2008, a growth of about 5.5%.
Postal and Courier Services The Post Office and Mail Delivery network is an essential infrastructure for economic growth whereas the courier and express delivery service industry plays a major role in providing the domestic and international connections crucial for business to develop, to serve various markets besides maintaining supplies. 2008 saw the Commission enforcing the mandatory performance service standard for domestic mail services with effect from 1 August 2008 in its efforts to improve the standard of services of mail delivery in terms of speed and reliability. The Post Office network is extensive and has expanded with more than 688 post offices and more than 6,300 postal channels (Pos Mini, postal agents, stamps
In 2008, the number of courier licencees increased to 113 from 109 and the industry is set to become more competitive as the players set to increase service level through business transformation and higher utilisation of technology. The Postal and Courier Services sector contributed about RM0.9 billion in 2008 towards the country’s GDP.
The Year 2008 in Review Organisational Transformation No doubt the landscape and ecosystem of the communications and multimedia industry have changed considerably over the last ten years of SKMM’s existence and implementation of the CMA 1998 regulatory framework. We are dealing with technology and services, and its very usefulness and existence is synonymous with change. The defining change factor for the communications and multimedia industry is the convergence of technology and services. It is with these dynamic characteristics of change and convergence that SKMM has embarked on an organisational transformation to meet the everchanging landscape of the industry. The change management programmes in 2008 endeavoured to break new grounds in providing SKMM with enhanced capacities and capabilities to deal with the challenges brought about by a dynamic and uncertain external environment. In particular, the Organisational Transformation initiatives that commenced
in 2007 continued in 2008 to improve the Commission’s ability to acquire, create, use and retain talents. The adoption of a Strategy Focused Organisation (SFO) as a principal theme for organisational capacity and capability development in 2008 successfully paved the way for a more deliberate management of Key Performance Indicators (KPIs), focusing on areas relevant to the core objectives of the Commission. The combined theme of the Strategy Focused Organisation (SFO) and Process Improvement would be the focus of the organisational development programmes of the Commission for 2009. These are supported by performance measurements tools such as the Balance Scorecard approach which guided us to view organisational performance from multiple dimensions, with emphasis on inter-linkages between strategy planners, decision-makers and strategy implementers. Just as how SKMM expects performance from its staff, it also recognises the need to nurture and develop its human capital. With this in mind, a centre of excellence in the form of the SKMM Academy was established with the aim of intensifying efforts in learning, training and enhancing expert capacity; thus to create a work force within SKMM that is authoritative, competent and admired by the industry.
Strengthening Corporate Governance For a regulatory body such as SKMM, governance is fundamental as its actions and decisions would have significant impact on the stakeholders. The principles of good governance is ingrained in the Malaysian Communications and Multimedia Commission Act (MCMCA) 1998 where the role and functions of SKMM are defined, whereas the Communications and Multimedia Act (CMA) 1998 establishes the framework for regulating the communications and multimedia sector. The principle of transparency which underpins good corporate governance is the hallmark of the regulatory
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governance, facilitate information sharing and contribute to industry development. Concurrently, it will also create an IT architecture framework process that is easy to manage and monitor as well as improve the quality, integrity and availability of SKMM’s data. Various deployment strategies and plans will be rolled out based on the proposed IT Strategic plan in various stages for 2009 and 2010. This is to ensure SKMM has an integrated Information Infrastructure, Enterprise Business Application and Knowledge Management that are all well connected and collaborated to meet SKMM’s vision and mission for the next five years.
Operational Relevance framework in the CMA 1998. The principle of openness is clearly embedded in the CMA 1998 such as public inquiry and consultation channels with the stakeholders on matters of significant interest to the public or licencees. The sound governance mechanism provided in the CMA 1998 is aimed to give confidence to the stakeholders in SKMM’s decisions and ensure that they have a full understanding of how SKMM implements Government policies and how these would contribute towards industry growth and consumer protection. Based on the Commission’s role, the need to maintain its operational independence and protect its reputation, SKMM subscribes to three basic values, namely authoritativeness, integrity and competence (AIC). Apart from strengthening its internal capacity through the process of transformation, we have also implemented an organisation-wide Integrity Plan and Client’s Charter to ensure that the principle of transparency cuts across all levels of the organisation. Internal controls were enhanced and improved upon through the set-up of an Internal Audit Department. The internal auditors, who report directly to the Internal
Audit Committee of the Commission, ensured that recommendations to improve internal audit controls were followed through by the Management. They will continue with their assessment of the sufficiency of the internal control systems from time to time based on the approved internal audit plan. All these are implemented with a view to enhance authoritativeness, ensure integrity and improve competency of SKMM in weathering the challenges of regulating the sector.
Broadband to the Nation With efforts at strengthening internal capacity and corporate governance through organisational transformation well underway, SKMM is focused and poised operationally to meet the 10 National Policy Objectives on communications and multimedia for the country.
In line with rapid technology advancement and to meet the dynamics of the communications and multimedia industry, which in itself focuses on the technology and the efficient delivery of services, we have mapped out an overall SKMM Information Technology/Information Systems (IT/IS) Strategic Plan Blueprint to support the vision and mission of SKMM.
It is apt that after ten years of convergence and after four years of its implementation, we revisit the underlying aims of MyICMS 886; the main blueprint for the progress of ICT in Malaysia. MyICMS 886 or the ‘Malaysian Information, Communications and Multimedia Services 886’ Plan was conceived in 2006 as a catalyst and strategy that would enhance the existing plans and programmes for the development and promotion of ICT in Malaysia. It is an initiative driven by the private sector and supported by a strong Government policy, regulatory and institutional framework support in its implementation.
The overall objectives of the IT/IS Strategic Plan are to provide a common and shared IT Enterprise Platform to enhance public service levels, support improved decision-making process, improve industry
The MyICMS 886 Strategy targets eight service areas to drive Malaysia in the provision of advanced information, communications and multimedia services. The introduction of the eight service areas, in turn, catalyses and promotes
Enhancing Organisational Efficiency
the development of eight essential infrastructures, both hard and soft. These new services and infrastructure are aimed at generating growth in six areas that have been identified as key for the consumers and businesses in Malaysia. The MyICMS 886 Strategy acts as the catalyst of development in those areas from 2006 until 2010. The availability and access to broadband which is implemented through the National Broadband Plan, is the main area of development under the MyICMS 886 Strategy. As mentioned before, the target proposed through the Cabinet Committee on Broadband, is to achieve 50% household penetration rate by the end of 2010. On 15 May 2008, the Government announced its twopronged plan of extending broadband penetration throughout the nation, namely the implementation of the High Speed Broadband (HSBB) which will deliver up to 10 Mbps to selected areas across the country, and Broadband to the General Population (BBGP) with speed up to 2 Mbps. Four months later, on 16 September 2008, the Government entered into a public-private partnership agreement with Telekom Malaysia Berhad (TM) for the implementation of the HSBB project. The total cost of the HSBB project is RM11.3 billion for the period of ten years, with the Government contributing RM2.4 billion for the first three years whilst TM has undertaken to invest RM8.9 billion during the ten-year duration. The HSBB project will cover the Klang Valley, industrial areas nationwide and the Iskandar Malaysia development area; in other words the high economic impact areas. The National Broadband Plan is implemented and monitored through the Integrated Project Management Office chaired by SKMM and which reports to the Steering Community on Broadband chaired by then Ministry of Energy, Water and Communications and from 2009 onwards by the Ministry of Information, Communications and Culture.
No doubt the benefits of having HSBB has now become a necessity rather than a luxury as the world becomes more connected through the Internet and economic transactions are done on-line. The country’s competitive edge depends on such high-speed delivery of connectivity. However, let us not forget the other thrust of the National Broadband Plan which will have far reaching consequences in meeting the 50% household penetration target; that is the BBGP plan that gives emphasis on the attractiveness and affordability of the general population to own broadband access in their homes. BBGP areas include underserved areas throughout the nation in terms of broadband access services and underserved groups within a community. BBGP areas on the Universal Service Provision (USP) areas and implementation with its main objective to bridge the digital divide between the ‘have’ and ‘have not’ communication and multimedia services areas. BBGP is not something new. We had drawn up a new framework for the implementation of BBGP under the National Broadband Plan since 2007 for underserved areas. The project involves implementation and set-up of an initial 85 Community Broadband Centres and 105 Community Broadband Library Centres across the country that are now fully operational and serving the respective communities where they are found. An additional 89 locations are in the process of implementation in 2009. More importantly, the BBGP projects have begun to bear fruit. We have received positive feedback in terms of its implementation and usefulness of the facilities to the community where each is located. To ensure effective usage of the facilities and avoid under utilisation, we have hired on-site full-time supervisors to run awareness and training programmes. In the long-term, SKMM is confident that this effort will help narrow the digital divide and encourage the growth of
a knowledge-based society throughout the nation as envisioned under the MyICMS 886 blueprint Apart from the BBGP initiatives implemented in the USP areas, SKMM also prioritised the provision of collective universal service access for basic telephony as well as Internet over individual access. This is to ensure that the target uneconomical areas are provided with communications services through means of widespread community access to such services. Throughout 2008, SKMM set its focus into developing broadband community access centres (or USP Broadband Community projects) where promotion, awareness, marketing, and ICT enrichment training on information and communications technologies (ICT) took place in support for social service delivery to deserving communities.
Content Development as a Catalyst for Broadband Take-up It is recognised that infrastructure deployment alone is not enough for the adoption of broadband. Content development is recognised as a critical success factor for broadband take-up under the National Broadband Plan; consumers and end-users are more interested in what broadband can deliver to them rather than the framework in which it operates. At the same time, it has generated excitement and entrepreneurship in the communications and multimedia industry. With such development and activities in mind, the Government approved the establishment of a National Content Development Fund or known as NCDG in short which was launched in 2007 with an initial start-up grant of RM20 million. At the end of 2008, the fund size was increased to RM50 million proving the Government’s commitment towards encouraging content entrepreneurship or ‘contentpreneurs’ who have the potential to participate and contribute to the growth of the nation’s economy.
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One of the objectives of the NCDG is to encourage and promote multiple platforms that use content using convergence technology or 360 degree content applications; that is technology that can be used on many different platforms and channels such as in theatres, television, computers and laptops and certainly on cellular mobile phones.
Focus on the Consumer At the same time that HSBB infrastructure is enhanced and deployed, and content and end-user applications are further developed, we have also turned our attention to the consumers of broadband to ensure that their rights are not neglected. The Mandatory Standards for Quality of Service (QoS) for Broadband Access Service is the instrument used to ensure compliance of service providers to minimum standards for broadband access service. It was enforced with effect from 1 January 2008 and consists of 14 standards of service requirements. Service providers are required to submit their network performance reports every six months to SKMM based on the QoS Mandatory Standards. As more broadband service providers enter the broadband service market and more services are offered, SKMM may then review and revise the QoS in consultation with relevant stakeholders, namely the consumers of broadband. SKMM also maintains a series of Mandatory Standards for Quality of Services with regards to services such as Cellular, Dial Up and PSTN. As at end December 2008, SKMM had finalised the submission of tenders to perform the assessments for Cellular, Broadband Dial Up and PSTN services by reputable consultants. The assessment exercise will be performed in 2009. Consumers’ interest and protection was also enhanced through the Communications and Multimedia Rates Rules 2002. Rate regulations are normally driven by consumer protection and economic reasons. In
In 2008, 4,289 complaints were received, this being almost double the 2,147 complaints received in 2007. The types of complaints ranged from poor service, connectivity or coverage, billing disputes, SMS scam or fraud, spam and unsubscribed mobile content, online, television, radio, SMS and e-mail content as well as radiation and telecommunication tower issues, and illegally-installed satellite television dishes.
markets that are characterised by the monopoly of a few players (oligopoly) such as in Malaysia, prices tend to be high and the supply of services and facilities can be controlled easily, resulting in bottlenecks in the upstream markets or downstream markets or both. As a result, service providers can price their products at prices above what would be set in a competitive market. The rate control mechanism is normally employed in the above situation to ensure rates or tariffs are not artificially inflated or do not contain excessive economic rents (price is above the price that would be set in a competitive market) and that prices charged are fair and reflect underlying costs. Telecommunications is a vital service for most organisations, whether engaged in services or manufacturing. Fair and low prices are considered necessary to ensure the competitiveness of economic activities in these sectors. In a globally-competitive environment, it is therefore imperative that the cost of telecommunications services is competitively priced so that local providers of services and products can compete with those in other countries. The Rates Rules 2002 sets out the prescribed level of rates to be charged for specified applications services. The rules covering the range of service charged and activities that comes under the Rates Rules 2002 including charges for Internet access services, as well as for telephony, cellular and data services. In 2008, service providers have complied with Section 197 of the CMA 1998, covering the rate setting and the requirement to publish rates, SKMM found that the service providers have made available the rates charged to its customer, normally on the websites, media advertisements, brochures and also through their customer service hotlines. One of the channels of consumer contact has been the SKMM Consumer Complaints Bureau (CCB) which acts as a focal point to deal with public complaints
regarding service providers’ offerings. Since it was launched in August 2007, the number of complaints received has increased tremendously. From early January 2008, CCB started using the Aduan SKMM on-line complaint management system to record and update status of complaints and reporting. The CCB provides several channels for consumers to lodge their complaints; a 1800 hotline number, email, letter, fax and even walk-in complaints handling. In May 2008, the Aduan SKMM complaint system “http://aduan.skmm.gov.my” was opened to the public for online submission of complaints. It has since become one of the main channels for the public to lodge complaints. In 2009, consumers would also be able to lodge complaints through short messaging system (SMS) through the cellular mobile phones. The CCB handles complaints and queries lodged by consumers with regard to the provision of the communications and multimedia services by the licencee service providers. It also serves as an additional channel for consumer complaints to be addressed complementing the existing consumer complaints mechanism implemented by the Consumer and Content Forum and the service providers respectively.
Based on analysis of the complaints received, several actions were identified to help improve consumer protection for communications and multimedia users and these are outlined in the Good Consumer Practice (GCP) guidelines that was launched and issued to the industry service providers through the Consumer Forum on 9 December 2008. All these combined with other Consumer Protection programmes such as the pre-paid mobile service registration, anti-phishing, enhancing 999 services and others. SKMM also receives complaints on offensive, obscene and misleading content through the CCB. All complaints are processed and evaluated against the CMA 1998, pertinent licence conditions, the Content Code and other regulations. In the case of Internet complaints, they are reviewed according to Section 233 of the CMA 1998, based on the nature of the content, evidence of intent and whether there are local elements in the content.
Complaints which do not fall within the ambit of the CMA 1998 are forwarded to the relevant authorities or agencies for further action. SKMM received a total of 259 complaints in 2008, a nearly three-fold increase from 95 complaints received in 2007. Complaints relating to Internet websites surged in 2008, representing 83% of total complaints for the year compared to 47% in 2007. One of the reasons for the increase was increased awareness initiatives undertaken by the Commission to publicise the complaints procedure. The new media especially the Internet is becoming more ubiquitous to the Malaysian culture as we become a connected society. New media content is a term that refers broadly to content that can be accessed through channels other than the traditional mediums of television and radio. The falling costs of accessing the Internet, affordability together with an increase in broadband penetration, a plethora of devices have collectively accelerated the development and consumption of new media content.
launched in April 2008 and embarked on its maiden projects with four private and public universities. The programme is open to all private and public local universities and the process of award of research grants will be conducted annually. The development of new media services and online media has prompted a shift in media regulation. The proliferation of social media online has provided amateurs and end-users with the facilities and tools to create their own content, so much so that social media and user-generated content are ever advancing its share of Internet traffic, globally. Traditional statutory regulation and its legal framework, especially in its practical application, is no longer able to adequately take on the tasks of ensuring consumer protection and quality of content. In recognition of this, SKMM realises that the public must be involved in efforts to regulate content and content applications services effectively. Self-regulation has become a vital component in its regulatory approach, co-existing and complementary to statutory regulation.
Strengthening Enforcement Whilst we are keen to promote a connected society and a healthy on-line lifestyle that will eventually contribute towards a higher penetration in broadband, there is widespread concern regarding the social impact of the online environment and the mobile lifestyle. Of particular concern is the quality of content that is being accessed and the need to protect the young generation from such offensive or prohibited content. Towards a better understanding of new media, SKMM established the Research Collaboration on New Media Content between SKMM and Institutions of Higher Learning. Research information will provide the Commission with valuable information and insight for the formulation of strategies and policies for effective development and regulation of new media content. The Research Collaboration programme was
SKMM’s constant monitoring has contributed towards the increase of more effective enforcement action. This helps ensure the rights of the licencees, investors, consumers and the public are always protected and the confidence in the communications and multimedia industry are maintained at all times. In 2008, 403 cases were investigated by SKMM for various offences under the CMA 1998, three cases under PSA 1991 and two cases under DSA 1997. Of the 408 cases investigated, 188 were non-compliance cases committed by the licencees. 23 offenders were charged in court and 107 were offered compounds amounting to RM1,498,600 for various offences committed. Aside from enforcement actions, in 2008, SKMM with the co-operation of the major licencees successfully
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organised seminars for their employees with the objective of educating staff on compliance issues, CMA 1998 and the relevant Regulations and to ensure all the compliance issues are adhered to. In addition, it is hoped that this would promote selfregulation and better compliance by the licencees in accordance to the law. Approximately 700 employees attended the seminar and speakers from SKMM were also invited during the seminar.
Choice for the Consumer, Competition for the Providers In April 2008, SKMM commenced the review of the Access List and Mandatory Standard on Access, and conducted preliminary discussions with the stakeholders of the communications and multimedia industry. On 25 September 2008, SKMM issued the Public Inquiry Paper in accordance with Sections 55(2), 55(4), 59 and 61 of the Communications and Multimedia Act (CMA) 1998 to seek public opinion. SKMM also conducted two public hearings wherein the public were able to seek clarification on issues raised in the Public Inquiry Paper. Subsequently, SKMM published the Public Inquiry Report on 21 December 2008, followed by issuance of two determinations, namely the Access List and the Mandatory Standard on Access on 5 January 2009. In undertaking this review, SKMM began by examining the competitiveness of the seven markets within the communications and multimedia industry, covering fixed telephony, mobile telephony, upstream network elements, interconnection, leased lines, broadcasting transmission and broadband markets. Thereafter, SKMM determined the facilities and services on the Access List to ensure end-users’ long-term benefits. Consistent with the Government’s objective to increase broadband penetration in Malaysia, an important focus
of this review is on stimulating the level of competition in the broadband market. In this, SKMM adopted a forward-looking approach and considered the newer technological developments such as the high-speed broadband network and WiMAX. In considering the high-speed broadband network, SKMM ensured that the review is consistent with the regulatory framework to be applied to the TM HSBB as stated in the Ministerial Direction on HSBB and Access List. As a result of considering all relevant factors stated in the Ministerial Direction on HSBB and Access List, two new services, High Speed Broadband Network Services with Quality of Service and High-Speed Broadband without Quality of Service, were included in the Access List. In addition, SKMM also implemented Full Access, Sub-loop, Line Sharing and Bitstream Services (collectively also known as Unbundling of Local Loop in other jurisdictions) on the copper network, in areas where the high-speed broadband network is not deployed. This would enable other service providers to access the copper network in order to provide competitive broadband services to their customers.
period, MNP was then launched nationwide on 15 October 2008 and all limits on port-in numbers and restrictions on locations were lifted.
Cybersecurity in the Age of Connectivity An integral part of our efforts at consumer protection is in the area of cybersecurity. The Internet has shifted key financial and personal information into the hands of the consumers. Almost everything can be done on the Internet with much ease, for instance buying and selling, banking, social networking and many other activities. However, much like the real world, criminal elements do lurk on the Internet. Cyber threats have been on the rise and they come in many forms and disguise, and what’s even more alarming, also getting more organised. The message is clear that concerted and collective efforts at national, regional and international levels are required to deter such criminal acts that are costly to both consumers and businesses. In Malaysia, a cyber security monitoring centre was set up to increase vigilance over the networks.
With the completion of this review, SKMM envisages that competition will be promoted in the wholesale market which will eventually benefit end-users in the form of lower prices, better quality of services and a more attractive range of products and services. Not only is market competition encouraged and developed through licensing and access to market for the sake of consumer choice but competition is also encouraged through the change of service ecosystem namely the implementation of Mobile Number Portability (MNP). Upon completion of the MNP Test Phase, SKMM commenced the Launch Phase for MNP with a Limited Live Trial (LLT) from 29 August to 14 October 2008 before going live nationwide. After a successful LLT
SKMM, in line with the Tenth National Policy Objective to ensure reliable and secure network, has taken on the responsibility to create a proactive platform that will be able to disseminate early warnings to its stakeholders, critical network information infrastructure and the public on possible threats through the SKMM Network Security Centre (SNSC) Project. The SNSC has been established to monitor malicious payloads and cyber attack signatures over the Malaysian Internet traffic. Any detection of such threats would be
followed by advisories to all critical network information infrastructure owners and further assistance to mitigate the threats. SKMM has successfully completed the first phase of the SNSC project, involving seven major ISPs. We recognise that ISPs, being the owners of networks in Malaysia, collectively form the Malaysian Internet. They are the heart beat of the Malaysian Internet as they interconnect the Malaysian public and private networks with the global networks. The future phases of the NSC project will include other smaller ISPs, other critical information infrastructure and existing cyber security agencies. The SNSC will conduct periodic cyber exercises with external entities to continuously revise its policies and ensure the readiness of our nation’s networks in dealing with cyber threats. Also, in efforts to enhance the country’s capability to withstand cyber threats, SKMM hosted the inaugural IMPACT World Cyber Security Summit (IMPACT WCSS), held in Kuala Lumpur from 20 to 22 May 2008. This was the largest ministerial forum ever organised on cyber security threats, which saw a gathering of ministers, industry leaders, technology luminaries and cyber security experts from 27 countries including Australia, Canada, India, Japan, Mexico, Saudi Arabia, Singapore, South Korea, Thailand and the United States. The IMPACT WCSS included the inaugural meeting of the IMPACT International Advisory Board, a ministerial round-table, and plenary sessions and indepth discussions on the latest cyber security threats, trends and issues facing countries. The Summit was officiated by the former Prime Minister YAB Tun Abdullah Ahmad Badawi, who delivered the keynote address. Dr Hamadoun Toure, the SecretaryGeneral of the ITU also delivered his address during the opening ceremony. The goal of the inaugural summit was to chart the
direction of the IMPACT as a global multilateral collaborative platform for a joint partnership between governments and the private sector to combat cyber security threats. Part of the effort will include the establishment of an “early warning” system i.e., the IMPACT Centre for Global Response which will facilitate swift identification and sharing of information with member-governments during cyber security emergency and threats. It is envisioned that this system will actively monitor threats and be a focal point for governments during any cyber security incidences. The Centre will also play an important role in policy formulation, international cooperation as well as become a centre for training and promulgation of cyber security best practices.
International Participation Besides the IMPACT WCSS which stands to leapfrog Malaysia’s involvement in efforts against cyber terrorism, SKMM also takes an active and pro-active role in international affairs with communications and multimedia stakeholders. SKMM’s international activities are, first and foremost, guided by the CMA 1998, in particular the first National Policy Objective to facilitate the transformation of Malaysia into an industry global hub. In planning and organising international engagements and activities, SKMM is cognisant of the global communications and multimedia scenario, especially the need to create resiliency in the industry during the global economic slowdown and to ensure that the country’s needs are met. SKMM engages with various international organisations listed in a Ministerial Direction issued under Section 269 of the CMA 1998. Working in close partnership with the Ministry of Energy, Water and Communications (KTAK), SKMM represents Malaysia as the regulatory authority in communications and multimedia while at the same time building and co-ordinating Malaysia’s International profile and activities in this industry.
Furthermore, SKMM collaborates with its various counterparts both regionally and internationally to enhance regulatory measures and practices towards mutual industry competitiveness and growth, facilitate inbound and outbound investments and trade, as well as to develop network and human resource capabilities in communications and multimedia applications and transactions. These various engagements serve to create cross-border industry alliances and smart partnerships for the growth of the industry. Consequently, SKMM is also involved in various bilateral and multilateral negotiations such as Free Trade Agreements and Economic Partnership Agreements with our trade partners, which is led by Ministries of Foreign Affairs and International Trade and Industry.
Fast Forward 2009 As we peek into 2009, we will see the slowdown in growth for the communications and multimedia industry in tandem with the global economic downturn. However, I am confident that the industry will still act as a major catalyst and contributor towards increasing the competitiveness of the country in the future. What is in store for us in the next decade? The foundations have been set, the progressive build-up is on its way and it is up to the current and future visionaries and workforce to lead the way for the industry to realise its full potential.
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Commission Members
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Commission Members
Datuk Dr. Halim Shafie was appointed as Chairman of the Malaysian Communications and Multimedia Commission (SKMM) on 1 April 2006.
Tan Sri Datuk C. Rajandram
Datuk Dr. Halim obtained a Bachelor of Economics (Hons.) from the University of Malaya (1972), Masters in Public and International Affairs from the University of Pittsburgh, USA (1980) and a Doctorate in Information Transfer from Syracuse University, USA (1988). He also attended the Advanced Management Programme at the Harvard Business School, USA, in 2000.
is currently the Executive Deputy Chairman of Rating Agency Malaysia Holdings Berhad (RAM). Prior to assuming the lead position to start up Malaysia’s first credit rating agency, he had held various positions with Bank Negara Malaysia from 1962 until 1991.
Datuk Dr. Halim has held several positions in the Government sector, including serving as Assistant Secretary at the Ministry of Education. He served as Programme Coordinator for the National Computer Training Center at the National Institute Public Administration (INTAN), and as Director of the Information Technology Division of the Malaysian Administration Modernisation and Management Planning Unit (MAMPU) in the Prime Minister’s Department. Datuk Dr. Halim went on to serve as the Director of INTAN before being appointed Deputy Secretary-General to the Ministry of Energy, Communications and Multimedia, in 1999. He was subsequently appointed as Secretary-General to the Ministry of Energy, Water and Communications, from November 2000 till March 2006 immediately prior to his current position as Chairman of SKMM.
He was seconded to the Ministry of Finance from June 1986 to April 1991 as the Director of a special unit for monitoring and restructuring Government owned companies. From August 1998 to July 2001, Tan Sri Datuk C. Rajandram was the Chairman of the Corporate Debt Restructuring Committee (CDRC), one of the three institutions set up by the Government following the 1997 Asian financial crisis. He is a Fellow of the Certified Public Accountants, Australia (FCPA), Member of the Australian Society of Cost Accountants, Associate Member of the Australian Institute of Bankers, Member of the Malaysia Certified Public Accountants (MACPA) and Fellow of Bankers Institution of Malaysia (FBIM). Tan Sri Datuk C. Rajandram was appointed as a Commission Member on 1 December 2002 and is currently serving his third term as a Commission Member.
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Commission Members
Dato’ Dr. Halim bin Man is currently the Secretary-General of the Ministry of Energy, Green Technology and Water. His career in the Government spanned more than 30 years. He began his career as a civil servant with the Ministry of Home Affairs in 1977. He had served the National Institute of Public Administration (INTAN) in various capacities for about 16 years, during which he gained vast experience in training and human capital development. In 1999, he was entrusted by the Government to establish and lead INTAN North East Sarawak Campus. During the stint at INTAN, he had also been appointed as a Consultant to develop training programmes in Brunei Darussalam, Zimbabwe, Namibia and many others. In 2002, he was conferred the Eisenhower Fellowships, USA. Due to his vast experience and knowledge in the field of leadership, management and training, he was seconded as the Registrar of the University of Malaya in January 2003. In 2004, Dato’ Dr. Halim bin Man was appointed as the Deputy Secretary-General of the Ministry of Energy, Water and Communications and subsequently, in 2006, he was promoted to be the Secretary-General of the same ministry which is now known as the Ministry of Energy, Green Technology and Water.
Datuk Dr. Abdul Samad bin Haji Alias
Dato’ Dr. Halim bin Man is an Exco Member of the Eisenhower Fellowships Association Malaysia. He is also a board member of Bank Simpanan Nasional, Telekom Smart School, GITN Sdn. Bhd. Malaysia-Thailand Joint Authority, Multimedia Development Corporation and Water Asset Management Company Berhad.
is a Fellow of the Institute of Chartered Accountants in Australia. He has extensive experience in auditing and accounting. He is currently Chairman of Bank Pembangunan (M) Bhd, Chairman of Malaysia Venture Capital Management Berhad and Chairman of Malaysia Debt Venture Berhad. He is a Board Member of Lembaga Tabung Haji, Malaysia Deposit Insurance Corporation, Perbadanan Kemajuan Iktisad Negeri Kelantan, Felda Holdings Berhad and TH Plantations Berhad. He is also a member of the Malaysian Institute of Certified Public Accountants and the Malaysian Institute of Accountants. In 2006, Datuk Dr. Abdul Samad received global recognition through the Association of Chartered Certified Accountants’ Award for Achievement in Asia.
Dato’ Dr. Halim bin Man was appointed as a Commission Member representing the Government on 1 September 2007 and is currently serving his second term.
Datuk Dr. Abdul Samad bin Haji Alias was appointed as a Commission Member on 1 October 2007.
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Commission Members
Dato’ Dr. Gan Khuan Poh is currently the Chairman of Lintramax (M) Sdn Bhd and Silver Bird Group Berhad and sits on the Board of Directors of Prudential Assurance Malaysia Berhad, Time Engineering Berhad and DagangNet Technologies Sdn Bhd. He is also a member of the Executive Council of the Malaysian Economic Association after being the immediate past President of the Association, a member of the Tenaga National Berhad Economic Council and the Senior Economic Research Fellow of the Asian Strategic and Leadership Institute. He served in the public service as an Administrative and Diplomatic Service Officer at various positions from the District level to the Federal Government especially in the Prime Minister’s Department, at the Development Administration Unit, the Implementation Co-ordination Unit and the Economic Planning Unit (EPU) before retiring as the Senior Director responsible for Macroeconomics in the EPU. Then he became the Group Managing Director of the Pilecon Group of Companies. He joined Universiti Kebangsaan Malaysia as a Professor holding the post of a Senior Fellow of Institut Kajian Malaysia dan Antarabangsa (IKMAS). He holds a Ph.D.(Economics) and an M.A.(Economics) from Duke University, USA, a M.B.A.(Finance) from Cornell University, USA and B.A.(Honours) in Business Economics from University Malaya. Dato’ Dr. Gan Khuan Poh was appointed as a Commission Member on 1 April 2002 and is currently serving his fourth term.
Encik Mohamed Sharil bin Mohamed Tarmizi was appointed as Chief Operating Officer (COO) of the Malaysian Communications and Multimedia Commission (SKMM) on 16 June 2008. Encik Mohamed Sharil brings with him a considerable number of years of experience in the legal field, communications and multimedia industry, as well as experience in the financial advisory and strategy consulting areas. Encik Mohamed Sharil was the Executive Director and Head of Strategy in BinaFikir Sdn Bhd, a financial advisory and strategy consulting firm, prior to being invited to join SKMM as the COO. He first joined SKMM in May 2000 and left for BinaFikir after serving SKMM for a period of six years. His last position in SKMM was the General Manager and Senior Advisor in the Office of the Chairman. In the international arena, Encik Mohamed Sharil has worked closely with the main international organisations in the Internet field, such as the Internet Corporation of Assigned Names and Numbers (ICANN), where he was the immediate past Chairman of the Government Advisory Committee (GAC) and a board member of ICANN for 4 years. Encik Mohamed Sharil holds a Bachelor’s Degree in Law from University College of Wales, Aberystwyth and qualified as a Barrister from Gray’s Inn, England and Wales (UK). In recognition of his in-depth knowledge of the communications and multimedia sector both locally and globally, he was appointed as a Commission Member of SKMM from 1 May 2006 and he continues to serve as a Commission Member to date.
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Commission Members
Datuk Idris Abdullah holds a First Class LLB (Hons) degree from the University of Malaya. Datuk Idris Abdullah is a Senior Partner of Idris and Company Advocates since 1989, a Sarawak -based legal firm. He began his career in 1981 as a resident lawyer at Ting and Company Advocates in Sibu, Sarawak. Between 1982 and 1985, he served as an in-house Legal Advisor to a Sarawakian Group of Companies with diverse business interests. During his tenure, he was also involved in advising the group’s activities in human capital development, corporate affairs and corporate finance. Datuk Idris Abdullah was also a shareholder of many Bumiputra companies based in Sibu, Sarawak. He was appointed a Director and the Chairman of Kuantan Flourmills Bhd, from October 2002 until September 2005. He is also an advisor to some Sarawak companies involved in construction and building, motor vehicle trading, recreation club and education. Currently, he is the Chairman/ Director of Magnus Energy Group Ltd., which is listed in the Republic of Singapore, with interests in oil and gas in China and Australia, and development of coal mining activities in Indonesia. Datuk Idris is also a Member of the Companies Commission, having been reappointed a third term on 16 April 2009. As an active Member of the Companies Commission, Datuk Idris has been appointed a Member of the Audit Committee and Member of the advisory panel of the Companies Commission Training Academy (COMTRAC). Datuk Idris Abdullah was appointed as a Commission Member on 26 May 2008.
Datuk Mohd. Zain Mohd Dom holds a Bachelor’s degree in Sociology. He started his career in the diplomatic service in 1976 and has, amongst others, held the positions of Assistant Under Secretary and Principal Assistant Director of the International Trade Division, Assistant Permanent Malaysian Representative to Geneva and Deputy Permanent Representative to the United Nations, Geneva (International Trade Division). Other notable appointments include being the Minister Counsellor for Economic Affairs of both the Malaysian Permanent Representative Office to the European Union (EU), Brussels and the Malaysian Permanent Representative Office to the World Trade Organisation (WTO), Geneva. He was the Lead Negotiator for the Malaysia-Australia Free Trade Agreement (FTA), the Malaysia-New Zealand FTA as well as the ASEAN-Australia-New Zealand FTA negotiations in 2005 and 2006. Datuk Mohd. Zain was appointed as the Secretary-General of the Ministry of Domestic Trade and Consumer Affairs on 6 February 2007. He was appointed Chairman of the Companies Commission of Malaysia on 1 March 2007. He is a Member of MyIPO Board since 6 February 2007. Datuk Mohd. Zain was appointed as a Commission Member on 1 January 2008.
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Senior Directors
Zamani Zakariah Senior Director, MyICMS
Dato’ Jailani Johari Senior Director, Universal Service Provision
Toh Swee Hoe
Senior Director, Research & Planning
Mohd Aris Bernawi
Senior Director, Resource Assignment & Management
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Senior Directors
Amarjit Singh
Senior Director, Content, Consumer, Network Security and Postal
Ruzlan Zabidi
Senior Director, Management Services
Mohd Ali Hanafiah
Senior Director, Technology, Standards and Network
Tengku Zaib Raja Ahmad Senior Director, Human Capital Management
Nik Abdul Aziz Nik Yaacob
Senior Director, Strategic Information System
Laila Hassan
Acting Senior Director, Licensing & Economic Regulations
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A Snapshot of Statistics on Communications & Multimedia Activities 1) C&M Revenue Market Share by Sector Communications and Multimedia Revenue Market Share by Sector 2008
Percentage Share of Household User Base (%) 98.6
100 85.1 74.1
80
72.3
56.5
60 43.9
40
30.8
36.9
21.8
20 0 Major Telcos RM35.5 billion (87%)
6) Percentage of Internet Users per Household by Age Groups
120
Pos Malaysia RM0.9 billion (2%) Others RM0.6 billion (2%) Penetration Rate (%)
Broadcasting RM3.8 billion (9%)
3) Cellular Mobile Penetration Rate (1997-2008)
9.7
12.0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Age Category
2005
2006
2008
Below 15
6.5
7.3
6.8
15 - 19
18.6
18.7
17.9
20 - 24
17.2
16.3
15.7
25 - 29
12.5
11.3
11.9
30 - 34
12.2
12.3
11.7
35 - 39
9.9
10.4
11.2
40 - 44
9.6
10.6
9.3
45 - 49
5.1
6.1
6.1
50 and above
8.4
7.1
9.4
Source: SKMM Household Use of Internet Survey 2008
Source: Industry, SKMM Cellular Mobile Penetration Rate
Source: IPR 2008
7) Percentage of Household Use of Internet by Activities
Total Subscribers (million)
20
15 10
4.2
Age
25
4.4 4.3
5 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: IPR 2008
Percentage Share of Handphone User Base (%)
Internet Usage
2005
2006
2008
2005
2006
2007
2008
For getting information
40.5
84.5
94.4
Pre teens & teens (up to 19)
13.1
20.5
20.9
24.4
Communications by text
99.6
80.7
84.7
Adults (20-49)
78.2
66.8
66.8
62.5
Leisure
47.1
52.7
63.5
Seniors (50+)
8.7
12.6
12.3
13.1
Education
46.8
45.9
64.5
Financial activities
14.6
23.6
31.8
Public services
12.7
12
29.2
e-Government transactions*
-
-
19.8
Online stock trading*
-
-
5.9
1.3
0.2
0.7
Source: SKMM Handphone Users Survey (HPUS) 2008 5) Percentage of Users Accessing Internet through Mobile Age
Percentage Share of Handphone User Base (%) 2006
2007
2008
Yes
18.4
13.7
11.5
No
81.6
86.3
88.5
4.1 4
Percentage Share of Household User Base (%)
4) Mobile Subscriber Base by Age Group
Percentage Rate (%)
2) Fixed Line Demand and Penetration Rate 4.8 Fixed Line Demand Penetration Rate 4.7 19.7 19.7 19.6 19.5 18.8 18.1 4.6 17.2 16.6 16.1 15.8 15.3 4.5
Others
*Not canvassed in 2005 and 2006 survey Source: SKMM Household Use of Internet Survey 2008
Source: SKMM Handphone Users Survey (HPUS) 2008
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ICT has become an essential part of our lives. We rely more and more on its applications in so many facets of our daily life, more so at work and how we do business. To meet with this ever-growing dependence on ICT, it is vital that we keep in tandem with its applications so as to accelerate its penetration and usage within an even wider growing base offering enhanced technology with faster access.
01 Speeding Up the Growth of ICT 034 036 037 037 037 038 038 042 044 045 048 051
Progress Report for Broadband (MyICMS 886) 2008 TM’s Undertakings Application of the Regulatory Framework for High-Speed Broadband Network Economic Indicators on Broadband’s Benefits to the Nation Indicators for Broadband Take-up Report on QoS Compliance on Broadband Services Managing Communications Infrastructure Promotion of Local Content Development and NCDG Establishment of R&D Initiatives Under Digital Home Implementation of U-Library Digital TV Mobile Number Portability (MNP)
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Speeding Up the Growth of ICT
Progress Report for Broadband (MyICMS 886) 2008 High Speed Broadband (HSBB) The strategy for the nationwide broadband implementation to achieve 50% household penetration by the end of 2010 was proposed through the Cabinet Committee on Broadband (CCB) chaired by the Honourable Deputy Prime Minister. On 15 May 2008, the Government announced details of the strategy to extend broadband penetration throughout the nation. The implementation covers two categories, with the first being High Speed Broadband (HSBB) for selected areas delivering more than 10 Mbps and the second is Broadband to the General Population (BBGP) with speeds of up to 2 Mbps. On 16 September 2008, the Government and Telekom Malaysia Berhad (TM) entered into a public-private partnership (PPP) with the signing of the Agreement for the HSBB Project. The total cost of this ten-year project is RM11.3 billion, with the Government contributing RM2.4 billion for the first three years. In turn, TM will undertake investments to the tune of RM8.9 billion over the ten-year duration. The project will cover the inner Klang Valley, industrial areas nationwide and Iskandar Malaysia, connecting 1,335,544 premises with the HSBB network. Through this agreement between TM and the Government, returns from the project will be apportioned on a “Revenue Sharing” basis of either the “fixed revenue sharing” or the “surplus revenue sharing” methods. Any cost-savings derived from the project will be returned to the Government and TM through a mutually prearranged formula. The whole nation, covering the Government, the
business sectors, socio-economic sectors and people representing all walks of life, stand to benefit greatly from the enhancement of the HSBB services offered through the public-private partnership approach. With the roll-out of the HSBB infrastructure, a whole new highly-interactive digital lifestyle environment will proliferate and thrive. Many new offerings and enhanced services will be introduced, such as eEducation, e-Commerce, e-Health, e-Government, Internet Protocol TV (IPTV) and e-Payment. The implementation of nationwide broadband services is indeed timely and stands to significantly contribute to the development and growth of the country’s social-economic community.
by TM and to ensure local companies’ involvement in this project.
related to industries with regard to the nationwide broadband implementation.
The Technical Monitoring Committee is tasked to monitor the technical aspects of HSBB and BBGP implementation such as infrastructure-related issues, coverage areas and claims verification. The Technical Monitoring Committee held several discussions on finalising the process of consultant appointment for the HSBB project. The Committee explored ways and means for industry-players to work towards achieving the target of 50% broadband penetration. This includes ensuring industry players to expand on the coverage areas for their services to achieve the target set.
In turn, the above four committees report to the Integrated Project Management Office (IPMO) comprising members from the Ministry of Energy, Water and Communications (KTAK), SKMM and TM. The IPMO monitors the National Broadband Implementation, focusing on three core areas, covering Measurement, Awareness and Promotion, and Applications.
National Broadband Implementation (NBI) Governance Structure
Lastly, the Broadband Take-up Committee is responsible for a comprehensive broadband data collection and trend analysis so as to track the progress of broadband take-up, and thereon to review and analyse available schemes and incentives. The Committee organised a workshop with various industry players to establish and identify the indicators for broadband and explore ways of ensuring the data received by SKMM is more comprehensive and accurate.
To ensure the target of a 50% household penetration by the end of 2010 is realised, several working committees have been established to monitor and supervise the ongoing progress of the project. The National Broadband Implementation (NBI) Steering Committee was established under the Cabinet Committee on Broadband and this Committee, in turn, oversees these working committees from both the demand and supply sides. The working committees are as follows: 1) States Broadband Implementation and Co-ordination Committee 2) HSBB Procurement Monitoring Committee 3) Technical Monitoring Committee 4) Broadband Take-up Committee The States Broadband Implementation and Co-ordination Committee was formed to ensure the success of the broadband implementation in each state. Discussions were held with several state governments. The HSBB Procurement Monitoring Committee was established to monitor the HSBB procurements made
In addition to the above, an Industry Consultative Committee on Broadband Implementation was formed and a number of meetings were held to handle issues
The Integrated Content Development Taskforce (ICON) was formed to study the online content development initiatives of both the public and private sectors. ICON is chaired by the Chief Secretary to the Government. The secretary for the meeting is jointly held by MAMPU and MDeC, which represents both the public and private sectors’ initiatives, respectively. The organisation of the NBI Governance structure is shown in Figure 1 below. Other key aspects addressed as part of the coordination and monitoring exercise to ensure the success of the HSBB project include: 1) In November 2008, at an HSBB Implementation Co-ordination meeting involving KTAK, SKMM and the related ministries and government agencies,
INDUSTRY CONSULTATIVE COMMITTEE MEETING ON BROADBAND IMPLEMENTATION
Figure 1: NBI GOVERNANCE STRUCTURE
STATES BROADBAND IMPLEMENTATION AND CO-ORDINATION COMMITTEE TECHNICAL MONITORING COMMITTEE
an agreement was established to process every complete application for site approval from TM within five working days. TM was also allowed to make bulk submissions for obtaining approval in order to facilitate and accelerate the HSBB project implementation. Each agency concerned and the Local Authorities have agreed to appoint a Liaison Officer comprising a Senior Officer to process the applications and assist to speed up decision-making associated with such HSBB project applications. 2) In December 2008, the Taskforce comprising officers from SKMM and KTAK undertook the verification process for the HSBB roll-out over three days at TM’s site. In essence, the verification covers two major areas, namely: a. Technical verification which includes project and equipment verification, and documentation such as tender documents, project timelines, etc; b. Financial verification which covers considerations such as cost of equipment and documentation such as purchases, accounts and project accounts verification with project managers. Based on the methodology and sampling used to verify the expenditures and claims, the Taskforce verified a total of 36 projects in the Access, Core and International networks categories.
CABINET COMMITTEE ON BROADBAND (CCB) Chairman : YAB DPM
INTEGRATED CONTENT DEVELOPMENT TASKFORCE (ICON) Chairman : Tan Sri KSN
NATIONAL BROADBAND IMPLEMENTATION (NBI) STEERING COMMITTEE Chairman : Dato’ KSU KTAK
HSBB PROCUREMENT MONITORING COMMITTEE
INTEGRATED PROJECT MANAGEMENT OFFICE (IPMO)
BROADBAND TAKE-UP COMMITTEE
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Speeding Up the Growth of ICT
2008 Projects Covering Broadband Implementation The two main projects undertaken covering the broadband implementation are as follows: 1) Pilot Broadband Project in Penang and Kulim This project was implemented with the target of achieving a broadband penetration rate of 80% in Penang in 2010. It involves broadband expansion in six locations in Penang and Kulim covering Batu Feringghi, Bayan Lepas, Bukit Mertajam, Batu Kawan, Kulim and Kepala Batas. All the six locations are connected by a Common Data Centre located in Kulim. As of 2008, 43 locations within Bayan Lepas, Batu Feringghi and Kulim were equipped with WiFi Hotspots facility. 2) Klang Valley Broadband Push (KVBP) The KVBP pilot project, which was launched earlier in 2007 to increase broadband penetration rate to 90% of households in the Klang Valley by the year 2010, continued to be pursued. Among the projects implemented in 2008 include: a. WiFi within libraries - 10 libraries in the Klang Valley were equipped with free WiFi facility. b. Wireless@KL – a collaboration between DBKL and Packet One Networks (M) Sdn Bhd, with the support of SKMM, to install 1,500 WiFi hotspots in Kuala Lumpur. Since the launch of this project on 12 May 2008, up to 200 hotspots in 42 locations in Kuala Lumpur and almost 700 Access Points (AP) have been installed. c. eSchool - a collaboration between SKMM and TM with the placement of ICT facilitators in four schools (St Johns’ Institution, SM Cyberjaya, SM Agama Bestari Subang Jaya and SK Taman Tun Dr Ismail) to assist teachers and students in the usage of ICT facilities. d. U-Library – a collaboration between SKMM and a number of libraries in the Klang Valley; the National Library of Malaysia, Kuala Lumpur Library, Raja Tun Uda Library, Perpustakaan Hipermedia Subang Jaya and Petaling Jaya
Community Library that are inter-connected by network. A department has been formed to undertake this project. Two knowledgesharing sessions on U-Library in the form of ‘ExecutiveTalk@SKMM’ for information professionals of public libraries throughout the country were organised. e. Metropolitan Web Portal – a collaboration between SKMM and DBKL to set up a portal containing information on Kuala Lumpur. This portal called www.kul.com.my was launched on 12 May 2008 together with the Wireless@KL project.
Broadband Promotions in 2008 The Mybroadband conference and exhibition with the theme ”Experiencing Convergence” was held from 28 to 30 October 2008 at the Kuala Lumpur Convention Centre. The objective of the exhibition was to promote broadband services, showcase the latest technologies, solutions in broadband and ICT applications, together
with exploring various initiatives by stakeholders on delivery-platform sharing and business model development for convergence.
enhance the business and consumer-user experience. The awareness programme serves as a platform for the public to acquire more knowledge on broadband, which stands to become the catalyst for many other technological advancements such as RFID, VoIP and so on.
TM’s Undertakings In return for the funding participation of the Government in the public-private partnership with TM, as well as in supporting the initiatives towards achieving the targeted broadband penetration rate, TM has committed to several undertakings as stated in the HSBB Agreement. They are as follows: 1) Extending the HSBB network to government buildings and Institutions of Higher Learning (both public and private) within and outside of the main zone identified for HSBB network coverage. A total of 83 institutions will be connected with the HSBB network. 2) Providing a content platform for other content and application providers. 3) Developing telecentres outside areas specified for USP (Universal Service Provision) for the public within the first five years of the project. 4) Devising and offering low-cost broadband packages to the public. 5) Organising public awareness programmes such as exhibitions, conferences, broadband experience centres, and other activities. The overall benefits from such undertakings are that HSBB stands to enhance the Government’s public service delivery and the education processes of the Institutions of Higher Learning. Besides that, HSBB stands to drive the growth within the local content development community by enhancing consumer experience and improving content developers’ productivity. The development of telecentres will bridge the digital divide and provide basic broadband access to everyone. With an affordable broadband package in effect, this will significantly
Application of the Regulatory Framework for High-Speed Broadband Network With the signing of the HSBB Agreement on 16 September 2008 between the Government and TM, the Ministerial Direction on High-Speed Broadband and Access List, Direction No. 1 of 2008 (Ministerial Direction on HSBB and Access List) was issued on the same date, and was registered on 19 September 2008.
anti-competitive practices; and d. Promotion of the national policy objectives; • To direct SKMM to defer the implementation of Full Access Service, Line-sharing Service and Sub-loop Service where such services are provided over the HSBB network for seven years from 16 September 2008 to 15 September 2015; • To provide a statement of TM’s intention that three HSBB services (High-Speed Broadband Access Services, High-Speed Broadband Connection Services and High-Speed Broadband Transmission Services) will be provided to Access Seekers on a commercially negotiated basis; and • In all other aspects, the Access List remains unaffected.
Economic Indicators on the Benefits of Broadband to the Nation The increased broadband will contribute significantly towards the increase in Gross Domestic Product (GDP). According to the Economic Planning Unit, based on initial estimates, the contribution to GDP is projected at RM6.68 billion or 1% in 2010. Around 135,000 new jobs are expected to be created at the same time. Table 1 shows the contribution to GDP and new jobs to be created in the future.
The Ministerial Direction on HSBB and Access List directed SKMM on the regulatory framework to be applied to TM’s HSBB network, as follows: • To direct SKMM to review the HSBB network in relation to other networks. The factors to be considered in this review are specified as follows: a. Long-term benefits of end users; b. Effect on infrastructure investment; c. Effect on competition including any
Year
Contribution to GDP (based on 6.0% real GDP) RM(Billion)
Number of Jobs Percentage (%) Created
2010
6.68
0.98
135,000
2012
10.68
1.39
220,000
2017
3.59
1.32
281,000
2022
15.88
1.16
329,000
Table 1: Source - Economic Planning Unit
The other major benefits of broadband for the country include the following: 1) Improved access and higher quality of education, health, financial services and tourism; 2) Improved business environment for investors; 3) Improved sustainability of the country’s environment; 4) Narrowing disparity between the urban and rural from e-inclusion; and 5) Creation of new industries and services.
Indicators for Broadband Take-up The monitoring of broadband take-up is performed on a weekly basis. Broadband indicators are based on technology type, at both state and national levels. As at Quarter 4 of 2008, the household broadband penetration rate was 21.1% with the number of broadband subscribers in Malaysia standing at 1.7 million, with 1.3 million being residential subscribers and 0.4 million non-residential subscribers. SKMM and the Wireless Broadband Operators have worked together under the Broadband Take-up Committee to undertake a survey. With effect from Quarter 4 of 2008, mobile broadband substitution on fixed lines for household penetration had been factored at 39.4% contribution. The usage of broadband by technology indicates that the widely popular ADSL (Asymmetric Digital Subscriber Line) service has captured the most users, with 1.2 million subscribers in the last quarter of 2008. This represents 75% of broadband subscribers, ahead of mobile broadband with 22.5%, SDSL (Symmetric Digital Subscriber Line) at 0.5%, Satellite 0.3%, others (fixed-line) at 0.4% and others (wireless) at 1.4%. The percentage of broadband subscriptions by technology is shown in Figure 2, (see next page).
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Others (Fixed) Satellite 0.4% 0.3% SDSL Others (Wireless) 0.5% 1.4% Mobile 22.5%
ADSL 75.0%
Managing Communications Infrastructure
Item
Category
1.
Access
168
2.
Core
143
HSBB Implementation
3.
International
Scope
Figure 2 : Percentage of Broadband Subscriptions by Technology The broadband community access consists of 2,264 cyber cafes nationwide covering 11.3 million population, Government Net (1.2 million), 36 private institutions of higher learning (0.38 million), 20 public institutions of higher learning (0.41 million), 42 rural Internet centres (0.21 million), 117 Community Broadband Libraries (0.59 million), 2,008 Public Hotspots (0.35 million), 58 Community Communications Development Programmes (0.29 million), 12 Community Broadband Centres (0.06 million) and 10,000 SchoolNet locations (5.4 million).
Report on QoS Compliance on Broadband Services Whilst ensuring that consumers receive the best returns from their subscribed services, SKMM applies a series of Mandatory Standards for Quality of Services with regards to services such as Cellular, Broadband, Dial-up and PSTN (publicswitched telephone network). As at end December 2008, SKMM initiated the exercise to perform the assessments for Cellular, Broadband Dial-up and PSTN services on an outsourced basis through experienced and reputable consultants.
The scope of the HSBB project includes end-to-end deployment of high-speed broadband infrastructure that would require installation of new facilities and improvement to existing facilities. In general, the project entails deployment of broadband infrastructure as follows: 1) Access Network infrastructure 2) Core Network infrastructure 3) International Network connectivity It is expected that TM will deploy HSBB access to about 1.33 million premises in the areas identified by 2012. While the access infrastructure will only see deployment of HSBB infrastructure capable of minimum speeds of at least 10Mbps, the deployment of new infrastructure and upgrading of existing infrastructure in the backbone (core infrastructure) and international connectivity stands to improve general connectivity and bandwidth for the nation’s overall broadband infrastructure.
HSBB Infrastructure Deployment TM commenced work for some of the HSBB infrastructure following the issuance of the Letter of Award for the project on 25 July 2008 (“Effective Date”), pending the signing of the Agreement on 16 September 2008, which outlined TM’s responsibilities and obligations for the project covering the stipulated period of ten (10) years. As at November 2008, TM successfully implemented 313 projects as scheduled, details as follows:
IMPLEMENTATION AS OF NOVEMBER 2008
No. of Projects
2 313
About 65% of the investments at this stage are in the core network where TM had installed or upgraded new backbone capacity. This included Metro-E, Broadband Remote Access Servers (BRAS), Transmission, Control and support system. About 30% of the investments involved improving international connectivity where TM built the Asia-America Gateway cable system with its consortium members. The remaining 5% was invested in various civil works, fibre-optic installation and mini roll-out for access projects in various areas within the Klang Valley. There were also 3,000 premises passed known as Mini Roll-outs at this stage.
Verification on Network Roll-out As provided for under the HSBB Agreement, the Government will verify the network roll-out implemented by TM. During initial stage, a Verification Taskforce was set up within SKMM and KTAK to verify the network roll-out and to recommend to the Government for payment to be disbursed to TM. The Taskforce verified the investments made by TM in access, core and international from 28 November to 11 December 2008. Documents and equipment were verified, both at the TM office and at sites where the projects were undertaken. The PPP Agreement provided for an independent consultant to be appointed by the Government to verify the claims made by TM. A tender exercise for the appointment of the consultant was undertaken in November 2008 with the selection being finalised in December.
SKMM-HSBB Verification Taskforce Team members during site inspection at Wangsa Maju, Kuala Lumpur
2008 with the RoS under the name of “Persatuan Pengendali Internet Selangor dan Wilayah Persekutuan” or the Internet Operators Association of Selangor and the Federal Territory. The MyIX peering members comprise the following: 1) Telekom Malaysia Berhad 2) JARING Communications Berhad 3) AIMS Data Centre Sdn Bhd 4) Maxis Broadband Sdn Bhd 5) DiGi Telecommunications Sdn Bhd 6) TT dotcom Sdn Bhd 7) Nasioncom Sdn Bhd 8) REDtone CNX Broadband Sdn Bhd 9) Bizsurf (M) Sdn Bhd 10) Airzed Broadband Sdn Bhd 11) eB Technologies Sdn Bhd 12) Optical Communication Engineering Sdn Bhd 13) Paneagle Communications Sdn Bhd 14) HeiTech Padu Berhad 15) VDSL Network Sdn Bhd 16) MyKRIS Asia Sdn Bhd 17) Clear-Comm Sdn Bhd 18) Izzinet Sdn Bhd 19) NTT MSC Sdn Bhd 20) Packet One Networks (M) Sdn Bhd 21) U Mobile Sdn Bhd 22) Celcom (M) Berhad 23) Global Transit Communications Sdn Bhd 24) Macro Lynx Sdn Bhd
Radiation and Communications Tower Matters In 2008, various public complaints were received voicing their concerns regarding RF radiation. On a positive note, SKMM agreed that measures of such nature should be attended to seriously and with urgency. Complaints were received nationwide which required extra and immediate attention to resolve the problems amicably. SKMM embarked on several initiatives, covering the organisation of a series of awareness programmes. Road shows, seminars and symposiums were held nationwide and below are some of the events undertaken during the course of the year. Event Date
Title
13 Jan 2008
Majlis Taklimat/Penerangan Mengenai Isu Radiasi Bagi Pembinaan Menara Telekomunikasi
11 Mac 2008
RF Dialog @ Lebuh Tunku Kudin 2, Gelugor, Penang
05 Jun 2008
Seminar Kesedaran Radiasi Struktur Telekomunikasi
24 Jul 2008
Seminar Radiasi Frekuensi Radio dan Kesihatan Awam
20 Aug 2008
Majlis Taklimat/Penerangan Mengenai Isu Radiasi Bagi Pembinaan Menara Telekomunikasi Di Rembau
05 Nov 2008
As a result of the increase in bandwidth utilisation, the capacity of MyIX was upgraded from 1Gbps to 10Gbps in October 2008 to cater for the everincreasing demand.
The Association undertook preparations to hold its first Annual General Meeting to appoint members of the Executive Committee for the following positions: 1) Chairman 2) Deputy Chairman 3) Six Committee Members
Taklimat Kesihatan dan Keselamatan - Struktur dan Transmisi Komunikasi - Ipoh, Perak 5
08 Nov 2008
RF Seminar - Wireless@Penang
25 Nov 2008
Seminar Radiasi Frekuensi Radio dan Kesihatan Awam - Miri, Sarawak
In formalising the collaborative arrangement for the peering members, it was agreed that the members of MyIX form an association under the Registrar of Societies (RoS). This was duely registered on 31 July
Among the items of the agenda of the AGM included the preparation of the financial and business plans for MyIX, including establishing the peering charges to be paid by peering members.
16 Dec 2008
Taklimat Kesihatan dan Keselamatan Berkaitan Struktur dan Transmisi Komunikasi - WPKL & Putrajaya
The Malaysian Internet Exchange Report for 2008 SKMM was tasked to look into the establishment of the Malaysian Internet Exchange (MyIX), as a neutral exchange established to keep local traffic within the country by promoting and allowing direct peering among local Internet service providers. MyIX will not only reduce the international connectivity costs but also improve traffic latency, thereon also improving the quality of service for Malaysian Internet users. Since its establishment on 15 December 2006, the MyIX peering members have been increased to 24 members and the total traffic from the members has increased from 400Mbps many fold.
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gears can continue to assist SKMM to educate and resolve further complaints from the public. Future complaints received by SKMM’s Consumer Complaints Bureau (CCB) is expected to be reduced through this approach.
FAQs, public survey, useful links and many other topics. In conclusion, SKMM is aware about the industry requirements and the general public concerns with regards to various issues on towers and communications’ infrastructure. As such, SKMM has proposed to establish an industry committee to expedite the issues within the proposed terms of reference (TOR).
2.
Malaysian Maritime Academy (ALAM)
Certification of Proficiencies for designated skill area of Radio 2003 Operator (Maritime)
3.
Multimedia College (MMC); formerly known as Telekom Training College
Certification of Proficiencies 15 Jul 2002 for designated skill area of Non-Radio Operator (Cabling Provider)
Objectives of the Formation 1) A choice platform where industry players can converge to table and address issues of interest and concerns such as infrastructure, health and radiation, etc. 2) Commitment from industry players in helping to resolve problems on infrastructure and health/radiation matters. 3) To cover the advent of new technology players: GSM, 3G and WiMAX. 4) Finding mutual consensus, a model solution for the industry, states, local authority and the public on various issues related to radio communication infra roll-out.
One of the seminars organised by SKMM and held in Kuala Lumpur
SKMM has been working closely with MoH to provide consultancy regarding the radiation emission from various communications infrastructure and mobile phones. The consultancy which began in 2007 includes assisting MoH in developing the guidance document on EMF from base stations and mobile phones and the study on WiFi for the safe usage in hospitals. These areas need to be further developed to address rising concerns from the public and to provide assurance and guarantee that communications infrastructure utilising radio frequency (RF) are safe.
SQASI undertakes certification programmes for certifying of all types of communications’ equipment for wired and wireless categories. ALAM and MMC undertake the certification programme for proficiencies under the designated skill area pursuant to Regulation 26(1). ALAM is responsible to conduct the certification category for the designated skill area of a radio operator. In turn, MMC is appointed to carry out the certification programme for cabling providers.
The test gear for RF measurement
SKMM also undertook a revamp to the contents of its website information pertaining to radiation.
SKMM is also actively involved in the development of the Malaysian Standards (MS) for EMF under the purview of Department of Standards Malaysia (DSM). The MS will be based on the International Commission on Non-ionizing Radiation Protection (ICNIRP) which is widely accepted internationally. Upon registration, the MS will be the basis of EMF emission in Malaysia.
The proposed Committee is expected to be established in the first quarter of 2009 and would comprise industry members, State-backed Companies (SBC), Local Councils, SKMM’s regional offices and other relevant organisations. Amongst other objectives to be achieved include: • Target for full implementation by end-2009 • Continue these efforts until the end of 2010 to achieve the Broadband penetration rate of 50% • Faster and smoother infra and service roll-out • Reduce number of public complaints pertaining to RF radiation • Increase number of sites at all states
Certification Matters
The following chart records their achievements in performing their functions as registered certifying agencies for 2007 and 2008. CAs Achievement for 2007 & 2008 No. of Certificates Issued
The seminars involved the participation of experts from the Ministry of Health (MoH), Agensi Nuklear Malaysia (ANM) and University Malaya Medical Centre (Prof Dr Ng Kuan Hoong, the author of SKMM’s book on “Radiation, Mobile Phones, Base Stations and Your Health”). This publication was widely circulated amongst the participants to raise their understanding on radiation matters.
3 Sep 2003
3000 2500
2,511
2,384
2000
The web address at www.rfrad.gov.my
For this exercise, SKMM purchased relevant test gears to ensure adequate knowledge was disseminated to the staff of SKMM’s regional offices. The test
The website contains a wide selection of information covering awareness programmes, publications, RF measurement results at complainants’ premises,
1.
2,050 1,051
919
1000 500 0
SQASI
MMC
ALAM
Certifying Agency
Section 186 of the CMA 1998 provides for SKMM to register Certifying Agencies (CA) or Classes of Certifying Agencies (CCA) including agencies outside Malaysia. This affects the certifying mechanism for purposes of certifying compliance with codes or standards under Part VII, Technical Regulation of the CMA 1998. To date, SKMM has appointed three organisations and registered them as CAs. No. Organisation
2,693
1500
Certifying Agencies
Moving forward, SKMM will be ready to counter public complaints by measuring the level of RF radiation at the complainants’ premises, so as to prove to them that the measurement level is far below the safe level. To provide SKMM’s regional offices with choice understanding and relevant knowledge on radiation emission, the ROs were trained and equipped with appropriate tools to measure the RF radiation levels at selected sites.
2007 2008
Registration Category
Sirim QAS International Certification of Sdn Bhd (SQASI) Communications Equipment
Date of Appointment 3 Sep 2003
For the year 2008, a total of 2,384 certificates (Type Approval) for the category of communications equipment were issued by SQASI. Of this total, 1,823 approvals or 75.5% were issued for radio-based (wireless) equipment. Compared to 2007, the total certification for this category has decreased slightly by 5.1%. Year
Certification Category
Total
Telephony
Radio
Telephony (%)
Radio (%)
2007
556
1,955
22.1
77.9
2,511
2008
561
1,823
23.5
76.5
2,384
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Certifications of Radio Operator Proficiencies by ALAM
2C :
ALAM issues two categories of certifications under the certification of proficiencies for designated skill area of radio operators, i.e. certification of Maritime Radio operator of Global Maritime Distress and Safety System (GMDSS) of: • General Operator’s Certificate (GOC) and; • Restricted Operator’s Certificate (ROC) The statistics for the certification programme conducted in 2007 and 2008 is detailed in the following table: Certification Category
Year
2D :
cabling provider – fibre-optic for network (aerial and underground installation, jointing, testing and maintenance); and cabling provider – cabling network design for network.
Certifications of Amateur Radio Proficiencies by SKMM This category of certification has been conducted by SKMM since 2001. Two classes of certification are available, i.e. the Amateur Radio Operator’s Certificate (AROC) for Class A and AROC for Class B. The certifications are undertaken with two (2) separate examinations known as the Radio Amateur Examination (RAE) for the AROC Class B and the Morse Code Test (CW Test) for AROC Class A.
Total
GOC
ROC
2007
657
272
929
2008
820
231
1,051
In 2008, SKMM successfully conducted two RAEs and two CW tests. Details of the examinations/tests are shown in the following table:
The certificates were issued under the provision of Regulation 27(2) of the Communications and Multimedia (Technical Standards) Regulations 2000 in conjunction with the Merchant Shipping (Training and Certification) Rules 1999 and its standard of competence and is in accordance with the provisions of Regulation IV/2 of the International Convention on STCW 1978 as amended in 1995 and the ITU Radio Regulations.
No.
Examination/Test
Date Conducted
1.
Radio Amateur Examination (RAE)
2.
Morse Code (CW) Test (Practical Test)
No. of Candidate Attended
Passed
24 Jun 2008
1,818
1,037
17 Dec 2008
1,802
993
25 Mar 2008
20
13
24 Sep 2008
18
9
Certifications of Cabling Proficiencies by MMC
The Amateur Radio Operator’s Certificate (AROC) Class B is issued to those successful in the RAE; for Class A, it is issued to successful candidates in the CW test.
The Multimedia College (MMC) conducted certification programmes for certification related to cabling proficiencies. In 2007, a total of 2,050 candidates were certified in this proficiency category and for 2008, 2,693 candidates were certified. The following table details their certification achievement for 2007 and 2008.
Promotion of Local Content Development and NCDG
Year
Certification Category
Total
1A
1C
1D
2A
2C
2D
2007
526
0
126
714
658
26
2,050
2008
738
0
40
607
1,269
39
2,693
Legend: 1A : cabling provider – copper pair for customer’s premises (installation, jointing, testing and maintenance); 1C : cabling provider – fibre-optic for customer’s premises (installation, jointing, testing and maintenance); 1D : cabling provider – cabling network design for customer’s premises; 2A : cabling provider – copper pair for network (aerial and underground installation, jointing, testing and maintenance);
Overview Networked content is becoming an increasingly important subject alongside the rapid development of communications technology. In recent years, the Government has been increasing efforts to roll out world-class communications’ infrastructure to facilitate social and economic developments. Various directions and licences have been issued to support the robust progress in delivering communications and information services, such as 3G and WiMAX, to the masses. Some of the more recent mega-initiatives being geared up in these sectors are the High Speed Broadband (HSBB) and Digital Terrestrial Television Broadcasting (DTTB). However, as with all developments in communications, people are not interested in the technical details of these new networks or facilities; rather, their interest lies in what these new networks can deliver for them. This means that a primary
concern of the authorities should relate to ensuring that adequate and exciting media contents and services can be provided over new networks. In this industry, the phrase ‘CONTENT IS KING’ echoes loud and clear. Without any credible plans being effected for content development, the future of these networks might be at risk. Based on this realisation, the broadcast sector has taken bold steps to produce more local contents. In 2008, ASTRO allocated RM229 million for local content development compared to RM141 million in the preceding year. Meanwhile, Media Prima Berhad created its own content production arm called Primeworks Sdn Bhd and announced a RM250 million budget allocation for local content production for 2008 compared to RM196 million in 2007. The content market in 2008 was invigorated by several developments such as the introduction of new channels on ASTRO, the country’s general elections, rapid growth in cellular subscriptions, aggressive promotions of HSDPA (High Speed Downlink Packet Access) and the entry of a new player, U-mobile into the market. Mobile subscriptions grew to more than 26 million in 2008 compared to 23.3 million in 2007. HSDPA take-up also grew exponentially to 203,900 last year compared to the previous year’s figure of 96,300. The content industry in Malaysia is estimated to be worth RM7 billion as at 2008. It would appear that the colossal potential of the networked content industry has not been fully explored and promoted to become a reliable engine of growth. And from a national point of view, the content industry has an immense potential to become an engine for productivity and growth. Besides the economic benefits and implications, this industry also brings social benefits and at the same time, strong social implications. It offers Malaysians an exclusive opportunity to project our unique culture and national identity to the world. If we do not nurture our local content industry in time, our communications and media networks will be overrun by foreign contents which may have little regard and hardly any affinity for our local culture and values. Hence, content development has been identified as one of the six growth areas under the MyICMS 886 Strategy. The Content and Industry Development Department bolstered its effort in this area throughout 2008 with the objective of transforming Malaysia into a global hub for content development and services. The department adopted three key approaches namely: • Facilitating stakeholders under the prevailing policies and regulations, • Stepping up capacity building efforts; and • Providing incentives for content development.
Networked Content Development Grant (NCDG) The RM20 million allocation made available under the NCDG scheme set up by SKMM has become one of the major hypes in the local content industry since its launch in 2007. The purpose of this scheme is to render funding assistance to small and medium-sized entrepreneurs (SMEs) content developers in line with the MyICMS 886 Strategy. It aims to facilitate and encourage the involvement of Malaysians in the creation, production and distribution of highly creative, original and marketable contents for both the domestic and international markets. The table below provides some key facts and figures on the NCDG in 2008. No.
Description
Status
1.
Applications received
32
2.
Applications approved
6
3.
Unsuccessful applications
10
4.
Applications on WIP (Works-in-Progress)
16
Total amount approved
RM4,030,530.00
More attention was accorded to contents which have the potential to be exploited on multiple platforms as a means to promote convergence and triple-play business models. Although certain types of contents have their primary platforms such as broadcast, mobile or online, the developers applying for the grant were constantly challenged to prepare their product proposals to be suitable for use on other platforms so as to generate more revenues from the content that they had created. The rigorous and transparent assessment procedures have seen only 25% approval rate for NCDG applications. At the core of this evaluation process is an expert committee comprising experienced and senior content development personnel representing the nine major stakeholder organisations within the industry. Although the approval rate was apparently low, the outstanding performances shown by the six successful NCDG projects had given qualified justification. One of the projects, an animation series called ‘Mustang Mama Die-Hard Sports Fan’ by Inspidea Sdn Bhd, received international recognition and generated considerable revenue for the company. Further details about the NCDG are available at http://www.skmm.gov.my/what_we_do/ncdg/ncdg.asp
Market Access One of the two expected results of MyICMS 886 for Content Development is stated
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Speeding Up the Growth of ICT
as “content will be a sizeable export revenue contribution for Malaysia”. To realise this vision, SKMM collaborated with other government agencies such as MDeC and FINAS to conduct market access programmes. In April 2008, SKMM became one of the co-organisers to bring Malaysian companies to sell their contents and to find co-production partners at MIPTV 2008 in Cannes, France.
their Mobile Money Edutainment application.
The annual MIPTV organised by Reed MIDEM in Cannes is the largest media trade market in the world for co-producing, buying, selling, financing and distributing contents across all platforms. Attended by 13,000 participants and with participation of more than 4,000 companies/agencies from 93 countries, MIPTV is a concentrated avenue for local producers to meet and strike deals with major foreign buyers from Europe, America and Asia.
Besides competitions, SKMM also conducts seminars and workshops to enlighten the public about burgeoning opportunities in networked content development. Two seminars were held in Kuching and Kuala Terengganu during 2008. Six workshops on mobile content development were organised throughout the country in collaboration with Maxis.
The Malaysian Pavilion at MIPTV 2008 hosted by the three co-organisers-MDeC, SKMM and FINAS-drew tremendous results. An animation licensing rights and a co-production deal worth RM7 million were sealed during the event. Other contracts worth RM71 million were finalised after MIPTV 2008 event. (Source: MDeC)
SKMM also teamed up with ASTRO and MDeC to co-organise a reality TV show called Nextgen Contentpreneur Awards (NCA), aimed at encouraging Malaysian youths to explore various aspects and skills of content creation.
SKMM and the Ministry of Energy, Water and Communications (KTAK) also organised a dialogue session which brought together two important stakeholders in the content industry, namely the animation companies and the broadcasters. SKMM played the role of moderator and many interesting issues pertaining to the content industry were discussed. One of the issues, the lack of demand stimulation, was taken up by SKMM for further consideration.
Malaysia’s participation at MIPTV 2008 produced indeed encouraging results towards achieving the objectives of MyICMS 886.
Capacity Building Building talented human capacity and commercial viability are vital aspects towards the creation of a sustainable eco-system of content development. In order to achieve this aspiration, SKMM leverages on its strength as the regulator and developer of the communications industry and to bring various parties together to conduct capacity-building activities.
Futuristic “smart homes” are starting to descend from the level of sci-fi vision, enabling lifestyle services that are empowered by the next-generation of communications and sensor-based technologies. In the medium- to long-term, the connected home will leverage multiple elements of a home network to create a “smart home” environment that will weave digital services into consumer lifestyles.
Digital Homes use networking technologies to integrate appliances, devices and services within the home to control and monitor the entire living space from within the home as well as from remote locations.
This connected lifestyle services will be the connection that binds consumers together by providing new social networks. Today, service providers deliver distinct services to discrete devices. As the connected home takes shape, services need to be delivered by a centrally-controlled system where devices can “talk” to each other and services are designed to meet the needs of consumers. Services will be created, managed and delivered around consumer-centric lifestyle packages rather than the product-centric silos that characterise today’s product offerings.
As such, the development of Digital Homes and other services, infrastructure and growth areas under the MyICMS 886 Strategy such as High Speed Broadband, Digital Multimedia Broadcasting, Short Range Communications, USP, Multiservice Convergence Network, Home Internet Adoption, Product Design and Manufacturing and Foreign Ventures are interconnected and interdependent.
Establishment of R&D Initiatives Under Digital Homes
In 2008, SKMM continued to collaborate with Maxis to co-organise the Mobile Content Challenge (MCC). MCC provides a platform for university students from all over the country to create exciting mobile content and applications. MCC 2008 garnered increased interest and participation compared to MCC 2007. Students from 59 institutions of higher learning submitted 185 entries for 2008 compared to only 96 entries for 2007.
The MyICMS 886 Strategy has identified and targeted Digital Homes as one of the new services which stand to propel Malaysia in the delivery of advanced information, communications and multimedia services towards improving the quality of life of Malaysians besides boosting the country’s global competitiveness. The desired goals in this area are as follows: a) Short-term – Home Gateway introduced in 60,000 homes to support small-office, home-office (SOHO) type of applications; b) Mid-term – 500,000 homes interworking with external networks; c) Long-term – 1 million connected homes.
The MCC project also achieved another important milestone in 2008. Two top winners of MCC 2007 entered into commercialisation contracts with two content providers in 2008. These were Focus IT from Universiti Malaysia Sarawak, who signed a commercialisation deal with Metadome Sdn Bhd for their HalalPro application and first runner-up team, Kids Cashier from Universiti Teknikal Malaysia, Melaka, signed with LTT Global Sdn Bhd for
A digital home is defined as a home that is equipped with network that allows disparate devices to interoperate seamlessly. Consumers are able to access digital content from any device, anytime and anywhere, both inside and outside the home, through a home gateway. This would be a device that offers broadband connectivity to the home and delivers services to the home environment and to the different devices and interfaces that make up the home environment.
This would mean that Digital Homes are closely related to the telecommunications, broadcasting, home appliances networking and solutions.
With the objective to educate the general public and create awareness on digital lifestyles, SKMM together with the Multimedia University (MMU) and various industry players (Intel, LG, Maxis, Astro, Senstech, EOM Systems and TMNet) collaborated to construct a Model Digital Home. Housed at the Multimedia University in Cyberjaya, the home functions as: • A technology showcase of innovative digital home related products; • A platform to introduce and demonstrate functionality of digital home technologies from tertiary institution, industry partners, etc; • To provide a physical environment that acts as a test home for newly invented products/solutions; • Generate interest and promote adoption of digitalliving from business perspective or consumer perspective.
The digital universe is expanding, and in today’s “Connected Life”, consumers expect entertainment, information and communication when they want it, how they want it, and even where they want it.
This Model Digital Home showcases an end-to-end digital home ecosystem of innovative and integrated technology featuring 3G mobile home monitoring,
an integrated security system, an intelligent home automated control system, a sensor friendly environment, and many other applications. This dream home of the future, conceptualised to meet the lifestyle of choice of every family member embodies four major lifestyle ideals, comprising Automation & Control, Safety & Security, Entertainment & Infotainment, and Healthcare & Comfort. In further promoting the Digital Home concept to the industry and public, a digital home model was showcased at the “Experiencing Convergence. MyBroadband Conference and Exhibition 2008” (EC.MyBB08), held at Kuala Lumpur Convention Centre (KLCC) from 27 to 30 October 2008. The Model Digital Home showcased how today’s progressive technology can enable converged video, voice and data (“triple-play”) services for a seamless consumer experience. The home, named D’Impian, was equipped with fibre-to-the-home (FTTH) technology delivering high-speed broadband access service at 10Mbps to the home, 3G mobile home monitoring, an integrated security system, an intelligent home automated control system, a sensorfriendly environment, as well as a Digital Car. Visitors to the state-of-the-art home had the opportunity to experience the true meaning of convergence. D’Impian was a joint partnership between SKMM, the Ministry of Energy, Water and Communications (KTAK) and TM, and supported by Maxis, HewlettPackard and LG.
Implementation of U-Library The mission of the Ubiquitous Library Initiative is to provide physical and digital access to knowledge resources in the knowledge repositories, richly
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endowed with local content and international content, promptly and accurately without limitation of time, geographic location and users, simply known as ‘anytime, anywhere, by anyone’. The Ubiquitous Library Initiative has the objective of making information accessible with the widening of broadband service and RFID technology, in a co-operative library network system with the provision of a U-Library Portal for the purpose of creating, sharing and exchanging knowledge to keep communities together, promote learning and enhance social networking within a knowledged society. It formulates the information landscape underpinning the demand for broadband and sensor technology in keeping with the MyICMS 886 Strategy.
the existing broadband infrastructure in connecting communities under the National Broadband Plan (NBP), which calls for ‘leveraging on the development of traditional information resources’. This would foster an engaging learning experience for the diverse information needs of an inclusive knowledge society, encompassing communities that are ‘underserved’, that includes people with disabilities; unemployed adults, retirees, minority communities, rural communities and community organisations. In this respect, issues of digital divide could be addressed. Pursuant to the U-Library strategy paper, two committees have been established as the Ubiquitous Library Steering Committee (ULSC) and Ubiquitous
Library Technical Committee (ULTC) on 18 July 2008. ULSC comprises representatives from the Ministry of Energy, Water and Communications (KTAK); Ministry of Unity, Arts, Culture, and Heritage (KEKKWA); Ministry of Housing and Local Government (KPKT); Economic Planning Unit (EPU); Malaysian Administrative, Modernisation and Management Planning Unit (MAMPU); Multimedia Development Corporation Sdn Bhd (MDeC); National Library of Malaysia; Council of the State Public Library Directors and Association of University Libraries (PERPUN). Their role is to advise, monitor, approve and make decisions pertaining to recommendations and proposals by the ULTC on the implementation of the U-Library Pilot Project.
National Library of Malaysia (PNM) (VIRTUA)
U- Library Consortium Pustaka Negeri Sarawak (ANGKASA)
INTAN Library Bukit Kiara (ILMU)
U-LIBRARY IS ABOUT ACCESS UBIQUITOUS LIBRARY Physical Access “anytime, anywhere”
Sensor Technology Awareness on the U-Library concept was further explained through Executive Talks, a series of events in the form of knowledge sharing. The first Executive Talk of 23 June 2008 was graced by Mr Johnson Paul from the National Library Board of Singapore (NLB) who highlighted ‘U-Library: Value Innovating Services’. The second Executive Talk took place on 18 August 2008, and was facilitated by Mr Samba Natarajan of McKinsey Singapore who focused on the ‘Opportunities and Challenges of Broadband’. Both executive talks were attended by senior librarians and representatives from the telecommunications industry.
Selangor State Public Library (PPAS) (ALS Global)
RFID
U-Library Portal
Library Mgt. System, NUC, Delivery Channel & Cashless Payment Gateway
Borrowing & Returning Anytime, Anywhere
ACCESS WITH HSBB
Negeri Sembilan State Public Library (PPANS) (Clarice)
Digital Access “anytime, anywhere”
Digitalisation
Content
The Ubiquitous Library Steering Committee (ULSC) agreed that the pilot project be activated to connect a consortium of six libraries that include the National Library of Malaysia, Selangor State Public Library, KL Library, Negeri Sembilan State Public Library, Pustaka Negeri Sarawak, and INTAN Library at Bukit Kiara. All libraries have installed their library management systems, and these will be seamlessly connected to the National Union Catalogue through NISO Z39.50 (Information Retrieval Service Protocol).
U-Library Portal
NUC, K-Repository
Information Discovery Anytime, Anywhere by Anyone
ULTC is represented by the participating libraries, the National Centre for Sensor Technology at UPM, Pos Malaysia Bhd, National Registration Department and Touch n’ Go and has been actively engaged in monthly meetings and occasional workshops, resulting in readiness assessment, development of U-Library
The U-Library Initiative is very much aligned with
policy, requirement analysis for the U-Library system and U-Library Trial Run. The Readiness Assessment on the six participating libraries which took place between 2 and 9 September 2008 observed salient features that concerned governance, standards conformance for interoperability, common membership, and RFID-LMS integration in a heterogeneous setting within the U-Library consortium. The outcome was presented by the Chairman of SKMM at the Third ICON Meeting on 23 September 2008. The U-Library Pilot Project was accorded positive support by the Chief Secretary to the Government, YBhg. Tan Sri Mohd. Sidek Hassan.
Kuala Lumpur Library (Horizon)
for the U-Library Trial Run, which include Common Membership within the U-Library Consortium, National Union Catalogue or KIK, Delivery Service of Pos Malaysia, Broadband Speed and Connectivity amongst members of the participating libraries.
The Chairman of SKMM, YBhg. Datuk Dr. Halim Shafie emphasised the importance of observing five elements
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Library Portal, National Union Catalogue, Library Management System, RFID technology, delivery service and cashless payment gateway in facilitating the participating libraries to be engaged with citizens through inter-lending service with the support of special delivery mechanism by Pos Malaysia, anytime, anywhere. Multipurpose kiosks endowed with RFID technology for self-service operations would empower citizens who are U-Library members to perform the suite of inter-lending transactions. The ‘book drop’ will have RFID technology to accept the ‘returned’ items belonging to any consortium library before their journey home to the owning library through the delivery service.
U-LIBRARY MODEL 1. U-Portal
6. Library Content
• Information Discovery Gateway for Users 2. LMS LMS for participating libraries • Interoperability functionality Z39.50 (Information Retrieval Service Protocol) • ILL functionality -Z39.83 NISO Circulation Interchange Protocol (NCIP)/SIP2
• National Union Catalogue
7. Broadband Infrastructure
3. RFID System UHF for Tracking & Tracing with NCIP/ SIP2 (Standard Interface Protocol) 30 January 2009 has been designated for the kick-start of the U-Library Trial Run. The collaborative efforts of ULTC and ULSC culminate with the preparation of the RFP for the pilot implementation of the U-Library Initiative, scheduled for Quarter 4 of 2009. Lessons learned from the U-Library Pilot experience shall weave the fabric
The current mode of TV and Radio broadcasting on terrestrial or free-to-air platform, however, is still in analogue format and in line with the developments of digital broadcasting around the world, the Government made a decision that digital terrestrial TV services be implemented in Malaysia beginning 2005 and has set an analogue switch-off date of 2015. As a further commitment to promote digital TV broadcasting, the Digital Multimedia Broadcasting and Mobile TV agenda were placed as one of the areas in the MyICMS 886 incorporating goals outlined from 2006 to 2010. The goal is to achieve 95% household coverage for fixed reception and 90% of total mobile TV users by 2010. Additionally, the goal is to introduce Digital Audio Broadcasting services beginning with the roll-out of trials in 2006.
using an analogue to digital converter box/set top box connected to the current analogue TV set or by purchasing a set top box (STB) and a digital TV tuner. Alternatively, the viewer can opt to purchase an integrated digital TV (iDTV) set that has a built-in set top box (STB).
creating a boost for the creative and content industry. Young and local talents can be nurtured to produce high quality content while local production companies will have increased opportunities to create, produce and supply content to the digital platform. New content providers may emerge with differing and niche
Digital TV
Digital Terrestrial TV (DTT) broadcasting in Malaysia will see the introduction of Standard Definition TV (SDTV) and High Definition TV (HDTV) that comes with additional services such as electronic programme guide, interactive TV, pay-per-view, video-on-demand, tele-shopping, telebanking, tele-health and many others on both fixed reception (through roof top antenna) and mobile reception (through mobile devices).
programming strategies. The growing creative industry will provide an opportunity to nurture and increase local information resources or content such as the coverage of Malaysian stories and infotainment in multi-lingual and multi-cultures in the vast digital broadcasting platform contributing towards building national identity and social cohesion, and adding to global diversity.
Digital Multimedia Broadcasting
Benefits of Digital TV
Digital TV services will bring a host of benefits to the country, both economically and socially, being a major development contributor towards the national agenda. Digital broadcasting provides not only the space within which new and leading-edge services can be developed, but more importantly, it has the potential to directly contribute to socio-economic development and the improvement of the quality of life of all Malaysians in line with the country’s National Policy Objectives.
Digital multimedia broadcasting covers both terrestrial and satellite TV and audio services. It enables the broadcasting of a vast amount of content on multiple devices such as TV and radio sets, mobile phones, portable media players and laptops.
Digital TV allows for broadcasting of more TV channels on a single radio frequency spectrum with improved picture quality and additional data and interactive services. It is more spectrum-efficient as one single radio frequency can accommodate up to six TV and multiple radio channels as compared to one TV channel occupying a single radio frequency spectrum in the analogue form. Most importantly, viewers will be able to enjoy high quality picture, clear audio and uninterrupted services even during bad weather.
Digital broadcasting has a key role to play in the socioeconomic and cultural development of Malaysia. It is of fundamental importance in the emerging information society and knowledge economy, in which access to information and knowledge is regarded as a prerequisite to economic and societal development. DTT deliberately takes advantage of the opportunity provided by the process of migrating from analogue to digital broadcasting to accelerate the achievement of the country’s socioeconomic development goals, in general and the ICT development goals, in particular.
Viewers can receive digital TV services through an ultra high frequency (UHF) roof top antenna, either
Upon the roll-out of the multiple digital TV/Radio channels, more content and applications will be required, thus
In co-ordinating the Ubiquitous Library initiative, SKMM takes the role of a ‘Partner’ to work with the consortium of six libraries towards agreed objectives with clearly defined responsibilities. SKMM has appointed a Technical Advisor for this Ubiquitous Library Initiative.
5. Cashless Payment • Touch’n Go • MEPS
4. Delivery Channel • Pos Malaysia Berhad
for the national roll-out under the 10th Malaysia Plan. The U-Library Model unleashes seven components that will pivot HSBB to offer physical access for the purpose of unlocking knowledge resources in a network that requires the facilities of the U-
The Malaysian population has been enjoying digital TV and Radio services on a satellite platform through pay TV operator, Astro, since 1996, with a choice of over 100 TV channels, some interactive services and eight terrestrial radio stations. Besides the satellite platform, digital mobile TV broadcasting services have also been offered to subscribers on 3G platforms by several Telco players since 2005.
Digital broadcasting technology will enable the efficient delivery of a huge amount of content and information to the urban, semi-urban and rural population, thus fulfilling the Government’s agenda in bridging the digital divide. The digital divide in Malaysia can be further narrowed by enabling access to e-government services, especially those who thus far have had limited or no access to rich information services. The digital technology comes with the capacity and features to enable the provision of services to the population while on the go,anywhere and anytime, in a multiplicity of languages, thus increasing access and use of rich information services which is in line with the Government’s vision towards a more informed society.
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Another important benefit derived from digitalisation is the Digital Dividend in which the spectrum released by analogue broadcasters after the migration period can be utilised to introduce even more new services such as wireless broadband (cognitive radio), highspeed mobile broadband, regional television, more high definition TV, emergency services and others. Whilst there are already digital TV receivers available in the market today, the migration towards digital will see an enhancement of the production and marketing efforts of the digital TV receivers by manufacturers. It is expected that the requirement for STB or digital receivers/tuners can be, to a large extent, supported by the country’s local manufacturing industry. This means that the industry will need to harness existing and make new investments in production facilities to meet the expected demand for electronic equipment, particularly STBs, UHF antenna and new TV display sets. Additionally, in order to ensure equipment compliance and quality assurance, the TV receiver devices need to be certified by certifying agencies. This means that a new business activity would be established resulting in the creation of more job opportunities.
anticipated that the advertising rates for electronic media will become even more competitive and subsequently attract more advertisers to reach their target markets thus, increasing the total advertising expenditure in Malaysia.
Digital TV Initiatives SKMM has undertaken several initiatives to introduce digital TV services in Malaysia beginning 2001 upon the presentation of a paper entitled ‘Analogue to Digital Migration for Television’ to the Economic Planning Unit (EPU). Subsequently in May 2002, SKMM organised a workshop with all the government agencies, working on the final draft of the Malaysian Spectrum Plan. In September 2002, EPU appointed a consultant to study and prepare a National Digitalisation Master Plan. Following this, in April 2003, SKMM conducted a public consultation by issuing a discussion paper entitled `Concepts for the Introduction of Digital Terrestrial Television (DTT) in Malaysia’.
Within the current analogue environment, the latest report by the Nielsen Media Company Malaysia indicates that the Malaysian advertising expenditure grew by 13% to RM6.2 billion in 2008. The growth in 2008 was driven by Terrestrial TV (+20%), Newspapers (+8%), Radio (+21%) and Point-Of-Sale (+28%). Newspapers and Terrestrial TV continue to command the bulk of total advertising across the medium measured, with respective shares of 54% and 35% followed by Radio (5%).
Upon completion of this study, the Consultant produced two reports namely the RTM Digitalisation Plan and the National Digital Master Plan in 2004. SKMM consequently approved four temporary radio frequencies in 2005, two stations each at Ulu Kali and KL Tower, following the application by RTM to implement DTT trial transmission. The RTM DTT trial was launched in 2006 and covered approximately 25% of the population within Klang Valley and involving 2,000 trial users. The said trial employed digital video broadcasting on terrestrial (DVB-T) as the standard and using Mpeg 2 (Moving Pictures Expert Group 2) coding format. Content genre on the digital trial platform comprise music, sports, news and interactive channels aired by RTM on the digital platform.
As in the past, print media has always dominated the advertising market due to its low advertising rates and wide distribution channels. With the introduction of more TV/Radio channels across the multiple digital broadcasting platform, it is
In rolling out DTT services, the decision to adopt a particular standard by a country is deemed as the initial key step to ensure successful roll-out, taking into consideration factors, among others, worldwide deployment, technology maturity, performance,
efficiency and availability of mass devices. SKMM further initiated to conduct a Public Inquiry on the determination of a standard for digital terrestrial broadcasting in Malaysia in August 2006 and a report was published in October 2006. A Commission Determination on the mandatory standard for freeto-air digital television broadcasting was issued in November 2006 in which the Commission set forth the adoption of the DVB-T (Digital Video Broadcasting on Terrestrial) standard as the mandatory standard for the roll-out of DTT service in Malaysia. Another important milestone for digital broadcasting implementation is the adoption of technical specification for the middleware standard for STB. The middleware in the STB is the application that enables access to rich information and services on the digital terrestrial platform. Similar to the adoption of the standards for DTT, the decision to adopt the technical specification of the STB relies on factors such as worldwide deployment, commonalities of devices and technology maturity. Considering the importance of this milestone which will directly impact the viewers, SKMM further engaged in an industry consultation in late 2007 to propose the minimum technical specification for the middleware standard for the set top box. In August 2008, SKMM registered the minimum technical specification for the middleware of the set top box as a Voluntary Industry Code under the Communications and Multimedia Act (CMA) 1998, based on the MHEG 5 standard and using Mpeg 4 coding techniques. As spectrum management is key to the implementation of DTT, SKMM subsequently conducted a spectrum planning activity in 1997 to determine the optimal allocation of spectrum to the broadcasting licensees. This activity employed the utilisation of a specialised software that enabled the generation of digital coverage area predictions and provides the information on the constraint and interference areas to the current spectrum occupation. The spectrum planning activity has to be
conducted carefully, taking into consideration factors such as the migration of other existing operators that are currently occupying the broadcasting band, border channels coordination with neighbouring countries and other adjacent service operators to avoid interference. The spectrum planning activity was completed in December 2008 following further deliberations within the industry. The finalisation of the spectrum planning completes the preparatory steps towards the roll-out of commercial digital TV services. In December 2008, SKMM proceeded to prepare the Marketing Plan for the UHF spectrum band IV and V (470 MHz to 742 MHz) for DTT services, for public consultation. In facilitating the migration towards digital TV, SKMM formed a Digital Switchover Group (DSoG) in July 2008, comprising public and private broadcasters, equipment manufacturers, Malaysian Technical Standards Forum, broadcasting service provider and the relevant divisions within SKMM. The DSoG met regularly with a prescribed Term of Reference and discusses work plans to meet the analogue switch-off date of 2015. The DSoG also functions to make recommendations on policies and framework for digital migration for further consideration by the Government. In ensuring the readiness for the industry to migrate to digital TV broadcasting, SKMM initiated the move to fund a DTT trial-widening exercise to enable the participation of private broadcasters and other new content providers. The trial is aimed to evaluate the latest compression standard Mpeg 4 and high definition TV (HDTV) services. The trial widening is aimed to last for a year, beginning the second quarter of 2009. Additional efforts to introduce Mobile TV services were initiated by SKMM during the year in review. The Malaysian Technical Standards Forum Berhad (MTFSB), an industry forum designated by SKMM funded a mobile
TV trial in January 2008 in collaboration with industry players such as RTM, AMP Radio stations and many local interest groups and worldwide equipment manufacturers that supplied the loan equipment on a voluntary basis. The mobile TV trial was conducted employing the Terrestrial Digital Mobile Broadcasting (T-DMB) standard (a Korean-based standard) and was aimed to evaluate the performance and features of this particular standard. Earlier trials using other competing standards namely Digital Video Broadcasting on Handheld (DVB-H) and Media FLO were conducted in 1997 by Maxis. The T-DMB trial demonstrated that the T-DMB technology is a matured technology, proven to be stable and suitable for implementation as recommended by the task group. The trial spurred substantial interest within the local players to consider this potential technology for mobile TV service roll-out. Having used equipment from international manufacturers, Malaysia is now recognised and listed in the DAB and T-DMB global map. The valuable experience gained during the trial was a feat, enabling Malaysia to share this valuable knowledge with the rest of the world. The trial which was successfully undertaken had provided valuable hands-on experience to the members.
Moving Forward The completion of the spectrum planning activity will propel and facilitate the industry to roll out commercial digital TV service in the near future. SKMM is currently ready to issue the Marketing Plan for the UHF spectrum band IV and V (470 MHz to 742 MHz) for Digital Terrestrial Television (DTT) services, for public consultation in 2009. Amongst various activities planned, the industry and public will be invited to provide their views with respect to the sharing of digital TV broadcasting infrastructure, multimedia hub operations, spectrum usage and the number of new digital TV services and applications to be offered. Such feedback will be given due consideration, which will ultimately shape the DTT
landscape in Malaysia. It is anticipated that the DTT infrastructure can be rolled out in 2010 with commercial services available by 2012. There will also be additional initiatives to be undertaken by industry players such as Asia Space and Media Prima to implement mobile TV trials using T-DMB technology on L-Band and Band III frequencies consecutively in 2009. Additionally, RTM has indicated interests to initiate the trial on Digital Audio Broadcasting using DRM (Digital Radio Mondiale, a German-based technology) and DAB + (a European-based technology). The initiatives taken thus far by both SKMM and the industry stand to enhance further efforts to create Malaysia as the communications and multimedia hub, whilst keeping abreast with worldwide trends.
Mobile Number Portability (MNP) Background Upon completion of the MNP Test Phase, SKMM commenced the Launch Phase for MNP with a Limited Live Trial (LLT) from 29 August to 14 October 2008 before going live nationwide. In carrying out the LLT, SKMM learnt from the experience of other jurisdictions which showed that launching MNP on a wide scale also brings with it potential risks. For instance, calls were not able to be made in Mexico when MNP went live just a few months before Malaysia’s launch. SKMM chose to take a measured approach so as to ensure that the implementation will run smoothly and all potential hitches could be addressed and managed during the LLT i.e. before the nationwide implementation. During the LLT, SKMM limited the porting activities to only five centres in the Klang Valley for each mobile
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operator. In turn, each of them was only allowed to accept 100 port requests per day. After a successful LLT period, MNP was then launched nationwide on 15 October 2008 and all limits on portin numbers and restrictions on locations were lifted.
customer ID, unpaid outstanding bills and the existence of supplementary lines which were not ported together.
to process Consumer Ports throughout the duration of 29 August to 31 December 2008 are as follows:
officers of the Donor and Recipient in terms of issue resolution; and b. Initial technical issues on the operator’s side especially during the early stages.
100%
These awkward issues are being addressed by the operators. Based on the efforts and also the experience gained during the first three months of MNP implementation, it is to be expected that the performance of the operators should improve further in the months to come.
Port Request
Successful Port
Port Rejected
90%
324,641
211,697
103,697
80%
95.7%
70%
Table 1: Overall Porting Figures
Non-Consumer Ports
60%
With Non-Consumer Ports (corporate clients), the porting process will take longer as it will involve a large amount of phone numbers. Hence, the maximum porting duration allowed under the MNP Industry Business Rules was ten days for the first year and this to be lessened to five days thereafter.
50% Thousands 160 140 120 100
40% Port Req Succ Port Rejected
30% 20% 10% 0%
80 60
1.7%
0.8%
0.8%
0.4%
0.6%
1 Day 2 Days 3 Days 4 Days 5 Days >5 Days
Graph 2: Chart on Time-frame for Consumer Ports
40
Overall Porting Figures The overall porting figures as at 31 December 2008 are as follows: 1) There have been 324,641 requests to port their numbers to a different operator; (these include multiple port request by Recipient operators i.e., the same number may request for port more than once after the first request has been rejected by the Donor); 2) Of the total requests, 211,697 numbers have been ported successfully; and 3) 103,697 port requests were rejected for various reasons, with the main reasons being mismatch
96.7%
It is also noted that 0.4% of the port requests went beyond the 10-day limit allowed. Based on the experience gained within the first three months of MNP implementation, it is to be expected that the performance of the operators should improve further in the months to come. We remain optimistic that such delays will be addressed and become a thing of the past.
90% 70%
Number of Days
% of Port Completed
1 Day
95.7%
2 Days
1.7%
3 Days
0.8%
Duration Taken For Porting
4 Days
0.8%
The duration taken for porting can be divided into two categories, namely the duration for Consumer Ports (individuals) and also Non-Consumer Ports (corporate clients). The two categories are distinguished as the complexity in porting process between the two categories differ significantly.
20%
5 Days
0.4%
10%
More than 5 Days
0.6%
0%
0
The following are some of the statistics based on the implementation of MNP commencing the nationwide launch up to 31 December 2008 (covering a period of about two and a half months). It includes:
100% 80%
20
Porting Activities
The time-frame taken by operators to process Non-Consumer Ports throughout the duration of 29 August – 31 December 2008 can be seen in Graph 3 below:
Aug-08
Sep-08
Oct-08
Nov-08
Dec-08
Graph 1: Pattern of Port Requests, Successful Port & Port Rejects (Monthly Tabulation)
Consumer Ports With Consumer Ports, the porting process will take less time as the total numbers involved (including those with supplementary lines) usually are limited. Hence, the maximum porting duration allowed by SKMM based on the Public Inquiry held early on was five days for the first year and this to be lessened to two days thereafter. The overall view of the time-frame taken by operators
Table 2 : Time-frame for Consumer Ports Based on Graph 2 and Table 2 above, 95.7% of all port requests for Consumer Ports were completed within one day of the port request being made (almost 80% within four hours or less). This reflects favourably on SKMM’s plan to reduce the timeframe allowed for porting. Currently, Consumer Ports account for 209,237 (or about 99%) of the total successful ports. It is important to note that 0.6% of the port requests went beyond the five-day limit allowed and these were attributed to the following reasons: a. Initial lack of co-ordination between the designated
Based on Graph 3 and Table 3, 96.7% of all port requests for Non-Consumers were completed within one day of the port request being made and this augurs well for SKMM’s plan to reduce the timeframe allowed for porting. Currently, Non-Consumer Ports only account for 2,460 (or about 1%) of the total successful ports.
60% 50% 40% 30%
10 Days
Graph 3 : Chart on Time-frame for Non-Consumer Ports
Number of Days
% of Port Completed
