DOUBLE THE SPEED, HALF THE PRICE - High-speed Broadband Becomes Affordable - MCMC

 
CONTINUE READING
DOUBLE THE SPEED, HALF THE PRICE - High-speed Broadband Becomes Affordable - MCMC
ISSUE 18

    DOUBLE THE SPEED,
    HALF THE PRICE
    High-speed Broadband Becomes Affordable
    • The National Fiberisation And Connectivity Plan    • Telecommunications Facilitated Fraud
      (NFCP)
                                                         • MCMC-MMU Virtual Reality 2018 Hackathon
    • Connecting the Nation
                                                         • Applications and Benefits of Connected Drones
    • E-Commerce Delivery Awards
                                                         • Maximising Individual and Societal Participation
    • Mutual Recognition Arrangements                      in the Digital Economy through Digital Inclusion
    • Digital Content Piracy
    • Broadband Service Through TNB Infrastructure

The Malaysian Communications and Multimedia Commission
DOUBLE THE SPEED, HALF THE PRICE - High-speed Broadband Becomes Affordable - MCMC
DOUBLE THE SPEED, HALF THE PRICE - High-speed Broadband Becomes Affordable - MCMC
4
    COVER STORY

      Double The Speed, Half The Price
                                           Contents
    FEATURES

7     The National Fiberisation And
      Connectivity Plan (NFCP)
                                           >4
12    Connecting the Nation

15    E-Commerce Delivery Awards

19    Mutual Recognition Arrangements

23    Digital Content Piracy

27    Broadband Service Through TNB
      Infrastructure

33    Telecommunications Facilitated       >12
      Fraud

38    MCMC-MMU Virtual Reality
      Hackathon 2018

43    Applications and Benefits of
      Connected Drones

47    Maximising Individual and Societal
      Participation in the Digital
                                           >27   >38
      Economy through Digital Inclusion

57    Case Example

    REGULARS
                                           >47
58    Gallery
60    Notes From All Over
62    Kaleidoscope
64    Scoreboard
DOUBLE THE SPEED, HALF THE PRICE - High-speed Broadband Becomes Affordable - MCMC
From the
Chairman’s Desk                                                                     Advisor:
                                                                                    Al-Ishsal Ishak
I am pleased to present this issue of .myConvergence to readers.
                                                                                    In-house Consultant:
                                                                                    Dato’ Mohd Ali Hanafiah Mohd Yunus
The articles featured in this issue reflect the range and breadth of the role and
                                                                                    Editor:
responsibilities of MCMC.                                                           Aisharuddin Bin Nuruddin

                                                                                    Editorial Board:
The cover story is about how broadband speeds have gone up while prices             Dr Ahmad Nasruddin ‘Atiqullah Fakrullah
have either remained the same or come down. The cooperation and support             Eneng Faridah Iskandar
                                                                                    Hjh Laila Hassan
of service providers that made this happen is surely appreciated by consumers       Mohd Zaidi Abdul Karim
who are enjoying these upgraded services.                                           Nor Akmar Shah Minan
                                                                                    Norina Yahya
                                                                                    Sharifah Firdaus S A Rahman
Notwithstanding this welcome development, industry players know that the
work of delivering faster broadband to every nook and corner of the nation will     Publication Manager:
always continue. Each summit achieved reveals, in turn, the next goals. In the      Sharifah Firdaus S A Rahman

areas of internet connectivity and communications, the next national targets
                                                                                    Publisher:
are the rollout of the National Fiberisation and Connectivity Plan (NFCP) and       Malaysian Communications and
the upcoming rollout of 5G services. Both topics are addressed in this issue and    Multimedia Commission
                                                                                    MCMC Tower 1
readers will gain a high level understanding of these two important initiatives.    Jalan Impact, Cyber 6
                                                                                    63000 Cyberjaya
                                                                                    Selangor Darul Ehsan
Another related story is the case study of a pilot project that brought
                                                                                    Tel:        +603 8688 8000
broadband connectivity to an area in a small town by making use of TNB              Fax:        +603 8688 1000
infrastructure. It highlights how much can be done when all stakeholders come       Website:    www.mcmc.gov.my
together to make things happen.
                                                                                    Publication website:
                                                                                    knowledgehub.mcmc.gov.my
As a showcase of the possibilities that arise out of these advances of network
infrastructure, this issue features an article on the use of drones. On the flip    Publishing Consultant:
                                                                                    One World Solutions Sdn Bhd
side, this issue also carries articles on Telecommunications Fraud and Digital
Piracy, illustrating the unwanted side effects of advances in network services.     Printer
Criminals are committing increasingly sophisticated crimes and the need             Percetakan Jiwabaru Sdn Bhd

for vigilance, effective spread of information and increased levels of digital      Copyright 2019: Malaysian Communications and
                                                                                    Multimedia Commission
literacy become increasingly important. MCMC, with its many partners and
                                                                                    All rights reserved. No part of this publication
collaborators is in the forefront of activities to combat these menaces.            may be reproduced or transmitted in any form or
                                                                                    by any means, electronic or mechanical, including
                                                                                    photocopy, recording or any storage or retrieval
                                                                                    system, without the permission in writing from
I also recommend to readers the detailed report of the 2018 MCMC Research           the publisher. All rights to brand names, registered
                                                                                    trade marks, logos and images remain with their
Symposium with the theme: ‘Maximising Individual and Societal Participation         legal owners.
                                                                                    The use of any images, trade names and trademarks
in the Digital Economy through Digital Inclusion.’ This symposium brought           in this publication shall not be construed as an
                                                                                    endorsement by MCMC of any views, products
together very knowledgeable participants who shared insights and valuable           or services offered by the owners of the same. As
                                                                                    such, the inclusion of these images, trade names
experiences on this very important subject.                                         and trademarks as well as the views and opinions of
                                                                                    writers expressed in this publication may not be used
                                                                                    for advertising or product endorsement purposes,
                                                                                    implied or otherwise.
Warmest regards
Al-Ishsal Ishak
DOUBLE THE SPEED, HALF THE PRICE - High-speed Broadband Becomes Affordable - MCMC
DOUBLE THE SPEED, HALF THE PRICE - High-speed Broadband Becomes Affordable - MCMC
COVER STORY

    DOUBLE THE SPEED,
    HALF THE PRICE
    HIGH-SPEED BROADBAND BECOMES AFFORDABLE

    Janakky Raju
    jan@mcmc.gov.my

    R
              eliable and affordable high-speed broadband       growth and development, broadband is also crucial for
              is essential to the development of a nation.      social inclusion and cultural enhancement.
              Broadband is an enabler for economic growth
              as it can transform and promote innovation and    Recognising the importance of availability and adoption of
    change in many activities such as business and commerce,    broadband, government and regulators around the world
    education and health. Broadband can also empower rural      have implemented various strategies to increase coverage
    communities and reduce the gap between societies. It        of high-speed broadband networks and the adoption
    is good news then to have fixed line broadband service      of broadband services. Malaysia is no different and has
    providers providing higher speeds at the same or lower      developed various plans and strategies over the last
    prices to consumers.                                        decade to improve the coverage of high-speed broadband
                                                                with projects such as High Speed Broadband (HSBB) phase
    Various studies have been carried out to show that there    1, HSBB phase 2 and suburban rural broadband. A study by
    is a correlation between broadband penetration and          World Bank in 2018 on Malaysia’s Digital Economy showed
    the gross domestic product (GDP). For example, a study      that as at 2016, Malaysia was lagging behind other ASEAN
    carried out by the World Bank in 2016 entitled ‘Exploring   countries with lower per capita income such as Vietnam
    the Relationship between Broadband and Economic             and Thailand in terms of broadband subscriptions per 100
    Growth’ concluded that fixed broadband penetration          inhabitants. The study also showed that Malaysians, in
    would increase GDP growth by 1.21% in developed             general, pay more than most consumers in other ASEAN
    economies and 1.38% in developing ones. In addition to      countries for fixed and mobile broadband.

4   .myConvergence
DOUBLE THE SPEED, HALF THE PRICE - High-speed Broadband Becomes Affordable - MCMC
Among others, the World Bank study noted there was                      LOWER RETAIL PRICES
slow development in the fixed market and postulated that                In parallel with the speed upgrade initiative, MCMC
Malaysia needs to enhance the quality and affordability of              also pursued strategies to improve affordability and
broadband services and improve access to ultrafast fixed                adoption of broadband services. MCMC considered
broadband networks.                                                     regulating retail prices but recognised that while it would
                                                                        increase the adoption of broadband services, it could
                                                                        have consequential adverse long term effects. Also, in
DOUBLE THE SPEED AT THE SAME                                            keeping with international best practices, most regulators
                                                                        refrain from regulating retail prices to encourage service
PRICE
                                                                        providers to develop innovative new packages that will
Since price is a key driver to increase broadband
                                                                        benefit consumers. Freedom in setting retail prices
penetration, during the 2017 Budget announcement, the
                                                                        will also enable service providers to react promptly to
then Prime Minister announced that effective January
                                                                        competitors pricing strategies, and this will stimulate
2017, fixed-line broadband service providers would offer
                                                                        competition in the market.
services at a higher speed for the same price. For example,
a subscriber of 5Mbps package at RM149 will enjoy twice
                                                                        Due to the shortcomings associated with regulating retail
the speed, that is, 10Mbps. The objective of this initiative
                                                                        prices, MCMC pursued regulation of wholesale prices.
is to ensure consumers enjoy lower per Mbps fixed
                                                                        Regulating wholesale prices is in line with the ‘ladder
broadband prices in Malaysia, which in turn will provide
                                                                        of investment theory’ where new entrants can enter the
better access to various services and enhance productivity
                                                                        market at a lower rung of the ladder by acquiring wholesale
and innovation.
                                                                        services from the incumbent operator. According to the
                                                                        theory, eventually, the new entrant will climb up the
Under this initiative, the focus was to upgrade the
                                                                        ladder by investing in infrastructure.
Streamyx and Unifi subscribers to higher broadband
speeds, while retaining the prices at the same level.
                                                                        However, regulating the prices of wholesale services has
Between March 2017 and February 2018, the speed upgrade
                                                                        its pitfalls. If the wholesale prices are too high, it may
was carried out in stages to facilitate smooth migration. As
                                                                        hinder new entrants from entering the market as they may
at February 2018, a total of 1,046,232 Streamyx and Unifi
                                                                        not be able to compete with the incumbent operator in the
customers, comprising 935,897 residential and 110,335
                                                                        downstream market. Conversely, if the wholesale prices
business customers had been upgraded. A key challenge
                                                                        are too low, it will be a disincentive for the incumbent
during this stage was the inability to upgrade a substantial
                                                                        operator to invest in infrastructure. Therefore, it is critical
amount, about 38% of Streamyx customers to a higher
                                                                        to ensure the wholesale prices send the right signals to
speed, mainly due to technical constraints.
                                                                        the market.

                 350                   329
                                                                       299                               299
                 300

                 250

                                                                                                                      180
    Price (RM)

                 200
                                                                                       149
                       139                         139
                 150                         129                             129
                                                                                             99
                                                          89                                                                 80
                 100         79

                 50

                  0
                       30Mbps          100Mbps     30Mbps          100Mbps            100Mbps        500Mbps           40Mbps

                                  TM                           Maxis                              TIME                 Celcom

                                                         May-18              Apr-19

Figure 1: Comparison of Broadband Prices Before and After MSAP

                                                                                                                            .myConvergence   5
DOUBLE THE SPEED, HALF THE PRICE - High-speed Broadband Becomes Affordable - MCMC
300Mbps                                                          100Mbps

     1400                                                            4000
     1200
     1000                                                            3000

      800
                                                                     2000
      600
      400
                                                                     1000
      200
         0                                                              0
              Malaysia    Indonesia      Brunei      Lao PDR                Malaysia Indonesia Brunei Thailand Philippines Lao PDR

                         Jun-18           Jun-19                                              Jun-18           Jun-19

    Figure 2: Comparison of Broadband Prices in ASEAN Countries

    MCMC commenced developing cost models in 2017 to
    determine wholesale prices for some regulated facilities
    and services. In carrying out the study, MCMC adopted
    a transparent process where service providers were               All service providers in the
    consulted along the way, and their feedback was taken into
    account to finalise the models. Based on the outcome from        market, beginning with TM,
    the models, MCMC issued a Commission Determination
    on Mandatory Standard on Access Pricing (MSAP). Among
    others, MSAP determines prices for wholesale HSBB
                                                                     started announcing lower
    services from 2018 to 2020.
                                                                     retail prices starting from
    Since the wholesale prices determined by MCMC in the
    MSAP are lower than the commercially negotiated prices,          June 2018. At the same time,
    it had its intended effect of driving retail prices lower. All
    service providers in the market, beginning with TM, started      service providers also started
    announcing lower retail prices starting from June 2018.
    At the same time, service providers also started offering        offering higher speeds at the
    higher speeds at the same prices. As a result, 10Mbps
    broadband services priced at RM129, which was the
    entry-level HSBB service, moved to 30Mbps priced as low
                                                                     same prices.
    as RM79. At the same time, new packages at substantially
    higher speeds such as 800Mbps and 1Gbps were offered in
    the market. Figure 1 depicts the price reduction.

                                                                     significantly from 26.2Mbps in June 2018 to 68.54Mbps
                                                                     in May 2019. In tandem with the increase in average
    IMPACT OF LOWER PRICES AND                                       download speed, Malaysia’s ranking improved from 53 in
    HIGHER SPEED                                                     June 2018 to 36 in May 2019.
    Consumers in Malaysia are now generally enjoying higher
    speed fixed broadband services at lower prices. About            When the fixed broadband prices are compared within
    70% of high-speed broadband subscribers are enjoying             the ASEAN region, the price of the entry-level package
    speeds of at least 100Mbps. This is substantially higher         of 30Mbps is currently the cheapest in the ASEAN region.
    than the speed of 30Mbps and 10Mbps that subscribers             When the prices of 100Mbps packages in Malaysia are
    were experiencing previously. At the same time, there is         compared to ASEAN countries, Malaysia is positioned in
    also growth in the high-speed broadband subscription             second place, behind Thailand.
    rate. Between August 2018 and February 2019, there has
    been an increase of 12% in residential and 17% in business       While the recent initiatives by MCMC have seen positive
    high-speed broadband subscriptions.                              results in the fixed broadband market, MCMC will via
                                                                     National Fiberisation and Connectivity Plan (NFCP)
    As a result of the initiatives by MCMC, the Speedtest            continue to enhance high-speed broadband coverage in
    Global Index has shown that the average download speed           Malaysia as this is critical for the nation’s move towards a
    for fixed broadband services in Malaysia has increased           digital economy.

6   .myConvergence
DOUBLE THE SPEED, HALF THE PRICE - High-speed Broadband Becomes Affordable - MCMC
FEATURE

  THE NATIONAL
  FIBERISATION AND
  CONNECTIVITY PLAN (NFCP)
  Muhammad Razali Anuar
  razali@mcmc.gov.my

“Access to the Internet is not                 THE IMPORTANCE OF BROADBAND
                                               The United Nation’s Broadband Commission on
a privilege nor a luxury; it is a              Sustainable Development, in its 2018 Report1 highlighted
necessity and a survival tool.                 that broadband Internet is a vital infrastructure, ‘as
                                               essential as water and electricity networks’. Broadband
Unfortunately, the adoption rate               infrastructure is also crucial in supporting the United
of digital technologies, whether               Nation’s vision for Sustainable Development. Moving
                                               forward, broadband infrastructure is becoming more
within the government or industry,             ‘invisible and integrated utility networks or smart
is lagging far behind. This is                 infrastructure’, in which more services such as e-health,
                                               transportation, education and disaster relief will rely on.
worrying, not least because we
will lose our competitiveness if we            In     Malaysia,   providing    world-class   broadband
                                               infrastructure and services has always been a priority. In
don’t address this issue urgently.”            facilitating the change from analogue to convergence-
                                               based digital networks, the Government passed the
YB Minister Gobind Singh Deo’s speech at the   Communications and Multimedia Act (Act 588) in 1998.
“New Dawn Conference”, 9 October 2018          1
                                                h t t p s : / / w w w. i t u . i n t / d m s _ p u b / i t u - s / o p b / p o l / S - P O L -
                                               BROADBAND.19-2018-PDF-E.pdf

                                                                                                                           .myConvergence        7
DOUBLE THE SPEED, HALF THE PRICE - High-speed Broadband Becomes Affordable - MCMC
Five years after, 3G networks and services were deployed,          and Multimedia Commission (MCMC) reported that the
    making Malaysia as among the first in the world to                 broadband penetration rate was at 78.7%2, exceeding the
    embrace the initial stages of data-driven mobile services.         10th Malaysia Plan target of 75%3. By Q4 2018, the overall
    The Government continued its initiatives; works were               broadband penetration in Malaysia stood at 121.1% per
    underway to ensure that Malaysians could also have                 100 population4.
    access to high-speed fibre-based networks. In 2008, the
    High-Speed Broadband (HSBB) network was deployed in
    selected areas in Klang Valley and other areas. By 2010,           WHAT NEXT?
    the HSBB was launched, allowing Malaysians access to               The 11th Malaysia Plan (2016-2020) highlighted that
    high-speed broadband services via fibre optic connectivity         coverage, quality and affordable broadband services
    in their homes.                                                    are important to move Malaysia into a digital economy.
                                                                       The subsequent review of the 11th Malaysia Plan in
    Nonetheless, the race for broadband did not stop there.            October 2018 took into consideration the attainment of
    Since then, other countries have also caught up and began          the targets set earlier and recommended improvements
    to deploy similar infrastructure and services. Advances in         in fibre coverage and commercial deployment for
    technologies drove operators to continue to improve and            broadband coverage via the National Fiberisation and
    to upgrade their digital infrastructure and services. The          Connectivity Plan (NFCP). The review also recommended
    introduction of data-hungry applications and services              improvements in digital infrastructure planning, which
    such as video-on-demand (VoD), Internet of Things (IoT),           included the need to address Right-of-Way permits and
    etc., further spurred the demand for more and better               complex procedures, as well as to amend relevant laws for
    infrastructure and services.                                       broadband to be recognised as a public utility.

    Soon after the introduction of HSBB, the Government                The World Bank highlighted that the ‘internet promotes
    instituted measures on how to improve broadband                    inclusion, efficiency and innovation’5. In addition to
    connectivity and coverage in the 10th Malaysia Plan                lowering the cost of information, the internet also reduces
    (2010-2015). By 2015, the Malaysian Communications                 time and distance, which today may be taken for granted.
                                                                       The International Telecommunication Union (ITU), in its

                                                      PERFORMANCE AND
                 TARGETS                                 CHALLENGES
                                                                                                     WAY FORWARD

        Broadband services                       Broadband services                           Broadband services
         • 95% in populated areas by               • 92.1% in populated areas by 2017           • Improve fibre coverage and
           2020                                                                                   commercial deployment for
         • 100Mbps in all households in                                                           broadband coverage via the NFCP
           state capitals and selected high
           impact growth areas by 2020
         • 20Mbps in 50% of households in
           suburban and rural areas by 2020

        Broadband affordability                  Broadband affordability                      Broadband affordability
         • Reduction of broadband cost to          • Broadband price at 1.1% of Gross           • Ensure affordability for broadband
           1% of GNI by 2020                         National Income (GNI) as at 2017             services while ensuring continued
                                                   • Mandatory Standard on Access                 investments
                                                     Pricing (MSAP) implemented in Jan
                                                     2018

        Infrastructure planning                  Infrastructure planning                      Infrastructure planning
         • Collaboration between state             • Gazette of Uniform Building By-            • Enforce UBBL amendment for new
           and local authorities on the              Laws (UBBL) by all states except             developments of commercial and
           planning and deployment of                Wilayah Persekutuan                          residential properties
           digital infrastructure                  • Right-of-Way (RoW) and permitting          • Amend relevant laws for
         • Smart cities deployment                   challenges by local authorities              broadband to be recognised as a
                                                   • Exclusivity in planning and approval         public utility
                                                     resulting in increased cost and            • Address RoW, permits and
                                                     quality of service                           complex procedures
                                                   • Inconsistency in local procedures
                                                     delay roll-out initiatives

    Figure 1: Adapted from the Mid Term Review of the 11th Malaysia Plan (http://www.kabinet.gov.my/bkpp/pdf/Kajian_separuh_penggal_
    RMK11.pdf)
    2
      https://www.mcmc.gov.my/skmmgovmy/media/General/                 5
                                                                         http://documents.worldbank.org/curated/en/8969714681949
    pdf/1Q16_info_graphic.pdf                                          72881/310436360_20160263021502/additional/102725-PUB-
    3
      http://www.pmo.gov.my/dokumenattached/RMK/RMK10_Mds.             Replacement-PUBLIC.pdf
    pdf
    4
      https://www.mcmc.gov.my/skmmgovmy/media/General/
    pdf/4Q18.pdf

8   .myConvergence
2016 Report (‘The Economic Contribution of Broadband,            realities, smart dust, blockchain, etc., will benefit from
Digitisation and ICT Regulation’) further quantified the         the availability of higher speed broadband; government
impact of broadband on the overall economy. In the 2016          services can be further improved and delivered with
Report, ITU found that while fixed broadband “has had a          more confidence with better speed and reduced latency,
significant impact to the world economy during the last          while businesses can transact across economies with
seven years (2010 – 2017)”, the impact is “higher in less        streamlined processes and payment systems, all facilitated
developed countries than in more developed”6. The 2016           by a comprehensive digital infrastructure. In this regard,
Report also concluded the impact of digitisation on GDP          the NFCP will provide clarity in terms of strategic
and productivity as follows:                                     direction for the implementation policies or initiatives
                                                                 that support the digital economy, while creating a
     First, the economic impact of digitisation is higher than   conducive environment to facilitate the adoption of
     the one found for fixed broadband and similar to mobile     future technologies.
     broadband. An increase of 1% in the digital ecosystem
     development index results in a 0.13% growth in GDP          On 9 October 2018, at the New Dawn Conference, the
     per capita.                                                 Minister of Communications and Multimedia, YB Gobind
                                                                 Singh Deo announced8 that MCMC was developing the
     Second, the impact of the digital ecosystem on more         NFCP. The Minister also announced the initial targets
     advanced economies is higher than in developing             under the NFCP as follows:
     countries. An increase of 1% in the digital ecosystem
     development index yields an increase of 0.14% in per        1. 98% broadband coverage at a minimum of 30 Mbps in
     capita GDP for OECD countries, while the impact of             populated areas by 2023
     a similar change in non-OECD countries will have a          2. Fibre first policy
     0.10% increase.                                             3. Gigabit-speed Internet services for selected high-
                                                                    impact and strategic industrial areas by 2020
     Third, the digital ecosystem has an economic impact on      4. 5G New Radio testbeds in Cyberjaya and Putrajaya
     productivity (both labour and total factor). An increase    5. Copper network to be phased out by 2023
     in the digitisation index of 1% yields an increase in       6. Fibre network in 70% of schools, government offices,
     labour productivity of 0.26% and in the total factor           hospitals, clinics, police stations and fire stations by
     productivity of 0.23%.                                         2022

                                                                 The Minister also noted that while the NFCP is a “fibre
A NEW DIRECTION FOR MALAYSIA’S                                   first plan…it is technology agnostic.  This means that we
DIGITAL INFRASTRUCTURE                                           will use any technology possible to solve connectivity
In September 2018, the World Bank issued a report                problems.”
entitled ‘Malaysia’s Digital Economy: A New Driver for
Development’7, which said that ‘Ensuring that Malaysia’s
digital infrastructure provides ubiquitous, reliable, and        THE PUBLIC CONSULTATION ON THE
ultrafast broadband internet service is key to unlocking         DRAFT NFCP
the potential of the digital economy’. With a ‘highly            Based on the initial targets, the MCMC undertook a Public
concentrated’ fixed broadband market, there is also a need       Consultation exercise9 on 29 October 2018 with licensees
to address market structure issues. The World Bank also          and other interested parties on the issues, challenges,
emphasised the need to address ‘state-level regulation           strategies and the expected outcomes of the NFCP.
for connectivity infrastructure’, which have ‘added to           During the Public Consultation, MCMC highlighted the
the cost of network buildout, limiting investment and            need to drive the policy direction on communications
undermining competition.’                                        infrastructure as a public utility to ensure commitment
                                                                 from state and local authorities to reduce the
It is important then that Malaysia embarks on another            implementation cost and to assist in infrastructure
journey to further improve its digital infrastructure. A         deployment, as well as to ensure sufficient investment to
comprehensive digital infrastructure available to the            drive the roll-out of communications infrastructure.
different sectors of the economy, the Rakyat and the
Government will become the utility that facilitates and          The Public Consultation exercise, which was attended
improves the well-being of the country. New technologies         by 247 attendees from 145 organisations, garnered 31
such as the Internet of Things (IoT), IR 4.0, augmented          written submissions from licensees, individuals, as well

6
  https://www.itu.int/en/ITU-D/Regulatory-Market/Documents/      8
                                                                   https://www.kkmm.gov.my/pdf/ucapan/2018/181009_SPEECH_
FINAL_1d_18-00513_Broadband-and-Digital-Transformation-E.        YBM_A_NEW_DAWN.pdf
pdf                                                              9
                                                                   https://www.skmm.gov.my/skmmgovmy/media/General/pdf/
7
  World Bank Group. 2018. Malaysia’s Digital Economy: A New      Industry-Consultation_NFCP_General.pdf
Driver of Development. Washington, DC: World Bank. License:
Creative Commons Attribution CC BY 3.0 IGO.

                                                                                                                .myConvergence   9
as other interested parties10. The feedback to the Public                   technologies; and
     Consultation covered the following issues:                               3. Provide clarity in terms of strategic directions for
                                                                                 initiatives to support the digital economy & adoption
     1.         Issues concerning Federal/State/Local Authorities;               of future technology.
     2.         Infrastructure Planning and Deployment;
     3.         Spectrum related issues;                                      The revised goal of the NFCP is “to provide robust,
     4.         Access/Competition;                                           pervasive, high quality and affordable digital connectivity
     5.         USP/Funding;                                                  for the well-being of the people and progress of the
     6.         Consumer related matters;                                     country.” The revised targets are as follows:
     7.         Technology; and
     8.         Other matters.                                                1. Entry-level fixed broadband package at 1% of GNI by
                                                                                 2020;
                                                                              2. Gigabits availability in selected industrial areas by
     THE NATIONAL FIBERISATION AND                                               2020, and in all State Capitals by 2023;
                                                                              3. 100% availability for premises in State Capitals and
     CONNECTIVITY PLAN (NFCP)                                                    selected high impact areas with a minimum speed of
     Based on the initial targets set out by YB Minister
                                                                                 500Mbps by 2021;
     during the New Dawn Conference on 9 October 2018
                                                                              4. 20% availability for premises in suburban and rural
     and the feedback that MCMC received during the Public
                                                                                 areas with up to 500Mbps by 2022;
     Consultation exercise, MCMC made improvements to
                                                                              5. Fibre network passes 70% of schools, hospitals,
     the Draft NFCP, including the goal, strategies, targets
                                                                                 libraries, police stations and post offices by 2022;
     and action plans, as well as initiating necessary internal
                                                                              6. Average speed of 30Mbps in 98% of populated areas by
     programmes / initiatives to achieve the targets.
                                                                                 2023; and
                                                                              7. Improve mobile coverage along Pan Borneo Highway
     In general, the 5-year plan under the NFCP aims to:
                                                                                 upon completion.

     1. Address issues that hinder the widespread availability
                                                                              In order to meet the goal and targets, MCMC outlined the
        of high quality and affordable digital connectivity;
                                                                              following strategies (‘MORE strategies’), and the related
     2. Support the needs of the country moving forward
                                                                              action plans:
        & harness opportunities offered by new services /

                     Manage funding for            Optimise         digital    Regional           and       Enhance     connectivity
                     NFCP from a variety of        infrastructure              international networks       in high impact socio-
      Strategies

                     sources in a prudent and      development         and     are           connected      economic sectors such
                     sustainable manner; and       deployment nationwide,      extensively        with      as education, agriculture
                     leverage on relevant          and clear impediments       domestic networks            and healthcare, small
                     regulatory policies and                                                                and medium enterprises
                     instruments       where                                                                and underserved areas.
                     necessary
                     • Assessment on suitable      • Addressing issues on • Promote investments in • Promote               balanced
                       funding mechanisms            site acquisition/right of  submarine cables and      growth in all states
      Action Plans

                     • Assessing components          way (RoW)                  encourage deployment • Specific initiatives for
                       that contribute to wider    • Upgrading of existing      of landing centres in     Sabah and Sarawak
                       access to broadband           infrastructure        and  Malaysia. Significantly • Appropriate technology
                       services                      improving deployment       enhance      submarine    to ensure nationwide
                     • Review       of       USP     of new infrastructure      cable      connectivity   broadband        coverage
                       Framework                   • Promote infrastructure     between      Peninsula,   which supports the
                     • Enhance          existing     sharing                    Sabah and Sarawak         requirement of high
                       competition provisions      • Optimum allocation of                                impact socio-economic
                       and other regulatory          spectrum                                             sectors      such       as
                       instruments, such as        • Facilitate future services                           education, agriculture
                       codes, standards etc.         /technology                                          and health care, small &
                                                   • Effective measurement                                medium enterprises and
                                                     of    speed/quality     of                           underserved areas
                                                     service for broadband                              • Ensuring availability of
                                                   • Promote      competition                             fibre networks in key
                                                     and spur investments (in                             areas, such as schools,
                                                     key strategic areas)                                 hospitals,       libraries,
                                                   • Strategic review of the                              police stations and post
                                                     communications market                                offices
     Table 1: NFCP Strategies & Action Plans

     10
       https://www.mcmc.gov.my/skmmgovmy/media/General/pdf/NFCP-Industry-Consultation-Report-(29-March-2019).pdf

10   .myConvergence
‘Ensuring that Malaysia’s digital infrastructure provides ubiquitous,
reliable, and ultrafast broadband internet service is key to unlocking
the potential of the digital economy’.
World Bank Report - ‘Malaysia’s Digital Economy : A New Driver for Development’

Based on the action plans, MCMC has outlined a roadmap of key initiatives that it will undertake.
         Area / Initiative                                             Expected Outcome
 Promoting investments                     • Seek appropriate approaches in promoting investments into the industry
 Engagements with State                    • Seek resolution on Right-of-Way issues and approval for communications
 Governments and Local                       infrastructure
 Authorities                               • Recognition of communications infrastructure as a public utility
 Spectrum                                  • Setting up of 5G Testbeds in Cyberjaya and Putrajaya, with 2 showcases in April
                                             and October 2019
                                           • Spectrum optimisation study
 Market Study                              • Strategic review of the communications market
 Targeted / Innovative                     • Encouraging commercial and innovative infrastructure roll-out in targeted areas
 Infrastructure Deployment
Table 2: Key initiatives with expected outcomes

MOVING FORWARD                                                      is important that ubiquitous, affordable and quality digital
The NFCP is an evolving document that will continue to              infrastructure and services are available to the Rakyat.
be improved, based on the feedback, requirements and                Nonetheless, building this important infrastructure will
challenges in the deployment of digital infrastructure. For         require support from all stakeholders.
Malaysia to be at the forefront of the digital economy, it

Note: Additional information can be obtained from the NFCP website at nfcp.my

                                                                                                                    .myConvergence   11
FEATURE

     CONNECTING
     THE
     NATION
     Long Hui Ching
     hclong@mcmc.gov.my
     Nik Amir Nik Husideen
     amir.husideen@mcmc.gov.my

     A
                t an investors’ conference in Kuala Lumpur in        With this end in mind, the Minister announced that
                October 2018, the Minister of Communications         Cyberjaya and Putrajaya would become 5G testbed
                and Multimedia Malaysia YB Gobind Singh Deo          areas from November 2018 for one year. Following
                outlined his vision for a new digital Malaysia       this announcement, the Malaysian Communications
     where internet connectivity is available to anyone,             and Multimedia Commission (MCMC) issued a call for
     anywhere and anytime. It is a society where almost              collaboration for trials and demonstrations of 5G activities
     all transactions can be completed online, quickly and           in Putrajaya and Cyberjaya.
     securely.
                                                                     MCMC also took steps to form a National 5G Task Force
     For this vision to become a reality, Malaysia needs high-       on 21 Nov 2018, in recognition of the distinctiveness of
     quality, world-class infrastructure at affordable prices        5G technology compared to 4G, as well as the different
     to turn this vision into reality. The roadmap towards           challenges that need to be considered. These include 5G
     achieving this vision is in the 5-year National Fiberisation    spectrum management and allocation, infrastructure
     and Connectivity Plan (NFCP). While it is a fibre first plan,   planning, identification of 5G applications and use
     it is also a connectivity plan that is technology agnostic      cases that are most relevant for the country, and most
     where any suitable technology can be used to provide the        importantly, driving the adoption of 5G for productive use
     necessary connectivity via a holistic approach. Indeed,         by both the public and private sectors. Due to the diverse
     one of the action items identified under the Plan is the        range of issues involved, a multi-stakeholder approach in
     need for a policy position on ensuring the readiness and        the planning for 5G deployment is crucial.
     timely deployment of 5G technology.

12   .myConvergence
The Task Force member organisations came from relevant              2025. This means great opportunities for service providers
industries, equipment vendors, business associations,               in terms of their future revenue growth if they can find
academia, Ministries and agencies, as well as from MCMC             ways to monetise it.
itself so that the needs of all parties are taken into account
in the development of policies on 5G implementation.                In Malaysia, the Government envisages the NFCP to
                                                                    be the catalyst to improve broadband quality, expand
Thus far, only a few countries have developed plans                 fibre networks to support the future needs of Malaysia’s
to implement 5G, such as the United States, the United              digital economy, ensure access to the Internet for all and
Kingdom, Australia, and India. International organisations          reduce broadband prices. While the NFCP’s main focus
like the International Telecommunication Union (ITU)                is on connecting the nation through fibre, the inherent
and the European Union too have embarked on similar                 advanced capabilities of wireless 5G technology will
initiatives. The World Radio Conference, that will meet             complement where the deployment of wired infrastructure
in November 2019, is expected to discuss additional                 is not possible.
spectrum for 5G networks.

Discussions on standards for 5G are still in progress and           OBJECTIVES OF THE 5G TASK FORCE
are expected to be finalised only in 2020. Nevertheless,            The formation of a 5G Task Force is one of the action
ITU has defined three primary use cases as follows:                 items under the NFCP. Its main objective is to study
                                                                    and recommend to the Government a holistic 5G
• Enhanced Mobile Broadband (eMBB) to deal with                     implementation strategy. Specifically, it is expected to
  hugely increased data rates, high user density and very           study requirements particular to 5G networks, service
  high traffic capacity for hotspot scenarios as well as            coverage, identify and recommend ways to overcome
  seamless coverage and high mobility scenarios with                regulatory or technical challenges and propose realistic
  improved data rates.                                              implementation timelines. Desired outcomes from this
• Massive Machine-type Communications (mMTC) for                    Task Force include:
  the Internet of Things (IoT) such as sensors that require
  low power consumption and low data rates for very                 • A way to ensure critical resources such as spectrum are
  large numbers of connected devices.                                 available on time;
• Ultra-reliable and Low Latency Communications                     • Support for deployment of infrastructure, services and
  (URLLC) to cater for safety-critical and mission -critical          devices that are fit-for-purpose;
  applications that include industrial IoT appliances and           • Identify relevant regulatory impediments, use-case
  autonomous machines.                                                scenarios, consumer protection matters, and security
                                                                      concerns;
With 5G technology enabling new services and spurring               • Guide Malaysia’s overall adoption of 5G technology for
new data demand, Bell Labs Consulting projects that there             the benefit of the nation; and
will be a 25x to 82x increase in wireless data demand by            • Support the NFCP’s target to achieve gigabit availability.

                                                         Task Force Chairman
                                                                MCMC

                                                     Task Force Deputy Chairman
                                                               Industry

                                    Secretariat                                   Advisor
                                      MCMC                                 MCMC Commission Member

       5G Test Bed
         MCMC

                                                                           Spectrum
      Business Case                          Infrastructure              Management &
                                                                                                            Regulatory
        Industry                                Industry                   Allocation
                                                                                                             Industry
                                                                            Industry
Figure 1: National 5G Task Force Structure

                                                                                                                    .myConvergence   13
WORK GROUP                                                    FOCUS AREAS
      Business Case                       • Economic areas and benefit to the nation, i.e. GDP growth, creation of new jobs, etc.;
                                          • User trends, requirements and demand studies - industry and the general public; and
                                          • Proposals to encourage 5G adoption.
      Spectrum Management              & • Current progress for spectrum allocation at ITU, Asia Pacific Telecommunity (APT)
      Allocation                           and in Malaysia;
                                         • Required bandwidth to support national targets;
                                         • Identify spectrum bands for Malaysia; and
                                         • Timeline for spectrum allocation.
      Infrastructure                      • Infrastructure requirements and coverage for optimum 5G deployment for different
                                            services – e.g. retail, wholesale, consumer, industry;
                                          • The gap to bridge between current and future 5G network in terms of service, expected
                                            cost, challenges;
                                          • Infrastructure planning, approval and addressing right-of-way issues; and
                                          • Strategy to deliver 5G coverage to rural areas.
      Regulatory                          • How to accommodate future business models for network providers and other relevant
                                            stakeholders;
                                          • Technical standards to be adopted;
                                          • The optimum number of mobile operators;
                                          • Constraints in current regulatory frameworks related to communications, i.e.
                                            competition, access, consumer protection, security, licensing, state governments and
                                            local council policies etc.; and
                                          • Proposed improvements to current regulatory frameworks, including regulatory
                                            frameworks other than communications that may impact 5G applications such as
                                            e-healthcare.
     Table 1: Task Force Work Groups

     The Task Force is expected to complete their study and             The Task Force held its kick-off meeting on 21st November
     provide a comprehensive report on 5G Key Challenges                2018 and is scheduled to meet once a month. It is also
     and 5G Nationwide Implementation Plan to MCMC and the              expected to provide quarterly progress reports to MCMC
     Minister by the fourth quarter of 2019.                            and the Minister. As at 30th July 2019, the Task Force has
                                                                        118 member organisations from the public and private
                                                                        sectors comprising licensees, vendors, associations,
     TASK FORCE STRUCTURE                                               NGOs, academia, ministries and agencies, and MCMC.
     In a departure from the usual policy formulation approach
     where the public is consulted on pre-determined questions,         Numerous sub-work groups have also been established by
     MCMC decided to form the Task Force and let the relevant           each of the four work groups for an even more in-depth
     stakeholders lead their information gathering, study,
                                                                        discussion. For example, under the Business Case work
     public consultation, evaluation and recommendation
                                                                        group, there are sub-groups for nine 5G applications such
     based on a Terms of Reference. Nevertheless, MCMC
                                                                        as smart transport, agriculture, healthcare, manufacturing
     remains as the chair of the Task Force and an MCMC
                                                                        and education.
     Commission member has been appointed as its Advisor.

                                                                        A series of activities including workshops with specific
     The Task Force is supported by four working groups with
                                                                        target groups have been planned to ensure continued
     specific focus areas and one work group to manage 5G
                                                                        engagement and to increase awareness of the benefits
     trials and testbed applications. The four working groups
                                                                        of 5G applications across various industry sectors in the
     led by industry are responsible for these broad areas:
                                                                        country.
     i.     Business Case;
     ii.    Infrastructure;                                             The involvement of all stakeholders and the clear mandate
     iii.   Spectrum Management and Allocation; and                     given to the Task Force will ensure that the best possible
     iv.    Regulatory.                                                 path to 5G implementation will be determined for the
                                                                        nation.
     The organisation of the Task Force is illustrated in
     Figure 1.

14   .myConvergence
FEATURE

Kasthuri Sri Tharan
kasthuri.sritharan@mcmc.gov.my

T
         he E-Commerce Delivery Awards (EDA),                The Best Industry Role Model Award was introduced in
         organised by the Malaysian Communications           2018 to acknowledge and reward outstanding individuals
         and Multimedia Commission annually to               or heroes who were involved in daily operations. The
         celebrate the high achievers in Malaysia’s postal   winner for this new category was Mr. Md Rejab Bin Chin,
and courier industry was held at the Majestic Hotel, Kuala   a 48-year-old Operations Operator in Nationwide Express
Lumpur on 11th October 2018. The EDA was created in 2017     Courier Services Bhd. Mr. Rejab showed exceptional
as an instrument to strengthen efforts to raise industry     work ethics and spirit in performing his daily tasks.
standards in line with the rise of Malaysia’s e-commerce.    His determination and carefree attitude towards life’s
The inaugural event saw an overwhelming response             challenges, despite being wheelchair bound with special
from the industry players in terms of participation and      needs, is a motivation for all those who work with him.
sponsorship, and the same enthusiasm was shown for EDA       He is even his own mechanic for his three-wheeled
2018.                                                        motorcycle.

EDA 2018 bestowed 10 awards to outstanding individuals       The other finalists for the Best Industry Role Model
and companies in six different categories, namely the        Award, also had stories of dedication that were highly
Delivery Excellence Award, Customer Service Excellence       inspirational and perhaps even tear-jerking as well.
Award, Best Innovation Award, Best Corporate Social          Corporal Azizul Bin Aziz, an Auxiliary Police officer in Pos
Responsibility Award, Best Industry Role Model Award,        Malaysia Berhad, had managed to save the life of a suicidal
and Road Safety Excellence Award.                            young lady by talking her out of jumping into Sungai

                                                                                                             .myConvergence   15
Kelang; Mr. Muhammad Firdaus Bin Wahab, a customer              in Pahang, who walked through knee-deep water when
     service personnel, who went out of his way to search the        the van he was driving was unable to move through the
     operations hub for an urgent shipment that was delayed          flood waters, just to ensure the sacks containing letters
     and personally delivered it directly to the customer at 5 in    and mail would reach their destinations on time.
     the morning; and Mr. Muhammad Bin Setapa, a postman

                                                            AWARDS

      Delivery Excellence Award

      The Delivery Excellence Award bestows the Best Delivery Performance title to the organisation that excels in speed and
      reliability in their delivery. The finalists selected for this award are based on independent measurements conducted by a
      qualified body appointed by the MCMC. The measurement is part of the yearly exercise where the top ten courier service
      providers’ average transit time for delivery is measured. The measurement is conducted for deliveries within and across
      five major locations; Penang, Klang Valley, Johor Bahru, Kuching and Kota Kinabalu, and with a sample size of 200 for
      each company.

      Customer Service Excellence Awards

      The Customer Service Excellence Awards recognises the Best Customer Service – Counter and the Best Customer
      Service – Call Centre. These awards acknowledge organisations that excel in providing effective support and after
      sales experiences to their customers. The finalists are selected based on independent measurements conducted by a
      qualified body appointed by MCMC.  The measurement for customer service is by measuring the average transit time
      for delivery, with the same sample size of 50 mystery calls for each company. The best customer service is determined
      based on several benchmarks such as promptness on attending to queries, politeness of the company’s representative
      and competency in answering queries.

      Best Innovation Award

      The Best Innovation Award recognises the implementation of new technology or ingenuities that have significantly
      improved the e-commerce delivery operation and experience. The finalists for this category are selected by a panel of
      judges based on the innovation’s concept, value, and overall impact.

      Best Corporate Social Responsibility Award

      The Best Corporate Social Responsibility Award recognises organisations which have implemented CSR initiatives with
      high impact on the local community and environment. The finalists for this award category are selected by a panel of
      judges based on the verified improvements in the community.

      Best Industry Role Model Award

      The Best Industry Role Model Award is conferred to an employee who practices high integrity in the workplace and has
      performed an extraordinary act while on duty. The finalists for this award category are selected by a panel of judges
      based on the candidates’ personality, achievement and impact in their respective workplace.

      Road Safety Excellence Award

      The Road Safety Excellence Award focuses on the skills and safety development of the industry’s riders, drivers and the
      organisation’s commitment in development of these aspects. The winners in this award category are selected from the
      annual National Road Safety Championship organised by MCMC, AMEC and MIROS. The four awards conferred under this
      category are:
      - Best Rider
      - Best Driver (Van)
      - Best Driver (Lorry)
      - Best Company

     Table 1: E-Commerce Delivery Awards 2018 Description

16   .myConvergence
Image 1: YB Tuan Gobind Singh
                                      Deo presenting the Best Industry
                                      Role Model Award to Mr. Md Rejab
                                      Chin from Nationwide Express
                                      Courier Services Bhd.

Image 2: From left: Mr. Peter Ng,
YBhg. Dato’ Mohd Ali Hanafiah,
YBhg. Dato’ Dr Mohd Ali
Mohamad Nor, YB Tuan Gobind
Singh Deo, Mr. Al-Ishsal Ishak, Mr.
Bernand Yeoh, Prof. Dr Tharek
Abd Rahman, Mr. Mohamed Zaidi
Abdul Karim and Mr. Syed Md
Najib Syed Md Noor.

                                      Image 3: Citylink Express Sdn
                                      Bhd receiving the award for Best
                                      Delivery Performance

                                                            .myConvergence   17
Table 2: Winners of E-Commerce Delivery Awards 2018

                                          WINNERS AND FINALIST OF EDA 2018

      Delivery               Best Delivery Performance: City-Link Express (M) Sdn Bhd
      Excellence Award       Other finalists:
                               - DHL Express (M) Sdn Bhd
                               - MXpress Sdn Bhd
                               - Skynet Worldwide (M) Sdn Bhd
                               - GD Express (M) Sdn Bhd
      Customer Service       Best Customer Service – Counter: DHL Express (M) Sdn Bhd
      Excellence             Other finalists:
      Awards                   - City- Link (M) Sdn Bhd
                               - MXpress Sdn Bhd
                             Best Customer Service – Call Centre: United Parcel Service (M) Sdn Bhd
                             Other finalists:
                               - DHL Express (M) Sdn Bhd
                               - Yamato Transport (M) Sdn Bhd
      Best Innovation        GD Express Sdn Bhd
      Award                  Project details: GDEX Go is an application designed to seamlessly integrate delivery processes
                             which includes real-time GPS shipment update, dynamic routing, and digitised transactions.
      Best Corporate         NCT Forwarding & Shipping Sdn Bhd
      Social                 Project details: NCT Forwarding and Shipping collects household electronic waste throughout
      Responsibility         Sabah and ships them to Kuala Lumpur for recycling through their programme called “E-Rase
      Award                  Your E-Waste.” The entire process of collecting and shipping of the electronic waste is done free
                             of charge with the well-being of the environment in mind.
      Best Industry    Best Industry Role Model: Mr. Md Rejab Chin - Nationwide Express Courier Services Bhd.
      Role Model Award Other finalists:
                         - Corporal Azizul Bin Aziz – Pos Malaysia Berhad
                         - Mr. Mohammad Firdaus Bin Wahab – City-Link Express (M) Sdn Bhd
                         - Mr. Muhammad Bin Setapa – Pos Malaysia Berhad
      Road Safety            Best Rider:
      Excellence             Faizal bin Salehuddin
      Awards                 Pos Malaysia Berhad
                             Best Driver (Van):
                             Mohd Hafiz bin Zainal Abidin
                             Yamato Transport (M) Sdn Bhd
                             Best Driver (Lorry):
                             Mohd Zul Amali bin Razali
                             GD Express Sdn Bhd
                             Best Company:
                             Yamato Transport (M) Sdn Bhd

     The winners for the Best Innovation, Best Corporate             Innovation Officer, Plus Malaysia Bhd and Chief Executive
     Social Responsibility and Best Industry Role Model              Officer, Teras Teknologi Sdn Bhd.
     awards were selected by a panel of judges comprising
     four subject matter experts from various backgrounds.           The prestigious event saw more than 300 attendees
     The panel was headed by Dr Ahmad Nasruddin ‘Atiqullah           consisting of industry players, ministry officials and
     Fakrullah, who was then head of MCMC Academy,                   stakeholders, all dressed to the nines with suits and
     Dr Bahma Sivasubramaniam, Specialist, Faculty of                dresses in elegant black, fancy silver and fabulous red.
     Management, Multimedia University, Ms. Lim Bee                  The evening’s entertainment was presented by two of
     Vian, Executive Director, Strategic Planning-Services,          Malaysia’s favourite vocalist, Dayang Nurfaizah and
     Malaysian Investment Development Authority (MIDA),              Jaclyn Victor. The event was officiated by the Minister of
     and Mr. Shamsul Izhan Abdul Majid, Chief Technology &           Communications and Multimedia, YB Tuan Gobind Singh
                                                                     Deo.

18   .myConvergence
FEATURE

MUTUAL RECOGNITION
ARRANGEMENTS
FACILITATING GLOBAL TRADE
Aiman Hilmi Azhar
aiman.azhar@mcmc.gov.my

S
    tandards are important in improving the quality of        Manufacturers or suppliers of communications
    our life, advancing new technologies, facilitating        equipment wanting to market their products in a country
    global trade and the regulation of industry and           will have to comply with and fulfill the regulations and
commerce.                                                     conformity assessment procedures of the importing
                                                              country. These conformity assessment procedures
MCMC is the regulatory body for the regulation of the         typically include testing and certification conducted by
communications and multimedia industry based on               recognised Conformity Assessment Bodies (CABs) who
the powers provided under the Communications and              have the responsibility of ensuring the communications
Multimedia Act 1998 (Act 588) and its regulations. The use    equipment conform to the technical requirements and
and sale of communications equipment in Malaysia must         international standards enforced by the regulator. These
comply with the regulations and conformity assessment         are expensive procedures which delay the availability of
procedures in accordance with the Communications and          communications equipment in a large number of markets
Multimedia (Technical Standards) Regulations 2000 or          and add cost to users.
‘TSR 2000’.
                                                              All stakeholders will thus benefit from simplified
In the areas that MCMC regulates, standards are crucial       procedures that can reduce the cost and time it takes for
in defining the criteria, specifications and protocols that   a communications equipment to reach the market. At
enable interoperability of information and communication      the same time, regulators will need to have confidence
systems between countries and make it possible for the        in the competence of the CABs of the exporting country
exchange of voice, video or data messages across global       to test or assess conformity to the importing country’s
networks.                                                     requirements.

                                                                                                           .myConvergence   19
The Mutual Recognition Arrangement (MRA) is one of a                cost-effective manner to the importing economy.
     range of instruments available to facilitate global trade
     by removing trade barriers and allow the free flow of               This is where MRAs come in. There are currently more
     goods between countries. The MRA is a government-to-                than 130 MRAs2 in the world, grouped into stand-
     government arrangement where an importing country                   alone MRAs and those incorporated in Regional Trade
     will recognise the conformity assessment results                    Agreements (RTAs); i.e. government-to government
     of telecommunications equipment carried out by a                    arrangement or non-governmental arrangements (such as
     conformity assessment body in the exporting country.                those between CABs and between accreditation bodies).
     This will promote trade liberalisation by streamlining
     processes for the testing and certification of                      Technical Barriers to Trade (‘TBTs’) are reduced by
     telecommunications equipment.                                       allowing CABs of the exporting economy to test or certify
                                                                         communications equipment to the technical requirements
                                                                         and regulations of the importing economy before the
     MRA                                                                 communications equipment is exported to the importing
     Trade is the basis for international peace and goodwill.            economy. The results of that testing or certification are
     Trading relationship for communications equipment                   recognised, and the communications equipment may
     without MRA will involve testing and certification of the           enter without any further testing or time loss when they
                                                                         arrive.

          Exporting Economy                                                    Importing Economy
          Manufacture                      Export                   Testing                Certification               Marketing
     Figure 1: Trading Relationship for Communications Equipment without MRA

     equipment to be conducted in the importing economy, as              APEC TEL MRA
     shown in Figure 1.                                                  Communications equipment imported into Malaysia is
                                                                         subject to certification requirements in accordance with
     When conformity assessment requirements differ                      the Communications and Multimedia Act 1998 (CMA
     significantly across economies, the manufacturers or                1998) and the Communications and Multimedia (Technical
     suppliers may need to spend a significant amount of                 Standards) Regulations 2000 enforced by MCMC.
     resources to obtain the necessary information, and
     redesign products to meet different economies conformity            At the same time, communications equipment exported
     assessments standards and requirements.                             from Malaysia have to comply with the regulatory and
                                                                         certification requirements enforced by the regulatory
     According to OECD (1997)1, it is estimated that the                 agency of each importing economies.
     different standards and technical regulations across
     markets, combined with the need for multiple testing and            The exportation of communications equipment is a large
     certification procedures, may constitute between 2 and 10           contributor to Malaysia’s economy. From 2015 to 2018,
     percent of the overall costs of production.                         the estimated total value of communications equipment
                                                                         export to the United States (US) and global market are
     In the absence of an MRA, manufacturers and suppliers               RM10.39 billion and RM40.72 billion respectively, as
     from exporting economy face high costs due to the testing           shown in Table 1.
     and certification that are required to be conducted in the
     importing economy. Exporters are often faced with having            The Asia-Pacific Economic Cooperation Mutual
     to test or certify their products in each of the countries to       Recognition Arrangement for Conformity Assessment
     which they are exporting just to comply with the required
     standard.                                                                                        Export Total (RM billion)
                                                                                   Year              To United          Global Export
     This may be an unnecessary obstacle to international                                             States
     trade if foreign manufacturers or suppliers possess the
                                                                                   2015                 0.38                  1.90
     competence to give the required level of assurance in a
                                                                                   2016                 0.23                  2.31
     1
        OECD (1997): “Product Standards, Conformity Assessment
                                                                                   2017                 4.50                  17.36
     and Regulatory Reform,” Sectoral Studies Chapter 6 Vol. I,                    2018                 5.28                  19.15
     Organisation for Economic Development and Cooperation, Paris.
     2
       Correia de Brito, A., C. Kauffmann and J. Pelkmans (2016), “The             Total               10.39                  40.72
     contribution of mutual recognition to international regulatory      Table 1: Exportation of Communications Equipment from 2015 to 20183
     co-operation”, OECD Regulatory Policy Working Papers, No. 2,
     OECD Publishing, Paris.                                             3
                                                                             Source from Department of Statistics, Malaysia

20   .myConvergence
of Telecommunications Equipment (APEC TEL MRA) is                                         Scope of the MRA
a multilateral arrangement between economies in the
APEC region4, which Malaysia is a part of. The APEC TEL
MRA, which came into effect on 1 July 1999, provides a                            Information                        Other
                                                                                    Security
common basis for developing and implementing MRAs.
It is an arrangement that specifies general principles for
                                                                                             Telecommunications
developing MRAs amongst economies and the general                                                Regulations
conditions under which each economy accept or recognise
                                                                                Electrical                               RF
the results of conformity assessment procedures from
                                                                                 Safety                               Exposure
CABs of other economies.                                                       Regulations      Electromagnetic
                                                                                                 Compatibility
                                                                                                     (EMC)
The scope of the APEC TEL MRA covers all equipment
                                                                                                  Regulations
subject to telecommunications regulations including
wired and wireless equipment and terrestrial and satellite
                                                                                                Figure 2: Scope of
equipment, whether or not connected to the public                                               the APEC TEL MRA
telecommunications network.

                   Exporting Economy                                                     Importing Economy
      Manufacture                      Testing                     Export                Certification               Marketing

Figure 3: Phase I: Mutual Recognition of Testing Laboratory Results

                                 Exporting Economy                                                     Importing Economy
      Manufacture                      Testing                 Certification                 Export                  Marketing

Figure 4: Phase II: Mutual Recognition of Testing Laboratory and Certification Results

The APEC TEL MRA covers5 electromagnetic compatibility                         undertaken in the exporting economy and having it
(EMC), RF Exposure (e.g. specific absorption rate - SAR),                      recognised in the importing economy as shown in
information security, and electrical safety aspects as well                    Figure 4.
as the telecommunications aspects of the conformity
assessment requirements when they are covered by the                      Malaysia participates within the APEC TEL MRA in
regulations.                                                              Phase 1 with Singapore and the Unites States of America.
                                                                          MCMC is the appointed designating authority6 by the
The APEC TEL MRA establishes procedures enabling the                      government of Malaysia to designate a testing laboratory
economies to recognise each other’s competent CABs and                    located in Malaysia for recognition by the government of
to accept the conformity assessment results of those CABs                 Singapore and United States of America.
for regulatory purposes.
                                                                          Vice versa, the designating authorities appointed by the
Under the APEC TEL MRA framework, there are two                           government of Singapore and the United States of America
phases for the recognition of CABs:                                       may designate a testing laboratory located in each of their
                                                                          country for recognition by MCMC.
i.    Phase I provides for the mutual recognition of
      test results, which allows testing to be done in the                MCMC has designated 5 testing laboratories for
      exporting economy and having it recognised in the                   recognition by the MRA Partner under the Phase I of the
      importing economy as show in Figure 3.                              APEC TEL MRA, as detailed in Table 2 on the following
                                                                          page:
ii.   Phase II provides for the mutual recognition of
      certification, allowing testing and certification to be

4
  APEC economies include Australia, Brunei Darussalam, Canada, Chile, People’s Republic of China, Hong Kong, China, Indonesia, Japan,
Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, the Philippines, Peru, Russia, Singapore, Chinese Taipei, Thailand,
the United States and Vietnam
5
  A Guide for Conformity Assessment Bodies to the APEC TEL Mutual Recognition Arrangement, 3rd Edition
6
  Designating Authority is a body appointed by the exportation economies with the authority and competence to designate, list, verify
the compliance of, limit the designation of, and suspend or cancel the designation of testing laboratories within its jurisdiction.

                                                                                                                             .myConvergence   21
You can also read