DOUBLE THE SPEED, HALF THE PRICE - High-speed Broadband Becomes Affordable - MCMC
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
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
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
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
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
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
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
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
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