Friday, November 27, 2009

Expensive but slow broadband in Malaysia

Investors put off by Malaysia's high-cost, low-speed broadband
- from themalaysianinsider.com, 26 Nov 2009

Why do investors refuse or run away from investing in Malaysia?
1. Internet is expensive @RM79/mo for TM Streamyx
2. Internet is slow @4Mbps (Wireless Network Connection 54Mbps, Download ___, Upload ___)
3. Impossible to send large files fast enough

What can we do to overcome these weaknesses?
1. Reduce Internet rental rate to less than RM10/mo for TM Streamyx
2. Deploy optical fibre instead of the telephone line (copper wire). TM is providing optical fibre to Klang Valley residents
3. Use bigger bandwidth so that large files and multimedia files can be sent as fast as possible, browsing is faster

Is ICT monopoly good or bad?
1. TM has monopoly over telecommunication lines (bad)
2. Telecommunication monopoly means TM can set any price for telecommunication services, including Internet monthly rental rate, and this is usually expensive (bad)
3. Monopoly means other Internet providers must offer Internet access monthly rental rate higher in order to profit (bad)

Can ICT monopoly be broken/stopped/ended/liberated?
1. Yes, we can ask TM to liberate its monopoly on ICT, especially Internet access
2. There is no need to liberate all 100% of TM Internet access
3. A 70:30 equity in favour of TM should be ok for a start?

What is optical fibre? Is optical fibre better than Streamyx?
1. Optical fibre is capable of carrying more & faster information per unit time, with speeds of up to 100Mbps
2. Optical fibre is being rolled out even though it is initially targeted to certain areas, over time, all cities should have optical fibre
3. Optical fibre is preferred as it is the fastest means of Internet access

Who should use optical fibre for Internet access?
1. School children, schools and hostels
2. University students, hostels & campuses
3. Homes
4. Internet cafes
5. Workplaces
6. Hotels
7. Hospitals
8. PDRM
9. Bomba
10. Fast food chains
11. Restaurants
12. Airports
13. Supermarkets

What is the cost for high-speed Internet access?
1. Optical fibre is better than today's Streamyx, therefore, rental rate is expected to be higher for optical fibre
2. Singapore users are paying US$85/mo for Internet
3. Malaysian users are expected to pay US$298/mo-US$300/mo or even more for Internet

Are we prepared to pay >RM300/mo for Internet @ 100Mbps (high-speed broadband)?

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