Malaysia Govt targets 15% broadband penetration by 2010

The government has unveiled ambitious targets to boost the global competitiveness of the country by having more Malaysians benefiting from the digital age.

By 2010, it wants broadband penetration to grow to at least 15% of the population compared with 5% now and to boost 3G coverage to five million subscribers.

Over the same period, the government also wants industry players to roll out mobile TV to at least 90% of mobile users and digital multimedia broadcasting to 95% of households.

The targets are contained in the Energy, Water and Communications Ministry’s blueprint known as the Malaysian Information, Communications and Multimedia Services strategy — MyICMS 886 — which involves eight services upgrade, eight infrastructure upgrade and six growth areas.

Last year Dec 19 , Minister Datuk Seri Dr Lim Keng Yaik said at the launch of the blueprint in Cyberjaya “With growing competition on the global front, Malaysia cannot afford to be complacent and needs to look at the development of the ICT sectors with a new sense of urgency,” Well, in year 2007, there is a mild progress and more progress is expected.

Speaking at the same press conference, Telekom Malaysia Bhd chief executive officer Datuk Wahid Omar said: “I think that it is very good that the ministry and the MCMC (Malaysian Communications and Multimedia Commission) are very far sighted.

“We have been consulted on the targets stated in the strategy for the last six months.”
Maxis Communications Bhd chief executive officer Datuk Jamaludin Ibrahim told FinancialDaily that it would spend RM300 million on the development of 3G next year and aimed to increase 3G coverage in the Klang Valley, Penang and Johor Bahru.

“We have spent over RM200 million already,” he said after the launch of MyICMS 886.
“Maxis will be growing most, if not all, in the Klang Valley, big portions of Penang and Johor Bahru. We will start with that till the end of next year,” he added.

“We are at before inflection point, so (we) haven’t see any big growth yet. I cannot specify any numbers, but we are confident that growth will happen in 2007. You will see some growth in 2006,” he said.

Under MyICMS 886, the government is targeting 300,000 3G subscribers next year. Jamaludin believes that is achievable.

While there are sceptics who doubt whether these targets can be achieved, an analyst said they could be attained.

Citing the example of mobile communications, which have seen the lowering of cost for users amid stiff competition, he said current penetration had even surprised telecommunications operators.

“The existing penetration of over 60% of the population having mobile devices appeared hard to achieve five years ago, but now industry players expect it to reach even 75%,” he said.
The communications and multimedia industry turnover for 2005 was expected to grow 25% to RM30 billion from RM24 billion last year.

Meanwhile, Alfean Hardy reported Telekom’s subsidiary Celcom (Malaysia) Bhd chief executive officer Datuk Shazalli Ramly as saying that Celcom aims to increase its 3G subscribers by increasing its content services.

Celcom aims to have 40,000 3G subscribers by the end of this year and 150,000 by the end of next year, compared with over 20,000 now. It aims to increase 3G content services to 50 by year-end from 30 now.

“By the first quarter of next year, we hope the 3G services can reach all the capitals,” Shazalli said at the launch of its latest content offering “World of feng shui” involving a partnership with feng shui expert Lillian Too.

Conclusion: Malaysia 3G market is postive.