According to IDC, there are large portions of population and land area being underserved and not served with broadband services. The market research agency reveals that there are gaps in broadband coverage and quality in Malaysia, with the East Coast and East Malaysia accounting for a large percentage of that gap. The East Coat and East Malaysia regions account for 30% of the population and 80% of the land area.
In June 2018, it was reported that new Minister of Communications and Multimedia, Gobind Singh Deo, is tabling a proposal outlining Malaysians’ right to internet access in the Federal Constitution. IDC believes that this proposal will create a positive impact in driving the digital economy and Gross Domestic Product (GDP) of Malaysia.
IDC believes that limitless internet facilities will create engaged and connected citizens, which tailor to the sixth challenge in Vision 2020. The research house further opines that increase in internet connectivity will be a significant contributor in connecting remote citizen populations to online markets, increasing their access to healthcare and government services, as well as expanding exposure to news and media.
That said, before the right to internet access could be effectively exercise, Randy Roberts, Research Director of IoT & Telco, IDC Asia (pic) shares there are more pressing matters at hand when it comes to broadband penetration.
“While we agree this on-going proposal will provide a crucial right for the people, there is an urgent need for the service providers in Malaysia to increase the coverage areas of fixed and wireless data networks,” says Roberts.
IDC further reveals that fixed broadband penetration was less than 80% at end of 2016 with average speed of 23Mbps, in which almost three-quarters (73%) of them experience low service quality. It is also interesting to note that a staggering 1.82 million households in Malaysia do not have fixed broadband, nor do they have mobile data at home, which suggests that there’s more work to be done by broadband service providers.
Additionally, the Minister had announced his intent to achieve halved broadband prices that also serves double the speed, which further reiterates IDC’s findings of Malaysians view broadband in the country to be too expensive with weak coverage and bandwidth.
Roberts adds: “Telecommunications service providers should look at improving the affordability, quality and speeds of their networks to ensure access to the internet in Malaysia is equivalent to that in other developed countries.”
IDC also shares that about 2/3 of customers have access to only one choice of broadband provider – a space that TM has long monopolise since the early days fixed broadband in Malaysia.
It comes as no surprise that the company were shaking in their boots when the directive of implementing the Mandatory Standard on Access Pricing (MSAP) came last month.
However, the actual implementation may not come anytime soon as TM allegedly is appealing to delay and revise the implementation of the MSAP, which could further hurt TM’s earnings. According to the same news report, the deadline has been extended to the end of August 2018. We as consumers can only wait and see.
[Sources: The Sun Daily, The Malaysian Reserve]
