There’s been much activity in the telecommunication industry ever since the new government took over the country from the old Barisan Nasional. Probably we have to agree it’s not just this sector but across the board all ministries are seeing major revamps and changes. For the better? Well, we just have to wait and see.

Now PC.com is more interested in covering the shake up in the high speed broadband delivery service happening right now, since this more up our alley. For years the only player offering high speed internet (HSBB) was Telekom Malaysia apart from Time which only focuses on high rise building, but it’s only TM that received billions in funding from Najib’s administration to lay fibre network throughout the country. This preferred treatment or monopoly (some would say) gave TM a sense of deserving and resulted in the company taking it’s own time and was in no rush to get things going, resulting in most parts under served and complacent in its approach. Having launched the high speed service in 2010, the company has only managed to secure 2.3 million Unifi users on the fibre network and has still about 1 million Streamyx customers using it’s legacy copper cables.  With Malaysia having over 6 million households and is expected to reach 7 million in two years time, the coverage only constitutes to about 30% who have fibre connectivity, a far cry for an operator tasked to wire the nation up and have every household sped up. In contrast mobile is at 140% with the smallest player U Mobile having 5 million subscribers! Factors that has hindered uptake is the wide availability of the service and pricing, which is touted as the among the highest in the region. A lack of competition is blamed for the current status quo. But things are shaking up. A new entrant in the form of utility provider, TNB is now entering the fixed high speed broadband space with many believing this will be a formidable contender.

After TM, the only other company in the country that is capable to touch every single household in the country is Tenaga Nasional- the electricity board. TNB has been hard at work in making sure every home receives basic electricity no matter how rural the community or houses are, a mandate that it has managed to achieve over the years. The board has also been piloting smart metering projects as it looks at moving the service to a new digital era. It’s this progressive thinking that it can now look at offering fibre internet to homes, after all the houses are already cabled with power grids. One of those areas that is currently piloting the smart metering project is Jasin, Melaka which incidentally announced as its project location for the National Connectivity Plan. Tenaga will start to assess the technical, safety and commercial viability of using it’s electrical infrastructure for HSBB to offer faster, cheaper and wider Internet accessibility. Targeted to be completed by end 2018, it will cover 1100 out of 4300 houses in three areas namely Taman Merbau, Taman Maju and Felda Kemendor, in Jasin, said TNB chairman, Tan Sri Leo Moggie. Moggie.

“Telecommunications system has always been an integral part of the utility industry. For TNB, we have been developing our telecommunication network all these years,” he added. The initiative comes with full support from MCMC, the agency responsible in regulating the telecommunication sector and ensuring the Rakyat don’t get the short end of the stick. With Tenaga, the country for the first time will have 2 players offering similar services and possibly spark competition and hopefully push the incumbent to be more commercially minded. There were moves by TM earlier this year to form an alliance with Tenaga but this has been decoupled by the Communication Ministry to give room for a healthy competition, a move we should applaud the good minister for.

Things are not looking smooth at TM at the moment, the GLC operator reported a revenue decline in it’s last financial reporting and is still weighted by it’s wireless mobile acquisition that’s not gaining any traction at all. Unifi Mobile renamed from Webe, was suppose to play a pivotal role in the company’s total offering seen as the missing puzzle. But competition and new entrants in the mobile network space keeps TM going back to the drawing board for its strategy. Only recently Unifi Mobile had to call short on its promotional campaign due to lack of customer participation. The attack on the GLC’s bread and butter-fibre network should be the worry for the top management for now, this business contributes substantially to the organisation. Retail and Wholesale generates high revenue, TM sells bulk to the likes of Maxis and private entities for their stable back-end and held a strong grip on this sector. TNB will definitely be eyeing this part of the business as well.

TM had a head start and will need to relook at it’s management style in maneuvering the ship back to course. Advantage is on this GLC’s side as opposed, a certain will-power and commitment to what this large entity set out to be when first established must be adopted if the company wants retain a stronghold in this shifting landscape.