Broadband Initiatives National - my Convergence Magazine

Broadband Development In Malaysia
- Moving to High Speed Broadband
Special Edition
March 2010
National
Broadband
Initiatives

From the Chairman’s desk
Mindful of the fact that broadband has a direct impact on a nation’s competitiveness and
economic strength, SKMM has made high speed broadband a priority focus area. We have
been entrusted by the Government with the task of coordinating and spearheading the
various initiatives identified under the National Broadband Initiatives.
Its importance cannot be overstated. High speed broadband brings the promise of a new
lifestyle experience for Malaysians from all aspects. It is creating new platforms for businesses and at the
same time opening up tremendous opportunities for entrepreneurs and industries growth. From telehealth to
infotainment, shopping to education, life going forward will be shaped by high speed broadband.
We are pleased to put together in this Special Edition a host of initiatives that are being undertaken to realize
the vision of a connected Malaysia. This is in conjunction with the launch of the National Broadband Initiatives
and High Speed Broadband service.
You will find information and insights into what is essentially a plan to bring broadband services to the
residents of Malaysia. The framework of the national broadband strategy is covered in the first section of this
issue. The second section fleshes out the details. We have selected an interesting collection of articles that lay
down the key components of the Initiatives.
We also showcase the efforts being undertaken under the Universal Services Provision (USP) programme that
ensure no one will be left out of the digital age. From school students to rural broadband citizens, SKMM’s USP
programme has initiatives that will ensure everyone has access to broadband. Adding to that are two articles
that detail how broadband is leveraged for entrepreneurship and how a city is being transformed from its rural
background into a vibrant connected city.
The final section is perhaps the most important. SKMM is engaged in various initiatives to spur the creation
and adoption of positive local digital content. The articles here give a glimpse of the breadth of the actions
being taken to create and sustain a vibrant local content industry. Also in place is a national level network
security undertaking that are keeping our networks and users safe from threats.
I trust that you will enjoy reading this Special Edition of .MyConvergence. I believe that, together, they present
a fascinating picture of how an entire nation is going online and providing the Rakyat a window to the world.
Tan Sri Khalid Bin Ramli
Chairman, SKMM

T
40
Feature
Laying Foundation for Broadband
Feature
ConvergenCe:
GoinG for
Growth
The tenth anniversary of the creation of SKMM can also be
described as ten years of convergence as it was created to
promote and drive Malaysia’s progress in the fast evolving
communication and multimedia industry. The Experiencing
Convergence and MyBroadband 2008 Conference and
Exhibition in October 2008 showcased the successes of that
decade.
Broadband for All
Community Broadband
The USP programme is bringing Internet access to underprivileged
populations across Malaysia. Advisor Md. Rusli visits two libraries in
Terengganu that have been equipped with PCs and Internet
connections for the use Tan of the Sri locals. Khalid Bin Ramli
Chairman,
Malaysian Communications and
he Universal Service Provision (USP) One common perception is that USP is all about bringing
prog-ramme, a global programme cham- telecommunications services to underserved areas. That
pioned by the International Telecom- is certainly one of the aims of the USP project in which it
Multimedia Commission
munication Union (ITU), strives to ensure improves infrastructure in areas that commercial interests
that communication and Internet services tend to ignore. In that aspect, USP initiatives aid in progres-
reach outlying areas and isolated populations. Left to sively blotting out areas where communication services
private initiatives alone, these marginalized areas would have failed to reach.
be left out as they would not be commercially viable.
But there is another aspect to the USP programme, that
In Malaysia, the push to narrow the digital divide has of bridging the digital divide that exists among the popu-
been entrusted to the SKMM. The government places lation. The focus on improving infrastructure in underserved
great importance to bring modern communication services areas will not mean anything if underprivileged groups
to every corner of the country and since the turn of the cannot make use of the infrastructure because of lack of
millennium, the SKMM has overseen projects that have knowledge. For example, there is not much use to extend
steadily reduced the numbers of areas that were not served Internet coverage using USP funds into a rural area if the
by telecommunications services.
lower income people there cannot benefit because they are
Contents
Convergence: Going for Growth
Malaysia Broadband: A Leverage to National Growth
Connected Malaysia
Broadband Explained
Getting an Entire Nation Online
HSBB: Malaysia's Drive for High Speed Broadband
Mobile Communications in Malaysia
WiMAX@2.3GHz and its DNA for Wireless Broadband
In-house Consultant
Toh Swee Hoe
Editor
Koay Hock Eng
Bringing Everyone into the Internet Age
SchoolNet
Felda Chini - A Connected Community
Editorial Board
Eneng Faridah Iskandar
Megat Ishak Ma'amunor Rashid
Mohd Zaidi Abd Karim
Zeti Marziana Mohamed
04
05
13
18
26
30
31
37
43
49
52
53
57
60
Jamali Samsuddin
Md Rusli Hj Ahmad
Harme Mohamed
Ng Wai Mun

Feature
Broadband in Business
The
Malaysian
Internet User
Media Literacy and Local Content over the Internet
Broadband Meter
ADSL
57.8%
SDSL 0.4%
63
Exemplary Cybercafes
Miri: From a Fishing Village to a WiFi City
The Malaysian Internet User
Mobile Content and Applications - The Next Area of Growth?
Creating a Media Literate Society
Network Security Portal: Educating and Raising Awareness
on Internet Security
HSDPA
(Mobile)
35.4%
Others
6.2%
Satellite 0.2%
Publisher
Malaysian Communications and Multimedia
Commission
Off Persiaran Multimedia, 63000 Cyberjaya,
Selangor
Tel: +603 8688 8000 Fax: +603 8688 1000
Website: www.skmm.gov.my
Email: myconvergence@cmc.gov.my
Publication website: www.myconvergence.com.my
Networked Content Development Grant
Broadband Meter - Subscribers and Users
Publishing Consultant
One World Solutions Sdn. Bhd.
www.oneworld.com.my
Printer
Percetakan Jiwabaru Sdn. Bhd.
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Copyright 2010: Malaysian Communications and Multimedia Commission
All rights reserved. No part of this publication may be reproduced or
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The use of any images, trade names and trademarks in this publication shall
not be construed as an endorsement by SKMM of any views, products or
services offered by the owners of the same. As such, the inclusion of these
images, trade names 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.

Laying
Foundation For
broadband

Feature
ConvergenCe:
going For
growth
The tenth anniversary of the creation of SKMM can also be
described as ten years of convergence as it was created to
promote and drive Malaysia’s progress in the fast evolving
communication and multimedia industry. The Experiencing
Convergence and MyBroadband 2008 Conference and
Exhibition in October 2008 showcased the successes of that
decade.

The conference saw the participation of
the Government, industry and regulators.
The programme featured an exploration
of emerging technologies, services and
trends.
The Minister of Energy, Water and Communications,
Dato’ Shaziman Abu Mansor outlined why SKMM was
created. He pointed out that from the arrival of telecommunications
services to this country and for a very long
time after that, the Government both provided and regulated
these services. It was necessary to chart the industry’s
future direction since the country was still in its infancy
then. However, as the industry matured, the Government
saw the need to encourage greater private sector participation
to bring the communications industry to the next
level.
Similarly, the word “convergence” was rarely heard in
the last century but the worldwide trend is now towards
convergence of different communication functions, technologies
and services onto a common platform.
Convergence has resulted in applications such as mobile
TV which lets people watch television on their mobile
phones and broadband connections that enable data,
Internet access and voice to be carried over a common pipe.
This in turn gave rise to the concept of a converged digitally
connected homes and personal communications.
One of the better ways to describe convergence may be
to quote from the renowned strategist, Sun Tzu. He said
“There are not more than five primary colours; blue, yellow,
red, white, and black, yet in combination they produce
more hues and colours than one can ever imagine beyond
our wildest dream." In that same way, the convergence of
services, platforms and technologies results in the creation
of a myriad of other services and technologies.
These trends drove regulators and service providers
to adapt. Regulators especially had to adapt their organisational
structure, purpose and regulatory framework to
facilitate and take advantage of the changes convergence
brought about.
Malaysia was in fact amongst the earliest to overhaul
its regulatory framework , which led to the creation of the
Malaysian Communications and Multimedia Commission
(SKMM) in 1998 and the Telecommunications Act 1950 and
Broadcasting Act 1998 were repealed and replaced by the
Communications and Multimedia Act 1998. With the new
industry structure established 10 years ago, the Government
undertook numerous proactive initiatives to revamp Malaysia’s
communications and multimedia industry to enable a
knowledge driven economy which would enable Malaysia
to become a developed nation by the year 2020.
Realising that this target could not be achieved in a
single leap, the Government introduced supporting and
complementary programmes along the way to help the
country move towards its 2020 target.
One of them is the ten year National Broadband Plan,
which was implemented in 2004 with the strategic goal to
enable a knowledge-based culture in the country through
the supply of broadband to facilitate the development of
all Internet services in Malaysia, e-Government and ecommerce
in particular. Programmes were developed and
evolved around this plan to address specific areas. One
of these is the MyICMS 886 strategy initiated in 2006 and
which will run till 2010. This focuses on eight service areas
supported by eight selected infrastructures. It is further
complemented by generating growth in six selected areas
which will spearhead the economy into the next era.
Out of MyICMS 886 came the High Speed Broadband
(HSBB) programme with an investment of RM11 billion,
which aimed at achieving MyICMS 886’s target of 50%
household broadband penetration by 2010. This would be
done by providing high speed connectivity at 10 Mbps and
above to 1.3 million homes and offices mostly in urban areas
through a public-private partnership signed last September
between the Ministry of Energy, Water and Communications
(KTAK) and Telekom Malaysia.
A parallel initiative to drive the achievement of the 50%
penetration target is the Broadband to the General Population
(BBGP) project whereby service providers would fill
the gaps and provide alternatives of choice by providing
up to 2 Mbps Internet access using a combination of wired
ADSL and wireless technologies such as wireless connection
such as HSPA and WiMAX.
Malaysia’s household broadband penetration was 15.5%
as of the end of 2007 and in that year the communications
and multimedia industry contributed 8% and 7.6% respectively
to Malaysia’s gross domestic product (GDP) and gross
national product (GNP).
In many countries, the level of broadband penetration
is expected to have tangible impacts on the country’s GDP.
For example by 2010, 50% penetration by population in the
United States is expected to contribute 4% to total GDP,
15% penetration by population in UK will contribute 0.6%
to its GDP, while 50% penetration by population in New
Zealand will contribute 0.9% to its GDP.
Malaysia’s Economic Planning Unit expects that
achieving 50% household broadband penetration by 2010
can contribute 1% to Malaysia’s GDP and create many new
jobs.
HSBB is seen as meeting many objectives. It will be a
regional leading infrastructure with best-in-class QoS. The
content and media eco-system will aid local content development.
HSBB will aid economic growth through enhanced
national competitiveness. Overall, it will grow broadband
Broadband subscriptions by technology, Q4 2008

The broadband industry in Malaysia will be highly competitive with infrastructure enabling multiple players
Potential industry structure
penetration to comparable levels of regional leaders. It will
lead to employment and development of human capital for
high tech and knowledge industries and affordable and fair
market prices for consumers and services providers.
It’s expected to enhance electronic-Government as
well as institutions of higher learning infrastructure, while
industry will benefit through a world-class infrastructure
for applications and content development, access to Internet
Protocol (IP-based) next generation network for high speed
Internet and new services delivery.
For the nation, HSBB is expected to have a positive
impact on Malaysia’s GDP and employment, provide spinoff
effect in other sectors. It will encourage the knowledgeeconomy
and altogether result in enhanced national
competitiveness.
The ten providers of HSBB and BBGP access will
provide a channel for the current 14 content aggregators,
content developers and TV broadcasters to provide their
products and services, including telehealth, multimedia
post production, high-definition TV, IP-TV, games, eeducation
and others. It will drive growth in local content
development, enhance developer productivity as well as the
consumer experience.
Following the overall picture of the past, present and
future painted by the Minister, other speakers took up
specific topics in their addresses.
Sua Chek Hong, Huawei Technologies Malaysia deputycountry
manager added that for users to enjoy a ubiquitous
massive data experience, it will require full-service ultra
broadband, which will enable users to access massively
sized items of content anytime, anywhere, whether at home,
while outdoors or in the office.
At home, users would enjoy high-definition TV, online
games, videophone or high-speed Internet at speeds up to
10 Mbps. On the go they would enjoy TV and music, videophone
and high-speed Internet up to 5 Mbps and in the
office they can share data at between 100 Mbps to 1 Gbps,
access the Internet at between 10 Mbps and 100 Mbps and
videoconference at 10 Mbps.
Ericsson Malaysia President and Country Manager,
Krishna Kumar Guda shared that the convergence of telecommunications
with digital media results in users wanting
to communicate with other persons or machines, listen
to music, play video games, access content and data and
services on different types of networked desktop, handheld
and mobile devices.
This will provide new market opportunities for fixed
line, mobile and cable TV service providers, as well as
content providers, utilities, municipalities and content
portals, including user-generated content portals to provide
broadband content and services to end users.
Ericsson’s 2007 ConsumerLab survey of 5,000 users
across five countries on their broadband needs confirmed
that broadband availability was leading to changes in lifestyles:
48% agreed that computers without broadband had
no value, 40% said they watched TV less now than previously
and 50% agreed that having broadband everywhere
was important to them.
Ericsson sees the benefits of broadband providing development,
resource management and access to networking
to businesses, institutions and the people. It believes it
will benefit the country overall in terms of productivity
reduction, stability, global equality and economic growth.

Broadband enhances user experience - Downloading
A study found that broadband benefits entrepreneurs
enormously by generating income in existing and new
businesses and that the benefits of broadband for business
development are related to three main areas.
For existing businesses, broadband provides marketing
reach and access to global markets, product and production
development. Secondly, it creates new business opportunities
to provide and sell access, provide IT education
and IT support services and thirdly, broadband also is an
integrated tool for the business.
Ericsson cited a real-life example from Indonesia.
Dewi, who runs a ceramic business in Malang Indonesia,
employed 10 workers and was making 18 million Rupiah
profit per month. After she got broadband Internet access
and learned how to use e-mail and create a website, her
profit jumped 50% to 27 million Rupiah and she increased
her staff strength to 18.
Her homepage and email communications not only
brought customers from all over Indonesia but from the
UK, Australia and France as well, compared to previously,
where her customers were located within her surrounding
area.
Likewise, broadband can vastly improve the performance
of institutions like schools, health-centres and
Government offices by giving them access to information
and provide them with a channel to reach out to the people
with new and updated teaching material, improved healthcare
through more knowledge about diagnoses, treatment
and care, while cutting red tape.
It empowers the people by enabling them to connect to
the broader society, bridges the gap between villages and
cities, nations and continents, increases their knowledge
and access to Government services.
For both businesses and institutions, broadband
enables a more efficient utilisation of resources within
them through faster communication and a faster flow of
information, as well as through a more efficient administration.
Floyd Wagoner, Director, Motorola Home and Mobility
Networks sees video as being the primary driver of
broadband, with a typical standard-definition movie file
occupying 3.4 GB and its high-definition equivalent occupying
10 GB.
That 10 GB file would take 267 minutes to download
over an ADSL2 connection, 67 minutes over VDSL2 and
6.7 minutes over a GPON (Gigabit-capable Passive Optical
Network), while corresponding upload speeds for a 50 GB
standard-definition video would be 400, 200 and 4 seconds
respectively over the three types of networks.
By 2012, 70 billion videos will be viewed online and the
capacity of broadband networks will have to be able to cope
with that demand to ensure a satisfactory user experience.
Results of Motorola’s Millennial Survey in August
2008 of 1,223 persons aged between 16 and 27 years of
age – dubbed the Millennial Generation -- across France,
Germany, Spain, the United Arab Emirates (UAE), and
the United Kingdom (UK) found that 28% streamed video,
24% streamed movies, 26% downloaded movies while 22%
downloaded TV several times or more in a week.
Among other online activities, 35% downloaded and
saved music, 35% played video games, 15% recorded TV
programmes to portable video recorders and 14% created
video content for online social networking sites such as You
Tube and others.
The key issue which emerged among the Millennial
Generation was the time they were willing to wait for a video
or movie to download before they could start viewing it and
about half said they would become frustrated or aggravated
if they had to wait more than five minutes before they could
start viewing a 30 minute TV show.
Forty seven percent had the patience to wait at most
one minute before they could view a video on a social
networking site, while 53% could wait up to 45 minutes to
see a two-hour movie.
Most believed that digital technologies have had a
profound impact on their lives, with 74% agreeing that
their personal lives would be changed dramatically without
access to the Internet.
Jakob Neilsen’s research on the usability of the Web
led to the development of Neilsen’s Law, which states
that broadband demand increases at a compound annual
growth rate of 50% or 57 times over 10 years and that mass
market bandwidth usage lags that of high-end users by two
Hype cycle for technologies

Michael Lai of Packet One
to three years, so investment cycles in broadband infrastructure
must be able to meet that growth.
Wireless broadband
As for growth in wireless broadband, Yuan Wei, ZTE
Corporation’s Senior Director for Global Marketing weighed
in with an analysis of where WiMAX is currently on its
hype cycle. This refers to a often used observation that most
new technologies usually go through a cycle where they are
first overhyped before ultimately going on to achieve their
potential.
He reported that fixed WiMAX is well past what trend
analysts call the Peak of Inflated Expectation due to market
hype and exuberance and it was at its lowest point in the
Trough of Disillusionment as of June 2008, after which it
will begin its more sedate but steady climb along the Slope
of Enlightenment on its way to the Plateau of Productivity.
Mobile WiMAX on the other hand was just past the Peak
of Inflated Expectations and like many other technologies
before it, including railways, oil and others, it will have to go
through the Trough of Disillusion before it makes a robust
comeback and accomplishes its true worth.
So far there are 305 commercial WiMAX deployments
in 118 countries, including 20 service providers in 10 countries
across South East Asia and WiMAX deployments of
all types in all frequencies are eventually expected to reach
four billion persons worldwide.
However the real challenge service providers face
in being commercially viable is to be able to provide
adequate coverage. Yuan also revealed that according to
NTT DoCoMo, coverage of an area must be over 90% to be
effective and surveys have found that 69.7% of wireless data
traffic is from indoor users. However, signal strength loss
from outdoor macrocells is high after penetration through
walls.
So instead of focussing on providing outdoor coverage,
service providers should find ways to provide coverage
indoors.
However, since WiMAX is based on TDD (Time Division
Duplex) technology, it must be able to receive timing signals
from the Global Positioning System (GPS) which cannot
penetrate into multi-storey buildings, so alternative ways
must be found to provide that timing signal.
One high bandwidth indoor solution is to use an out
door base-band unit (BBS) with GPS connected by fibre
to remote radio units (RRUs) such as picocells mounted
outdoors on the side of the building and in turn connected
by fibre to indoor antennas.
A medium capacity solution for up to 30 Mbps would
have a similar configuration, except that it could use an
outdoor controller with GPS, connected via fixed Ethernet
cabling to picocells on the side of the building and connected
via Ethernet to indoor antennas.
Alternatively, broadband over powerlines can also
be used for medium capacity requirements, with one or
more controllers with GPS mounted outdoors and in turn
connected to picocells indoors through the indoor electrical
wiring.
Dr Bill Wong, Chief Technology Officer and Vice-
President of Engineering with Altai Technologies in Hong
Kong took a different approach and made a case for WiFi
technology instead. He proposed extending WiMAX and
3G LTE (Long Term Evolution) coverage indoors using WiFi,
with its abundance of highly affordable end-user and access
equipment and maturity of the technology. This approach is
used in the Wireless@KL metropolitan wireless broadband
Zainal Amanshah, REDtone Group Chief Executive Officer

Danawa Resources WiFi projects in rural locations, Sarawak.
project by Kuala Lumpur City Hall and the SKMM in
collaboration with Packet One Networks.
On mobile WiMAX, Wong shared that there were 11.04
million mobile WiMAX subscribers worldwide in 2008,
which are expected to grow to 133.66 million in 2012.
However, he believed that 3G deployment was delayed by
three to five years due to shortage of terminals and that
WiMAX was facing the same issue of limited number of
WiMAX terminals. Based on the 3G experience, it would
take about three years before WiMAX becomes popular.
On the other hand, there are billions of WiFi terminals
today and it is being embedded in many devices, including
printers, cameras, mobile phones, PDAs and notebook PCs.
Wong expects that WiFi will continue evolving and that
it will not be superseded by WiMAX as the latter’s devices
become cheaper and more plentiful. WiFi based on the
IEEE 802.11n standard with up to 300 Mbps data rates is
already available and it is expected to become a matured
technology by 2010.
He suggested that WiFi offers opportunities for WiMAX
service providers to earn roaming charges in terms of data
from 3G/HSPA/LTE subscribers roaming in their country
by letting visitors with WiFi-enabled devices to roam on
their WiMAX/WiFi hybrid networks.
Locally, WiFi can easily integrate with existing fixed line
and mobile service providers, Internet service providers and
applications & services providers. It also allows WiMAX
and 3G LTE service providers to economise on their limited
licensed bandwidth allocation by offloading traffic onto
WiFi.
As an example, he quoted a project carried out by
Danawa Resources in Sarawak. The company installed WiFi
access points at the Mukah and Miri rural areas in Sarawak,
as well as in the major cities there, covering 250,000 users.
Each user gets 384 Kbps Internet access free for two years.
In 2006, Sarawak only had 1.3% household broadband penetration
and this intervention was significant in increasing
broadband penetration.
Michael Lai, Chief Executive Officer of Packet One
Networks shared his view that growth in Malaysia’s
broadband uptake will follow the same trend as cellular
communications did over the past 10 years. Malaysia’s
cellular penetration went from 9.7% to 90% in 10 years and
the company expects broadband, which was 7% in 2008, to
do the same in the next 10 years.
10
Notebook PCs with embedded or integrated mobile
HSPA/WiMAX chips are expected to make their debut in
2009, followed by consumer electronic devices a year later
and all this is expected to drive up demand for broadband.
WiMAX in a remote village
Nazli Awang Had, Business Development Manager, Intel
Malaysia offered an example of WiMAX helping to bridge
the digital divide in a village in Vietnam. Intel in partnership
with the United States Aid Agency (USAID) and
the Vietnam Data Communications company implemented
a pilot project to provide Internet access in the remote
village of Ta Van, eight hours by train from Hanoi, using a
combination of WiMAX in the locality with a backhaul via
Thailand’s IPSTAR broadband satellite.
He said that Ta Van was chosen because of local political
support, eligibility for Vietnam Telecom Funding, which is
equivalent to Malaysia’s Universal Service Programme (USP)
funding, its tourist potential as a source for a sustainable
business model and its low tele-density of two phone
lines per village, limited mobile coverage and no Internet
access.
WiMAX coverage was provided by Airspan MicroMax,
while IPSTAR provided 2 Mbps downlink and 512 Kbps
uplink in the backhaul to the communications backbone.
The service provided the community with access to
news, chat and online music; tourists with access to blogs,
photo-sites and tourist guides; the school with access to
information on geography, mathematics and other subjects;
farmers with crop and disease information; medical staff
with health and pharmaceutical information; and the
villagers with voice-over-IP communication.
Hybrid approach
REDtone International, one of Malaysia’s four 2.3GHz
WiMAX licensees with spectrum for use in Sabah and
Sarawak, firmly believes in the hybrid use of fixed, satellite
and wireless broadband technologies to provide converged
WiMAX, voice and IPTV services.
According to its Chief Executive Officer, Zainal
Amanshah bin Zainal Arshad, the use of WiMAX for
hotspots alone will be very costly, REDtone adopted the
hybrid WiMAX-WiFi or “Wi-Wi” approach, with WiFi used
in the last sub mile and WiMAX in the backhaul.

One Laptop Per Child (OLPC)
He added that WiFi also faces tremendous congestion
problems in unlicensed bands, especially within the Klang
Valley – Malaysia’s largest urban conurbation including
the capital Kuala Lumpur all the way to Port Klang on the
Straits of Malacca. REDtone believes its hybrid approach
will overcome such problems.
He also noted that WiMAX penetration is also difficult
in buildings. Cost was another issue. While everyone wants
services to be cheap and good, unfortunately WiMAX
equipment is still between 5 and 10 times more expensive
than WiFi, so REDtone doubts that WiMAX will be
cheaper.
REDtone Telecommunications in partnership with
Hotgate Technology is involved in implementing the
Penang Free WiFi project in collaboration with the Penang
state Government. For revenue, it is working on an advertisement-supported
business model whereby users would
have to view a short advertisement before they can surf the
Internet.
While mobility with WiMAX will eventually come,
he said that it is not here yet and there are not enough
economies of scale at present.
At one go
All these concerns about rolling out terrestrial broadband
coverage fast enough can be solved with a stratospheric
Maxis Mobile Car
communications platform called a High-Altitude Platform
Station or HAPS according to Billy Harkin, Group Chief
Executive Officer of QucomHaps Ltd in Ireland.
HAPS systems use a platform such as an aeroplane,
airship or balloon fitted with transmitters, receivers and
antenna and high up in the stratosphere at a more or less
unchanging location and which relay signals between
ground stations and users within their coverage area, much
like a communications satellite.
While in theory, balloons and airships are ideal platforms
with their ability to remain aloft for long periods, in
practice they still face challenges to remain in the desired
location, so aeroplanes are the only practical solution for
now.
The QucomHaps system employs planes, flying at a
height of 20 km above the ground and it works like a 20 km
high communications tower.
Its Malaysian subsidiary, QucomHaps Malaysia,
proposes using five planes, two covering Peninsular
Malaysia and three covering Sabah and Sarawak at any
one time, and they are capable of relaying various types
of wireless broadband signals, including WiMAX, 3G and
digital broadcast TV directly between ground stations
and users below and it does not require any additional
equipment within its coverage area.
Each of the planes covers 125,000 sq km on the ground
below and the five would cover the whole country. Each
plane has a capacity of 35 Gbps or a combined total of 175
Gbps for five planes.
However, QucomHaps Malaysia won’t provide services
directly to end users. Instead, it provides its stratospheric
infrastructure provider for various service providers to
use to deliver their services to users under its footprint.
The company is waiting to sign up its first service provider
customer before it proceeds to launch its facility.
Broadband for all
Lastly, Sarawak company, Danawa Resources shared its
experience in bringing communications and information
services to underserved areas there. Danawa Resources is a
licensed communications infrastructure, service and applications
service provider and it is involved in the Sarawak
Rural Internet Access Intiative.
11

The state of Sarawak comprises 40% of Malaysia’s land
mass and the entire state is a designated Universal Service
area; much of it being rural and underserved.
Danawa is rolling out statewide broadband access using
a combination of fibre, wireless and satellite for very remote
areas. It will carry video, voice and data services and can
be scaled up to include IPTV in the future. Its deConnexion
WiFi service has a range between 3 and 5 km in line of sight
and between 500 and 800 metres in non-line of sight.
Danawa is also involved in the One Laptop Per Child
(OLPC) project for rural schools in Sarawak. OLPC is a
worldwide non-profit organisation which provides each
child with a rugged, low-cost, low-power, WiFi enabled
PC developed by Media Lab and loaded with content
and software which lets them undergo self-empowered
learning.
In August 2008, two schools were selected for OLPC
pilot projects. Their students can access electronic books
and information in the national and state libraries and
it has icon-based learning material for them to learn
mathematics, to play music through its in-built speakers,
do recordings through its in-built microphone and take
pictures with its integrated camera. It also has a drawing
programme and a journal which lets teachers keep track of
each child’s progress.
The children are allowed to take the laptop home, which
increases the awareness of ICT to their parents.
D’Impian Smart Home
Over at the Experiencing Convergence and MyBroadband
2008 Exhibition, the D’Impian Smart Home was the show
centrepiece.
The D’Impian Smart Home is a smart digitally
connected home concept by Telekom Malaysia, SKMM
and the Ministry of Energy, Water and Communications
to showcase what Malaysians can expect in a digitally
connected home facilities enabled by fibre-to-the-home of
up to 10 Mbps as with HSBB. It was set up to give a taste of
the future to Malaysians.
Various state of the art technologies were deployed all
over the concept home. These include RFID readers which
monitor the location of visitors wearing RFID tags or that
keep track of food items in the fridge or cupboard, so that
12
D'Impian teenager's room D'Impian living room
the home owner will know how many items are left over the
Internet and when to replenish them.
The D’Impian Living Room includes a high-definition TV
and a smart home automation console to control the lights,
air conditioning, open and close curtains. These can also be
done via remote control from outside over the Internet.
The D’Impian Teenager’s Room 32-inch TV and a flat
screen computer lets occupants play against their friends
elsewhere in the world. For example, it lets them play games
like football where their on-screen avatar moves in accordance
with their physical movements in the room.
The home also includes a WiFi digital photo frame, a
PC which displays a virtual newspaper in 3D and home
surveillance cameras which let owners monitor their home
via mobile broadband from their digitally connected car.
For those wanting to work from home, there is the
D’Impian SOHO Room with access to e-Biz, e-Government
and e-Surveillance systems, as well as the U & Me Multimedia
Conferencing system which enables video conferencing
with business associates and customers worldwide.
It also showcased TM’s myBIZpoints small business
application that includes an e-commerce platform for doing
business, a content management system, trade materials
and a payment gateway, and if required, it can hook up to
a logistics provider. Telekom is currently offering myBIZpoints
as a package for under RM400 a month, including
a 10 Mbps fibre connection. MyBIZpoints was launched
towards the end of 2008.
The digitally connected car provided by Maxis was
parked at the D’Impian Porch. It lets users monitor surveillance
cameras in the home on their 3G videophone using 3G
and users can also remotely tilt and zoom the camera and
speak with anyone within its vicinity. The Maxis Surveillance
Services also let users monitor surveillance cameras
anywhere in the world in a way similar to conventional
CCTV over an Internet connection.
The Experiencing Convergence and MyBroadband 2008
exhibition was open to the public and saw a large turnout
of visitors. Other than the centrepiece exhibit, the D’Impian
Smart Digitally Connected Home, major telecommunications
companies and service providers exhibited their latest
offerings.

Feature
Malaysia Broadband:
A Leverage To National Growth
Yee Sye Chung shares how
Broadband to the General
Population, Highspeed
Broadband and USP
programmes are pushing
broadband experiences to all.
Broadband is akin to utilities like
water and electricity these days.
The economic and social impact
that come from the implementation
of broadband are well documented
in many countries. From advanced nations to
developing nations, the arrival of broadband
results in a change of lifestyle and gain in
productivity. Broadband penetration is a
catalyst for increased efficiencies in existing
economic activities, and also generates new
services, which contribute towards increasing
the national Gross Domestic Product (GDP).
Broadband overcomes distances and allows citizens and
businesses to participate in the global economy, in addition
to creating a more cohesive regional networked economy.
For a country like Malaysia, with advanced communications
and IT services, the move towards a broadband culture is a
natural next step.
13

By itself broadband is just a connection. However, it is
a superlative enabler of national competitiveness and new
media digitised lifestyle once users take up the content
and applications services over this network – drawing new
breadth and scope of activities from its usage. Applications
that would not work on a dial-up or those that involve
long waits run faster and better with broadband connections.
Broadband is revolutionising all aspects of society. It
is constantly evolving and improving and as it does so, it
spurs new innovations such as in the way instant updated
references are provided for mobile sales force to digital
media storage and archiving facilities in the virtual cloud.
Broadband is spawning services and applications that are
changing how we do things.
In the area of education, it is facilitating information
sharing that spans distances from web conferencing in
offices to the e-education of children in rural areas. It is
changing the face of payment and banking services in for
example, how we can now “wave” pay for our groceries
in a hypermarket. Business to business trades are done
on broadband connections, enabling virtual face to face
dealings, and contracts signed electronically in the shortest
time. Healthcare initiatives benefit from advanced data and
diagnostic technologies to mobile monitoring of patients’
health at the hospital and at home. At the personal level,
1
Users in a broadband centre in a library
entertainment and social networking are taken to whole new
dimensions catering to the various demographic segments
of Malaysian youth, office workers and the elderly.
Broadband is one of the mega trends driving the world
forward in the twenty first century and that too at a very
fast speed. It has taken broadband just five years to achieve
the level of global penetration which mobile telephony, a
mega trend in the early years of the twenty first century,
took nine years to achieve. In short, broadband connectivity
is now growing into a basic necessity for businesses, homes
and individuals; be it through a fixed or mobile connection.
The world is truly networked these days through large data
pipes offering myriad content and service applications which
enable people and businesses to live a modern lifestyle that
goes beyond distances and make the world connectedly
cosier to work, live and play in.
For the past 10 years, ever since SKMM was empowered
to oversee the orderly growth of the Communications and
Multimedia sectors as instituted under the Communications
and Multimedia Act 1998 (CMA), the national regulatory
policy has been towards liberalisation and the promotion of
competition. This has led to the accelerated growth profile
of the communications and multimedia industry in the last
decade from over RM10 billion revenue generated in 1999
to over RM40 billion in 2009. We have yet to experience
the full impact of its spillover effects into other industries,
especially in the case of the enabling effects of broadband
as one of the key enablers to sectorial drivers of a nation’s
competitiveness.
This direction is also one indicated in the Global
Competitiveness Report 2009-2010 by the World Economic
Forum, which prompts Malaysia to use ICT services to move
into a knowledge-based and innovation-driven economy. An
extract of the key message is in the diagram below.

TMpoint on Wheels - Bringing broadband to the Rakyat.
The Ninth Malaysia Plan 2006-2010 emphasises ICT and
its related services as enablers to grow businesses and individuals.
For example, digitisation of content and networked
business processes can provide benefits of labour and time
savings, as well as become a conduit to entrepreneurial
development and innovation. Therefore, the Government is
working hard to increase access to and use of ICT services
and facilities. There is parallel emphasis to further enhance
e-Government services, and encourage ICT applications
usage through e-Commerce.
In line with national objectives, the SKMM is tasked
to work with the industry on a key target of achieving
50% household broadband penetration by the end of 2010.
This is amongst the strategic direction and plans in its
revised framework for industry development that includes
development and roll out of infrastructure and services,
promoting communications and multimedia industry
growth and bridging the digital divide.
While the Networked Content Development Grant
(NCDG) programme supports the localised and local
content development objective of the Ninth Plan, broadband
development in terms of supply and demand follows a multipronged
approach.
This is seen from the policy of using multiple technologies
or a technology agnostic approach for steady rollout
of broadband. Fixed broadband rollout is exemplified
through the public-private partnership project of high speed
broadband network with Telekom Malaysia Bhd. Telekom is
also obligated through the access regime under the CMA
to open up its network to peers and third parties. Fixed
broadband effectively serves the high impact and major
economic areas to support high end usage.
For the larger base of the population in urban areas and
those outside the high impact and major economic areas,
wireless broadband is the key to access high speed broadband
services as it provides speed of supply and requires lower
cost. Examples of wireless broadband services available in
Malaysia today are through 3G/HSPA and WiMAX.
Through these combinations and of course, not forgetting
the fixed wireless option in satellite and WiFi, and the
collaboration of all stakeholders concerned can we see the
national targets achieved therein.
In a holistic approach to “broadbanding” Malaysia,
the National Strategic Framework for Bridging the Digital
Divide as stipulated in the Ninth Plan is further promulgated
through the set up of telecentres, promoting PC ownership,
and increase in availability of more affordable ICT products
and services. For the underserved areas, the Universal
Service Provision programme kicks in.
Private Enterprise
The default broadband access level (that is, to the general
population) being rolled out wherever possible aims to
deliver broadband speeds of between 2 Mbps and 10 Mbps.
Both wired and wireless broadband technologies are in use.
The fixed ADSL broadband technology is adopted by
nearly 1.5 million subscribers by third quarter 2009; nearly
double from 740,000 subscribers in 2006. ADSL is currently
the most widespread broadband technology. At the
beginning of 2007, the figure stood at 780,000 subscribers.
This near doubling of subscribers in two years is a good
gauge of the attractiveness of broadband. Most of ADSL
connections are found in urban and semi urban areas as
these are where copper telephony lines, which are required
in ADSL, were already in place. ADSL subscribers numbered
1.5 million at the end of 2009.
Mobile broadband usage is increasing even more rapidly
than wired access currently. There are two main wireless
technologies that are bringing mobile broadband to the
masses. 3G and its upgrades such as HSPA (and HSPA+)
are offered by the 3G mobile service providers. The other
emerging technology is WiMAX.
At the start of 2007, there were only 11,000 3G mobile
broadband subscribers. By the end of 2008, the figure stood
at 386,000 subscribers. The sharp growth continued with 3G
mobile subscribers reaching 747,000 by the third quarter of
1

2009. WiMAX growth is still in early stages but is on the
rise too. P1, the leading player in the WiMAX wireless sector
reported that its subscribers grew from 25,000 in Q2 2009 to
over 36,000 subscribers in Q3 2009 which is an increase of
over 40% , albeit from small base, in the period concerned.
The High Speed Broadband (HSBB) project which will
bring high speed broadband in excess of 10 Mbps to high
density economically critical areas is set to be implemented
by Q1 2010. Under the Plan, the Government is partnering
with Telekom Malaysia (TM) in a Public-Private Partnership
(PPP) arrangement to implement the HSBB project. TM
announced in December 2009 that it has started a trial
involving 122 households of its HSBB services in Bangsar,
Taman Tun Dr Ismail, Subang Jaya and Shah Alam. The aim
is for commercial and retail availability of its HSBB services
at the end of the first quarter of 2010 in the above-mentioned
four selected areas.
Service providers, both wired and wireless are doing
their part to drive demand for broadband. Fierce competition
among both wired and wireless providers have driven
broadband access prices down. Heavy advertising by all
players too have increased consumer interest in broadband.
Content creation is also being addressed by service
providers. Packet One sponsored the 15th Malaysia short
film project early this year. Maxis is spurring content development
through its Maxis Developer Programme. TM is
building a content aggregation platform that will give smaller
developers a platform to market their products. Celcom (M)
Bhd (Celcom) has launched the League of Extraordinary
Developers Challenge 2008 to encourage mobile developers
in the country to develop innovative mobile solutions
that are relevant in today's telco industry. The contest is
a collaborative effort of Celcom with Microsoft Malaysia
and Cradle Fund Sdn Bhd. To date, Celcom is targeting to
commercialise 24 new mobile solutions from winners of the
contest in 2009 .
Government Support
The Government has various initiatives to address both
demand and supply of broadband.
On the supply side, SKMM is utilising USP funds to bring
broadband infrastructure to areas where demand is low. A
1
Launch of wireless HSPA
service by DiGi
technology neutral approach in this area ensures that every
area where broadband access is being brought under the
USP programme will receive the most suited technology for
that particular area. Both wired and wireless technologies
which also include VSAT are considered when implementing
USP projects. New spectrum allocation was also
accelerated to WiMAX service providers. To assist services
rollout in underserved areas, SKMM enlist the assistance of
state government in land acquisition through state-backed
licensees who can then install towers for service providers’
antenna.
In line with the national strategic plan to accelerate
ICT services, recent national budgets saw the Government
providing tax allowances for expenditure on last-mile
broadband equipment. This includes the last mile network
facilities providers being given an investment tax allowance
of 100% on capital expenditure incurred for broadband.
Import duty and sales tax exemptions are also given on
broadband equipment and consumer access devices.
Home users too are being given incentives to install
broadband. The current Budget of 2010 saw the Government
propose giving taxpayers tax relief on broadband subscription
fee up to RM500 a year. Also a netbook package with free
broadband is offered to university students for RM50 per
month for 2 years. For a start, this package will be offered
by Telekom Malaysia to 100,000 local university students,
effective 1 January 2010.
On the demand side, SKMM administers a Networked
Content Development Grant (NCDG) that assists in funding
content projects. A total of RM50 million is available under
the NCDG grant programme. The Government is also
enlisting other agencies into the campaign to spur content
development. The Government has announced that it will
set aside RM300 million for content industry development.
MDeC is administering the Integrated Content Development
Taskforce (ICON) funding programme that opens more
funding opportunities to content developers. These content
projects are expected to spur demand for content.
Another key initiative is the provision of citywide
free WiFi in urban areas. Kuala Lumpur has a free WiFi
programme that involves the setting up of access points
at government buildings and popular spots. Over in

Launch of Digital Generation Initiative in Bagan Pinang, Negeri Sembilan
Penang, the state government has launched Wireless@
Penang project which is also aimed at giving Penangites
free wireless broadband services. The Penang Project is
coordinated by the state government but it involves no
Government expenditure as private service providers are
rolling out the infrastructure. Another development is that
Miri town in Sarawak is WiFi-enabled to provide high speed
Internet connection in support of personnel in multinational
companies, for example, Shell, Petronas and others requiring
such networked environment. Public safety is also enhanced
through public safety agencies using this network.
At the same time, the digital divide is also not forgotten.
SKMM is also mandated to work towards narrowing the
inequalities of access that exists in underserved areas and
populations. The USP programme is the key tool employed
by SKMM in this regard. Household use of Internet is overwhelmingly
prevalent in urban homes.
SKMM is addressing this issue by rolling out infrastructure
in underserved areas. Since this alone will not
spur broadband penetration, the Government is addressing
the issue of affordability in these areas as well by subsidising
broadband costs where necessary. However in many cases,
cost is not the only deciding factor in driving broadband
penetration. Awareness of the advantages of broadband
is also crucial. To spur awareness and consequently drive
demand, SKMM is using the community approach in these
areas.
Under the USP programmes, community access
programmes are seen as meeting two-fold objectives.
Initially, these community access points will bring Internet
access and user guidance to areas totally without Internet
access, or where affordability of individual PCs or connections
may be an issue. This will allow the population in the
area to access services and applications that were previously
not possible. Students are able to access education
and information resources. Adults are exposed to work
related material and applications. In area after area, where
community broadband centres have been set up, tremendous
response has been seen from the population, indicating that
broadband is relevant to their lives.
This exposure to broadband is then expected to drive
demand from the population where USP programmes have
been implemented. Once they experience first hand the
possibilities and convenience of broadband, citizens living
in rural areas will be attracted to bring broadband to their
homes thus addressing to some extent the issue of low
broadband penetration in rural homes.
SKMM and other government agencies have various
initiatives in enhancing community access in underserved
areas. As of 2008, there are 85 Community Broadband
Centres, 105 Library Broadband Centres, 42 Rural Internet
Centres, and 58 Community Communications Development
Programmes located all over the country with more planned
to be set up.
Conclusion
There is still a lot to be done but broadband is clearly a
part and parcel of Malaysian lifestyle already. Access is
still a challenge for rural areas where infrastructure is still
not fully available. Cost is another issue that will have to
be addressed over time but history has shown that costs
in the ICT sectors fall sharply over time when the services
are widely available. Therefore, cost is perhaps a self-solving
problem as demand increases to a certain threshold level to
allow economies of scale in supply to kick-in. Nevertheless,
all stakeholders, including consumers, have to work very
hard to ensure the threshold is reached fast.
With that, more Malaysians will bring broadband to
their homes, especially this year, and in the next year. The
only caveat is that service providers must maintain service
quality so that these consumers get the right experience
from the word “go”.
Yee Sye Chung is a Director at the
Market Research Department, SKMM.
She can be reached at scyee@cmc.gov.my
1

ConneCted
Malaysia
How it was done.
Growing adoption of broadband services
across the Asia-Pacific region is fundamentally
transforming the communications
landscape of the world’s most
populous continent.
Thanks to proactive investments and concertedly
pro-broadband policies, countries once known for their
relatively immature telecommunications infrastructures
are now jumping ahead of the global pack. Their common
goal—to bring the benefits of broadband and robust Internet
connectivity to all citizens—promises to transform Asian
societies in dramatic and enduring ways.
Investments in both fixed and wireless telecommunications
is driven in large part by widely accepted arguments
that the spread of broadband is linked to broader economic
and social development measures.
Malaysia’s leadership brings an integrated and holistic
approach to the challenge of low broadband penetration.
Strategic policies and accelerated enablement of a competitive
wireless broadband market are central to the very real
progress being made in Malaysia.
Malaysian citizens are now experiencing new innovative
and highly competitive broadband offerings, opening up a
whole world of economic opportunities for providers and
consumers across the country.
Asia-Pacific Broadband Situation
Access to many basic services, such as online banking, ecommerce
and e-government, is simply impossible without
adequate broadband. So, too, is access to a new generation
of content services such as live television and streaming
media; interactive online applications; wireless gaming;
1
Feature
videoconferencing and other forms of communication. Even
basic usage can make a dramatic difference in quality of
life and economic prosperity, as was observed when Korea’s
Information Village (INV) 1 program brought Internet
services to rural Korean villages for the first time.
Internet takeup figures suggest there is no question
that consumers want these services and will embrace them
when they’re available. An analysis by firm Frost & Sullivan
predicted 13 key regional countries will grow from 129.7
million Internet subscribers in 2007 to reach 321.8 million
subscribers by the end of 2013. Separate figures suggest
that China alone recently passed 300 million Internet
users. Frost & Sullivan predicts the market’s total value is
expected to jump from USD 28.1 billion in 2007 to more
than USD 42 billion by the end of 2013.
As a result of this growth, household penetration rates
will rise from 15.2 percent in 2007 to 33.7 percent in 2013,
Frost & Sullivan figures suggest. Yet many of Asia’s leading
economies have already surpassed these figures: South
Korea (90.8 percent), Hong Kong (83.8 percent), Taiwan (76.8
percent), Singapore (73.1 percent), Australia (63.2 percent)
and Japan (57.8 percent) have broadband services of one
kind or another.
With such high penetration rates, in these countries
when the regional average is much lower, confirms that
other Asia-Pacific countries have extremely low broadband
penetration. It is also worth noting that the leading countries
all have an extensive landline infrastructure that is
not typically found in less-developed Asian countries.
This relatively mature infrastructure has helped several
Asian countries rank well in the International Telecommunications
Union’s 2009 ITU ICT Development Index (IDI),

included in its publication Measuring the Information
Society 2 IDI rankings for 2007 which placed South Korea
(No. 2), Hong Kong (No. 11), Japan (No. 12), Australia (No.
14), Singapore (No. 15), New Zealand (No. 16), Macao (No.
21) and Taiwan (No. 25) in the top 25 countries or territories
out of 154 surveyed.
Although it is only evaluated every five years, the IDI
provides a widely-accepted index of countries’ relative
information and communications technology maturity.
The eleven IDI assessment criteria include mobile cellular
subscriptions, international Internet bandwidth, households
with computers, households with Internet access,
main telephone lines, Internet users, fixed broadband
subscribers, mobile cellular broadband subscriptions,
secondary enrolment, tertiary enrolment, and overall
literacy.
The IDI ranking is thus an indicator not only of telecommunications
investment, but overall educational policies,
penetration of technology into everyday life, and the country’s
connectedness with the rest of the world. A low ranking
indicates there is still much work to be done to meet world
standards of connectivity, as many less-developed Asian
countries found out. Brunei Darussalam (No. 41), Malaysia
(No. 52), Thailand (No. 63) and China (No. 73) all ranked in
the second quartile of the IDI; Philippines (No. 91), Vietnam
(No. 92) and Indonesia (No. 108) were in the third quartile;
and Laos (No. 117), India (No. 118), Myanmar (No. 119),
Cambodia (No. 121), Bangladesh (No. 138) and Nepal (No.
139) all ranked in the fourth quartile globally.
Malaysia: Telecommunications
Environment
Malaysia has a long history of promoting high-tech development,
manufacturing and investment within its boundaries,
having extensively focused on the ICT industry as a
key pillar of growth under the successful economic policies
of Prime Ministers Mahathir and Abdullah. However, the
country still faces a yawning digital divide not unlike
that facing its contemporaries across Asia, Africa, and the
Middle East, which has contributed to its 52 nd place IDI
ranking.
Malaysia’s 26 million people and 328,550 square kilometers
of land are split both physically and economically,
with a highly urbanised population in which 70 percent of
its people—and the majority of its economic activity— re
concentrated in urban areas including Klang Valley (home
to approximately 6 million people in Kuala Lumpur and
surrounds), Penang, Melaka, and Johor.
Telecommunications infrastructure has naturally
favored these areas, with government-linked fixed-line
incumbent Telekom Malaysia (TM) providing ADSL
broadband known as Streamyx, a brand of its ISP arm
TM Net, in heavily populated areas. In a September 2007
demerger, TM split its fixed-line and mobile businesses into
two separate companies, with TM retaining the fixed-line
business while TM
International takes up the mobile
business.
TM International includes TM’s domestic mobile operator,
Celcom, as well as international mobile subsidiaries in Sri
Lanka, Bangladesh, Indonesia, Singapore,
Cambodia, Iran, India and Pakistan; FixedCo is responsible
for the fixed-line business, ISP and other related businesses.
TM International rebranded itself in May 2009 as
Axiata Group.
Some 2.7 million fixed residential phone lines are in
use, equivalent to 45 percent of the country’s 6 million
households. However, overall broadband penetration over
this infrastructure is still low—just 23.0 (Q1 2009) percent
of households, according to government figures. And for the
30 percent of the population that lives outside key urban
areas, broadband—and fixed lines—is all but limited or
nonexistent.
Mobile penetration in Malaysia is high, with the largest
operators being Maxis Communications (8.5 million
subscribers), Celcom (7.8 million customers) and Digi.
All three offer 3G services, although they have so far
focused on the most densely populated parts of Malaysia.
GPRS services are available via widely used 2.5G mobile
networks, but they are inherently unsuited to delivering
broadband services. Even 3G broadband services often
struggle with slow throughput, congestion and highly
variable signal strength that makes them unsuitable for
providing landline-equivalent services at a large scale.
However 3G upgrades to HSDPA have improved the delivery
and demand has been strong and in a recent study (MCMC
Mobile Broadband Study 2008) 39.4% of subscribers are
1

"We are aiming to increase
broadband penetration from 23.0
(Q1 2009) percent today, to 30
percent of households by the
end of 2009 and 50 percent of
households by the end of 2010."
Mohamed Sharil Tarmizi,
Chief Operating Officer,
Malaysian Communications and Multimedia Commission
found to be using it as the only broadband connection to
their home.
Given the limitations of existing mobile services
and incumbent status of TM, which has maintained its
competitiveness in the fixed infrastructure, competitors
have turned to HSDPA and WiMAX for the delivery of
much-needed broadband service alternatives. HSDPA and
WiMAX not only frees these new operators from reliance
on TM’s fixed network, but allows them to rapidly bring
entire cities online and extend coverage from one side of
the country to the other.
For city dwellers whose choice in broadband has been
limited to whatever ADSL services they can get from TM,
HSDPA and WiMAX promises not only a new alternative
but provides mobility that simply cannot be had with
ADSL.
Private-sector efforts to expand broadband coverage
using wireless technologies are supported by a concerted
government focus on utilizing the proceeds of the statutory
Universal Service Provision (USP) fund, an escrow scheme
to which telecommunications providers contribute 6
percent of their gross revenues as well as tax incentives on
investment in broadband infrastructure.
The fund was created by the government during the
2001-2002 financial year, and has steadily grown to be
worth more than MYR 2 billion (USD 573 million). As
the Malaysian government continues executing its Ninth
Malaysia Plan 3 —a five-year strategic direction for the
country’s development through 2010—the USP fund has
been diverted to a range of telecommunications providers
in an effort to bring viable broadband services to the entire
population for the first time.
Ninth Malaysia Plan: Broadband is
Key
Government support of wireless telecommunications is a
significant enabler to the
Malaysia Plans, an overall doctrine that defines
Malaysia’s strategic growth strategy through 2020 and has
significant bearing on the country’s telecommunications
market.
The Ninth Plan explicitly names ICT as a field of
importance, including further ICT-related industrial
growth and efforts to support the local digital content
20
industry and cutting-edge areas such as bioinformatics.
The Ninth Plan also includes measures to “increase access
to and utilisation of ICT services and facilities, including
enhancing e-Government and encouraging the usage of
e-commerce among businesses and consumers”, and to
promote small and medium enterprises’ “entrepreneurial
and technical capability…through the application of ICT
and e-commerce”.
Availability of suitable broadband infrastructure is
critical to delivering on these goals. To improve availability
and minimize rural-regional infrastructure disparities,
the Ninth Plan includes support for broader public-private
sector partnerships to stimulate investment in the development
of Malaysia’s overall infrastructure and utilities.
“Emphasis will be given to Government-initiated projects
based on national priority,” the plan states.
In an effort to bridge the ‘digital divide’, the Ninth Plan
has also mandated the development of an infrastructure
plan for universal access to the Internet, and increased
availability of more-affordable ICT products and services.
These efforts are incorporated into the National Strategic
Framework for Bridging the
Digital Divide (BDD), including the establishment of
‘telecenters’ providing banks of public-use computers
in underserved areas, tariff reduction for telephone and
Internet subscriptions, and promotion of PC ownership.
Also identified as a government priority is the need for
locally developed content. Government representatives
identified early on that it was important to not only develop
the supply of broadband, but to build new applications and
content to increase demand for broadband services. The
BDD thus also includes a broad range of initiatives, including
promotion of telehealth services for rural areas, creation
of compelling e-government services, and promotion of
locally-relevant content and online applications in Bahasa
Malaysia and other local languages.
These initiatives, and others, have been formally
supported by the Malaysian
Communications and Multimedia Commission (MCMC)
through the Networked Content Development Grant
(NCDG) 4 program. Created to fulfil the content-development
aspirations of the Ninth Plan, the NCDG provides grants “to
facilitate and encourage Malaysians’ involvement in the
creation, production and distribution of highly creative,
original and marketable networked content for domestic
and international markets.”
Executing the Malaysian Ninth Plan
While the Ninth Plan includes explicit support for infrastructure
and ICT development, the task of delivering
on these goals rests on the industry led by the MCMC, a
statutory body created in 1998 to promote the government’s
communications- and multimedia-related policy objectives,
as espoused in the Communications and Multimedia Act
1998.
To guide the industry towards achieving these goals,
the MCMC has developed a Framework for Industry Development
(FID) which is in its revised and soon to be released

third edition, will continue to
further encourage the development
of ICT infrastructure and services
across Malaysia through 2012. The
FID targets include development
and roll out of infrastructure,
services, growth and bridging the
digital divide, effective management
of resources and enhancing capacity
and capability as key focuses for the
industry.
Reflecting the confluence of
purpose between the FID and
the Ninth Plan’s ICT development
goals, in May 2008 the Malaysian
government announced 6 a publicprivate
partnership to deliver
minimum levels of broadband
service across the country.
The partnership, targets
areas with high impact or major
economic areas with high-speed
broadband services of speeds of
at least 10Mbps and 2Mbps to
areas outside. This has seen the
Government working in partnership
with TM to deliver the basic 2Mbps
and high speed 10 Mbps to 1 Gbps
services to 1.3 million premises by
2012. This initiative, which includes
a MYR 2.4 billion (USD 688 million)
government investment and
MYR 8.9 billion (USD 2.55 billion)
investment by TM, is focused on
bringing broadband connectivity to
a greater part of the nation with the
infrastructure to support ADSL and
faster technologies.
In parallel with the above,
wireless broadband providers are
given tax incentives on investment
in broadband infrastructure to
encourage them to come on board
to participate in providing choice
and alternative broadband services
throughout the country. Wireless
being the key focus here as it
provides the first mover advantage
and a quicker roll out at a lower
cost. This approach is taken as
the government recognizes that
implementing similar fixed-line
infrastructure in those areas would
be too high as the cost is estimated
at MYR 56 billion (USD 16 billion).
However in underserved areas,
encompassing the remote rural
communities, the USP funding
is used to supply cellular and
broadband services thus closing
the remaining gap in broadband
delivery to reach all.
Enabling the Malaysian
Wireless Broadband
Market
Upgrades to existing infrastructure
were deemed viable in high impact
and major economic areas, which
would deliver better ADSL services
to existing fixed-service customers.
However, market dynamics made
it clear early on that wireless
broadband was the only way to
provide large numbers of people
with access to higher-speed services
in urban areas. It was also clear
that the service objectives for areas
outside the high impact or major
economic areas could only be met
using wireless broadband.
“We are aiming to increase
broadband penetration from 23.0 (Q1
2009) percent today, to 30 percent of
households by the end of 2009 and
50 percent of households by the
end of 2010,” explained Mohamed
Sharil Tarmizi, Chief Operating
Officer, MCMC. “We felt the wireless
approach would be able to cover the
country faster than a wired rollout.”
MCMC thus embarked on a
process to issue new spectrum
licenses to four companies - each
separate from existing mobile
players - to roll out new wireless
broadband services. That allotment
saw each of three companies
licensed to offer wireless broadband
services in the 2.300 GHz to 2.400
GHz radiofrequency band, with
each company receiving 30MHz of
spectrum to start with. Whereas
such selections have previously
been made by competitive auction
in other countries, the MCMC took
a different approach, known as
a ‘beauty contest’. This approach
focuses not on financial offers, but
rather makes decisions based on
issues such as an evaluation of each
applicant’s experience, financial
capability and implementation plan.
The criteria may also require that
the applicants demonstrate their
commitment to specific service
Enter WiMAX
For a growing number of carriers
and startup companies, WiMAX
(Worldwide Interoperability for
Microwave Access) is the most
effective way of providing mobile
broadband without the costs and
data-performance limitations of 3G
mobile networks.
WiMAX provides a fully packetbased
infrastructure that enables
true DSL/ cable performance, but,
it’s mobile-wireless. WiMAX is also
well-suited as landline replacement,
with full support for landline-equivalent
services and performance
characteristics that are better suited
to high-data usage than, voicedesigned
technologies (GSM, 3G,
etc.)
Recognizing the advantages
of WiMAX technology, many
governments around the world
are promoting WiMAX deployments
that promise to bring large
swathes of their countries online for
the first time. Early pilot programs
sponsored by Intel and local
development authorities, under the
auspices of the Intel World Ahead
Program 9 , have confirmed the
suitability of WiMAX for providing
land-line equivalent services in both
urban and rural Asian areas, in
both highly- and sparsely-populated
areas spread over a range of flat
and mountainous geographies.
For example, a partnership
with the United States Agency for
International Development (USAID)
and Vietnam Data Communication
Company (VDC) used
WiMAX to deliver data and
Voice over IP services to a number
of villages in the mountains around
Lào Cai province 10 in northern
Vietnam. A companion project
used broadband satellite links and
WiMAX to bring broadband to the
remote village of Ta Van 11 .
21

objectives and national priorities. Applications are assessed
and scored before being offered a fixed price set by MCMC.
The ‘beauty contest’ approach allowed MCMC to deemphasize
commercial factors - which would likely lead to
a focus on infrastructure in high-density, high-profit capital
cities - and instead to secure an ongoing role in development
of the licensed services.
And while the government policies are technologyneutral,
WiMAX was identified early on by the industry as
being an ideal wireless broadband for spectrum recipients
due to its wide coverage area, high bandwidth, low cost of
customer premises equipment (CPE), and history of robust
deployments.
Acceleration Strategies and Policy
Retaining control over the rollout, rather than simply
throwing the new spectrum to the highest bidder, meant
the government could set specific objectives for spectrum
recipients - which included Packet One Networks, Asiaspace,
REDtone-CNX Broadband and Y-Max Networks.
The first milestone set by the government mandated
that providers commercially launch their service by the end
of August 2008, cover 25 percent of Malaysia’s population by
the end of March 2009 and 40 percent of the population by
March 2011. Companies that do not meet the targets could
be fined, have their licenses revoked, or lose their performance
bond of up to MYR 7.7 million (USD 2.2 million).
Tight monitoring of progress against objectives also
allowed the government to ensure the providers extend
their wireless broadband services into regional areas in
their committed business plans. Operators would be held to
rollout milestones, as well as commitments made with the
intention of fast-tracking the wireless rollout. In exchange,
the government gave operators tax incentives on the
purchase of wireless base stations and related equipment.
Government involvement also ensured assistance for
providers in the often-difficult process of negotiating access
to land for installation of base stations. Since 2004, this
process has been hastened through the government’s Time
One and Time Two projects, which involved the installation
of more than 2,000 towers and 5,000 base station transmitters
to build out Malaysia’s cellular infrastructure. More
recently, the
22
Time Three project added another 1,150 towers that will
help extend 2.5G mobile coverage to 97 percent of Malaysians
by 2011.
The towers - of which there are now a total of more
than 13,000 across both Malaysia’s cities and rural areas
- were initially put up to support mobile networks, but are
equally suitable for HSDPA and WiMAX. With government
support, they have been made available for equal access
by all wireless telecommunications providers. Generally,
towers are shared by two to three operators.
This approach has ensured telecommunications
providers can install their equipment without being caught
up in the complexity of local planning laws and policies.
“The issue of base station site acquisition remains a major
issue,” said Sharil. “There are many areas where land belongs
to native populations and it can be difficult for private
operators to gain access. We help the state government get
involved in land acquisition through state-backed licensees
so that they can get the right to install their towers and
operators their antennas.”
Driving Connectivity Beyond The City
Although facilitating the physical installation of HSDPA
and WiMAX equipment has helped the MCMC realize the
goals of the Framework for Industry Development, it is only
one part of the government’s overall strategy to promote
broadband access in rural areas.
Because PC ownership rates are still quite low in those
areas, even offering wireless broadband isn’t enough on
its own. In an effort to improve access to PCs, the MCMC
has allocated USP funding to facilitate the development of
Community Broadband Centres (CBCs) - centralized locations
where a dozen or more PCs are set up and share a
single broadband connection. A related initiative, called
Community Broadband for Libraries (CBL), has worked
to install shared PCs and broadband services at suitable
public libraries across the country.
Addressing access to PCs as well as access to broadband
has helped the government lay the foundation for much wider
use of broadband services. With several wireless broadband
players now progressively rolling out their services, the
government is maintaining its close partnership with the
industry and working to ensure its policies facilitate the
rapid spread of wireless broadband out of Malaysia’s major
cities to every corner of the country.
“The government is committed
to promoting the unity of the
Malaysian people by connecting
our many societies and enabling
the flow of ideas, knowledge,
history, and innovation.”
Mohamed Sharil Tarmizi,
Chief Operating Officer,
Malaysian Communications and Multimedia Commission

Yet, even as it moves through rural areas stimulating
broadband development, the Malaysian government is also
working to build up related infrastructure in a range of
ancillary areas.
For example, it is making a concerted effort to address
the ever-increasing need for international backhaul
capacity. With such a rapid growth in end-user access
speeds, backhaul is particularly important to ensure
that international links don’t become a congestion point
that slows down broadband nationwide. To this end, the
government is exploring a range of incentives to encourage
operators of undersea cables to land their fibre-optic links
in Malaysia.
In line with the ambitions of the NCDG program, the
government is also working to educate different population
groups—from university students to rural farmers—about
the myriad benefits they can gain by becoming actively
engaged with the possibilities broadband presents.
“It’s a steady process of educating people and making
them aware that their market is not just there around them,
but can be the whole of Malaysia and the world,” said Sharil.
“The government is committed to promoting the unity of
the Malaysian people by connecting our many societies
and enabling the flow of ideas, knowledge, history, and
innovation.”
Malaysia’s First WiMAX Operator:
Packet One Networks
Just 18 months after it was issued one of Malaysia’s four
WiMAX licenses, operator
Packet One Networks (Packet One) 7 is working in top
gear to maintain its momentum as it races to blanket the
country in WiMAX service.
After receiving its spectrum license in early 2008, Packet
One kicked off a whirlwind network rollout with WiMAX
base stations and CPE from companies such as Alcatel-
Lucent*, Huawei*, Motorola*, and Navini Networks*. Packet
“The response from customers has
been very encouraging,” he said.
“They recognize that broadband is
no longer a luxury item; it’s today’s
must-have, and it’s a necessity not
only from a lifestyle perspective
but also from the point of view of
business, education, and getting
connected to the world.”
Michael Lai, CEO,
Packet One Networks
One has also worked closely with the MCMC and enjoyed
the support of investors including Intel Capital.
Packet One initially launched its services across Kuala
Lumpur and the Klang Valley, targeting metropolitan areas
that helped it quickly reach large numbers of customers.
By promoting the benefits of wireless broadband
compared with the very limited existing options, Packet
One was able to build awareness in the general population
and signed up over 45,000 subscribers in its first eleven
months.
CEO Michael Lai said the company is right on track to
meet its target of 200,000 subscribers by the end of 2009
- at which point the company will break even on an EBITDA
basis. “The response from customers has been very encouraging,”
he said.
“They recognize that broadband is no longer a luxury
item; it’s today’s must-have, and it’s a necessity not only
from a lifestyle perspective but also from the point of view of
business, education, and getting connected to the world.”
Competitive Innovative Choice for Consumers
Operating under the brand P1, Packet One initially offered
a broadband modem service that provides a fixed-line
replacement to homes within its coverage area.
The P1 WiMAX modem—which costs MYR 199 (USD
57) upfront, MYR 20 (USD 6) per month on a 12-month
contract or comes free on a 24-month contract—connects
to the company’s WiMAX network and provides connections
for local computers via a built-in Wi-Fi hotspot. Plans
range from MYR 49 (USD 14) per month for a 400 Kbps/150
Kbps service with 5 GB downloads up to MYR 339 (USD 97)
for an Office
Premium service with 2.4 Mbps/500 Kbps speeds and
unlimited downloads.
Packet One’s services have appealed to both new
broadband users and existing ADSL customers, who find
the WiMAX, service a compelling alternative because they
23

“Especially in developing economies
like Southeast Asia, WiMAX is a
great way to bridge the digital divide;
our experience has been that ‘if you
build it, they will come’.”
Michael Lai, CEO,
Packet One Networks
no longer have to pay TM for a conventional fixed service.
Combined with faster speeds and more consistent overall
performance regardless of the quality of in-ground copper,
customers continue to see great value in Packet One’s
services.
In April 2009, the company complemented its fixed-line
replacement service with WIGGY, a mobile broadband
service that is accessible from notebook PCs using a MYR
299 (USD 86) USB dongle. WIGGY, which provides up to 10
GB of downloads per month at speeds of up to 10 Mbps,
costs MYR 149 (USD 42) per month and is bundled with an
Acer Aspire One netbook* as a customer incentive.
Although WiMAX provides large coverage cells at high
speeds, the launch of WIGGY was delayed to ensure Packet
One had broad enough WiMAX network coverage that it
could meet customers’ expectations of seamless coverage,
Lai explained.
The company now has over 300 base stations, and
expects to reach 700 sites by the end of the year. This will
include steady expansion into suburban and rural areas as
its network continues to grow. Once it has achieved broad
coverage across peninsular
Malaysia, the company will extend its network across
Sabah and Sarawak Malaysia as well.
“Especially in developing economies like Southeast
Asia, WiMAX is a great way to bridge the digital divide; our
experience has been that ‘if you build it, they will come’,”
Lai explained. “Our challenge is basically that we can’t build
fast enough. So we just need to keep moving as quickly as
possible. We have a very aggressive growth plan, and we are
pushing ourselves very hard.”
Key Lessons for Packet One
Packet One’s aggressive growth plan has been conceived
to keep up with the government’s targets for network
2
coverage, which included reaching 25 percent of Malaysia’s
population by early 2009 and 40 percent of the population
by 2011.
While growing from nothing to become a nationwide
wireless carrier hasn’t been easy, Lai said it has been
helped by the company’s focus on training employees in IP
networking and project management skills.
“It has been a learning journey throughout,” he said. “The
quality of the network has to be there and, even today, we’re
still continuing to learn as we expand its capabilities.” Strong
support from vendors and partners has been essential, with
the WiMAX rollout treated as a shared learning experience
from which all parties have learned lessons and to which all
parties have contributed.
For example, ongoing improvements to the Alcatel-
Lucent base stations allowed the partners to boost the
capacity of Packet One’s network from around 30 concurrent
users per base station to 120 concurrent sessions; in the
future, this is expected to jump to 360 concurrent sessions,
greatly enhancing the network’s overall service capacity
without requiring major new infrastructure investment.
Lai singled out Intel, which has provided both financial
support for Packet One through its Intel Capital arm,
and technical advisory support in helping Packet One
keep abreast of developments in WiMAX standards and
compliance programs.
Tapping into partners’ resources has also been
invaluable in engaging citizen groups throughout the
rollout, dispelling fears about the introduction of new
sources of radiofrequency radiation and explaining about
the potential economic and social benefits the services will
provide.
Lai credited the government’s hands-on policy framework
for easing the rollout - both in terms of facilitating
access to suitable transmission towers, and in terms of

supporting efforts to build a broader market for the wireless
broadband by stimulating demand for relevant content.
This fits in with Packet One’s own philosophy which, he
said, is built around a ‘3C’ strategy—connectivity, communications,
and content. With the network rollout proceeding
rapidly, the company has also signed interconnect agreements
with mobile and fixed voice carriers, which will
allow it to begin offering VoIP-based voice services to its
customer base over the same WiMAX links. This will grow
it into a full-service telco able to offer subscribers yet
another reason to abandon their fixed lines.
In tasking MCMC to act as the single, central government
agency to support Packet
One and other carriers’ wireless rollouts, Lai said the
Malaysian government had put into place a solid regulatory
and policy framework that will ensure the country
realizes the benefits of WiMAX as quickly and effectively
as possible.
“Throughout the rollout, you not only have to deal
with local permitting regulations and red tape, but with
the community as well,” he said. “By setting up a one-stop
agency to deal with the telcos, the government has done a
very good thing. If you have a commitment from the head of
state, a task force set up with the state government, and the
support of that one-stop agency, your rollout process will be
much smoother.”
Conclusion
The Malaysian Government and telecom industry has taken
a very active role in accelerating and enabling national
access to broadband and the social-economic opportunity
it brings.
New innovative and cost-effective broadband market
choices, like HSDPA and WiMAX, have required the
Government to rapidly establish new policies and strategies
- in order to bring their vision to reality.
In summary these were:
• A clear recognition at the highest political level, to the
role of broadband and the country’s national interests,
through it’s prioritisation in the national strategic plan,
associated policies and budgets.
• Recognition that current technologies (fixed or
wireless) would not bring the broadband penetration—to
consumers in the time-frame set by Government
broadband objectives.
• In energising the marketplace to invest, innovate and
deploy new wireless broadband networks—new
spectrum allocations were accelerated, by
• rapidly bringing new spectrum to market,
• including network ‘build-out clauses’, and penalties
for not complying,
• ensuring tendering 30 MHz assignments, to ensure
robust business cases and to attract quality invest-
ments for network deployment.
• Co-investing in enabling infrastructures (towers, etc.)
for the communications industry to rapidly deploy new
wireless (voice and data) services,
• Evolving policies like USP, enabling strategies like the
Framework for Industry Development (FID) and grant
schemes like the Networked Content Development
Grant (NCDG) 8 program to ensure development of new
innovative services, universally - nationwide.
Malaysia is well on the way to realising its broadband
goals. The country and it’s citizens now stand to realise
true social-economic developments from e-education, egovernment
services, e-health and e-commerce, as these
services transform their lifestyles. Not only will these
services stimulate the economic prosperity of the people,
but will usher in a whole wave of digital innovations and
new economic opportunities for the country.
1 Reference: http://worldahead.maplecroft.com/downloads/
INTDIG06/11043_1901_CS_Kinvil_27_04.pdf
2 Reference: http://www.itu.int/ITU-D/ict/publications/
idi/2009/index.html
3 Reference: http://www.epu.gov.my/rm9/html/english.htm
4 Reference: http://www.skmm.gov.my/what_we_do/ncdg/
ncdg.asp
5 Reference: http://www.skmm.gov.my/about_us/fid.asp
6 Reference: http://www.skmm.gov.my/newsdesk/press/View
PressRelease.asp?cc=9116794&prrid=61968632
7 Reference: http://www.p1.com.my
8 Reference: http://www.skmm.gov.my/what_we_do/ncdg/
ncdg.asp
9 Reference: http://www.intel.com/intel/worldahead/
10 Reference: http://worldahead.maplecroft.com/downloads/
INTDIG06/lao_cai_case_study.pdf
11 Reference: http://worldahead.maplecroft.com/downloads/
INTDIG06/ta_van_case_study.pdf
The White Paper is
reprinted with permission
from Intel
2

2
Feature
BroadBand
expLained
What is Broadband and What it Means to Us?
T
Dial-up User can do:
Dial-up infrastructure
Web browsing at slow speed
Basic email
he term “Broadband”, is a short form for “broad bandwidth”. This refers to
faster and high capacity Internet access compared to the traditional dial-up
access. With broadband transforming our lives today, this means that the era
of slow Internet connections (dial-up) which made us wait for everything is
now over.
Source: SKMM adapted from various sources
Broadband versus Dial-up
Internet Service Provider
END-USER
Broadband User can do:
Web browsing at high speed
Email with rich features
Voice-over-Internet Protocol
Broadband infrastructure
Social Networking
Video Streaming
Download & upload
at high speed
Broadband user can do so much more with
faster and enhanced speed today

Deciphering Broadband Speeds
“Speeds” in reference to Internet usage is interpreted in simple terms “of how long you have to wait to get something
downloaded”.
Internet Connection
Anyone accessing to the Internet is a two way communication. It is about receiving or sending data from or to the
Internet.
Measurement of Broadband Connection Speed
Sample Application and Download Time
Download Speed Upload Speed
The speed at which data
is sent from the Internet
to user’s computer
Source: Speedtest.net
The speed at which
data is sent from user’s
computer to the Internet
one kilobit per second (Kbps) = 1000 bits per second (bps)
one megabit per second (Mbps) = 1000 Kbps or one million bps
one gigabit per second (Gbps) = 1000 Mbps or one million Kbps
one terabit per second (Tbps) = 1000Gbps or one million Mbps
Source: www.about.com
Type of File Time To Download
High-quality movie download 75mins @ 2 Mbps
19mins @ 8 Mbps
8mins @ 20 Mbps
3mins @ 50 Mbps
Movie download, game demo 37mins @ 2 Mbps
9mins @ 8 Mbps
4mins @ 20 Mbps
2mins @ 50 Mbps
A 30 second video clip 1min @ 2 Mbps
15secs @ 8 Mbps
8secs @ 20 Mbps
2secs @ 50 Mbps
A high quality 5 minute MP3
music file
Source: www.thinkbroadband.com
30secs @ 2 Mbps
10secs @ 8 Mbps
4secs @ 20 Mbps
1sec @ 50 Mbps
The download speed stated in technical terms is for example 200 Kbps (Kilobits per second) - the higher the speed
means more and faster downloads within a period of time.
Sometimes government authorities such as the US Federal Communications Commission defines broadband services
as data transmission with speeds exceeding 200 Kbps or 200,000 bps in at least one direction that is upload (from our
computer to Internet) and download (from Internet to our computer).
ITU (International Telecommunication Union) as an agency for information and communication technology issues
defines broadband as Internet connections that range from 5 times to 2000 times faster than earlier Internet dial-up
technologies.
2

2
Broadband Characteristics
Broadband Characteristics
Broadband service provides
higher speed of data transmission—so
activities such as
downloading songs can now be
done in seconds.
Broadband is always on—there
is no need to reconnect to the
network after logging off and
is automatically available when
powered up.
Impact on Broadband Usage
The advantages of Broadband take-up are:
• increase competitiveness in all market segments,
• stimulate economic growth by creating new jobs and opportunities,
• reduce unnecessary travel and carbon footprints,
• facilitate distance learning, and
• ultimately towards bridging the digital divide.
Sample Broadband User Equipment
Broadband Modem
Broadband provides access
to the high quality Internet
services such as streaming
media, VoIP (Internet phone),
gaming, and interactive services.
Access everywhere with mobile
broadband.
Broadband will bring major technical evolution that can influence and change the way we do our work and experience
entertainment. It is as if a huge information ‘pipeline’ is connected directly to our homes and workplace where it delivers
unlimited information and services for our purposes.
Mobile Broadband

Why Broadband is Essential?
With broadband capability to access wide range of resources, services and products, it can ultimately enhance our
lives in many ways. Examples of this are described in the table below:
Education and Culture
Broadband is a channel to overcome geographical
and financial barriers to provide Internet access
to unserved and underserved groups so that
education, cultural and ICT knowledge are no
longer separated by geographical and economic
factors.
Communication Services for People
With Disabilities
Broadband permits users of Telecommunications
Relay Services to use Video Relay Services to
communicate more easily, quickly, and expressively
with voice telephone users.
Broadband Communications
Services
Broadband provides access to new telecommunications
technologies such as Voice Over Internet
Protocol (VoIP) allowing voice communications
using the Internet.
Source: Federal Communications Commission
Various Types of Broadband Technologies
Telehealth & Telemedicine
Broadband can facilitate provision of medical care
to unserved and underserved population through
remote diagnosis, treatment, monitoring, and
consultations with specialists.
Public Safety & Homeland Security
Broadband can help protect the public by facilitating
and promoting public safety information and
procedures, including, but not limited to:
• Early warning/public alert systems and disaster
preparation programs.
• Remote security monitoring and real time
security background checks.
• Backup systems for public safety communictions
networks.
Electronic Government
(e-Government)
Electronic government can help streamline people’s
interaction with government agencies, and provide
information about government policies, procedures,
benefits, and programs.
Broadband is supplied not based on one technology only. There are many types of broadband technologies available in
the market and under development. The table below shows some broadband technologies and the acronyms being used
for a broadband connection.
Mobile WiMAX Mobile Worldwide Interoperability for Microwave Access
Fixed WiMAX Fixed Worldwide Interoperability for Microwave Access
ADSL Asymmetric Digital Subscriber Line
SDSL Symmetric Digital Subscriber Line
VDSL2 Very-high-speed Digital Subscriber Line 2
HSPA High Speed Packet Access
HSPA+ High Speed Packet Access Plus
CDMA2000 1X EV-DO A telecommunications standard for the wireless transmission of data
LTE Long Term Evolution
Source: Various sources
2

oadband
For aLL
30

Feature
Getting An Entire Nation
Online
31

The National Broadband
Implementation Strategy or better
known as NBI puts in place a national
strategy that will bring broadband
to the whole nation. The broadband
experience depends on the economic activities
and the size of the population in those particular
areas. In high economic activities areas such as
major cities and towns as well as industrial zones,
the current broadband infrastructure will be
upgraded to provide higher speed broadband.
In areas where there is demand for broadband, the
services will be widened to suit the requirements of the
population. In sparsely populated areas such as in Sabah
and Sarawak, community broadband centres will be built to
enable communities to access broadband Internet service.
The NBI outlines a strategy to provide basic communications
services such as public phones and widening of the current
cellular coverage by building more communication towers
so that the cellular services can be provided in a more
efficient manner in these places which normally are in
remote and rural areas.
Under the NBI, basic broadband service will be made
available throughout the country. Where there is demand,
high speed broadband is being implemented to provide
broadband speed in excess of 10 Mbps and will be made
available to high density economically critical areas.
Basic broadband is an important component of the
National Broadband Implementation and its timely
implementation will play a critical role in the wholesome
development of the nation. There are challenges but the
drive to bring broadband to the general population is well
in motion and various wired and wireless technologies are
being utilised to ensure that Malaysians living outside highly
32
The National Broadband Implementation is
bringing broadband to virtually the entire nation
which is critical to this nation’s economic and
social well being. Nor Akmar Shah Minan tells
how the targets will be met.
urbanised parts of the country have access to broadband.
Programmes are also being implemented to drive the
demand for these services as well as for the creation of
content that is relevant to the population.
A Connected World
Ever since the industrial revolution, infrastructure has
always been an important element in the development of
a nation. Education, transport, energy infrastructures for
example are vital for a country whose economy depends on
manufacturing, services and knowledge.
Telecommunications is the other vital cog especially
as the economy of the globe became intertwined. The
ability of businesses to interact with the international
business community is a fundamental requirement of
modern businesses. But what was once handled by voice
communications and narrowband services are increasingly
being taken over by applications and services that require
broadband.
The experiences of countries like Korea, Taiwan
and Japan in this region and in other countries in
the Western hemisphere demonstrate that increased
telecommunications capacities are a competitive advantage
to organisations. This is even more critical today when
more business applications are taken onto networks. The
‘always-open’ business model of today is a direct result of
the ‘always-on’ nature of broadband networks. Every sector
of the economy, every industry and service, whether private
or public, will benefit from the introduction of broadband
services.
The same is true of households and individuals.
The 21st century lifestyle is one that is connected and
transcends distance. Its characteristics are that of sharing
and networking. Broadband facilitates this lifestyle and by

Women engrossed in an Internet class
inference; the quality of life. Education, social undertakings,
civic movements and all the facets of society benefit from
broadband.
Malaysia has always been in the forefront of
implementation of communications services. The
programme to bring broadband to the far reaches of the
nations follows a pattern which has seen this country being
one of the earliest adopters of technologies such as 3G and
WiMAX. The move to promote a broadband culture in
Malaysia is a natural next step. Its implementation is also
critical because many other countries are in the midst of
implementing similar national strategies.
The National Broadband
Implementation Plan
The National Broadband Implementation (NBI) plan divides
the country into 3 zones. Each zone has different population
densities, economic activities and existing telecom
infrastructure. Zone 1 consists of high economic impact
areas such as the inner Klang Valley and the Iskandar
Development region in Johor. Zone 2 will be other urban
and semi urban areas while Zone 3 will be rural areas.
High speed broadband will be implemented in Zone
1 and it will be likely that this area will feature multiple
broadband technologies simultaneously. TM (Telekom
Malaysia) has entered into a public-private partnership (PPP)
with the Government to roll out high speed broadband in
excess of 10 Mbps in this Zone. Zone 1 inhabitants will also
have access to other competitive broadband solutions.
The National Broadband Plan envisions private
initiatives bringing broadband to Zone 2 areas. The rollout
of broadband in Zone 3 will require intervention by SKMM
using Universal Service Provision (USP) funds. Provision of
broadband in these areas includes Basic Telephony (through
fixed and mobile network), Community Broadband Library
(CBL) and Community Broadband Centre (CBC). The cellular
coverage in these areas will be widened by building more
communication towers funded through USP to facilitate
the cellular operators to expand their coverage to 97% of
population by 2011.
The Connected Malaysia Programme
The National Broadband Plan has set milestones that will
mark the stage of rollout and adoption of the Plan. One
Household
by End 2010
33

looming and very important target the Government aims
for is for the country to achieve 50% broadband penetration
by households by end 2010 or equivalent to 3.2 million
homes. According to the Malaysian Communications and
Multimedia Commission (SKMM), Malaysia’s broadband
penetration was 34.2% of households at the end of the first
quarter of 2010.
This places the telecommunications service providers
and SKMM still far from their desired target. The target will
not be reached if focus is only placed on Zone 1. The story of
broadband thus far bears this out. In the early days, SKMM
licensed close to 30 service providers to provide broadband
services. The justification behind that many service
providers was to create healthy competition to roll out
their services, covering a wide area. Unfortunately, SKMM
saw that these service providers end up competing in the
same areas, leaving out the suburbs, rural and remote areas.
Current infrastructure mostly serves major cities and some
city outskirts but that’s where broadband coverage ends.
The main challenge faced by service providers boils
down to money. There is demand in the suburbs and rural
areas but there isn’t enough volume to encourage service
providers to build infrastructure and roll out their services
in those areas. SKMM carried out a survey in 2000 and the
results showed that 85% broadband usage came from the
major cities. But that alone will not help achieve the 50%
household penetration target. A rough calculation would
show that by 2010 if every household in the major cities
were to have broadband, it would only make up 35% of total
broadband penetration in the country.
The onus is really from the basic broadband services
that would help to achieve a major portion of the household
target. So by end 2010, 40% of the target of 3.2 million homes
will be served by basic broadband, while the remainder
will be served by high-speed broadband. However, both
SKMM and operators are facing numerous challenges to
3
Broadband equipment and infrastructure
ensure suburbs, rural and remote areas have access to basic
broadband (up to 2Mbps).
While it will be a challenge to achieve the target, the
target is still achievable. The prospects are still bright
because of the implementation strategy that was adopted
for basic broadband.
Instead of relying on or picking one service provider to
roll out broadband in Zone 2, the Government has taken
the multiple technologies and service providers approach.
Broadband in 2010 will see enough coverage by the multiple
technologies and service providers.
Thus, current licensees using fixed ADSL (asynchronous
digital subscriber line), wireless HSPA (High-Speed
Packet Access) and WiMAX (Wireless interoperability for
Microwave Access) among other technologies will provide
broadband throughout the country. Other technologies such
as satellite solutions are also in the picture.
The challenge of rolling out broadband
infrastructure
Broadband suppply and uptake is a chicken and egg
situation. On one hand, service providers should service
less profitable areas to achieve 50% household penetration
but at the same time the service providers do not want to
venture into areas because the demand does not justify
building expensive infrastructure.
In these cases, service providers opt for the wait-and-see
approach. There is demand but not widespread. For instance,
it could be that one in ten households want broadband. From
their perspective, it is not going to be worth the trouble or
expense to put in expensive infrastructure if only one in ten
people will sign up for their services. To make it profitable on
their end, they will wait until there is a higher percentage of
potential subscribers before going in to provide broadband
services. Coupled with the economic slowdown everyone
is facing this year, service providers are happy to stick to
major cities where there is a ready demand.

Another main challenge is to educate folks in the
suburban, rural or remote areas on the benefits of being
connected to the online world. The situation today is very
much like that faced by the mobile phone industry in
its early days. Today, everyone including someone in the
remotest area will understand how much difference a mobile
phone can make to their lives but in the early days, most
people were reluctant to take up phones. Broadband has to
overcome this same perception barrier in the hinterlands.
Finally, there is the affordability issue. For many people
living in rural and remote areas broadband would probably
be the last thing on their mind if their priority is to meet
basic needs. Also, broadband rates as a subset of monthly
incomes is likely to be a very high percentage of rural
incomes, making it difficult for households to justify taking
up broadband even when there is a need.
Creating Demand
To meet the targets, actions are being taken on many
fronts.
In efforts to drive household broadband penetration,
the Government has allocated incentives in last year’s
Budget. The Ministry of Finance approved tax allowances
on expenditure on last-mile broadband equipment. Among
them, last-mile network facilities providers will be given
an investment allowance of 100% on capital expenditure
incurred for broadband up to 31 December 2010. Import
duty and sales tax exemptions will be given on broadband
equipment and consumer access devices.
Tax deductions will also be given to employers on
benefits in kind in the form of new computers and payment
of broadband subscription fees for employees. Such benefits
in kind received by the employees will also be tax exempt.
But making it easier for service providers to justify
moving into Zone 2 areas alone will not help if demand
from consumers does not increase sharply. With that in
mind, various programmes are being undertaken to spur
broadband demand. Most of these initiatives consist of
showcasing the possibilities that broadband can bring into
the lives of citizens and businesses. There are also direct
interventions where people are given exposure to broadband
services. The experience is that once people try broadband
services, they will see how it can impact their lifestyles.
For example, there are programmes that provide
Internet training geared towards housewives. Traditionally,
in rural areas, the women in the family call the shots as
to whether to have broadband at home. Women who have
small businesses such as producing handicraft or are selling
local goods and so on can be taught the benefits of putting
up their products online. These people are taught how to
use it to expand their businesses.
SKMM is not alone in driving broadband penetration in
these areas. For example, the Ministry of Rural and Regional
Development (KKLW), the Ministry of Women, Family and
Community Development (KPWKM) and the Ministry of
Education (MOE) are each conducting their own efforts to
push Internet within their jurisdictions.
Another major initiative that is taking place is to spur
the creation of local content and applications. When the
right contents or services are available, demand will go up
and more households will sign on for broadband.
The Government is also addressing the issue of
affordability by providing needy segments of society
affordable broadband services. Attractive entry packages
with PCs and subscriptions included for individuals
and households can be explored. Besides, there are also
Participants of a housewife's computer class with their teacher at a Community Broadband Centre in Bandar Baharu, Kedah.
3

Community Broadband Centres (CBC). These have PCs set
up with broadband connections and hired supervisors to
facilitate Internet usage. This will particularly appeal to
household who cannot afford to have computers yet and
who need to gain the ability to use computers and Internet.
3
A user at an Internet centre set up in a library in Terengganu
A young user learning how to use a PC
Delivering Tangible Benefits
According to an Economic Planning Unit study, broadband
can deliver significant benefits to the country. Achieving
at least 50% household broadband penetration by 2010 can
result in tangible contribution of 1% to the nation’s gross
domestic product (GDP) and create 135,000 new high-value
jobs. That will also create opportunities and markets for
applications and content developers. It will enhance human
capital and allow for movement up the value chain. It will
also enable the K-economy and serve as a catalyst for overall
national competitiveness.
With the private sector and Government working hand
in hand, bringing broadband to the general population
is entirely achievable. It appears that the steps taken by
Malaysia are in the right direction. At a recent keynote
address that kicked off the Next Generation Broadband
Forum at CommunicAsia, Zhao Houlin, deputy secretarygeneral
of the ITU urged countries to be more proactive in
closing the broadband gap through initiatives like publicprivate
partnerships. He cited Malaysia as a prime example
of public-private partnerships in action.
Nor Akmar Shah Minan is Director,
Services & Infrastructure Development, MyICMS,
Technology & Standards Division, SKMM.
She can be reached at nor.akmar@cmc.gov.my

Feature
HsBB:
Malaysia’s
drive For high speed
broadband
SKMM’s Nor Akmar Shah Minan shares details of the
High Speed Broadband Project that will provide high
speed broadband to crucial areas in the country.
3

High-speed broadband or HSBB is part of
Malaysia’s National Broadband Implementation
Strategy and the Government
aims for the country to achieve 50%
broadband penetration by 2010. This
involves several strategies in terms of both supply and
demand.
According to the Malaysian Communications and
Multimedia Commission (SKMM), Malaysia’s broadband
penetration was 17.5% of households at the end of the third
quarter of 2008. That meant that there was still a large
market to grow for many service providers.
Also, the increased focus on high tech and knowledge
based industries meant that broadband was going to become
an essential utility. Not only was broadband a must in areas
like high tech parks, it was also necessary in homes. Workers
were beginning to work more from their homes.
Just like electricity and water supply are standard features
in homes, similar arrangements were going to be needed for
broadband services in Malaysia.
High-speed broadband adds to the competitiveness of a
nation in the global economy and it is imperative that the
nation keeps up with other nations in the rollout of highspeed
broadband. The HSBB project is thus a vital necessity
that has to be implemented as quickly as practicable as the
nation races to achieve the Malaysia Vision of a knowledge-
based economy in 2020.
A two-pronged strategy is deemed to be necessary to
meet the penetration rate target. One comes from the supply
side whilst the other from the demand side of the broadband
market.
The supply side
On the supply side of the broadband market, the Malaysian
Government has defined two categories of broadband. The
first is HSBB in selected geographic areas with speeds ranging
from 10 Mbps up to 100 Mbps for residential customers
using fibre to the curb – namely, roadside cabinets - with the
final part of the connection provided via a wire pair into the
premises and up to 1 Gbps using fibre directly into premises
for businesses and high economic impact areas.
The second is Broadband to the General Population
(BBGP) with speeds generally from 256 Kbps to 2 Mbps and
all the way up to below 10 Mbps.
HSBB is required for advanced and bandwidth services
such as digital homes, medical imaging and multi-channel
high-definition TV applications and services. In Malaysia it
will be implemented mainly in industrial areas, cities, towns
and the various development regions including cybercities
and cybercentres, technology parks and the Iskandar Development
Region in the southern part of Peninsular Malaysia
will feature HSBB.
The Government’s strategy to achieve this is through
collaborative effort in a public-private partnership.
An agreement to that end was signed between the
Ministry of Energy, Water and Communications (KTAK)
and Telekom Malaysia (TM) in mid-September 2008 to roll
3
out HSBB over a period of 10 years. Under its first phase,
HSBB access will be provided to over 1.3 million premises
by 2012.
Under this initiative, TM will provide last mile access
to homes and businesses through three main technologies
namely, fibre-to-the-home (FTTH), Ethernet-to-the-home
(ETTH) and Very High Speed Digital Subscriber Line
(VDSL2).
The Government will co-invest RM2.4 billion (US$685
million) towards the project, while TM will provide RM8.9
billion (US$2.54 billion). The Government’s portion is mostly
to make up for the lower net presence value (NPV) due to
pushing supply into areas such as new housing estates and
new industrial zones which are regarded as non-profitable
by the other service providers to do so.
While some in the industry and other commentators
have criticised this partnership for providing an advantage
to one service provider over the others, the Government
sees it as the only practical means to enable quick HSBB
rollout, especially when Malaysia is far behind in broadband
penetration compared to other countries. It needs to catch
up fast. Efficient and speedier roll out is required. TM is the
only service provider with an extensive network of fixed

line infrastructures and ducts in place nationwide, so it’s
simpler, cheaper and faster for TM to do it.
New lifestyle with HSBB
Broadband has the potential to revolutionise the way
we live and work, delivering real economic benefits. The
demand for multimedia is the prime driver for high-speed
broadband. The communications industry has moved
to the stage where it focuses on broadband. There is a
growing demand for faster Internet access that supports
applications such as collaborative networking, video
conferencing, telepresence, IPTV, Video on Demand and
VoIP. To meet this demand for bandwidth, a growing
number of service providers have begun offering high
bandwidth to subscribers in key regions worldwide.
The increase in Internet access speeds can be directly
linked to the types of services offered over the network.
The provision of single play services that were primarily
data-only services were responsible for moving dial-up
users to ADSL which was mostly provided in Malaysia
Video conferencing and telepresence require high speed broadband
by TM through its Streamyx service. Most users basically
used the Internet for browsing static content (graphics
and text) and email with a little bit of music and video
streaming.
Dual play came along and added voice with better
quality of service (QoS) to existing data connections. This
allowed cost effective voice over IP (VoIP) services along
with other value-added services. Though these services
were initially of poor quality, customers did not mind as
they were provided at low prices.
The networked world has now moved on to triple play
which combines Internet access, voice communication
(telephony) and entertainment services such as video
streaming. Quadruple play adds seamless mobile access to
the equation. The growing popularity of social networking
applications and personalised services are adding even
greater bandwidth demand.
To provide an acceptable level of service for current
and future Internet services and applications, HSBB
becomes absolutely necessary. The speeds envisaged in
3

the HSBB project along with the move to an all-IP network
and improved bandwidth management will provide very
high quality levels of services and promise subscribers
with a TV-like (including high definition) or even better
experience.
Economic benefits
HSBB is important economically. According to an Economic
Planning Unit study, broadband can deliver significant
benefits to Malaysia. Achieving 50% household broadband
penetration by 2010 can result in tangible contribution of
1% to country’s gross domestic product (GDP) and create
135,000 new high-value jobs in 2010.
That will also create opportunities and markets for
applications and content developers.
It will also boost local industries and employment
generation directly. The national broadband strategy will
enhance human capital and allow for movement up the
value chain. It will enable the K-economy and serve as a
catalyst for overall national competitiveness.
Open Access to HSBB
To ensure there’s no unfair advantage to TM with regards to
other service providers, HSBB will be an open network with
open access and fair pricing that will allow other service
providers fair and non discriminatory access to provide
their own services over it for a reasonable fee.
The existing Access Regulatory Framework will be
further developed to ensure the network is open and that
the pricing is fair. SKMM noted that it is very important to
promote an open network without necessarily duplicating
the costly last mile and backhaul connectivity to promote
economic growth. Service providers would initially be able
to seek and provide access from Bitstream services as well
as Digital Subscriber Line Resale Service.
The regulatory framework is on an open network access
concept. Other industry players will be able to obtain
network access on a commercial, non-discriminatory, fair
and equitable basis.
For example the HSBB network will be open to other
industry players at the applications and network service
level. Qualified service and application providers will be
able to launch services such as IPTV and other multimedia
services on TM’s HSBB network. Further, for connection
services it will provide access to core and international
networks.
Broadband to the General Population
BBGP is the second category in the supply push and it will
be deployed in all areas including areas covered by HSBB.
It will be provided by current licensees using fixed ADSL
(asynchronous digital subscriber line), wireless HSPA (High-
Speed Packet Access) or WiMAX (Wireless interoperability
for Microwave Access) and this provides an alternative and
competitive means of broadband access to many.
The vision for BBGP in 2010 is to ensure enough coverage
by the multiple technologies and operating service providers.
0
It's an increasingly connected lifestyle
For example in high economic impact areas where HSBB
is present, multiple infrastructure are likely to exist. HSBB
and BBGP coverage will be available across the entire zones
providing alternatives and choice, including backhauling
support to wireless service providers.
In sub-urban areas the current coverage will be widened
under various wired and wireless technologies as mentioned
above.
Provision of BBGP in less profitable and rural areas will
be funded through the SKMM’s Universal Service Provision
(USP) fund. The BBGP programme in these areas includes

Basic Telephony (through fixed and mobile network),
Community Broadband Library (CBL) and Community
Broadband Centre (CBC).
By 2010, 40% of the target of 3.2 million homes will
be served by BBGP, while the remainder will be served by
HSBB.
The BBGP service providers are not left out as under the
2008 Malaysian budget, the Ministry of Finance approved
tax allowances on expenditure on last-mile broadband
equipment as an incentive for service providers to roll out
their broadband networks.
Among them, last mile network facilities providers will
be given an investment allowance of 100% on capital expenditure
incurred for broadband up to 31 December 2010.
Import duty and sales tax exemptions will be given on
broadband equipment and consumer access devices.
Tax deduction will be given to employers on benefits
in kind in the form of new computers and payment of
The multimedia world
broadband subscription fees for employees. Such benefits in
kind received by the employees will also be tax exempt.
This set of incentives will continue to be reviewed for its
effectiveness to further push supply and demand.
The demand side
There is this famous saying which states that you can take
a horse to the water but you can’t make it drink, so while
there is that entire broadband infrastructure in place, what
will make people want to use it.
The Government will adopt a three-pronged strategy in
three critical areas to create demand.
The first is to create public awareness of the benefits and
availability of broadband.
The Government believes that while service providers
will promote their broadband products, they may not
promote its benefits; so the Government will have to do that
together with the Industry.
1

Government and private sector initiatives will help create
and communicate an icon or brand that encapsulates the
benefits of broadband, organise Internet training courses for
relevant target groups such as mothers and home-makers,
encourage more urban cybercafés to be set up and set up
broadband booths at community events.
Overall activities to promote broadband will be planned
and coordinated with relevant stakeholders including the
industry, while impact studies on the effectiveness of the
programme will be conducted to provide feedback on its
effectiveness.
The water in the pipe
The second strategy is to develop the attractiveness of having
broadband in terms of good content and applications, i.e.
the water that flows in the pipe. Here, the Government
will focus on providing electronic-Government, distanceeducation
and on promoting electronic-commerce.
Demand for, and the development of private content will
be aided by the high quality broadband infrastructure.
Malaysians already spend on average ~5% of their
monthly household income on digital entertainment and
info-communications services. The current high average
revenue per user (ARPU) for pay TV also indicates a high
willingness to pay for content.
e-Government services
The Government is also taking actions to raise its capabilities
to develop future offerings, such as building effective internal
networks and infrastructure; expanding databases and
systems integration and inter-operability among different
Government agencies; improving coordination by strengthening
the current IT governance and control framework. It
is also enlarging the IT manpower pool through inter-agency
knowledge sharing systems and human capital enhancement
programmes.
HSBB and BBGP infrastructure will advance the Government’s
efforts to reach citizens and businesses with quality
online services and improved accessibility to broadband
would create efficiency gains through increased usage of
Government online services.
One of the e-Government initiatives is the ongoing eKL
project covering the Klang Valley and it is currently offering
nearly 600 online services. This number is targeted to grow
by 2010 with more online services being developed and
delivered through several service delivery channels such as
agencies’ online counters and web services, mobile phone’s
Short Message Service (SMS), kiosk and bank autoteller
machines.
Affordable to all
The third strategy is to make broadband affordable to all.
Broadband is currently too expensive for certain social
segments which can’t afford PCs, broadband subscriptions,
modems and other access devices. Coordination will be
required with other Government agencies to facilitate PC
ownership and broadband take up.
2
According to figures by SKMM and others, about 60%
of middle income earners with annual income between
RM18,000 and RM60,000 (US$5,143 and US$17,143) found
current broadband prices in Malaysia to be unaffordable,
while none of those earning under RM18,000 per annum
found it affordable, while all of those earning above RM60,000
found it affordable.
A 512 Kbps DSL connection typically costs the equivalent
of US$18 (RM63) per month and it needs to be lower.
There also is an almost linear correlation between PC and
broadband penetration, which needs to be addressed. Thus
there is a need for action plans to find solutions especially
for the above middle and lower income groups.
For example, discussions will be necessary with the
Ministry of Finance to lower duties on these equipment and
to provide individual income tax relief on their purchases. At
present, individual tax relief is only provided for purchases
of notebook PCs but this has to be extended to include all
equipment and SKMM will continue discussing this issue
with all relevant authorities so that the affordability factor
is enhanced for the target groups.
SKMM will also work with the industry in formulating
broadband packages with low cost PCs and Internet
devices.
To improve affordability in rural areas, the SKMM will
try to widen community access by providing computers,
printers and broadband access in community centres to
complement current initiatives by the Ministry of Rural and
Regional Development (KKLW) and the Ministry of Women,
Family and Community Development (KPWKM). This serves
to bridge the affordability factor as well as collaborative
learning by the community to understand the benefits of
broadband and how they can participate in it.
Community broadband
Telecentres offer a good platform for mass community
broadband access and should be strengthened.
To achieve this, a single agency should be designated
to coordinate efforts with State ICT agencies to build new
telecentres and customise them to be relevant to the local
population.
Telecentres should be opened at night and at weekends
and IT graduates and students should be hired to operate
them at these times. IT graduates should be hired as
managers and all should be sent for training in best practice
centre management sharing sessions.
It is hoped that Malaysia’s targeted approach will bring
about results and that the HSBB network will help transform
the nation into a knowledge society.
Nor Akmar Shah Minan is Director,
Services & Infrastructure Development, MyICMS,
Technology & Standards Division, SKMM.
She can be reached at nor.akmar@cmc.gov.my

Feature
Mobile
Communications
Mobile communications and in particular mobile
phones have made huge advances since early
forms made their debut in the twenties.
3

According to the GSM Association, there
are over 3.46 billion GSM and 3GSM (3G)
mobile connections at time of writing,
while the CDMA Development Group
reported 475 milllion CDMA subscribers
worldwide with second-generation cdmaOne or thirdgeneration
CDMA2000 handsets.
That adds up to around 4 billion cellular subscribers
worldwide, including any lesser known cellular technologies
which may still be in use today.
The first use of non-cellular mobile communications is
believed to be the experimental use of one-way radios in
police cars in Detroit in 1921, which were used to dispatch
police to scenes of crimes.
A two-way mobile radio system was first deployed
in New Jersey. It was a half-duplex, ``walkie-talkie’’ type
system where users push a button to speak and release it
to listen.
The development of FM or Frequency Modulation in 1935
paved the way for low-powered transmitters and receivers
in vehicles, and this development was spurred on by the
demands of World War II.
In 1946 public mobile phone systems were introduced
in 25 cities in the United States. These were initially based
upon a single transmitter covering a whole city or town,
but even 30 years later, the system in New York could only
support 543 users. In 1958, Bell Systems proposed an 800
MHz system with a speech channel bandwidth of 75 MHz
and that was considered a broadband system back then.
Enter cellular
While the terms “mobile phone” and “cellular phone” tend to
be used interchangeably these days, especially by the media,
not all mobile phones are cellular and not all cellular phones
are necessarily mobile.
In 1970, Bell Laboratories developed the concept of
a mobile cellular communications system comprising
a honeycomb of non-overlapping, hexagonal cells, each
with its own transmitter and receiver – or base station
-- for communication with mobile cellular handsets which
happen to be within a given cell at the time.
The rollout
The first mobile cellular system to be introduced is believed
to be the Aurora system designed in 1978 for the Alberta
provincial Government-owned telephone company in
Canada.
The 400 MHz Aurora 400 system had a total of 120 cells
across Alberta but it did not support handoff, so calls were
dropped when subscribers crossed cell boundaries while
talking. Handoff capability was introduced into the 800
MHz Aurora 800 system which followed.
Meanwhile, after much consideration of bandwidth
demands of other users and potential users, the United
States Federal Communications Commission (FCC) allocated
a 40 MHz frequency spectrum in the 800 MHz band
to each cellular operator within a particular market.
In 1979 the FCC authorised the Illinois Bell Telephone Co.
to develop a pilot commercial cellular system in the Chicago
area and American Radio Telephone Service Inc to operate
cellular systems in Washington D.C. and Baltimore.
About a year earlier, the Nippon Telegraph and Telephone
Corporation (NTT) introduced its own 800 MHz
mobile phone system in the Tokyo area. It supported 600 x
25 KHz channels.
Over in Europe, Ericsson and Nokia developed the 450
MHz analogue Nordic Mobile Telephone / 450 (NMT 450)
system, which was introduced in the Nordic countries (ie
Sweden, Norway, Denmark and Finland) in 1981. NMT 450
supports 180 x 25 KHz channels and was designed for their
rugged mountainous terrain.
Malaysia’s first mobile cellular phone system – an NMT
450 system known as ATUR (Automatic Telephone Using
Radio) - was introduced by Telekom Malaysia in the mid
1980s.
The first generation of mobile phones are better
described as portable phones. An early example of these
first generation phones is the Motorola 4500X. These phones
evolved from earlier models that were mounted into cars.
One had to be strong to carry them and rich to afford them.
These phones sold for more than RM20,000 when they first
arrived.
In 1983, the first 800 MHz analogue mobile cellular
system based upon the Advanced Mobile Phone System
(AMPS) standard was launched in the United States.
Mobikom was the only AMPS service provider in Malaysia
which operated both AMPS and DAMPS services at 800
MHz.
In January 1985, Cellnet in the United Kingdom launched
that country’s first cellular phone system based upon the
900 MHz, Total Access Communications System (TACS),
followed later by Vodaphone.
In the late 80s, Celcom operated analogue cellular
services based on the Extended Total Access Communications
System (ETACS), an extended version of TACS with
more channels at 900 MHz. The phone that became a
symbol of this time was the Motorola.
Mobile devices got smaller but were still a far cry from
today’s sleek handsets. The phone that became the icon
of this time and which could be described as the first
truly mobile phone was the Dynamic Adaptive Total Area
Coverage (DynaTAC) 8000X and its later evolvements were
the Motorola 8800 and 8500. The phones were known as the
brick phones. You could carry them around but they still did
not fit into pockets.
In 1989, Motorola redefined the face of the mobile phone
with the launch of the MicroTAC. This brought major new
advances in miniaturisation, style and usability. Many of
these pioneering features have survived the test of time and
can still be seen in many of the handsets of today. It also
introduced the flip phone concept which is still popular to
this day.
The growing popularity of handsets led to other brands
challenging the dominance Motorola had in the cellular

market. Japanese brands were prominent. Oki, Sony and
NEC developed handsets that were popular at one time or
the other. From Europe came brands like Benefon.
According to the GSM Association, there were only
309,621 analogue subscribers left worldwide as of 22
September, 2008.
Digital systems
While analogue cellular systems were mainly based
on national standards, digital systems also known as
second-generation (2G) systems were generally based on
continent-wide standards.
The advantages of 2G systems are their better
voice quality and improved security against interception.
They also support value-added services such
as short message services (SMS) and data communications.
Motorola DynaTAC 8000X, 1984
Some personal digital assistants (PDAs) and palm PCs
and notebook computers fitted with cellular card modems,
or attached to suitably equipped digital mobile phones were
used to send and receive faxes and e-mail, perform data
communications and browse the Internet over the cellular
network.
In the longer term, they paved the way for value-added
services to be developed with the enhanced second (2.5G)
and third generation (3G) systems and devices.
GSM
The road to the GSM digital cellular system began with
the formation of the Groupe Special Mobile in 1982 by the
European Conference of Postal and Telecommunications
Administrations (CEPT) to develop a standard which could
be used across Europe and in 1987, a memorandum of under-
standing was signed by 13 countries to use the standard in
that continent.
Responsibility for GSM was transferred to the European
Telecommunications Standards Institute (ETSI) and phase I
of the GSM specifications were published in 1990.
The first GSM network was launched in 1991 by
Radiolinja in Finland and by the end of 1993 there were over
one million GSM subscribers and 70 GSM service providers
across 48 countries.
GSM originally operated at 900 MHz but today it also
operates at 850 MHz, 1800 MHz and 1900 MHz. Today, GSM
and its enhancements are used by over 3 billion subscribers
in 218 countries and territories.
One of GSM’s key advantages is international roaming,
which lets users on a network in one country roam on
partner networks in another and this is believed to be
the main reason for its huge success compared to other
ATUR phone CIRCA, 1985
Dancall Logic CIRCA, 1993
systems.
GSM now stands for Global System for Mobile Communications
and today Maxis, Celcom and DiGi operate GSM
systems.
According to the GSM Association, there were 3.05 billion
GSM subscribers worldwide as of 22 September, 2008.
In 1992, a company called Nokia introduced the Nokia
101 which could be said to be the first of the so called ‘candy
bar’ phones. Worldwide, there were many brands active in
the cellular markets. European brands like Bosch, Ericsson,
Philips and Alcatel had handsets in the market. Alcatel had
the ‘One Touch Easy’ phone in 1998 which interestingly
worked on AAA batteries.
Also in 1998, Nokia introduced the 5100 series of
handportable phones at the CeBIT exhibition in Hannover,
Germany. These phones featured Nokia’s NaviTM Key

concept that provided an ease of use through an intelligent
menu system. The popularity of Nokia phones to this day
can be attributed to this easy menu system.
Nokia later introduced the Nokia 5130 which transformed
mobile phones into fashion pieces because it
provided inter-changeable covers allowing for a new range
of colour options.
The US and Japan
The United States followed with its 800 MHZ NA-TDMA or
North American - Time Division Multiple Access system
(a.k.a. D-AMPS or Digital-AMPS) in 1993. Again, Mobikom
was the only Malaysian service provider to operate an NA-
TDMA service.
Japan followed with its 1.5 GHz PDC or Personal Digital
Cellular system in Osaka in June 1994. The PDC system
operates in the 800 MHz and 1.5 GHz frequencies.
NEC PrimeraFX
CIRCA, 1995
Motorola StarTAC, 1996
CDMA
In 1995, the United States introduced a new digital communications
technology -- CDMA or Code Division Multiple
Access, also known as Narrowband CDMA or cdmaOne.
CDMA was never used in cellular networks in Malaysia
but is now used by Telekom Malaysia to provide fixed
wireless local loop (WL) access in areas where there are no
fixed lines.
Meanwhile, in Britain in 1988, Britain’s Lord Young
initiated development of an 1.8 GHz PCN or Personal
Communication Network system based upon GSM technology
and was later adopted by the GSM Association as a
GSM technology and is now referred to as 1,800 MHz GSM.
In Malaysia, the Adam, TMTouch (originally Emartel)
and DiGi 1800 systems operated by Sapura, Telekom
Malaysia and Mutiara Telecommunications (now DiGi Tele-
communications) respectively were originally PCN services,
though today, they continue as part of the GSM services
operated by Maxis, Celcom and DiGi respectively. The first
two also operate 900 MHz GSM service, with seamless
switching of phones between their 900 MHz and 1800 MHz
frequencies.
According to the GSM Association, as of 22 September,
2008, there were 6.9 million cdmaOne subscribers
worldwide.
Enhanced 2G
Enhanced second generation (2.5G) mobile phone systems
are based on existing digital technology but support better
coverage, capacity, quality and data rates.
Two major 2.5G GSM enhancements are HSCSD (High-
Speed Circuit Switched Data) and GPRS (General Packet
Radio Services).
Nokia 3210, 1999 Nokia 7650, 2002
GPRS was originally expected to support packet-based
data rates of up to 115 Kbps over channels which are always
on -- much like a wireless LAN and it is best suited for
wireless data services – but when implemented, it typically
supports up to 47 Kbps.
A further enhancement of GPRS is EDGE (Enhanced
Data Rates for GSM Evolution), sometimes regarded as a
2.75G technology with three times GPRS’ data rates.
The Nokia 6310 was introduced in 2001 and was one of
the first to feature Bluetooth technology. The Nokia 7650
was one of the world’s first camera phone and also marked
Nokia’s entry into Symbian devices. Earlier, Ericsson
had garnered a cult following for its Symbian based
smartphones. When it became Sony Ericsson following
a merger, arguably its finest production was the P900
smartphone.

A Mobile Phone Timeline
Year Phones
1983 Motorola Dynatac 8000x – The world's first portable cellular phone
1992 Nokia 1011 - The world's first mass produced GSM phone
1993 BellSouth/IBM Simon Personal Communicator - The world's first phone with PDA features
1996
Nokia Communicator - The world's first phone to enable Internet connectivity and
wireless email
1998 First GSM cellular phone with colour display
1999
2000
2001
2002
2003
Nokia 7110 – The world’s first WAP Phone
Samsung SPH-WP10 – The world’s first CDMA watch phone
Ericsson T36 – The world’s first phone with Bluetooth
Motorola Timeport P7389i – The world’s first GPRS cellular phone
Siemens SL45 – The world’s first mobile phone with expansion memory
Sharp J-SH04 - World's first commercial camera phone
Sony Ericsson T68i – The world’s first phone with MMS
Samsung SCH-T100 – The world’s first phone with a TFT-LCD colour (4096 colours) screen
Nokia 6650 – The world’s first 3GPP compliant WCDMA-GSM dual mode phone
Nokia 5140 – The world’s first phone with push-to-talk over cellular (PoC)
Motorola A760 – The world’s first handset to combine a Linux operating system and Java
technology with full PDA functionality
2005 Samsung SCH v770 – The world's first 7mp camera phone
2006
Samsung SCH B600 – The world’s first-10-megapixel camera phone
Samsung SGH-i310 – The world’s first 8 GB phone with a hard disk
2008 HTC MAX 4G – The world’s first GSM-WiMAX phone
equipment [Converted].pdf 12/22/2008 5:45:42 PM
Note: This timeline is based on information sourced from the Internet

The Third Generation
Despite the adoption of 2G digital standards, the standards
they were based upon were largely associated with continents
and it was hoped that the development of a thirdgeneration
(3G) cellular communications would lead to a
single global standard.
In the late 1980’s, the International Telecommunications
Union (ITU) formed a study group to evaluate and specify
requirements for a future global standard for high-speed
mobile data and wireless services to mobile phones and
today, this 3G cellular specification is called IMT-2000
(International Mobile Telecommunications - 2000). It defines
3G systems as providing voice and data communications at
2 GHz frequencies.
Standards bodies in Europe, Japan and the United States
worked on respective regional standards proposals to meet
IMT-2000 requirements.
Motorola RAZR V3i, 2005
Samsung SCH-
B600, 2006
In Europe, the European Telecommunications Standards
Institute (ETSI) developed a standard for a pan-European
3G system called Universal Mobile Telecommunications
System (UMTS).
However, the IMT-2000 goal for single, worldwide 3G
standard was not achieved. Instead, today it comprises six
core standard air interfaces, namely Wideband-CDMA,
CDMA2000, TD-CDMA (Time Division Duplex – CDMA) &
TD-SCDMA (Time Division Duplex – Synchronous CDMA),
UWC-136 a.k.a. EDGE, DECT and WiMAX.
3G rollout
South Korea’s SK Telecom launched the world’s first
commercial 3G service based on CDMA2000 1X in October,
2000. LG Telecom and KT Freetel, both in Korea, followed
with their own CDMA2000 1X service. Sprint launched its
nationwide CDMA2000 1X service in the US called Sprint
Power Vision.
Europe’s very first 3G network was launched by
ManxTelecom on the Isle of Man off the UK mainland in
December 2001. An economic slowdown forced many
service providers to delay their 3G launches but over the last
two years many service providers worldwide have launched
3G services.
What’s next?
3G technology has continued to evolve and there already
are 57.9 million WCDMA HSPA (High Speed Packet Access)
subscribers worldwide as of 22 September, 2008. HSPA
includes HSDPA (High Speed Downlink Packet Access),
theoretically capable of up to 14.4 Mbps peak downlink data
rates and complement High Speed Uplink Packet Access
(HSUPA) which supports up to 5.8 Mbps uplink.
By 2010, we can expect to see the next stage in 3GPP’s
technology roadmap, namely 3G LTE (Long Term Evolution)
capable of 100 Mbps and 50 Mbps peak downlink and
uplink speeds respectively. In fact NTT DoCoMo aims to
Nokia N96, 2008
Apple iPhone, 2008
launch a commercial LTE network by the end of 2009, while
Verizon Wireless, the US’s largest CDMA service provider,
is currently conducting trials of LTE and aims to launch
commercial services in 2010.
The ITU may finally realise its vision of a global cellular
standard in its fourth-generation (4G) IMT Advance
networks due to make their debut from 2015 and the ITU
hopes IMT Advanced will result in the convergence of
3GPP, 3GPP2 and WiMAX technologies into a single IMT
Advance global standard, all using OFDM.
Handsets development has mirrored advancements
in cellular technologies and will continue to do so as new
technologies are launched. Lately, with mobile networks
increasingly focused on high data speeds, manufacturers
focused on creating phones with computer like
capabilities and made for surfing the web.
In 2008, netbooks – very tiny notebooks with 3G chips
built in - have become popular and may be an indication of
where handsets are evolving towards.

Feature
WiMAX@2.3GHz and its DNA for
wireless broadband
Michael Lai explains where the WiMAX technology fits
into the wireless landscape
The Internet landscape in Malaysia has
certainly come a long way from the very
beginnings, when dial-up Internet access
was first made available in the mid-1990s.
Dial-up Internet access rides on existing
telephone systems, and gave speeds of up to a then
zippy 56 kilobits per second – though for we used to
subsist on slightly under or over half of that (28.8 Kbps
and 33.6 Kbps was common).
(Yes, I bet you still remember that chirpy dialing tone
that your dial-up modem makes when you’ve successfully
connected to the Internet.)
For the uninitiated and the young (or those who simply
have trouble recalling), the shape and form of the Internet
back then was – yes, you guessed it right - primarily text
and low-resolution graphics.
I remember using the Internet primarily for email, surfing
text-based websites, with a smattering of pictures, chatting
via IRC and ICQ as well as going on discussion bulletin
board systems (popularly referred to as BBS) to exchange
thoughts and opinions on various topics of interest.
As the 1990s flashed by, the Internet began to grow by
leaps and bounds. Text and graphic gave way to more interactive
forms of displaying content. Flash-driven websites
started popping up, and everyone was touting video-conferencing
as the way forward in enhancing business efficiency
and competitiveness. E-commerce literally exploded
– Amazon and eBay became the poster boys (or rather,
men?) of the Internet.
And all of a sudden, dial-up speeds just could not cut
it, especially when you have so much shopping, selling,
networking and learning to do.

When broadband services were first announced in the
early 2000s here, Malaysian Internet users heralded a new
era in becoming digital natives. Never mind the restriction
it had – you had to be in specific areas to enjoy 256 Kbps to
1.0 MBps download speeds – everyone was clamouring to
be on the information superhighway, on what was then the
fastest ride around.
The wireless revolution begins
By the mid-2000s, Malaysians had begun to experience
“untethered” Internet access in the form of WiFi. WiFi is
a short range radio frequency system that uses unlicensed
spectrum to provide access to a network. It typically covers
only the network operator’s own property. WiFi is used by
an end user to access to Internet or a peer-to-peer network.
Since the beginning of WiFi, users are required to sit
at a restaurant and start surfing after they paid for their
food. Short coverage distance, insecure online and slow
surfing experiences can sometimes be frustrating and
annoying. The introduction of WiMAX, the next generation
technology, appeared to address these issues and offered a
better alternative to the users.
WiMAX, short for Worldwide Interoperability for
Microwave Access, is a standards-based technology for
providing last mile wireless broadband access as an alternative
to wired broadband such as cable and DSL.
There are three variants that WiMAX 802.16e can offer:
fixed, nomadic and mobile. Fixed WiMAX serves users at
one location or stationary users at different places, nomadic
WiMAX allow users to get connected in a portable way and
mobile WiMAX which supports easy hand-off between base
stations just like mobile phones. The latter is thus highly
suitable for users on the move.
Development of the technology and interoperability
between different vendor’s WiMAX equipment is governed
by the global WiMAX Forum (www.WiMAXforum.org/
home).
To delve deeper into the nitty-gritty, WiMAX is a longrange
system, covering many kilometers that typically uses
licensed spectrum (although it is also possible to use unlicensed
spectrum) to deliver a point-to-point connection to
0
Samsung WiMAX Devices
the Internet from an Internet Service Provider (ISP) to an
end user.
The WiMAX DNA – How it all fits
The arrival of wireless broadband had in recent years
revolutionised communications. Now, the next big wave,
WiMAX, is set to change the broadband landscape even
more, making it mobile and personal. One of the key factors
to ensure this happens is the emergence of a vibrant and
cohesive ecosystem which will ultimately determine
WiMAX’s success on the world stage.
The WiMAX DNA (Device, Network and Application) is
eminently better-suited for widespread adoption than 3G
was at its inception, derived from a suitable infrastructure
which will maximise access and adoption.
WiMAX is set to define the next wireless frontier by
virtue of it being IP-based and the vast amount of content
people can tap into immediately.
When we talk about the WiMAX ecosystem, it is
important to remember that WiMAX itself forms a crucial
part of the ecosystem for many other industries, including
businesses, entertainment and scores of others. That the
WiMAX ecosystem becomes invariably intertwined with
any industry that will benefit from reliable, high-speed and
pervasive connectivity is beyond question. The question is
how these other industries are geared for the global connectivity
revolution (as the Yankee Group calls it) and what
they are doing to support the WiMAX ecosystem. We are
entering a brave new world of telecommunications and the
firms that will thrive will be those who embrace it.
Thus, we must remember that the WiMAX ecosystem
consists of more than the sum of its parts and exists not only
for and in itself but is a key catalyst to move the industries of
the future. This is the real WiMAX ecosystem. In expanding
the WiMAX ecosystem, the worldwide deployment of
WiMAX must take place as planned in order to capitalise on
the momentum afforded by its time-to-market advantage in
terms of standards and commercial availability.
WiMAX is now at a level of consumer readiness which
is very impressive and can scale to millions of users and
beyond with inexpensive equipment, requiring no service
provider subsidies and not economically burdensome if
subsidised. In the long range plan, WiMAX is the technology
to bridge the digital divide. The wide coverage of
WiMAX base stations will eventually prove its capability in
increasing the broadband penetration in Malaysia.
A virtually limitless amount of content on the Internet
today is IP-based and this is exactly the technology on which
WiMAX is based. It means that the Internet is a readily
available resource pool for any WiMAX user and Web 2.0
will only accelerate this phenomenon. In essence, anything
that is developed for the Internet is developed for WiMAX.
Out of the eight largest telecommunications vendors, seven
are supporting WiMAX deployment, including Alcatel-
Lucent, Motorola, Nokia Siemens, etc. WiMAX devices
will be relatively cheaper than other telecommunications
equipment because of its open ecosystem from day one.

Nokia N810
Big players like Intel, Alcatel-Lucent, Nokia, Motorola,
and many more have bet their company’s future on WiMAX
and many see WiMAX as the next frontier for wireless
connectivity and communications. In terms of device
vendors, where there were zero in 2007, there are now over 60
in 2008, with over 520 service providers rolling-out WiMAX
services in various stages of deployment today. Soon,
WiMAX chips will be embedded into every conceivable
consumer electronic device - from mobile handsets, gaming
consoles, PDAs, digital cameras, and home entertainment
systems – which you can, and will buy. WiMAX will then
achieve critical mass as prices fall and adoption skyrockets,
making it truly ubiquitous in every facet of our lives.
WiMAX will enable us to download and upload data
instantly on the move using WiMAX-enabled devices
without being tied down by wires. It means impressive
access speeds, reliability and rich features will enable even
the most inexperienced user to quickly and accurately find
the information they require. It also looks set to support
many new applications not presently viable with today’s
access speeds. Just imagine, being able to upload instantly
pictures you had just taken to your Facebook site for
example, or being able to download and share MP3s with
your friends wherever you are!
The importance of the WiMAX
ecosystem
So why is the WiMAX ecosystem so important? Consider
the impact to a country: having high-speed broadband in
Malaysia would create many job opportunities because it
would help spur local digital-content creation and attract
foreign direct investments. Korea is a good example, using
broadband to dig itself out of recession. Foreign investors
now always scrutinise a country’s broadband speed when
they decide on whether or not they want to do business
with the nation and the benefits of having such a facility for
the people and the nation are expected to be worth many
times that investment. Another great example is the M-
Taiwan project, a national programme to boost the nation’s
e-competitiveness where the entire country is gearing up to
embrace WiMAX.
What do we need for all these to be effective? Firstly, a
mindset change. For example, people have to start thinking
about not just working inside an office building but as
working anywhere the Internet is -- which is now everywhere.
The question for most people would no longer be
“Where can I connect?” but “When do I want to disconnect?”
In fact, it is unlikely that anyone will need or want to be
disconnected in the future. The challenge is in getting
people to get interested in WiMAX, adopt it and then to a
point where they no longer even think about it because it
would have become so ingrained in their lives.
At the heart of it, WiMAX is about life, not technology.
The communities that develop it will mobilise the Internet
and bring about a sea-change in the landscape of broadband.
As WiMAX-embedded devices become more commonplace,
people will not only adapt to WiMAX, but demand it in
their daily lives. When WiMAX enabled gadgets do become
available to the masses, the need for any form of wired
communication would soon diminish and eventually we
can truly live as a wireless society.
It is not far-fetched to say that we are on the crucible
of a new wave of innovation, brought upon by a WiMAXenabled
future. Applications may be integrated with devices;
imagine being able to access the iTunes store from wherever
you are with your new WiMAX-enabled iPOD. Why did a
whole ecosystem spring up around the iPOD? Simple, it was
cool, easy to use, and ultimately ubiquitous. WiMAX needs
to have the same qualities to advance its own ecosystem.
Thanks to the foresight of the Malaysian Government
in issuing the WiMAX 2.3GHz spectrum license in early
2007, this has put Malaysia on the world map as one of the
pioneers in WiMAX technology. Malaysians should take this
opportunity and strive to make Malaysia a WiMAX hub in
the region.
Thus, I am very hopeful of the future. My children are
examples of digital natives. Digital natives are your typical
Facebook-loving, photo-sharing and Web messaging folk.
More and more Malaysians are transforming themselves
into Web denizens – and I am certain that it will be a matter
of time before the majority of Malaysians start living the
same way, after realizing the many benefits of the Internet.
One thing is clear as borne out by history however; and
that is change is inevitable, extinction is optional.
“The future is here. It’s just not
widely distributed yet.”
- William Gibson.
Michael Lai is CEO at Packet One.
He can be reached at
michael.lai@greenpacket.com
1

2
Community
broadband

Feature
The USP programme is bringing Internet access to underprivileged
populations across Malaysia. Md. Rusli visits two libraries in
Terengganu that have been equipped with PCs and Internet
connections for the use of the locals.
The Universal Service Provision (USP)
programme, a global programme championed
by the International Telecommunication
Union (ITU), strives to ensure
that communication and Internet services
reach outlying areas and isolated populations. Left to
private initiatives alone, these marginalized areas would
be left out as they would not be commercially viable.
In Malaysia, the push to narrow the digital divide has
been entrusted to the SKMM. The government places
great importance to bring modern communication services
to every corner of the country and since the turn of the
millennium, the SKMM has overseen projects that have
steadily reduced the numbers of areas that were not served
by telecommunications services.
One common perception is that USP is all about bringing
telecommunications services to underserved areas. That
is certainly one of the aims of the USP project in which it
improves infrastructure in areas that commercial interests
tend to ignore. In that aspect, USP initiatives aid in progressively
blotting out areas where communication services
have failed to reach.
But there is another aspect to the USP programme, that
of bridging the digital divide that exists among the population.
The focus on improving infrastructure in underserved
areas will not mean anything if underprivileged groups
cannot make use of the infrastructure because of lack of
3

knowledge. For example, there is not much use to extend
Internet coverage using USP funds into a rural area if the
lower income people there cannot benefit because they are
not able to afford computers or do not know how to use
them. That would mean only the rich would benefit which
is hardly the point that drives the USP programme.
Thus, the USP programme has also focused in
improving access to communication services among
underprivileged pockets of populations. One of the projects
that have been implemented with notable success in 2007
is the provision of Internet access service to libraries
located in underserved areas.
Bringing rural libraries into the
Internet Age
The aim is to bring Internet access to communities
that surround these libraries. This will help ensure the
continued and even growth of a knowledge-based society
which is one of the main targets being pursued under the
National Broadband Plan and the MyICMS 886 Strategy.
Planning for this project started in August 2006 and
SKMM visited potential libraries in September 2006.
Officers from State Library Organisations, USP service
providers accompanied the SKMM officers on these
visits. Also present were officers from the Public Works
Department which was commissioned to monitor the
project on behalf of SKMM.
These libraries were accessed for suitability. The
selection of libraries for this project was based on feedback
from the National Library of Malaysia and the State
Library Organisations. These libraries had to be in areas
where Internet penetration rates were low and which were
surrounded by populations that were in the lower income
brackets. Since there were similar projects undertaken
by the Energy, Water & Communications Ministry, care
was also taken to ensure that there were no duplication of
efforts and that the libraries were not located near other
areas that provided Internet access to the underprivileged.
Finally 78 libraries were identified within 89 USP
districts as being suitable for implementation of the
Internet access programme. The various USP service
providers were then asked to submit draft proposals on
each of these areas for the consideration of SKMM. These
proposals were evaluated and the SKMM approved plans
for 44 libraries which were submitted by TM and Maxis
Mobile Sdn Bhd.
The project involved equipping the libraries with state
of the art PCs and high speed Internet connections. Typically,
each centre had six computers, a server, a printer
and a broadband connection. To ensure effective usage,
the project also had the provision to hire a supervisor
who would run awareness and training programmes
so that the target population could increase their IT skills.
The supervisor would also monitor computer usage so
that access was shared fairly among the users and also to
prevent the PCs being used for non productive purposes.
The Terengganu experience
By mid 2007, implementation had been carried out in some
areas. Among the areas that saw the implementation of the
library Internet access project were the towns of Marang
and Dungun in Terengganu.
Some months later, both areas have positive reports to
share.
Marang is just a half hour drive south from the state
capital, Kuala Terengganu. Once a fishing village, it has
grown into a town. Tourism has also become a major
economic activity. The town is also surrounded by villages.
Many of the people who live here have no Internet access.
Haini Hamzah has served as Pembantu Perpustakaan
(Library Assistant) for 27 years, all in the Marang library.
She says that the response to the library Internet access
project has been very encouraging. The facilities are so
popular that the supervisor usually sets an hour limit
on each user so that everyone gets a chance to use the
facilities.
“The number of users has been increasing since we put
in the PCs. During the school holidays, we get students
the whole day round.” Other users include working people
pursuing distance education, university students working
on their assignments etc. Haini also said that they also get
a number of small business owners and farmers coming in
to access the Internet. For example, Haini said that a few
fish prawn crackers (keropok) makers have been using the
PCs to source for distributors outside the state.
According to Haini, the supervisor ran regular classes
to train users how to use the PCs effectively. The classes
were on basic PC usage as well as an introduction to
common office applications.
The young people who use these new PCs live all across
town and the surrounding villages. Wan Mohd Muttaqim
lives in the village of Rhu Muda. He is in Primary 5 and
was taught to use the PC by his older brother. Another user,
Mohd Ikhwan is in Secondary 2 and he uses the facilities to
access the ‘Score A’ online educational application as well
as check his email.
A slightly older user was Zulhelmi, back home for
holidays from University Putra Malaysia. He is a third
year student in computer engineering and communication
Haini Hamzah

The young
people who use
these new PCs
live all across
town and the
surrounding
villages
Ernee Abdul Rahman
systems. Zulhelmi is from Kampong
Kijing and he uses the SKMM provided
facilities to catch up on news and the
latest knowledge in his field of study.
He feels that the move to provide free
Internet access is excellent as it is
bringing information to his hometown.
Over in Dungun, another town
about one hour drive south of Marang,
the report is even more glowing. Like
Marang, this town has fishing villages
and smallholdings surrounding it.
Some of the residents also work in the
petroleum industry as Terengganu’s oil
facilities are located not far from it.
‘Business’ is booming in the Dungun
library. The library officer, Azmi
Ibrahim, says that they are facing a
problem, they have too many users.
Since the PCs were installed, she says
that the library membership figures
have gone through the roof.
In June 2007, before the PCs were
installed, there were 76 new members.
In July, the figure had grown to 615
and in August, 433 more people joined
the library. The demand for Internet
access is so acute that she says they
only allow users half hour sessions.
Ernee Abdul Rahman, the supervisor
at this library, says that she has
been delighted with the response from
Dungun and Marang and their surrounding areas
Azmi Ibrahim
users. Ernee completed a diploma in IT
at Kolej Teknologi Bestari before taking
on this post.
She gets users coming in from miles
away on their bicycles just to use the
Internet facilities. Other than the usual
children and youth, the Dungun library
also gets a fair number of adult users
who come in to get information on agriculture
and farm animals.
Zulhelmi
Ernee and Azmi both notice one
thing; the youngsters using the facilities
quickly advance to become power users.
According to Ernee, “they are using the

USP in a
nutshell
USP in a nutshell
The Universal Service Provision (USP) programme’s
main objective is to provide collective and individual
access to basic telephony and Internet services to
underserved areas or groups throughout the country.
The aim is to narrow the gap between the “haves”
in urban areas, and the “have-nots” in rural areas,
often referred to as the Digital Divide, this inbalance in
communications access can have social ramifications
if not addressed at the national level.
USP targets are divided into underserved areas
and underserved groups within the community. For
classification, SKMM defines these as areas where
the penetration rate for Public Switched Telephone
Network (PSTN) subscribers in Malaysia is 20% below
the national penetration rate or any locality where in
the opinion of the SKMM, applications services are
not sufficiently available to the community at large.
How it works
The USP programme acts as a mechanism for channelling
private sector investment into unprofitable rural
areas. The key tenet here is one of “no gain, no loss.”
This means that a designated USP service provider
incurs no loss, or makes a profit, when implementing
this programme. The service provider claims only for
expenses incurred, at cost, and the SKMM reimburses
them based on a detailed claims template.
Zailatul Hawa
PCs beyond the basic level. I find that they have picked
up advanced formatting knowledge and they spend time
sprucing up their assignments with graphics and layout
work.” On a side note, this phenomenon perhaps explains
why Terengganu students regularly do well in government
exams.
How the Fund is maintained
The Universal Service Provision Fund (USP Fund) was
established under the provision of Section 204 of the
Communications and Multimedia Act (CMA) 1998.
The Communications & Multimedia (Universal Service
Provision) Regulations 2002 (the USP Regulations)
stipulate that, among others, contributions from
licensees shall be based on these three factors:
i) The list of designated services;
ii) Weightage factors; and
iii) Six per cent of weighted net revenue.
All licensees except Content Applications Service
Provider (CASP) licence holders, whose weighted net
revenue derived from the designated services exceeds
RM2 million in a calendar year (minimum revenue
threshold) have to contribute 6% of their weighted net
revenue to the USP Fund.
As of 31 December 2006, the balance of the
USP Fund stood at RM1.987 billion. This amount is
inclusive of the committed cost of RM497 million yet
to be paid pending the claims from the designated
service providers for rolling out the USP projects.
In 2007, several projects amounting to RM1.3
billion had been lined up for implementation.
We had the opportunity to observe this with our own
eyes at one of the workstations. Eight year old Zailatul Hawa
was busy working on a document using a word processing
programme and she was expertly maneuvering her way
around. This young girl had clearly mastered that particular
application, a feat even some adults may have difficulty
with. Zailatul’s father is a fisherman and she spends most
of her free time at the library because her family does not
have a PC at home.
Azmi has one request for SKMM, “Please send us more
PCs!” She estimates that they need another six PCs to keep
up with demand; a heartfelt validation of this USP initiative
by SKMM.
Md. Rusli Hj Ahmad is the Director of the
Universal Service Provision Department of
SKMM. He can be contacted at
rusli@cmc.gov.my.

Feature
SchoolNet kicks off
SchoolNet
A nationwide project is introducing
broadband into thousands of schools.
The company entrusted with this task
reports on progress.

When we think of the digital divide,
the first thing that comes to mind is
that we have to ‘bridge it’. The need
to bridge this divide becomes more
pressing when we compare ourselves
with countries such as South Korea and Singapore. Taking
Internet access as an example, statistics from SKMM's
Communications & Multimedia; Selected Facts & Figures Q3,
2007 (ISSN 1675-6223) has current dialup penetration at 14.3
and broadband at 4.5 per 100 inhabitants on a "subscription"
basis. In comparision, Korea's broadband penetration was
already 25.24 and Singapore, 15.3 per 100 inhabitants in
2005 on an equivalent basis (http://www.itu.int/ITU-D/
icteye). The regulator in its annual Household Use of the
Internet Survey 2005 revealed that main users of the Internet
in households are predominantly urbanites in Klang Valley.
The 2006 survey is expected to reaffirm this. Interestingly
enough, a gender divide was not present.
We have actually seen lots of initiatives being taken by
the government and even the private sector. This actually
shows if we look at the trend in Internet growth in the
country. According to the same studies, the penetration has
increased tremendously from 15% in 2000 right up to the
current 47.8%. One of the more successful initiatives has to
be the SchoolNet project.
The SchoolNet project is a joint effort between the
government, Government Intergrated Telecommunications
Network Sdn Bhd (GITN), eB Technologies
(M) Sdn Bhd and MIMOS Bhd. The main objective of
the project is to provide broadband infrastructure
and Internet access to specified school sites using
different technologies to suit the varying appropriateness.
The parties involved realize the importance of
educating the youth in the benefits of the Internet and
therefore have undertaken this task as their responsibility.
Under the project, almost 10,000 schools from
all around Malaysia are being fitted with the right
technology to get them connected to the
Internet. It was initiated in 2004 and full
implementation is through to 2009.
“We use different technologies
depending on the infrastructure available
at the particular schools,” says Shahruddin
Salehuddin, CEO of GITN.
He goes on to explain that the schools
with good communication infrastructure
requires less effort and they use mainly
ADSL connections to get these schools up
and running. The schools that are not able
to enjoy ADSL are given connectivity via
wireless technology. As for schools that
are just too rural such as the heartlands
of Sabah and Sarawak, a satellite system
(VSAT) makes it possible.
“Basically we check for ADSL first, then wireless. And if
all else fails, we use satellite technology,” he explains.
The lines that are installed in the schools are usually
connected to the computer labs. Other areas in the school
premise that can be connected include any teaching
resource areas, the school office and even the headmaster’s
room. The main aim is to have the whole school connected.
However, GITN’s jurisdiction only includes the infrastructure.
GITN also provides a monitoring service that can be
accessed by authorized personnel at pmis.gitn.com.my. Any
failure in any of the schools will immediately show up and
can be rectified within 24 to 72 hours depending on the
accessibility of the location. To help everything to be more
efficient, a 24 hour network operating centre has been set
up in Cyberjaya, and GITN has assigned staff to be based
in every state in the country where the selected schools are
located.
“Mind you, the staff we hire as the regional maintenance
team are trained fresh graduates. So we are also
helping out by creating employment opportunities for the
youth,” smiles Shahruddin.
The SchoolNet project, being in the midst of implementation,
is currently enjoying bandwidth of up to 1 Mbps/128
kbps. Starting this year, 88 smart schools around the
The satellite system at SK Tagop Darat Ranau

Internet connection at SK Pulau Sanghai
country have been selected to undergo the project’s first
phase of bandwidth upgrading. These smart schools are
now enjoying speeds of up to 4 Mbps/768 kbps. If everything
goes smoothly, the upgrading of the rest of the 10,000
schools will soon take off.
Other enhancements of the SchoolNet project include
the implementation of solar power for schools that do not
have sufficient power. The implementation of the SchoolNet
project for 365 schools suffering from power supply related
problems was put on hold. These schools were receiving
electricity supply from generator sets which are not able
to provide adequate and reliable power for the VSAT units
and computer labs. But as of early this year, a solar power
system was implemented.
Security features are also high on the priority list of the
project. The Managed Security Services (MSS) initiated by
the government addresses security issues at four levels.
Level 1
GITN provides basic computer maintenance training to
teachers and users.
Level 2
Over 200,000 computers are installed with anti-virus
softwares.
Level 3
These 200,000 computers are installed with applications
and operating software updates and patch
management.
Level 4
This level is undertaken at the SchoolNet gateways
whereby content filtering and end point policy
enforcement is implemented.
It is also important to note that all daily security risks
activities are managed by a security management application
and also by staff through the centralised Security
Operation Centre (SOC).
GITN has done a lot to make sure that the SchoolNet
project succeeds. But everyone realizes that it takes more
than just connectivity. The people who are connected need
to maximise the full potential of what it brings and the way
to make sure this happens is to change their mindset.
“Setting up the network is actually the least of all the
challenges when it comes to the SchoolNet project,” adds
Shahruddin.
One of the projects that GITN has embarked on to
ensure this happens is the Sekolah Angkat (Adopted School)
programme. Under this programme, 25 schools around the
country are selected to undergo special training depending
on their needs. What happens is that GITN assigns each
school with a special ICT coordinator who will help train
the teachers not only in utilizing the network, but also how
to teach the students.
“We will also look into furthering this programme to the
country’s Sekolah Agama Rakyat (Public Religious Schools)
in the very near future. In fact, the groundwork is already
underway,” says Shahruddin.
Apart from the Sekolah Angkat Programme, GITN also
hopes to engage the community by using schools.
Since schools are the heart of a community, they will
make it as a resource centre to serve not just the students,
but the rest of the people as well. Hopefully, the SchoolNet
project can be extended this way to also increase Internet
penetration.
For more information on
SchoolNet and GITN, please
visit www.gitn.com.my

FELDA Chini
A Connected Community
0
Feature

About 86 km from Kuantan on the
way to beautiful Tasik (Lake) Chini,
Malaysia's second largest freshwater
lake on the east coast of Peninsular
Malaysia, is a Community Broadband
Centre (CBC) or Pusat Jalur Lebar Komuniti
(PJK). This CBC serves a 22,800 strong community
of mostly smallholder oil palm growers in the
Federal Land Development Authority's (FELDA)
cluster of development schemes in Chini, Pekan,
Pahang.
Located in the village of FELDA Chini 1, the centre
established in January 2009 also serves settlers in Chini
1 and those in the neighbouring Chini 2, 3, 4 and 5, Chini
Timur 1, Timur 2, Timur 3 schemes, as well as outsiders.
The air-conditioned centre which is open from 9am to
6pm, seven days a week has two rooms, with nine networked
PCs each and a 3 Mbps fibre connection to the Internet
provided by Telekom Malaysia (TM) and WiFi access for
those who bring their own notebook. Telekom Malaysia also
pays for the electricity and water bills, and Internet access
charges.
Centre manager Wan Safie bin Wan Omar and his
assistant manager Mohd. Redzuan bin Abu Ghaffar each
take different sets of two rest days during the week but are
there in full force during the weekends.
The centre charges non-members RM1.50 per hour for
use of the PCs, while members who pay a one-time fee of
RM5 for life get two hours free usage per day for the first
three months, after which they pay RM1 per hour. The
system monitors their logon time and automatically logs
them off after the free two hour limit, after which they pay
to log on again if they need to.
Rural communities are being empowered by the
setting up of Community Broadband Centres. Md
Rusli has the story of how one such community
is being introduced to the possibilities of a
connected world.
Casual users usually stop after two hours, while students
doing their research assignments and others using the PCs
for business or other work usually extend the usage.
More PCs needed
Still demand is overwhelming and Ahmad Hamidi, the Tok
Empat or village chief of FELDA Chini 1, himself also an oil
palm grower, feels there is a need for more PCs to meet the
demand.
“The centre is great as it provides settlers with an
opportunity to benefit from the use of information and
communications technology and it's a great convenience for
them. While the children can learn about ICT and primary
and secondary school students can use this facility to obtain
information, and conduct research, their parents can come
in to gain knowledge. Most parents are delighted to have
this ICT facility here,” said Ahmad Hamidi.
“However, there aren't enough PCs to meet the demand
and I hope there could be more,” the village chief added.
The first room is for people to use to access the Internet,
write letters, create spreadsheets, presentation slides and so
on using Internet Explorer, Mozilla Firefox and Microsoft
Office 2007 on the PCs running Windows XP. It also has
a networked colour and black and white laser printer,
document binding and laminating equipment for public
use.
The centre charges 20 sen for each black and white printout
and RM1 per colour print-out plus other fees for binding
and lamination.
The second room is used to conduct training about PCs
and their use, though when there are no training sessions,
it is also available for those who want to surf the Web or do
other work when PCs in the first room are all occupied and
it often fills up quickly too.
1

Rather interestingly, the language used on the PCs
and applications is English. Even though settlers are all
ethnic Malay and not that fluent in English, they are more
comfortable with using English on the PCs since they find
Bahasa Malaysia translations by the software more difficult
to understand, according to Wan Safie.
“Most Web surfers use the PCs to access social networking
sites such as mySpace and Friendster, use Yahoo! Messenger
to chat and to read the online editions of the Berita Harian,
Metro and Kosmo newspapers,” he said.
Secondary school students use electronic-learning
websites such as Guru.Net.My for trial examinations,
Microsoft Excel spreadsheets and PowerPoint presentations
for their school work. They also use the Internet to do their
school assignments, while diploma students use the Internet
to conduct research, and school leavers use them to find a
job.
Primary school students access electronic-learning
sites such as Edufunclub.com and CyberMelayu.com. Small
business owners use Microsoft Word to create price lists
for their produce, while senior citizens use the PCs to chat
online with their children in other states.
While most people in the FELDA Chini schemes are oil
palm growers, there are small business owners, teachers
and Government clinic nurses there.
However most cannot do Internet banking because they
need to obtain a PIN from their bank in Kuantan, some of
which give them only two hours to activate it. By the time
they get back to Chini, a journey of about one hour, the PIN
has already expired.
As most of the settlers have no PCs in their homes, the
training centre conducts training to familiarise them in
the functions of different parts of the PCs, how to use the
2
People accessing the Internet in the FELDA Chini 1 Community Broadband Centre
Internet to obtain knowledge and information, how to use
email and how to use office applications.
“Whilst most primary school children start without
even knowing how to use a mouse, they soon become very
adept at electronic-learning and at playing online games,”
Wan Safie added.
To resettle the landless poor
FELDA was established on 1 July 1956, just over a year before
Malaysia's independence, with the mission to carry out and
implement development projects.
One of its objectives was to resettle the landless poor
and provide them with opportunities and today 813,313
hectares of land are under FELDA and 530,000 persons
benefited from it. Its new generation programmes include
skills training for youth up to diploma level.
It also implements activities which can help modernise
the agricultural sector in areas where FELDA has
administrative authority, especially in activities related to
the production, processing and the marketing of agriculture
and livestock product, as well as to assist, guide, advise,
manage and coordinate social, settlement, agriculture,
industrial and commercial activities in FELDA areas.
Since April 2004, FELDA was placed under the Prime
Minister's Department and the minister responsible for
it is Y.A.B. Dato' Sri Mohd Najib Tun Haji Abdul Razak,
Malaysia's Prime Minister, whose father, Tun Haji Abdul
Razak (Malaysia's second Prime Minister) conceived the
idea of FELDA.
Connecting communities
Community Broadband Centres such as the one at FELDA
Chini 1 are the result of the Connected Communities

approach under the Universal Service Provision (USP)
Broadband Community project initiated by SKMM. The aim
is to provide collective access to broadband services for rural
and remote communities living in the rural or underserved
areas, which most privatised telecommunications service
providers find not profitable to provide service to.
Compared to urban dwellers who can almost take the
availability of telephones, computers and broadband Internet
access for granted, people living in rural and remote areas
lack such information and communications technology
(ICT) facilities, services, and applications. This results in
there being a digital divide between the ICT “haves” in the
urban areas and the ICT “have-nots” in the rural areas, in
terms of their access to telephones, computers, Internet and
related services.
The main goal of the Connected Communities project
is to have Community Broadband Centres (CBC) and
Community Broadband Libraries (CBL) in rural and remote
areas.
In addition, the Connected Communities project also
includes providing individual broadband access to the
households within the community of the rural areas with the
aim to increase broadband penetration rate per household
in accordance with the National Broadband Plan (NBP).
These will ensure that communities living in underserved
areas are connected to mainstream ICT development to
enable and empower them and bring about socio-economic
development for these communities in the various sectors
such as agriculture, education, health, business, amongst
others.
The Connected Community approach will enable the
communities to access new knowledge and information
that can be incorporated into their local knowledge and
Not enough PCs says Ahmad Hamidi - the Tok Empat or Village Chief of FELDA Chini 1
context, such as information on employment opportunities,
educational resources, government services (for example,
providing links to e-Government, e-Learning, e-Commerce,
e-Health, e-Agriculture, etc.) and technical information on
agriculture for their daily lives, such as information on new
varieties, planting techniques, and disease prevention.
The CBC initiative was developed by SKMM to develop
and implement a collaborative programmme that has a
positive social and economic impact to the community in
terms of human capital development and capacity building
through dissemination of knowledge via communications
services.
It also provides the platform to raise awareness, enable
the promotion, marketing and point-of-sales for individual
broadband access service.
The facilities provided for the CBC project may also be
used as training centres for local people to learn computer
and ICT skills, to provide access to distance education,
employment opportunities, human resource training and
business ventures amongst others.
So that the CBCs can realise their full functionality
in terms of building capacity whilst taking advantage of
the socio-economic impact of the communities, several
enhanced features have been incorporated into these
centres to achieve their goals. These are :-
a) The CBC as e-transaction centre supports
various applications for e-Government, e-Learning,
e-Commerce, employment opportunities, online
banking transaction;
b) In lifelong learning, the CBC will function as a learning
academy, which is owned and operated by the
community, where multiple capacity building activities
3

and enrichment training programmes can take place,
and also continuously promote and raise awareness for
education;
c) In social networking, the CBC will enable social
collaboration with other connected community within
the ecosystem, provide opportunities to learn about
services and techniques used in other e-communities,
which are then adapted for use in one’s own centre;
d) To enable the monitoring and evaluation of
e-community activities and the sharing of lessons
learned across e-community centres and across
networks;
e) To enable advocacy and policy related activities
to support the growth of the connected community
movement;
f) The CBCs will enable value creation through access to
knowledge and information which include the
development of local content such as Internet portal
applications, the creation of digital opportunities
through ubiquitous, affordable, equitable, and quality
access to ICT, research and documentation, as well as a
repository for education materials;
g) The CBCs will also serve as a catalyst to moot
broadband access service adoption in USP target areas
and enable the promotional, awareness, and marketing
activities for individual broadband subscription by the
designated universal service providers.
On 8 May 2009, SKMM issued an invitation to interested
parties to register their interest in becoming universal
service providers of the Connected Community project.
SKMM wants to deploy CBCs in FELDA settlements
throughout Malaysia and SKMM hopes that through
Connected Communities project, it will be able to synergise
its objectives with those of FELDA. It also hopes the
community will benefit from the provision of broadband
within the 1Malaysia concept.
The current Prime Minister who introduced the
1Malaysia concept wrote in his blog which is found at
www.1malaysia.com.my:-
1Malaysia is intended to provide a free and open forum
to discuss the things that matter deeply to us as a Nation. It
provides a chance to express and explore the many perspectives
of our fellow citizens. What makes Malaysia unique is the
diversity of our peoples. 1Malaysia’s goal is to preserve and
enhance this unity in diversity which has always been our
strength and remains our best hope for the future. I hope this
Website will initiate an open and vital dialogue exploring our
Malaysian identity, purpose, and direction. I encourage each
of you to join me in defining our Malaysia and the role we must
play in its future. Each of us — despite our differences — shares
a desire for a better tomorrow. Each of us wants opportunity,
respect, friendship, and understanding.
As such, SKMM wants the Connected Communities
project to provide benefits for Malaysia's various ethnic
communities, including the Malays, Chinese, Indians,
indigenous and others.
FELDA Chini 1 is one example of a CBC which has
already been implemented.
However, while the CBCs enable community members
to appreciate the value of broadband Internet, it is still not
enough until they start to use broadband for the fulfilment
of their daily routines such as to market their produce,
their handicraft or to create websites such as the Chini 1
The classroom is used to accommodate excess demand for Internet access at FELDA Chini 1 Community Broadband Centre when not
used for training

Users working on own notebooks with WiFi connection at FELDA Chini 1 Community Broadband Centre
website http://chini1.pjk.com.my and in the 1Malaysia spirit
of “People first, Performance now,” the supervisors' key
performance indicators (KPIs) will be based on how well
they achieve these objectives.
MSD Technology Sdn Bhd, a training service provider
which specialises in community-based development was
contracted by Telekom Malaysia Berhad (TM) to manage all
of the CBCs which were awarded to the latter by SKMM.
The pilot CBC projects which were tasked to TM comprised
12 CBCs in 2007 and the project was further expanded to
include new 73 CBCs under the first phase of expansion
in 2008 including FELDA Chini 1. The second phase of
expansion followed suit later in Q1 2009 comprising new 89
CBCs with the involvement of other USP operators such as
Celcom, DiGi and Maxis.
One of the key challenges in implementing the CBC lies
in the operational management which tantamount to its
effectiveness. Previous experiences from other telecentres
have demonstrated for instance, in the absence of proper
and scheduled operational handling, the PCs will end up
being left idle after a while.
As such, specific development programmes have to
cater for the training of supervisors (or train-the-trainer)
to implement programmes for different groups within the
community’s user-bases and their different types of content
requirement. For instance, programmes for children to create
their own websites using currently available applications
as well as usage of core applications such as electronic
government, making applications to local universities and
how to use the Lelong.com, e-Perolehan and e-Commerce
sites.
In addition, the children can use the PCs for their folios,
to do their homework or play games – which is the easiest to
get them to do on PCs.
As for the senior citizens, it takes more time for them to
use the facilities, since they are quite resistant to change.
Senior citizens in rural areas tend to describe the use of the
Internet as 'main Internet' in Malay, which means to play the
Internet, and one of the option to bring them onboard is by
getting them to read newspapers online. The CBC subscribes
to online newspapers available through Streamyx, TM's
ADSL service, which users can read for free.
In summary, there is no limit in terms of creativity and
innovativeness in pushing the community to acquire basic
ICT skills. Here, the CBC (or telecentre) provides the ideal
platform to validate novel approach in training people on
desktop publishing and other computer skills in response to
the communities’ needs and expectations.
Md. Rusli Hj Ahmad is Director,
Planning and Development Department,
Universal Service Provision Division, SKMM.
He can be reached at rusli@cmc.gov.my

oadband
in business

Feature
Exemplary
Cybercafes
SKMM’s Universal Service Provision
Communications Centres are showing the
positive side of cybercafes. Md Rusli has the
story of the Bandar Baharu, Kedah centre.
Rightly or wrongly, cybercafes have a lot
of negative perceptions. They’re usually
associated with dingy environments
where students playing truant congregate
to waste time and money on Internet
gambling, playing negative games and visiting undesirable
sites. The negative associations of cybercafes
with activities like smoking and gangsterism are so
strong that a fair number of parents either completely
ban or severely limit their children from visiting
cybercafes.
So it is a pleasant surprise then to come across a new kind
of cybercafé that is not only safe but is actually passionate
about giving its members a positive Internet experience.
Unfortunately, you probably won’t find one around your
street corner; not unless you happen to live at the far edges
of Internet land.
Five members of the ladies
computer class of the Bandar
Baharu UCC flanked by UCC
manager, Ruzilawati on the left
and Assistant Manager, Shahrul
Zakaria on the right.
Say hello to USP Communications Centres, more often
known simply as UCCs. These cybercafes are not to be found
in urban areas because they have been set up under the
Universal Service Provision (USP) programme by SKMM.
The USP programme was of course started years back
to bring communication services to underserved areas. The
first phases of the programme saw communications infrastructures
being installed in remote areas.
Villages that had no telephony services had public phones
installed. In other areas, the USP programme brought phone
lines to all homes in an underserved area. USP projects have
also been responsible for providing mobile coverage in areas
that service providers have not been able to reach. These
infrastructure intensive projects are still continuing; for
example a USP funded initiative is bringing mobile coverage
to the East-West Highway that links Perak and Kelantan.

But infrastructure needs are rapidly being met and this
has led the USP programme to focus on initiatives that
involve improving access to digital services among underprivileged
segments of the population. One such programme
has been the installation of Internet Access PCs in Libraries.
The other interesting programme is the UCC project.
The UCC also forms part of the national broadband
rollout plan. The UCC project is simple in its concept. Putting
together a blend of entrepreneurship and service.
SKMM worked with state governments to identify
suitable premises. In the third quarter of 2007, 12 locations
were approved. One of them is in Bandar Baharu, Kedah. A
visit to this centre reveals just how much USP initiatives are
helping to narrow the digital divide in Malaysia.
UCC Bandar Baharu
Bandar Baharu, Kedah is your typical small Malaysian town
which lies at the tip where three states, Kedah, Penang and
Perak meet. It is separated only by a river from Parit Buntar
town which belongs to Perak state. The Penang town of
Nibong Tebal is also very close by. Most residents are
engaged in farming activities or work in factories nearby.
The arrival of the UCC centre has brought changes to the
activities of quite a few people. Factory worker Nor Zuraini
who lives in Kampung Teluk Sera, Nibong Tebal is certainly
not a typical cybercafe user. She has been travelling half
an hour every Sunday for the last one month to attend a
computer introduction programme. Her classmates consist
of five other ladies, all married and all very fascinated with
what they are learning at the UCC centre.
Fellow student, Nurihan who is engaged in some direct
selling programmes said that she makes sure she frees up
her Sundays to attend the computer class. They spend one
and half hours each week and every student has a PC to use.
These ladies are taught how to access the Internet and basic
word processing.
Penang
Bandar Baharu
Perak
The ladies computer
class in session.
East West Highway
Nurihan says that she feels more empowered since
attending this programme. “Some of my neighbours have
computers and I felt a bit deprived because we did not
have one in the house.” Now she is so enthusiastic that she
is making arrangements to buy a second hand PC for the
house. “All of us have our own email address and now we
are communicating with other people.” There is even better
news: most of their husbands are also attending these same
computer classes on a different day.
The manager of the UCC is Ruzilawati Mohd Khalib, a
bubbly young lady who took a degree in computer science in
UiTM Shah Alam. The UCC centre is actually set up by TM
Berhad, which was appointed by SKMM for the UCC project.
TM along with its business partner, Medan Sedunia Digital
hired people like Ruzilawati to run the UCCs and they are
given opportunities to run it as a business with the possible
incentive of owning the UCC outright in due time.
Ruzi says that she and Shahrul Zakaria, the assistant
manager are enjoying their work in the UCC. They started in
December 2007 and their first focus was on publicity. They
printed and passed out leaflets advertising free computer
classes and Internet access at promotional rates. The

esponse has been overwhelming and these days, people are
signing up just by word of mouth alone.
The free computer classes that the ladies are attending
are used to expose people to the information and services
PCs and what the Internet can offer them. Once they
find how useful it is, they are then encouraged to become
UCC members. Membership entitles them to special rates
and privileges. UCC members pay only RM1 per hour for
computer use while non-members are charged RM1.50. They
also pay lower charges for printing and other services.
Ruzi is focussed on getting people to use computers
in a positive way. The emphasis is on Internet usage. “We
introduce e-applications to them, showing how they could get
things done without having to physically travel anywhere.”
She was very pleased recently when some members came in
and booked low cost airline tickets because they had just
been offered university places in other parts of the country.
The UCC Centre is frequented by
students of all races.
UCC Bandar Baharu Manager,
Ruzilawati.
“Previously, these students would have had to go to a travel
agent in Penang, now they got the tickets by just coming
here.” Other activities that she has introduced to her UCC
members include online money transfers and SME related
services.
The students who use the UCC facilities are also
becoming IT empowered. “Many of them are now printing
out their folio covers and using information and graphics
sourced from the Internet for their projects. Young people,
like any other cybercafé, make up a large portion of the
UCC members. Here, however, Ruzi and Shahrul are gentle
supervisors who make sure that these youngsters are not
visiting undesirable websites or engaging in excessive
gaming activities.
The UCC membership is also very reflective of the
population. Ruzi is proud that people of every race come
and use the UCC facilities. Students Ananthi and Farhana

Syuhada are classmates at Sekolah Sultan Ahmad Tajuddin.
Ananthi’s father drives a tractor while Farhana’s father is a
lorry driver. They have been coming to the UCC two or three
times a week usually by motorbike. Both of them have no
computers at home and find the UCC facilities very useful.
Ruzi and Shahrul keep the centre running from 9 am
to 7 pm every day. Occasionally Shahrul also opens it from
8 pm to 10.30 pm if there is demand or a special request.
These two people are very dedicated to meeting the needs
of the UCC members. “We make sure that we keep on good
terms with everyone and we have no hesitation going the
extra distance for them.” This is demonstrated literally at
times as Shahrul also help out students without transport
by picking them up and sending them home by car.
The UCC structure
The Bandar Baharu UCC has 11 computers all networked
and connected to the Internet. One PC is used for admin
work and 6 computers are used for classes. The other 4
PCs are available for users at hourly rates. A CCTV system
ensures that computers are used for positive purposes.
The premises are air conditioned and the computers are
protected from power surges and blackouts with UPS (uninterruptible
power supplies) units. Ruzi says that blackouts
are a problem in Bandar Baharu, “We had a lot of blackouts
in the initial months but thankfully, things are a bit better
now.”
According to Ruzi, the money collected from membership
fees and PC usage goes towards materials, peripherals and
utilities. To really keep it sustainable, they have to engage in
0
Classmates Ananthi (left) and
Farhana (right) learning how to
use a PC.
providing IT services and sales. Assistant manager Shahrul
is the ace in this area because he handles PC servicing and
refurbishing.
The free computer classes have generated a steady
income through the sale of second hand and low cost PCs
to first time computer users. Shahrul says that most of the
people here cannot afford top range new PCs which is why
he spends time sourcing out second hand PCs for them.
Shahrul also repairs and services computers that people
bring in.
Ruzi has plans to expand the range of services being
offered. We’re looking into getting a photocopying machine
as we have people asking for copying services all the time.
Space is a problem as the shoplot they are in is rather narrow.
“We have put in a request to take up two shoplots and open
up the wall in between. Hopefully we can get that approved
and really grow this venture.”
Md. Rusli Hj Ahmad is the Director of the
Universal Service Provision Department of
SKMM. He can be contacted at
rusli@cmc.gov.my.

Feature
Miri: From a fishing
village to a
WiFi City
The 10 sen bistre-brown stamp Issued
to commemorate the 31st August 1957
proclamation of independence.
Not just huge cities are seeing the benefits of
wireless technologies. The town of Miri in
Sarawak is transforming itself into a WiFi city.
SKMM’s Zulkarnain tracks the transformation
taking place.
1

Like most cities, Miri has a rich history.
Back in the 1800s, Miri was just a sleepy
fishing village of a few families trading
occasionally with passing ships. Until the
discovery of oil on Canada Hill in 1910, it
remained a trading village.
Today, Miri is a modern bustling city. Over the years, it
was at the forefront of the oil boom, being one of the first
places in Malaysia where oil was found. Rapid transformation
followed and this town became synonymous with
oil. Over the years, other booms followed. Now, another kind
of transformation is taking place. Miri is in the process of
becoming the most connected urban locality in the country.
The technology of choice is WiFi.
The Old Miri
The history of Miri is quite well documented at
www.miriresortcity.com. Much of the following information
on the Miri story is through the kind courtesy of
this website.
To visualise Miri before the city came to know oil, one
has to transcend oneself into a very different past. Back
then, it was just a small town consisting of about twenty
scattered houses and a few shops. These included a bazaar, a
gambling farm, a pawn shop and an Arab shop. Trade at Miri
consisted chiefly of Jelutong (a tree species) logs, brassware,
belachan (local shrimp paste) and budu (fermented fish
sauce).
The coming of oil brought change to Miri. Canada Hill,
especially the area around the oil well Miri-1, has a significant
place in the history of modern Miri. This is where the
oil industry started in Sarawak, with the successful drilling
of Miri-1 in December 1910.
The growth of the oil industry has helped to transform
Miri from that small fishing village at the turn of the
century into the modern and prosperous town today. The
first derrick constructed was affectionately called ‘The
Grand Old Lady’ and produced oil for 62 years. It was the
first oil town in Malaysia.
Back then, there was of course no telegraph system.
For urgent messages, a special runner came from Labuan,
via Brunei, taking four days and nights using a path along
the sea. There were no roads, only dirt tracks and no street
lamps. There were not even rickshaws, and when one of the
Europeans rode on a bicycle, the whole kampong turned out
in amazement to watch him.
But things slowly improved. By 1921 or thereabouts,
history records that there were around 40 shop-houses in
Miri. A Chinese school was operational and even an English
school had been set up by then. Bicycles and motorcycles
started to appear on the few clay roads in town. Not long
after, motor cars were introduced. This phenomenon
brought further changes to the area.
Another boom that happened in the sixties to the
seventies involved the timber industry. Around then,
exporting timber became a highly lucrative industry. Miri
benefited from this boom well until the eighties and nineties.
2
The face of the town changed with the construction of
suburban housing, multi-storey commercial complexes and
international class hotels.
Somehow Miri always found itself in the thick of things.
When eco tourism became popular, Miri was there to benefit
once again. It came to be known as `Sarawak’s Northern
Gateway.’ Around Miri sits four world-class national parks:
Mount Mulu National Park, Niah National Park, Lambir
Hills National Park and Loagan Bunut National Park.
Inevitably, in the mid-nineties, the rapid development
and concentration on tourism led to the Oil Town being
elevated to a City status.
Of course, over the years, prosperity drew in people.
The small town consisting of a few families has grown to
a city with 300,000 inhabitants. The people of Miri consist
of Malays, Chinese, Ibans, Orang Ulu, Melanau, Bidayuh,
and Penan with quite a sprinkling of expatriates happily
living in harmony and all proud to contribute to make Miri
a Resort City.
The petroleum industry is still an important employer,
but it is the Kuala Baram Industrial Estate that provides the
bulk of jobs for the thousands who now consider Miri their
home.
Connecting Mirians to the World of
Internet – Project Miri Wi-Fi City
For a city that is already so rich in history what other
momentous event could have possibly added to its lustre?
The answer came on 10 February 2007 when Sarawak Chief
Minister YAB Pehin Sri Haji Abdul Taib Mahmud during
the opening of the 11th Pesaka Bumiputra Bersatu (PBB)
Triennial Assembly at Imperial Hotel Miri announced
that Sarawak will embark on a radical approach towards
entering the Digital Age. It will strive for a quantum leap
on Internet penetration rate to 50% in 2010 from a mere
1.3% in 2007. The objective was to put the state ahead of the
country’s pursuit of K-society.
Not surprising, Miri was chosen to kick start the
ambitious target. The project was to be undertaken by a
state-owned communication company, Sacofa Sdn. Bhd.
with another company, Danawa Resources Sdn Bhd as its
partner. Work began in January 2007 and to date it has
already reached a staggering 80 percent coverage, adding
another first in history books – Miri has become the first

WiFi City in the country. The installation of an additional 20
base stations will see Miri achieve 100% coverage.
Project Implementation
Current status
High speed wireless Internet connection in Miri had
become necessary as there is a heavy presence of multinational
companies such as Shell, Petronas and many other
foreign oil and gas companies which need reliable Internet
connection for their operations.
Danawa Resources Sdn. Bhd. is the first and only
Internet Service Provider in Sarawak to offer ubiquitous
Wireless Internet connectivity in the resort city of Miri with
the launch of the DeConnexion WiFi service. The company
has set up WiFi “Hot Zones” throughout the city centre in
the first phase of its rollout plan.
Additional Hot Zones will be set up over the next few
months to at least provide 100% wireless coverage of Miri
city. The suburbs of Miri will also be covered in subsequent
deployments. The response from Miri residents was
impressive. By December 2007, there were 17,000 registered
DeConnexion users. Within six months, the registered users
have shot up to 23,357.
If these registered users are household subscribers,
Miri would have a 73.7% household broadband penetration
rate, suppressing the national target of 50% household
broadband penetration rate target (the current broadband
penetration rate for Miri is 26.6%).
There are currently over 46 locations and 51 hot spots
which have been covered under the hot zones, including
business districts, schools and even tennis courts. Danawa
is expected to set up booster cells between the base stations
to improve coverage and quality of the service.
The Curtin University of Technology Sarawak campus is
the first in the country to enjoy broadband Internet access
in the vicinity of their hostels and lecture halls under the
first hot zone pilot project for Miri city. Choosing Curtin
University as the first hot zone pilot for Miri City augurs well
with the state vision of developing K-society and a reflection
of the city's international community inhabitants.
The university started operations in Miri, Sarawak in
February 1999. In 2002, the new purpose-built campus in a
garden opened, which is a world-class facility where stylish
architecturally designed buildings complement state-ofthe-art
equipment and facilities coupled with sophisticated
IT linkages to provide students access to the resources of
Curtin, Western Australia.
The international students come from some 40 countries
— the largest groups from China, and very obviously,
Brunei, because of the proximity. They also have students
from South America, Africa, the Middle East, Australia
3

and of course Southeast Asia. It was reported that every
year, there is an addition of about 250 international students,
making Miri a truly international community city.
The new landscape
Danawa’s WiFi coverage is based on industry standard
802.11 b/g standards which enable users to access the
wireless network with similarly equipped notebooks,
computers, PDA’s and WiFi equipped Smart phones. Users
will be able to enjoy unlimited always-on broadband
Internet access anytime anywhere within their networks.
Using the Altai A8 WiFi Cellular Smart Base Station,
each base station, can create a hotzone with a 500-metre
radius but this can extend as far as 1.5 km in a clear straight
line.
The City-wide WiFi implemented in Miri can deliver
a variety of applications for the benefit of the City. In an
economy emphasizing cost-effectiveness, productivity and
performance pledge, a tighter fiscal budget policy mandates
Governmental departments and public utilities to spend
their budget allocation efficiently in providing public
services.
Leveraging on the availability of Internet access within
the city; City personnel and field technician can make use
of the citywide network to receive job assignments and to
file job completion status with wireless-enabled PDAs and
laptops, so as to save the traveling time between office and
field location. What’s more, the meter reading process of
public services such as electricity, water and gas supply can
be automated by aggregating the data back to the central
database through the wireless network.
Another domain of city-wide application is on the
public safety side. Previously, public safety agencies were
deploying their private systems for voice or data communications
and resulting in coverage problems and huge capital
investment.
With the availability of secure city-wide wireless
network, remote surveillance can be easily deployed with
wireless video cameras installed at government buildings,
strategically located premises and highways or even traffic
lights. Remote data access is another key application area
to allow retrieval of digital maps and building schematics
in search & rescue operations. Currently Danawa is working
with one of the housing developers in Miri to install wireless
remote surveillance using the WiFi infrastructure in the
housing area.
The development of client devices drives the need for a
city-wide wireless network. WiFi built-in chipset becomes
a standard for laptops. There will be more mobile phones
coming out in market with WiFi mode. Smart phones and
Blackberry devices provide push email service through
WiFi. To add to the possibilities, even portable multimedia
players such as the Sony PSP, Mylo and Microsoft Zune all
come with WiFi capabilities.
Conclusion
From a village of roaming wild boars to a city where people
and tourist roam the city with high-tech gadgets and
laptops, Miri has certainly put itself once again in Malaysian
history books. The city developed by the visionary and
determined people of Sarawak is well poised to experience
its next boom.
Zulkarnain Mohd Yassin is the Director of the
Kuching, Sarawak branch, SKMM.
He can be reached at
zur@cmc.gov.my

media LiteraCy &
LoCaL Content
over the
internet

Feature
The
Malaysian
Internet User

The Household Use of the Internet
Surveys (HUIS), conducted in 2005,
2006 and 2008, revealed that more
and more Malaysian Internet users
are acquiring information from the
Internet. Back in 2005, only 41% of the Internet
users were accessing the Internet for information.
Then in 2006, it rose to 85% and jumped to over 94%
in 2008. These figures mirror the worldwide trend
that has seen the world turning to the Internet as
a primary source of information and which also
turned Google into a noun. In the United States,
for example, 96% of people conduct searches on
their computers.
The interesting figures above are the fruits of surveys
carried out through SKMM’s Computer Assisted Telephone
Interview (CATI) Centre. SKMM regularly commissions
surveys and industry reports on areas that it regulates
to obtain a better picture of trends and patterns of the
industry.
Methodology
The main objective of the HUIS was to collect data pertaining
to access and use of the Internet in Malaysia. In the context
of the HUIS, an Internet user is defined as someone who
accessed the Internet at least once in the past month at
his/her own home. Other means of access such as through
hotspots or at work were not considered in this survey.
Randomly generated PSTN numbers were then dialled and
if it is an Internet-equipped household, a randomly selected
user was sampled.
Penetration
From the responses received during HUIS 2008, on average,
one household Internet account is shared by 2.26 users in
The series of Household Use of the Internet
Surveys carried out by SKMM over the last few
years enabled a profile of web surfers in Malaysia
to be developed. Ng Wai Mun reveals what the
Malaysian Surfer looks like.
Malaysia. This translated to 1.9 million Internet users in
Malaysia as at the end of March 2008. In terms of household
broadband penetration, Malaysia’s penetration stood at
17.6% as at end-September 2008. For comparison, one of the
most connected countries in the world, Iceland, has 76%.
Access trends
Just four years ago, the main mode of Internet access in this
country was through dialup and up to 81% said then that
they had no plans to migrate to broadband. Only 19% said
that they intended to migrate to broadband. Since then, the
mindsets of these Internet users have become much more
receptive to broadband. In 2008, 74% of these users were
already accessing the Internet via a broadband connection.
Dialup users accounted for a low 25% with the remaining
1% users using both connections. Awareness issue however
remained a problem. In 2008, among the dialup users, only
64% knew of broadband’s existence.
Over the past few years, the workplace remained as the
main place where users accessed the Internet apart from
their homes. So much so, some quarters held the opinion
that the fact that workplace offers Internet access to its
staff may itself indirectly retards the growth of Internet
broadband subscribers in the country. Most would have done
all the Internet related chores in the office and thus there is
no need for personal Internet access at home. Moreover, the
Internet access in the office would be free.
This may however change in the near future. In most
developed countries, access trends are heading towards
mobile. In the United States, 20% - 40% of the Internet users
make use of smartphones to read news online, search and
visit websites. In South Korea, the situation is similar where
most Internet traffic are derived from mobile phones. In a
survey done by the National Internet Development Agency of
Korea, wireless Internet for mobile phones ranks highest at

Communications and Multimedia Connections in Malaysia
51% followed by wireless LAN at 8% and usage of broadband
wireless Internet at 3%.
The Korean survey revealed the reason behind wireless
Internet’s popularity in Korea was because it allows users
to access Internet from anywhere i.e. immediate access
when it is needed. However, should not this also be the main
form of Internet surfing in other countries as well? This is
currently not the case. Perhaps the issue of smartphone
pricing (relative to the cost of living) forms a major factor in
determining the popularity of wireless Internet access via
smart phones in a particular country.
Who’s surfing?
There is not a big gender gap among the Internet users. In
2008, 52% of users were male and 48% were female. Internet
usage however is highly driven by the young generation.
53% of Internet users were below 30 years old and a huge
75% were below 40 years of age. Even though younger
people were the ones accessing the Internet the most, this
appeared to start only after users had reached 15 years of
age. The survey found that only 7% of Internet users were
below 15 with that figure rising to 18% for those between 15
to 19 years of age.
These figures would be interesting reading for those
involved in delivering rich media services and applications
because a study in the United States showed that younger
users were driving media consumption there. High bandwidth
activities such as watching or uploading videos and
photos, listening to music and so on were primary activities
of the younger generation in the United States.
The digital divide remained wide in Malaysia. Location
wise, urban users outnumber rural users 6 to 1. Most house-
22.9% Broadband
42.3%
44.3%
100.1%
Pay TV
per 100 inhabitants
Fixed Line
Cellular Phones
* Penetration rates as at 1Q-09
** Penetration rates as at 2Q-08
Source: SKMM
holds accessing the Internet are found in urban areas. In
2008, Selangor and Kuala Lumpur hold 39% of these households.
Not surprisingly, education is linked to Internet usage.
66% of Malaysia Internet users hold a degree or diploma.
Average use per week
Back in 2005, as high as 43% spent less than 4 hours online
per week and only 9% spent 28 hours and more online. In
2006, the HUIS revealed that usage has increased. 16% of
the users now are spending 28 hours and more online per
week while only 26% spent less than 4 hours online. The
numbers are even more telling in 2008 where 28% spent 28
hours and more online.
In a survey conducted by Goldman Sachs, in the United
States, the overall time spent online is approximately 22.5
hours per user per week. Usage however has been flattish
over the last few years. Internet usage over the computers
has been stable. Mobile Internet usage however is on the rise,
with 5% of those surveyed accessing the Internet through
mobile devices compared to 3% in 2008 and a mere 1% in
2007. This seems to mirror the trend of the Korean users
as well. The higher usage merely reflects the more mature
markets of the Internet users.
Americans are spending a lot of their online time on
media content such as watching movies and TV, blogging
and creating/uploading video content. And for the younger
demographics, they are spending a lot of time on social
networking sites and instant messaging.
One would not be able to pin down any one particular
reason to explain the increasing usage in Malaysia as
compared to the US’s flattish but high usage. Some would
attribute the increasing usage as being the trends of usage

in developing countries. Others would claimed that the
services offered in this country are improving, thus worthwhile
to spend more time online.
On the contrary, some may even be bold enough to
claim the longer usage time reflects the slower speeds
available to the Internet users. A user may need to spend
more time online to perform its tasks as compared to users
in other countries. At this juncture, data linked to the speed
available to the users in the various countries is not available
to substantiate this claim.
So what do Malaysians do online?
In 2005, the Internet was primarily used for communications,
accounting for up to 99.6%. Searching for information grew
strongly the following year where 85% of users reported that
they were getting information online. The trend continued
in 2008 where getting information and communications
were the main reasons users went online. In South Korea,
usage of the Internet, for communications, account for a
lower 70%.
Moving forward, percentage wise, we expect these
percentages to decline as more and more new applications
are available to those that surfs the Internet. The time
online will be spread between communications and these
other new applications.
Malaysian Users of Internet By Age Category
Activity on the Internet
In HUIS 2008, participants were asked if they had carried
out Government transactions online or engaged in online
stock trading. 20% were using e-Government transactions
and 6% used online stock trading. Other usage included
education, leisure, financial activities and public services.
As awareness increases and Internet transactions made
safer, we expect e-transaction related activities to increase
tremendously.
Of those visiting Government websites, an overwhelming
92% searched for information; 64% went to download information
while 53% downloaded forms. Those who lodged
complaints or got advice through the websites accounted
for 20% and 19% respectively.
On e-Government, an internationally accepted
benchmark can help one understand this country’s
e-Government readiness and adoption. The United Nations
conducted an annual e-Government survey which included
a section titled e-Government Readiness. This survey ranks
countries according to two primary indicators. The survey
assesses the state of e-Government readiness and the extent
of e-participation. This survey assessed the 191 member
states of the UN according to a quantitative composite index
of e-Government readiness based on website assessment,
telecommunication infrastructure and human resource
endowment. Malaysia ranked 34 in the 2008 e-Government
Percentage share of household user base
Age Category 2005 2006 2008
Pre-teens & Teens (up to 19)
Adults (20-49)
Seniors (50+)
25.1
66.5
8.4
26.0
67.0
7.1
24.7
65.8
9.4
Internet usage 2005 2006 2008
Getting information
Communication by text
Leisure
Education
Financial activities
Public services
e-Government transaction
Online stock trading
Others
Source: SKMM
Percentage share of household user base
40.5
99.6
47.1
46.8
14.6
12.7
-
-
1.3
84.5
80.7
52.7
45.9
23.6
12.0
-
-
0.2
94.4
84.7
63.5
64.5
31.8
29.2
19.8
5.9
0.7

Readiness Index with a rating of 0.6063. Sweden was
number one with a rating of 0.9157. The United States ranked
fourth with 0.8644; Singapore came in 23rd with 0.7009.
Looking at other Internet usage habits, over in the United
States, users aged from 18 to 29 used the Internet mostly for
social networking and communicating with others, mainly
in the form of emails. However, older users allocate more of
their online time playing casual games and researching on
health related content.
E-commerce
Throughout 2005 and 2006, airline ticket purchases were
the most popular items bought online in Malaysia, 43.8%
and 58.5% respectively. The second most popular item was
0
Methods of Internet Connection
1.0 %
73.9 %
25.0 %
Broadband
Dailup
Both (Dailup & Broadband)
Type of Blogs Frequently Visited
Others
Media blog
Business blog
Blog search engines
Blogging communities
and directories
Source: SKMM, HUIS 2008 Source: SKMM, HUIS 2008
17.5
19.6
books. In both years, most users spent less than RM500 over
the same three months.
On the contrary, where e-commerce is concerned, online
purchases in the United States have flattened out to 20
purchases over the past year. Whilst “airline ticket” was the
most popular item purchased online in Malaysia, clothes
takes the top spot in the United States with travel related
purchases lingering in third spot only.
Although e-commerce is getting big in Malaysia, the
United States reported that e-commerce spending slowed
down in 2008. Amazon.com continues to lead the pack in
this segment. Americans bought apparel, books, travels and
consumer electronics online, similar to Malaysia in terms of
42.8
47.2
63.5
0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0
Percentage

items. 71% of Americans cited that item prices were the key
driver that affected their purchasing decision.
Others
Among other areas covered in HUIS 2008 were the peer-topeer
(P2P) usage, blogs, instant messaging, phishing and
digital signatures.
Most P2P users primarily used the Internet to stream
media followed by file sharing.
Instant messaging is also gaining momentum in terms of usage.
Over 58% users used it.
Source: SKMM, HUIS 2008
64% of the respondents knew what blogs are, with 10%
of them having their own blogs. 44% users who knew about
blogs, accessed them at home.
Instant messaging is also gaining momentum in terms of
usage. Over 58% users used it. The most popular being Yahoo
and Windows Messenger followed by GoogleTalk and Skype.
The majority used instant messaging to communicate with
family and friends.
As services improve into the medium term, instant
messaging services may no longer be just anciliary services
used for casual social conversations but could become part
of the main communications mode for the public. Whether
such messaging systems will overrun SMS as the main
mode for short messaging remains to be seen. Undoubtedly
this will be closely tracked by the mobile phone service
providers. Currently the SMS segment accounts for approximately
30% of their earnings. The loss of this 30% would
have a huge impact on the mobile service providers. If these
other messaging systems do encroach into the SMS market
share, the mobile phone service providers will probably be
re-strategising its business models to counter new challenges
to their businesses and bottom lines.
Despite reports saying phishing is a huge problem, 72%
of home users admitted to not knowing what it is but 85% of
this group were savvy enough not to click on any links that
is in their emails.
As for digital signature, only 27.6% of the users knew
about it while only 28.8% knew how to get one.
Ng Wai Mun is with the Research and
Planning Division, SKMM.
He can be reached at wmng@cmc.gov.my
1

Mobile content
and applications
the next area of growth?
2
Feature

W
ith all the gloom and pessimism
surrounding the world economy,
one area still shines brightly. Mobile
Internet growth patterns continue
to grow rapidly all over the world.
In the United States, operators Verizon and AT&T
reported data revenue growth of 41% and 51%, yearover-year
revenue in the fourth quarter of 2008. The
analysts, Consultancy Accenture estimates that the
western European mobile data market is worth 29
billion euros ($36.5 billion) and forecasts it will grow
21 percent a year until 2011.
The picture is equally rosy on our side of the world. Frost
& Sullivan reported that mobile broadband adoption and
usage are experiencing explosive growth in Asia. It said
that mobile data revenues for the Asia-Pacific region in
2008 totaled US$65.1 billion, compared to US$21.9 billion in
2003. Mobile penetration rates in Asia have crossed the 50
percent mark. By the end of 2008, 25 percent of the region's
mobile devices were Internet-enabled, with 14 percent being
2.5G enabled and 9.0 percent 3G enabled. Frost & Sullivan
expects growth to continue. "Going forward, we expect this
number to increase dramatically by 2014 when 47 percent
of the region's device will be able to receive an Internet
connection," said Nitin Bhat, senior vice president for information
and communications technology (ICT) practice
of Frost & Sullivan at the Mobile Broadband Asia Pacific
Summit 2009.
Clearly the continued robust performance of the mobile
industry is due to the growth of mobile Internet as voice
revenues have been flat or declining for years now. Even
first generation data revenue streams such as ringtones and
wallpapers are past their glory times.
Mobile data now is synonymous with mobile Internet.
As more and more mobile users switch to smart mobile
The rise of high speed mobile networks is
creating a momentum that will transform the
mobile industry into a delivery channel for mobile
contents and applications. Albern Murthy looks at
the possibilities being opened by this phenomenon.
devices and begin experiencing mobile Internet, the
demand for mobile content and applications will show the
same growth patterns, opening up excellent opportunities
for mobile content and application creators. It is without
doubt, the next area of growth.
Fulfilling 3G’s Promise
What the industry is witnessing now is the result of
investment in 3G networks. Admittedly it has taken some
time - 3G has been around for three to four years now. The
focus initially was about video calls but that alone is not
sustainable. 3G networks were always designed to be more
than just a conduit for video calls. The main premise of 3G
has been about bringing a better Internet experience to
users and about content and sharing.
At the same time, one must acknowledge the role of the
latest generations of mobile devices. Mobile phones have
become highly sophisticated devices. As new and better
devices are made available at better prices; more Malaysians
can now afford these media rich phones. Even the web
has adapted to the trend towards accessing the Internet
on mobile devices. It was just yesterday when not many
websites were accessible to mobile devices. Even the ones
that were did not provide that good a visual experience to
users. Today, a large number of sites can be used on mobile
devices.
Within this rollout of technologies and advances of
devices, another factor has been instrumental in bringing
this new paradigm and that is the change in consumer
behaviour.
When consumers discovered that they can download
content at acceptable speeds on mobile, mobile Internet took
off. To a certain extent, in the initial days, while networks
were being built, the experience may not have been perfect.
Streaming was not that good an experience.
3

Gen Y and Gen X Use The Mobile Internet Most
“How often do you browse the Internet from your cell/mobile phone?”
(percent answering “At least monthly, ” At least weekly,“ or “At least daily”)
31%
Gen Y
(18-28 )
27%
Gen X
( 29-42 )
Not surprisingly consumer take-up was slow. The mobile
consumer today has a far better experience and the results
speak for themselves.
What we are witnessing in this country is not unique;
it is a worldwide trend. Other regions have gone through
the same path or are somewhere behind this region. By and
large, Europe has led the 3G charge and there are some very
good examples there to emulate.
Although this region has excellent mobile data adoption
rates, it can be said that it is around where Europe was
2 years ago. We have progressed from the stages of WAP,
GPRS and later EDGE technology to the point now where
more have access to high speed broadband Internet. And
every day, more mobile phones are connecting online.
Where the operators fit in
Mobile operators too have gone through an evolution in
their approach to generating revenue from mobile data.
The boom in mobile Internet has changed the industry.
The old approach was to launch GPRS services and then
offer content within a walled garden. Today, it is in general
based on an open garden concept. Of course, revenue from
sales of downloads and ringtones will not go away for the
next few years but the main action will be in serving the
current lifestyle of sharing and connecting. This lifestyle has
become the main driver of the PC environment and it will
also dominate the mobile Internet soon.
To thrive in this new environment, mobile operators
may best succeed by focusing on becoming platform
providers. Again, the European experience bears emulating.
After initial hiccups, there is a lot they have done right.
The T-Mobile Group is an excellent case study. They have
focused on becoming a pure platform provider. They do not
aim to host exclusive content. Instead they take a very open
approach.
17%
Younger
Boomers
( 43-52 )
13%
Older
Boomers
( 53-63 )
4%
Base : US consumers with a cell/mobile phone
Senior
( 64+ )
Source : North American Technographics Marketing And Mobile Internet Online Survey, Q3 2008
Source : Forrester Research, Inc.
By doing so, it is not important for operators to focus
just on developing the content. Instead they have to work
on finding the right partnerships. The content and mobile
industries have to work together rather than as two separate
entities. There will need to be more collaboration between
them. The focus has to be on the end users.
Working out the right model
Just like how mobile operators have to rethink their strategies,
the content industry too has to modify its approach
towards making money on mobile. The good news is that
the right kind of change is happening. The music industry is
a good example of this phenomenon. It is starting to change
to the right direction though they could have done that a
lot sooner. It is moving away from the license model where,
for example, every truetone download is RM5 no matter
how many truetones are downloaded. Consumers have
consistently proven that they will not change their habit of
downloading from other sources if the cost of downloading
multiple truetones on mobile is still expensive. They will
just go for the other option that is available from just about
everywhere on the Internet.
The content industry is finally accepting that they cannot
control people but they have discovered that if they make
it affordable, people will definitely do a lot more original
downloading of games and songs. Together with affordable
price packing from the operator's perspective, that will drive
the mobile content industry a lot faster. It took the industry
some time to understand this.
The key is pricing and packaging. Affordability is an
industry responsibility and here the content and mobile
industries have to work as one. It is not possible to have
separate agendas in terms of acquiring the same customers.
Mindsets have to change and both parties will have to
come round to the idea that volumes will compensate for

DIGITAL MEDIA CONSUMPTION
BY MALAYSIANS
(GLOBAL RANKING)
RANK #5
in digital media consuming nation
RANK #7
having streamed digital media in the past month
RANK #9
having downloaded digital media in the past month
RANK #3
in spending over 20 hours a week watching
streamed/downloaded content from the Internet
Source: AC Neilsen
lost margins. The content and application industries will
deliver compelling content and innovative applications
while mobile operators will work on getting more people
to take up the contents and applications through creative
packaging. One good stating point for this partnership
would be to answer this question: How can my customers
experience your application on my network?
Successful Mobile Content and
Applications
When the right mindset is reached, it becomes easy to move
on to determining what types of content and applications
will be desired by mobile users. Getting mobile content
applications right too was a lesson learnt after many wrong
turns. A lot of resources initially went towards developing
innovative solutions and applications that were either ahead
of time or required intensive consumer education.
The mobile industry created various innovative solutions
but the lesson learnt was that people take time to adopt.
Too many resources then have to be spent on educating the
users. The easier path is to simply deliver what works on the
big screen albeit with a twist; mobile content and applications
have to look and work easily on mobile.
The right approach then is to go back to traditional stuff
and create things that people want. Results all over the
world show that it pays to follow the Internet trends rather
than innovative trends. The trick it appears is to simply
deliver what’s hot at any time. In the mobile industry it pays
to keep things simple and to also just emulate what works
on the Internet.
The growing prevalence of Internet enabled mobile
devices is moving the online content world towards getting
their products onto mobile devices as fast as possible. This
strategy is sound because customers who have been using
these applications or downloading content from laptops
and PCs want to continue their love affairs on their mobile
devices. They want a simple logon process and in essence,
the same experience on mobile devices.
The mobile operators will provide their expertise in
ensuring that the Internet experience is as good on mobile
as it is on larger screens. The mobile industry’s role then
will be in facilitating that experience. The operators that
succeed in creating the best experience of popular Internet
applications in their networks will do well. They will focus
too on ease of use.
At the same time, the Internet content industries can
learn a lot from the mobile industry in terms of customer
profiling and customer management. On mobile, operators
Slow Networks Hinder Younger Generations;
Device Issues Hold Back Older Users
It was faster
The sites on the mobile Internet looked
more like they do on a computer
It cost less to use
My phone had a larger screen
It was easier to type URLs (Web addresses)
into my phone’s Web browser
It was easier to find sites on the mobile Internet
Source: Forrester Research Inc
I would use the mobile Internet on my
cell/mobile phone more frequently if...”
My phone had a keyboard
54 %
46 %
45 %
43 %
33 %
31 %
25 %

All Generations Favour Search Sites;
Gen Y Dominates Mobile Social Networks
“ Have you used the following types of mobile Internet sites? ”
( percentage of mobile Internet users answering “yes” )
Search
(e.g., Google, Yahoo! )
Media
(e.g., New York Times, CNN)
Retail
(e.g., Amazon.com, eBay)
Social networking
(e.g., Facebook, Myspace.com)
Travel
(e.g., airline sites, Orbitz, Kayak)
Banking
(e.g., Bank of America, Citibank)
Source: Forrester Research Inc
can assist by profiling customer based on mobile content &
applications.
Since it knows its customers intimately, mobile operators
are ideally placed to deliver this edge. They can work out
what a customer wants. Concerns like privacy will have to
be given due attention but with a proper permission based
process in place; mobile operators can help content and
application makers fine tune their products and deliver
even better mobile experiences. Customer profiling will be a
key element driving mobile Internet adoption and it is likely
to be the next stage towards the creation of ultimate mobile
Internet applications.
What to focus on
The point made earlier is the best guide towards creating
mobile applications and content that are relevant to mobile
users: follow hot Internet trends and work towards making
the mobile experience as delightful as possible. Consumers
will not be abandoning their desktops totally but instead
will become increasingly more mobile. They will expect to
have access to similar applications and content when on the
move.
One excellent approach is that which is taken by Google.
It has worked hard to create the same experience on mobile.
Users of their applications get an immaculate experience
when they access their favourite applications on mobile
devices.
Following hot Internet trends is likely to make it easy
to get consumers to take up newly developed content and
applications. Currently, the Internet is all about sharing.
The Internet space is filled with communities creating and
sharing their own content. The mobile industry must focus
on these hot topics. For example, consumers are demanding
better ways to experience applications like Facebook,
51 %
50 %
46 %
41 %
65 %
75 %
Tweeter, mySpace, email, navigation and maps on their
mobile devices.
Another related hot trend to watch out for is that of
delivering information and opinions. These days, consumers
are increasingly searching for tips and opinions on lifestyles.
It can range from opinions on where to eat, what clothes to
wear and what gadgets to buy. Consumers are keen to get
these types of information on their mobile. The technologies
to create these applications and services are available now.
Consumers are also looking for applications and services
that simplify life. An Ericsson ConsumerLab study undertaken
in 2007 in US, UK, Italy and China revealed a list of
mobile services the respondents were willing to adopt. The
top 10 services that consumers were most looking forward
to are listed below.
1. Paying Public Transport
2. Buying From A Vending Machine
3. Using Mobile Phone As An ID/To Gain Entry
4. Getting Product Info On Your Mobile Phone
5. Recharging Phone With E-Money (Online)
6. Automatic Mobile Phone Backup Service
7. Positioning Service (Like GPS)
8. Buying Product In Store
9. Downloading Coupons And Maps From PC
10. Sharing A Picture
Local Content
There is a huge role for local content in the mobile
ecosphere. Profiling consumers is another word for creating
local content. DiGi for example has created a website that
is all about creating a customised view of the Internet. The
website, located at MyInternet.com.my, is a fresh approach
that seeks to bring established applications like Facebook

Digital Malaysia
There is an estimated total of 15 million Malaysians online
TOP 10 SITES SURFED by MALAYSIANS ONLINE
1
2
3
4
5
6
7
8
9
10
(MY)
and Friendster together with local content. Approaches
such as these are likely to do well.
It is everyone’s role to help get local content going. The
mobile operators have a corporate responsibility to do this
but it also makes great business sense. Local content is
becoming very popular these days especially for independent
music labels, references to vacation spots and restaurant
guides in Malaysia.
Another approach can be to create platforms on which
users come and create their own content. These platforms
must be creative and relevant to the local community; not
aimed at simply creating another version of say, Friendster.
Mobile operators can motivate local content developers by
highlighting to them what the trends are, what people are
willing to pay for, by giving them focus areas.
Some parties are also doing well by taking international
content and making it relevant to local users. Good
examples are localised maps that can be uploaded to GPS
solutions. The opposite is also viable as there certainly are
local applications and content that can be exported to the
world. Malaysian companies for example have developed
great traffic solutions and home monitoring applications
that would be relevant anywhere else in the world.
Mobile operators can also help to jointly educate
customers. Local content will have a boost when everyone
is geared towards promoting the same themes. For example,
if the industry believes that online communities and email
are the big topics now, all events and road shows can push
these themes, creating a reason for content company to go
and develop into these trends and market. Other approaches
could be through competitions or funding or sponsorship
that are focussed on specific hot themes.
Creating the Right Ecosystem
Attention will also have to be paid to getting a complete
ecosystem ready for a new age of mobile Internet. One area
MyInternet.com.my screenshot
that would need to be addressed is that of payment. Mobile
Internet will involve online shopping, confirmations of
purchase. Transactions will require the use of credit cards.
When mobile content and applications take off, financial
institutions will have to be involved. Areas like credit card
transactions and online banking will have to be streamlined.
In fact, exhaustive precautionary measures will have
to be in place to avoid fraud.
Also, it will be important to ensure the regulatory and
monitoring processes stay up to date. If bad apples get into
the act and start delivering damaging content, consumers
are likely to stay away. The industry has seen the damage
that can be caused in the text messaging areas when
some scams scared away consumers from genuine value
providers.
The Content Age is Here
It will require effort and education by all parties to reap the
Malaysian market which is poised for a huge explosion in
mobile content and applications. It will be important, in
terms of mobile Internet, banking industry, mobile operators,
content provider and regulatory monitoring, to ensure that
the quality of content is what the customer wants.
Do that right and everyone will benefit. In fact, the
saying that ‘Content is King’ will never be truer.
Albern Murthy is Head,
Products and Segment Marketing, DiGi.

Feature
Creating A Media
Literate Society
Institutions of higher learning are collaborating with SKMM
to develop knowledge resources on the use of new media
by Malaysians, Amarjit Singh elaborates on this initiative.
Back row (L-R): Mr Amarjit Singh (SKMM), Tuan Haji Mohamad Suandi Hasan (Ministry of Information, Communications and Culture),
Asst Prof. Dr Wong Siew Fan (Universiti Tunku Abdul Rahman), Puan Eneng Faridah Iskandar (SKMM), En Mohamed Sharil Tarmizi (Chief
Operating Officer, SKMM), Dr Nor Laily Hashim (Universiti Utara Malaysia).
Front row (L-R): Assoc. Prof. Dr Mohd Fo’ad Sakdan (Universiti Utara Malaysia), Prof. Dr Md Salleh Hassan (Universiti Putra Malaysia),
Datuk Dr Halim Shafie (immediate past Chairman, SKMM), Prof. Dr Abu Bakar bin Salleh (Universiti Putra Malaysia), Prof. Dr Lee Sze Wei
(Universiti Tunku Abdul Rahman), Dr Lim Tong Ming (Sunway University College).
We live in the media age where
a large segment of our society
experience a constant barrage
of information in our every
waking moment and where
multimedia and communications are an integral
part of our daily lives. There is a heightened sense
of connectedness and of the global community
due to the capabilities of today’s communications
network.
The increase in the availability of new media over the
past decade or so has enabled members of the public to
regularly turn to sources such as websites and weblogs
for news and information and social networking sites for
interaction. Not surprisingly, new media has increasingly
become the primary distribution channel to the connected
communities.
Although traditional media services such as print and
broadcast services in Malaysia continue to thrive, they are
finding themselves increasingly in competition with new
media for the consumer’s attention. This has led to traditional
media services and broadcasters to venture into new
media availing services over mobile and the Internet in the
form of online news and entertainment portals.
Personalisation of the Web
In recent years, the media landscape has been shaped by
major developments which in turn started new trends in
lifestyle and attitude of consumers towards media and its
content. The rate that new media content is being consumed
is astounding; fueled by the popularity of user-generated
content and social media, these trends have profoundly
changed the way content is shared and how information
is organised and disseminated. Thanks to the dynamism
presented by converging technologies and applications, user
empowerment and personalisation of content have so transformed
the media landscape, that Yahoo! acknowledged in
2007 that indeed personalisation (targeted content) of the

web experience is the future of the web and this was underscored
by the fact that many web companies had shifted
focus from search to personalisation.
Malaysians have clearly taken to new media. A study in
2007 revealed that 70% of Malaysian online users read blogs,
35% were bloggers and 80% watched video clips online.
According to a more recent research by O'Reilly
Research, Malaysia had close to 1.3 million Facebook users
(or 0.67% of the worldwide Facebook total) as of early May
2009 compared to 800,000 last December, and Malaysia was
ranked fourth after Indonesia, Hong Kong and India in terms
of Facebook users. As of May 2008, there were over three
million unique visitors to Friendster from Malaysia, versus
758,000 to Facebook and 735,000 to MySpace, according to
comScore.
Communications and Multimedia
Connections in Malaysia
With these rapid and dynamic changes taking place in the
communications landscape, Malaysia is becoming a more
networked society. The public is able to access, interact with
information services in new and innovative ways and will
continue to be presented with new challenges and benefits
as convergence takes its course. Furthermore, the consumer
now has more personal control than ever over the media
that they consume especially with the added convenience
of mobility and converging services. Given this scenario, if
consumers are to reap the benefits that the level of development
communications has arrived at today, it is critical
for the consumer to be able to manage the complexities as
well as the often accompanying confusion and anxieties
although in varying degrees.
Undoubtedly, the influence of new media is growing;
its benefits and impact tremendous. This underscores
the concerns of the Government, in particular the impact
of negative aspects on society such as pornography, false
information, online gambling and so on and its implications
for regulation and the requirement to enhance consumer
protection and promote localised content at the same time.
Media Literacy as a Sustainable
Regulatory Function
Evidently, the patterns of consumption and the ways of
engaging with communications services as are their preferences
and attitudes, vary from one consumer group to
another.
Going forward, it is vital that decision and policy makers
have a clear understanding of markets and peoples’ attitudes
and how they – the market and people - are changing. For
example, there is also growing concern on issues of public
interest such as accuracy and reliability of information
acquired through online means and also why the public
increasingly seek information from such alternative online
sources.
In acknowledgement of such concerns and more, SKMM
has embarked on a research collaboration programme with
local private and public higher institutions of learning to
establish knowledge resources on the use of new media
outlets by Malaysians. The initiative is aimed at assisting
SKMM and the Government to achieve national interest
objectives such as promoting not just an online environment
with quality content, but also adept and responsible users
who are able to articulate the benefits of new media to
their advantage. This is part of the regulatory strategy
to encourage an industry that is self-regulated and to
engage civil society to regulate content themselves through
education and awareness so that they are empowered to
manage their relationship to content.
In late 2008, four grants were awarded. Universiti Utara
Malaysia received a grant to carry out research on the topic:
‘Ascertaining the influences of Weblogs and their User
Created Content in Blogosphere Community of Malaysia’.
University Sains Malaysia was tasked to research on ‘Young
People and New Media – Social Uses, Social Shaping and
Social Consequences’. Universiti Tunku Abdul Rahman
received a grant for their topic titled: ‘Social Impacts of
blogging on young adults: how it shapes individual opinions’
while Universiti Putra Malaysia will do research on ‘Selfregulatory
framework and mechanism in the Malaysian
media environment’
It is envisaged that the programme will produce findings
that could be used to develop sustainable practices and
policies for managing both the positive and negative aspects
of new media more effectively and for the long term. The
findings would contribute towards the basis for developing
strategies aimed at not only to promote greater levels of
media literacy among the public but to generate awareness
of the advantages and benefits of a media literate society.
The public will be able to have access to the findings of
the studies through seminars and publications of the SKMM.
In addition to this, the SKMM will conduct programmes
designed to raise awareness and educate segments of the
society beginning with schools within the Klang Valley.
Conclusion
Clearly, we will continue to face challenges and opportunities
in media and communications in the future and
we will have to be ready to face any emerging issues. The
collaboration with research institutions is an initiative that
will provide a means for SKMM not only to remain circumspect
of the regulatory issues surrounding content on media
of the times and to be forward-thinking in identifying future
issues for policy and regulation.
For more information about the Research Collaboration on
New Media Content between SKMM and Institutions of Higher
Learning, you may contact contentresearch@cmc.gov.my or visit
www.skmm.gov.my .
Mr. Amarjit Singh is a Senior Director, Licensing,
Enforcement, Regulation and Compliance Division, SKMM.
He can be reached at amarjit.singh@cmc.gov.my

Network
Security Portal:
Educating and raising awareness
on Internet security
Harme Mohamed, Director of
Security, Trust & Governance
Department expounds on the
latest project by the National
Security Centre.
0
Feature
Today, there are an estimated 1.7
billion Internet users globally,
and it is estimated that consumers
spent more than $2.8 billion on
online shopping worldwide in
2008. The Internet has shifted key financial
and personal information to the hands of
Internet users at home, as more and more
commerce are transacted online by this
group of Internet users – such data may now
be kept in personal computers or even mobile
phones instead of large data centres owned
by corporations. As a result, securing online
transactions has become more complex and
challenging – it is no longer sufficient to only
secure information contained in large data
centres, consumers at home also need similar
kind of protection.

According to a cyber security report released by
Symantec on September 2009 (http://bit.ly/46kCzF), nearly
10,512,000 identities are stolen every year, averaging one
identity theft every three seconds. The seriousness of the
situation becomes apparent when one compares this rate to
crime rates in some of the largest cities in the world. New
York City sees a crime once every three and a half minutes
and Tokyo, one crime in every two and a half minutes.
Cyber crime is highly profitable. In March 2009, US
telecommunications company, AT&T's chief security
officer, Edward Amoroso and a panel of security experts
told a US Senate Commerce Committee that revenues from
cyber crime are running up to USD1 trillion annually, even
exceeding drug-related crimes (http://bit.ly/9D303e).
While e-commerce in Malaysia has yet to see the level
of acceptance seen in the US or Europe, local Internet users
should not be oblivious to Internet threats. Today, Internet
users face Internet threats in the form of crimeware – malicious
software stealthily distributed by cybercriminals with
the purpose of secretly extracting information and gaining
money from Internet users. Crimeware may take the form
of viruses, worms, Trojans, Botnets or other malicious
programmes. In addition, cyber crime allows perpetrators
to hide behind the anonymity of the Internet, making it
difficult for law enforcers to prosecute them compared to
offline crimes.
It is therefore paramount that an Internet user, whether
using a personal computer or a mobile device, to know
what these threats can do and the ways to overcome them.
Hence, SKMM’s Network Security Portal was born.
SKMM Network Security Portal
To ensure that Malaysian Internet traffic is secure, SKMM
has established the SKMM Network Security Centre (SNSC)
that has a dedicated team to monitor Malaysian Internet
traffic for network threats in collaboration with Malaysian
ISPs. The SNSC serves as the national Internet network
thermometer to provide overall understanding of macro
cyber threat level with the involvement and cooperation of
both public and private sectors.
The SNSC security professionals monitor the ISPs’
networks 24 x 7, all year round, checking on any known
threats and anomalies. The threat monitoring will generate
early warning of massive attacks or malicious propagation.
This is to ensure continued protection of networks and ICT
systems of ISPs and other key organisations from security
infringements.
Started early 2009, the SKMM Network Security Portal
is designed to raise awareness and provide valuable network
security related information to home users, organisations
and service providers that use the Internet for their various
activities. The portal is divided into two main sections - one
section focuses on information for home users and organisations
and the other on information for service providers. The
Portal aims to be a one-stop centre to engage and empower
Internet users, by providing information on how to protect
themselves when they are on the Internet.
For example, it educates home users that their home
computers are a popular target due usually to lack of
security measures that have been put in place as compared
to computers in their workplace. The Portal lists several
simple ways home users can begin to protect their
computers. It stresses the importance of good online practices
such as using anti-virus software, not opening junk
emails, installing firewalls, creating strong passwords and
only downloading files from trusted sources.
As for the section for service providers, the information
is much more technical and in-depth. Here it is more
about sharing and providing relevant information to the
ISPs, for them to provide a secure Internet environment to
users. While ISPs also have their own monitoring systems,
the portal has distinct advantage because it compiles and
distributes information gathered from the real-time traffic
monitoring of ISPs in Malaysia. The portal provides significant
information that are relevant to service providers.
The portal also contains real time security alerts. These
alerts provide timely information about current security
issues regarding vulnerabilities, exploits and patches found
from various resources on the Internet. The security alerts
provide steps and actions to home and corporate users.
There are also statistics to show the network occurrence
for the last 24 hours. Data for the statistics is collected from
the SNSC. Statistics include the following:
Top 10 Attacks
This shows top 10 network attacks for the last 24 hours.
Internet traffic was scanned against SNSC's vulnerabilities
databases.
Top 10 Ports
This shows the top 10 TCP/UDP ports that had been targeted
by attackers.
Top 5 Countries
This shows top five countries' attackers targeting Malaysia's
network. Currently, sources of the majority of attacks are
local, followed by the United States, Republic of Korea,
China and United Kingdom.
The portal has also uploaded two advisories, one
regarding Nine-Ball and one about the Win32/Conficker.
B worm. It also has files for best practices from US-CERT
(United States Computer Readiness Emergency Team) and
NIST (National Institute of Standards and Technology).
Lastly, there are articles on cyber security tips on common
security issues for technical and non-technical computer
users.
SKMM Anti-Phishing Portal
Complementing the SKMM Network Security Portal, SKMM
has established the SKMM Anti-Phishing Portal in cooperation
with banking and financial institutions in Malaysia.
This Portal disseminates information related to Phishing
and Phishing activities in Malaysia.
1

Apart from network security threats, Malaysians are also
faced with Internet fraud or generally known as Phishing
- a fraudulent attempt, usually made through email, to
steal your personal information. Phishing emails usually
appear to come from a well-known organisation, requesting
for Internet users’ personal information such as credit card
number, account number, login names and password. Often
times Phishing emails/attempts appear to come from sites,
services and companies with which Internet users do not
even have an account.
In order for cybercriminals to successfully "Phish"
financial personal information, they must get users to go
from an email to a website. Phishing emails will almost
always tell users to click a link that takes them to a site
where their personal information is requested. Legitimate
organisations would never request this information
via email. In Malaysia, most Phishing attempts involve
Malaysian financial institutions. Emails sent usually cite
that the financial institutions were experiencing problems
with their computer systems and requests their Internet
clients to resubmit their personal information for verification
purposes.
The Anti-Phishing Portal aims to educate users on how
to detect Phishing attempts and protect themselves against
these type of threats. The portal lists several precautionary
steps to avoid getting phished. Internet users should never
respond to any emails that:
• Require users to enter their personal information directly
into the email or submit them online.
• Threaten to close or suspend users' accounts if they do
not respond.
• Claim that users account has been compromised or
that there has been fraudulent activity on the users'
account and requests the users to enter, validate or verify
account information.
• State that there are unauthorised charges on the users'
account and requests their account information.
2
The Network Security Portal team at work
• Claim that the bank has lost important security infor-
mation and needs users to update their information
online.
• Require users to enter their card number, password, user
ID or account numbers into an email, pop-up window or
non-secure webpage.
Phishing victims should file a report with SKMM. The
reports will be used to identify the owners of Phishing sites
and SKMM will act to take down the offensive sites by issuing
instructions to relevant parties. Swift action to take down
Phishing sites are crucial in preventing further damage to
Malaysian Internet users. SKMM will instruct the ISPs to
reroute the Phishing sites to SKMM’s Anti-Phishing Portal
to alert Internet users that they have visited a Phishing site.
On average, SKMM receives three to four phishing reports
every day. SKMM’s phishing portal also has examples on
how phishing websites look like, thus raising awareness
amongst Internet users.
Conclusion
The setting up of the National Security Centre coordinates
not only the Commission’s efforts towards securing the
nation’s information and network systems but will also
effectively coordinate with similar efforts in Malaysia. At
the same time, SKMM’s Network Security Portal aims to
heighten awareness of Internet security and be a one-stop
shop for Malaysians to get up-to-date information on
network security.
Harme Mohamed is Director,
Security and Trust & Governance Department, SKMM.
He can be reached at
harme@cmc.gov.my

Feature
Networked Content
Development Grant
Since its inception in 2007,
SKMM’s Networked Content
Development Grant gains
momentum to push the
industry to greater heights.
Roslan Mohamad shares
some success stories.
network
interactive
3G
mobile tv
NCDG:
Spurring the Malaysian Creative
Industry
There is a growing awareness that digital
content plays an important role in our
aim to build a sustainable knowledgebased
economy. After a five-year
slump, the industry is steadily making
a comeback. The revival of the content industry
can be directly attributed to the measures taken
by the Government to spur the development of
the local content industry.
Much of the efforts have focused on providing funding
and start-up supports to creative entrepreneurs. A multi
agency effort is in place with grants and funding programmes
run by Government related agencies such as SKMM, MDeC,
FINAS, Cradle and so on.
SKMM promotes its creative content development
activities through the Networked Content Development
Grant (NCDG). According to a report from the Multimedia
3

Development Corporation (MDeC), by 2010 the digital
content industry is poised to reap RM1.14 billion and that
roughly translates to about USD326 million. Content export
alone will be worth RM660 million (USD188 million). This
digital content includes among others broadcast content,
mobile content, online content and advertising content.
Digital content can be in the form of animation, games,
training and education module, documentary, film, music
video, entertainment, simulation etc (source: http://www.
scribd.com/doc/17463966/Updates-on-the-MSC-Malaysia-
Digital-Content-Industry).
The report also stated that we should expect 13,100
jobs to be created from the healthy growth of the industry.
This projection falls nicely into the Government's plans as
outlined in the ICT Chapter of the 9th Malaysian Plan and
the MyICMS 886 strategy.
In the ICT Chapter of the 9th Malaysian Plan, the
Government emphasised the urgent need to produce
“Malaysian content” for Malaysia and the world, and for
Malaysia to be positioned as a hub for content creation,
production, broadcasting and outsourcing activities.
The MyICMS 886 strategy, the blueprint for the
communications and multimedia industry, has identified
content development as one of the growth areas in the next
five years.
The expected results from the MyICMS 886 strategy are,
among others to have adequate local content, reflecting
the culture and values of the nation digitally available
and accessible for the various application requirements. It
also expects that content will be a sizeable export revenue
contribution for Malaysia.
Indicating the industry’s importance, in the Malaysian
Budget for 2010, the Prime Minister Datuk Seri Najib Tun
Razak announced that the Government was going to
allocate RM200 million to establish a Creative Industry
Fund for the development of local content.
The Creative Industry Fund is going to be a comprehensive
policy, including a RM3 million welfare fund for artistes and
actors. These incentives are not limited to performing arts
and music, but include design, animation, advertisement
and content development. On a separate occasion, the
Prime Minister also said that the target set for a number of
multimedia content companies operating in MSC Malaysia
would be revisited at the forthcoming International Advisory
Panel (IAP) meeting to accelerate the industry further.
NCDG
As one of the initiatives to realise the content development
agenda envisaged by the National Policy Objectives of the
Communications and Multimedia Act (CMA) 1998, the 9th
Malaysian Plan, and MyICMS 886, the Networked Content
Development Grant was established in 2007 with an initial
allocation of RM20 million.
The term “networked content” for the purpose of the
NCDG is “all text, audio, audio-text, still pictures, moving
pictures and software that is accessible over publicly
accessible electronic networks which includes broadcasting
(TV), moving pictures (exclude cinema distribution and
VCD/DVD sales), online content, mobile/wireless data
services (3G, Mobile TV etc) and interactive digital TV and
other content which can be created, manipulated, stored,
retrieved and communicated through the use of a network
facilities and services”.
For the purpose of the NCDG, the focus areas for
development are Mobile Content (for 2.5G and 3G) and TV
Content. The types of content that are being considered for
funding are:
• Information based content – content created based on
information such as tourist attraction locations, nearest
hotels with ratings and prices and the like.
• Entertainment – content created for entertainment such
as multiplayer gaming, folklore music and jokes, funny
video clips and the like.
• E-commerce – transactional based content such as
m-shopping, interactive advertising and the like.
• Education – content utilised for educational purpose such
as quick notes and formulas; interactive education
content and the like.

In 2009, the size of the scheme was increased to RM50
million to introduce a new programme called NCDG
Campus Scheme.
Under the NCDG Campus Scheme, 10 public and 10
private higher institutes of learning (IHL) are selected to
be nurtured for creative talents. Each IHL will be given an
annual grant of RM150,000 to fund content development
projects undertaken by students. The aim is to reduce the
skills gap among fresh graduates by allowing students to
acquire more resources to produce better content when
doing their academic projects.
Challenges faced
Traditionally, the creative industry is seen as high-risk due
to uncertain returns-on-investments. Hence, procuring
funding is difficult and is one of the biggest challenges faced
by entrepreneurs venturing into this area.
In conventional financial practice, funding normally
requires collaterals or properties to insulate the lender from
losses. Most content developers only have their creativity
and skills to produce a content which can be registered as
an intellectual property (IP). Unfortunately, conventional
banking principles do not recognise creativity, talents
and even IP as convincing collaterals. Hence, getting a
commercial funding assistance from conventional banks is
almost like a 'mission impossible'.
Under these difficult circumstances, Government grants
like the NCDG and venture capital investments become the
lifelines for the local content industry.
Insufficient funding and capital also impairs the ability
of local players to expand their market scale in order to
yield good returns from their content. In many cases, an
adequate return on investment may only be realised if
the content finds buyers in multiple markets. Established
global contents are considerably cheaper than local content
because their market scale is already sufficient to generate
lucrative returns. The market scale affects the acquisition
costs in the local scene which becomes another challenge to
the local players.
The cost of buying local content is generally ten times
higher than foreign content. For example, a local TV station
may acquire a half-hour episode of a popular cartoon
like Doraemon or Crayon Sin Chan for around USD1,000
(RM3,700), while the asking price for an episode of a new
local animation series may be as high as RM40,000. The real
issue here is market scale without which local animation
companies have no choice but to ask for a high price from
local broadcasters in order to sustain their operation. By
expanding the market scale, local animators would have
more avenues to gain revenue which then may lead to the
production of more local content.
However, getting into the global buyer circuit costs a
considerable amount of money to carry out promotions and
advertising which many new content developers might not
have. Without a proper marketing strategy and sufficient
funding, it would be difficult to penetrate and promote our
local content to other potential markets.
Success stories
To date, the NCDG has eight approved projects. Through
this grant as well as the marketing and business support
that the Government agencies provide, these grantees
should be able to achieve global success. Among them are
Inspidea Sdn Bhd, Firdaus Maju Sdn Bhd, Murasu Systems
Sdn Bhd, Just Mobile, Billadam and Trinity Wizard.
Inspidea Sdn Bhd
They are the producers and creators of an animated
series known as Mustang Mama Die Hard Sports Fan.
The series is currently distributed locally and in Japan,
Russia, Canada and Italy. During the Olympics, Yahoo
bought the licensing rights to showcase Mustang Mama
on their online portal.
Firdaus Maju Sdn Bhd
This company produced a six-episode documentary
called Alexander Bukan Zulkarnain. Firdaus Maju was
successful in getting Astro Oasis to broadcast the content
in January 2009 and more recently Celcom offered short
clips of the series on its 3G services. In addition to that,
they came up with a book on the same subject.
Murasu Systems Sdn Bhd
Mobile applications creator, Murasu Systems has
developed an application for Jawi messaging called
Mobile Jawi. This is a Java application that allows users
to compose text in Jawi and send it to their friends. It is
currently available on Maxis, DiGi and Celcom. They also
have a version for the iPhone. This company is also working
with another company to introduce the application in
different languages.
Just Mobile
Another mobile related content developer, Just Mobile
produces mobile games. Subscribers can upload their
scores on TV while playing. The company is working with
Media Prima and has launched the UPlayUWin game on
local channel, 8TV.

Billadam
Billadam gets the grant to develop animated mobile
greeting cards. Billadam launched MobiGreets in three
different languages with customisation features. These
animated greeting cards are available from local telcos.
They also have P. Ramlee On Mobile video greeting cards
which are based on classic P. Ramlee comedies. P Ramlee
is a legendary local actor.
Trinity Wizard
This company introduced its version of Mobile Pets
(Mopetz) where users can feed, take care and interact
virtually with the pets. Trinity Wizards launched this
service with Maxis. Thus far they have five Mopetz
characters available for adoption with more being planned.
The company has also seen keen interest from foreign
telcos and it is in discussions with service providers in
Thailand and Indonesia to bring Mopetz there. Trinity
Wizards was named Malaysia’s Best Mobility Content
& Applications Company at the inOvation Malaysia
Awards handed out recently at the Mobile World Star
Awards & Gala Dinner 2009 organised in conjunction
with GoMobile 2009.
Current efforts
Apart from seeding creative companies and individuals,
SKMM, FINAS and MDeC also jointly sponsor pavilions at
international content trade fairs such as in Cannes, Middle
East, Hong Kong and so on, allowing those with ready-tomarket
content to be highlighted to potential global buyers.
These market access plans carried out by SKMM, FINAS
and MDeC are vital for our local creative industry because
the Government absorbs most of the cost to provide the
exhibition space and even offer subsidies on the marketing
costs.
Interested parties only need to liaise with the agencies
to confirm attendance and foot the bill for flight and
accommodation. There are a lot of advantages to binding
local content providers together. Aside from keeping
overheads low, Malaysia can be well-represented under
one SKMM-FINAS-MDeC pavilion which will make a
bigger impact than a single exhibitor fighting to be seen
in a crowded marketplace. To date they have participated
in exhibitions held in 3GSM World Congress (Barcelona),
HK Filmart, Locations Trade Show (LA), MIPTV, Mobile
Entertainment Forum (UK), SICAF, Seoul Character Fair,
MIPCOM, BIFFCOM (Busan), Thailand Entertainment
Expo, TIFFCOM, Character Dubai and ATF.
The Government is also committed to providing
infrastructure, expertise and encouragement for content
developers to get access to opportunities. There are also
tax incentives for the private sector involved in the creative
industry.
network
interactive
3G
Roslan Mohamad is Director,
Content and Industry Development Department, SKMM.
He can be reached at roslan@cmc.gov.my
mobile tv

Number of Hotspots Location
Broadband Subscriptions
(million)
Broadband Meter – Subscribers and Users
3000
2500
2000
1500
1000
500
3
2.5
2
1.5
1
0.5
0
10.9
0.8
2007 2002
52 50
IDI provides an indication of the availability of ICT
infrastructure and individual access to basic ICT.
Source: International Telecommunication Union (ITU)
Malaysia Broadband Snapshots
Broadband Subscriptions and Penetration Rate by Household
Number of Broadband Subscriptions
Penetration Rate by Household (%)
15.2
1.1
2006 2007 2008 2009
21.1
1.70
Percentage of Broadband Subscriptions by Technology, 2009 (’000)
Number of Hotspots Location and Growth
Rank Country
1
2
3
4
5
44
0
1358
10.7
ADSL
57.8%
Hotspots Location
Growth by Year
1485
9.4
31.5
1953
2006 2007 2008 2009
Global Household Broadband
Penetration Ranking (2008)
South Korea
Singapore
Netherlands
Denmark
Taiwan
Malaysia
Source: Strategy Analytics
SDSL 0.4%
Household
Broadband
Penetration
( % )
95
88
85
82
81
21
ICT Development Index (IDI)
HSDPA
(Mobile)
35.4%
Others
6.2%
Malaysia Broadband
45.7
2846
Satellite 0.2%
50
40
30
20
10
0
Growth ( % )
2006
2007
2008
2009
Number of Subscriptions (’000)
ADSL
735.9
1,002.4
1,284.8
1,513.5
1000
800
600
400
200
Financial Activities
0
SDSL Satellite
4.8
6.5
7.9
10.2
1.9
2.0
4.9
5.3
31.7
2.60
HSDPA
(Mobile)
4.5
96.3
386.3
927.8
HSPA (Mobile) Subscriptions
4.5
96.3
386.3
2006 2007 2008
Malaysia: Activity on the Internet
Leisure
Education
Communication by Text
Getting Information
31.8
63.5
64.5
35
30
25
20
15
10
5
0
Penetration Rate by Household
( % )
Others
(Fixed &
Wireless
Broadband)
8.6
9.1
34.2
163.5
84.7
927.8
2009
0 20 40 60 80 100
94.4
Percentage Share of Household User Base ( % )

Together
Working Towards A
Broadband Connected
Suruhanjaya Komunikasi dan Multimedia Malaysia
Malaysian Communications and Multimedia Commission