Malaysia’s need for speed: How regulatory action is unleashing ultrafast Internet

Must Read

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...

Owo Arugbo: Ekiti Begins N20,000 Payment To The Elderly As Monthly Stipend For Social Security Scheme

Ekiti State Governor, Dr Kayode Fayemi on Wednesday re-launched the social security Scheme for elderly citizens in the state with,...

PZ Cussons commences entries for Cussons Baby Moments’ 6th season

PZ Cussons has announced the commencement of entries of the 6th season of its eponymous baby competition in Nigeria tagged...
- Advertisement -
- Advertisement -

In Malaysia, regulatory reforms are beginning to shape the trajectory of the digital economy to unleash ultrafast internet. The result has been beneficial to Malaysians, especially within the confines of a market with low adoption of fibre internet services in the past decade, compared to its regional peers. But now things are changing. The country’s broadband market is rapidly moving to become more accessible, with increased competition and better quality services – which could potentially expand the digital economy to provide the benefits of economic growth, job creation and social inclusion.

Last year, the country saw a major undertaking of regulatory reforms, leading to a drop in prices of fixed broadband services and triggering a shift in consumer demand for faster Internet. This is important as recent World Bank analysis found that Malaysia’s lag in Internet speed was partly due to limited competition in the broadband market – marked by the dominance of one company holding a 90% market share as of December 2017. At that time, Malaysia had the most concentrated fixed broadband market in all of Asia Pacific for a country with a population larger than one million. Limited competition and difficulties in network deployment constrained alternative internet service providers (ISPs) from rolling out networks or offering services on competitive terms.

Read:  SON DG COMMEND CONSUMER FOR REPORTING PRESERVATION OF BEANS WITH PESTICIDE

A key reform to address this has been the introduction of the Mandatory Standard on Access Pricing (MSAP) by the country’s telecommunications regulator, the Malaysian Communications and Media Communication (MCMC). The MSAP regulates the prices and terms for alternative ISPs to access the incumbent’s wholesale broadband capacity. Similar measures have had positive impacts on broadband markets in other parts of the world, allowing alternative ISPs to offer lower-priced and higher quality services to their subscribers.

Fixed broadband connection quality, including fibre internet services, rapidly responded to these regulatory changes. Within three months of the reform in 2018, many local service providers announced new broadband subscription plans with faster speeds at lower prices. The impact was evident for what is globally becoming the norm for basic broadband services (30 Mbps services), with average prices for those plans falling by over 30% in 2018. Notably, the average price of plans for speeds in excess of 1 Gbps (the emerging speed target for high-income economies) fell by 40%. Price drops were seen across all plan types.

Read:  MTN loses 714,000 internet subscribers

As a result, Malaysian subscribers have begun the switch to broadband plans with faster speed. Data from MCMC shows that the number of fixed-broadband subscriptions with download speeds of more than 100 Mbps grew by a factor of eight to 1.2 million subscribers by the end of 2018.

Read:  HOW TO WIPE YOUR WORK OFF A BORROWED COMPUTER

After these reforms, we see that Malaysia is now starting to close the gap in internet speed with leading countries. In December 2017, the average speed of fixed broadband services in the five countries with the fastest connections in the world was over six times faster than the average speed in Malaysia. By March 2019, this had narrowed to just over two times. Looking at the bigger picture, Malaysia’s average fixed broadband speeds have trebled in the span of a year (see Table).

Malaysia’s experience shows that policy reforms can have an immense impact on market outcomes in a short space of time, as recent events have proven. The implementation of regulations that boosted competition has had positive effects on subscriptions and affordability. This demonstrates the potential gains from regulatory reforms and the demand for high quality and affordable internet services. Regulatory reforms are a first, but critical, step in a long journey to providing all Malaysians with access to ultrafast and affordable broadband services that will position local businesses and the economy for growth in an increasingly digital world.

- Advertisement -

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

Ensurity Technologies joins the Microsoft Intelligent Security Association

HYDERABAD, INDIA - Media OutReach - 17 October 2019 - Ensurity Technologies, Hyderabad, India-based cybersecurity company, is pleased to announce that it has joined the...

Sunlight Real Estate Investment Trust ("Sunlight REIT") Operational Statistics for the Quarter Ended 30 September 2019

HONG KONG, CHINA - Media OutReach - 17 October 2019 - Henderson Sunlight Asset Management Limited (the " Manager"), as manager of Sunlight Real Estate Investment Trust...

FG mulls new tax on Coke, Bigi, other soft drinks

Zainab Ahmed, the minister of finance, says the federal government is considering introducing excise duty on carbonated drinks. The minister made this known while addressing...

“Best Global Brands 2019” – Mercedes-Benz is once again the world’s most valuable luxury car brand

Mercedes-Benz further increased its brand value and is once again the world's most valuable luxury automotive brand. In the latest "Best Global Brands 2019"...

More Articles Like This