PUBLIC INQUIRY REPORT Review of Access List and Mandatory
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PUBLIC INQUIRY REPORT Review of Access List and Mandatory Standard on Access 21 December 2008 This Public Inquiry Report was prepared in fulfilment of Sections 55(2), 55(4), 59, 61 and 65 of the Communications and Multimedia Act 1998. CONTENTS 1. INTRODUCTION 1 1.1 Public inquiry process 1 1.2 SKMM’s legislative obligations 2 1.3 Consultation process 3 1.4 Submissions Received 3 1.5 Structure of this PI Report 5 2. LEGISLATIVE CONTEXT 7 2.1 Overview 7 2.2 Comments received 8 2.3 SKMM’s response to comments 9 3. ACCESS REGULATION AND THE SKMM’S METHODOLOGY 17 3.1 Overview 17 3.2 Comments received 17 3.3 SKMM final view 20 4. RELEVANT MARKETS AND STATE OF COMPETITION 22 4.1 Overview 22 4.2 Comments received 22 4.3 SKMM final view 24 5. FIXED TELEPHONY 26 5.1 Overview 26 5.2 Summary of submissions received 26 5.3 State of competition 26 5.4 Existing Access List Services 33 5.5 Potential Access List amendments 45 6. MOBILE TELEPHONY 56 6.1 Overview 56 6.2 Summary of submissions received 56 Page i 6.3 State of competition 56 6.4 Existing Access List Facilities and Services 58 6.5 Potential Access List amendments 76 7. UPSTREAM NETWORK ELEMENTS 84 7.1 Overview 84 7.2 Summary of submissions received 84 7.3 State of competition 84 7.4 Existing Access List Facilities and Services 86 7.5 Potential Access List amendments 87 8. INTERCONNECTION 92 8.1 Overview 92 8.2 Existing Access List Facilities and Services 92 9. LEASED LINES 102 9.1 Overview 102 9.2 Summary of submissions received 102 9.3 State of competition 103 9.4 Existing Access List Facilities and Services 105 10. BROADCASTING TRANSMISSION 111 10.1 Overview 111 10.2 Summary of submissions received 111 10.3 State of competition 112 10.4 Existing Access List Facilities and Services 113 11. EXISTING BROADBAND SERVICES 120 11.1 Overview 120 11.2 Summary of submissions received 120 11.3 State of competition 121 11.4 Existing Access List Facilities and Services 124 11.5 Potential facilities and services on the Access List 132 Page ii 12. REGULATION OF HIGH SPEED BROADBAND SERVICES 134 12.1 Overview 134 12.2 Summary of submissions received 135 12.3 NGN technology and importance for Malaysia 137 12.4 Regulation of high speed broadband services 142 12.5 Elements and definition of regulated high speed broadband services 153 12.6 Regulation of ANE and existing broadband services in a high speed broadband environment 162 13. REGULATION OF WIRELESS BROADBAND SERVICES 175 13.1 Overview 175 13.2 Summary of submissions received 175 13.3 Market definition 175 13.4 Access issues and regulatory options 179 14. ACCESS LIST RATIONALISATION 182 14.1 Overview 182 14.2 Comments received 182 14.3 SKMM final view 184 14.4 Network Origination Service and Network Termination Service 184 14.5 Transmission Service 186 15. MANDATORY STANDARD ON ACCESS 189 15.1 Overview 189 15.2 Comments received 189 15.3 SKMM final view 192 15.4 SKMM final view 194 15.5 Comments on specific provisions 194 15.6 Ordering and provisioning obligations (subsection 5.7) 199 15.7 Billing and settlement obligations (subsection 5.14) 201 15.8 Technical obligations (subsection 5.16) 205 Page iii 15.9 Digital Terrestrial Broadcasting (DTB) Multiplexing Service (subsection 5.23) 206 15.10 Conclusion – Mandatory Standard on Access 208 16. CONCLUSION 213 Page iv ABBREVIATIONS AND GLOSSARY ACCC Australian Competition and Consumer Commission Access Agreement An agreement entered into between licensees whereby the Access Provider provides access to an Access Seeker in accordance with the terms contained in such an agreement and which is to be registered with the SKMM in accordance with the CMA. Access List The list of facilities and services determined by the SKMM under Chapter 3 of Part VI of the CMA, in respect of which the Standard Access Obligations apply. Access Provider In relation to the Access List is: (a) a network facilities provider who owns or operates facilities on the Access List; and/or (b) a network service provider who provides services on the Access List; and (c) includes a holder of a registered licence under section 278 of the CMA; and in relation to the MS (Access) is: (a) a network facilities provider who owns or operates facilities on the Access List; or (b) a network service provider who provides services on the Access List; and (c) who is a licensee as defined in the CMA. Access Seeker A network facilities provider, a network service provider, an applications service provider, or a content applications service provider who is a licensee as defined in the CMA and who makes a written request for access to network facilities or network services on the Access List. ADSL Asymmetric Digital Subscriber Line ANE Access to Network Elements APCN2 Asia Pacific Cable Network 2 submarine cable system ARD Access Reference Document, which is a document of the terms and conditions required to be formulated by an Access Provider under the MS (Access). ARPU Average Revenue Per User ASP Applications Service Provider BBGP Broadband for General Population BRI Basic Rate Interface CAS Common Antenna System CASP Content Applications Service Provider Celcom Celcom (Malaysia) Berhad CIIP Common Integrated Infrastructure Provider CMA Communications and Multimedia Act 1998 Page v Commission Act Malaysian Communications and Multimedia Commission Act 1998 CSU Cost Sharing Units DBP Detailed Business Plan DEL Direct Exchange Line DiGi DiGi Telecommunications Sdn. Bhd. DSLAM Digital Subscriber Line Access Multiplexer DTT Digital Terrestrial Television DTTB Digital Terrestrial Television Broadcasting DVB-T Digital Video Broadcasting – Terrestrial DWDM Dense Wavelength Division Multiplexing EC European Commission EU European Union ERG European Regulators Group EDGE Enhanced Data-Rates for GSM Evolution EDTV Enhanced Digital Television ETSI European Telecommunication Standards Institute FCC Federal Communications Commission of the United States of America Fiberail Fiberail Sdn. Bhd. Fibrecomm Fibrecomm Network (M) Sdn. Bhd. GPON Gigabit Ethernet PON HDTV Higher Definition Television HSBB network High Speed Broadband network to be deployed by TM pursuant to the agreement with the Government of Malaysia dated 16 September 2008 HSDPA High Speed Downlink Packet Access IP Internet Protocol IPTV Internet Protocol Television IP-VPN Internet Protocol – Virtual Private Network IRU Indefeasible Right of Use ISDN Integrated Services Digital Network ISP Internet Service Provider Jaring Jaring Communications Sdn. Bhd. Licensing Communications and Multimedia (Licensing) Regulations 2000 Regulations LLU Local Loop Unbundling LTBE Long-term benefit of end users MAFB Malaysian Access Forum Berhad (the Access Forum, designated by the SKMM as such under section 152 of the CMA) Page vi Maxis Maxis Communications Berhad MDF Main Distribution Frame Ministerial Direction Ministerial Direction on High-Speed Broadband and Access List, on HSBB and Access Direction No. 1 of 2008 List Ministerial Direction Ministerial Direction to Determine a Mandatory Standard on Access, on MS (Access) Direction No. 2 of 2003 Ministerial Direction Ministerial Direction on Number Portability, Direction No. 2 of 2004 on Number Portability MNP Mobile Number Portability MSAN Multi-service access node MS (Access) Commis sion Determination on the Mandatory Standard on Access, Determination No. 2 of 2005 MS (Pricing) Commission Determination on the Mandatory Standard on Access Pricing, Determination No. 1 of 2006 MVNO Mobile Virtual Network Operator MyICMS 886 Malaysia’s strategy for Information, Communications and Multimedia services from 2006 to 2010 MyIX Malaysian Internet Exchange NEAP Numbering and Electronic Addressing Plan NGA Next Generation Access NGN Next Generation Network NFP Network Facilities Provider NPOs The National Policy Objectives for Malaysia’s communications and multimedia industry, as set out in section 3(2) of the CMA NSP Network Service Provider OECD Organisation for Economic Co-operation and Development OSA One Stop Agencies PI Paper The Public Inquiry Paper entitled Review of Access List and Mandatory Standard on Access issued by SKMM, dated 25 September 2008 PI on Access List in The Public Inquiry held on the Access List from February to June 2005 2005. See PI Paper on Access List, PI Report on Access List, Access List, MS (Access) and Guidelines on Implementation of ANE. PI on Dominance in The Public Inquiry held on Dominance held from August to 2004 December 2004. See PI Paper on Dominance, PI Report on Dominance and Commission Determination on Dominant Position in a Communications Market, Determination No. 2 of 2004. PI on MNP in 2005 The Public Inquiry held on MNP from September to December 2005. See PI Paper on MNP and PI Report on MNP. PI Paper on Access Public Inquiry Paper: Review and Expansion of Access List List Determination (8 February 2005) Page vii PI Paper on Public Inquiry Paper: Assessment of Dominance in Communications Dominance Markets (August 2004) PI Paper on MNP Public Inquiry Paper: Implementation of MNP in Malaysia (1 September 2005) PI Report This Public Inquiry Report PI Report on Access A Report on a Public Inquiry: Review and Expansion of Access List List in 2005 Determination (27 May 2005) POA Point of Access POI Point of Interconnection PON Passive Optical Network PPP Purchasing Power Parity pre-PI process SKMM’s initial consultations with stakeholders which have contributed to this Public Inquiry Paper PRI-ISDN Primary Rate Interface ISDN PSTN Public Switched Telephone Network QoS Quality of Service SBC State-backed Company SDSL Symmetric Digital Subscriber Line SDTV Standard Digital Television SEA-ME-WE3 South East Asia Middle East Western Europe 3 submarine cable system SKMM Malaysian Communications and Multimedia Commission SLA Service Level Agreement SMP Significant Market Power SMS Short Messaging Service SS7 Signalling System Number 7 TIME TT dotCom Sdn.