Suruhanjaya Komunikasi dan Multimedia Malaysia Malaysian Communications and Multimedia Commission 2009 ANNUAL REPOrt: BROADbaND TOWarDS 1MALAYSIA Suruhanjaya Komunikasi dan Multimedia Malaysia Malaysian Communications and Multimedia Commission Broadband Towards 1Malaysia Off Persiaran Multimedia, 63000 Cyberjaya, Selangor, MALAYSIA Tel: +6 03 86 88 80 00 Fax: +6 03 86 88 10 00 Email: [email protected] www.skmm.gov.my 1 800 888 030 Statutory Requirement High speed broadband is a key In accordance with Section 47 of the Malaysian Communications and Multimedia Commission Act 1998, the enabler to transform Malaysia Malaysian Communications and Multimedia Commission hereby publishes a report that entails the activities of the Commission and has submitted it to the Minister of as a middle-income nation to a Information Communication and Culture together with a copy of its Audited Financial Statements of the Malaysian Communications and Multimedia Commission Fund for the high-income nation. It will make Year Ended 31 December 2009 to be laid before both Houses of Parliament. Malaysia a 21st century nation. Yang Amat Berhormat Dato’ Sri Mohd Najib Bin Tun Haji Abdul Razak Prime Minister of Malaysia Broadband Towards 1Malaysia The bunga raya with fibre optics radiating upwards heralds an exciting new era – the birth and the proliferation of high speed broadband in Malaysia. Broadband is required for advanced and bandwidth services such as digital homes, medical imaging and multi-channel high-definition TV applications and services. We are already well under way to ‘broadband’ the nation so that its rakyat can enjoy the benefits and uplift their lives through the use of broadband and communication technologies. Together we are building and creating a 1Malaysia nation with broadband. National Policy Objectives Vision We shall endeavour to fulfill the 10 National Policy Objectives for the communications and multimedia industry as enunciated in the Communications and Multimedia Act 1998: To become a globally competitive, efficient and increasingly 1 2 3 4 5 self-regulating communications To establish Malaysia To promote a civil To grow and nurture To regulate for the To promote a high as a major global society where local information long-term benefit of level of consumer and multimedia industry generating Core Values centre and hub for information-based resources and cultural the end-user confidence in service • Authoritativeness communications and services will provide representation that delivery from the growth to meet the economic and • Integrity multimedia information the basis of continuing facilitate the national industry and content services enhancement to quality identity and global social needs of Malaysia. • Competence of work and life diversity 6 7 8 9 10 Mission To ensure an equitable To create a robust To facilitate the efficient To promote the To ensure information provision of affordable application environment allocation of resources development of security and network We are committed to: services over for end users such as skilled labour, capabilities and skills reliability and integrity • Promoting access to communications and multimedia services; ubiquitous national capital, knowledge and within Malaysia’s infrastructure national assets convergence • Ensuring consumers enjoy choice and a satisfactory level of industries services at affordable prices; • Providing transparent regulatory processes to facilitate fair competition and efficiency in the industry; • Ensuring best use of spectrum and number resources; and • Consulting regularly with consumers and service providers and facilitating industry collaboration. Contents Clients’ Charter Our undertaking to our clients are: General Consumers • Recording all complaints received • Acknowledgement to complainant within three working days 002 Foreword by the Minister • Forward complaint received to relevant service provider within five working days 004 Chairman’s Message • Follow-up on status of complaint from service provider after 15 days 014 Commission Members 024 Executive Committee Assignment Applicants 028 Statistics on Communications & Multimedia Apparatus Assignment (AA) • 60 days to process the AA application subject to the Licence Committee meeting, border co-ordination by FACSMAB, JTC 030 Feature Article: Broadband Explained – What is Broadband? and Trilateral (Malaysia, Singapore and Indonesia) meetings and approvals 032 MyICMS Number Assignment 056 Feature Article: Malaysia’s Drive For High Speed Broadband • 30 days to process normal assignment applications e.g. PSTN Numbering Application 060 Licencing, Economic Regulation and Compliance • 45 days to process special assignments e.g. mobile, short codes 070 Postal Services 076 Universal Service Provision Licence Applicants 084 Research and Planning • 45 days from receipt of complete application to process NFP, NSP and CASP licence applications and to recommend to 099 Feature Article: Malaysia Broadband: Leverage for National Growth the Minister for approval 104 Resource Assignment and Management • 30 days from receipt of complete submission to process NFP and NSP class licence registrations • 15 days from receipt of complete submission to process ASP class licence registration 132 Technology, Standards and Network 140 Monitoring and Enforcement 156 Human Capital Management and Strategic Information System Licensees 162 International Affairs • Promote fair competition and market development through transparent regulatory processes as outlined in the CMA 1998 • Provide resolutions to disputes when necessary 168 Corporate Highlights • Promote effective regulation by monitoring all significant matters relating to the performance of its licensees and reporting 174 Governance and Audited Financial Statements to the Minister at the end of each financial year • Review the Rules & Regulation every three years or as and when directed by the Minister. This is to ensure that the Rules & Regulation remain relevant 1 Foreword by the Minister In the path towards transforming the nation into a high-value and developed nation, the communications and multimedia industry will indeed play an important role in many ways. The communications and multimedia industry not only contributes to the nation’s socio-economic growth but also to its cultural development as well. Broadband is recognised as a catalyst in the drive towards transformation. We have embarked on an aggressive programme to provide broadband services to the people and accelerate the broadband penetration rate in this country. The 1Malaysia Netbook distribution to qualified students and families and the ‘Kampung WiFi’ are two of the more outstanding initiatives of the broadband programme. SKMM has been entrusted with the responsibility of implementing the National Broadband Plan and ensuring that the people receive adequate access to communication and broadband services at affordable prices and as an industry regulator, it functions in a transparent manner while facilitating fair competition and efficiency amongst the industry players. I envision that no one will be left out in the drive towards the nation’s transformation. Malaysians are now more exposed to the various media platforms than before. As the authority and custodian of the Communications and Multimedia Act 1998, Postal Services Act 2001 and Digital Signature Act 1997, the Commission’s functions and responsibility are increasingly becoming more apparent and significant. This Report presents the Commision’s achievements and activities, signifying various aspects of its governance and functions. I have every confidence that the Commission will continue its sterling performance with the support and participation of everyone involved. DATO’ SERI UTAMA DR RAIS YATIM Minister of Information Communications and Culture 2 3 Chairman’s Message Changing Dynamics With the new leadership in Government, came the Prime Minister’s vision Broadband Initiatives. These initiatives included the 1Malaysia Netbook of 1Malaysia that is encapsulated in the Government Transformation programme, reintroduction of the Information Department regional offices 2009 saw many changes that affected the Malaysian Programme (GTP) for the Government and a focus on 6 National Key into Mini Community Broadband Centres, the Broadband Awareness and Communications and Multimedia Commission, the industry at large Results Area (NKRA) in which the Key Performance Indicator (KPI) of Promotion Campaign and construction of new telecommunication towers Government agencies is expected to play an essential role in improving and infrastructure across the country to add to existing ones. and the Malaysian economy. 2009 also brought changes to the the effectiveness of the Malaysian Government. The NKRAs include nation’s leadership governance and the political climate. With the crime prevention, reducing corruption, increased access to quality The NBI initiatives brought about fresh impetus towards the basic tenets changes in leadership, the Commission came under the guidance education, improvements in the standard of living for low income groups, of Bridging the Digital Divide in Malaysia; together with the on-going enhancements to rural infrastructures and improvements to public Universal Service Provision programme, it enabled the ‘rakyat’ to leap- of the Minister of Information, Communications and Culture and a transportation – areas which communication and multimedia had an frog en masse in the race towards being a developed country. These newly appointed