141590 new NBP 14-8b6 14/8/06 11:50 AM Page b

CONTENTS

1. Introduction and Background on the National

Broadband Plan 4

2. MyICMS 886 and the need to deliver High Speed

Broadband to the masses - new targets to achieve 5

3. Rationale of the NBP 7

The Broad Challenge for Malaysia
Quantification of Malaysia’s broadband ambitions

4. Strategies of the NBP 12

Public sector initiatives
Policies and Regulatory initiatives
Plans for the Private sector

5. Role of the NBP Secretariat in rolling outbroadband 20

6. Establishment of Broadband Stakeholders

Groups (BSGs) 21

7. Ninth Malaysia Plan (RMK9) and next generation

broadband infrastructure 23
SECOND EDITION, August 2006.
8. Summary - A look into the future world of
Kementerian Tenaga, Air dan Komunikasi Malaysian digital cities and ubiquitous societies 25
Ministry of Energy, Water and Communications
Block E4/5 Parcel E, Federal Government Administration Centre
9. Appendixes 27
62668 Putrajaya, Malaysia.
http://www.ktak.gov.my

Suruhanjaya Komunikasi dan Multimedia Malaysia

Malaysian Communications and Multimedia Commission
63000 Cyberjaya, Selangor Darul Ehsan, Malaysia.
Tel: 6 03 - 8688 8000 Fax: 6 03 - 8688 1000
Toll Free Numbers: 1-800-888030 http://www.mcmc.gov.my

1
141590 new NBP 14-8b6 14/8/06 11:50 AM Page b

CONTENTS

1. Introduction and Background on the National

Broadband Plan 4

2. MyICMS 886 and the need to deliver High Speed

Broadband to the masses - new targets to achieve 5

3. Rationale of the NBP 7

The Broad Challenge for Malaysia
Quantification of Malaysia’s broadband ambitions

4. Strategies of the NBP 12

Public sector initiatives
Policies and Regulatory initiatives
Plans for the Private sector

5. Role of the NBP Secretariat in rolling outbroadband 20

6. Establishment of Broadband Stakeholders

Groups (BSGs) 21

7. Ninth Malaysia Plan (RMK9) and next generation

broadband infrastructure 23
SECOND EDITION, August 2006.
8. Summary - A look into the future world of
Kementerian Tenaga, Air dan Komunikasi Malaysian digital cities and ubiquitous societies 25
Ministry of Energy, Water and Communications
Block E4/5 Parcel E, Federal Government Administration Centre
9. Appendixes 27
62668 Putrajaya, Malaysia.
http://www.ktak.gov.my

Suruhanjaya Komunikasi dan Multimedia Malaysia

Malaysian Communications and Multimedia Commission
63000 Cyberjaya, Selangor Darul Ehsan, Malaysia.
Tel: 6 03 - 8688 8000 Fax: 6 03 - 8688 1000
Toll Free Numbers: 1-800-888030 http://www.mcmc.gov.my

1
141590 new NBP 14-8b6 14/8/06 11:50 AM Page 2

Foreword
Since the approval of the National Broadband Plan (NBP)
by the government in October 2004, there has been
many calls for more information regarding the
implementation of the NBP. Quite naturally, the Ministry
of Energy Water and Communications has been well
aware that whilst the first few years have been concentrated on the public sector
whereby information can be easily disseminated within the government
network, the situation has changed somewhat with the bulk of the
implementation now resting within the private sector.

Therefore, I am pleased to note that the National Broadband Plan Secretariat has
now outlined within this booklet the essence of the NBP in a nutshell, which for
the rest of the period of the plan, will concentrate on the private sector. There are
now plans for nationwide roll out of high speed broadband services, wireless as
well as wired/fixed, which together which will form one of the main “pillars” of
the government’s MyICMS 886 strategy.

Whilst Malaysia might still be lagging behind in terms of broadband penetration

rates compared to some of our more advanced Asia Pacific neighbours,
nevertheless, the government, in approving the National Broadband Plan, has
also given approval for the Malaysian Communications and Multimedia
Commission to amend where necessary the Universal Services Provision (USP)
Regulations in order the enable USP funds to be used for rolling out broadband
services to narrrow the digital divide. Using this mechanism, it is thus up to our
industry players, regulator, operator, vendor and all other stakeholders alike, to
ensure that the stated objectives and KPIs of the National Broadband Plan shall
be achieved for the benefit of all Malaysians. In the near future, broadband has
to be viewed as a national utility service, no longer a luxury.

YB Dato' Sri Dr.Lim Keng Yaik

MINISTER OF ENERGY, WATER AND COMMUNICATIONS, MALAYSIA

3
141590 new NBP 14-8b6 14/8/06 11:50 AM Page 2

Foreword
Since the approval of the National Broadband Plan (NBP)
by the government in October 2004, there has been
many calls for more information regarding the
implementation of the NBP. Quite naturally, the Ministry
of Energy Water and Communications has been well
aware that whilst the first few years have been concentrated on the public sector
whereby information can be easily disseminated within the government
network, the situation has changed somewhat with the bulk of the
implementation now resting within the private sector.

Therefore, I am pleased to note that the National Broadband Plan Secretariat has
now outlined within this booklet the essence of the NBP in a nutshell, which for
the rest of the period of the plan, will concentrate on the private sector. There are
now plans for nationwide roll out of high speed broadband services, wireless as
well as wired/fixed, which together which will form one of the main “pillars” of
the government’s MyICMS 886 strategy.

Whilst Malaysia might still be lagging behind in terms of broadband penetration

rates compared to some of our more advanced Asia Pacific neighbours,
nevertheless, the government, in approving the National Broadband Plan, has
also given approval for the Malaysian Communications and Multimedia
Commission to amend where necessary the Universal Services Provision (USP)
Regulations in order the enable USP funds to be used for rolling out broadband
services to narrrow the digital divide. Using this mechanism, it is thus up to our
industry players, regulator, operator, vendor and all other stakeholders alike, to
ensure that the stated objectives and KPIs of the National Broadband Plan shall
be achieved for the benefit of all Malaysians. In the near future, broadband has
to be viewed as a national utility service, no longer a luxury.

YB Dato' Sri Dr.Lim Keng Yaik

MINISTER OF ENERGY, WATER AND COMMUNICATIONS, MALAYSIA

3
141590 new NBP 14-8b6 14/8/06 11:50 AM Page 4

Introduction and c. Explore various funding mechanisms to finance the project; and
d. Identify gaps in existing regulations and where necessary,
Background on the National introduce new ones to facilitate broadband rollout.
Broadband Plan
3. In October 2004, after almost two years of careful deliberations,
consultations and planning with more than 10 Government agencies,
1. In 2002, there was a slight cheer and euphoria for the communications
NGOs, and not forgetting the industry stakeholders and even
and multimedia industry in Malaysia which had just recorded a
members of the public, the Malaysian Cabinet approved the National
continuous three successive years of growth, following the turmoil of
Broadband Plan, together with the instructions to implement it over a
the Asian financial crisis of 1997 and 1998. It was against this
10 year period.
background that the Industry, under the guidance of the then Ministry
of Energy, Communications and Multimedia and the Malaysian
4. To facilitate the achievement of the NBP’s objective, a full time NBP
Communications and Multimedia Commission (MCMC) decided on
Secretariat was formed within the Ministry of Energy, Water and
the need to embark on a project which would plan ahead for the next
Communications (MEWC) which will work closely with MCMC who
ten years in terms of planning for the nation’s infrastructure,
would continue to be the chief regulating agency, especially in terms
especially in view of the declining fixed line penetration rate. Against
of regulatory and implementing matters.
this backdrop, the National Broadband Plan (NBP) was developed. The
NBP took almost two years of painstaking consultation, planning and
strategising but nevertheless, looking back, it was a major positive step
taken, as the planners already forecasted in those early days that MyICMS 886 and the Need to
broadband would become crucial as the next step for the development Deliver High Speed Broadband
of all Internet services in Malaysia and e-Government and e-commerce
in particular. The Government was tasked to embark on a thorough
to the Masses
study on the needs of government intervention in carving out a
national plan for orderly and forward looking deployment of 5. With the introduction of the nation’s new 5 year ICT Blueprint better
broadband supply in Malaysia. known as MyICMS 886, the National Broadband Plan took on an even
greater impetus. The Minister of Energy Water & Communications, YB
2. Under these premises, the Government’s team decided pounced on Dato’ Seri Dr. Lim Keng Yaik, rightfully emphasised the importance of
the opportunity to introduce a comprehensive National Broadband the NBP by placing High Speed Broadband infrastructure, which will
Plan with the following initial objectives: spur high speed Internet connectivity anytime and anywhere
regardless of whether the user is on the move or stationary, as the first
a. Generate adequate supply in terms of broadband infrastructure,
“milestone” Service to overcome under the MyICMS 886. The visionary
via various available technologies deemed appropriate by 2008;
MyICMS 886 Blueprint also correctly pinpointed that the driving force
b. Stimulate demand to ensure efficient take-up of broadband
of the High Speed Broadband service will be the abundant availability
services via suitable content & applications services;

4 5
141590 new NBP 14-8b6 14/8/06 11:50 AM Page 4

Introduction and c. Explore various funding mechanisms to finance the project; and
d. Identify gaps in existing regulations and where necessary,
Background on the National introduce new ones to facilitate broadband rollout.
Broadband Plan
3. In October 2004, after almost two years of careful deliberations,
consultations and planning with more than 10 Government agencies,
1. In 2002, there was a slight cheer and euphoria for the communications
NGOs, and not forgetting the industry stakeholders and even
and multimedia industry in Malaysia which had just recorded a
members of the public, the Malaysian Cabinet approved the National
continuous three successive years of growth, following the turmoil of
Broadband Plan, together with the instructions to implement it over a
the Asian financial crisis of 1997 and 1998. It was against this
10 year period.
background that the Industry, under the guidance of the then Ministry
of Energy, Communications and Multimedia and the Malaysian
4. To facilitate the achievement of the NBP’s objective, a full time NBP
Communications and Multimedia Commission (MCMC) decided on
Secretariat was formed within the Ministry of Energy, Water and
the need to embark on a project which would plan ahead for the next
Communications (MEWC) which will work closely with MCMC who
ten years in terms of planning for the nation’s infrastructure,
would continue to be the chief regulating agency, especially in terms
especially in view of the declining fixed line penetration rate. Against
of regulatory and implementing matters.
this backdrop, the National Broadband Plan (NBP) was developed. The
NBP took almost two years of painstaking consultation, planning and
strategising but nevertheless, looking back, it was a major positive step
taken, as the planners already forecasted in those early days that MyICMS 886 and the Need to
broadband would become crucial as the next step for the development Deliver High Speed Broadband
of all Internet services in Malaysia and e-Government and e-commerce
in particular. The Government was tasked to embark on a thorough
to the Masses
study on the needs of government intervention in carving out a
national plan for orderly and forward looking deployment of 5. With the introduction of the nation’s new 5 year ICT Blueprint better
broadband supply in Malaysia. known as MyICMS 886, the National Broadband Plan took on an even
greater impetus. The Minister of Energy Water & Communications, YB
2. Under these premises, the Government’s team decided pounced on Dato’ Seri Dr. Lim Keng Yaik, rightfully emphasised the importance of
the opportunity to introduce a comprehensive National Broadband the NBP by placing High Speed Broadband infrastructure, which will
Plan with the following initial objectives: spur high speed Internet connectivity anytime and anywhere
regardless of whether the user is on the move or stationary, as the first
a. Generate adequate supply in terms of broadband infrastructure,
“milestone” Service to overcome under the MyICMS 886. The visionary
via various available technologies deemed appropriate by 2008;
MyICMS 886 Blueprint also correctly pinpointed that the driving force
b. Stimulate demand to ensure efficient take-up of broadband
of the High Speed Broadband service will be the abundant availability
services via suitable content & applications services;

4 5
141590 new NBP 14-8b6 14/8/06 11:51 AM Page 6

of multimedia content and application services which are delivered on c. By end of 2010, it is expected that the total broadband connection
the Internet. With this key broadband service in place, the ability to will reach 75% penetration rate for household.
provide all other essential services including digital homes, short range
communications, VoIP via the Universal Services Provision (USP) comes 7. No doubt that the above targets are abundantly high and henceforth
into play riding on a multitude platform of hard and soft infrastructure. so is the challenge. Nevertheless, this formidable task of reaching such
high expectations has been assumed by the MEWC and the MCMC in
MyICMS 886 – Core Elements their drive to leapfrog the country to keep in pace with the
neighbouring states in Asia and beyond and there is no time to waste.
Services Infrastucture Growth Areas
As in April 2006, Malaysia’s broadband penetration rate stands at a
1. High Speed Broadband HARD 1. Content Development mere 560,000 subscribers or less than 2.5%. The bulk of these
2. 3G & Beyond 1. Multiservice Convergence (e.g. education, subscribers currently utilise ADSL technology which, although is
3. Mobile TV Networks entertainment, games) widely accepted in most parts of the world as a proven technology
4. Digital Multimedia 2. 3G Cellular Networks 2. ICT Education Hub
capable of reaching out to the masses, nevertheless, has room for
Broadcasting 3. Satelite Networks 3. Digital Multimedia
upgrading to reach the ever increasing demand for greater and faster
5. Digital Home SOFT Receivers (set top box)
6. Short Range 4. Communication Devices bandwidth. Other wireless technologies, ranging from LMDS, MMDS,
4. Next Generation Internet
Communications (e.g. Protocol, IPv6 (e.g. VoIP phones) WiFi and even of late, Wimax are expected to compliment wired
RFID-based) 5. Home Internet Adoption 5. Embedded technologies, but by and large, MCMC’s survey has analysed and
7. VoIP/Internet Telephony 6. Information & Network Components & forecasted that at most, the entire wireless market will take up only a
8. USP - Universal Service Security Devices (e.g. RFID) 30% share of the total broadband subscribers by 2008. Satellite and
Provision 6. Foreign Ventures
7. Competence Development Broadband Power Line communications will take up the balance of the
8. Product Design & market economically unreachable by the earlier conventional wired or
Manufacturing
wireless means.

Areas under the purview of Ministry of Energy, Water and Communications

Areas under other government agencies and industry sectors
6. Henceforth, it was not surprising that the planners underscore the
need to provide truly high speed Internet services by having set the
targets or KPIs for broadband services as follows:
a. By end 2006, the total number of subscribers is expected to be 1.3
million and this is targeted to reach 2.8 million by 2008;
b. Optical fibre access will contribute a 10% penetration rate for
broadband from 2008 to 2010; and
Rationale of the NBP
The Broad Challenge for Malaysia
8. The first of the 10 National Policy Objectives in the Communications &
Multimedia Act (CMA) 1998 unequivocally states the aspiration to turn
Malaysia into a Communications & Multimedia (C&M) Global Hub.
Indeed, one of the fundamental building blocks to accomplish such a
vision is to put in place an efficient broadband network and ensure
sufficient subscription to the services therein. A key strategic aim

6 7
141590 new NBP 14-8b6 14/8/06 11:51 AM Page 6

of multimedia content and application services which are delivered on c. By end of 2010, it is expected that the total broadband connection
the Internet. With this key broadband service in place, the ability to will reach 75% penetration rate for household.
provide all other essential services including digital homes, short range
communications, VoIP via the Universal Services Provision (USP) comes 7. No doubt that the above targets are abundantly high and henceforth
into play riding on a multitude platform of hard and soft infrastructure. so is the challenge. Nevertheless, this formidable task of reaching such
high expectations has been assumed by the MEWC and the MCMC in
MyICMS 886 – Core Elements their drive to leapfrog the country to keep in pace with the
neighbouring states in Asia and beyond and there is no time to waste.
Services Infrastucture Growth Areas
As in April 2006, Malaysia’s broadband penetration rate stands at a
1. High Speed Broadband HARD 1. Content Development mere 560,000 subscribers or less than 2.5%. The bulk of these
2. 3G & Beyond 1. Multiservice Convergence (e.g. education, subscribers currently utilise ADSL technology which, although is
3. Mobile TV Networks entertainment, games) widely accepted in most parts of the world as a proven technology
4. Digital Multimedia 2. 3G Cellular Networks 2. ICT Education Hub
capable of reaching out to the masses, nevertheless, has room for
Broadcasting 3. Satelite Networks 3. Digital Multimedia
upgrading to reach the ever increasing demand for greater and faster
5. Digital Home SOFT Receivers (set top box)
6. Short Range 4. Communication Devices bandwidth. Other wireless technologies, ranging from LMDS, MMDS,
4. Next Generation Internet
Communications (e.g. Protocol, IPv6 (e.g. VoIP phones) WiFi and even of late, Wimax are expected to compliment wired
RFID-based) 5. Home Internet Adoption 5. Embedded technologies, but by and large, MCMC’s survey has analysed and
7. VoIP/Internet Telephony 6. Information & Network Components & forecasted that at most, the entire wireless market will take up only a
8. USP - Universal Service Security Devices (e.g. RFID) 30% share of the total broadband subscribers by 2008. Satellite and
Provision 6. Foreign Ventures
7. Competence Development Broadband Power Line communications will take up the balance of the
8. Product Design & market economically unreachable by the earlier conventional wired or
Manufacturing
wireless means.

Areas under the purview of Ministry of Energy, Water and Communications

Areas under other government agencies and industry sectors
6. Henceforth, it was not surprising that the planners underscore the
need to provide truly high speed Internet services by having set the
targets or KPIs for broadband services as follows:
a. By end 2006, the total number of subscribers is expected to be 1.3
million and this is targeted to reach 2.8 million by 2008;
b. Optical fibre access will contribute a 10% penetration rate for
broadband from 2008 to 2010; and
Rationale of the NBP
The Broad Challenge for Malaysia
8. The first of the 10 National Policy Objectives in the Communications &
Multimedia Act (CMA) 1998 unequivocally states the aspiration to turn
Malaysia into a Communications & Multimedia (C&M) Global Hub.
Indeed, one of the fundamental building blocks to accomplish such a
vision is to put in place an efficient broadband network and ensure
sufficient subscription to the services therein. A key strategic aim

6 7
141590 new NBP 14-8b6 14/8/06 11:51 AM Page 8
therefore is to define and establish the characteristics of the
Malaysian global hub for the communications and multimedia
content industries. This global hub is expected to have certain
characteristics:
high-quality services at reasonable prices;
infrastructure to suit all sectors of society;
adequate financial resources for growth;
proliferation of knowledge, skills and entrepreneurship;
ability to attract international and regional traffic and to compete
at home and abroad; and
a wide array of content and application services.
Given these characteristics, it is clear that a developed and healthy
broadband services market is a prerequisite if this vision of Malaysia
as a global communications hub is to be realised. Broadband will
contribute to the number of quality services which are available and
affordable, and address the changing infrastructure requirements to
satisfy all elements of society. It will also enable Malaysia to be
economically competitive overseas as broadband becomes an
increasingly important tool for business. As can be seen in other
nations which are at an advanced stage of broadband development,
the availability and use of basic broadband services is typically needed
if new and varied multimedia content and application services are to
flourish.
9. Malaysia is striving to create an internationally competitive business
environment. There are clearly many factors which will contribute
towards the achievement of this aim, including taxation, education
and housing development. However, two important components are
the maintenance of business productivity levels in line with those of
international competitors, and the ability of Malaysian businesses to
interact with the international business community.
8 9
10. It is regularly noted that the adoption of ICT, as propounded under the
MyICMS 886, is critical to the improvement of productivity, allowing,
for example, the automation of manual processes, the more efficient
management of resources and the reduction of costs. Whilst some of
these potential benefits can be realised through the implementation
of ICTs on a standalone basis, the adoption of inter-site and inter-
business networking will yield even more. The experience of other
countries demonstrates those businesses’ needs for telecoms capacity
between sites grows over time, as more applications are entrusted to
these networks, leading to demand for broadband rather than
narrowband. The adoption of e-commerce practices, which enable
rationalisation of both supplier and customer relationships, also offers
competitive advantages to businesses, and such systems benefit from
the higher capacity and ‘always-on’ nature of broadband services. Thus
it is critical that Malaysian businesses adopt the same new
broadband-enabled business practices which are being introduced
elsewhere in order to remain competitive.
11. To face the hard core facts, statistics around the region show that there
is a need to go for a quantum leap approach to achieve the desired
global hub status, as other countries such as South Korea, Japan and
Taiwan have already made considerable inroads in terms of broadband
development.
12. As such, well-structured government led programmes must be
implemented to achieve our desired objectives in a systematic and
orderly fashion. This is where the NBP comes in. Envisaged to be non-
prescriptive in nature initially, the NBP has nevertheless matured into
a “force” on its own. Alongside the Cabinet approval for the plan comes
the “go ahead” to fund broadband deployment for the country under
the Ninth Malaysia Plan and via the Universal Service provision Fund.
Coupled together with implementation plans and timeframes are the
key performance targets which serve as a guide for regional roll out
using structured programmes at state level to yield the desired results.
141590 new NBP 14-8b6 14/8/06 11:51 AM Page 8
therefore is to define and establish the characteristics of the
Malaysian global hub for the communications and multimedia
content industries. This global hub is expected to have certain
characteristics:
high-quality services at reasonable prices;
infrastructure to suit all sectors of society;
adequate financial resources for growth;
proliferation of knowledge, skills and entrepreneurship;
ability to attract international and regional traffic and to compete
at home and abroad; and
a wide array of content and application services.
Given these characteristics, it is clear that a developed and healthy
broadband services market is a prerequisite if this vision of Malaysia
as a global communications hub is to be realised. Broadband will
contribute to the number of quality services which are available and
affordable, and address the changing infrastructure requirements to
satisfy all elements of society. It will also enable Malaysia to be
economically competitive overseas as broadband becomes an
increasingly important tool for business. As can be seen in other
nations which are at an advanced stage of broadband development,
the availability and use of basic broadband services is typically needed
if new and varied multimedia content and application services are to
flourish.
9. Malaysia is striving to create an internationally competitive business
environment. There are clearly many factors which will contribute
towards the achievement of this aim, including taxation, education
and housing development. However, two important components are
the maintenance of business productivity levels in line with those of
international competitors, and the ability of Malaysian businesses to
interact with the international business community.
8 9
10. It is regularly noted that the adoption of ICT, as propounded under the
MyICMS 886, is critical to the improvement of productivity, allowing,
for example, the automation of manual processes, the more efficient
management of resources and the reduction of costs. Whilst some of
these potential benefits can be realised through the implementation
of ICTs on a standalone basis, the adoption of inter-site and inter-
business networking will yield even more. The experience of other
countries demonstrates those businesses’ needs for telecoms capacity
between sites grows over time, as more applications are entrusted to
these networks, leading to demand for broadband rather than
narrowband. The adoption of e-commerce practices, which enable
rationalisation of both supplier and customer relationships, also offers
competitive advantages to businesses, and such systems benefit from
the higher capacity and ‘always-on’ nature of broadband services. Thus
it is critical that Malaysian businesses adopt the same new
broadband-enabled business practices which are being introduced
elsewhere in order to remain competitive.
11. To face the hard core facts, statistics around the region show that there
is a need to go for a quantum leap approach to achieve the desired
global hub status, as other countries such as South Korea, Japan and
Taiwan have already made considerable inroads in terms of broadband
development.
12. As such, well-structured government led programmes must be
implemented to achieve our desired objectives in a systematic and
orderly fashion. This is where the NBP comes in. Envisaged to be non-
prescriptive in nature initially, the NBP has nevertheless matured into
a “force” on its own. Alongside the Cabinet approval for the plan comes
the “go ahead” to fund broadband deployment for the country under
the Ninth Malaysia Plan and via the Universal Service provision Fund.
Coupled together with implementation plans and timeframes are the
key performance targets which serve as a guide for regional roll out
using structured programmes at state level to yield the desired results.
141590 new NBP 14-8b6 14/8/06 11:51 AM Page 10

Quantification of Malaysia’s Broadband Ambitions

16. As illustrated in Exhibit 2, it is expected that educational
establishments will be the leading public sector users of broadband
13. In this section, a brief report on the findings of the NBP Consultants is
over the next five years. Whilst the demand for broadband services
given to spell out a scenario for the availability and take-up of broadband
from government offices, justice sites (such as courts) and health
services. This scenario is based on their understanding of the future
institutions is expected to develop more slowly, they are nevertheless
characteristics of Malaysia’s broadband market which will be
identified as key users. Other categories of public site, such as defence
necessary in order to meet the country’s stated goals. It also includes
sites, may also have significant demand for broadband. However, they
their interpretation of the broadband needs of Malaysia’s public sector.
are not specifically addressed, since it is impractical to assess the
demand from such users today. Besides, many such sites could easily
14. It is essential to note that although the primary initial focus is in
be served by the capacity installed for the provision of service to the
addressing the broadband needs of users in the public sector first,
identified user categories.
especially in schools and other educational establishments but this is
a means towards a further ultimate objective through which the effective
roll-out of broadband technologies to other private sector users – such
as households and businesses – can be enabled and encouraged.
Exhibit 2:
Analysys’s
15. Exhibit 2 illustrates the base scenario for demand for broadband
interpretation of
services (encompassing both midband and fibre speed technologies)
the demand for
amongst key government public educational establishments over a
broadband
five-year period. This scenario is informed by the requirements of
services amongst
programmes already in place and expected to be rolled out in the
key public sector
future, the experience of government agencies in other countries, and
users [Source:
the Consultant’s expectations of the evolution of broadband demand
Analysys]
in the public sector. It is expected that the requirement for fibre speeds
(>2Mbps) will come into play by 2007, especially for urban areas.

Exhibit 1
Estimated demand for connectivity from Malaysian educational establishments Sources from KTAK/MCMC

2004 2010 If Malaysia is to realize its broadband objectives, it will need to ensure
School location Mid-band Fibre speed Mid-band Fibre speed that not only public sector users but also households and business
Urban/suburban 75% 25% 0% 100% users are well catered for. Exhibit 3 illustrates the levels of service
Rural and remote 95% 5% 50% 50% coverage which may be expected. This exhibit illustrates only the
expected availability of fixed midband technologies, such as xDSL, fibre
Sources from KTAK/MCMC

10 11
141590 new NBP 14-8b6 14/8/06 11:51 AM Page 10

Quantification of Malaysia’s Broadband Ambitions

16. As illustrated in Exhibit 2, it is expected that educational
establishments will be the leading public sector users of broadband
13. In this section, a brief report on the findings of the NBP Consultants is
over the next five years. Whilst the demand for broadband services
given to spell out a scenario for the availability and take-up of broadband
from government offices, justice sites (such as courts) and health
services. This scenario is based on their understanding of the future
institutions is expected to develop more slowly, they are nevertheless
characteristics of Malaysia’s broadband market which will be
identified as key users. Other categories of public site, such as defence
necessary in order to meet the country’s stated goals. It also includes
sites, may also have significant demand for broadband. However, they
their interpretation of the broadband needs of Malaysia’s public sector.
are not specifically addressed, since it is impractical to assess the
demand from such users today. Besides, many such sites could easily
14. It is essential to note that although the primary initial focus is in
be served by the capacity installed for the provision of service to the
addressing the broadband needs of users in the public sector first,
identified user categories.
especially in schools and other educational establishments but this is
a means towards a further ultimate objective through which the effective
roll-out of broadband technologies to other private sector users – such
as households and businesses – can be enabled and encouraged.
Exhibit 2:
Analysys’s
15. Exhibit 2 illustrates the base scenario for demand for broadband
interpretation of
services (encompassing both midband and fibre speed technologies)
the demand for
amongst key government public educational establishments over a
broadband
five-year period. This scenario is informed by the requirements of
services amongst
programmes already in place and expected to be rolled out in the
key public sector
future, the experience of government agencies in other countries, and
users [Source:
the Consultant’s expectations of the evolution of broadband demand
Analysys]
in the public sector. It is expected that the requirement for fibre speeds
(>2Mbps) will come into play by 2007, especially for urban areas.

Exhibit 1
Estimated demand for connectivity from Malaysian educational establishments Sources from KTAK/MCMC

2004 2010 If Malaysia is to realize its broadband objectives, it will need to ensure
School location Mid-band Fibre speed Mid-band Fibre speed that not only public sector users but also households and business
Urban/suburban 75% 25% 0% 100% users are well catered for. Exhibit 3 illustrates the levels of service
Rural and remote 95% 5% 50% 50% coverage which may be expected. This exhibit illustrates only the
expected availability of fixed midband technologies, such as xDSL, fibre
Sources from KTAK/MCMC

10 11
141590 new NBP 14-8b6 14/8/06 11:51 AM Page 12

and BFWA, since it is envisaged that fixed technologies will be critical public sector, it will create enough momentum whereupon the private
in the development of a successful broadband market in Malaysia. sector will then jump onto the bandwagon to continue deployment
Government expenditure on communications will increase as a amongst the masses. The target of reaching a 5% subscriber
consequence of this demand. In addition, the roll-out of 3G mobile penetration rate (23% household penetration) or approximately 1.3
networks and wireless PWLAN hotspots will ensure that more than million subscribers by 2006 was adopted as the critical mass needed
80% of households can be covered by 2007. in order for the private sector to further gain the momentum onto the
masses after the initial government intervention – see Exhibit 4. In this
respect, the first phase of the NBP involving public sector sites have
already commenced since 2004. During the implementation of the
Exhibit 3: Ninth Malaysia Plan (RMK-9) period, the Bridging of the Digital Divide
Coverage of (BDD) Infrastructure development programme will take on full
households by impetus with the Ministry of Energy, Water and Communications
fixed midband continuing to take the lead in telecommunications infrastructure
services development as well as well as supporting and upgrading the
(excludes mobile telecentres, and SchoolNet in close collaboration with the Ministry of
broadband Rural and Regional Development and the Ministry of Education.
services such as Altogether, a total of RM3.710 billion has been allocated under the
3G, PWLAN) RMK-9 for the BDD.
[Source: Exhibit 4
Analysys]

Sources from KTAK/MCMC

Strategies of the NBP

The “Critical Mass” Theory

17. The key towards the success of the National Broadband Plan lies in the
“Critical Mass” theory whereby if the Government sustains the initial
deployment of broadband infrastructure using public funding for the

Sources from KTAK/MCMC

12 13
141590 new NBP 14-8b6 14/8/06 11:51 AM Page 12

and BFWA, since it is envisaged that fixed technologies will be critical public sector, it will create enough momentum whereupon the private
in the development of a successful broadband market in Malaysia. sector will then jump onto the bandwagon to continue deployment
Government expenditure on communications will increase as a amongst the masses. The target of reaching a 5% subscriber
consequence of this demand. In addition, the roll-out of 3G mobile penetration rate (23% household penetration) or approximately 1.3
networks and wireless PWLAN hotspots will ensure that more than million subscribers by 2006 was adopted as the critical mass needed
80% of households can be covered by 2007. in order for the private sector to further gain the momentum onto the
masses after the initial government intervention – see Exhibit 4. In this
respect, the first phase of the NBP involving public sector sites have
already commenced since 2004. During the implementation of the
Exhibit 3: Ninth Malaysia Plan (RMK-9) period, the Bridging of the Digital Divide
Coverage of (BDD) Infrastructure development programme will take on full
households by impetus with the Ministry of Energy, Water and Communications
fixed midband continuing to take the lead in telecommunications infrastructure
services development as well as well as supporting and upgrading the
(excludes mobile telecentres, and SchoolNet in close collaboration with the Ministry of
broadband Rural and Regional Development and the Ministry of Education.
services such as Altogether, a total of RM3.710 billion has been allocated under the
3G, PWLAN) RMK-9 for the BDD.
[Source: Exhibit 4
Analysys]

Sources from KTAK/MCMC

Strategies of the NBP

The “Critical Mass” Theory

17. The key towards the success of the National Broadband Plan lies in the
“Critical Mass” theory whereby if the Government sustains the initial
deployment of broadband infrastructure using public funding for the

Sources from KTAK/MCMC

12 13
141590 new NBP 14-8b6 14/8/06 11:51 AM Page 14

18. In this respect, the greatest number of connections would be for Exhibit 6
government departments under EG*Net network (84,000) and
government schools under SchoolNet (27,000). Hospitals and clinics, DEMAND SCENARIO-PUBLIC SECTOR COMMUNITY CONNECTION

which have been most in need of basic Internet connections, would Major Usage Projected Demand (‘000)
automatically benefit as it would mean that all Internet connections
2004 2005 2006 2007 2008 2009 2010 Total
would be upgraded to broadband. Last but not least the NBP has
sufficient coverage to include institutions of higher learning as well as E-Government 10 26 48 20 16 15 10 145
Internet community centres see Exhibit 5 School Net 15 5 7 10 15 15 15 82
MYREN(Research) 1 2 4 2 1 0 0 10
Exhibit 5 Tele health 2 4 6 8 10 10 10 50
Internet Community - 1 1 - - - - 2
NUMBER OF CONNECTIONS FOR THE PUBLIC SECTOR Centre
Connections* Net Increase 28 38 66 40 42 40 35 289
Community Network
(2006)
Accumulative 28 66 132 172 214 254 289
Government Departments EG*Net++ 84,000
– Federal
– State *All projects have been agreed to by government
– District Source: Estimate by KTAK, GITN

Schools School Net 27,000

Universities & Research
Institutions
Hospitals and clinics
Internet Community Centres
Total
Sources from KTAK/MCMC
* 1 connection equivalent to home user connection at 384 kbps
ADSL – Asymmetrical Digital Subscriber Line
ISDN – Integrated Switched Digital Network
MyREN 7,000
20. Riding on the government initiated broadband network infrastructure,
Telehealth 12,000 it is envisage that the spill-over effect will occur such that the private
ADSL, WiFi, ISDN 2,000 sector would jump on the bandwagon with private business sectors
and VSAT creating an increasingly strong demand to equal that of the
132,000 government sector. Overall, Exhibit 7 shows a demand of 150,000 private
business connections up to 2006 as compared to the estimated
132,000 public sector connections.
WiFi – Wireless Fidelity
VSAT – Very Small Aperture Terminal

19. On the whole, the NBP has set targets of 132,000 connections of 2006
alone but looking at the Public sector demand scenario under Exhibit 6
below. At least another 289,000 connections will be required by 2010
for the public sector alone.

14 15
141590 new NBP 14-8b6 14/8/06 11:51 AM Page 14

18. In this respect, the greatest number of connections would be for Exhibit 6
government departments under EG*Net network (84,000) and
government schools under SchoolNet (27,000). Hospitals and clinics, DEMAND SCENARIO-PUBLIC SECTOR COMMUNITY CONNECTION

which have been most in need of basic Internet connections, would Major Usage Projected Demand (‘000)
automatically benefit as it would mean that all Internet connections
2004 2005 2006 2007 2008 2009 2010 Total
would be upgraded to broadband. Last but not least the NBP has
sufficient coverage to include institutions of higher learning as well as E-Government 10 26 48 20 16 15 10 145
Internet community centres see Exhibit 5 School Net 15 5 7 10 15 15 15 82
MYREN(Research) 1 2 4 2 1 0 0 10
Exhibit 5 Tele health 2 4 6 8 10 10 10 50
Internet Community - 1 1 - - - - 2
NUMBER OF CONNECTIONS FOR THE PUBLIC SECTOR Centre
Connections* Net Increase 28 38 66 40 42 40 35 289
Community Network
(2006)
Accumulative 28 66 132 172 214 254 289
Government Departments EG*Net++ 84,000
– Federal
– State *All projects have been agreed to by government
– District Source: Estimate by KTAK, GITN

Schools School Net 27,000

Universities & Research
Institutions
Hospitals and clinics
Internet Community Centres
Total
Sources from KTAK/MCMC
* 1 connection equivalent to home user connection at 384 kbps
ADSL – Asymmetrical Digital Subscriber Line
ISDN – Integrated Switched Digital Network
MyREN 7,000
20. Riding on the government initiated broadband network infrastructure,
Telehealth 12,000 it is envisage that the spill-over effect will occur such that the private
ADSL, WiFi, ISDN 2,000 sector would jump on the bandwagon with private business sectors
and VSAT creating an increasingly strong demand to equal that of the
132,000 government sector. Overall, Exhibit 7 shows a demand of 150,000 private
business connections up to 2006 as compared to the estimated
132,000 public sector connections.
WiFi – Wireless Fidelity
VSAT – Very Small Aperture Terminal

19. On the whole, the NBP has set targets of 132,000 connections of 2006
alone but looking at the Public sector demand scenario under Exhibit 6
below. At least another 289,000 connections will be required by 2010
for the public sector alone.

14 15
141590 new NBP 14-8b6 14/8/06 11:52 AM Page 16

Exhibit 7 Exhibit 8

PRIVATE BUSINESS SECTOR TOTAL PROJECTED DEMAND FOR BROADBAND CONNECTION 2006
Leveraging on Government intervention on the communities, target Major Usage Projected Demand (‘000)
1.3 mil connections by 2006
Community Network Examples Connections* 2004 2005 2006 2007 2008 2009 2010 Total
2006
Public Community 28 38 66 40 42 40 35 289
Manufacturing Leased line and ADSL 45,100
(MNCs and SMEs) Private Business 25 48 77 98 110 150 180 688
Banking and Finance Leased Line 37,500 Home Users 229 325 440 595 709 700 902 3900
Distributive Trade ADSL 30,000 Net Increase 282 411 583 733 861 890 1117 4877
Transportation Leased Line and ADLS 15,000 Accumulative 282 693 1,276 2,009 2,870 3760 4877
Others ADSL,WiFi,ISDN 22,400
and VSAT Source: Analysis and Estimates by KTAK

Total 150,000
Sources from KTAK/MCMC
* 1connection equivalent to home user connection at 384 kbps
ADSL - Asymmetrical Digital Subscriber Line WiFi - Wireless Fidelity
ISDN-Integrated Switched Digital Network VSAT - Very Small Aperture Terminal
21. The NBP would, however continue with the spill over effect into the
private sector residences as it is the planners desire to ensure all
eventually, a bulk of the residences are connected in this respect
residential home-users take-up would form the greatest number of
connections. All in all, Exhibit 8 shows the total expected demand, in
terms public, private businesses and residences stood would be
289,000, 688,000 and 3,900,000 connections by 2010.
Policy and Regulatory Initiatives
22. In terms of policy and regulatory initiatives, the NBP has placed the
intensification of competition at the last mile, unbundling the local
loop and the issue of wholesale bandwidth pricing as being of top
priority. Although it is envisaged that the incumbent operator will still
command a substantial portion of the retail market, nevertheless, a
survey conducted by the NBP Secretariat shows that by 2008 a
substantive push into the retail broadband market would be made
aggressively by a multitude of newly licensed small to medium scale
broadband last mile providers. With each licensed operator having a
niche in its own way of packaging its technology, pricing as well as
content and application services, it is envisaged that Malaysians,
especially those living in the urban and semi-urban areas, will
eventually be able to have a choice with market forces dictating the
pace under a competitive environment.

16 17
141590 new NBP 14-8b6 14/8/06 11:52 AM Page 16

Exhibit 7 Exhibit 8

PRIVATE BUSINESS SECTOR TOTAL PROJECTED DEMAND FOR BROADBAND CONNECTION 2006
Leveraging on Government intervention on the communities, target Major Usage Projected Demand (‘000)
1.3 mil connections by 2006
Community Network Examples Connections* 2004 2005 2006 2007 2008 2009 2010 Total
2006
Public Community 28 38 66 40 42 40 35 289
Manufacturing Leased line and ADSL 45,100
(MNCs and SMEs) Private Business 25 48 77 98 110 150 180 688
Banking and Finance Leased Line 37,500 Home Users 229 325 440 595 709 700 902 3900
Distributive Trade ADSL 30,000 Net Increase 282 411 583 733 861 890 1117 4877
Transportation Leased Line and ADLS 15,000 Accumulative 282 693 1,276 2,009 2,870 3760 4877
Others ADSL,WiFi,ISDN 22,400
and VSAT Source: Analysis and Estimates by KTAK

Total 150,000
Sources from KTAK/MCMC
* 1connection equivalent to home user connection at 384 kbps
ADSL - Asymmetrical Digital Subscriber Line WiFi - Wireless Fidelity
ISDN-Integrated Switched Digital Network VSAT - Very Small Aperture Terminal
21. The NBP would, however continue with the spill over effect into the
private sector residences as it is the planners desire to ensure all
eventually, a bulk of the residences are connected in this respect
residential home-users take-up would form the greatest number of
connections. All in all, Exhibit 8 shows the total expected demand, in
terms public, private businesses and residences stood would be
289,000, 688,000 and 3,900,000 connections by 2010.
Policy and Regulatory Initiatives
22. In terms of policy and regulatory initiatives, the NBP has placed the
intensification of competition at the last mile, unbundling the local
loop and the issue of wholesale bandwidth pricing as being of top
priority. Although it is envisaged that the incumbent operator will still
command a substantial portion of the retail market, nevertheless, a
survey conducted by the NBP Secretariat shows that by 2008 a
substantive push into the retail broadband market would be made
aggressively by a multitude of newly licensed small to medium scale
broadband last mile providers. With each licensed operator having a
niche in its own way of packaging its technology, pricing as well as
content and application services, it is envisaged that Malaysians,
especially those living in the urban and semi-urban areas, will
eventually be able to have a choice with market forces dictating the
pace under a competitive environment.

16 17
141590 new NBP 14-8b6 14/8/06 11:52 AM Page 18
23. At the ground level, efforts are being made by the NBP Secretariat to
work with local authorities to ensure orderly roll out with the least
possible delay. Meanwhile, in the long-term, efforts will be continued
by the Ministry of Energy, Water and Communications and the MCMC
to further improve the open market environment of the industry,
particularly, to intensify competition and promote infrastructural-
sharing. Broadband Stakeholders Groups or BSGs, are being formed,
together with the state governments collaboration, to harness and tap
the expertise of the local population, especially in terms of conducting
supply and demand surveys for broadband at regional level.
Plans for the Private Sector
24. With the bulk of the demand for broadband connections under the
National Broadband Plan coming from the private sector, it is
envisaged that there must be a concerted effort on the part of both
government as well as private sector to closely collaborate towards
achieving the common goals of delivering high speed broadband
services for the masses. This close collaboration comes in three forms:
a) Financial support using the Universal Service Provision Fund
The Universal Service Provision Fund, being managed by MCMC at
the moment, has been earmarked as being the main channel of
funding broadband roll out. It is envisaged that the combined
private and public sectors would require an additional RM583
million for 2006, RM733 million for 2007 and more than RM800
million each year from 2008 onwards once the public sector
demand aggregation is in place due to government intervention.
Obviously, some of this funding may still require assistance from
the Government which is the reason behind the Malaysian
Cabinet’s decision to enable the USP Fund to be utilised for
broadband roll out.
18
b) Regulatory and Technical assistance
In addition to the provision of USP Funds, in many instances of ICT
development, the experience accumulated at MEWC and MCMC in
rolling out broadband infrastructure is invaluable whereby most state
governments would be able to benefit by having collaboration with
the Federal Government in this respect. Technical assistance comes in
many forms including the following:
Advice on regulatory issues in respect of communications and
multimedia services;
Assist in state government ICT organisations or broadband
stakeholders group in conducting supply and demand surveys and
analysing demand aggregation;
Share experiences with state authorities in best practices in
planning state ICT Master plans to establish commercial as well as
residential penetration targets;
Provide technical advice on rolling out broadband services to reach
the masses using the most suitable and cost effective technology
available over the medium to long term period; and
Provide suggestions on how best to couple state ICT blueprints
together with National Broadband Plan objectives.
c) Promotional Activities
Promotion and awareness of the benefits of broadband to deliver
value added content or application service to support and contribute
directly to the growth of the economy as well as enhancing the quality
if life if the population. As a general guideline, the NBP Secretariat
plans to work hand in hand with MCMC’s regional offices to conduct
roadshows and awareness campaigns in the semi and small urban
areas whereby with the assistance of the state regional offices,
information regarding the topology, population statistics as well as
socio-economic data can be obtained to assist in formulating the
underserved areas and communities.
19
141590 new NBP 14-8b6 14/8/06 11:52 AM Page 18
23. At the ground level, efforts are being made by the NBP Secretariat to
work with local authorities to ensure orderly roll out with the least
possible delay. Meanwhile, in the long-term, efforts will be continued
by the Ministry of Energy, Water and Communications and the MCMC
to further improve the open market environment of the industry,
particularly, to intensify competition and promote infrastructural-
sharing. Broadband Stakeholders Groups or BSGs, are being formed,
together with the state governments collaboration, to harness and tap
the expertise of the local population, especially in terms of conducting
supply and demand surveys for broadband at regional level.
Plans for the Private Sector
24. With the bulk of the demand for broadband connections under the
National Broadband Plan coming from the private sector, it is
envisaged that there must be a concerted effort on the part of both
government as well as private sector to closely collaborate towards
achieving the common goals of delivering high speed broadband
services for the masses. This close collaboration comes in three forms:
a) Financial support using the Universal Service Provision Fund
The Universal Service Provision Fund, being managed by MCMC at
the moment, has been earmarked as being the main channel of
funding broadband roll out. It is envisaged that the combined
private and public sectors would require an additional RM583
million for 2006, RM733 million for 2007 and more than RM800
million each year from 2008 onwards once the public sector
demand aggregation is in place due to government intervention.
Obviously, some of this funding may still require assistance from
the Government which is the reason behind the Malaysian
Cabinet’s decision to enable the USP Fund to be utilised for
broadband roll out.
18
b) Regulatory and Technical assistance
In addition to the provision of USP Funds, in many instances of ICT
development, the experience accumulated at MEWC and MCMC in
rolling out broadband infrastructure is invaluable whereby most state
governments would be able to benefit by having collaboration with
the Federal Government in this respect. Technical assistance comes in
many forms including the following:
Advice on regulatory issues in respect of communications and
multimedia services;
Assist in state government ICT organisations or broadband
stakeholders group in conducting supply and demand surveys and
analysing demand aggregation;
Share experiences with state authorities in best practices in
planning state ICT Master plans to establish commercial as well as
residential penetration targets;
Provide technical advice on rolling out broadband services to reach
the masses using the most suitable and cost effective technology
available over the medium to long term period; and
Provide suggestions on how best to couple state ICT blueprints
together with National Broadband Plan objectives.
c) Promotional Activities
Promotion and awareness of the benefits of broadband to deliver
value added content or application service to support and contribute
directly to the growth of the economy as well as enhancing the quality
if life if the population. As a general guideline, the NBP Secretariat
plans to work hand in hand with MCMC’s regional offices to conduct
roadshows and awareness campaigns in the semi and small urban
areas whereby with the assistance of the state regional offices,
information regarding the topology, population statistics as well as
socio-economic data can be obtained to assist in formulating the
underserved areas and communities.
19
141590 new NBP 14-8b6 14/8/06 11:52 AM Page 20
Role of the NBP Secretariat in
Rolling Out Broadband
Scope of Work for the NBP Secretariat
25. While there was an NBP Steering Committee formed to oversee
implementation of the NBP, nevertheless, it requires constant
concerted efforts from the Government to put it into specific deliverables,
action plans, and projects to give full effect to the NBP, which is of
significant importance for Malaysia to support future growth of the
ICT sector. The NBP Secretariat was created on January 3, 2006 out of
the necessity for a full time body to take daily charge and co-ordinate
efforts in order to reach the objectives under the National Broadband
Plan. The Secretariat will undertake the effective implementation of
the NBP with the following scope of work and responsibilities:
overall co-ordination of the initiatives included within the NBP;
reporting progress on the tasks and deliverables of the plan;
co-ordinate private sector implementation, funding and promotion,
surveys, facilitating roll out in communities and generally acting
as a focal point for public-private sector collaboration;
updating the plan to reflect new circumstances (as necessary);
liaising with public and private institutions which have a stake in
the NBP, including government agencies, MCMC, and state
governments as well as the industry, NGOs and consumers;
working together with state governments as well as any
Broadband Stakeholders Group in each region;
generally to act as a focal point for broadband initiatives in the
country; and
examine how to leverage new technologies for the development
and promotion of broadband.
20
Establishment of Broadband
Stakeholders Groups ( BSGs)
26. Broadband Stakeholders Groups or BSGs will be formed as and when
requried at various state and local levels comprising of representatives
from both the government and private sectors. The BSGs will absorb
some of the workload carried out by the NBP Secretariat, especially in
respect of providing feedback on local sentiments and demand
requirements for broadband, as well as forming very effective support
in terms of promotion and survey & monitoring capabilities.
A typical BSG will comprise of 8-12 persons with the government sector
represented by officials from the MEWC, MCMC, state governments,
and other relevant agencies, while the private sector will comprise of
representatives from captains of the industry, NGOs and other user
groups including trade associations, owners of heavy IT user groups,
academia, as well as from the housing/residential corporations. Apart
from permanent committee members, there may be ad hoc members
or experts recruited for specific tasks as required from time to time,
especially at the state and regional levels.
The Chairman of the BSG shall be elected by the members and shall be
a key person who has the capacity to devote a substantive amount of
time towards liaising with the various stakeholders, whether the
private sector, state government authorities as well as with the NBP
Secretariat.The adviser of the BSG shall be the secretary of the Secretariat.
The BSG’s main functions will be:
to provide the NBP Secretariat with advice and support on
technical and economic issues at local & district levels
to propose recommendations relating to the implementation of
the Secretariat’s tasks.
21
141590 new NBP 14-8b6 14/8/06 11:52 AM Page 20
Role of the NBP Secretariat in
Rolling Out Broadband
Scope of Work for the NBP Secretariat
25. While there was an NBP Steering Committee formed to oversee
implementation of the NBP, nevertheless, it requires constant
concerted efforts from the Government to put it into specific deliverables,
action plans, and projects to give full effect to the NBP, which is of
significant importance for Malaysia to support future growth of the
ICT sector. The NBP Secretariat was created on January 3, 2006 out of
the necessity for a full time body to take daily charge and co-ordinate
efforts in order to reach the objectives under the National Broadband
Plan. The Secretariat will undertake the effective implementation of
the NBP with the following scope of work and responsibilities:
overall co-ordination of the initiatives included within the NBP;
reporting progress on the tasks and deliverables of the plan;
co-ordinate private sector implementation, funding and promotion,
surveys, facilitating roll out in communities and generally acting
as a focal point for public-private sector collaboration;
updating the plan to reflect new circumstances (as necessary);
liaising with public and private institutions which have a stake in
the NBP, including government agencies, MCMC, and state
governments as well as the industry, NGOs and consumers;
working together with state governments as well as any
Broadband Stakeholders Group in each region;
generally to act as a focal point for broadband initiatives in the
country; and
examine how to leverage new technologies for the development
and promotion of broadband.
20
Establishment of Broadband
Stakeholders Groups ( BSGs)
26. Broadband Stakeholders Groups or BSGs will be formed as and when
requried at various state and local levels comprising of representatives
from both the government and private sectors. The BSGs will absorb
some of the workload carried out by the NBP Secretariat, especially in
respect of providing feedback on local sentiments and demand
requirements for broadband, as well as forming very effective support
in terms of promotion and survey & monitoring capabilities.
A typical BSG will comprise of 8-12 persons with the government sector
represented by officials from the MEWC, MCMC, state governments,
and other relevant agencies, while the private sector will comprise of
representatives from captains of the industry, NGOs and other user
groups including trade associations, owners of heavy IT user groups,
academia, as well as from the housing/residential corporations. Apart
from permanent committee members, there may be ad hoc members
or experts recruited for specific tasks as required from time to time,
especially at the state and regional levels.
The Chairman of the BSG shall be elected by the members and shall be
a key person who has the capacity to devote a substantive amount of
time towards liaising with the various stakeholders, whether the
private sector, state government authorities as well as with the NBP
Secretariat.The adviser of the BSG shall be the secretary of the Secretariat.
The BSG’s main functions will be:
to provide the NBP Secretariat with advice and support on
technical and economic issues at local & district levels
to propose recommendations relating to the implementation of
the Secretariat’s tasks.
21
141590 new NBP 14-8b6 14/8/06 11:52 AM Page 22

to lend an active hand at promotional work on the ground at 30. The registration scheme will be based on a centralised national
regional levels location database. This should be capable of providing the specific
to promote and ensure the positive use of broadband amongst the location of each potential broadband customer who registers their
local population firm interest in purchasing broadband services. It should also contain
other details which will be useful to operators in their deployment
planning processes, such as the type of service required, and possibly
National Broadband Registration Scheme
the expected level of expenditure on the service. Further, it will be
necessary to store the contact details of each registrant so that once
27. One of the reasons why telecoms operators may be unwilling to invest
an operator decides to proceed with deployment to a particular area,
in deploying infrastructure to offer broadband services in un-served
the expressions of interest can be converted into actual service orders.
areas is that they deem as high the risk of finding insufficient
customers to make a financial return. In some instances, due to the
limitations of the methods which operators use to forecast demand,
these risks may be overstated. In this case, users with real demand may Ninth Malaysia Plan (RMK9) and
go un-served. Next Generation Broadband
28. The proposed method of reducing the risk which operators associate
Infrastructure
with estimating existing subscribers as well as current and future
31. The Ninth Malaysia Plan or RMK9 has given further emphasis on the
demand is based on the detailed and accurate measurement of actual
importance of K-ICT and has set the following selected indicators for
current demand. This will provide hard evidence which operators can
the period 2000-2010:
use to inform their roll-out planning processes. Thus the availability of
such data will increase the confidence that the operators have in INDICATOR 2000 2005 2010
meeting their demand targets, and should help to accelerate
Fixed telephone lines
broadband roll-out. in operation 4.6 4.4 –
Number of lines
29. The broadband registration scheme is part and parcel of the (millions) 19.7 16.6 –
Secretariat not only to gauge the potential demand for broadband in Penetration %
the not too distant future but also to measure the level of subscription Cellular phone
take up over the lifespan of the NBP. This is a pragmatic approach since subscriptions 5.0 19.5 24.4
the organisation will have to develop a detailed understanding of Number of subscribers
demand anyway as part of its remit. ( millions ) 21.8 74.1 85.0
Penetration %

Sources from KTAK/MCMC

22 23
141590 new NBP 14-8b6 14/8/06 11:52 AM Page 22

to lend an active hand at promotional work on the ground at 30. The registration scheme will be based on a centralised national
regional levels location database. This should be capable of providing the specific
to promote and ensure the positive use of broadband amongst the location of each potential broadband customer who registers their
local population firm interest in purchasing broadband services. It should also contain
other details which will be useful to operators in their deployment
planning processes, such as the type of service required, and possibly
National Broadband Registration Scheme
the expected level of expenditure on the service. Further, it will be
necessary to store the contact details of each registrant so that once
27. One of the reasons why telecoms operators may be unwilling to invest
an operator decides to proceed with deployment to a particular area,
in deploying infrastructure to offer broadband services in un-served
the expressions of interest can be converted into actual service orders.
areas is that they deem as high the risk of finding insufficient
customers to make a financial return. In some instances, due to the
limitations of the methods which operators use to forecast demand,
these risks may be overstated. In this case, users with real demand may Ninth Malaysia Plan (RMK9) and
go un-served. Next Generation Broadband
28. The proposed method of reducing the risk which operators associate
Infrastructure
with estimating existing subscribers as well as current and future
31. The Ninth Malaysia Plan or RMK9 has given further emphasis on the
demand is based on the detailed and accurate measurement of actual
importance of K-ICT and has set the following selected indicators for
current demand. This will provide hard evidence which operators can
the period 2000-2010:
use to inform their roll-out planning processes. Thus the availability of
such data will increase the confidence that the operators have in INDICATOR 2000 2005 2010
meeting their demand targets, and should help to accelerate
Fixed telephone lines
broadband roll-out. in operation 4.6 4.4 –
Number of lines
29. The broadband registration scheme is part and parcel of the (millions) 19.7 16.6 –
Secretariat not only to gauge the potential demand for broadband in Penetration %
the not too distant future but also to measure the level of subscription Cellular phone
take up over the lifespan of the NBP. This is a pragmatic approach since subscriptions 5.0 19.5 24.4
the organisation will have to develop a detailed understanding of Number of subscribers
demand anyway as part of its remit. ( millions ) 21.8 74.1 85.0
Penetration %

Sources from KTAK/MCMC

22 23
141590 new NBP 14-8b6 14/8/06 11:52 AM Page 24

for a whole new next generation broadband infrastructure. In this

INDICATOR 2000 2005 2010
respect, plans are on the drawing board to compliment the current
Personal computers Malaysian Internet Exchange (MIX) system for a next generation high
installed 2.2 5.7 11.5
speed interconnectivity fibre-optic network to link up in a whole new
No. of units installed
( millions) 9.4 21.8 40.0 meshed network of digital communities which will take us onto a new

Penetration rate % ubiquitous service environment. In short, the demand for

international bandwidth connectivity will increase 10 fold every three
Internet dial-up
subscriptions 1.7 3.7 10.0 years for Malaysia making it a necessity to liberalise the sector even
Number of subscriptions further by encouraging greater and more affordable access to cable
( millions) 7.1 13.9 35.0 landing stations, the ability to co-locate and to unbundled or expand
Penetration rate % current copper networks into fibre optic or high speed wireless and
Internet broadband satellite networks.
subscriptions – 490,630 3,733,000
Number of subscriptions – 1.9 13.0
Penetration rate %
Summary - A look into the
Sources from KTAK/MCMC
future world of Malaysian Digital
32. To establish a more comprehensive and robust plan for Bridging the Environment and Ubiquitous
Digital Divide (BDD), a study on a National Strategic Framework for
BDD was undertaken. The Framework makes use of a geographical
Societies
information system (GIS) to map the distribution of ICT throughout
35. By 2010-2020, most states in Malaysia will aspire to reach a developed
the country in conjunction with various demographic and geographical
status in order to keep pace with Vision 2020. The key towards
parameters. Early indications show that while the general access to
reaching these challenging goals lie to a large extent on the
basic telephony is relatively high, more than 90% of the 927 Mukims
availability of high speed affordable broadband to channel and power
were still at the early stage of using the Internet and PCs.
the growth in ICT.

33. The challenge now becomes very clear that in order to win the hearts
36. By 2010, many neighboring jurisdictions in the Asia-Pacific region will
and minds of the population to jump onto the ICT bandwagon and to
already have commenced fibre-to-the-home (FTTH) as well as fibre
inculcate a knowledge-based work culture, more Internet and
speed wireless options including HSPDA, WiMAX and/or WiBro which
especially broadband supply is needed.
will be able to bring forth deliver at least 100Mbps to the desk. Video
streaming of 100 channels of high quality movies may be the norm
34. Although the focus is on the last mile infrastructure to get broadband
and with it so will the lifestyles of many people as the shape of a
supply to reach the masses, nevertheless, the NBP planners have to
digital environment and a ubiquitous society takes into reality.
allocate sufficient resources to international bandwidth and connectivity

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141590 new NBP 14-8b6 14/8/06 11:52 AM Page 24

for a whole new next generation broadband infrastructure. In this

INDICATOR 2000 2005 2010
respect, plans are on the drawing board to compliment the current
Personal computers Malaysian Internet Exchange (MIX) system for a next generation high
installed 2.2 5.7 11.5
speed interconnectivity fibre-optic network to link up in a whole new
No. of units installed
( millions) 9.4 21.8 40.0 meshed network of digital communities which will take us onto a new

Penetration rate % ubiquitous service environment. In short, the demand for

international bandwidth connectivity will increase 10 fold every three
Internet dial-up
subscriptions 1.7 3.7 10.0 years for Malaysia making it a necessity to liberalise the sector even
Number of subscriptions further by encouraging greater and more affordable access to cable
( millions) 7.1 13.9 35.0 landing stations, the ability to co-locate and to unbundled or expand
Penetration rate % current copper networks into fibre optic or high speed wireless and
Internet broadband satellite networks.
subscriptions – 490,630 3,733,000
Number of subscriptions – 1.9 13.0
Penetration rate %
Summary - A look into the
Sources from KTAK/MCMC
future world of Malaysian Digital
32. To establish a more comprehensive and robust plan for Bridging the Environment and Ubiquitous
Digital Divide (BDD), a study on a National Strategic Framework for
BDD was undertaken. The Framework makes use of a geographical
Societies
information system (GIS) to map the distribution of ICT throughout
35. By 2010-2020, most states in Malaysia will aspire to reach a developed
the country in conjunction with various demographic and geographical
status in order to keep pace with Vision 2020. The key towards
parameters. Early indications show that while the general access to
reaching these challenging goals lie to a large extent on the
basic telephony is relatively high, more than 90% of the 927 Mukims
availability of high speed affordable broadband to channel and power
were still at the early stage of using the Internet and PCs.
the growth in ICT.

33. The challenge now becomes very clear that in order to win the hearts
36. By 2010, many neighboring jurisdictions in the Asia-Pacific region will
and minds of the population to jump onto the ICT bandwagon and to
already have commenced fibre-to-the-home (FTTH) as well as fibre
inculcate a knowledge-based work culture, more Internet and
speed wireless options including HSPDA, WiMAX and/or WiBro which
especially broadband supply is needed.
will be able to bring forth deliver at least 100Mbps to the desk. Video
streaming of 100 channels of high quality movies may be the norm
34. Although the focus is on the last mile infrastructure to get broadband
and with it so will the lifestyles of many people as the shape of a
supply to reach the masses, nevertheless, the NBP planners have to
digital environment and a ubiquitous society takes into reality.
allocate sufficient resources to international bandwidth and connectivity

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141590 new NBP 14-8b6 14/8/06 11:52 AM Page 26

37. In a similar manner, the future Malaysian city lifestyle would by 2010
become equally exciting as Malaysians who are urbanites by and large
Appendixes
have the capacity and spending power to move on towards the
Estimated number of broadband subscriptions by technology
Internet which, it is predicted that by 2010, would become a necessity
rather than a luxury for most urbanites. The NBP will therefore have a
twin focus in: NUMBER OF SUBSCRIPTIONS
Year Qtr
a) bringing the benefits of high speed broadband services at the ADSL SDSL Wireless Wireless Others* Total Penetration
Lan Rate
“top” end to spur Malaysia as a global communications and
multimedia hub with digital cities sprouting all over the country 2002 18,511 542 … .. 249 19,302 0.08
powered by a centrally planned wired mesh networks. Malaysian 2003 108,173 1,931 … … 302 110,406 0.45
urbanites would be living in a very much more intelligent home 2004 247,802 2,834 … … 1,865 252,501 0.98
lifestyle. Many states will have their own MSC Cybercity 2005 477,685 3,712 5,914 … 14,391 490,630 1.86
developments which will be the focal point of a knowledge-based
2003 1 34,013 637 250 34,900 0.14
ubiquitous society; and
2 52,491 767 336 53,594 0.21
b) Bringing the benefits of high speed broadband to each the 3 71,734 1,658 290 73,682 0.29
residential homes in the rest of the country moving from the cities 4 108,173 1,931 302 110,406 0.44
into the suburbs, towns, villages and eventually the rural
communities. 2004 1 139,862 2,168 302 142,332 0.56
2 170,516 2,432 1,286 174,234 0.68
3 213,589 2,616 1,799 218,004 0.85
38. It is envisaged that as broadband technology develops over the next
4 247,802 2,834 1,865 252,501 0.98
five-ten years, so will the broadband user and subscriber behavioural
patterns. The trend towards mobility means that eventually the users 2005 1 288,882 2,995 5,300 297,177 1.15
and subscribers will also be moving with a light-weight customer- 2 344,412 3,257 5,549 353,218 1.35
premise-equipment (CPE) which will enable them to be in 3 420,611 3,651 8,100 432,362 1.65
communication with their homes, offices as well as friends and 4 477,685 3,712 9,233 490,630 1.86
business circles whilst being on the move. Whilst this pattern may
2006 1 539,817 3,942 7,260 24,797 575,816 2.17
affect the targets of household penetration rates, nevertheless, the
goals of affordable high speed broadband for the masses remain the Sources from KTAK/MCMC

same. Truly, National Broadband Plan is all about the making of a

dream come true for bringing information and lifestyle benefits from
the all walks of society and the rest of the world into ones own living
environment.

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141590 new NBP 14-8b6 14/8/06 11:52 AM Page 26

37. In a similar manner, the future Malaysian city lifestyle would by 2010
become equally exciting as Malaysians who are urbanites by and large
Appendixes
have the capacity and spending power to move on towards the
Estimated number of broadband subscriptions by technology
Internet which, it is predicted that by 2010, would become a necessity
rather than a luxury for most urbanites. The NBP will therefore have a
twin focus in: NUMBER OF SUBSCRIPTIONS
Year Qtr
a) bringing the benefits of high speed broadband services at the ADSL SDSL Wireless Wireless Others* Total Penetration
Lan Rate
“top” end to spur Malaysia as a global communications and
multimedia hub with digital cities sprouting all over the country 2002 18,511 542 … .. 249 19,302 0.08
powered by a centrally planned wired mesh networks. Malaysian 2003 108,173 1,931 … … 302 110,406 0.45
urbanites would be living in a very much more intelligent home 2004 247,802 2,834 … … 1,865 252,501 0.98
lifestyle. Many states will have their own MSC Cybercity 2005 477,685 3,712 5,914 … 14,391 490,630 1.86
developments which will be the focal point of a knowledge-based
2003 1 34,013 637 250 34,900 0.14
ubiquitous society; and
2 52,491 767 336 53,594 0.21
b) Bringing the benefits of high speed broadband to each the 3 71,734 1,658 290 73,682 0.29
residential homes in the rest of the country moving from the cities 4 108,173 1,931 302 110,406 0.44
into the suburbs, towns, villages and eventually the rural
communities. 2004 1 139,862 2,168 302 142,332 0.56
2 170,516 2,432 1,286 174,234 0.68
3 213,589 2,616 1,799 218,004 0.85
38. It is envisaged that as broadband technology develops over the next
4 247,802 2,834 1,865 252,501 0.98
five-ten years, so will the broadband user and subscriber behavioural
patterns. The trend towards mobility means that eventually the users 2005 1 288,882 2,995 5,300 297,177 1.15
and subscribers will also be moving with a light-weight customer- 2 344,412 3,257 5,549 353,218 1.35
premise-equipment (CPE) which will enable them to be in 3 420,611 3,651 8,100 432,362 1.65
communication with their homes, offices as well as friends and 4 477,685 3,712 9,233 490,630 1.86
business circles whilst being on the move. Whilst this pattern may
2006 1 539,817 3,942 7,260 24,797 575,816 2.17
affect the targets of household penetration rates, nevertheless, the
goals of affordable high speed broadband for the masses remain the Sources from KTAK/MCMC

same. Truly, National Broadband Plan is all about the making of a

dream come true for bringing information and lifestyle benefits from
the all walks of society and the rest of the world into ones own living
environment.

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141590 new NBP 14-8b6 14/8/06 11:54 AM Page 28

Sources from KTAK/MCMC

Forecasts on fixed mobile converged broadband

network for the country

MALAYSIAN FIXED MOBILE (FMC) CONVERGENCE

BROADBAND FORECAST UNDER NBP
2004 2005 2006f 2007f 2008f 2009f 2010f CAGR
’06-‘10
Original Fixed 490 1,300 2,800 3,900 32%
Targets Wireless 0.6 300 1,500 5,000 102%
(feb
2004) Total 490.6 1,600 4,300 8,900 54%

Revised Fixed 490 1,080 1,900 2,800 3,370 3,900 38%

(June Wireless 0.6 300 900 1,500 3,250 5,000 102%
06)
Total 490.6 1,380 2,800 4,300 6,620 8,900 59%

Sources from KTAK/MCMC

Fixed = 50 - 100 Mbps (VDSL, Ethernet, FTTH)

Mobile = WiBro, HSDPA

28