mcmc overview of malaysian communication and broadcast industry 2012

|Malaysian Communications & Multimedia Commission|

| M a l a y s i a n C o m m u n i c a t i o n s & M u l t i m e d i a C o m m i s s i o n |

Opportunities of Partnerships with Telecom and Broadcast French Companies Double Tree, Kuala Lumpur 24 September 2012

An overview of the Malaysian Communications and Multimedia

(C & M) Industry

© SKMM 2012 1


Content

• Introduction

• Overview of C & M market

• What we are doing?

2


MALAYSIA IN BRIEF

• Total Area: 328,550 sq km

• Population: 28.85 million (2012)

• Population Density: 88 persons per sq km

• Urban Population: 71% of Total (2012)

• Households: 6.710 million (2012)

Economy • Gross Domestic Product (GDP): USD243

billion (Ringgit 3.2= 1USD)

• GDP growth 2011: 5.1%

Quality of Life • GNI per Capita (PPP): RM23,567

(USD7318.94)

• Literacy rate: 92%

• Unemployment rate : 2.9%

MALAYSIA © SKMM 2012

3

4

|Suruhanjaya Komunikasi & Multimedia Malaysia|

Parliament

Minister

MCMC

Appeal Tribunal

Industry Fora [Consumer, Content, Access and Technical]

Recommendations Directions

Consultative

Regulation Enforcement

Industry Players Consumers

Cabinet

Ministry

Appeals

INSTITUTIONAL FRAMEWORK UNDER

THE COMMUNICATIONS AND MULTIMEDIA ACT (CMA) 1998

© SKMM 2012

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• National Policy Objectives • Transparency • Principle of Self Regulation • Technology neutrality • Consumer protection

5 5

A statutory corporation – Established by the Malaysian Communications and Multimedia

Commission Act 1998 (MCMCA) – Effective from 1 November 1998 10 National Policy Objectives

1. Creating a global hub

2. Building a civil society

3. Nurturing local content and culture

4. Ensuring long-term benefits for end-users

5. Nurturing user confidence

6. Promoting access and equity

7. Creating a robust applications environment

8. Facilitating efficient allocation of resources

9. Developing industry capabilities

10. Promoting safe & secure network

Main Parts under the CMA

Fundamental Principles of CMA 1998

• Licensing • Economic Regulation • Technical Regulation • Consumer Protection • Social Regulation

MCMC – Regulator & Promoter of C&M Industry

© SKMM 2012

6


Licensing for Convergence

Licenses issued under CMA98

are technology-neutral and

service-neutral

Network Facilities

Network Services

Applications Services

Content Services

The new licensing framework

promotes vertical separation

between facilities, network,

applications, and content –

*Number of individual and class

(black text) licences in 2011

The old licenses that were issued

were based on specific

technologies, and specific services B

roadcasting

licence

Under the old licensing

framework all activities related to

the provision of a particular

service are vertically integrated

for the provision of that service

39 31

- 713

133 28

130 25

© SKMM 2012

*


Content

• Introduction



7


63.9%

Household Broadband

Penetration (As of 28 August 2012)

17,500,000

Internet User Nationwide

5,700,000

Total Broadband Subscriptions

3,000,000

Total Mobile Broadband

Subscriptions

81%

3G Coverage on Populated Area

Communications and Multimedia Outlook……

95%

Cellular Coverage on Populated Area

37,000,000

Cellular Subscriptions

128.7%

Cellular Penetration Rate

11,300,000

3G Subscriptions

© SKMM 2012 8


0,0

50,0

100,0

150,0

200,0

250,0

300,0

350,0

Q3 Q4 Q1 Q2 Q3 Q4 Q1

Subscriptions ('000)

HSBB Subscriptions

2010

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

2006 2007 2008 2009 2010 2011 Q1 2012

Subscriptions (million)

Cellular Phones Subscriptions

0,0

2,0

4,0

6,0

8,0

10,0

12,0

2006 2007 2008 2009 2010 2011 Q1 2012

Subscriptions (million)

3G Subscriptions

© SKMM 2012 9


Communication & Multimedia Industry has contributed RM46.8 billion in 2011 compared to RM45 billion in 2010.

Telecommunication Sector 87%

Broadcaster 10%

Post 2%

Others 1%

Segment Revenue (RM)

Mobile 31.5 Billion

Fixed Line 9.2 Billion

Free to Air TV 1.0 Billion

Pay TV 3.2 Billion

Pos Malaysia 1.2 Billion

Others (ACE market) 0.7 Billion

TOTAL REVENUE 46.8 Billion

Mobile 66,5%

Fixed Line 20%

Pay TV 6,8%

Free to Air TV 2,1%

Pos Malaysia 2,5% Others

2,1%

© SKMM 2012 10


0

5

10

15

20

25

30

35

40

45

50

55

2006 2007 2008 2009 2010 2011

RM (billion)

Communications & Multimedia Industry Revenue (2006 - 2011)

Fixed Line Mobile Broadcasting Total (RM billion)

© SKMM 2012 11

12


Broadband Subs

1. Mobile Broadband

Sharp increase in Mobile Broadband is because of the distribution of Komputer 1Malaysia with WiFi services.

3G prepaid and 3G pay per use also included

2. xDSL

Low yearly growth

More promotion and awareness on fixed broadband can increase the take up.

3. WiMAX

Start to have subscription in 2010

Low take up increase is probably due to the quality of services.

4. FTTH and UniFi

Start to have subscription in 2010

High demand and show encouraging take up

More promotion and awareness on UniFi can increase the take up.

xDSL : ADSL, SDSL & VDSL

Wireless BB : Mobile broadband, 3G(PPU) & Prepaid, WiFi

Others : Satelite, EV-DO, Fixed Wireless, CBC, others.

0,00

500,00

1000,00

1500,00

2000,00

2500,00

3000,00

3500,00

2004 2005 2006 2007 2008 2009 2010 2011

Technology 2004 2005 2006 2007 2008 2009 2010 2011

xDSL (fixed BB) 247.8 477.7 735.9 1002.4 1284.8 1513.5 1777.5 1791.8

Wireless BB - 5.9 13.1 96.3 386.2 927.8 2607.6 3212.6

WiMax - 0 0 0 0 0 233.4 242.2

FTTH & UniFi - 0 0 0 0 0 38.0 248.9

Others 1.8 14.4 10.5 10.4 31.2 66.3 66.8 75.5

Wireless BB

xDSL (fixed BB)

WiMax To

tal

Su

bsc

rip

tio

ns

(‘0

00

)

* Data as of 31 Dec 2011 Source: MCMC

FTTH & UniFi

Total Subscriptions (‘000)

Demand for higher speed continues to fuel broadband growth in fixed and mobile services by the various technology offerings in the market

© SKMM 2012 12


Content

• Introduction



13


The industry has been growing annually but we need to gear up to broadband ICT and new growth areas to keep the ICT growth momentum to help drive the achievement of Vision 2020

2004 2010 2007 2006 2008

National Strategy Development Implementation & Transformation

Governance and Monitoring

National Broadband Plan

MyICMS 886 High speed broadband as the catalyst for broadband development

• Formation of Cabinet Committee on Broadband (CCB)

Broadband Implementation Strategy

HSBB PPP Agreement between Government and Telekom Malaysia

Launching of HSBB services and National Broadband Initiatives (NBI)

Economic Transformation Program (ETP) and NKEA CCI

© SKMM 2012 15


National Broadband Implementation Strategy – a supply and demand strategy

Incentives and facility-based competition based on major technologies (xDSL, WiMAX and 3G/HSDPA)

USP programs roll out (collective and individual access)

Demand Supply

Average speed of 2Mbps

Target capitals, industrial areas and development regions

Public Private Partnership

(PPP) arrangement for infrastructure roll out

Speed exceeds 10Mbps

Broadband for General

Population (BBGP)

1

High Speed Broadband

(HSBB)

2

Awareness 1

Attractiveness 2

Affordability 3

Continuous government

and private sector awareness initiatives

Enhance and promote e-

government, e-education and e-commerce initiatives

Improve and align online

content strategies and activities

Leverage on development

of traditional information resources

Widen community access

facilities and deployment

Develop initiatives to reduce/ improve broadband access costs (PC, subscription etc)

16 © SKMM 2012


Community Broadband

Centre (CBC)

Community Broadband

Library (CBL)

Netbook 1Malaysia

Public Cellular

Time 3

Kampung Tanpa Wayar

• Objective: To drive the national

broadband penetration rate

• Total Projects Value: more than

RM2bil

National Broadband Initiatives – a package of initiatives on

supply and demand, launched on 24 March 2010 to make available

broadband service for all

National Broadband Initiative

99 Completed

820,944 Distributed

2776 completed

521 completed **Data As of Aug 2012

© SKMM 2012 17


HSBB

HSBB

HSBB

HSBB

HSBB

HSBB

HSBB

HSBB

HSBB

HSBB

HSBB

HSBB

HSBB

1,200,000

Ports Installed (As of Aug 2012)

445,000

HSBB subscribers (As of Aug 2012)

93

HSBB Exchanges (As of Aug 2012)

National Broadband Initiatives - High Speed Broadband (HSBB), a Public

Private Partnership Project to support the demand for high speed services

17

Companies signed

up for HSBB Transmission

4

Major operators signed

up for HSBB Access

HSBB Project – Key Elements

• Total cost of RM11.3b (USD3.2b), with RM2.4b (USD0.7b)

government participation

• Investment include last mile, core and international

connectivity, supported by content platform development

• Project period of 10 years (2008 – 2018)

• 1.3 million HSBB ports by end 2012

• 95 Exchanges to be upgraded around the country

• Coverage roll-out areas include inner Klang Valley,

industrial areas and Iskandar Malaysia

• Open Access for HSBB wholesale services

© SKMM 2012 18


National Broadband Initiatives - Creating and

accelerating demand through awareness, attractiveness and affordability

Awareness - Conduct broadband carnival with the cooperation with KPKK, MCMC, service

providers and other government agencies

- Conduct ICT training to public community

Attractiveness - E-Government initiatives by MAMPU

- E-Learning initiatives by MOE

- Creative content development by MDeC /FINAS

- Initiatives under NKEA CCI such as Connecting 1MY, MY Creative Content, E-Healthcare, Track & Trace

Affordability - 1Malaysia netbook program

- Introduction of affordable broadband packages

- NKEA CCI EPP Smart Network

19 © SKMM 2012


Economic Transformation Programme - A comprehensive effort towards a high income nation by 2020, sustainable and all inclusive

Oil, Gas & Energy

Palm Oil

Financial Services

Tourism Business Services

Electronics & Electrical

Wholesale & retail

Education Healthcare

Communications, Content and Infrastructure (NKEA CCI)

Agriculture Greater KL

GDP/ capita

GDP/ capita

2009 2020

USD 6,700 USD 15,000

12 National Key Economic Areas (NKEAs)

© SKMM 2012 20


2010 53.5%

2013

2015

2018 2020

2015 • Target 2015, 75% broadband penetration • Increase in quality and speed of services

• HSBB dan BBGP • Contribution of 1% to GDP • 135,000 new jobs created

2020 • Target of USD 15.1 B (RM50.3 B) GNI in Communication Content and Infrastructure sector (NKEA CCI)

Entry Point Projects (EPP)

USD5.2 B RM16.1 B

Business Opportunities (BO)

USD3.7 B RM11.7 B

Fixed

Mobile

Regional

Post, Courier, Broadcast

CAGR 7.8%

CAGR 7.8%

USD6.2 B

2009

2020

Total EPPs

Total BOs

Total EPPs &

BOs

GNI 2020 (billion)

Jobs Created 2020

USD5.2 B RM16.6 B

USD3.7 B RM11.7 B

USD 8.9 B RM28.3 B

25,899

17,263

43,162

GNI contribution Communication Content and Infrastructure USD billion

USD15.1 B

RM50.3 B

RM22 B

Looks toward increase in broadband penetration and quality of services to support the vision to become a country with high economic income in 2020

© SKMM 2012 21


Serving Tomorrow

Change of shifting from infrastructure and access to content and application

Pushing Boundaries

Leverage CCI sector in other sector to provide access, devices, applications and contents

Enhancing Foundation

Capitalize on next generation infrastructure opportunities and build infrastructure to support future growth with focus on coverage, affordability and quality of access

Communications, Content and Infrastructure

NKEA CCI aims to raise the sector GNI from RM22 billion in 2009 to RM50.3 billion in 2020

Post, Courier,

Broadcast

Mobile

Fixed

2009

RM22 billon

Entry Point Project (EPP)

RM16.6 billion

4 Business Opportunity

(BO)

RM11.7 billion

Job Created

43,000

2020

RM50.3 billion

© SKMM 2012 22


Broadband for All

Establishing broadband as an essential service to

Malaysians on par with other utilities, e.g. water

and electricity

Extend Reach

Acceleration and expansion of broadband coverage in non-urban

areas (e.g. to Zone 2 and Zone 3)

Smart Network

Differentiated pricing to provide higher quality and more affordable service,

based on QoS

Regional Network

Capacity increase of Malaysia’s submarine cable network to

lower international IP connectivity costs

E-Learning

Integrated approach to provide access, devices, and platforms/content/

applications to benefit the learning Rakyat

E-Health

Networked healthcare providers to each other and to their patients to

improve productivity and information management

E-Government

Increasing the accessibility, speed, and transparency of

government services through communications

technology

MY Creative Content

Local content hub to vitalise creative sector, reduce

dependence on international connectivity,

and export content

Track & Trace Using ISO 18186 RFID E-Tag for

monitoring of containers to facilitate customs clearance,

both within domestic free zones, ports and other

bottlenecks, as well as on selected international routes

Connecting 1MY Next-generation services to

provide ubiquitous connectivity and compelling

services for the Rakyat at home, in the workplace,

and ‘on-the- move’

Enhancing Foundation Pushing Boundaries Serving Tomorrow

MY Creative

Content

Track & Trace

Connecting

1MY

E-Learning

E-Health

Broadband for

All

Extended

Reach

Smart

Network

Regional Network

E-Government

NKEA CCI - 10 Entry Point Projects (EPPs)

© SKMM 2012 23


EPP E-Government aims to enhance

access and delivery of government

services to the public and businesses

eGovernment - More than 6,000 government services and more than 3,000 services are available online

Digital Document Management System

• Replace paper archive to digital archives

My-Meeting

• Web based meeting and meeting

decision monitoring

MyEmail

• Unique Malaysian

email account for

the latest news and

events by Govt

Government Regional Electronic

Advancement Transformation (GREAT)

• One stop centre for investors to deal with

the economic growth corridor

development authority

MyMobile

• Develop Government mobile services

E-Rating

• To provide feedback and evaluation

of the electronic services offered by

the agency.

MyGovernment Online Portal

• To enhance MyGovernment portal

as Single Government Window

Disable Person System

(SMOKU)

• Enhancement of SMOKU

system to apply card

through online application

© SKMM 2012 24


My Creative Content

• Digitization of local analogue content – 28,000 hours

• Creation of platform and distribution channels – FTA, DTH, Mobile, Transit TV, Select TV, MedikTV, WebTV, IPTV/CableTV

• Formation of Malaysia Creative Content Association (MCCA) to promote local content

• Funds from Government in the form of grants (MCMC CIDF - RM100m), venture capital (MyCreative Venture - RM200m) and loan (National Savings Bank - RM200m) to facilitate development

• Private investments (RM200m ASTRO, RM250m Media Prima)

• Creative talents and skills development and the Creative Content Industry Guild (CCIG)

• Collaboration in promoting local production at international markets

MY Creative

Content

© SKMM 2012 25


DVB-T2 Trial

DVB-T2 field trial and workshop was successfully completed in Kuala

Lumpur in March 2011

Digital Terrestrial Television

• Tender for Assignment of Spectrum to a Common Integrated Infrastructure Provider to build and operate up to 3 MUX – closed on 24 July

• Standard Radio System Plan (SRSP) and Standards are ready;

• DTT service in bands from 174MHz to 230MHz and 470MHz to 742 MHz expected to start rollout in June 2013 over a 30 months period;

SPECTRUM UPDATES

© SKMM 2012 26

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Spectrum Plan

Spectrum for 4G (LTE-WiMax) • 2.6GHz

• Planned for service beginning 2013

• Administratively assigned to existing and 1

new player

• Trials are being conducted by operators

• Others

• After analogue TV switch off - 800MHz and

future consideration for 700MHz

SPECTRUM UPDATES

• Revision of Spectrum Plan November 2006

• Released in September 2011

© SKMM 2012 27


Creating mega lifestyle eco-systems to promote use of digital

applications to enhance competitiveness and social life – a

Digital Lifestyle initiative focusing on linking the Internet of Things

(IoT) to the Internet of People.

© SKMM 2012 28


People friendly commuting

Home & Community Living

DIGITAL LIFESTYLE

ECO-SYSTEM

Food & Drug Traceability Connected Healthcare

Potential areas in IoT in Digital Lifestyles being explored, nurtured and developed to drive further growth and lifestyle transformation

© SKMM 2012 29


MCMC aims to drive transformation towards digital living or a Digital Lifestyle.

Better quality of life, more productive and competitive. We are guided by these

four principles.

A call for collaboration or partnership in the transformation to a digital lifestyle

1. Sustainability

2. Leverage upon existing infrastructure

4. Benefits all 3. High

economic impact

We look forward to ideas and innovation and collaboration/partnership in

developing, delivery and promoting uptake of more services in Digital Lifestyle.

© SKMM 2012 30


Regulating New Media External

MCMC Actions/Resolutions

Law

Enforcement

Agencies

Consumer

Complaints

Bureau

Cyber Watch

Centre

Advise/info Sharing

with relevant

stakeholders

Take down/Inform

Content Hosting

Providers (Foreign)

Gather evidence

for investigation

prosecution (Local)

Prosecution under

relevant laws of

Malaysia

Inputs from public &

other Govt. Agencies

SECURING THE CYBER ENVIRONMENT


© SKMM 2012 31


Educating and raising awareness

Q1 Q2 Q3 Q4 Q1 Q2

Urban Safety

Forum For Ladies

Talks on Cyber Laws

In Malaysia - Judicial

and Legal Training Institute

Talks on Cyber

Security Facebook: Is it

Unhealthy for

Families?- Community Forum

“KLIK dengan

BIJAK “

Kampung Tanpa

Wayar & Netbook

1Malaysia

SECURING THE CYBER ENVIRONMENT


© SKMM 2012 32


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| M A L A Y S I A N C O M M U N I C A T I O N S A N D M U L T I M E D I A C O M M I S S I O N |

Thank you

MCMC Contact Information: General Line : +60 3 8688 8000 Facsimile : +60 3 8688 1007 www.mcmc.gov.my For further information and collaboration: Toh Swee Hoe Email: [email protected]

© SKMM 2012

http://www.mcmc.gov.my/

mailto:[email protected]