2 Nov 2011Malaysia Broadband Overview

The Malaysian telecom industry was liberalised in the mid 1980’s, following a period during which it faced a number of restrictions. The Malaysian telecommunications market has all the characteristics of a developing communications industry in Southeast Asia. The fixed-line sector is dominated by the incumbent operator while the domestic mobile market is fast reaching saturation with local operators looking abroad for future growth.

In recent years, the government has continued to allocate capital for investment in telecommunications infrastructure despite economic conditions, and Malaysia now boasts extensive fibre-optic networks installed across the country. In March 2010, incumbent operator, Telekom Malaysia (TM) launched its high-speed broadband (HSBB) fibre network to the public. The government has also continued to support its strategic projects, resulting in projects like the Multimedia Super Corridor continuing to flourish. However, while this has meant that high-tech companies have been establishing a presence in Malaysia, broadband uptake among the general population has been slow, only beginning to expand strongly during 2010 and 2011. Broadband penetration by population stood at around 8 per cent by early 2011, despite the government’s National Broadband Plan which targeted 15 per cent penetration by 2010.

The slow take-up of broadband has been exacerbated by the fact that Malaysia’s broadband speeds have been notoriously slow and services costly compared to other Asian nations. According to a study released by the Asia-Pacific Carriers’ Coalition (APCC) in June 2010, Malaysia topped four out of five categories – differentiated by network speeds – covering Ethernet broadband monthly rental and installation costs. However, with four 3G players, a network of WiFi hotspots, four WiMAX operators and FTTH now available from Telekom Malaysia as part of the Government’s HSBB project, the broadband sector in Malaysia should witness a greater push towards wider broadband adoption in coming years. In 2011, Malaysia finally passed 50 per cent household broadband penetration.