As data traffic surges, Malaysian telcos opt to watch costs instead of improving service

Malaysian Insider, 10 December 2013

Mobile operators are looking to reduce their cost structure rather than improve services as network congestion occurs due to Malaysia’s high mobile data demand, said Frost & Sullivan in a report yesterday.

The report by the global consulting firm revealed that demand for internet access surged with 3G subscriptions surpassing 14.5 million in 2012, charting an annual growth of 41%. Subscriptions for 2013 are expected to reach 18.4 million by the end of this month.

“However, the increased data demand and spikes in geographies are leading to network congestion/outage,” said the report.

“To cope with increasing diverging cost and revenue market realities due to surging data traffic, service providers are focusing predominately at reducing cost structure rather than top line improvements,” it added.

Malaysia’s mobile penetration rate reached 146% in the third quarter of 2013, with 3G subscriptions amounting to more than 17.4 million of the total of 43.6 million mobile subscriptions. In 2012, there were only 14.5 million 3G subscriptions out of 41.3 million subscriptions.

Mobile operators are dealing with the surge by sharing facilities, thus cutting operational costs to handle the massive flow of data.

“For example, take Maxis and REDtone’s arrangement to share its 4G (LTE) infrastructure. Infrastructure sharing allows defrayment of cost, risk sharing… enabling parties to meet regulatory obligations with reduced financial burden,” said Ajay Sunder, senior director of telecoms, Frost & Sullivan Asia Pacific.

However, Sunder noted the current mechanism employed by operators is not sustainable when they are forced to consider “lowering the overall cost of network and maintain a scalable network”.

Judging by the rapid growth of mobile subscriptions that is expected to hit 50 million in two years, operators would expect an annual growth rate of 6% even as the market reaches saturation.

The increase is attributed to the current trend of consumers owning a second device, be it a smartphone or a tablet. Another factor is the government’s Youth Communication Package (YCP), a plan that offers a RM200 rebate to those aged 21-30 with a monthly income of RM3,000 and below.

The increasing demand for smart devices in Malaysia saw shipments shoot up to 49.6% out of the total mobile phone shipments made in the first half of 2013, according to International Data Corporation (IDC) Asia/Pacific Quarterly Phone Tracker. The jump was only 31.8% for the same period last year.

IDC credited the increase to vendors bringing in low-cost smartphones that encouraged sales to grow.

“The rebates brought about a surge in shipments of low-cost smartphones during the first half of 2013 as vendors launched more than 25 new sub-RM600 models in Malaysia,” said Ryan Lai of IDC Asia/Pacific in an article by Digital News Asia. 

Kenneth Eswaran behind new pay-TV venture

By Jahabar Sadiq
Malaysian Insider, 28 October 2011

 

KUALA LUMPUR, Oct 28 — Businessman Datuk K.K. Eswaran, who has close ties with Datuk Seri Najib Razak’s family, is behind the new cable television venture Nilamas Corporation Sdn Bhd, which is to start service as early as the first half of next year, say industry sources.
The Malaysian Insider understands that the company, which expects to spend RM2 billion to challenge satellite TV operator Astro for a share of the local market, has now been renamed Asian Broadcasting Network Sdn Bhd. The new brand will be launched next month.

“Datuk Kenneth Eswaran (picture) is behind this venture and his ties with the first family have ensured he got fast approval for the required licences,” an industry source told The Malaysian Insider, referring to the Indian businessman’s preferred name.

Those close to the venture confirmed Eswaran’s interest, pointing out that Nilamas shares two common directors with the businessman’s main corporate vehicle, Pinehill Pacific Berhad. The two are former top civil servants Tan Sri Mohamad Noor Abdul Rahim and Datuk Nik Mohd Amin Nik Abu Bakar.

“Eswaran is politically connected. It’s no surprise he got quick approvals but he now has to launch it,” another industry source said, confirming the new brand name launch is slated for next month.

Eswaran is the deputy executive chairman of Pinehill Pacific, where he is a substantial shareholder. The company has made a few name changes from its original Benta Plantations to Best World Land Bhd in 1995, a year after Eswaran came in, and then renamed Multi Vest Resources Bhd in 2000. It took its present name last January.

The businessman was elected president of the Malaysian Associated Indian Chambers of Commerce and Industry (MAICCI) in June 2008 and was linked to Najib’s family by popular blogger Raja Petra Kamarudin, who edits the Malaysia-Today news portal.

The Star daily reported last week that Nilamas had secured all the requisite licences to offer digital cable TV in the country, and will compete in the pay-TV space with Astro All Asia Networks plc (Astro) and several IPTV providers including Telekom Malaysia Bhd (TM).

The set-up cost for the cable network offering is expected to be more than RM2 billion over a five-year period and Nilamas, according to sources, is looking at a 40:60 equity-debt combination to fund its venture.
Retired navy chief and former armed forces chief Admiral (Ret) Tan Sri Mohd Anwar Mohd Nor is one of the directors of the company, which has invested in a building in Puchong for its broadcasting centre.

The newspaper also said the new station plans to offer entertainment and educational programmes with an interactive focus.

Nilamas secured the requisite licences to offer subscription broadcasting in the country from the industry regulator, Malaysian Communication and Multimedia Commission, on August 11 and with this licence it is allowed to offer broadcasting services for a fee.

The company also has network facilities licences that will allow it to build up a network and also a network service provider licence. The licences are valid for five years.

It has begin hiring people and already has a chief executive officer, television industry veteran Sreedhar Subramaniam, who had served as chief financial officer in NTV7 and also as chief executive of The Malaysian Insider.

The Star quoted sources as saying the company now has 20 people and is looking to expand to 800 by the time of its launch.

Sources also said the company was in talks with numerous content providers but added that it might find it difficult to secure content already sold to competitors such as Astro and TM.

Astro began service in 1996 with 22 channels and took a decade to break even. It currently broadcasts some 125 pay-TV channels in four major languages including eight channels in high definition across Malaysia and Brunei to more than 2.93 million households.

Sources told The Malaysian Insider that the new venture would use fibre for its backhaul which will be leased from fibre operators such as TM, Time dotCom Bhd, Tenaga Nasional Bhd, Fiberail and Fibercom.

MCMC’s new chairman faces many challenging issues

by B.K. Sidhu

STAR, 21 October 2011

DATUK Mohamed Sharil Tarmizi has got himself onto a “hot seat”.

The task at hand is arduous as there are a lot of issues that need sorting out.

Despite that, there were many others vying for the hot seat. Perhaps it is the power that comes with the position that attracts so much interest.

Sharil is the new chairman of the Malaysian Communications and Multimedia Commission (MCMC) and his appointment is effective Sunday. He takes over from Tan Sri Khalid Ramli, who during his two-year term, was well known for helping to widen the reach of Internet to the interiors of the country.

Sharil is akin to a homegrown candidate as he has been with the commission for nearly a decade, although he left after his first six-year stint but came back in 2008 to become chief operating officer.

Globally, he has worked on various projects with the International Communications Union. So his appointment as MCMC chairman came as no surprise to the industry.

But the job that awaits him may surprise him as there are loads of issues and the journey could be arduous.
The biggest issue is transparency and he needs to address that, be it from the way the Universal Service Provider funds are used to how the 2.6G spectrum is being allocated to nine players, the deafening silence over the 700MHz spectrum and the long-overdue tender bid for terrestrial digital TV, among others.

The way he handles them would be closely watched both locally and globally as foreign investors want to know how sound the policies are for them to invest, or whether the would be flip-flops.

This becomes more pressing since the Government has said in the Budget 2012 proposals that 17 services sub-sectors, including telecoms, would be liberalised and the idea behind that is to attract foreign direct investments (FDIs). The country needs FDIs and the area of content and services can do with some foreign players.

Looking from the licensing regime, it took a new format and course when the vertical type of licensing that is based on technology type of services was changed to a horizontal type of services, thereby creating different categories of players such as network facilities providers (NFPs), network service providers (NSPs), application service providers (ASPs) and content application services providers (CASPs).

As someone put it: “It is meant to be an inverted pyramid with smaller numbers of NFPs, a bit more NSPs, and open basket of ASPs and CASPs. The rationale was to have more NSPs and ASPs so that there will be competition and choices but along the way, we may have given too many NFPs and this has resulted in a lot of investments going into network infrastructure building, thereby creating duplication of networks.''

There are also lessons to be learnt from the second round of 3G spectrum award. One company that deserved the spectrum did not get it but two others were given. One of the two did not roll out the services and eventually sold the spectrum to the deserving company, but at a high premium. So, future award of spectrum has to be done with thorough evaluations.

Malaysia was one of the first countries to introduce convergence but it is hard to benchmark the achievements because along the way, the theme of convergence somehow has got diluted.

Whatever has been done up to now has served a specific purpose although the glaring issue over clarity remains. We need the better of it.

Perhaps the first thing that Sharil can do is to take stock and do some soul searching to set things straight for the better of consumers, the industry and the nation. But time is a factor and he knows that too well.

My bet is that the dynamics of change is apparent at the commission. So, stay tuned.

Put phone tax on hold, telcos told

STAR, 11 September 2011

PUTRAJAYA: The Information, Communications and Culture Ministry has “blocked” plans by the telcos to impose a 6% service tax on prepaid mobile phone services.

“I have intimated to the telcos to stop the implementation of the service charge at this untimely hour,” said minister Datuk Seri Dr Rais Yatim.

“I will raise the issue with the Cabinet on Wednesday,” he said yesterday.

“My ministry does not support the move.”

Dr Rais said the Malaysian Communications and Multimedia Commission (MCMC) has also been directed to study the mobile operators' licensing regulations on service tax.

“We will see what the regulations state,” he added.

Dr Rais advised the telcos to think about their subscribers, saying that some of the firms had been reaping profits of between RM800mil and RM1.2bil annually.

“They have been earning attractive profits, notwithstanding paying the levy on behalf of subscribers since 1998,” he said.

Meanwhile, Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob also planned to bring the issue up at the Cabinet meeting.

He said there had been numerous calls for the telcos to upgrade their services “which had not been taken seriously”.

“Yet, they now want to impose service tax on customers,” he said.

Prime Minister Datuk Seri Najib Tun Razak had on Friday said the plan to impose the service tax from Thursday was not approved by the Finance Ministry, adding that the people were already being burdened by the rising cost of living

Move by telcos to impose 6% tax on prepaid lines comes under fire

STAR, 10 September 2011

KUALA LUMPUR: Calling it difficult to accept, the Prime Minister has joined in the chorus of people against the move by telcos to impose 6% service tax on prepaid mobile phone users.

Datuk Seri Najib Tun Razak said the move comes at a time when the Government was trying to ease the burden of the rakyat’s who are already hit by the rise in living costs.

He added the move was not approved by the Finance Ministry as the decision to impose taxes was taken by the telcos themselves.

“I have received many reactions and feedback from the people,” he told reporters yesterday after launching Maybank’s new corporate logo.

“The move to impose the service tax on consumers is very unpopular and difficult to accept.”

MCA Youth chief Datuk Dr Wee Ka Siong said the service tax was a huge burden to the people.He added mobile phones were an essential item to consumers and played a major role in the daily life with most of the prepaid users coming from the lower-income group.

It was reported that from Sept 15 onwards, prepaid users and those purchasing starter kits would need to pay an extra 6% as telcos agreed they would no longer absorb the service tax, which was introduced in 1998.
Umno Youth chief Khairy Jamaluddin described the decision as “unreasonable”.

“Boss @NajibRazak, the decision to impose tax on prepaid users is unreasonable and it would burden the rakyat. I oppose it. Please review it,” he tweeted.

PKR vice-president Tian Chua said the Government must intervene immediately to help low-income earners.
He also noted that prepaid plans were unfair to users by design as users paid for their usage up front.

Consumer groups were also up in arms over the increase, which they have lambasted as unfair.

Consumers Association of Penang president S.M. Mohamed Idris called on the Malaysian Communications and Multimedia Commission to stall the move.

He added mobile phone prepaid users faced the brunt of unfair terms and conditions imposed on them, especially when the balance in their account was forfeited when they did not reload within the validity period.

He suggested that a prepaid number should have lifetime validity and be activated at the customers convenience.

Muslim Consumers Association Malaysia activist Datuk Nadzim Johan said the increase was unfair and ill-timed when consumers were tightening their belts over the increasing cost of other essential goods.

Fomca secretary-general Muhammad Sha’ani Abdullah said the telcos were already pocketing extra from their customers with their “call block” formula.

“If a telco charges RM0.30 per minute with 30 seconds per block, this means that you pay RM0.15 whether you use the phone for only 10 seconds or 30 seconds,” he said.

“This means the telcos are already making money from the unused seconds. Consumers have already been over-paying for years.”

Astro, Putrajaya in rate hike dispute

Malaysian Insider, 1 July 2011

KUALA LUMPUR, July 1 — Pay television operator Astro said today its rate hike was done after consulting regulators, hours after the Cabinet told the company to get clearance from the Malaysian Communications and Multimedia Commission (MCMC).

Information Communication and Culture Minister Datuk Seri Dr Rais Yatim had earlier said the Cabinet had rejected the rate hike announced last month.

“Astro noted the minister’s statement with concern as the price revision was conducted in consultation with the Malaysian Communications and Multimedia Commission (MCMC) and in accordance with the Communications and Multimedia Act (CMA) 1998 and the licence conditions,” an Astro spokesman said in a statement.

Astro recently announced that it would be streamlining the packages it was offering, which would take effect on July 11.

According to Astro, following the streamlining exercise, customers could make savings of between RM4 and RM14.95 or pay nominal increases of between RM1 and RM15, depending on packages preferred.
It is understood that Astro had notified MCMC about its proposed rate hike on May 13 but did not receive any feedback.

Bernama Online quoted Rais as saying that the matter was discussed at today’s Cabinet meeting and that the members felt it was not appropriate for Astro to raise its rate at this time.

“I agreed that Astro’s rates could only be hiked with MCMC’s approval and that any hikes must be reasonable and conform to the law,” he told reporters after chairing his ministry’s post-Cabinet meeting at Angkasapuri here.

He said Astro had violated MCMC’s regulations by issuing notices on its rate hikes to customers without the commission’s clearance.

“As such, I have asked MCMC to take appropriate action and instruct Astro not to continue with the rate hike until such a time deemed more suitable.

Explaining what he meant by “appropriate action”, Rais said this was up to MCMC to determine and that it could be a fine with the amount as allowed under the Communications and Multimedia Act 1998.

Rais: Telco chiefs calmed by spectrum explanation

By Yow Hong Chieh

December 01, 2010

Malaysian Insider

Rais (right) blamed the media for the telco chiefs’ discontent over the alleged spectrum award. — file pic

 

KUALA LUMPUR, Dec 1 — Information, Communications and Culture Minister Datuk Seri Dr Rais Yatim today said telco players’ fears have been successfully allayed following their meeting with the prime minister over the YTL-700MHz issue.
“We gave an explanation and they (the telco chiefs) were satisfied because the 700MHz will always be there,” he told reporters here after unveiling his ministry’s new logo.

Rais admitted in Parliament yesterday that Datuk Seri Najib Razak met with industry players recently to discuss future plans for Malaysia’s communications sector.

However, The Straits Times reported that during the closed-door meeting, Najib had also told the Malaysian Communication and Multimedia Commission (MCMC) to consult “the private sector before awarding the rights of the 700MHz spectrum”, which is seen as a key component of 4G high-speed wireless broadband.

The Malaysian Insider also understands that Najib has directed regulators to review the 700MHz apparatus assignment rights allegedly granted to YTL Communications Sdn Bhd (YTL Comms), following the MCMC’s denial on the matter on Sunday.

The country’s telcos have been up in arms ever since MCMC’s chief planning and development officer Toh Swee Hoe told The Edge weekly that YTL Comms will get an apparatus assignment (AA) in the 700MHz for its hybrid television service.

Broadband spectra are now highly coveted by telecommunications and multimedia companies, and the alleged award of the AA in the prized spectrum to YTL Comms has riled the country’s telcos, who say it can be used to offer their services in rural areas.

They fear it would allow a new provider like YTL “a stranglehold over the next wave of new technologies, called Long Term Evolution (LTE) which will power the 4G market”.

YTL Comms has denied that it will repurpose the spectrum for its broadband service, pointing out that it already has the 2.3GHz spectrum and a 20MHz block within the 2.5/2.6GHz spectrum which MCMC recently allocated.

Rais also reiterated that the 700MHz spectrum has never been awarded to any party as MCMC was keeping it for digital broadcasting purposes.

“Because the media do not understand, they have published preliminary news which caused some telco chiefs... to feel that this jeopardises their business,” he said.

He gave assurances that the 700MHz spectrum will be expanded and allocated accordingly to other industry players “based on need”.

On Sunday, MCMC denied that YTL Comms can operate its television service on the 700MHz band, saying “MCMC would like to reiterate that no spectrum assignment has been issued to YTL of the 700MHz spectrum band for pay-TV broadcasting, hence the reports and commentaries on a spectrum issuance are inaccurate.”

However, in the same statement, MCMC said it was examining a YTL business plan for digital TV, which will operate within the 700MHz spectrum under the National Spectrum Plan

Rais grilled in Parliament over YTL-700MHz saga

UPDATED @ 09:27:25 PM 30-11-2010

By Clara Chooi

November 30, 2010

Malaysian Insider

KUALA LUMPUR, Nov 30 – The Najib Administration was forced to stave off continuous accusations of cronyism in Parliament today for its alleged award of the prized 700MHz spectrum to YTL Communications Sdn Bhd (YTL Comms).

Information, Communications and Technology Minister Datuk Seri Dr Rais Yatim manned the fort for a good hour when speaking on the issue and continued to deny that government regulator Malaysian Communication and Multimedia Commission (MCMC) had ever given approval to anyone to operate in the 700MHz band, which can be used for broadcasting or broadband services.

The issue was raised by Jeff Ooi (DAP-Jelutong) in the House when debating a RM10 pay cut motion for Rais, who accused the government of “quietly” awarding the spectrum to YTL Comms, a unit of tycoon Tan Sri Francis Yeoh’s YTL property-to-power group.

In his debate speech, Ooi said the alleged award had been shrouded in mystery and reeked of cronyism and lacked transparency.

“It also means that if YTL is awarded the spectrum without fair consideration given to other MCMC licensees in the industry, including Telekom Malaysia, Axiata, Maxis, Digi, Packet One and others. This has become a monopoly and is similar to a 100m race where YTL is give a 50m head-start privilege while the others are left behind.

“Why was YTL given this privilege?” he asked.

He added that without the apparatus assignment (AA) rights, other industry players like Axiata, Maxis and Digi would not be on a level playing field and would likely face a shutdown or be forced to buy bandwidth from YTL.

Ooi dared the ministry to come clean on the issue and questioned if the saga was a mere repeat of the sports betting episode earlier this year when the government flip-flopped on its decision to award a license to tycoon Tan Sri Vincent Tan’s Ascot Sports Sdn Bhd.

“I put it to you, Mr Minister, that you as the minister is fully aware that YTL was given the 700MHz spectrum in writing but the Prime Minister was forced to be dragged into this, and forced to do another flip-flop because of objections from Axiata and others?” he charged.

Last May, Tan had told Bursa Malaysia that his Ascots Sports Sdn Bhd had received a letter from the government dated January 13, 2010 that his sports betting licence had been re-issued.

But following the uproar that his announcement had caused and the silence from the government that followed, the licence was eventually rescinded.

In his response today, Rais stressed that the prized spectrum had never been awarded to anyone and claimed that Ooi’s debate was void of facts.

“The 700MHz spectrum was never awarded to anyone. So YB, you should first know the facts before you make such unfounded statements.

“The two spectrum commodities – the 700MHz and 2.6GHz spectrums – are important to help us in the future to compete in the communications sector.

“We have to be aware that the 700MHz spectrum is held by MCMC and is important for our future programmes in the country,” he said.

He added that despite what was reported in Singapore and local media, all allegations were merely “hearsay”.
“So I invite MP Jelutong to attend a briefing with the MCMC. Come and see for yourself where your debate stands.

“It is easy to use such eloquence to accuse MCMC but this should not be done. This is akin to punishing a person before asking the question, instead of asking the question first, and then meting out a punishment.
“I would like to state here that little knowledge is dangerous,” he said.

Ooi interjected at this juncture, pointing out that news of the contentious award of a 80MHz block in the 700MHz spectrum had hit the headlines on November 26.

“But it took MCMC 48 hours to deny it. And why was there a special meeting held between the chiefs of Axiata with the Prime Minister? If there is no wind, the leaves on the tree will not sway,” he said.
Rais continued to deny the rumours, however, and reasoned that the Prime Minister had every right to meet with the telco chiefs.

“I invite you again to check your facts. The 48-hour issue is not the problem. The problem is whether what you say is based on facts or not. So let me repeat the facts – the 700MHz spectrum was not given to anyone,” he said.

Rais admitted to a meeting with the Prime Minister and industry players recently and revealed that it was also attended by the country’s economic adviser.

“But discussions centered on the country’s plans for the future in the communications sector. So in the future, whether or not we choose an auction or to create new rules, what is more important is that we do not lose our source of revenue,” he said.

Rais pledged the government’s intention to incorporate the services of the new players in the telco industry, insisting that none would be left behind.

The Malaysian Insider reported today that Prime Minister Datuk Seri Najib Razak had directed regulators to review the 700MHz apparatus assignment rights allegedly granted to YTL Comms, following the MCMC’s denial on the matter on Sunday.

In its denial, the regulator had however conceded that it was presently “assessing a detailed business plan by YTL for the roll out of digital pay-TV and not 4G mobile services as reported.

“MCMC would like to reiterate that no spectrum assignment has been issued to YTL of the 700MHz spectrum band for pay-TV broadcasting, hence the reports and commentaries on a spectrum issuance are inaccurate.

“The operating licence issued to them on August 30 is for a content applications service provider individual licence, to provide subscription-based Internet protocol television services using their 2.3GHz WiMAX network,” it said in its statement on Sunday.

Industry sources were tight-lipped over a closed-door meeting between the prime minister and telco executives but The Straits Times reported that Najib had told the MCMC to consult “the private sector before awarding the rights of the 700MHz spectrum”, which is seen as a key component of the 4G high-speed wireless broadband.

He also directed the ministry to complete its review before the end of January, and to submit recommendations on how the government should proceed with the award, executives familiar with the meeting told The Straits Times.

YTL Comms executive director Datuk Yeoh Seok Hong had told The Malaysian Insider last week that the company had a five-year concession to operate in the 700MHz band for a pay-television operation competing with the dominant Astro network.

MCMC has regulations on award of spectrum but executives familiar with the process told The Malaysian Insider that the regulator had ignored the rules in the recent apparatus assignment exercise for the 700MHz and the 2.5/2.6GHz spectrum recently.

Broadband spectrums are now highly coveted by telecommunications and multimedia companies, and the alleged award of apparatus assignment in the prized spectrum to YTL Communications had seriously upset the country’s telcos who can use it to offer their services in rural areas.

They had feared that it would allow a new provider like “YTL a stranglehold over the next wave of new technologies, called Long Term Evolution (LTE) which will power the 4G market”.

But in its release, the MCMC said: “Under Malaysia’s National Spectrum Plan, the 700MHz spectrum band is allocated for broadcasting service, and not for LTE or 4G mobile services as speculated.”

Malaysia aiming for LTE auction in 2011

Malaysia aiming for LTE auction in 2011
Nicole McCormick April 26, 2010
telecomasia.net

The Malaysian government aims to auction three spectrum blocks at 2.6Ghz for LTE next year.

Toh Swee Hoe, senior director research and planning at the Malaysian Communications and Multimedia Commission (MCMC), told telecomasia.net it expects to sell two 70MHz blocks at 2.6GHz and one 50MHz block.

“There will be a public consultation later this year with industry on the marketing plan for the 2.6GHz,” Toh said.

But with only three proposed LTE licenses, one of Malaysia’s four cellcos – Maxis, Celcom, Digi and U Mobile – will miss out on the valuable broadband spectrum.

All four operators are offering HSPA services today. The natural technology progression will thus be LTE in a few years’ time.

In the meantime, the MCMC is conducting closed consultations with all four operators about refarming 2G spectrum at 850MHz, 900MHz and 1800MHz for 3G.

“Bids for the new tenure will limited to only [existing] 2G-3G operators,” said Toh on the refarming exercise.

The battleground for telcos in Malaysia is in the broadband space as operators strive to achieve the government’s goal of 50% household broadband penetration by year-end.

At the end of 2009, the penetration rate was 38.6%.

“We should achieve the 50% target,” said Toh.

He said the goal was dependent on 1 million netbooks with broadband subscription being distributed by end 2010.

If that happens, this “should bring our penetration to over 3 million households,” thus the 50% target will be reached, said Toh.

Source: http://www.telecomasia.net/content/malaysia-aiming-lte-auction-2011

SKMM: M'sia Today block order stands, probe underway

STAR, Thursday September 4, 2008

KUALA LUMPUR: The Malaysian Communications and Multimedia Commission's (SKMM) directive to internet service providers (ISPs) to block access to the Malaysia Today portal still stands pending an investigation to determine if its editor should be charged.

SKMM chief operating officer Mohamed Sharil Tarmizi, when contacted Wednesday, said an investigation was underway to determine whether or not to charge the portal's editor Raja Petra Kamaruddin under Section 211 or 233 of the Communications and Multimedia Act.

Section 211 states that no content applications service provider, or other person using a content applications service, shall provide content which is indecent, obscene, false, menacing, or offensive in character with intent to annoy, abuse, threaten or harass any person.

Mohamed Sharil Tarmizi - Filepic

A person who contravenes this is liable to a fine of not more than RM50,000 or imprisonment for a term not exceeding one year or both, and shall also be liable to a further fine of RM1,000 for every day or part of a day during which the offence is continued after conviction.

Section 233 is on improper use of network facilities or network service and related to communication that is obscene, indecent, false, menacing of offensive with intent to annoy, abuse, threaten or harass another person.

The offender is liable to a fine not more than RM50,000 or not more than one year's jail or both, and shall be liable to a further fine of RM1,000 for every day during which the offence is continued after conviction.

Mohamed Sharil said that access to website was blocked after the Commission deemed the postings had contravened the Act for inciting and being insulting against Islam.

He claimed the commission had received several complaints from the public, adding that the preventive measure was taken under Section 263 of the Act.

On criticisms that blocking access to the website was against freedom of the Internet, he said that SKMM was merely “doing its job."

“We want to promote ethical and responsible blogging. We want to make the online space better still, with fervent debates, but in a civil and responsible manner."

Raja Petra has said that blocking access to his portal was a breach of the Multimedia Super Corridor (MSC) charter and that he would turn it into "a big issue."

Under MSC Malaysia's 10-Point Bill of Guarantees, it is stated that that Government promised to “ensure no Internet censorship” as part of its commitment to ensuring the success of MSC status companies.

Section 3 of the Act states quite explicitly, "Nothing in this Act shall be construed as permitting the censorship of the Internet.”

It is understood that only TMnet, the No 1 ISP in the country, has complied with SKMM's directive. Malaysia Today meanwhile has set up an alternate site that can still be accessed by TMnet users.

Home Minister Datuk Seri Syed Hamid Albar, while denying that the Government had instructed SKMM to issue the block order, claimed the site was being blocked because it had posted articles deemed insulting to Islam.

Mohamed Sharil meanwhile said that the Commission strongly advised members of the public not to forget that the law also applied in cyberspace.