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SECOND EDITION, August 2006.

Kementerian Tenaga, Air dan Komunikasi
Ministry of Energy, Water and Communications Block E4/5 Parcel E, Federal Government Administration Centre 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

CONTENTS
1. Introduction and Background on the National Broadband Plan

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2. MyICMS 886 and the need to deliver High Speed Broadband to the masses - new targets to achieve 3. Rationale of the NBP The Broad Challenge for Malaysia Quantification of Malaysia’s broadband ambitions 4. Strategies of the NBP Public sector initiatives Policies and Regulatory initiatives Plans for the Private sector 5. Role of the NBP Secretariat in rolling outbroadband 6. Establishment of Broadband Stakeholders Groups (BSGs) 7. Ninth Malaysia Plan (RMK9) and next generation broadband infrastructure 8. Summary - A look into the future world of Malaysian digital cities and ubiquitous societies 9. Appendixes

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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

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Introduction and Background on the National Broadband Plan
1. In 2002, there was a slight cheer and euphoria for the communications and multimedia industry in Malaysia which had just recorded a continuous three successive years of growth, following the turmoil of the Asian financial crisis of 1997 and 1998. It was against this background that the Industry, under the guidance of the then Ministry of Energy, Communications and Multimedia and the Malaysian Communications and Multimedia Commission (MCMC) decided on the need to embark on a project which would plan ahead for the next ten years in terms of planning for the nation’s infrastructure, especially in view of the declining fixed line penetration rate. Against 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 broadband would become crucial as the next step for the development of all Internet services in Malaysia and e-Government and e-commerce in particular. The Government was tasked to embark on a thorough study on the needs of government intervention in carving out a national plan for orderly and forward looking deployment of broadband supply in Malaysia. 2. Under these premises, the Government’s team decided pounced on the opportunity to introduce a comprehensive National Broadband Plan with the following initial objectives: a. Generate adequate supply in terms of broadband infrastructure, via various available technologies deemed appropriate by 2008; b. Stimulate demand to ensure efficient take-up of broadband services via suitable content & applications services;

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c. d.

Explore various funding mechanisms to finance the project; and Identify gaps in existing regulations and where necessary, introduce new ones to facilitate broadband rollout.

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In October 2004, after almost two years of careful deliberations, consultations and planning with more than 10 Government agencies, NGOs, and not forgetting the industry stakeholders and even members of the public, the Malaysian Cabinet approved the National Broadband Plan, together with the instructions to implement it over a 10 year period.

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To facilitate the achievement of the NBP’s objective, a full time NBP Secretariat was formed within the Ministry of Energy, Water and Communications (MEWC) which will work closely with MCMC who would continue to be the chief regulating agency, especially in terms of regulatory and implementing matters.

MyICMS 886 and the Need to Deliver High Speed Broadband to the Masses
5. With the introduction of the nation’s new 5 year ICT Blueprint better known as MyICMS 886, the National Broadband Plan took on an even greater impetus. The Minister of Energy Water & Communications, YB Dato’ Seri Dr. Lim Keng Yaik, rightfully emphasised the importance of the NBP by placing High Speed Broadband infrastructure, which will spur high speed Internet connectivity anytime and anywhere regardless of whether the user is on the move or stationary, as the first “milestone” Service to overcome under the MyICMS 886. The visionary MyICMS 886 Blueprint also correctly pinpointed that the driving force of the High Speed Broadband service will be the abundant availability

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of multimedia content and application services which are delivered on the Internet. With this key broadband service in place, the ability to provide all other essential services including digital homes, short range communications, VoIP via the Universal Services Provision (USP) comes into play riding on a multitude platform of hard and soft infrastructure.

MyICMS 886 – Core Elements

Services
1. 2. 3. 4. 5. 6. High Speed Broadband 3G & Beyond Mobile TV Digital Multimedia Broadcasting Digital Home Short Range Communications (e.g. RFID-based) VoIP/Internet Telephony USP - Universal Service Provision

Infrastucture
HARD 1. Multiservice Convergence Networks 2. 3G Cellular Networks 3. Satelite Networks SOFT 4. Next Generation Internet Protocol, IPv6 5. Home Internet Adoption 6. Information & Network Security 7. Competence Development 8. Product Design & Manufacturing

Growth Areas
1. Content Development (e.g. education, entertainment, games) 2. ICT Education Hub 3. Digital Multimedia Receivers (set top box) 4. Communication Devices (e.g. VoIP phones) 5. Embedded Components & Devices (e.g. RFID) 6. Foreign Ventures

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Areas under the purview of Ministry of Energy, Water and Communications Areas under other government agencies and industry sectors

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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. b. 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; Optical fibre access will contribute a 10% penetration rate for broadband from 2008 to 2010; and

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c.

By end of 2010, it is expected that the total broadband connection will reach 75% penetration rate for household.

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No doubt that the above targets are abundantly high and henceforth so is the challenge. Nevertheless, this formidable task of reaching such high expectations has been assumed by the MEWC and the MCMC in 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. As in April 2006, Malaysia’s broadband penetration rate stands at a mere 560,000 subscribers or less than 2.5%. The bulk of these subscribers currently utilise ADSL technology which, although is widely accepted in most parts of the world as a proven technology capable of reaching out to the masses, nevertheless, has room for upgrading to reach the ever increasing demand for greater and faster bandwidth. Other wireless technologies, ranging from LMDS, MMDS, WiFi and even of late, Wimax are expected to compliment wired technologies, but by and large, MCMC’s survey has analysed and forecasted that at most, the entire wireless market will take up only a 30% share of the total broadband subscribers by 2008. Satellite and Broadband Power Line communications will take up the balance of the market economically unreachable by the earlier conventional wired or wireless means.

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

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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.

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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 interbusiness 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.

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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.

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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 nonprescriptive 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.

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Quantification of Malaysia’s Broadband Ambitions 13. In this section, a brief report on the findings of the NBP Consultants is given to spell out a scenario for the availability and take-up of broadband services. This scenario is based on their understanding of the future characteristics of Malaysia’s broadband market which will be necessary in order to meet the country’s stated goals. It also includes their interpretation of the broadband needs of Malaysia’s public sector. 14. It is essential to note that although the primary initial focus is in addressing the broadband needs of users in the public sector first, 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. 15. Exhibit 2 illustrates the base scenario for demand for broadband services (encompassing both midband and fibre speed technologies) amongst key government public educational establishments over a five-year period. This scenario is informed by the requirements of programmes already in place and expected to be rolled out in the future, the experience of government agencies in other countries, and the Consultant’s expectations of the evolution of broadband demand 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 2004 School location Urban/suburban Rural and remote
Sources from KTAK/MCMC

2010 Mid-band 0% 50% Fibre speed 100% 50% 25% 5%

Mid-band 75% 95%

Fibre speed

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16.

As illustrated in Exhibit 2, it is expected that educational establishments will be the leading public sector users of broadband over the next five years. Whilst the demand for broadband services from government offices, justice sites (such as courts) and health institutions is expected to develop more slowly, they are nevertheless identified as key users. Other categories of public site, such as defence sites, may also have significant demand for broadband. However, they are not specifically addressed, since it is impractical to assess the demand from such users today. Besides, many such sites could easily be served by the capacity installed for the provision of service to the identified user categories.

Exhibit 2:
Analysys’s interpretation of the demand for broadband services amongst key public sector users [Source: Analysys]

Sources from KTAK/MCMC

If Malaysia is to realize its broadband objectives, it will need to ensure that not only public sector users but also households and business users are well catered for. Exhibit 3 illustrates the levels of service coverage which may be expected. This exhibit illustrates only the expected availability of fixed midband technologies, such as xDSL, fibre

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and BFWA, since it is envisaged that fixed technologies will be critical in the development of a successful broadband market in Malaysia. Government expenditure on communications will increase as a consequence of this demand. In addition, the roll-out of 3G mobile networks and wireless PWLAN hotspots will ensure that more than 80% of households can be covered by 2007.

Exhibit 3:
Coverage of households by fixed midband services (excludes mobile broadband services such as 3G, PWLAN) [Source: 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

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public sector, it will create enough momentum whereupon the private sector will then jump onto the bandwagon to continue deployment amongst the masses. The target of reaching a 5% subscriber penetration rate (23% household penetration) or approximately 1.3 million subscribers by 2006 was adopted as the critical mass needed 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 Ninth Malaysia Plan (RMK-9) period, the Bridging of the Digital Divide (BDD) Infrastructure development programme will take on full impetus with the Ministry of Energy, Water and Communications continuing to take the lead in telecommunications infrastructure development as well as well as supporting and upgrading the telecentres, and SchoolNet in close collaboration with the Ministry of Rural and Regional Development and the Ministry of Education. Altogether, a total of RM3.710 billion has been allocated under the RMK-9 for the BDD.

Exhibit 4

Sources from KTAK/MCMC

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18.

In this respect, the greatest number of connections would be for government departments under EG*Net network (84,000) and government schools under SchoolNet (27,000). Hospitals and clinics, which have been most in need of basic Internet connections, would automatically benefit as it would mean that all Internet connections would be upgraded to broadband. Last but not least the NBP has sufficient coverage to include institutions of higher learning as well as Internet community centres see Exhibit 5

Exhibit 5
NUMBER OF CONNECTIONS FOR THE PUBLIC SECTOR Community Government Departments – Federal – State – District Schools Universities & Research Institutions Hospitals and clinics Internet Community Centres Total Network EG*Net++ Connections* (2006) 84,000

School Net MyREN Telehealth ADSL, WiFi, ISDN and VSAT

27,000 7,000 12,000 2,000 132,000

Sources from KTAK/MCMC * 1 connection 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

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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.

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Exhibit 6
DEMAND SCENARIO-PUBLIC SECTOR COMMUNITY CONNECTION Major Usage Projected Demand (‘000) 2004 2005 2006 2007 2008 2009 2010 Total E-Government School Net MYREN(Research) Tele health Internet Community Centre Net Increase Accumulative 10 15 1 2 28 28 26 5 2 4 1 38 66 48 7 4 6 1 66 132 20 10 2 8 40 172 16 15 1 10 42 214 15 15 0 10 40 254 10 15 0 10 35 289 145 82 10 50 2 289

*All projects have been agreed to by government Source: Estimate by KTAK, GITN

20. Riding on the government initiated broadband network infrastructure, it is envisage that the spill-over effect will occur such that the private sector would jump on the bandwagon with private business sectors creating an increasingly strong demand to equal that of the 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.

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Exhibit 7
PRIVATE BUSINESS SECTOR
Leveraging on Government intervention on the communities, target 1.3 mil connections by 2006

Community Manufacturing (MNCs and SMEs) Banking and Finance Distributive Trade Transportation Others Total
Sources from KTAK/MCMC

Network Examples Leased line and ADSL Leased Line ADSL Leased Line and ADLS ADSL,WiFi,ISDN and VSAT

Connections* 2006 45,100 37,500 30,000 15,000 22,400 150,000

* 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

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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.

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Exhibit 8
TOTAL PROJECTED DEMAND FOR BROADBAND CONNECTION 2006 Major Usage Projected Demand (‘000) 2004 2005 2006 2007 2008 2009 2010 Total Public Community Private Business Home Users Net Increase Accumulative 28 25 229 282 282 38 48 325 411 693 66 77 440 583 40 98 595 733 42 110 709 861 40 150 700 890 35 180 1117 289 688 4877

902 3900

1,276 2,009 2,870 3760 4877

Source: Analysis and Estimates by KTAK

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.

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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 infrastructuralsharing. 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.

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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.

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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.

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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.

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to lend an active hand at promotional work on the ground at regional levels to promote and ensure the positive use of broadband amongst the local population

National Broadband Registration Scheme 27. One of the reasons why telecoms operators may be unwilling to invest in deploying infrastructure to offer broadband services in un-served 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 go un-served. 28. The proposed method of reducing the risk which operators associate with estimating existing subscribers as well as current and future demand is based on the detailed and accurate measurement of actual current demand. This will provide hard evidence which operators can use to inform their roll-out planning processes. Thus the availability of such data will increase the confidence that the operators have in meeting their demand targets, and should help to accelerate broadband roll-out. 29. The broadband registration scheme is part and parcel of the Secretariat not only to gauge the potential demand for broadband in the not too distant future but also to measure the level of subscription take up over the lifespan of the NBP. This is a pragmatic approach since the organisation will have to develop a detailed understanding of demand anyway as part of its remit.

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30. The registration scheme will be based on a centralised national location database. This should be capable of providing the specific location of each potential broadband customer who registers their 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 the expected level of expenditure on the service. Further, it will be necessary to store the contact details of each registrant so that once an operator decides to proceed with deployment to a particular area, the expressions of interest can be converted into actual service orders.

Ninth Malaysia Plan (RMK9) and Next Generation Broadband Infrastructure
31. The Ninth Malaysia Plan or RMK9 has given further emphasis on the importance of K-ICT and has set the following selected indicators for the period 2000-2010: INDICATOR Fixed telephone lines in operation Number of lines (millions) Penetration % Cellular phone subscriptions Number of subscribers ( millions ) Penetration %
Sources from KTAK/MCMC

2000 4.6 19.7

2005 4.4 16.6

2010 – –

5.0 21.8

19.5 74.1

24.4 85.0

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INDICATOR Personal computers installed No. of units installed ( millions) Penetration rate % Internet dial-up subscriptions Number of subscriptions ( millions) Penetration rate % Internet broadband subscriptions Number of subscriptions Penetration rate %
Sources from KTAK/MCMC

2000

2005

2010

2.2 9.4

5.7 21.8

11.5 40.0

1.7 7.1

3.7 13.9

10.0 35.0

– –

490,630 1.9

3,733,000 13.0

32. To establish a more comprehensive and robust plan for Bridging the Digital Divide (BDD), a study on a National Strategic Framework for BDD was undertaken. The Framework makes use of a geographical information system (GIS) to map the distribution of ICT throughout the country in conjunction with various demographic and geographical parameters. Early indications show that while the general access to basic telephony is relatively high, more than 90% of the 927 Mukims were still at the early stage of using the Internet and PCs. 33. The challenge now becomes very clear that in order to win the hearts and minds of the population to jump onto the ICT bandwagon and to inculcate a knowledge-based work culture, more Internet and especially broadband supply is needed. 34. Although the focus is on the last mile infrastructure to get broadband supply to reach the masses, nevertheless, the NBP planners have to allocate sufficient resources to international bandwidth and connectivity

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for a whole new next generation broadband infrastructure. In this respect, plans are on the drawing board to compliment the current Malaysian Internet Exchange (MIX) system for a next generation high speed interconnectivity fibre-optic network to link up in a whole new meshed network of digital communities which will take us onto a new ubiquitous service environment. In short, the demand for international bandwidth connectivity will increase 10 fold every three years for Malaysia making it a necessity to liberalise the sector even further by encouraging greater and more affordable access to cable landing stations, the ability to co-locate and to unbundled or expand current copper networks into fibre optic or high speed wireless and satellite networks.

Summary - A look into the future world of Malaysian Digital Environment and Ubiquitous Societies
35. By 2010-2020, most states in Malaysia will aspire to reach a developed status in order to keep pace with Vision 2020. The key towards reaching these challenging goals lie to a large extent on the availability of high speed affordable broadband to channel and power the growth in ICT. 36. By 2010, many neighboring jurisdictions in the Asia-Pacific region will already have commenced fibre-to-the-home (FTTH) as well as fibre speed wireless options including HSPDA, WiMAX and/or WiBro which 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 and with it so will the lifestyles of many people as the shape of a digital environment and a ubiquitous society takes into reality.

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37.

In a similar manner, the future Malaysian city lifestyle would by 2010 become equally exciting as Malaysians who are urbanites by and large have the capacity and spending power to move on towards the 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: a) bringing the benefits of high speed broadband services at the “top” end to spur Malaysia as a global communications and multimedia hub with digital cities sprouting all over the country powered by a centrally planned wired mesh networks. Malaysian urbanites would be living in a very much more intelligent home lifestyle. Many states will have their own MSC Cybercity developments which will be the focal point of a knowledge-based ubiquitous society; and b) Bringing the benefits of high speed broadband to each the residential homes in the rest of the country moving from the cities into the suburbs, towns, villages and eventually the rural communities.

38. It is envisaged that as broadband technology develops over the next five-ten years, so will the broadband user and subscriber behavioural patterns. The trend towards mobility means that eventually the users and subscribers will also be moving with a light-weight customerpremise-equipment (CPE) which will enable them to be in communication with their homes, offices as well as friends and business circles whilst being on the move. Whilst this pattern may affect the targets of household penetration rates, nevertheless, the goals of affordable high speed broadband for the masses remain the 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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Appendixes
Estimated number of broadband subscriptions by technology

Year

Qtr ADSL

NUMBER OF SUBSCRIPTIONS SDSL 542 1,931 2,834 3,712 637 767 1,658 1,931 2,168 2,432 2,616 2,834 2,995 3,257 3,651 3,712 3,942 7,260 Wireless … … … 5,914 Wireless Lan .. … … … Others* 249 302 1,865 14,391 250 336 290 302 302 1,286 1,799 1,865 5,300 5,549 8,100 9,233 24,797 Total 19,302 110,406 252,501 490,630 34,900 53,594 73,682 110,406 142,332 174,234 218,004 252,501 297,177 353,218 432,362 490,630 575,816 Penetration Rate 0.08 0.45 0.98 1.86 0.14 0.21 0.29 0.44 0.56 0.68 0.85 0.98 1.15 1.35 1.65 1.86 2.17

2002 2003 2004 2005 2003 1 2 3 4 1 2 3 4 1 2 3 4 1

18,511 108,173 247,802 477,685 34,013 52,491 71,734 108,173 139,862 170,516 213,589 247,802 288,882 344,412 420,611 477,685 539,817

2004

2005

2006

Sources from KTAK/MCMC

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Sources from KTAK/MCMC

Forecasts on fixed mobile converged broadband network for the country
MALAYSIAN FIXED MOBILE (FMC) CONVERGENCE BROADBAND FORECAST UNDER NBP 2004 Original Fixed Targets Wireless (feb 2004) Total Revised Fixed (June Wireless 06) Total
Sources from KTAK/MCMC

2005 490 0.6 490.6 490 0.6 490.6

2006f 1,300 300 1,600 1,080 300 1,380

2007f

2008f 2009f 2010f 2,800 1,500 4,300 3,900 5,000 8,900 3,370 3,250 6,620 3,900 5,000 8,900

CAGR ’06-‘10 32% 102% 54% 38% 102% 59%

1,900 900 2,800

2,800 1,500 4,300

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

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