PDF USP In Malaysia: Past, Present & Future - mcmc.gov.my

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USP In Malaysia: Past, Present & Future

The Malaysian Communications and Multimedia Commission Story

UZER TAJUDIN

Head, Rural Development Division

Malaysian Communications and Multimedia Commission (MCMC)

20 MAY 2014

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UNIVERSAL SERVICE PROVISION (USP)

USP

OBJECTIVE

PRIORITIES IMPLEMENTATION

LEGISLATION FUNDING

collective access to basic

telephony service and Internet access services followed by individual access for both services

•

by designated service providers based on USP Regulations

•

in underserved areas &

underserved groups within communities

USP Regulations 2002;

(Amendment in 2003, 2005, 2008)

by USP Fund to provide communication access to target

underserved areas, localities, and groups within

a community

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USP EVOLUTION

PERIOD USO/USP PROVIDER INSTRUMENTS

Before Telecommunication Department (JTM)

JTM as a Government central agency in planning and

implementing universal service

1991 Syarikat Telekom Malaysia Berhad

Corporatized Government agency with monopoly and licence

conditions

1998 Telekom Malaysia Berhad (TMB) Privatised entity with licence conditions

1999 Telekom Malaysia Berhad

A Determination TRD 006/98.

TMB is a default USP provider but cost is shared by 5 licensed

telecommunications operator

Beyond 2002

By Designation through tender process

New USP Determinations No 2 of

2001

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2003 – FIRST USP PROJECT

Basic Telephony

Individual & Collective lines

(payphone)

Broadband Access to Library USP Communications Centre

To provide broadband access up to

1 Mbps at selected libraries

To provide the center with broadband access up to 1Mbps at

suitable premises

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USP BASIC TELEPHONY TECHNOLOGY

Fixed GSM

CDMA System FTTS System House Phone

Public Payphone

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USP VSAT TECHNOLOGY

Pilot USP Communications Centre in Julau

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Service Providers Technology

Telekom Malaysia Fiber optic, copper cable, VSAT and CDMA

Celcom Fixed GSM System

TTdotCom Wireless Broadband Access/VOIP

eB Technologies Wireless Broadband Access/VOIP

DiGi Fixed GSM

NasionCom Fixed Mobile Satellite Phone (ACES)

Maxis Mobile Fixed GSM System

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USP TECHNOLOGY

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USP LEGISLATION

• Gazetted on 17 October 2002

• Setting up of the USP Fund

• Identification of

universal service targets based on Fixed services

• Gazetted on 30 October 2003

• New definition on USP target areas which were previously limited to existing service providers within the particular target USP areas only

• Gazetted on 1 April 2005

• Change of Applications Service Provider (ASP) licence from individual to class

• Gazetted on 1 August 2008

• New definition of underserved area

• Include new services:

• Broadband access

• Public cellular access

Communications and Multimedia Act 1998

(CMA98) (s.202, s.203 & s.204)

USP Reg. 2002 Amendment 2003 Amendment 2005 Amendment 2008

Ministerial Direction on USP:

Minister may directs the Commission to

establish a system for implementing USP

program

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USP AMENDMENT 2008

Disadvantages (2003 – 2007)

Focus on basic

telephony & Internet access service Unsuitable technology

selection and service provider

Less promotion and awareness Only annual claim

payment

To improve USP Fund mechanism that serves the

USP objectives

Cabinet direction to utilize USP fund for national broadband

projects

To achieve 50% national household broadband penetration rate in 2010 Rationale of

amendment Underserved

districts only

Proposed Amendments (2008)

To include broadband access and public

cellular access

To include major contributor for implementing USP projects

To allow the universal service providers to quarterly claim the operating expenses

To allow the funding for content development To allow the claim for promotional, awareness, training and audit fees costs

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People with Disabilities Children under Protection

Women under Rehabilitation

People living in low- cost housing area Any area where the

penetration rate for broadband subscribers in

Malaysia is below the national broadband

penetration rate

Underserved Groups Underserved Area

Broadband Access Public Cellular

PSTN

Any area with a population density of 80

persons per square kilometer or less, or where public cellular

services are not sufficiently available Any area where the PSTN

subscribers’ penetration rate is 20 % below that of

national PSTN penetration rate

 “Underserved Area” is defined from the perspectives of network and application services i.e. PSTN, Broadband Access

& Public Cellular

 “Underserved Groups” being groups of people in served areas that do not have collective and/or individual access to basic communications services

[USP Regulations 2002 & (Amendment) 2008]

UNIVERSAL SERVICE TARGET

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USP INITIATIVES

2003

2007

2009

2010

•

Wireless Village

•

Netbook

•

Internet Centre (Urban)

•

WiFi Hotspot (Urban)

•

SKR1M

•

Time 3

•

Internet Centre (Rural)

•

Broadband Library

•

Payphone

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Rebranding

CBL Internet Centre

Profiling

Urban Poor Rural

Connectivity & Speed

Tower Fiberization

Recipient

One type of telecentre i.e. PI1M Improve coverage, tower fiberization, LTE, FTTH &

submarine cable

Focus area and groups, content & applications Service coverage, lower price, improve QoS Wi-Fi Hotspots Device Bundle

BROADBAND ACCESS ENHANCEMENT

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Fi

13 1Malaysia Internet

Centre

2007

550

Planned

427

Completed

Community Broadband Library

2007

99

Planned

99

Completed Wireless Village

2011

5,000

Planned

4,711

Completed Telephony

2002

89

Districts Public Cellular

2009

1,000

Planned

748

Completed

Netbook

2011

1.68m

Allocated

1,136,000

Distributed

USP ACHIEVEMENTS

Figures as at 30 April 2014

Mini Community Broadband Centre

2010

120

Planned

120

Completed

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2007

^Pilot ^{12 CBCs}

2008

^{Phase 1} ^{73 CBCs}

2009

^{Phase 2} 89 CBCs

2009

2010

Phase 4 5 CBCs

2012

2013

Phase 6 137 CBCs

2014

^{Phase 7} ¹⁰⁰_(planned^CBCs₎

FR OM RURAL TO URB AN POOR

Infrastructure

Human Capital Development

Monitoring Awareness

Content

Applications Sustainability

IMPLEMENTATION COMPONENT

CBC : EVOLUTIONARY APPROACH

Urban Poor

Total CBC members as at 30/4/2014 – 357,440 members

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WAY FORWARD FOR SUSTAINABILITY

Content

Applications

Children Adults

Product Services

Rural Urban

Focus Group

Zoning

Type

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A NEW CBC CONCEPT

Hub & Spoke

Every centre will have 5 WiFi Hotspot

in the surrounding areas

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RAN SHARING CONCEPT

BSC/RNC MSC BSC/RNC

(SP Time 3) BSC/RNC

BSC/RNC

T3 Site2

Fiber Optic Cloud

T3 Site1

MSC MSC

•

To provide 2G and 3G services from 3 Public Cellular Networks

•

To serve minimum of 1000 subscribers per site for 2G network and 1 sector carrier for 3G network ;

•

Public Cellular Network Providers can save the initial network construction investment, accelerate network

construction speed, increase the initial coverage and attract more users in the new service provided areas.

RAN Sharing

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ROLLOUT CHALLENGES



Rural areas are often remote and lower income levels

 Geographical dispersion of population



Hilly terrain and dense trees area



Availability of proven technology to effectively connect rural areas

 Technology limitation - distance, coverage due to LOS/NLOS system,

CPE need power supply to operate etc



High costs to rollout

 Unavailability/Unstable electricity supply



Difficulties to acquire suitable sites for wireless solution



Low take-up rate

 Billing and payment issues

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EARLY VICTORIES

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CONCLUSION

MCMC

Service Providers State Agencies

Consumer

• Manage USP Fund

• Designate Service Provider

• Briefing State Agencies

• Monitor Implementation

• Verify & Pay claims

• Pay to USP Fund

• Submitted USP Plan

• Implement projects

• Claim from USP Fund

• Point of Information

• Liaisons:

 State Secretariats

 District Office

 Community leaders

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USP MICROSITE

Collection of Success Stories USP Microsite

USP

Tender Notices

USP Projects http://usp.skmm.gov.my/

http://usp.skmm.gov.my/Projects/Telephony.a spx http://usp.skmm.gov.my/Information/Notices-

(1).aspx

http://usp.skmm.gov.my/Success-

Stories/Overview.aspx

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