MCMC Annual Report_2008

Suruhanjaya Komunikasi dan Multimedia Malaysia,Off Persiaran Multimedia, 63000 Cyberjaya, SelangorTel: 6 03 86 88 80 00 | Fax: 6 03 86 88 10 00

E-mail: [email protected] | Web: www. skmm.gov.my | 1-800-888-030 Diversified culture, united towards communication excellence

A N N U A L R E P O R T

001 Statutory Requirement002 National Policy Objectives003 Vision/Mission Statement003 Core Values004 Clients’ Charter006 Chairman’s Message 016 Commission Members026 Senior Directors030 A Snapshot of Statistics on Communications & Multimedia Activities

Speeding Up the Growth of ICT034 Progress Report for Broadband

(MyICMS 886) 2008036 TM’s Undertakings037 Application of the Regulatory Framework

for High-Speed Broadband Network037 Economic Indicators on Broadband’s

Benefits to the Nation037 Indicators for Broadband Take-up038 Report on QoS Compliance on

Broadband Services038 Managing Communications Infrastructure042 Promotion of Local Content Development and NCDG044 Establishment of R&D Initiatives Under Digital Home045 Implementation of U-Library048 Digital TV051 Mobile Number Portability (MNP)

Ensuring Communications Integrity & Excellence

056 Categorisation058 Market Supervision058 Services’ Accessibility059 Implementation of WiMAX Services

Responding to New Emerging Technologies064 Spectrum Management Strategic Review

(SMSR) 2007/2008066 Spectrum Research Collaboration072 Spectrum Assignment and Management 081 NASMOC and Spectrum Engineering and

Interference Resolution081 Spectrum Co-ordination 085 Numbering

Expanding Digital Reach092 Nationwide Mobile Coverage:

Time 1/Time 2 Projects093 Quality of Service095 Required Application Service (RAS)

095 Rates Monitoring096 SKMM Complaints Bureau097 Consumer Issues099 Prepaid Registration100 Phishing100 Network Security Centre101 Enforcement

Upholding National Culture & Identity106 Content Regulation

Channeling Equal Access to ICT Services112 USP Fund112 USP Projects in Bridging Digital Divide

Enhancing ICT Ethics and Excellence120 Consumer Forum’s Activities121 Content Forum’s Activities123 Report on Technical Standards Forum 125 Report on Access Forum

Enhancing Postal Services Standards128 Postal Services

Accelerating Growth Through Global Partnerships

132 International Affairs

Delivering Better Performance for Greater Effectiveness

138 Human Capital Development140 IT Strategic Review

Building 1Malaysia Through ICT Convergence

144 Corporate Highlights

Maintaining Transparency and Good Governance 148 Governance and Audited Financial Statements

Table of Contents

Statutory RequirementIn accordance with Section 47 of the Malaysian Communications and Multimedia Commission Act 1998, the Malaysian Communications and Multimedia Commission hereby publishes a report that entails the activities of the Commission and has submitted it to the Minister of Information, Communications and Culture together with a copy of its Audited Financial Statements of the Malaysian Communications and Multimedia Commission Fund for the Year Ended 31 December 2008 to be laid before both Houses of Parliament.

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SKMM Annual RePort 2008

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002National Policy Objectives

We shall endeavour to fulfill the 10 National Policy Objectives for the communications and multimedia industry as enunciated in the Communications and Multimedia Act 1998:

1. To establish Malaysia as a major global centre and hub for communications and multimedia information and content services;

2. To promote a civil society where information-based services will provide the basis of continuing enhancement to quality of work and life;

3. To grow and nurture local information resources and cultural representation that facilitate the national identity and global diversity;

4. To regulate for the long-term benefit of the end-user;

5. To promote a high level of consumer confidence in service delivery from the industry;

6. To ensure an equitable provision of affordable services over ubiquitous national infrastructure;

7. To create a robust application environment for end users;

8. To facilitate the efficient allocation of resources such as skilled labour, capital, knowledge and national assets;

9. To promote the development of capabilities and skills within Malaysia’s convergence industries; and

10. To ensure information security and network reliability and integrity.

VisionTo become a globally competitive, efficient and increasingly self-regulating communications and multimedia industry generating growth to meet the economic and social needs of Malaysia.

MissionWe are committed to:a. Promoting access to communications and multimedia services;b. Ensuring consumers enjoy choice and a satisfactory level of

services at affordable prices;c. Providing transparent regulatory processes to facilitate fair

competition and efficiency in the industry;d. Ensuring best use of spectrum and number resources; ande. Consulting regularly with consumers and service providers and

facilitating industry collaboration.

Core Values• Authoritativeness

• Integrity• Competence

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004Clients’ Charter

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Our undertaking to our clients are:

General Consumers•Recordingallcomplaintsreceived•Acknowledgementtocomplainantwithinthreeworkingdays• Forwardcomplaintreceivedtorelevantserviceproviderwithinfiveworkingdays• Follow-uponstatusofcomplaintfromserviceproviderafter15days

Assignment ApplicantsApparatus Assignment (AA)• 60daystoprocesstheAAapplicationsubjecttotheLicenceCommitteemeeting,

border co-ordination by FACSMAB, JTC and Trilateral (Malaysia, Singapore and Indonesia) meetings and approvals

Number Assignment• 30daystoprocessnormalassignmentapplications e.g. PSTN Numbering Application• 45daystoprocessspecialassignmentse.g.mobile,shortcodes

LicenceApplicants• 60daysfromreceiptofcompleteapplicationtoprocessNFP,NSPand CASP licence applications and to recommend to the Minister for approval• 45daysfromreceiptofcompletesubmissiontoprocessNFPandNSP class licence registrations• 30daysfromreceiptofcompletesubmissiontoprocessASP class licence registration

Licencees• Promotefaircompetitionandmarketdevelopmentthrough

transparent regulatory processes as outlined in the CMA 1998• Provideresolutionstodisputeswhennecessary• Promoteeffectiveregulationbymonitoringallsignificant

matters relating to the performance of its licencees and reporting to the Minister at the end of each financial year

• ReviewtheRules&Regulationeverythreeyearsorasandwhen directed by the Minister. This is to ensure that the Rules &Regulationremainrelevant


Datuk Dr. Halim ShafieChairman,Malaysian Communications and Multimedia Commission

Chairman’s Message The Malaysian Communications and Multimedia Commission celebrates its 10th Anniversary on 2008 as the regulator of the communications and multimedia industry in Malaysia and the implementor of the Communications and Multimedia Act 1998-an Act which has played an integral role in the convergence of the communications and multimedia industry, as well as in the nation’s growth as a technologically-competent and economically-competitive nation.

Overview of the Communications and Multimedia Industry in 2008

Key Growth Indicators in Communications and MultimediaOver the ten years since the Communications and Multimedia Act 1998 was implemented, the total gross revenue of this industry grew four times over, from RM12.0 billion in 1999 to RM40.8 billion as at the end of 2008. The revenue has contributed to 6.1% (2007 : 5.9%) of the total Gross Domestic Product (GDP) of the country and approximately 8.3% (2007 : 7.7%) of the Gross National Product for 2008.

The industry has grown tremendously over the last ten years, with the value of the communications [and transportation] sub-sector growing almost 240% from 1999 to 2008, giving a compound average growth rate (CAGR) of 13.02% per annum.

Even during the apex of the world economic crisis and in a relatively volatile and variable market of 2008, the communications and multimedia industry was able to expand growth and achieve a market capitalisation of RM48.5 billion or 7.3% of the total Bursa Malaysia market capitalisation (2007 : RM69.5 billion or 6.7% (after delisting of Maxis from Bursa Malaysia Stock Exchange).

No doubt the communications and multimedia industry is important for the nation’s growth, not only for the

investment and revenue it generates but also for the manufacture of goods and provision of services that it creates besides shaping the competitive landscape of a nation.

Since the implementation of the Communications and Multimedia Act 1998’s regulatory framework, the communications and multimedia industry has achieved marked progress from many different aspects. Among those developments include the proliferation of a number of private-sector telecommunications, television and radio service providers. In the period of 2000 - 2001, 87 licences have been issued forth where 20 licences were network facilities provider, 19 were network service providers, 18 were content application service providers and 30 were application service providers. By the end of 2008, the number of licences issued has multiplied many times over - 79 network facilities provider, 86 network service providers, 23 content application service providers and 401 application service providers.

As evidenced by the value of the industry and number of licencees, this sector has indeed contributed to and facilitated the economic development of the country.

Telephony ConnectivityThe gradual substitution of fixed-line telephone subscriptions by cellular mobile telephone subscriptions is an overriding trend in most countries which have a developed telephony infrastructure and network. Over

the ten-year period of convergence, this path towards cellular mobile connectivity continued at full speed as consumer demands changed towards mobility and multi-functionality of their telephones. In 2008, Mobile Number Portability (MNP), which is the ability to change one’s service provider without changing the number, also enhanced consumers’ choice over cellular mobile services available to them.

Nationwide telephony coverage was also expanded to cover rural areas. In 2008, under the direction of the Minister to further expand cellular coverage nationwide, a new programme known as Time 3 was introduced, with the objective of increasing national population cellular coverage to 97% by 2010.

The Time 3 programme is targeted at extreme rural areas and villages with a population density of below 80 persons per square kilometre. Key target areas include Felda, Felcra, plantations, Orang Asli settlements, new tourist spots and significant federal highways.

The announcement of the programme was made by the Minister during the opening of the USP Technology Symposium in Seremban on 12 June 2008.

Back in 1997, the total mobile phone subscribers was only 2.46 million which gave a modest mobile penetration rate of only 11%. In 2008, the cellular penetration rate rose many times over to 96.8%, comprising 27.6 million subscribers.

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008Broadband ConnectivityWhat have we achieved in terms of broadband connectivity within the ten years of convergence?

Over the last six years, the number of broadband subscribers in Malaysia increased from 19,000 in 2002 to 1.4 million in 2008. In terms of household penetration, broadband increased two-fold from 11% in 2006 to 21.1% as end of 2008.

Subscriber base has extended from simple voice and SMS services in the 1990s to the growth of more data services in the advent of 3G and increased wireless access through WiFi hotspots in the mid 2000s. The upward trend in statistics indicates that the increase in demand is driven by the public’s increasing awareness of the importance of access to broadband services.

2008 can be seen as a landmark year for the implementation of the National Broadband Plan. The strategy as proposed through the Cabinet Committee on Broadband (CCB) is for nationwide broadband implementation to achieve 50% household penetration by 2010. In May 2008, the Government announced details of the strategy to extend broadband penetration throughout the nation. The implementation covers two categories, with the first covering High Speed Broadband (HSBB) of selected areas of more than 10 Mbps and the second being Broadband for General Population (BBGP) with speeds of up to 2 Mbps. On 15 September 2008, the Government and Telekom Malaysia Berhad (TM) agreed to work jointly on the first category covering HSBB Project, and will be realised through a Public-Private Partnership (PPP) arrangement between the Government and TM.

Hence, all systems are geared towards achieving the 50% household penetration target by 2010 and getting Malaysia connected.

Broadcasting in Malaysia2008 marked a crucial turning point for the broadcasting industry in Malaysia with preparation towards digital television (TV) crossover.

The current mode of TV and Radio broadcasting on terrestrial or free-to-air platform is still in analogue format and in line with the development of digital broadcasting around the world, the Government made a decision that digital terrestrial TV services be implemented in Malaysia beginning 2005 and set an analogue switch-off date of 2015.

As a further commitment to promote digital TV broadcasting, the Digital Multimedia Broadcasting and Mobile TV agenda was placed as one of the areas in the MyICMS 886 incorporating goals outlined from 2006 to 2010.

The goal is to achieve 95% household coverage for fixed reception and 90% of total mobile TV users by 2010. Additionally, the goal is to introduce Digital Audio Broadcasting services, beginning with the roll-out of trials in 2006. Digital broadcasting provides not only the space within which new and leading-edge services can be developed, but more importantly, it has the potential to directly contribute to socio-economic development and the improvement of the quality of life of all Malaysians in line with the country’s National Policy Objectives on communications and multimedia.

The traditional boundaries of broadcasting continue to blur as content is offered over both analogue and digital platforms. Malaysians have been enjoying digital TV and Radio services on a satellite platform through pay TV operator, Astro, since 1996. Besides the satellite platform, digital mobile TV broadcasting services have also been offered to subscribers on 3G platforms by several Telco players since 2005.

During the year in review, the broadcasting sector

which comprises four free-to-air privately-owned TV stations under the Media Prima Berhad Group, two Government-owned free-to-air TV stations and one Direct-to-Home satellite TV operator, ASTRO in total had a combined revenue of RM3.8 billion as at end of 2008 as compared to RM3.3 billion in 2007, indicating a growth of 15.2% from last year. A major contributor of the broadcasting sector revenue is Advertising Expenditure (Adex) which grew from RM5.5 billion in 2007 to RM 5.8 billion in 2008, a growth of about 5.5%.

Postal and Courier ServicesThe Post Office and Mail Delivery network is an essential infrastructure for economic growth whereas the courier and express delivery service industry plays a major role in providing the domestic and international connections crucial for business to develop, to serve various markets besides maintaining supplies. 2008 saw the Commission enforcing the mandatory performance service standard for domestic mail services with effect from 1 August 2008 in its efforts to improve the standard of services of mail delivery in terms of speed and reliability.

The Post Office network is extensive and has expanded with more than 688 post offices and more than 6,300 postal channels (Pos Mini, postal agents, stamps

vendors, and so on). The Government allocated a budget of RM1 million under the RMK-9 budget for the implementation of Projek Usahawan Pos Mini Luar Bandar (PUPMLB), intended for the rural areas. 105 suitable locations have been approved. 64 new mini post offices were successfully opened nationwide. 21 are operating in Felda settlements.

In 2008, the number of courier licencees increased to 113 from 109 and the industry is set to become more competitive as the players set to increase service level through business transformation and higher utilisation of technology.

The Postal and Courier Services sector contributed about RM0.9 billion in 2008 towards the country’s GDP.

The Year 2008 in Review

Organisational TransformationNo doubt the landscape and ecosystem of the communications and multimedia industry have changed considerably over the last ten years of SKMM’s existence and implementation of the CMA 1998 regulatory framework. We are dealing with technology and services, and its very usefulness and existence is synonymous with change. The defining change factor for the communications and multimedia industry is the convergence of technology and services.

It is with these dynamic characteristics of change and convergence that SKMM has embarked on an organisational transformation to meet the ever- changing landscape of the industry.

The change management programmes in 2008 endeavoured to break new grounds in providing SKMM with enhanced capacities and capabilities to deal with the challenges brought about by a dynamic and uncertain external environment. In particular, the Organisational Transformation initiatives that commenced

in 2007 continued in 2008 to improve the Commission’s ability to acquire, create, use and retain talents.

The adoption of a Strategy Focused Organisation (SFO) as a principal theme for organisational capacity and capability development in 2008 successfully paved the way for a more deliberate management of Key Performance Indicators (KPIs), focusing on areas relevant to the core objectives of the Commission. The combined theme of the Strategy Focused Organisation (SFO) and Process Improvement would be the focus of the organisational development programmes of the Commission for 2009. These are supported by performance measurements tools such as the Balance Scorecard approach which guided us to view organisational performance from multiple dimensions, with emphasis on inter-linkages between strategy planners, decision-makers and strategy implementers.

Just as how SKMM expects performance from its staff, it also recognises the need to nurture and develop its human capital. With this in mind, a centre of excellence in the form of the SKMM Academy was established with the aim of intensifying efforts in learning, training and enhancing expert capacity; thus to create a work force within SKMM that is authoritative, competent and admired by the industry.

Strengthening Corporate GovernanceFor a regulatory body such as SKMM, governance is fundamental as its actions and decisions would have significant impact on the stakeholders. The principles of good governance is ingrained in the Malaysian Communications and Multimedia Commission Act (MCMCA) 1998 where the role and functions of SKMM are defined, whereas the Communications and Multimedia Act (CMA) 1998 establishes the framework for regulating the communications and multimedia sector.

The principle of transparency which underpins good corporate governance is the hallmark of the regulatory

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Chairman’s Message

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framework in the CMA 1998. The principle of openness is clearly embedded in the CMA 1998 such as public inquiry and consultation channels with the stakeholders on matters of significant interest to the public or licencees.

The sound governance mechanism provided in the CMA 1998 is aimed to give confidence to the stakeholders in SKMM’s decisions and ensure that they have a full understanding of how SKMM implements Government policies and how these would contribute towards industry growth and consumer protection. Based on the Commission’s role, the need to maintain its operational independence and protect its reputation, SKMM subscribes to three basic values, namely authoritativeness, integrity and competence (AIC).

Apart from strengthening its internal capacity through the process of transformation, we have also implemented an organisation-wide Integrity Plan and Client’s Charter to ensure that the principle of transparency cuts across all levels of the organisation. Internal controls were enhanced and improved upon through the set-up of an Internal Audit Department.

The internal auditors, who report directly to the Internal

Audit Committee of the Commission, ensured that recommendations to improve internal audit controls were followed through by the Management. They will continue with their assessment of the sufficiency of the internal control systems from time to time based on the approved internal audit plan.

All these are implemented with a view to enhance authoritativeness, ensure integrity and improve competency of SKMM in weathering the challenges of regulating the sector. Enhancing Organisational EfficiencyIn line with rapid technology advancement and to meet the dynamics of the communications and multimedia industry, which in itself focuses on the technology and the efficient delivery of services, we have mapped out an overall SKMM Information Technology/Information Systems (IT/IS) Strategic Plan Blueprint to support the vision and mission of SKMM.

The overall objectives of the IT/IS Strategic Plan are to provide a common and shared IT Enterprise Platform to enhance public service levels, support improved decision-making process, improve industry

governance, facilitate information sharing and contribute to industry development. Concurrently, it will also create an IT architecture framework process that is easy to manage and monitor as well as improve the quality, integrity and availability of SKMM’s data.

Various deployment strategies and plans will be rolled out based on the proposed IT Strategic plan in various stages for 2009 and 2010. This is to ensure SKMM has an integrated Information Infrastructure, Enterprise Business Application and Knowledge Management that are all well connected and collaborated to meet SKMM’s vision and mission for the next five years.

Operational Relevance

Broadband to the NationWith efforts at strengthening internal capacity and corporate governance through organisational transformation well underway, SKMM is focused and poised operationally to meet the 10 National Policy Objectives on communications and multimedia for the country.

It is apt that after ten years of convergence and after four years of its implementation, we revisit the underlying aims of MyICMS 886; the main blueprint for the progress of ICT in Malaysia. MyICMS 886 or the ‘Malaysian Information, Communications and Multimedia Services 886’ Plan was conceived in 2006 as a catalyst and strategy that would enhance the existing plans and programmes for the development and promotion of ICT in Malaysia. It is an initiative driven by the private sector and supported by a strong Government policy, regulatory and institutional framework support in its implementation.

The MyICMS 886 Strategy targets eight service areas to drive Malaysia in the provision of advanced information, communications and multimedia services. The introduction of the eight service areas, in turn, catalyses and promotes

the development of eight essential infrastructures, both hard and soft. These new services and infrastructure are aimed at generating growth in six areas that have been identified as key for the consumers and businesses in Malaysia. The MyICMS 886 Strategy acts as the catalyst of development in those areas from 2006 until 2010.

The availability and access to broadband which is implemented through the National Broadband Plan, is the main area of development under the MyICMS 886 Strategy. As mentioned before, the target proposed through the Cabinet Committee on Broadband, is to achieve 50% household penetration rate by the end of 2010.

On 15 May 2008, the Government announced its two- pronged plan of extending broadband penetration throughout the nation, namely the implementation of the High Speed Broadband (HSBB) which will deliver up to 10 Mbps to selected areas across the country, and Broadband to the General Population (BBGP) with speed up to 2 Mbps. Four months later, on 16 September 2008, the Government entered into a public-private partnership agreement with Telekom Malaysia Berhad (TM) for the implementation of the HSBB project. The total cost of the HSBB project is RM11.3 billion for the period of ten years, with the Government contributing RM2.4 billion for the first three years whilst TM has undertaken to invest RM8.9 billion during the ten-year duration. The HSBB project will cover the Klang Valley, industrial areas nationwide and the Iskandar Malaysia development area; in other words the high economic impact areas.

The National Broadband Plan is implemented and monitored through the Integrated Project Management Office chaired by SKMM and which reports to the Steering Community on Broadband chaired by then Ministry of Energy, Water and Communications and from 2009 onwards by the Ministry of Information, Communications and Culture.

No doubt the benefits of having HSBB has now become a necessity rather than a luxury as the world becomes more connected through the Internet and economic transactions are done on-line. The country’s competitive edge depends on such high-speed delivery of connectivity.

However, let us not forget the other thrust of the National Broadband Plan which will have far reaching consequences in meeting the 50% household penetration target; that is the BBGP plan that gives emphasis on the attractiveness and affordability of the general population to own broadband access in their homes. BBGP areas include underserved areas throughout the nation in terms of broadband access services and underserved groups within a community.

BBGP areas on the Universal Service Provision (USP) areas and implementation with its main objective to bridge the digital divide between the ‘have’ and ‘have not’ communication and multimedia services areas.

BBGP is not something new. We had drawn up a new framework for the implementation of BBGP under the National Broadband Plan since 2007 for underserved areas. The project involves implementation and set-up of an initial 85 Community Broadband Centres and 105 Community Broadband Library Centres across the country that are now fully operational and serving the respective communities where they are found. An additional 89 locations are in the process of implementation in 2009.

More importantly, the BBGP projects have begun to bear fruit. We have received positive feedback in terms of its implementation and usefulness of the facilities to the community where each is located. To ensure effective usage of the facilities and avoid under utilisation, we have hired on-site full-time supervisors to run awareness and training programmes. In the long-term, SKMM is confident that this effort will help narrow the digital divide and encourage the growth of

a knowledge-based society throughout the nation as envisioned under the MyICMS 886 blueprint

Apart from the BBGP initiatives implemented in the USP areas, SKMM also prioritised the provision of collective universal service access for basic telephony as well as Internet over individual access. This is to ensure that the target uneconomical areas are provided with communications services through means of widespread community access to such services.

Throughout 2008, SKMM set its focus into developing broadband community access centres (or USP Broadband Community projects) where promotion, awareness, marketing, and ICT enrichment training on information and communications technologies (ICT) took place in support for social service delivery to deserving communities.

Content Development as a Catalystfor Broadband Take-upIt is recognised that infrastructure deployment alone is not enough for the adoption of broadband. Content development is recognised as a critical success factor for broadband take-up under the National Broadband Plan; consumers and end-users are more interested in what broadband can deliver to them rather than the framework in which it operates. At the same time, it has generated excitement and entrepreneurship in the communications and multimedia industry.

With such development and activities in mind, the Government approved the establishment of a National Content Development Fund or known as NCDG in short which was launched in 2007 with an initial start-up grant of RM20 million. At the end of 2008, the fund size was increased to RM50 million proving the Government’s commitment towards encouraging content entrepreneurship or ‘contentpreneurs’ who have the potential to participate and contribute to the growth of the nation’s economy.

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012 013One of the objectives of the NCDG is to encourage and promote multiple platforms that use content using convergence technology or 360 degree content applications; that is technology that can be used on many different platforms and channels such as in theatres, television, computers and laptops and certainly on cellular mobile phones.

Focus on the Consumer At the same time that HSBB infrastructure is enhanced and deployed, and content and end-user applications are further developed, we have also turned our attention to the consumers of broadband to ensure that their rights are not neglected. The Mandatory Standards for Quality of Service (QoS) for Broadband Access Service is the instrument used to ensure compliance of service providers to minimum standards for broadband access service. It was enforced with effect from 1 January 2008 and consists of 14 standards of service requirements. Service providers are required to submit their network performance reports every six months to SKMM based on the QoS Mandatory Standards.

As more broadband service providers enter the broadband service market and more services are offered, SKMM may then review and revise the QoS in consultation with relevant stakeholders, namely the consumers of broadband.

SKMM also maintains a series of Mandatory Standards for Quality of Services with regards to services such as Cellular, Dial Up and PSTN. As at end December 2008, SKMM had finalised the submission of tenders to perform the assessments for Cellular, Broadband Dial Up and PSTN services by reputable consultants. The assessment exercise will be performed in 2009.Consumers’ interest and protection was also enhanced through the Communications and Multimedia Rates Rules 2002. Rate regulations are normally driven by consumer protection and economic reasons. In

markets that are characterised by the monopoly of a few players (oligopoly) such as in Malaysia, prices tend to be high and the supply of services and facilities can be controlled easily, resulting in bottlenecks in the upstream markets or downstream markets or both. As a result, service providers can price their products at prices above what would be set in a competitive market. The rate control mechanism is normally employed in the above situation to ensure rates or tariffs are not artificially inflated or do not contain excessive economic rents (price is above the price that would be set in a competitive market) and that prices charged are fair and reflect underlying costs.

Telecommunications is a vital service for most organisations, whether engaged in services or manufacturing. Fair and low prices are considered necessary to ensure the competitiveness of economic activities in these sectors. In a globally-competitive environment, it is therefore imperative that the cost of telecommunications services is competitively priced so that local providers of services and products can compete with those in other countries.

The Rates Rules 2002 sets out the prescribed level of rates to be charged for specified applications services. The rules covering the range of service charged and activities that comes under the Rates Rules 2002 including charges for Internet access services, as well as for telephony, cellular and data services. In 2008, service providers have complied with Section 197 of the CMA 1998, covering the rate setting and the requirement to publish rates, SKMM found that the service providers have made available the rates charged to its customer, normally on the websites, media advertisements, brochures and also through their customer service hotlines.

One of the channels of consumer contact has been the SKMM Consumer Complaints Bureau (CCB) which acts as a focal point to deal with public complaints

regarding service providers’ offerings. Since it was launched in August 2007, the number of complaints received has increased tremendously. From early January 2008, CCB started using the Aduan SKMM on-line complaint management system to record and update status of complaints and reporting.

The CCB provides several channels for consumers to lodge their complaints; a 1800 hotline number, email, letter, fax and even walk-in complaints handling. In May 2008, the Aduan SKMM complaint system “http://aduan.skmm.gov.my” was opened to the public for online submission of complaints. It has since become one of the main channels for the public to lodge complaints. In 2009, consumers would also be able to lodge complaints through short messaging system (SMS) through the cellular mobile phones.

The CCB handles complaints and queries lodged by consumers with regard to the provision of the communications and multimedia services by the licencee service providers. It also serves as an additional channel for consumer complaints to be addressed complementing the existing consumer complaints mechanism implemented by the Consumer and Content Forum and the service providers respectively.

In 2008, 4,289 complaints were received, this being almost double the 2,147 complaints received in 2007. The types of complaints ranged from poor service, connectivity or coverage, billing disputes, SMS scam or fraud, spam and unsubscribed mobile content, on-line, television, radio, SMS and e-mail content as well as radiation and telecommunication tower issues, and illegally-installed satellite television dishes.

Based on analysis of the complaints received, several actions were identified to help improve consumer protection for communications and multimedia users and these are outlined in the Good Consumer Practice (GCP) guidelines that was launched and issued to the industry service providers through the Consumer Forum on 9 December 2008. All these combined with other Consumer Protection programmes such as the pre-paid mobile service registration, anti-phishing, enhancing 999 services and others.

SKMM also receives complaints on offensive, obscene and misleading content through the CCB. All complaints are processed and evaluated against the CMA 1998, pertinent licence conditions, the Content Code and other regulations. In the case of Internet complaints, they are reviewed according to Section 233 of the CMA 1998, based on the nature of the content, evidence of intent and whether there are local elements in the content.

Complaints which do not fall within the ambit of the CMA 1998 are forwarded to the relevant authorities or agencies for further action.

SKMM received a total of 259 complaints in 2008, a nearly three-fold increase from 95 complaints received in 2007. Complaints relating to Internet websites surged in 2008, representing 83% of total complaints for the year compared to 47% in 2007. One of the reasons for the increase was increased awareness initiatives undertaken by the Commission to publicise the complaints procedure.

The new media especially the Internet is becoming more ubiquitous to the Malaysian culture as we become a connected society. New media content is a term that refers broadly to content that can be accessed through channels other than the traditional mediums of television and radio. The falling costs of accessing the Internet, affordability together with an increase in broadband penetration, a plethora of devices have collectively accelerated the development and consumption of new media content.

Whilst we are keen to promote a connected society and a healthy on-line lifestyle that will eventually contribute towards a higher penetration in broadband, there is widespread concern regarding the social impact of the online environment and the mobile lifestyle. Of particular concern is the quality of content that is being accessed and the need to protect the young generation from such offensive or prohibited content.

Towards a better understanding of new media, SKMM established the Research Collaboration on New Media Content between SKMM and Institutions of Higher Learning. Research information will provide the Commission with valuable information and insight for the formulation of strategies and policies for effective development and regulation of new media content. The Research Collaboration programme was

launched in April 2008 and embarked on its maiden projects with four private and public universities. The programme is open to all private and public local universities and the process of award of research grants will be conducted annually.

The development of new media services and online media has prompted a shift in media regulation. The proliferation of social media online has provided amateurs and end-users with the facilities and tools to create their own content, so much so that social media and user-generated content are ever advancing its share of Internet traffic, globally. Traditional statutory regulation and its legal framework, especially in its practical application, is no longer able to adequately take on the tasks of ensuring consumer protection and quality of content. In recognition of this, SKMM realises that the public must be involved in efforts to regulate content and content applications services effectively. Self-regulation has become a vital component in its regulatory approach, co-existing and complementary to statutory regulation.

Strengthening EnforcementSKMM’s constant monitoring has contributed towards the increase of more effective enforcement action. This helps ensure the rights of the licencees, investors, consumers and the public are always protected and the confidence in the communications and multimedia industry are maintained at all times.

In 2008, 403 cases were investigated by SKMM for various offences under the CMA 1998, three cases under PSA 1991 and two cases under DSA 1997. Of the 408 cases investigated, 188 were non-compliance cases committed by the licencees. 23 offenders were charged in court and 107 were offered compounds amounting to RM1,498,600 for various offences committed.

Aside from enforcement actions, in 2008, SKMM with the co-operation of the major licencees successfully



014 015organised seminars for their employees with the objective of educating staff on compliance issues, CMA 1998 and the relevant Regulations and to ensure all the compliance issues are adhered to.

In addition, it is hoped that this would promote self-regulation and better compliance by the licencees in accordance to the law. Approximately 700 employees attended the seminar and speakers from SKMM were also invited during the seminar.

Choice for the Consumer,Competition for the ProvidersIn April 2008, SKMM commenced the review of the Access List and Mandatory Standard on Access, and conducted preliminary discussions with the stakeholders of the communications and multimedia industry. On 25 September 2008, SKMM issued the Public Inquiry Paper in accordance with Sections 55(2), 55(4), 59 and 61 of the Communications and Multimedia Act (CMA) 1998 to seek public opinion.

SKMM also conducted two public hearings wherein the public were able to seek clarification on issues raised in the Public Inquiry Paper. Subsequently, SKMM published the Public Inquiry Report on 21 December 2008, followed by issuance of two determinations, namely the Access List and the Mandatory Standard on Access on 5 January 2009.

In undertaking this review, SKMM began by examining the competitiveness of the seven markets within the communications and multimedia industry, covering fixed telephony, mobile telephony, upstream network elements, interconnection, leased lines, broadcasting transmission and broadband markets. Thereafter, SKMM determined the facilities and services on the Access List to ensure end-users’ long-term benefits.

Consistent with the Government’s objective to increase broadband penetration in Malaysia, an important focus

of this review is on stimulating the level of competition in the broadband market. In this, SKMM adopted a forward-looking approach and considered the newer technological developments such as the high-speed broadband network and WiMAX. In considering the high-speed broadband network, SKMM ensured that the review is consistent with the regulatory framework to be applied to the TM HSBB as stated in the Ministerial Direction on HSBB and Access List. As a result of considering all relevant factors stated in the Ministerial Direction on HSBB and Access List, two new services, High Speed Broadband Network Services with Quality of Service and High-Speed Broadband without Quality of Service, were included in the Access List.

In addition, SKMM also implemented Full Access, Sub-loop, Line Sharing and Bitstream Services (collectively also known as Unbundling of Local Loop in other jurisdictions) on the copper network, in areas where the high-speed broadband network is not deployed. This would enable other service providers to access the copper network in order to provide competitive broadband services to their customers. With the completion of this review, SKMM envisages that competition will be promoted in the wholesale market which will eventually benefit end-users in the form of lower prices, better quality of services and a more attractive range of products and services.

Not only is market competition encouraged and developed through licensing and access to market for the sake of consumer choice but competition is also encouraged through the change of service ecosystem namely the implementation of Mobile Number Portability (MNP).

Upon completion of the MNP Test Phase, SKMM commenced the Launch Phase for MNP with a Limited Live Trial (LLT) from 29 August to 14 October 2008 before going live nationwide. After a successful LLT

period, MNP was then launched nationwide on 15 October 2008 and all limits on port-in numbers and restrictions on locations were lifted.

Cybersecurity in the Age of ConnectivityAn integral part of our efforts at consumer protection is in the area of cybersecurity. The Internet has shifted key financial and personal information into the hands of the consumers. Almost everything can be done on the Internet with much ease, for instance buying and selling, banking, social networking and many other activities. However, much like the real world, criminal elements do lurk on the Internet. Cyber threats have been on the rise and they come in many forms and disguise, and what’s even more alarming, also getting more organised. The message is clear that concerted and collective efforts at national, regional and international levels are required to deter such criminal acts that are costly to both consumers and businesses. In Malaysia, a cyber security monitoring centre was set up to increase vigilance over the networks.

SKMM, in line with the Tenth National Policy Objective to ensure reliable and secure network, has taken on the responsibility to create a proactive platform that will be able to disseminate early warnings to its stakeholders, critical network information infrastructure and the public on possible threats through the SKMM Network Security Centre (SNSC) Project.

The SNSC has been established to monitor malicious payloads and cyber attack signatures over the Malaysian Internet traffic. Any detection of such threats would be

followed by advisories to all critical network information infrastructure owners and further assistance to mitigate the threats. SKMM has successfully completed the first phase of the SNSC project, involving seven major ISPs. We recognise that ISPs, being the owners of networks in Malaysia, collectively form the Malaysian Internet. They are the heart beat of the Malaysian Internet as they interconnect the Malaysian public and private networks with the global networks.

The future phases of the NSC project will include other smaller ISPs, other critical information infrastructure and existing cyber security agencies. The SNSC will conduct periodic cyber exercises with external entities to continuously revise its policies and ensure the readiness of our nation’s networks in dealing with cyber threats.

Also, in efforts to enhance the country’s capability to withstand cyber threats, SKMM hosted the inaugural IMPACT World Cyber Security Summit (IMPACT WCSS), held in Kuala Lumpur from 20 to 22 May 2008. This was the largest ministerial forum ever organised on cyber security threats, which saw a gathering of ministers, industry leaders, technology luminaries and cyber security experts from 27 countries including Australia, Canada, India, Japan, Mexico, Saudi Arabia, Singapore, South Korea, Thailand and the United States. The IMPACT WCSS included the inaugural meeting of the IMPACT International Advisory Board, a ministerial round-table, and plenary sessions and in-depth discussions on the latest cyber security threats, trends and issues facing countries.

The Summit was officiated by the former Prime Minister YAB Tun Abdullah Ahmad Badawi, who delivered the keynote address. Dr Hamadoun Toure, the Secretary-General of the ITU also delivered his address during the opening ceremony.

The goal of the inaugural summit was to chart the

direction of the IMPACT as a global multilateral collaborative platform for a joint partnership between governments and the private sector to combat cyber security threats. Part of the effort will include the establishment of an “early warning” system i.e., the IMPACT Centre for Global Response which will facilitate swift identification and sharing of information with member-governments during cyber security emergency and threats. It is envisioned that this system will actively monitor threats and be a focal point for governments during any cyber security incidences. The Centre will also play an important role in policy formulation, international co-operation as well as become a centre for training and promulgation of cyber security best practices.

International ParticipationBesides the IMPACT WCSS which stands to leapfrog Malaysia’s involvement in efforts against cyber terrorism, SKMM also takes an active and pro-active role in international affairs with communications and multimedia stakeholders.

SKMM’s international activities are, first and foremost, guided by the CMA 1998, in particular the first National Policy Objective to facilitate the transformation of Malaysia into an industry global hub. In planning and organising international engagements and activities, SKMM is cognisant of the global communications and multimedia scenario, especially the need to create resiliency in the industry during the global economic slowdown and to ensure that the country’s needs are met.

SKMM engages with various international organisations listed in a Ministerial Direction issued under Section 269 of the CMA 1998. Working in close partnership with the Ministry of Energy, Water and Communications (KTAK), SKMM represents Malaysia as the regulatory authority in communications and multimedia while at the same time building and co-ordinating Malaysia’s International profile and activities in this industry.

Furthermore, SKMM collaborates with its various counterparts both regionally and internationally to enhance regulatory measures and practices towards mutual industry competitiveness and growth, facilitate inbound and outbound investments and trade, as well as to develop network and human resource capabilities in communications and multimedia applications and transactions. These various engagements serve to create cross-border industry alliances and smart partnerships for the growth of the industry. Consequently, SKMM is also involved in various bilateral and multilateral negotiations such as Free Trade Agreements and Economic Partnership Agreements with our trade partners, which is led by Ministries of Foreign Affairs and International Trade and Industry.

Fast Forward 2009As we peek into 2009, we will see the slowdown in growth for the communications and multimedia industry in tandem with the global economic downturn. However, I am confident that the industry will still act as a major catalyst and contributor towards increasing the competitiveness of the country in the future.

What is in store for us in the next decade? The foundations have been set, the progressive build-up is on its way and it is up to the current and future visionaries and workforce to lead the way for the industry to realise its full potential.



Commission Members

016


017


Commission Members

is currently the Executive Deputy Chairman of Rating Agency Malaysia Holdings Berhad (RAM). Prior to assuming the lead position to start up Malaysia’s first credit rating agency, he had held various positions with Bank Negara Malaysia from 1962 until 1991.

He was seconded to the Ministry of Finance from June 1986 to April 1991 as the Director of a special unit for monitoring and restructuring Government owned companies. From August 1998 to July 2001, Tan Sri Datuk C. Rajandram was the Chairman of the Corporate Debt Restructuring Committee (CDRC), one of the three institutions set up by the Government following the 1997 Asian financial crisis.

He is a Fellow of the Certified Public Accountants, Australia (FCPA), Member of the Australian Society of Cost Accountants, Associate Member of the Australian Institute of Bankers, Member of the Malaysia Certified Public Accountants (MACPA) and Fellow of Bankers Institution of Malaysia (FBIM).

Tan Sri Datuk C. Rajandram was appointed as a Commission Member on 1 December 2002 and is currently serving his third term as a Commission Member.

Tan Sri Datuk C. Rajandram was appointed as Chairman of the Malaysian Communications and Multimedia Commission (SKMM) on 1 April 2006.

Datuk Dr. Halim obtained a Bachelor of Economics (Hons.) from the University of Malaya (1972), Masters in Public and International Affairs from the University of Pittsburgh, USA (1980) and a Doctorate in Information Transfer from Syracuse University, USA (1988). He also attended the Advanced Management Programme at the Harvard Business School, USA, in 2000.

Datuk Dr. Halim has held several positions in the Government sector, including serving as Assistant Secretary at the Ministry of Education. He served as Programme Co-ordinator for the National Computer Training Center at the National Institute Public Administration (INTAN), and as Director of the Information Technology Division of the Malaysian Administration Modernisation and Management Planning Unit (MAMPU) in the Prime Minister’s Department.

Datuk Dr. Halim went on to serve as the Director of INTAN before being appointed Deputy Secretary-General to the Ministry of Energy, Communications and Multimedia, in 1999. He was subsequently appointed as Secretary-General to the Ministry of Energy, Water and Communications, from November 2000 till March 2006 immediately prior to his current position as Chairman of SKMM.

Datuk Dr. Halim Shafie

019 018


Commission Members

Datuk Dr. Abdul Samad bin Haji Aliasis a Fellow of the Institute of Chartered Accountants in Australia. He has extensive experience in auditing and accounting. He is currently Chairman of Bank Pembangunan (M) Bhd, Chairman of Malaysia Venture Capital Management Berhad and Chairman of Malaysia Debt Venture Berhad. He is a Board Member of Lembaga Tabung Haji, Malaysia Deposit Insurance Corporation, Perbadanan Kemajuan Iktisad Negeri Kelantan, Felda Holdings Berhad and TH Plantations Berhad. He is also a member of the Malaysian Institute of Certified Public Accountants and the Malaysian Institute of Accountants. In 2006, Datuk Dr. Abdul Samad received global recognition through the Association of Chartered Certified Accountants’ Award for Achievement in Asia.

Datuk Dr. Abdul Samad bin Haji Alias was appointed as a Commission Member on 1 October 2007.

Dato’ Dr. Halim bin Manis currently the Secretary-General of the Ministry of Energy, Green Technology and Water. His career in the Government spanned more than 30 years. He began his career as a civil servant with the Ministry of Home Affairs in 1977. He had served the National Institute of Public Administration (INTAN) in various capacities for about 16 years, during which he gained vast experience in training and human capital development. In 1999, he was entrusted by the Government to establish and lead INTAN North East Sarawak Campus. During the stint at INTAN, he had also been appointed as a Consultant to develop training programmes in Brunei Darussalam, Zimbabwe, Namibia and many others.

In 2002, he was conferred the Eisenhower Fellowships, USA. Due to his vast experience and knowledge in the field of leadership, management and training, he was seconded as the Registrar of the University of Malaya in January 2003. In 2004, Dato’ Dr. Halim bin Man was appointed as the Deputy Secretary-General of the Ministry of Energy, Water and Communications and subsequently, in 2006, he was promoted to be the Secretary-General of the same ministry which is now known as the Ministry of Energy, Green Technology and Water.

Dato’ Dr. Halim bin Man is an Exco Member of the Eisenhower Fellowships Association Malaysia. He is also a board member of Bank Simpanan Nasional, Telekom Smart School, GITN Sdn. Bhd. Malaysia-Thailand Joint Authority, Multimedia Development Corporation and Water Asset Management Company Berhad.

Dato’ Dr. Halim bin Man was appointed as a Commission Member representing the Government on 1 September 2007 and is currently serving his second term.

021 020


Commission Members

was appointed as Chief Operating Officer (COO) of the Malaysian Communications and Multimedia Commission (SKMM) on 16 June 2008. Encik Mohamed Sharil brings with him a considerable number of years of experience in the legal field, communications and multimedia industry, as well as experience in the financial advisory and strategy consulting areas. Encik Mohamed Sharil was the Executive Director and Head of Strategy in BinaFikir Sdn Bhd, a financial advisory and strategy consulting firm, prior to being invited to join SKMM as the COO.

He first joined SKMM in May 2000 and left for BinaFikir after serving SKMM for a period of six years. His last position in SKMM was the General Manager and Senior Advisor in the Office of the Chairman. In the international arena, Encik Mohamed Sharil has worked closely with the main international organisations in the Internet field, such as the Internet Corporation of Assigned Names and Numbers (ICANN), where he was the immediate past Chairman of the Government Advisory Committee (GAC) and a board member of ICANN for 4 years. Encik Mohamed Sharil holds a Bachelor’s Degree in Law from University College of Wales, Aberystwyth and qualified as a Barrister from Gray’s Inn, England and Wales (UK).

In recognition of his in-depth knowledge of the communications and multimedia sector both locally and globally, he was appointed as a Commission Member of SKMM from 1 May 2006 and he continues to serve as a Commission Member to date.

Encik Mohamed Sharil bin Mohamed TarmiziDato’ Dr. Gan Khuan Poh is currently the Chairman of Lintramax (M) Sdn Bhd and Silver Bird Group Berhad and sits on the Board of Directors of Prudential Assurance Malaysia Berhad, Time Engineering Berhad and DagangNet Technologies Sdn Bhd. He is also a member of the Executive Council of the Malaysian Economic Association after being the immediate past President of the Association, a member of the Tenaga National Berhad Economic Council and the Senior Economic Research Fellow of the Asian Strategic and Leadership Institute.

He served in the public service as an Administrative and Diplomatic Service Officer at various positions from the District level to the Federal Government especially in the Prime Minister’s Department, at the Development Administration Unit, the Implementation Co-ordination Unit and the Economic Planning Unit (EPU) before retiring as the Senior Director responsible for Macroeconomics in the EPU. Then he became the Group Managing Director of the Pilecon Group of Companies. He joined Universiti Kebangsaan Malaysia as a Professor holding the post of a Senior Fellow of Institut Kajian Malaysia dan Antarabangsa (IKMAS). He holds a Ph.D.(Economics) and an M.A.(Economics) from Duke University, USA, a M.B.A.(Finance) from Cornell University, USA and B.A.(Honours) in Business Economics from University Malaya.

Dato’ Dr. Gan Khuan Poh was appointed as a Commission Member on 1 April 2002 and is currently serving his fourth term.

023 022

Datuk Mohd. Zain Mohd Domholds a Bachelor’s degree in Sociology. He started his career in the diplomatic service in 1976 and has, amongst others, held the positions of Assistant Under Secretary and Principal Assistant Director of the International Trade Division, Assistant Permanent Malaysian Representative to Geneva and Deputy Permanent Representative to the United Nations, Geneva (International Trade Division). Other notable appointments include being the Minister Counsellor for Economic Affairs of both the Malaysian Permanent Representative Office to the European Union (EU), Brussels and the Malaysian Permanent Representative Office to the World Trade Organisation (WTO), Geneva. He was the Lead Negotiator for the Malaysia-Australia Free Trade Agreement (FTA), the Malaysia-New Zealand FTA as well as the ASEAN-Australia-New Zealand FTA negotiations in 2005 and 2006.

Datuk Mohd. Zain was appointed as the Secretary-General of the Ministry of Domestic Trade and Consumer Affairs on 6 February 2007. He was appointed Chairman of the Companies Commission of Malaysia on 1 March 2007. He is a Member of MyIPO Board since 6 February 2007.

Datuk Mohd. Zain was appointed as a Commission Member on 1 January 2008.

Datuk Idris Abdullah holds a First Class LLB (Hons) degree from the University of Malaya. Datuk Idris Abdullah is a Senior Partner of Idris and Company Advocates since 1989, a Sarawak -based legal firm. He began his career in 1981 as a resident lawyer at Ting and Company Advocates in Sibu, Sarawak. Between 1982 and 1985, he served as an in-house Legal Advisor to a Sarawakian Group of Companies with diverse business interests. During his tenure, he was also involved in advising the group’s activities in human capital development, corporate affairs and corporate finance.

Datuk Idris Abdullah was also a shareholder of many Bumiputra companies based in Sibu, Sarawak. He was appointed a Director and the Chairman of Kuantan Flourmills Bhd, from October 2002 until September 2005. He is also an advisor to some Sarawak companies involved in construction and building, motor vehicle trading, recreation club and education. Currently, he is the Chairman/ Director of Magnus Energy Group Ltd., which is listed in the Republic of Singapore, with interests in oil and gas in China and Australia, and development of coal mining activities in Indonesia. Datuk Idris is also a Member of the Companies Commission, having been reappointed a third term on 16 April 2009. As an active Member of the Companies Commission, Datuk Idris has been appointed a Member of the Audit Committee and Member of the advisory panel of the Companies Commission Training Academy (COMTRAC).

Datuk Idris Abdullah was appointed as a Commission Member on 26 May 2008.

025 024


Commission Members

026 027Senior Directors

Zamani Zakariah Senior Director,MyICMS

Dato’ Jailani Johari Senior Director,Universal Service Provision

Toh Swee Hoe Senior Director,Research & Planning

Mohd Aris Bernawi Senior Director,Resource Assignment & Management


028 029

LailaHassanActing Senior Director,Licensing & Economic Regulations

Tengku Zaib Raja Ahmad Senior Director,Human Capital Management

Nik Abdul Aziz Nik YaacobSenior Director,Strategic Information System

Amarjit SinghSenior Director,Content, Consumer, Network Security and Postal

Ruzlan Zabidi Senior Director,Management Services

Mohd Ali HanafiahSenior Director,Technology, Standards and Network


Senior Directors

030 031


ASnapshotofStatisticsonCommunications&MultimediaActivities1) C&M Revenue Market Share by Sector Communications and Multimedia Revenue Market Share by Sector 2008

Source: IPR 2008

2) Fixed Line Demand and Penetration Rate

Source: IPR 2008

3) Cellular Mobile Penetration Rate (1997-2008)

Source: Industry, SKMM Cellular Mobile Penetration Rate

4) Mobile Subscriber Base by Age Group

Source: SKMM Handphone Users Survey (HPUS) 2008

5) Percentage of Users Accessing Internet through Mobile

Source: SKMM Handphone Users Survey (HPUS) 2008

6) Percentage of Internet Users per Household by Age Groups

Source: SKMM Household Use of Internet Survey 2008

7) Percentage of Household Use of Internet by Activities

*Not canvassed in 2005 and 2006 survey Source: SKMM Household Use of Internet Survey 2008

Major Telcos RM35.5 billion (87%)

Broadcasting RM3.8 billion (9%)Others RM0.6 billion (2%)

Pos Malaysia RM0.9 billion (2%)

19.7

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

4.8

4.7

4.6

4.5

4.4

4.3

4.2

4.15

10

15

20

25

4 0

19.5 19.7 19.618.8 18.1

17.2 16.6 16.1 15.8 15.3

Tota

l Sub

scri

bers

(mill

ion) Percentage Rate (%

)

Fixed Line Demand

Penetration Rate

Pene

trat

ion

Rate

(%)

01998

9.7 12.0

21.830.8

36.943.9

56.5

74.1 72.3

85.1

98.6

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

20

40

60

80

100

120

Age Percentage Share of Handphone User Base (%)

2005 2006 2007 2008

Pre teens & teens (up to 19) 13.1 20.5 20.9 24.4

Adults (20-49) 78.2 66.8 66.8 62.5

Seniors (50+) 8.7 12.6 12.3 13.1

Age Percentage Share of Handphone User Base (%)

2006 2007 2008

Yes 18.4 13.7 11.5

No 81.6 86.3 88.5

Percentage Share of Household User Base (%)

Age Category 2005 2006 2008

Below 15 6.5 7.3 6.8

15 - 19 18.6 18.7 17.9

20 - 24 17.2 16.3 15.7

25 - 29 12.5 11.3 11.9

30 - 34 12.2 12.3 11.7

35 - 39 9.9 10.4 11.2

40 - 44 9.6 10.6 9.3

45 - 49 5.1 6.1 6.1

50 and above 8.4 7.1 9.4

Percentage Share of Household User Base (%)

Internet Usage 2005 2006 2008

For getting information 40.5 84.5 94.4

Communications by text 99.6 80.7 84.7

Leisure 47.1 52.7 63.5

Education 46.8 45.9 64.5

Financial activities 14.6 23.6 31.8

Public services 12.7 12 29.2

e-Government transactions* - - 19.8

Online stock trading* - - 5.9

Others 1.3 0.2 0.7

Speeding Up the Growth of ICT

ICT has become an essential part of our lives. We rely more and more on its applications in so many facets of our daily life, more so at work and how we do business. To meet with this ever-growing dependence on ICT, it is vital that we keep in tandem with its applications so as to accelerate its penetration and usage within an even wider growing base offering enhanced technology with faster access.

034 Progress Report for Broadband (MyICMS 886) 2008

036 TM’s Undertakings037 Application of the Regulatory Framework

for High-Speed Broadband Network037 Economic Indicators on Broadband’s

Benefits to the Nation037 Indicators for Broadband Take-up038 Report on QoS Compliance on

Broadband Services038 Managing Communications Infrastructure042 Promotion of Local Content Development

and NCDG044 Establishment of R&D Initiatives Under Digital Home045 Implementation of U-Library048 Digital TV051 Mobile Number Portability (MNP)

01 032


034


Figure 1: NBI GOVERNANCE STRUCTURE

NATIONAL BROADBAND IMPLEMENTATION (NBI) STEERING COMMITTEE

Chairman : Dato’ KSU KTAK

INDUSTRY CONSULTATIVE COMMITTEE MEETING ON

BROADBAND IMPLEMENTATION

STATES BROADBAND IMPLEMENTATION AND

CO-ORDINATION COMMITTEE

CABINET COMMITTEE ON BROADBAND (CCB)

Chairman : YAB DPM

HSBB PROCUREMENT MONITORING COMMITTEE

TECHNICAL MONITORING COMMITTEE

BROADBAND TAKE-UP COMMITTEE

INTEGRATED PROJECT MANAGEMENT OFFICE (IPMO)

INTEGRATED CONTENT DEVELOPMENT TASKFORCE (ICON)

Chairman : Tan Sri KSN

Progress Report forBroadband (MyICMS 886) 2008High Speed Broadband (HSBB)The strategy for the nationwide broadband implementation to achieve 50% household penetration by the end of 2010 was proposed through the Cabinet Committee on Broadband (CCB) chaired by the Honourable Deputy Prime Minister.

On 15 May 2008, the Government announced details of the strategy to extend broadband penetration throughout the nation. The implementation covers two categories, with the first being High Speed Broadband (HSBB) for selected areas delivering more than 10 Mbps and the second is Broadband to the General Population (BBGP) with speeds of up to 2 Mbps.

On 16 September 2008, the Government and Telekom Malaysia Berhad (TM) entered into a public-private partnership (PPP) with the signing of the Agreement for the HSBB Project. The total cost of this ten-year project is RM11.3 billion, with the Government contributing RM2.4 billion for the first three years. In turn, TM will undertake investments to the tune of RM8.9 billion over the ten-year duration.

The project will cover the inner Klang Valley, industrial areas nationwide and Iskandar Malaysia, connecting 1,335,544 premises with the HSBB network. Through this agreement between TM and the Government, returns from the project will be apportioned on a “Revenue Sharing” basis of either the “fixed revenue sharing” or the “surplus revenue sharing” methods. Any cost-savings derived from the project will be returned to the Government and TM through a mutually prearranged formula.

The whole nation, covering the Government, the

business sectors, socio-economic sectors and people representing all walks of life, stand to benefit greatly from the enhancement of the HSBB services offered through the public-private partnership approach. With the roll-out of the HSBB infrastructure, a whole new highly-interactive digital lifestyle environment will proliferate and thrive. Many new offerings and enhanced services will be introduced, such as e-Education, e-Commerce, e-Health, e-Government, Internet Protocol TV (IPTV) and e-Payment. The implementation of nationwide broadband services is indeed timely and stands to significantly contribute to the development and growth of the country’s social-economic community.

National Broadband Implementation (NBI) Governance StructureTo ensure the target of a 50% household penetration by the end of 2010 is realised, several working committees have been established to monitor and supervise the ongoing progress of the project. The National Broadband Implementation (NBI) Steering Committee was established under the Cabinet Committee on Broadband and this Committee, in turn, oversees these working committees from both the demand and supply sides.

The working committees are as follows:1) States Broadband Implementation and Co-ordination Committee2) HSBB Procurement Monitoring Committee3) Technical Monitoring Committee4) Broadband Take-up Committee

The States Broadband Implementation and Co-ordination Committee was formed to ensure the success of the broadband implementation in each state. Discussions were held with several state governments.

The HSBB Procurement Monitoring Committee was established to monitor the HSBB procurements made

by TM and to ensure local companies’ involvement in this project.

The Technical Monitoring Committee is tasked to monitor the technical aspects of HSBB and BBGP implementation such as infrastructure-related issues, coverage areas and claims verification. The Technical Monitoring Committee held several discussions on finalising the process of consultant appointment for the HSBB project. The Committee explored ways and means for industry-players to work towards achieving the target of 50% broadband penetration. This includes ensuring industry players to expand on the coverage areas for their services to achieve the target set.

Lastly, the Broadband Take-up Committee is responsible for a comprehensive broadband data collection and trend analysis so as to track the progress of broadband take-up, and thereon to review and analyse available schemes and incentives. The Committee organised a workshop with various industry players to establish and identify the indicators for broadband and explore ways of ensuring the data received by SKMM is more comprehensive and accurate.

In addition to the above, an Industry Consultative Committee on Broadband Implementation was formed and a number of meetings were held to handle issues

related to industries with regard to the nationwide broadband implementation.

In turn, the above four committees report to the Integrated Project Management Office (IPMO) comprising members from the Ministry of Energy, Water and Communications (KTAK), SKMM and TM. The IPMO monitors the National Broadband Implementation, focusing on three core areas, covering Measurement, Awareness and Promotion, and Applications.

The Integrated Content Development Taskforce (ICON) was formed to study the online content development initiatives of both the public and private sectors. ICON is chaired by the Chief Secretary to the Government. The secretary for the meeting is jointly held by MAMPU and MDeC, which represents both the public and private sectors’ initiatives, respectively.

The organisation of the NBI Governance structure is shown in Figure 1 below.

Other key aspects addressed as part of the co-ordination and monitoring exercise to ensure the success of the HSBB project include:1) In November 2008, at an HSBB Implementation

Co-ordination meeting involving KTAK, SKMM and the related ministries and government agencies,

an agreement was established to process every complete application for site approval from TM within five working days. TM was also allowed to make bulk submissions for obtaining approval in order to facilitate and accelerate the HSBB project implementation. Each agency concerned and the Local Authorities have agreed to appoint a Liaison Officer comprising a Senior Officer to process the applications and assist to speed up decision-making associated with such HSBB project applications.

2) In December 2008, the Taskforce comprising officers from SKMM and KTAK undertook the verification process for the HSBB roll-out over three days at TM’s site. In essence, the verification covers two major areas, namely:a. Technical verification which includes project and

equipment verification, and documentation such as tender documents, project timelines, etc;

b. Financial verification which covers considerations such as cost of equipment and documentation such as purchases, accounts and project accounts verification with project managers.

Based on the methodology and sampling used to verify the expenditures and claims, the Taskforce verified a total of 36 projects in the Access, Core and International networks categories.

035Speeding Up the Growth of ICT

036 037


enhance the business and consumer-user experience. The awareness programme serves as a platform for the public to acquire more knowledge on broadband, which stands to become the catalyst for many other technological advancements such as RFID, VoIP and so on.

Application of the RegulatoryFramework for High-SpeedBroadband NetworkWith the signing of the HSBB Agreement on 16 September 2008 between the Government and TM, the Ministerial Direction on High-Speed Broadband and Access List, Direction No. 1 of 2008 (Ministerial Direction on HSBB and Access List) was issued on the same date, and was registered on 19 September 2008.

The Ministerial Direction on HSBB and Access List directed SKMM on the regulatory framework to be applied to TM’s HSBB network, as follows:• To direct SKMM to review the HSBB network

in relation to other networks. The factors to be considered in this review are specified as follows: a. Long-term benefits of end users; b. Effect on infrastructure investment; c. Effect on competition including any

anti-competitive practices; and d. Promotion of the national policy objectives;

• TodirectSKMMtodefertheimplementationofFullAccess Service, Line-sharing Service and Sub-loop Service where such services are provided over the HSBB network for seven years from 16 September 2008 to 15 September 2015;

• ToprovideastatementofTM’sintentionthatthreeHSBB services (High-Speed Broadband Access Services, High-Speed Broadband Connection Services and High-Speed Broadband Transmission Services) will be provided to Access Seekers on a commercially negotiated basis; and

• In all other aspects, the Access List remainsunaffected.

Economic Indicators on the Benefits of Broadband to the NationThe increased broadband will contribute significantly towards the increase in Gross Domestic Product (GDP). According to the Economic Planning Unit, based on initial estimates, the contribution to GDP is projected at RM6.68 billion or 1% in 2010. Around 135,000 new jobs are expected to be created at the same time.

Table 1 shows the contribution to GDP and new jobs to be created in the future.

Table 1: Source - Economic Planning Unit

The other major benefits of broadband for the country include the following:1) Improved access and higher quality of education,

health, financial services and tourism;2) Improved business environment for investors;3) Improved sustainability of the country’s environment;4) Narrowing disparity between the urban and rural

from e-inclusion; and5) Creation of new industries and services.

Indicators for Broadband Take-upThe monitoring of broadband take-up is performed on a weekly basis. Broadband indicators are based on technology type, at both state and national levels. As at Quarter 4 of 2008, the household broadband penetration rate was 21.1% with the number of broadband subscribers in Malaysia standing at 1.7 million, with 1.3 million being residential subscribers and 0.4 million non-residential subscribers.

SKMM and the Wireless Broadband Operators have worked together under the Broadband Take-up Committee to undertake a survey. With effect from Quarter 4 of 2008, mobile broadband substitution on fixed lines for household penetration had been factored at 39.4% contribution.

The usage of broadband by technology indicates that the widely popular ADSL (Asymmetric Digital Subscriber Line) service has captured the most users, with 1.2 million subscribers in the last quarter of 2008. This represents 75% of broadband subscribers, ahead of mobile broadband with 22.5%, SDSL (Symmetric Digital Subscriber Line) at 0.5%, Satellite 0.3%, others (fixed-line) at 0.4% and others (wireless) at 1.4%. The percentage of broadband subscriptions by technology is shown in Figure 2, (see next page).


Year Contribution to GDP(based on 6.0% real GDP)

Number of Jobs CreatedRM(Billion) Percentage (%)

2010 6.68 0.98 135,000

2012 10.68 1.39 220,000

2017 3.59 1.32 281,000

2022 15.88 1.16 329,000

2008 Projects CoveringBroadband ImplementationThe two main projects undertaken covering the broadband implementation are as follows:1) Pilot Broadband Project in Penang and Kulim This project was implemented with the target of

achieving a broadband penetration rate of 80% in Penang in 2010. It involves broadband expansion in six locations in Penang and Kulim covering Batu Feringghi, Bayan Lepas, Bukit Mertajam, Batu Kawan, Kulim and Kepala Batas. All the six locations are connected by a Common Data Centre located in Kulim. As of 2008, 43 locations within Bayan Lepas, Batu Feringghi and Kulim were equipped with WiFi Hotspots facility.

2) Klang Valley Broadband Push (KVBP) The KVBP pilot project, which was launched earlier

in 2007 to increase broadband penetration rate to 90% of households in the Klang Valley by the year 2010, continued to be pursued. Among the projects implemented in 2008 include:a. WiFi within libraries - 10 libraries in the Klang

Valley were equipped with free WiFi facility. b. Wireless@KL – a collaboration between DBKL

and Packet One Networks (M) Sdn Bhd, with the support of SKMM, to install 1,500 WiFi hotspots in Kuala Lumpur. Since the launch of this project on 12 May 2008, up to 200 hotspots in 42 locations in Kuala Lumpur and almost 700 Access Points (AP) have been installed.

c. eSchool - a collaboration between SKMM and TM with the placement of ICT facilitators in four schools (St Johns’ Institution, SM Cyberjaya, SM Agama Bestari Subang Jaya and SK Taman Tun Dr Ismail) to assist teachers and students in the usage of ICT facilities.

d. U-Library – a collaboration between SKMM and a number of libraries in the Klang Valley; the National Library of Malaysia, Kuala Lumpur Library, Raja Tun Uda Library, Perpustakaan Hipermedia Subang Jaya and Petaling Jaya

Community Library that are inter-connected by network. A department has been formed to undertake this project. Two knowledge-sharing sessions on U-Library in the form of ‘ExecutiveTalk@SKMM’ for information professionals of public libraries throughout the country were organised.

e. Metropolitan Web Portal – a collaboration between SKMM and DBKL to set up a portal containing information on Kuala Lumpur. This portal called www.kul.com.my was launched on 12 May 2008 together with the Wireless@KL project.

Broadband Promotions in 2008The Mybroadband conference and exhibition with the theme ”Experiencing Convergence” was held from 28 to 30 October 2008 at the Kuala Lumpur Convention Centre. The objective of the exhibition was to promote broadband services, showcase the latest technologies, solutions in broadband and ICT applications, together

with exploring various initiatives by stakeholders on delivery-platform sharing and business model development for convergence.

TM’s UndertakingsIn return for the funding participation of the Government in the public-private partnership with TM, as well as in supporting the initiatives towards achieving the targeted broadband penetration rate, TM has committed to several undertakings as stated in the HSBB Agreement. They are as follows:1) Extending the HSBB network to government

buildings and Institutions of Higher Learning (both public and private) within and outside of the main zone identified for HSBB network coverage. A total of 83 institutions will be connected with the HSBB network.

2) Providing a content platform for other content and application providers.

3) Developing telecentres outside areas specified for USP (Universal Service Provision) for the public within the first five years of the project.

4) Devising and offering low-cost broadband packages to the public.

5) Organising public awareness programmes such as exhibitions, conferences, broadband experience centres, and other activities.

The overall benefits from such undertakings are that HSBB stands to enhance the Government’s public service delivery and the education processes of the Institutions of Higher Learning. Besides that, HSBB stands to drive the growth within the local content development community by enhancing consumer experience and improving content developers’ productivity. The development of telecentres will bridge the digital divide and provide basic broadband access to everyone. With an affordable broadband package in effect, this will significantly

038 039



The Malaysian InternetExchange Report for 2008SKMM was tasked to look into the establishment of the Malaysian Internet Exchange (MyIX), as a neutral exchange established to keep local traffic within the country by promoting and allowing direct peering among local Internet service providers. MyIX will not only reduce the international connectivity costs but also improve traffic latency, thereon also improving the quality of service for Malaysian Internet users.

Since its establishment on 15 December 2006, the MyIX peering members have been increased to 24 members and the total traffic from the members has increased from 400Mbps many fold.

As a result of the increase in bandwidth utilisation, the capacity of MyIX was upgraded from 1Gbps to 10Gbps in October 2008 to cater for the ever-increasing demand.

In formalising the collaborative arrangement for the peering members, it was agreed that the members of MyIX form an association under the Registrar of Societies (RoS). This was duely registered on 31 July

2008 with the RoS under the name of “Persatuan Pengendali Internet Selangor dan Wilayah Persekutuan” or the Internet Operators Association of Selangor and the Federal Territory. The MyIX peering members comprise the following:1) Telekom Malaysia Berhad 2) JARING Communications Berhad 3) AIMS Data Centre Sdn Bhd 4) Maxis Broadband Sdn Bhd 5) DiGi Telecommunications Sdn Bhd 6) TT dotcom Sdn Bhd 7) Nasioncom Sdn Bhd 8) REDtone CNX Broadband Sdn Bhd 9) Bizsurf (M) Sdn Bhd 10) Airzed Broadband Sdn Bhd 11) eB Technologies Sdn Bhd 12) Optical Communication Engineering Sdn Bhd13) Paneagle Communications Sdn Bhd 14) HeiTech Padu Berhad 15) VDSL Network Sdn Bhd 16) MyKRIS Asia Sdn Bhd17) Clear-Comm Sdn Bhd18) Izzinet Sdn Bhd19) NTT MSC Sdn Bhd 20) Packet One Networks (M) Sdn Bhd21) U Mobile Sdn Bhd22) Celcom (M) Berhad23) Global Transit Communications Sdn Bhd24) Macro Lynx Sdn Bhd

The Association undertook preparations to hold its first Annual General Meeting to appoint members of the Executive Committee for the following positions:1) Chairman2) Deputy Chairman3) Six Committee Members

Among the items of the agenda of the AGM included the preparation of the financial and business plans for MyIX, including establishing the peering charges to be paid by peering members.

Radiation and CommunicationsTower Matters In 2008, various public complaints were received voicing their concerns regarding RF radiation. On a positive note, SKMM agreed that measures of such nature should be attended to seriously and with urgency. Complaints were received nationwide which required extra and immediate attention to resolve the problems amicably. SKMM embarked on several initiatives, covering the organisation of a series of awareness programmes. Road shows, seminars and symposiums were held nationwide and below are some of the events undertaken during the course of the year.

Item Category No. of Projects

1. Access 168

2. Core 143

3. International 2

IMPLEMENTATION AS OF NOVEMBER 2008

313

Figure 2 : Percentage of Broadband Subscriptions by Technology

The broadband community access consists of 2,264 cyber cafes nationwide covering 11.3 million population, Government Net (1.2 million), 36 private institutions of higher learning (0.38 million), 20 public institutions of higher learning (0.41 million), 42 rural Internet centres (0.21 million), 117 Community Broadband Libraries (0.59 million), 2,008 Public Hotspots (0.35 million), 58 Community Communications Development Programmes (0.29 million), 12 Community Broadband Centres (0.06 million) and 10,000 SchoolNet locations (5.4 million).

Report on QoS Compliance on Broadband ServicesWhilst ensuring that consumers receive the best returns from their subscribed services, SKMM applies a series of Mandatory Standards for Quality of Services with regards to services such as Cellular, Broadband, Dial-up and PSTN (public-switched telephone network). As at end December 2008, SKMM initiated the exercise to perform the assessments for Cellular, Broadband Dial-up and PSTN services on an outsourced basis through experienced and reputable consultants.

Managing Communications InfrastructureHSBB Implementation

ScopeThe scope of the HSBB project includes end-to-end deployment of high-speed broadband infrastructure that would require installation of new facilities and improvement to existing facilities. In general, the project entails deployment of broadband infrastructure as follows:1) Access Network infrastructure2) Core Network infrastructure3) International Network connectivity

It is expected that TM will deploy HSBB access to about 1.33 million premises in the areas identified by 2012.

While the access infrastructure will only see deployment of HSBB infrastructure capable of minimum speeds of at least 10Mbps, the deployment of new infrastructure and upgrading of existing infrastructure in the backbone (core infrastructure) and international connectivity stands to improve general connectivity and bandwidth for the nation’s overall broadband infrastructure.

HSBB Infrastructure DeploymentTM commenced work for some of the HSBB infrastructure following the issuance of the Letter of Award for the project on 25 July 2008 (“Effective Date”), pending the signing of the Agreement on 16 September 2008, which outlined TM’s responsibilities and obligations for the project covering the stipulated period of ten (10) years.

As at November 2008, TM successfully implemented 313 projects as scheduled, details as follows:

About 65% of the investments at this stage are in the core network where TM had installed or upgraded new backbone capacity. This included Metro-E, Broadband Remote Access Servers (BRAS), Transmission, Control and support system. About 30% of the investments involved improving international connectivity where TM built the Asia-America Gateway cable system with its consortium members. The remaining 5% was invested in various civil works, fibre-optic installation and mini roll-out for access projects in various areas within the Klang Valley. There were also 3,000 premises passed known as Mini Roll-outs at this stage.

Verification on Network Roll-outAs provided for under the HSBB Agreement, the Government will verify the network roll-out implemented by TM. During initial stage, a Verification Taskforce was set up within SKMM and KTAK to verify the network roll-out and to recommend to the Government for payment to be disbursed to TM.

The Taskforce verified the investments made by TM in access, core and international from 28 November to 11 December 2008. Documents and equipment were verified, both at the TM office and at sites where the projects were undertaken.

The PPP Agreement provided for an independent consultant to be appointed by the Government to verify the claims made by TM. A tender exercise for the appointment of the consultant was undertaken in November 2008 with the selection being finalised in December.

ADSL75.0%

Others (Fixed)0.4%SDSL0.5%

Satellite0.3%

Mobile22.5%

Others (Wireless)1.4%

Event Date Title

13 Jan 2008

Majlis Taklimat/Penerangan Mengenai Isu Radiasi Bagi Pembinaan Menara Telekomunikasi

11 Mac 2008

RF Dialog @ Lebuh Tunku Kudin 2, Gelugor, Penang

05 Jun 2008

Seminar Kesedaran Radiasi Struktur Telekomunikasi

24 Jul2008

Seminar Radiasi Frekuensi Radio dan Kesihatan Awam

20 Aug 2008

Majlis Taklimat/Penerangan Mengenai Isu Radiasi Bagi Pembinaan Menara Telekomunikasi Di Rembau

05 Nov 2008

Taklimat Kesihatan dan Keselamatan - Struktur dan Transmisi Komunikasi - Ipoh, Perak 5

08 Nov 2008

RF Seminar - Wireless@Penang

25 Nov 2008

Seminar Radiasi Frekuensi Radio dan Kesihatan Awam - Miri, Sarawak

16 Dec 2008

Taklimat Kesihatan dan Keselamatan Berkaitan Struktur dan Transmisi Komunikasi - WPKL & Putrajaya

SKMM-HSBB Verification Taskforce Team members during site inspection at Wangsa Maju, Kuala Lumpur

One of the seminars organised by SKMM and held in Kuala Lumpur

The seminars involved the participation of experts from the Ministry of Health (MoH), Agensi Nuklear Malaysia (ANM) and University Malaya Medical Centre (Prof Dr Ng Kuan Hoong, the author of SKMM’s book on “Radiation, Mobile Phones, Base Stations and Your Health”). This publication was widely circulated amongst the participants to raise their understanding on radiation matters.

SKMM has been working closely with MoH to provide consultancy regarding the radiation emission from various communications infrastructure and mobile phones. The consultancy which began in 2007 includes assisting MoH in developing the guidance document on EMF from base stations and mobile phones and the study on WiFi for the safe usage in hospitals. These areas need to be further developed to address rising concerns from the public and to provide assurance and guarantee that communications infrastructure utilising radio frequency (RF) are safe.

SKMM is also actively involved in the development of the Malaysian Standards (MS) for EMF under the purview of Department of Standards Malaysia (DSM). The MS will be based on the International Commission on Non-ionizing Radiation Protection (ICNIRP) which is widely accepted internationally. Upon registration, the MS will be the basis of EMF emission in Malaysia.

Moving forward, SKMM will be ready to counter public complaints by measuring the level of RF radiation at the complainants’ premises, so as to prove to them that the measurement level is far below the safe level. To provide SKMM’s regional offices with choice understanding and relevant knowledge on radiation emission, the ROs were trained and equipped with appropriate tools to measure the RF radiation levels at selected sites.

For this exercise, SKMM purchased relevant test gears to ensure adequate knowledge was disseminated to the staff of SKMM’s regional offices. The test

gears can continue to assist SKMM to educate and resolve further complaints from the public. Future complaints received by SKMM’s Consumer Complaints Bureau (CCB) is expected to be reduced through this approach.

The test gear for RF measurement

SKMM also undertook a revamp to the contents of its website information pertaining to radiation.

The web address at www.rfrad.gov.my

The website contains a wide selection of information covering awareness programmes, publications, RF measurement results at complainants’ premises,

041 040


FAQs, public survey, useful links and many other topics.

In conclusion, SKMM is aware about the industry requirements and the general public concerns with regards to various issues on towers and communications’ infrastructure. As such, SKMM has proposed to establish an industry committee to expedite the issues within the proposed terms of reference (TOR).

Objectives of the Formation1) A choice platform where industry players can converge to table and address issues

of interest and concerns such as infrastructure, health and radiation, etc.2) Commitment from industry players in helping to resolve problems on infrastructure

and health/radiation matters. 3) To cover the advent of new technology players: GSM, 3G and WiMAX.4) Finding mutual consensus, a model solution for the industry, states, local

authority and the public on various issues related to radio communication infra roll-out.

The proposed Committee is expected to be established in the first quarter of 2009 and would comprise industry members, State-backed Companies (SBC), Local Councils, SKMM’s regional offices and other relevant organisations. Amongst other objectives to be achieved include:• Targetforfullimplementationbyend-2009• Continuetheseeffortsuntiltheendof2010toachievetheBroadbandpenetration

rate of 50%• Fasterandsmootherinfraandserviceroll-out• ReducenumberofpubliccomplaintspertainingtoRFradiation• Increasenumberofsitesatallstates

Certification Matters

Certifying AgenciesSection 186 of the CMA 1998 provides for SKMM to register Certifying Agencies (CA) or Classes of Certifying Agencies (CCA) including agencies outside Malaysia. This affects the certifying mechanism for purposes of certifying compliance with codes or standards under Part VII, Technical Regulation of the CMA 1998. To date, SKMM has appointed three organisations and registered them as CAs.

SQASI undertakes certification programmes for certifying of all types of communications’ equipment for wired and wireless categories.

ALAM and MMC undertake the certification programme for proficiencies under the designated skill area pursuant to Regulation 26(1). ALAM is responsible to conduct the certification category for the designated skill area of a radio operator. In turn, MMC is appointed to carry out the certification programme for cabling providers.

The following chart records their achievements in performing their functions as registered certifying agencies for 2007 and 2008.

For the year 2008, a total of 2,384 certificates (Type Approval) for the category of communications equipment were issued by SQASI. Of this total, 1,823 approvals or 75.5% were issued for radio-based (wireless) equipment. Compared to 2007, the total certification for this category has decreased slightly by 5.1%.

No. Organisation RegistrationCategory

Date of Appointment

1. Sirim QAS International Sdn Bhd (SQASI)

Certification of Communications Equipment

3 Sep 2003


2. Malaysian Maritime Academy (ALAM)

Certification of Proficiencies for designated skill area of Radio 2003 Operator (Maritime)

3 Sep 2003

3. Multimedia College (MMC); formerly known as Telekom Training College

Certification of Proficiencies for designated skill area of Non-Radio Operator (Cabling Provider)

15 Jul 2002

2,5113000

2500

2000

1500

1000

500

0

2,3842,050

919

2,693

1,051

CAs Achievement for 2007 & 2008

No.

of C

ertifi

cate

s Is

sued

Certifying AgencySQASI MMC ALAM

20072008

YearCertification Category

TotalTelephony Radio Telephony (%) Radio (%)

2007 556 1,955 22.1 77.9 2,511

2008 561 1,823 23.5 76.5 2,384

Certifications of Radio Operator Proficiencies by ALAMALAM issues two categories of certifications under the certification of proficiencies for designated skill area of radio operators, i.e. certification of Maritime Radio operator of Global Maritime Distress and Safety System (GMDSS) of:• GeneralOperator’sCertificate(GOC)and;• RestrictedOperator’sCertificate(ROC)

The statistics for the certification programme conducted in 2007 and 2008 is detailed in the following table:

The certificates were issued under the provision of Regulation 27(2) of the Communications and Multimedia (Technical Standards) Regulations 2000 in conjunction with the Merchant Shipping (Training and Certification) Rules 1999 and its standard of competence and is in accordance with the provisions of Regulation IV/2 of the International Convention on STCW 1978 as amended in 1995 and the ITU Radio Regulations.

Certifications of Cabling Proficiencies by MMCThe Multimedia College (MMC) conducted certification programmes for certification related to cabling proficiencies. In 2007, a total of 2,050 candidates were certified in this proficiency category and for 2008, 2,693 candidates were certified. The following table details their certification achievement for 2007 and 2008.

Legend:1A : cabling provider – copper pair for customer’s premises (installation, jointing,

testing and maintenance); 1C : cabling provider – fibre-optic for customer’s premises (installation, jointing,

testing and maintenance); 1D : cabling provider – cabling network design for customer’s premises; 2A : cabling provider – copper pair for network (aerial and underground

installation, jointing, testing and maintenance);

2C : cabling provider – fibre-optic for network (aerial and underground installation, jointing, testing and maintenance); and

2D : cabling provider – cabling network design for network.

Certifications of Amateur Radio Proficiencies by SKMMThis category of certification has been conducted by SKMM since 2001. Two classes of certification are available, i.e. the Amateur Radio Operator’s Certificate (AROC) for Class A and AROC for Class B. The certifications are undertaken with two (2) separate examinations known as the Radio Amateur Examination (RAE) for the AROC Class B and the Morse Code Test (CW Test) for AROC Class A.

In 2008, SKMM successfully conducted two RAEs and two CW tests. Details of the examinations/tests are shown in the following table:

The Amateur Radio Operator’s Certificate (AROC) Class B is issued to those successful in the RAE; for Class A, it is issued to successful candidates in the CW test.

Promotion of Local Content Development and NCDGOverviewNetworked content is becoming an increasingly important subject alongside the rapid development of communications technology. In recent years, the Government has been increasing efforts to roll out world-class communications’ infrastructure to facilitate social and economic developments. Various directions and licences have been issued to support the robust progress in delivering communications and information services, such as 3G and WiMAX, to the masses. Some of the more recent mega-initiatives being geared up in these sectors are the High Speed Broadband (HSBB) and Digital Terrestrial Television Broadcasting (DTTB).

However, as with all developments in communications, people are not interested in the technical details of these new networks or facilities; rather, their interest lies in what these new networks can deliver for them. This means that a primary



TotalGOC ROC

2007 657 272 929

2008 820 231 1,051


Total1A 1C 1D 2A 2C 2D

2007 526 0 126 714 658 26 2,050

2008 738 0 40 607 1,269 39 2,693

concern of the authorities should relate to ensuring that adequate and exciting media contents and services can be provided over new networks. In this industry, the phrase ‘CONTENT IS KING’ echoes loud and clear. Without any credible plans being effected for content development, the future of these networks might be at risk.

Based on this realisation, the broadcast sector has taken bold steps to produce more local contents. In 2008, ASTRO allocated RM229 million for local content development compared to RM141 million in the preceding year. Meanwhile, Media Prima Berhad created its own content production arm called Primeworks Sdn Bhd and announced a RM250 million budget allocation for local content production for 2008 compared to RM196 million in 2007.

The content market in 2008 was invigorated by several developments such as the introduction of new channels on ASTRO, the country’s general elections, rapid growth in cellular subscriptions, aggressive promotions of HSDPA (High Speed Downlink Packet Access) and the entry of a new player, U-mobile into the market. Mobile subscriptions grew to more than 26 million in 2008 compared to 23.3 million in 2007. HSDPA take-up also grew exponentially to 203,900 last year compared to the previous year’s figure of 96,300.

The content industry in Malaysia is estimated to be worth RM7 billion as at 2008. It would appear that the colossal potential of the networked content industry has not been fully explored and promoted to become a reliable engine of growth. And from a national point of view, the content industry has an immense potential to become an engine for productivity and growth.

Besides the economic benefits and implications, this industry also brings social benefits and at the same time, strong social implications. It offers Malaysians an exclusive opportunity to project our unique culture and national identity to the world. If we do not nurture our local content industry in time, our communications and media networks will be overrun by foreign contents which may have little regard and hardly any affinity for our local culture and values.

Hence, content development has been identified as one of the six growth areas under the MyICMS 886 Strategy. The Content and Industry Development Department bolstered its effort in this area throughout 2008 with the objective of transforming Malaysia into a global hub for content development and services. The department adopted three key approaches namely:• Facilitatingstakeholdersundertheprevailingpoliciesandregulations,• Steppingupcapacitybuildingefforts;and• Providingincentivesforcontentdevelopment.

Networked Content Development Grant (NCDG)The RM20 million allocation made available under the NCDG scheme set up by SKMM has become one of the major hypes in the local content industry since its launch in 2007. The purpose of this scheme is to render funding assistance to small and medium-sized entrepreneurs (SMEs) content developers in line with the MyICMS 886 Strategy. It aims to facilitate and encourage the involvement of Malaysians in the creation, production and distribution of highly creative, original and marketable contents for both the domestic and international markets.

The table below provides some key facts and figures on the NCDG in 2008.

More attention was accorded to contents which have the potential to be exploited on multiple platforms as a means to promote convergence and triple-play business models. Although certain types of contents have their primary platforms such as broadcast, mobile or online, the developers applying for the grant were constantly challenged to prepare their product proposals to be suitable for use on other platforms so as to generate more revenues from the content that they had created.

The rigorous and transparent assessment procedures have seen only 25% approval rate for NCDG applications. At the core of this evaluation process is an expert committee comprising experienced and senior content development personnel representing the nine major stakeholder organisations within the industry.

Although the approval rate was apparently low, the outstanding performances shown by the six successful NCDG projects had given qualified justification. One of the projects, an animation series called ‘Mustang Mama Die-Hard Sports Fan’ by Inspidea Sdn Bhd, received international recognition and generated considerable revenue for the company.

Further details about the NCDG are available athttp://www.skmm.gov.my/what_we_do/ncdg/ncdg.asp

Market AccessOne of the two expected results of MyICMS 886 for Content Development is stated

No. Examination/Test Date ConductedNo. of Candidate

Attended Passed

1.Radio Amateur Examination (RAE)

24 Jun 2008 1,818 1,037

17 Dec 2008 1,802 993

2.Morse Code (CW) Test(Practical Test)

25 Mar 2008 20 13

24 Sep 2008 18 9

043 042Speeding Up the Growth of ICT

No. Description Status

1. Applications received 32

2. Applications approved 6

3. Unsuccessful applications 10

4. Applications on WIP (Works-in-Progress) 16

Total amount approved RM4,030,530.00


as “content will be a sizeable export revenue contribution for Malaysia”. To realise this vision, SKMM collaborated with other government agencies such as MDeC and FINAS to conduct market access programmes. In April 2008, SKMM became one of the co-organisers to bring Malaysian companies to sell their contents and to find co-production partners at MIPTV 2008 in Cannes, France.

The annual MIPTV organised by Reed MIDEM in Cannes is the largest media trade market in the world for co-producing, buying, selling, financing and distributing contents across all platforms. Attended by 13,000 participants and with participation of more than 4,000 companies/agencies from 93 countries, MIPTV is a concentrated avenue for local producers to meet and strike deals with major foreign buyers from Europe, America and Asia.

The Malaysian Pavilion at MIPTV 2008 hosted by the three co-organisers-MDeC, SKMM and FINAS-drew tremendous results. An animation licensing rights and a co-production deal worth RM7 million were sealed during the event. Other contracts worth RM71 million were finalised after MIPTV 2008 event. (Source: MDeC)

Malaysia’s participation at MIPTV 2008 produced indeed encouraging results towards achieving the objectives of MyICMS 886.

Capacity BuildingBuilding talented human capacity and commercial viability are vital aspects towards the creation of a sustainable eco-system of content development. In order to achieve this aspiration, SKMM leverages on its strength as the regulator and developer of the communications industry and to bring various parties together to conduct capacity-building activities.

In 2008, SKMM continued to collaborate with Maxis to co-organise the Mobile Content Challenge (MCC). MCC provides a platform for university students from all over the country to create exciting mobile content and applications. MCC 2008 garnered increased interest and participation compared to MCC 2007. Students from 59 institutions of higher learning submitted 185 entries for 2008 compared to only 96 entries for 2007.

The MCC project also achieved another important milestone in 2008. Two top winners of MCC 2007 entered into commercialisation contracts with two content providers in 2008. These were Focus IT from Universiti Malaysia Sarawak, who signed a commercialisation deal with Metadome Sdn Bhd for their HalalPro application and first runner-up team, Kids Cashier from Universiti Teknikal Malaysia, Melaka, signed with LTT Global Sdn Bhd for

their Mobile Money Edutainment application.

SKMM also teamed up with ASTRO and MDeC to co-organise a reality TV show called Nextgen Contentpreneur Awards (NCA), aimed at encouraging Malaysian youths to explore various aspects and skills of content creation.

Besides competitions, SKMM also conducts seminars and workshops to enlighten the public about burgeoning opportunities in networked content development. Two seminars were held in Kuching and Kuala Terengganu during 2008. Six workshops on mobile content development were organised throughout the country in collaboration with Maxis.

SKMM and the Ministry of Energy, Water and Communications (KTAK) also organised a dialogue session which brought together two important stakeholders in the content industry, namely the animation companies and the broadcasters. SKMM played the role of moderator and many interesting issues pertaining to the content industry were discussed. One of the issues, the lack of demand stimulation, was taken up by SKMM for further consideration.

Establishment of R&DInitiatives Under Digital HomesThe MyICMS 886 Strategy has identified and targeted Digital Homes as one of the new services which stand to propel Malaysia in the delivery of advanced information, communications and multimedia services towards improving the quality of life of Malaysians besides boosting the country’s global competitiveness.The desired goals in this area are as follows:a) Short-term – Home Gateway introduced in 60,000 homes to support small-office,

home-office (SOHO) type of applications;b) Mid-term – 500,000 homes interworking with external networks;c) Long-term – 1 million connected homes.

A digital home is defined as a home that is equipped with network that allows disparate devices to interoperate seamlessly. Consumers are able to access digital content from any device, anytime and anywhere, both inside and outside the home, through a home gateway. This would be a device that offers broadband connectivity to the home and delivers services to the home environment and to the different devices and interfaces that make up the home environment.

Futuristic “smart homes” are starting to descend from the level of sci-fi vision, enabling lifestyle services that are empowered by the next-generation of communications and sensor-based technologies. In the medium- to long-term, the connected home will leverage multiple elements of a home network to create a “smart home” environment that will weave digital services into consumer lifestyles.

This connected lifestyle services will be the connection that binds consumers together by providing new social networks. Today, service providers deliver distinct services to discrete devices. As the connected home takes shape, services need to be delivered by a centrally-controlled system where devices can “talk” to each other and services are designed to meet the needs of consumers. Services will be created, managed and delivered around consumer-centric lifestyle packages rather than the product-centric silos that characterise today’s product offerings.

The digital universe is expanding, and in today’s “Connected Life”, consumers expect entertainment, information and communication when they want it, how they want it, and even where they want it.

Digital Homes use networking technologies to integrate appliances, devices and services within the home to control and monitor the entire living space from within the home as well as from remote locations.

This would mean that Digital Homes are closely related to the telecommunications, broadcasting, home appliances networking and solutions.

As such, the development of Digital Homes and other services, infrastructure and growth areas under the MyICMS 886 Strategy such as High Speed Broadband, Digital Multimedia Broadcasting, Short Range Communications, USP, Multiservice Convergence Network, Home Internet Adoption, Product Design and Manufacturing and Foreign Ventures are inter-connected and interdependent.

With the objective to educate the general public and create awareness on digital lifestyles, SKMM together with the Multimedia University (MMU) and various industry players (Intel, LG, Maxis, Astro, Senstech, EOM Systems and TMNet) collaborated to construct a Model Digital Home.

Housed at the Multimedia University in Cyberjaya, the home functions as:• Atechnologyshowcaseofinnovativedigitalhome

related products;• A platform to introduce and demonstrate

functionality of digital home technologies from tertiary institution, industry partners, etc;

• Toprovideaphysical environment that actsasatest home for newly invented products/solutions;

• Generateinterestandpromoteadoptionofdigital-living from business perspective or consumer perspective.

This Model Digital Home showcases an end-to-end digital home ecosystem of innovative and integrated technology featuring 3G mobile home monitoring,

an integrated security system, an intelligent home automated control system, a sensor friendly environment, and many other applications. This dream home of the future, conceptualised to meet the lifestyle of choice of every family member embodies four major lifestyle ideals, comprising Automation & Control, Safety & Security, Entertainment & Infotainment, and Healthcare & Comfort.

In further promoting the Digital Home concept to the industry and public, a digital home model was showcased at the “Experiencing Convergence. MyBroadband Conference and Exhibition 2008” (EC.MyBB08), held at Kuala Lumpur Convention Centre (KLCC) from 27 to 30 October 2008.

The Model Digital Home showcased how today’s progressive technology can enable converged video, voice and data (“triple-play”) services for a seamless consumer experience. The home, named D’Impian, was equipped with fibre-to-the-home (FTTH) technology delivering high-speed broadband access service at 10Mbps to the home, 3G mobile home monitoring, an integrated security system, an intelligent home automated control system, a sensor-friendly environment, as well as a Digital Car. Visitors to the state-of-the-art home had the opportunity to experience the true meaning of convergence.

D’Impian was a joint partnership between SKMM, the Ministry of Energy, Water and Communications (KTAK) and TM, and supported by Maxis, Hewlett-Packard and LG.

Implementation of U-LibraryThe mission of the Ubiquitous Library Initiative is to provide physical and digital access to knowledge resources in the knowledge repositories, richly



endowed with local content and international content, promptly and accurately without limitation of time, geographic location and users, simply known as ‘anytime, anywhere, by anyone’.

The Ubiquitous Library Initiative has the objective of making information accessible with the widening of broadband service and RFID technology, in a co-operative library network system with the provision of a U-Library Portal for the purpose of creating, sharing and exchanging knowledge to keep communities together, promote learning and enhance social networking within a knowledged society. It formulates the information landscape underpinning the demand for broadband and sensor technology in keeping with the MyICMS 886 Strategy.

Awareness on the U-Library concept was further explained through Executive Talks, a series of events in the form of knowledge sharing. The first Executive Talk of 23 June 2008 was graced by Mr Johnson Paul from the National Library Board of Singapore (NLB) who highlighted ‘U-Library: Value Innovating Services’. The second Executive Talk took place on 18 August 2008, and was facilitated by Mr Samba Natarajan of McKinsey Singapore who focused on the ‘Opportunities and Challenges of Broadband’. Both executive talks were attended by senior librarians and representatives from the telecommunications industry.

The U-Library Initiative is very much aligned with

the existing broadband infrastructure in connecting communities under the National Broadband Plan (NBP), which calls for ‘leveraging on the development of traditional information resources’. This would foster an engaging learning experience for the diverse information needs of an inclusive knowledge society, encompassing communities that are ‘underserved’, that includes people with disabilities; unemployed adults, retirees, minority communities, rural communities and community organisations. In this respect, issues of digital divide could be addressed.

Pursuant to the U-Library strategy paper, two committees have been established as the UbiquitousLibrary Steering Committee (ULSC) and Ubiquitous

Library Technical Committee (ULTC) on 18 July 2008. ULSC comprises representatives from the Ministry of Energy, Water and Communications (KTAK); Ministry of Unity, Arts, Culture, and Heritage (KEKKWA); Ministry of Housing and Local Government (KPKT); Economic Planning Unit (EPU); Malaysian Administrative, Modernisation and Management Planning Unit (MAMPU); Multimedia Development Corporation Sdn Bhd (MDeC); National Library of Malaysia; Council of the State Public Library Directors and Association of University Libraries (PERPUN). Their role is to advise, monitor, approve and make decisions pertaining to recommendations and proposals by the ULTC on the implementation of the U-Library Pilot Project.

The Ubiquitous Library Steering Committee (ULSC) agreed that the pilot project be activated to connect a consortium of six libraries that include the National Library of Malaysia, Selangor State Public Library, KL Library, Negeri Sembilan State Public Library, Pustaka Negeri Sarawak, and INTAN Library at Bukit Kiara. All libraries have installed their library management systems, and these will be seamlessly connected to the National Union Catalogue through NISO Z39.50 (Information Retrieval Service Protocol).

ULTC is represented by the participating libraries, the National Centre for Sensor Technology at UPM, Pos Malaysia Bhd, National Registration Department and Touch n’ Go and has been actively engaged in monthly meetings and occasional workshops, resulting in readiness assessment, development of U-Library

policy, requirement analysis for the U-Library system and U-Library Trial Run.

The Readiness Assessment on the six participating libraries which took place between 2 and 9 September2008 observed salient features that concerned governance, standards conformance for interoperability, common membership, and RFID-LMS integration in a heterogeneous setting within the U-Library consortium. The outcome was presented by the Chairman of SKMM at the Third ICON Meeting on 23 September 2008. The U-Library Pilot Project was accorded positive support by the Chief Secretary to the Government, YBhg. Tan Sri Mohd. Sidek Hassan.

The Chairman of SKMM, YBhg. Datuk Dr. Halim Shafie emphasised the importance of observing five elements

for the U-Library Trial Run, which include Common Membership within the U-Library Consortium, National Union Catalogue or KIK, Delivery Service of Pos Malaysia, Broadband Speed and Connectivity amongst members of the participating libraries.


U- LibraryConsortium

Pustaka Negeri Sarawak

(ANGKASA)

Negeri Sembilan State Public Library

(PPANS) (Clarice)

INTAN LibraryBukit Kiara

(ILMU)

Kuala Lumpur Library (Horizon)

National Libraryof Malaysia

(PNM) (VIRTUA)

Selangor StatePublic Library

(PPAS) (ALS Global)

Borrowing & Returning Anytime,

Anywhere

Information Discovery Anytime, Anywhere by

Anyone

U-LIBRARY IS ABOUT ACCESS

UBIQUITOUS LIBRARY

ACCESSWITH HSBB

Content NUC,K-Repository

Digital Access“anytime, anywhere”

Digitalisation U-LibraryPortal

RFID Library Mgt. System, NUC, Delivery Channel & Cashless Payment Gateway

Physical Access“anytime, anywhere”

SensorTechnology

U-LibraryPortal


30 January 2009 has been designated for the kick-start of the U-Library Trial Run. The collaborative efforts of ULTC and ULSC culminate with the preparation of the RFP for the pilot implementation of the U-Library Initiative, scheduled for Quarter 4 of 2009. Lessons learned from the U-Library Pilot experience shall weave the fabric

for the national roll-out under the 10th Malaysia Plan.

The U-Library Model unleashes seven components that will pivot HSBB to offer physical access for the purpose of unlocking knowledge resources in a network that requires the facilities of the U-

Library Portal, National Union Catalogue, Library Management System, RFID technology, delivery service and cashless payment gateway in facilitating the participating libraries to be engaged with citizens through inter-lending service with the support of special delivery mechanism by Pos Malaysia, anytime, anywhere. Multipurpose kiosks endowed with RFID technology for self-service operations would empower citizens who are U-Library members to perform the suite of inter-lending transactions. The ‘book drop’ will have RFID technology to accept the ‘returned’ items belonging to any consortium library before their journey home to the owning library through the delivery service.

In co-ordinating the Ubiquitous Library initiative, SKMM takes the role of a ‘Partner’ to work with the consortium of six libraries towards agreed objectives with clearly defined responsibilities. SKMM has appointed a Technical Advisor for this Ubiquitous Library Initiative.

Digital TVDigital Multimedia Broadcasting Digital multimedia broadcasting covers both terrestrial and satellite TV and audio services. It enables the broadcasting of a vast amount of content on multiple devices such as TV and radio sets, mobile phones, portable media players and laptops.

The Malaysian population has been enjoying digital TV and Radio services on a satellite platform through pay TV operator, Astro, since 1996, with a choice of over 100 TV channels, some interactive services and eight terrestrial radio stations. Besides the satellite platform, digital mobile TV broadcasting services have also been offered to subscribers on 3G platforms by several Telco players since 2005.

The current mode of TV and Radio broadcasting on terrestrial or free-to-air platform, however, is still in analogue format and in line with the developments of digital broadcasting around the world, the Government made a decision that digital terrestrial TV services be implemented in Malaysia beginning 2005 and has set an analogue switch-off date of 2015. As a further commitment to promote digital TV broadcasting, the Digital Multimedia Broadcasting and Mobile TV agenda were placed as one of the areas in the MyICMS 886 incorporating goals outlined from 2006 to 2010. The goal is to achieve 95% household coverage for fixed reception and 90% of total mobile TV users by 2010. Additionally, the goal is to introduce Digital Audio Broadcasting services beginning with the roll-out of trials in 2006.

Digital Terrestrial TV (DTT) broadcasting in Malaysia will see the introduction of Standard Definition TV (SDTV) and High Definition TV (HDTV) that comes with additional services such as electronic programme guide, interactive TV, pay-per-view, video-on-demand, tele-shopping, tele- banking, tele-health and many others on both fixed reception (through roof top antenna) and mobile reception (through mobile devices).

Benefits of Digital TV Digital TV allows for broadcasting of more TV channels on a single radio frequency spectrum with improved picture quality and additional data and interactive services. It is more spectrum-efficient as one single radio frequency can accommodate up to six TV and multiple radio channels as compared to one TV channel occupying a single radio frequency spectrum in the analogue form. Most importantly, viewers will be able to enjoy high quality picture, clear audio and uninterrupted services even during bad weather.

Viewers can receive digital TV services through an ultra high frequency (UHF) roof top antenna, either

using an analogue to digital converter box/set top box connected to the current analogue TV set or by purchasing a set top box (STB) and a digital TV tuner. Alternatively, the viewer can opt to purchase an integrated digital TV (iDTV) set that has a built-in set top box (STB).

Digital TV services will bring a host of benefits to the country, both economically and socially, being a major development contributor towards the national agenda. Digital broadcasting provides not only the space within which new and leading-edge services can be developed, but more importantly, it has the potential to directly contribute to socio-economic development and the improvement of the quality of life of all Malaysians in line with the country’s National Policy Objectives.

Digital broadcasting has a key role to play in the socio- economic and cultural development of Malaysia. It is of fundamental importance in the emerging information society and knowledge economy, in which access to information and knowledge is regarded as a prerequisite to economic and societal development. DTT deliberately takes advantage of the opportunity provided by the process of migrating from analogue to digital broadcasting to accelerate the achievement of the country’s socio-economic development goals, in general and the ICT development goals, in particular.

Upon the roll-out of the multiple digital TV/Radio channels, more content and applications will be required, thus

creating a boost for the creative and content industry. Young and local talents can be nurtured to produce high quality content while local production companies will have increased opportunities to create, produce and supply content to the digital platform. New content providers may emerge with differing and niche

programming strategies. The growing creative industry will provide an opportunity to nurture and increase local information resources or content such as the coverage of Malaysian stories and infotainment in multi-lingual and multi-cultures in the vast digital broadcasting platform contributing towards building national identity and social cohesion, and adding to global diversity.

Digital broadcasting technology will enable the efficient delivery of a huge amount of content and information to the urban, semi-urban and rural population, thus fulfilling the Government’s agenda in bridging the digital divide. The digital divide in Malaysia can be further narrowed by enabling access to e-government services, especially those who thus far have had limited or no access to rich information services. The digital technology comes with the capacity and features to enable the provision of services to the population while on the go,anywhere and anytime, in a multiplicity of languages, thus increasing access and use of rich information services which is in line with the Government’s vision towards a more informed society.

U-LIBRARY MODEL

7. BroadbandInfrastructure

1. U-Portal 6. Library Content

2. LMS

3. RFID System 4. Delivery Channel

5. Cashless Payment

•InformationDiscovery Gateway for Users

•NationalUnionCatalogue

LMS for participating libraries•Interoperabilityfunctionality Z39.50 (Information Retrieval Service Protocol)•ILLfunctionality -Z39.83 NISO Circulation Interchange Protocol (NCIP)/SIP2

UHF for Tracking & Tracing with NCIP/ SIP2(Standard Interface Protocol)

•PosMalaysiaBerhad

•Touch’nGo•MEPS



Another important benefit derived from digitalisation is the Digital Dividend in which the spectrum released by analogue broadcasters after the migration period can be utilised to introduce even more new services such as wireless broadband (cognitive radio), high-speed mobile broadband, regional television, more high definition TV, emergency services and others.

Whilst there are already digital TV receivers available in the market today, the migration towards digital will see an enhancement of the production and marketing efforts of the digital TV receivers by manufacturers. It is expected that the requirement for STB or digital receivers/tuners can be, to a large extent, supported by the country’s local manufacturing industry. This means that the industry will need to harness existing and make new investments in production facilities to meet the expected demand for electronic equipment, particularly STBs, UHF antenna and new TV display sets. Additionally, in order to ensure equipment compliance and quality assurance, the TV receiver devices need to be certified by certifying agencies. This means that a new business activity would be established resulting in the creation of more job opportunities.

Within the current analogue environment, the latest report by the Nielsen Media Company Malaysia indicates that the Malaysian advertising expenditure grew by 13% to RM6.2 billion in 2008. The growth in 2008 was driven by Terrestrial TV (+20%), Newspapers (+8%), Radio (+21%) and Point-Of-Sale (+28%). Newspapers and Terrestrial TV continue to command the bulk of total advertising across the medium measured, with respective shares of 54% and 35% followed by Radio (5%).

As in the past, print media has always dominated the advertising market due to its low advertising rates and wide distribution channels. With the introduction of more TV/Radio channels across the multiple digital broadcasting platform, it is

anticipated that the advertising rates for electronic media will become even more competitive and subsequently attract more advertisers to reach their target markets thus, increasing the total advertising expenditure in Malaysia.

Digital TV InitiativesSKMM has undertaken several initiatives to introduce digital TV services in Malaysia beginning 2001 upon the presentation of a paper entitled ‘Analogue to Digital Migration for Television’ to the Economic Planning Unit (EPU). Subsequently in May 2002, SKMM organised a workshop with all the government agencies, working on the final draft of the Malaysian Spectrum Plan. In September 2002, EPU appointed a consultant to study and prepare a National Digitalisation Master Plan. Following this, in April 2003, SKMM conducted a public consultation by issuing a discussion paper entitled `Concepts for the Introduction of Digital Terrestrial Television (DTT) in Malaysia’.

Upon completion of this study, the Consultant produced two reports namely the RTM Digitalisation Plan and the National Digital Master Plan in 2004. SKMM consequently approved four temporary radio frequencies in 2005, two stations each at Ulu Kali and KL Tower, following the application by RTM to implement DTT trial transmission. The RTM DTT trial was launched in 2006 and covered approximately 25% of the population within Klang Valley and involving 2,000 trial users. The said trial employed digital video broadcasting on terrestrial (DVB-T) as the standard and using Mpeg 2 (Moving Pictures Expert Group 2) coding format. Content genre on the digital trial platform comprise music, sports, news and interactive channels aired by RTM on the digital platform.

In rolling out DTT services, the decision to adopt a particular standard by a country is deemed as the initial key step to ensure successful roll-out, taking into consideration factors, among others, worldwide deployment, technology maturity, performance,

efficiency and availability of mass devices. SKMM further initiated to conduct a Public Inquiry on the determination of a standard for digital terrestrial broadcasting in Malaysia in August 2006 and a report was published in October 2006. A Commission Determination on the mandatory standard for free-to-air digital television broadcasting was issued in November 2006 in which the Commission set forth the adoption of the DVB-T (Digital Video Broadcasting on Terrestrial) standard as the mandatory standard for the roll-out of DTT service in Malaysia.

Another important milestone for digital broadcasting implementation is the adoption of technical specification for the middleware standard for STB. The middleware in the STB is the application that enables access to rich information and services on the digital terrestrial platform. Similar to the adoption of the standards for DTT, the decision to adopt the technical specification of the STB relies on factors such as worldwide deployment, commonalities of devices and technology maturity. Considering the importance of this milestone which will directly impact the viewers, SKMM further engaged in an industry consultation in late 2007 to propose the minimum technical specification for the middleware standard for the set top box. In August 2008, SKMM registered the minimum technical specification for the middleware of the set top box as a Voluntary Industry Code under the Communications and Multimedia Act (CMA) 1998, based on the MHEG 5 standard and using Mpeg 4 coding techniques.

As spectrum management is key to the implementation of DTT, SKMM subsequently conducted a spectrum planning activity in 1997 to determine the optimal allocation of spectrum to the broadcasting licensees. This activity employed the utilisation of a specialised software that enabled the generation of digital coverage area predictions and provides the information on the constraint and interference areas to the current spectrum occupation. The spectrum planning activity has to be

conducted carefully, taking into consideration factors such as the migration of other existing operators that are currently occupying the broadcasting band, border channels coordination with neighbouring countries and other adjacent service operators to avoid interference. The spectrum planning activity was completed in December 2008 following further deliberations within the industry.

The finalisation of the spectrum planning completes the preparatory steps towards the roll-out of commercial digital TV services. In December 2008, SKMM proceeded to prepare the Marketing Plan for the UHF spectrum band IV and V (470 MHz to 742 MHz) for DTT services, for public consultation.

In facilitating the migration towards digital TV, SKMM formed a Digital Switchover Group (DSoG) in July 2008, comprising public and private broadcasters, equipment manufacturers, Malaysian Technical Standards Forum, broadcasting service provider and the relevant divisions within SKMM. The DSoG met regularly with a prescribed Term of Reference and discusses work plans to meet the analogue switch-off date of 2015. The DSoG also functions to make recommendations on policies and framework for digital migration for further consideration by the Government.

In ensuring the readiness for the industry to migrate to digital TV broadcasting, SKMM initiated the move to fund a DTT trial-widening exercise to enable the participation of private broadcasters and other new content providers. The trial is aimed to evaluate the latest compression standard Mpeg 4 and high definition TV (HDTV) services. The trial widening is aimed to last for a year, beginning the second quarter of 2009.

Additional efforts to introduce Mobile TV services were initiated by SKMM during the year in review. The Malaysian Technical Standards Forum Berhad (MTFSB), an industry forum designated by SKMM funded a mobile

TV trial in January 2008 in collaboration with industry players such as RTM, AMP Radio stations and many local interest groups and worldwide equipment manufacturers that supplied the loan equipment on a voluntary basis. The mobile TV trial was conducted employing the Terrestrial Digital Mobile Broadcasting (T-DMB) standard (a Korean-based standard) and was aimed to evaluate the performance and features of this particular standard. Earlier trials using other competing standards namely Digital Video Broadcasting on Handheld (DVB-H) and Media FLO were conducted in 1997 by Maxis.

The T-DMB trial demonstrated that the T-DMB technology is a matured technology, proven to be stable and suitable for implementation as recommended by the task group. The trial spurred substantial interest within the local players to consider this potential technology for mobile TV service roll-out. Having used equipment from international manufacturers, Malaysia is now recognised and listed in the DAB and T-DMB global map. The valuable experience gained during the trial was a feat, enabling Malaysia to share this valuable knowledge with the rest of the world. The trial which was successfully undertaken had provided valuable hands-on experience to the members.

Moving ForwardThe completion of the spectrum planning activity will propel and facilitate the industry to roll out commercial digital TV service in the near future. SKMM is currently ready to issue the Marketing Plan for the UHF spectrum band IV and V (470 MHz to 742 MHz) for Digital Terrestrial Television (DTT) services, for public consultation in 2009. Amongst various activities planned, the industry and public will be invited to provide their views with respect to the sharing of digital TV broadcasting infrastructure, multimedia hub operations, spectrum usage and the number of new digital TV services and applications to be offered. Such feedback will be given due consideration, which will ultimately shape the DTT

landscape in Malaysia. It is anticipated that the DTT infrastructure can be rolled out in 2010 with commercial services available by 2012.

There will also be additional initiatives to be undertaken by industry players such as Asia Space and Media Prima to implement mobile TV trials using T-DMB technology on L-Band and Band III frequencies consecutively in 2009. Additionally, RTM has indicated interests to initiate the trial on Digital Audio Broadcasting using DRM (Digital Radio Mondiale, a German-based technology) and DAB + (a European-based technology).

The initiatives taken thus far by both SKMM and the industry stand to enhance further efforts to create Malaysia as the communications and multimedia hub, whilst keeping abreast with worldwide trends.

Mobile Number Portability (MNP)BackgroundUpon completion of the MNP Test Phase, SKMM commenced the Launch Phase for MNP with a Limited Live Trial (LLT) from 29 August to 14 October 2008 before going live nationwide.

In carrying out the LLT, SKMM learnt from the experience of other jurisdictions which showed that launching MNP on a wide scale also brings with it potential risks. For instance, calls were not able to be made in Mexico when MNP went live just a few months before Malaysia’s launch. SKMM chose to take a measured approach so as to ensure that the implementation will run smoothly and all potential hitches could be addressed and managed during the LLT i.e. before the nationwide implementation.

During the LLT, SKMM limited the porting activities to only five centres in the Klang Valley for each mobile



operator. In turn, each of them was only allowed to accept 100 port requests per day.

After a successful LLT period, MNP was then launched nationwide on 15 October 2008 and all limits on port-in numbers and restrictions on locations were lifted.

Porting ActivitiesThe following are some of the statistics based on the implementation of MNP commencing the nationwide launch up to 31 December 2008 (covering a period of about two and a half months). It includes:

Overall Porting FiguresThe overall porting figures as at 31 December 2008 are as follows:

1) There have been 324,641 requests to port their numbers to a different operator; (these include multiple port request by Recipient operators i.e., the same number may request for port more than once after the first request has been rejected by the Donor);

2) Of the total requests, 211,697 numbers have been ported successfully; and

3) 103,697 port requests were rejected for various reasons, with the main reasons being mismatch

customer ID, unpaid outstanding bills and the existence of supplementary lines which were not ported together.

Table 1: Overall Porting Figures

Graph 1: Pattern of Port Requests, Successful Port & Port Rejects (Monthly Tabulation)

Duration Taken For PortingThe duration taken for porting can be divided into two categories, namely the duration for Consumer Ports (individuals) and also Non-Consumer Ports (corporate clients). The two categories are distinguished as the complexity in porting process between the two categories differ significantly.

Consumer PortsWith Consumer Ports, the porting process will take less time as the total numbers involved (including those with supplementary lines) usually are limited. Hence, the maximum porting duration allowed by SKMM based on the Public Inquiry held early on was five days for the first year and this to be lessened to two days thereafter. The overall view of the time-frame taken by operators

to process Consumer Ports throughout the duration of 29 August to 31 December 2008 are as follows:

Graph 2: Chart on Time-frame for Consumer Ports

Table 2 : Time-frame for Consumer Ports

Based on Graph 2 and Table 2 above, 95.7% of all port requests for Consumer Ports were completed within one day of the port request being made (almost 80% within four hours or less). This reflects favourably on SKMM’s plan to reduce the timeframe allowed for porting. Currently, Consumer Ports account for 209,237 (or about 99%) of the total successful ports.

It is important to note that 0.6% of the port requests went beyond the five-day limit allowed and these were attributed to the following reasons:a. Initial lack of co-ordination between the designated

Port Request Successful Port Port Rejected

324,641 211,697 103,697

Port ReqSucc PortRejected

Aug-08 Sep-08 Oct-08 Nov-08 Dec-08

140

100

120

80

60

40

20

0

160Thousands


100%

90%

95.7%

1 Day 2 Days 3 Days 4 Days 5 Days >5 Days

1.7% 0.8% 0.8% 0.4% 0.6%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Number of Days % of Port Completed

1 Day 95.7%

2 Days 1.7%

3 Days 0.8%

4 Days 0.8%

5 Days 0.4%

More than 5 Days 0.6%

officers of the Donor and Recipient in terms of issue resolution; and b. Initial technical issues on the operator’s side especially during the early stages.

These awkward issues are being addressed by the operators. Based on the efforts and also the experience gained during the first three months of MNP implementation, it is to be expected that the performance of the operators should improve further in the months to come.

Non-Consumer PortsWith Non-Consumer Ports (corporate clients), the porting process will take longer as it will involve a large amount of phone numbers. Hence, the maximum porting duration allowed under the MNP Industry Business Rules was ten days for the first year and this to be lessened to five days thereafter. The time-frame taken by operators to process Non-Consumer Ports throughout the duration of 29 August – 31 December 2008 can be seen in Graph 3 below:

Graph 3 : Chart on Time-frame for Non-Consumer Ports

Table 3 : Time-frame for Non-Consumer Ports

100%

90%

96.7%

<=5 Day 6 Days 7 Days 8 Days 9 Days 10 Days >10 Days

1.8% 0.6% 0.3% 0.2% 0.0% 0.4%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Number of Days % of Port Completed

<=5 Days 96.7%

6 Days 1.8%

7 Days 0.6%

8 Days 0.3%

9 Days 0.2%

10 Days 0.0%

More than 10 Days 0.4%

Based on Graph 3 and Table 3, 96.7% of all port requests for Non-Consumers were completed within one day of the port request being made and this augurs well for SKMM’s plan to reduce the time-frame allowed for porting. Currently, Non-Consumer Ports only account for 2,460 (or about 1%) of the total successful ports.

It is also noted that 0.4% of the port requests went beyond the 10-day limit allowed. Based on the experience gained within the first three months of MNP implementation, it is to be expected that the performance of the operators should improve further in the months to come. We remain optimistic that such delays will be addressed and become a thing of the past.

Cost of Porting to ConsumersSKMM did not dictate to the industry the amount of porting fees that may be charged to customers who wish to port. However, SKMM did decide that any porting fee charged should not be too exorbitant and should be capped at RM25.00. Currently, none of the operators is imposing any porting fees to the port-in consumers.

Right from the LLT period, Celcom, DiGi and Maxis decided not to impose any porting fees to the consumers. U Mobile charged customers RM10.00 for porting fees during the LLT but decided to lift the porting charges on 16 October 2008 (i.e. the second day of the nationwide launch).

From 16 October to 31 December 2008, all operators did not impose any porting fees to their port-in customers.

EnsuringCommunications Integrity & Excellence

02

054


ICT is a socio-economic enabler, helping the country to move forward and enhancing competitiveness amongst enterprises. It is necessary for us to keep an eye on the quality of interoperability, making sure it is up to mark, whilst being managed and run by qualified service providers.

056 Categorisation058 Market Supervision058 Services’ Accessibility059 Implementation of WiMAX Services

CategorisationThe Malaysian Communications and Multimedia Commission (SKMM) is entrusted to issue licences under the Communications and Multimedia Act (CMA) 1998, the Postal Services Act (PSA) 1991 and the Digital Signature Act (DSA) 1997.

Licences under the Communicationsand Multimedia Act 1998As Malaysia’s communications and multimedia industry matures and progresses towards convergence, licences under the CMA 1998 are formulated to ensure they are both technology and service neutral. CMA 1998’s licensing terms allow a licencee to organise and manage marketing-related activities. This creates opportunities for much-needed awareness and expansion within the industry, particularly in the area of Application Service Provider and utilising a more effective network infrastructure. There are four categories of activities for consideration,

namely:• NFP–NetworkFacilitiesProviders• NSP–NetworkServicesProviders• ASP–ApplicationServiceProviders• CASP–ContentApplicationServiceProviders

Under these four categories, two types of licences are issued, namely the Individual Licence and Class Licence. The individual licences are issued for activities which require a high degree of regulatory control whilst the class licence only requires registration and, are renewable annually. The list of licencees are maintained at the respective registers maintained by SKMM.

Individual licence holders can undertake the following categories of activities:

Network Facilities Provider (NFP) Individual LicenceThis licence is issued to those who own and/or provide certain network facilities such as radio communications’ transmitters and links, fixed links

and cables, and towers which are used in conjunction with other network facilities.

Network Service Provider (NSP) Individual LicenceServices available under the Individual Licence category include bandwidth services, broadcasting distribution services, cellular mobile services, access application services and space services.

Content Application Service Provider (CASP) Individual LicenceThis licence is applicable for those providing content application services such as satellite broadcasting, subscription broadcasting, terrestrial free-to-air TV and terrestrial radio broadcasting.

During the financial year 2008, SKMM received 14NFP,16NSPandthreeCASP IndividualLicenceapplications.However,only12NFP,12NSPandoneCASP applications were approved by the Minister and registered by SKMM.

056


057Ensuring CommunicationsIntegrity & Excellence

Issuance of Class LicencesTherewere21applicationsforNFPClassLicence,27applicationsforNSP,424applicationsforASPand16applications for CASP. The number of registrations for class licences in 2008 is as follows:

Application for Variation of Individual Licence Conditions / Transfer and Surrender of Individual LicenceIn addition to new licence applications, SKMM also processed applications for variation of licence conditions and transfer of individual licence in 2008.Fiveapplicationswerereceivedforvariation

of CASP (I) licences, which involved special licence conditions on location change of control centre and percentageoflocalcontent.AsfortheNFPlicences,applications to vary licences are related to type of facilities and percentage of foreign shareholding. Only one application was received for variation of NSP (I) licence on licenced area. Three licenceessurrendered their licence due to failure to roll out their services and one licencee applied to transfer the licence.

Application for Nominated Facilities ProvidersPursuant to Section 130 of the CMA 1998, the Minister may, on the recommendation of SKMM, determine that the licenced network facilities’ provider, other than the owner of any network facilities, be a nominated facilities’ provider for the network facilities for the purpose of the CMA 1998, if the Minister is satisfied that the nomination will

not impede the achievement of the objects of the CMA 1998; and the administration of the CMA 1998.

In 2008, two companies, namely Touch Mindscape Sdn BhdandSyarikatPrasaranaNegaraBerhad,wereawardedwithNominatedFacilitiesProviders’registrationthrougha Ministerial Declaration issuance. However, Tenaga NasionalBerhadwithdrewtheirapplication.

CASP and ASP Class Licences Nationwide Road ShowThe main objective of this programme was to educate and inform all hotel owners/operators about licensing requirements under the CMA 1998, in particular `in-house broadcasting’ and `Internet access services’ which would require registration under the CASP Class Licence and ASP Class Licences, respectively.

SKMM has planned a series of briefings to all hotel owners/operators with the assistance of the Malaysian

No. NameofLicencee Tyoe of Licence Licence Issuance Date Service Category

1. Touch Mindscape Sdn Bhd NFP(I)&NSP(I) 4Feb2008 NominatedFacilitiesProvider

2. Wellcom Communications (M) Sdn Bhd NFP(I)&NSP(I) 4Feb2008 Broadband Services

3. Sector Solutions Sdn Bhd NFP(I)&NSP(I) 4 Jul 2008 NominatedFacilitiesProvider

4. Y-Max Infra Sdn Bhd NFP(I)&NSP(I) 7 Jul 2008 WiMax

5. MOL Media Sdn Bhd CASP (I) 4 Aug 2008 IPTV

6. Stealth Solutions Sdn Bhd NFP(I) 4 Aug 2008 Tower Construction

7. Tune Talk Sdn Bhd NSP(I) 12 Sep 2008 MVNO

8. Global Transit Communications Sdn Bhd NFP(I)&NSP(I) 26Sep2008 Bandwidth Services

9. Kedah ICT Holdings Sdn Bhd NFP(I)&NSP(I) 29 Sep 2008 Broadband Services in Kedah

10. I R&D Sdn Bhd NFP(I)&NSP(I) 14Nov2008 Broadband Services in I-City Shah Alam

11. Paneagle Communications Sdn Bhd NFP(I)&NSP(I) 14Nov2008 Broadband Services

12. Macro Lynx Sdn Bhd NFP(I)&NSP(I) 28Nov2008 Broadband Services

13. Malaysia Airports (Sepang) Sdn Bhd NFP(I)&NSP(I) 5 Dec 2008 FacilitiesandserviceproviderforKLIAarea

14. Segi Maju Consortium Sdn Bhd NFP(I)&NSP(I) 5 Dec 2008 RadioTrunkingFacilities&ServiceProvider

The new individual licences were issued to:

Class Licence NumberofRegisteredLicencees

NFP 15

NSP 15

ASP 401

CASP 13

058 059


Association of Hotels, effected in 2008 and to be continued in the following year. In December 2008, SKMM organised a briefing for all hotel owners based in Johor and Malacca. SKMM will continue the road show in 2009 to the rest of the regions.

Electronics LicensingManagement System (e-LMS)The e-LMS was developed to enhance the processing of Class Licence applications. The system enables the following:• Online Class Licence applications by external

parties; and• LicencefeemonitoringbytheLicensingDepartment.

e-LMS stands to deliver positive impact to the industry as it will enable the industry to gain from such automation wherein registration, especially for the ASP Class Licences, will be processed in accordance with the clients’ charter.

Currently, the e-LMS is on trial and it will be officially launched in 2009.

Market SupervisionMonitoring of Compliancewith Licence ConditionsOne of SKMM’s roles is to monitor licencees’ activities to ensure compliance with the stipulated conditions. During the year under review, SKMM visited four licencees whoholdbothNetworkFacilitiesProvider (Individual)[NFP (I)] and Network Service Provider (Individual)[NSP (I)] licences, one licencee who holds only theNSP(I)licenceandtwolicenceeswhoholdtheContentApplication Service Provider (Individual) licence.

Of these licencees, four companies complied with all the conditions. The remaining licencees had either

requested for a variation of DBP, an extension of time to roll out their services or a combination of both.

In terms of compliance with regards to 30% Bumiputera equity, only two companies did not comply with the requirements within the first year and thus, had applied for an extension.

Table 1: List of Licencees Inspected in 2008

In addition, SKMM also monitored licencees who were previously granted an extension to comply with some other licence conditions.

For2009,thereare14NFP(I)and15NSP(I)and1CASP(I) licences that are on SKMM’s monitoring schedule. SKMM will continue to monitor licencees to ensure an effective and well-managed communications and multimedia market which in turn stands to benefit the industry, besides protecting customers’ interest.

Services’ AccessibilityPublic Inquiry on the Review of the Access List and Mandatory Standardon AccessIn April 2008, SKMM commenced the review of the Access List and Mandatory Standard on Access, and conducted preliminary discussions with the stakeholders. On 25 September 2008, SKMM issued the Public Inquiry Paper in accordance with Sections 55(2), 55(4), 59and61of theCommunicationsand

Multimedia Act (CMA) 1998 to seek public opinion.

In addition, SKMM also conducted two public hearings wherein the public were able to seek clarification on issues raised in the Public Inquiry Paper. At the close of the Public Inquiry on 21 November 2008, SKMM received 20 submissions.Subsequently,inaccordancewithSections65(2)and55(5) of the CMA 1998, SKMM published the Public Inquiry Report on 21 December 2008, followed by issuance of two determinations, namely the Access List and the Mandatory Standard on Access on 5 January 2009.

In undertaking this review, SKMM began by examining the competitiveness of the seven markets within the communications and multimedia industry, covering fixed telephony, mobile telephony, upstream network elements, interconnection, leased lines, broadcasting transmission and broadband markets. Thereafter, SKMM determined the facilities and services on the Access List to ensure end-users’ long-term benefits.

Consistent with the Government’s objective to increase broadband penetration in Malaysia, an important focus of this review is on stimulating the level of competition in the broadband market. In this, SKMM adopted a forward-looking approach and considered the newer technological developments such as the high-speed broadband network and WiMAX.

In considering the high-speed broadband network, SKMM ensured that the review is consistent with the regulatory framework to be applied to the TM HSBB as stated in the Ministerial Direction on HSBB and Access List. As a result of considering all relevant factors stated in the Ministerial Direction on HSBB and Access List, two new services, High-SpeedBroadbandNetworkServiceswithQualityofServiceandHigh-SpeedBroadbandwithoutQuality

Type of Licence NumberofLicencees

NetworkFacilitiesProvider(I) 4

NetworkServiceProvider(I) 7

Content Application Service Provider (I) 2

Total 13

of Service, were included in the Access List.

In addition, SKMM also implemented Full Access,Sub-loop, Line Sharing and Bitstream Services (collectively also known as Unbundling of Local Loop in other jurisdictions) on the copper network, in areas where the high-speed broadband network is not deployed. This would enable other service providers to access the copper network in order to provide competitive broadband services to their customers.

In relation to WiMAX, SKMM was concerned with the origination and termination of services over WiMAX networks. SKMM decided that these services are similar to mobile services, and has included WiMAX as an example of technologies used for Mobile Network Origination Service andMobile Network Termination Service. The secondmain area considered by SKMM is whether there could be any potential issues faced by WiMAX operators to ensure termination of voice services onto their WiMAX networks. SKMM highlighted in the public inquiry paper that it would be concerned if any-to-any connectivity is hampered, wherein end-users on WiMAX networks are not connected to end-users on other networks. Having considered all the views received, SKMM did not consider it necessary to take any action at this stage.

In addition, the Wholesale Line Rental was also added to the Access List as SKMM views that by regulating this service, it would stimulate additional competition inthefixed-linemarket.Further,SKMMalsoremovedEqual Access (PSTN) Service, Internet Access CallOrigination Service, Inter-Operator Mobile NumberPortabilitySupportServicesandNetworkSignallingService from the Access List mainly due to the lack of services usage.

With the completion of this review, SKMM envisages that competition will be promoted in the wholesale

market which will eventually benefit end-users in the form of lower prices, better quality of services and a more attractive range of products and services.

Registration of Access AgreementsOne of SKMM’s roles is to evaluate the access agreements between licencees and determine whether the agreements can be registered. In 2008, SKMM received a total of 37 access agreements. SKMM registered a total of 21 agreements in 2008 comprising eight principal agreements, eight supplementary agreements and five novation agreements. However, some of the registered agreements in 2008 were lodged for registration in 2007, whist some of the agreements submitted in 2008 are still being evaluated or being amended by licencees pursuant to the evaluation that was carried out by SKMM.

Complaints

Competition ComplaintsIn 2008, SKMM received two competition complaints which were on matters that were previously investigated and concluded. Based on preliminary assessment, SKMM found that there were no new facts or developments that warranted SKMM to carry out full investigations.

Access ComplaintsSKMM plays a role in mediating access issues between service providers. Most of the issues that are reported to SKMM are during negotiation of access agreements.

Implementation of WiMAX ServicesThe Commission had awarded four successful applicants with the 2.3GHz spectrum band for Broadband Wireless Access Systems on 30 March

2007. Packet One Network (Malaysia) Sdn Bhd,Asiaspace Sdn Bhd and Y-Max Networks Sdn Bhdhave been designated to provide services in Peninsular Malaysia, whilst REDtone-CNX Broadband Sdn Bhdwould cover East Malaysia.

SKMM has been closely monitoring the WiMAX operators’ adherence to their respective Detailed Business Plans (DBP) through submission of a monthly progress report.

Packet One Networks (Malaysia) Sdn BhdAs at 31 December 2008, Packet One deployed 591 transmitters in 197 sites. They spent a cumulative capital expenditure of RM186 million for thedeployment of their WiMAX network. Currently, Packet One is providing services in selected areas around Selangor, Wilayah Persekutuan Kuala Lumpur,Johor,Kedah,NegeriSembilanandPenang.Since their commercial launch on 19 August 2008, they have a total of 9,986 subscribers, comprisingboth corporate and residential consumers.

Asiaspace Sdn BhdIn its first year of roll-out, Asiaspace will only be concentrating on deploying network in Klang Valley. As of 31 December 2008, Asiaspace has rolled out in nine sites in the Klang Valley with an investment of more RM7 million. Asiaspace is providing WiMAX services in Kinrara, Sungai Way, Subang Jaya, USJ, Kelana Jaya, Taman Tun Dr. Ismail, Technology Park Malaysia, Seri Petaling, Bandar Tun Razak, Taman Maluri and Bukit Anggerik. Since their commercial launch on 30 August 2008, they have garnered a total of 121 customers, them being mainly residential consumers.

Y-Max Networks Sdn BhdAs of 31 December 2008, Y-Max deployed 11 transmitters in three sites in the Bukit Bintang area, namely at Plaza YTL, Star Hill and Lot 10. To date,

Ensuring CommunicationsIntegrity & Excellence

060 061


Y-Max had spent RM1.3 million in capital expenditure. Since their launch on 28 August 2008, they have registered a total of three corporate subscribers.

REDtone-CNX Broadband Sdn BhdREDtone-CNXhaddeployed15 transmitters infivesites with a capital expenditure of RM3.2 million. Their WiMAX services are currently available in KotaKinabaluandKuching.REDtone-CNXlaunchedtheir services on 20 August 2008 and has three corporate subscribers.

Implementation of IMT 2000 – 3G ServicesSKMM monitors the Spectrum Assignment (SA) Holders of their 3G roll-out commitments and adherence to their Detailed Business Plan. The following are assigned with the 3G Spectrum:

UMTS(Malaysia)SdnBhd–SAawardedon2April2003;

UMobileSdnBhd–SAtransferredfromUTelecomMedia Holdings Sdn Bhd (formerly known as MITV Corporations Sdn Bhd) on 19 December 2007;

Celcom Malaysia Berhad – SA transferred fromTelekom Malaysia Berhad (TM) on 28 April 2008; and

DiGiTelecommunicationsSdnBhd–SA transferredfrom TTDotCom Sdn Bhd on 7 May 2008.

UMTS (Malaysia) Sdn Bhd (UMTS)Asat31December2008,UMTShasdeployed6,449transmitters and 2,325 sites, of which 1,378 sites and 4,134 transmitters have been upgraded with High Speed Packet Access (HSPA). UMTS has a population coverage of 48.5% and has coverage in all major cities in Malaysia. As at the end of 2008, UMTS has about 2.5 million 3G subscribers and 146,000 HSDPA orwireless broadband users.

SKMM found that UMTS did not comply on the DBP

targets on the deployment of transmitters and sites as at 30 September 2008. As a result, SKMM has imposedapenaltyofRM6milliononUMTS.

Celcom (Malaysia) Berhad (Celcom)On 28 April 2008, SKMM transferred the 3G Spectrum Assignment from TM to Celcom. Thus far, Celcom has achieved total population coverage of 70.88% and with 1.97 million subscribers. As of December 2008, Celcom has deployed 8,235 transmitters and 2,891 sites, and has presence in major Malaysian cities.

Celcom completed four MVNO negotiations andlaunched one with Merchantrade Asia Sdn Bhd in July 2007. For International Roaming, Celcom hasarrangements with 57 countries and 93 operators.

DiGi Telecommunications Sdn Bhd (DiGi)SKMM had transferred the 3G spectrum assignment from TT dotCom Sdn Bhd to DiGi on 7 May 2008. DiGi had in October 2008 completed its selected commercial roll-out, whereby 100 individual subscribers who are DiGi’s internal users were selected. The coverage areas for the selected commercial roll-out are Subang Hi-Tech, Subang Jaya, along the LDP Highway and Setia Alam. As at 31 December 2008, DiGi has 152 transmittersand60sites.DiGihadspentRM50millionin 2008 for its 3G roll-out.

U Mobile Communications Sdn Bhd (U Mobile)Asat31December2008,UMobilehasdeployed2,546transmitters and 885 sites. U Mobile has achieved an average of 21% population coverage nationwide and has approximately 1.2 million registered subscribers. U Mobile’s 3G network is available in Klang Valley, urban areas in Negeri Sembilan and Ipoh, Perak.Domestic roaming arrangements with Celcom are available in other areas while U Mobile continues to progressively deploy its network nationwide.

Ensuring CommunicationsIntegrity & Excellence

Responding toNew Emerging Technologies

03

062


064 Spectrum Management Strategic Review (SMSR) 2007/2008

066 Spectrum Research Collaboration072 Spectrum Assignment and Management 081 NASMOC and Spectrum Engineering and

Interference Resolution081 Spectrum Co-ordination 085 Numbering

Anything is possible in the world of ICT. And adapting to its ever-changing environment is equally important. It is vital to be always prepared to continuously enhance technical expertise, ensure higher interoperability standards between networks and services through efficient management of resources and research programmes.

064


065Responding toNew Emerging Technologies

Spectrum Management Strategic Review (SMSR) 2007/2008Spectrum is a scarce resource and in recent years, it is becoming even more scarce, with the rapid advancement in wireless communications and the trend towards mobility and broadband communications. Efficient spectrum management is thus crucial to ensure that supply meets demand and that it provides a responsive and flexible framework to meet the need of all spectrum users. Among the salient features addressing this need are:• Adequate provision of spectrum for public and

community services;• Maximisingtheoverallpublicbenefitderivedfrom

useofthespectrumbyensuringitsefficientallocation;• Encouraging the use of efficient wireless

technologies and practices to enable operation of awiderangesofserviceswithanadequatequalityof service;

• SupportingthepolicyobjectivesoftheGovernment;and

• Promotingglobalspectrumharmonisationthroughinternational arrangements and framework.

Rapid technological advancements in the field ofspectrum have also provided the opportunity and avenue to review what we have been doing and what we may do in the future to ensure that the spectrum resource is optimally managed to meet the growing needs of the industry and other spectrum users.

In executing the mandate under the CMA 1998as the authority entrusted with managing the spectrum resource, SKMM had embarked on aSpectrum Management Strategic Review Project(“SMSR2007/2008”)toreviewthecurrentspectrummanagement framework and best practices, and to develop it further towards a progressive framework drawing on experiences from countries benchmarked in this study. It covers key issues such as:

• Maximisation of the overall public benefits fromspectrum usage;

• Responsive and flexible framework to meet current and future needs of spectrum users;

• Transparent and effective spectrum managementprocesses;

• AlignmentoftheframeworktotheCMA1998policyobjectivesandMylCMS886strategicplan;and

• Positive and strong framework to support theGovernment’s push to position Malaysia asa global ICT hub and regional leader in the communications and multimedia industry.

Initial information and views were obtained through interviewswithmajorstakeholders(GovernmentandIndustry).Theproject teamconducted interviewsto gather stakeholders’ feedback and opinion, andto develop a detailed understanding of the current situation in Malaysia, particularly on issues relatedto the current spectrum management framework. The matters discussed at these interviews included: • Currentspectrummanagementpractices;• Currentandfuturespectrumdemand;

• Institutionalaspects;and• Domestic and international co-ordination and

harmonisation

Besides these interviews, research was conducted on the spectrum management practices of benchmark regulators identified as industry leaders. These benchmark regulators included the administration of the following countries and region:• Australia(ACMA);• Canada(IC);• EuropeanRadioCommunicationOffice(ERO);• HongKong(OFTA);• UnitedKingdom(OFCOM);and• US National Telecommunication and Information

Administration(NTIA).

Key practices of spectrum management which worked well in the benchmark regulator countries werecomparedwiththoseinMalaysia.

SKMMfurtherassessedandanalysedmatterssuchas:• Future spectrum usage covering technology trends

and development;• Currentandfuturetrendsanddevelopmentin:

» spectrummanagementtechniques;» regulation;» policy; and

• DevelopmentofMalaysia’scommunicationsandmultimedia sector and its impact on spectrum management.

SKMM, on completion of the initial phase of thereview released the preliminary findings in a publicconsultation (PC) paper which invited the public tocomment or provide feedback on the issues that arosefromthereview.Forthefirsttimeever,SKMMfurther provided web based submissions to facilitate wider participation. The public was also invited to aclarificationsessionon thePCdocumentandwasfollowed by focus group sessions with key spectrum groupsandorganisations.ThePCperiodranfrom18December2007to4February2008.Theresponsewasencouragingwith27fruitfulresponsesreceived.

Based on the data and information gathered and the resultsfromtheassessmentandanalysis,theSMSR2007/2008developed:• 99Recommendations for implementationovera

5-year plan. These can be generally categorisedinto the following areas: -Operational -Policy/Framework;and -Institutional

• Sevenkeystrategicrecommendations» DevelopaFive-yearSpectrumReleasePlan;» Review the current spectrum plan incorporating

WRC07 decisions and carry out a DetailedSpectrumInvestigation(DSI);

» Establishment of National Spectrum Consultative Committee(NSCC);

» Flexibilitytobebuiltintopoliciestomeetrapidconvergence and technological developments;

» Use of spectrum pricing policy to manage

demandandpromoteefficiencyofuse;» Useofmarketapproach(auction)forhigh-value

spectrum as a way to select and award to the best; and

» Useoflightertouchregulationwhereapplicable• 21StrategicFrameworkswereprovidedtoguide

SKMM along the way in the implementation ofthe reccomendations:» StandardRadioSystemPlan(SRSP)Development;» Spectrum Allocation;» Assigning Spectrum;» Spectrum Sharing;» Spectrum Release;» Re-farming;

• SKMMStrategicRoadMap

» NationalSpectrumConsultativeCommittee(NSCC);» Standardisation;» MonitoringandInspection;» Spectrum Interference Resolution;» InternationalCo-ordination;» RegionalandCrossBorderCo-ordination;» SatelliteFilingandCo-ordination;» ElectromagneticCompatibility(EMC);» SpectrumPricing;» Spectrum Trading;» Spectrum Auctioning;» PublicConsultation;» Research Chair;» Co-operativeEducation;and» HumanCapacityDevelopment

SpectrumAssignment

ApparatusAssignment

Class/Exempt

SpectrumUsers

SpectrumPlanPolicy&Reg

MarketingPlan

ConversionPlan

Spectrum EngineeringStandards&Certification

Database

International&RegionalCo-ordination

Spec

trum

Qua

lity

Cont

rol

SpectrumMonitoring&Inspection

Source:SKMM-OverviewofSpectrumManagement

Overview of Spectrum Management

Source:SKMM,SpectrumManagementStrategicReview2007/2008

2012Year 1 2 3 4 5

Insititutional Issues•Staffinglevel•Capacitybuilding•OrganisationalstructureOperational Issues•Marketsurveillance•Servicelevels•KPIFramework•Realisticgoaldefinition

Operational Issues•Strengthenmonitoringcapability•Detailedspectrumreview•AssignmenttermsInstitutional Issues•Staffretention,skills,capacities•CollaborationwithuniversitiesFramework•Spectrumreleaseplan•Technologyneutral

Framework Goals•Spectrumtrading•GovernmentpaymentforspectrumOperational Goals•Strongerroleinregional/international•Marketbasedpricingmechanisms•TransparencyInstitutional Issues•Staffretention,skills,capacities

Removal of Obstaclesto Development

Evolution of Focus From Institutional to Operational to Framework /Policy

Leading Regional RegulatorSKMMwellpositionedtotakeadvantage of world leading developments in spectrum management

AccountingInvoicing&Receipting

066 067



AsummaryoftheresultsfromtheSMSR2007/2008exercisewassharedwiththe public in a session held on 14 October 2008 at the SKMM’s auditorium.Furtherconsultationsonspecificitemsinthekeystrategicareasareexpectedin2009and2010asSKMMstepsforwardtocarrythroughthestrategicroadmap,implementing the recommendations.

Spectrum Research CollaborationAsSKMMmoves towards leadership in spectrummanagement,buildinghumancapital and resources in the areas of spectrum management is an important aspect tosupportthestrategicroadmap.SKMMtogetherwithdesignatedInstitutionsofHigherLearning(IHLs)collaboratedinvariousprogrammesorprojectsonspectrummanagement related studies or research. This is being undertaken through the SpectrumResearchCollaborationProgramme(SRCP). TheSRCPaimstoimprovetheadministrative,regulatoryandtechnicalexpertisein spectrum management by promoting and funding research on spectrum management related matters in collaboration with IHLs and the industry.ThroughSRCP,experiences,knowledge,researchstudiesorfindingsaresharedwithinterested parties through a web collaboration portal at www.spectrumresearch.com.my.Theportalwasoperationalattheendof2007andservedtodisseminateknowledge as well as to aid networking among collaborative members. The web portalwasofficiallylaunchedon12April2008.

Source:SKMM-SpectrumResearchCollaborationProgramme(SRCP)

Spectrum Research Collaboration Programme (SRCP)TheSRCPstartedinSeptember2006withtheestablishmentoftheResearchCollaborationSteeringCommittee(RCSC).TheRCSCisresponsibleforthestrategicdirection,policyaspects, anddeterminationof priorities, recommendationsof collaborationprojects toSKMMandalsotoapprovetheannualoperationalplansoftheSRCP.

Source:SKMM-SRCPObjectives

TheSRCPisstructuredtoensurethatthenecessarygovernanceoftheresearchprogrammesorprojectsaresoundandeffective.Thereisthesecretariatprovidingsupport to the two committees within the SRCP structure to provide a strongmanagement framework and guidance in the collaborative framework.

TheObjectivesofSRCP

• Serveasafocalpointofinformation,knowledgedevelopment,andResearchandDevelopmentactivitiesrelatedtospectrummanagement.

• DevelopSKMMknowledgeresources;improvecapabilityofthosedealingwith spectrum management.

• Provideplatformforcollaboration,sharingandexchangeofknowledge,expertise and enhance capabilities to improve spectrum management.

Source:SKMM-CommitteesProvidingGuidanceinCollaborativeProcess

Collaboration of the Parties in the SRCPTheRCSCsteerstheprogrammetoachieveitsmandateassistedbytheRCPandtheSRCPsecretariat.ThisensureseffectivegovernanceofthewholeSRCP.

SKMMapprovesawardstoallcollaborationresearchprojectsthroughatenderprocess.Onceprojectsareapproved,collaborationamongstuniversitiesandtheindustry in the research areas are assisted through web networking hosted by SKMM.Universitiesand industrialparticipants can formResearchCollaborationClusters which may collaborate not only with each other, but also interact with the ResearchCollaborationPanelandtheSRCPSecretariat.

The SRCP establishes collaborative relationships with other centres or Universities,with similar or related initiatives, locally and overseas. In this respect, it is of particular importance to make use of the collaboration possibilities within regional and international frameworksuchastheAsia-PacificTelecommunicationsandEUframework.ThefigureshowsthefunctionalrelationbetweenthepartiesintheCollaborationProgramme.

Research Collaboration Programme Management

Source:Industry,SKMM-ResearchCollaborationProgrammeManagement

Role of SKMM in the SRCPThefollowingareSKMM’srole:• SKMM allocates an annual fund available for selected Research and

Development projects. SRCP budget allocation varies from year to year andcurrentlystandsatRM1millionperannum.SKMMissuestheannualRFPandprojectsareevaluatedwiththeassistanceoftheRCPwithfinalapprovalforallresearchanddevelopmentproposalsrestingwithSKMM.

• The Chairman of SKMM is the Chairman of the Research CollaborationSteering Committee.

• Lectureseries,conferencesandothereventsareorganisedbySKMMinsupportoftheSRCP.

SecretariatandCommitteesProvidingGuidanceintheCollaboration

1. Research Collaboration Steering Committee (RCSC)TheSRCPisgovernedbytheRCSCandchairedbytheChairmanofSKMM.MembersofRCSCarefromSKMM,KTAK,representativesfromtheCommunicationsandMultimediaindustry,governmentagencies,variousstakeholdersandDeputyVice-ChancellorsofUniversities(ResearchCentres).

RCSC’srolesareto:• Ensureintegrity,transparencyandindependenceofSRCP;establishment

andmaintenanceofworld-classstandardsandreputation,appropriatenetworking of available resources;

• Responsibleforstrategicdirection,policyaspects,determinationofpriorities;• RecommendcollaborationprojectstoSKMM;and• ApprovalofannualoperationalplanofSRCP,includingmodifyingSRCP

mandate as and when necessary.

2. Research Collaboration Panel (RCP)TheRCPsupportstheRCSC.MembersofRCParefromIHLsandtheIndustrywhoareelectedbytheRCSC.TheRCPadvises,managesandmonitorstheresearch programmes.

RCP’sresponsibilitiesinclude:• Identificationofpartnershipprogrammes;• Identificationofappropriateexistingresourcesavailablewithinthe

programme’sperimetre(includingsubjectmatterexperts);• DevelopmentofprogrammesincollaborationwithIHLscommittedtothe

implementation of the selected programmes;• Identificationofresearchtopicsandevaluationofresearchproposals;• PromotionoftheCollaborationProgrammetoensureitsgoalsareachieved;• ManagementandadministrationoftheCollaborationProgramme;• Co-ordinationtooptimisetheuseofresourceswithinthepartnership;and• AnalyseandadvicetheSteeringCommitteeandSKMMonresearchprojects

and their status.

3. Research Collaboration SecretariatTheSecretariat(alsoknownasSRCPSecretariat)supportstheRCSCandRCP.ThetasksoftheSecretariatalsoincludemaintenanceandupdatesofthewebpagefortheIHLsCollaborationProgramme(http://www.spectrumresearch.com.my).

University

Industry

SKMM

Secretariat

Collaborative

2QuarterlyReport 3 Refer

4Advises1Monitors

6Feedback

RCSC

RCP

FeedbackReport5

QuarterlyReport

1. Secretariat monitors the progress of research projects, by evaluatingQuarterlyReports,conductingtechnicalvisitstoUniversitytogetherwithRCPandmeetingwithresearchteam,ifnecessary.

2. Research teams are required to submit physical and financial progressreporteveryquarter.

3. SecretariatcompilesquarterlyreportsandreferstoRCP,aswellasanyoutstanding matters pertaining the research.

4. RCPadvisesSecretariatontechnicalissuesregardingtheresearch,whilealsoreports the research progress to RCSC during Steering Committee meetings.

5. Secretariat prepares paper and reports to SKMM management on theprogressoftheresearchprojects,includingadvicesandrecommendationsfromRCP(ifany).

6. SKMM management acknowledges the report and provide feedbackto Secretariat on any outstanding matters, with proposed actions to be implementedordirectorstobeinformedtospecificresearchteam(ifany).

2007 2008

TotalFundAllocated RM3.844million RM1.06million

No.ofProjectsApproved 11 6

068 069


SKMM also leverages on this programme to bring experts from academia andindustry,bothlocalandoverseastogetherforknowledge-sharing.ThisnetworkingamongthemisanessentialpartoftheprogrammeasitensuresthatUniversitiesand researchers are focused and in touch with the industry. Through such collaborations, theSRCPwillbeable toseek,nurtureanddevelopexperts fromlocaluniversitiestoassisttheindustrytofindsolutionsaswellascreatingareadypool of human capital that the industry can tap from.

Source:SKMM-SpectrumResearchPriorityAreas

Source:SKMM-OtherBenefitsofCollaborationthroughSRCP

Milestone of SRCP

Source:SKMM-SpectrumResearchCollaborationProgramme

Research Projects 2007ThefirstRequestforProposal(RFP)wasissuedin2007,wherein22submissionswerereceived.ElevenspecificresearchproposalswereselectedandawardedthefirstSRCPResearchFund.Twooftheresearchprojectswerecompletedin2008,andtheremainingninearescheduledtobecompletedin2009.

Source:SKMM-ResearchProjects2008


No. LeadIHLandPartner(s) Research Title CompletionDate

1. UNiM,FirstPrincipleSdnBhd Leader:Dr.CasseyLeeHongKim

Issue of Spectrum Cost versus Network Cost

Dec2008

2. Uniten,UTMLeader:AssocProfDr.NorashidahMdDin

RadioFrequencyRadiation(RFR)PreliminaryStudyforWLANNetworksandMobilePhoneBaseStationsinMalaysia

Dec2008

SpectrumResearchPriorityAreas

Emerging Wireless TechnologiesFastdevelopmentofwirelessbroadbandcommunicationsresultsingreaterdemand for radio spectrum and drives the development of new technologies to copewithincreasingdemandforbroadbandservices.ItisimportantforMalaysiato strengthen its research activities on emerging technologies and provide the fundsforthese.EmergingtechnologiesincludeCognitiveRadio,SoftwareDefinedRadio(SDR),high-altitudeplatforms(HAPS)andUltraWideband(UWB).

Spectrum Management Inordertoefficientlyfulfilltheincreasingspectrumdemand,spectrummanagementshouldputgreateremphasisontheconsiderationofnewemergingspectrum-efficienttechnologies and economic aspects such as spectrum cost. Studies on spectrum managementwillleadtopolicyandregulationsdevelopment.Forexample,thestudyonspectrumcostversusnetworkcostandissuesoninterferencemanagementtechniques.

Spectrum and UsIncreasingdemandformobilityrequiresmorespectrum.Thereisaneedtostudy how and to what extent this intensive use of spectrum will change and affect our lives. This is an exciting theme for sociologists, politologists and economists.Themaintaskofthefrequencymanagersistoprovideasmuchspectrumaspossibletofulfillincreasingdemands.Inaddition,electromagneticradiation is a concern and studies in this area should be considered including investigationscarriedoutbytheWorldHealthOrganisation(WHO).

OtherBenefitsofCollaborationthroughSRCP

• Capacitybuildingandknowledgegrowthforthoseinvolvedinspectrummanagement.

• Fundingresearchthemesinlinewithneedsoftheindustry.• Platformforsharingknowledgeandexchangeofexpertiselocally,regionally

and internationally.• Promotionandorganisationofseminarsandworkshopstoawideraudience

soastohelpacquaintthepublicinaspectsofspectrummanagement.

• SRCPincreasestheweightofMalaysianspectrummanagementintheregional and international arenas.

• ThespectrumresearchobjectivesareinlinewithpromotingandachievingthegoalsoftheNinthMalaysianPlanandMyICMS886nationaldevelopmentstrategy.

SRCPEstablishment

(SEPT)

ResearchFramework

(APR) Award11ResearchProjects(SEPT)

Award6Research Projects(JAN)

SpectrumResearch

Portal(APR)

Colloquium2008(DEC)

1stRCSC(JAN)

2ndRCSC(APR)

RFP2008(JULY)

3rd RCSC

Colloquium2009

RFP2007(APR)

RCPCommenced

(NOV)

2006 2007 2008 2009


2008 Research Projects The SRCP Secretariat announced the themes for the 2008 round of researchcollaborationwiththeRFPissuanceinJuly2008.Abriefingsessionwasconductedinthesamemonth,providingopportunitiesfortheresearcherstoseekclarificationon the advertised research topics, as well as general information about the research programme.31submissionswerereceived,thisbeingasignificantincreasefromthenumberofsubmissions received in thefirst round in2007.However,outofthe31submissions,onlysixresearchproposalswereselectedforthe2008SRCPResearchFund.


3. UTM,Univ.ofSydney,IIUM,UniKLLeader:ProfDr.RoseAlinda

binti Alias

Adoption, Appropriation and Impact of Wireless Technologies on MalaysianSociety

Jun2009

4. MMU,MIMOSLeader:AssocProfDr.LeeSze

Wei

WirelessSystemCo-existence in Extended C-Band

Jul2009

5. UPM,UTM,USM,IIUM,CRC(Canada)Leader:Dr.NorKamariah

Noordin

Issues on Reliable Communications at FrequenciesBandsabove25GHz

Aug2009

6. UTM,Uniten,IIUMLeader:ProfDr.NorsheilaFisal

DynamicSpectrumAccessManagementSystemUsingCognitive Radio

Aug2009

7. UTM,UKM,MaxisLeader:ProfDr.TharekAbdul

Rahman

Emerging Wireless Technologies (Spectrum Needs forIMT-AdvancesinMalaysia)

Sep2009

8. UTM,UMP,UiTM,MalaysianRedCrescentSociety,RFComm. Sdn Bhd, Radio Amateur operatorsLeader:AssocProfDr.Ahmad

ZuriSha’ameri

TheUseofFrequencyAdaptiveHFSystem

Sep2009

9. UKM,UUMLeader:AssocProfDatinDr.

NorizanAbdulRazak

The Impact of Wireless Technology AmongMalaysianSociety

Sep2009

10. UM,DiGiTelecommunicationsLeader:ProfDr.Kaharudin

Dimyati

Synergising2G,3GandWiMAX

Sep2009

11. MMU,MUSTLeader:Dr.ChuahTeongChee

Issues of Reliable Communications at FrequenciesBandsabove25GHz

Nov2009

No. LeadIHLandPartner(s) Research TitleDuration(months)

1. UTM,MaxisLeader:ProfDr.TharekAbd

Rahman

Sharing Studies between theMobileServiceandOtherServicesinthe470-960MHzFrequencyBand

18

2. UTM,UKM,USMLeader:Dr.Muhammad

Ramlee Kamarudin

TheRegulatoryMeasuresto Enable Introduction of Software-DefinedRadioand Cognitive Radio Systems

20

3. UTM,UiTMLeader:ProfDr.TharekAbd

Rahman

ThePossibilitiesofHighAltitudePlatformStationGatewayLinksDeploymentinthe5850-7075MHzinMalaysia

18

4. UPM,UTM,USM,UIAMLeader:Dr.RajaSyamsul AzmirRajaAbdullah

The Effect of Emission fromShortRangeDeviceson Radio Communication Services

18

5. UKMLeader:Dr.RozilawatiRazali

Collaborative Spectrum ManagementSystem

12

6. UUM,MMULeader:AssocProfDr.Engku

MuhamadNazriEngku Abu Bakar

AStrategicModelinSpectrumDemandAllocation and Spectrum Pricing

12

070 071



SRCP RFP 2008 briefing session, July 2008

Monitoring of Research ProjectsEach research team is required to submit a quarterly progress report of theirresearchprojecttotheSRCPSecretariat.Thequarterlyreport(withdetailedwrite-ups) shall comprise the physical progress of the project and also the financialreport detailing expenses incurred.

Inaddition,theRCPandSRCPSecretariatsconductmonthlytechnicalvisitstoeachresearch university location on a rotational basis, to check on the progress of the researchprojects,providefeedbackontheresearchworksaswellasconductauditontheresearchfacilitiesorequipmentacquiredfromtheresearchfund.Thisaimsto ensure that the research project is on the right course towards achieving itsintendedobjectivesandalsotoattendtoanydifficultiesfacedbytheresearchers.

Technical visit to University of Nottingham Malaysia Campus, November 2008

Promotional ActivitiesContinuous efforts are made to introduce the research programme to the academia andindustry.InadditiontoinvitingtheresearchcommunitytotheSRCPprogrammesat SKMM’s headquarters in Cyberjaya, SKMM also responded to requests fromuniversities to conduct “Opportunities in SRCP” session at their campus. Thisenabled more interested parties from the said university to learn about the research programmeandtoenquireonpossiblefundingopportunitiesinthefuture.Insuchsessions,theRCPandSRCPSecretariatwillbeavailabletoprovidefurtherinsightson participation, opportunities for partnership and attend to questions from theaudiences on research areas which may be funded by the programme.

In May 2008, SKMM had a session with Universiti Pendidikan Sultan Idris atTanjungMalim,Perak.TheSRCPSecretariatpresentedtoaround100participantscomprisingresearchers,lecturersandfinalyearstudentsfromtheinstitution.Thesessionraisedpositiveawarenessoftheprogrammebesidesraisingparticipants’interest to join the SRCP research community. SKMM looks forward to moreof such interactive sessions in2009 topromote theSRCP tootherUniversitiesthroughRCPvisits.

Briefing session to Universiti Pendidikan Sultan Idris, Perak, May 2008

InAugust2008,SKMMwas invited topresent theSRCP toparticipantsof theJoint Sixth National Conference on Telecommunication Technologies (NCTT)Conference2008.ThiseventwashostedbyUniversitiTenagaNasional(UniTen)andwasheldinconjunctionwiththeSecondMalaysiaConferenceonPhotonics(MCP)Conference2008at IOIPalmGardenResort,Putrajaya.Duringthethree-day event, the SRCP Secretariat delivered a paper on the “Spectrum ResearchCollaborationProgramme”.AresearchteamfromUniTenalsopresentedupdatesoftheirproject“ChallengesinRadioFrequencyRadiationStudyforMobileBaseStationandWLANAccessPointStudy”.

Lecture SeriesOneofthesupportingactivitiesoftheSRCPistheLecturesSeries,withinvitedspeakers from the industry and universities, sharing their knowledge, expertise and experience about spectrum. Through such events, researchers can share theirwork,exchangeviewsand issueson theirongoing researchprojectsandpossibly seek partnership or networking with relevant parties from the industry, GovernmentandotherIHLs.Theseriesisopenedtothepublicandattendanceis free of charge.

Lecture series on Unmanned Aerial Vehicle (UAV) by Universiti Sains Malaysia, November 2008.

SRCPLectureSeries2006-2008

No. Lecture Presenter Date

1. SpectrumrulesOK:WirelessCommunications from Submarines to Satellite

UTHM 1Dec06

2. SmartAntennaandLocation-BasedServices UTM 21Mar07

3. Wireless Broadband Access: An OverviewonStandardsandSystemsTrialsinMalaysia

MMUandDiGi 12Jul07

4. EvolutiontoNextGenerationMobileNetwork

MaxisCommunications

17Aug07

5. ApproachesinRe-farmingofSpectrumandSpectrumManagement

Telenor 16Aug07

6. MobileTV Qualcomm 4Sep07

7. CurrentactivitieswithinITU-RtowardsIMT-Advancedor4GSystems

NTTDoCoMo 4Oct07

8. SetTopBoxandDigitalTV RTM/MTSFB,NDSAP,TelenorBroadcastHldgAS

21Feb08

9. WiMAXTechnologyandtheStrategicImportanceofInteroperabilityforLargeScaleDeployment

WICHORUSInc. 5Jun08

10. PropagationEffectbyRaininWirelessCommunications System

UTM 1Aug08

11. The Sentinels: Technologies and SpectrumOccupanciesofRadars

IIUM 24Oct08

12. UnmannedAerialVehicle(UAV):TheIntegrationofUAV’sOperationintoCivilAirspace

USM 21Nov08

13. WiMAXEssentials:Technology,Interoperability,DeploymentChallengesandMarketAnalysis

Awards Solutions, Inc

22Dec08

1 2 3

4 5

CRC Canadian Research Center

DiGi DiGiTelecommunicationsSdnBhd(mobileoperator)

IIUM InternationalIslamicUniversityMalaysia

Maxis MaxisCommunicationsBerhad(mobileoperator)

MIMOS MalaysianInstituteofMicroelectronicSystems

Sixlectureswereconductedin2008,withparticipationfromoverseaspresentersandlocal universities. The lecture series is also a platform where researchers under the SRCPwhohavecompletedtheirresearchprojectwillbegivenasessiontopresenttheirfindingstotheindustry.Thishelpstoenlightentheindustryofthefindingsonaspecificissueortopicandcreatesopportunityforfurtherworksandcollaboration.

Source:SKMM

SRCP Colloquium 2008SRCP’s2008activitiesincludedtheinauguralSRCPColloquium2008,whichwasheldon18and19December2008atthePutrajayaMarriottHotel.Thetwo-dayeventenabledallresearchteamstoshareandpresenttheirprogressandfindingstoSKMM,RCSC,RCPandtheSRCPresearchcommunity.EachoftheeleventeamleadersfromtheSRCPResearchProject2007presentedupdatestotheaudiencecomprising researchers, research officers and research assistants as well asrepresentativesfromKTAKandSKMMoffices.Theaudiencewasinvitedfortheircommentsandfeedbackonpossibleimprovementstotheprojects.AttheendoftheColloquium,allthepresentationmaterialwassharedwiththeSRCPresearchcommunitythroughtheSRCPportal.

1) Chairman of SKMM officiated the opening of SRCP Colloquium 2008 on 18December2008

2) ProfIrDr.AhmadFaizal,ChairmanofRCPandMrTohSweeHoe,SeniorDirectorofResearchPlanningDivision

3) ParticipantsattheSRCPColloquium20084) EncikMohamedSharilTarmizi,COOofSKMMdeliveringtheClosingSpeech

at the event5) Groupphotoattheendoftheevent

Acronyms

072 073



Spectrum Assignment and ManagementTypes of Assignment

Spectrum Assignment (SA)IMT2000 Spectrum AssignmentInternational Mobile Telecommunication 2000 (IMT2000) or Third GenerationMobileSystem(3G)spectrumhadbeenassignedtoTelekomMalaysiaBerhad(TM)andUMTS(M)SdnBhdon2April2003inthefirstroundofthetenderexercise.

Two blocks of spectrum, comprising the earlier unassigned block in the firstroundof3Gtenderandtheremainingblockinthecore3Gspectrum[Terrestrialportion] band were put up for grab in this round of tender. TT dotCom Sdn Bhd andMITVCorporationsSdnBhdwereassignedwith IMT2000spectrumon8November2006and2March2007respectivelythroughasecondroundofthetender exercise.

On19December2007MITVCorporationstransferredtheirSAtoUMobileSdnBhd. In January 2008, the Commission approved Telekom Malaysia Berhad’s(TM) request for the transfer of 3G Spectrum Assignment, from TelekomMalaysiaBerhad(TM)toCelcomMalaysiaBerhad(Celcom).Theeventforthe

saidtransferwasheldinSKMM,Cyberjayaon27January2008.

In November 2007, the Commission approved TT dotCom Sdn Bhd requestfor transfer of 3G Spectrum Assignment, from TT dotCom Sdn Bhd to DiGiTelecommunicationsSdnBhd.TheeventforthesaidtransferwasheldatDewanPutraPerdanaShangri-La,Putrajayaon7May2008.

ThetotalnumberofbasestationsforIMT2000SAinstalledbyalltheoperatorsin2008are5,056.TotalbasestationsinstalledbyTM,UMTS,UMobileandTTDotcomaccordingtoregionsarelistedbelow:

Table1:TotalBaseStationsforSA

IntermsofSArevenuecollection,SKMMhadcollectedmorethanRM40millionfromTM,UMTSandUMobilein2008.ThecollectedfeesarefrombothSAandAnnualMaintenanceFee.Detailsofthecollectionareshowninthetablebelow:

Table2:FeeCollection

Apparatus Assignment (AA)ThissectiondescribesAAapplicationsandcollectionfortheyear2008.

AA Applications for Year 2008 SKMMprocessed91,464applicationsin2008.Atotalof12LicensingCommittee

Meeting’s(LCM)paperswereforwardedforLCMapprovalin2008.Thenumberof applications processed since the beginning of the year and the comparison againstyear2007areoutlinedbelow:

Table3:MonthlyAAApplicationsSinceBeginningoftheYear2008

SKMMprocessed10typesofAA.ThetablebelowgivesthebreakdownonthenumberofAAbasedoneachtypeofAAfor2008whilethepiechartshowsthegraphical representation.

Table4:AAApplicationsbyTypeofApparatus

AA applications by type of apparatus

SKMMalsoreceivedvarioustypesofapparatusassignmentapplicationsfromGovernmentagencies.Theagenciesareasfollows:• PolisDiRajaMalaysia• MajlisKeselamatanNegara• JabatanPenerbanganAwam• KementerianPelajaranMalaysia• JabatanPenyiaranMalaysia• JabatanPengairandanSaliranMalaysia• JabatanPerpaduanNegaradanIntegrasiNasional• JabatanMeteorologiMalaysia• PusatKo-Kurikulum

Region/Operator TM/Celcom UMTS UMobile TTdotCom/

DiGi

Northern 402 416 0 0

Eastern 212 107 0 0

Central 992 1,357 479 0

Southern 383 314 0 0

Sabah 129 43 0 0

Sarawak 162 60 0 0

Total 2,280 2,297 479 0

Operator SAFee MaintenanceFee Total(RM)

Celcom 8,000,000 11,077,920 19,077,920

UMTS 8,000,000 10,726,800 18,726,800

UMobile 0 2,399,040 2,399,040

DiGi 0 0 0

Total(RM) 16,000,000 24,203,760 40,203,760

Month Totalapplication2007 Totalapplication2008

Jan 2,489 4,054

Feb 17,649 23,719

Mar 20,210 18,512

Apr 8,140 8,452

May 11,482 6,582

Jun 4,509 2,750

Jul 1,622 3,251

Aug 2,491 3,138

Sep 5,403 7,144

Oct 2,874 6,063

Nov 3,328 5,986

Dec 3,439 1,813

Total 83,636 91,464

MMU MultimediaUniversity

MRCS MalaysianRedCrescentSociety

MUST MalaysianUniversityofScienceandTechnology

UiTM UniversitiTeknologiMARA

UKM UniversitiKebangsaanMalaysia

UM UniversitiMalaya

UMP UniversitiMalaysiaPahang

UNiM UniversityofNottinghamMalaysiaCampus

Uniten UniversitiTenagaNasional

UniKL UniversitiKualaLumpur

UPM UniversitiPutraMalaysia

USM UniversitiSainsMalaysia

UTHM UniversitiTunHusseinOnnMalaysia

UTM UniversitiTeknologiMalaysia

Type of apparatus Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Ship station 49 90 141 69 44 80 67 47 276 37 1,165 948 3,013

Aeronautical mobile station 15 47 39 30 13 8 23 28 24 11 913 8 1,159

Landmobilestation 78 114 293 119 110 96 58 21 68 29 52 53 1,091

Amateur station 59 305 149 97 55 347 42 79 572 112 100 12 1,929

Broadcast station 12 49 89 212 16 177 18 15 15 0 3 7 613

Aeronautical mobile station 2 6 18 19 57 15 1 1 25 1 0 0 145

Landfixed(Allocatedcellularband) 0 18,359 268 303 232 414 238 276 2,535 254 188 0 23,067

Landfixedstation 166 154 1,117 295 298 342 248 109 206 138 617 4 3,694

Terrestrial microwave station 3,158 4,544 16,278 7,273 4,632 1,248 2,553 2,528 2,708 5,467 2,010 781 53,180

Earth station 515 51 120 35 1,125 23 3 34 715 14 938 0 3,573

Grandtotal 4,054 23,719 18,512 8,452 6,582 2,750 3,251 3,138 7,144 6,063 5,986 1,813 91,464

TerrestrialMicrowaveStation58.1%

LandFixedStation4.0%

ShipStation3.3%

AeronauticalMobileStation1.3%

LandFixedStation(CellularBand)25.2%

Aeronautical FixedStation

0.2%Broadcast Station

0.7%AmateurStation2.1%

LandMobileStation1.2%

EarthStation3.9%

074 075



• JabatanPelajaranPerlis• JabatanPelajaranSabah• JabatanAirNegeriSabah• JabatanPerkhidmatanVeterinarTerengganu• JabatanBekalanAirKedahUtara• UniversitiTeknologiMalaysia• UniversitiTeknologiMARA• UniversitiUtaraMalaysia

Delegation of Approval to Senior Director In order to reduce the time taken to approve applications for Apparatus Assignment,SKMMhastakentheinitiativetoshortentheAAprocessingperiodbyrecommendingtotheLCMandSKMM’sChairmantodelegatetheapprovaltoResource Assignment and Management Division Senior Director. The approvalwasgivenbySKMM’sChairmanforthefollowingservices:• AllocatedCellularBand-GSM900andGSM1800• WiMAX2.3GHz• CDMA450

Revenue from AA and SAAtotalofRM214.9millioninrevenuehasbeencollectedbySKMM.For2008,theSKMMcollectionhasincreasedbyRM27millioncomparedto2007.Thecollectionsince early of the year are shown in the following table and graph.

Table5:ComparisonofAAandSAcollectionfor2007&2008

Expired AA Action was taken on AAs, which have expired and not renewed by their holder.

RegionalofficeswereinformedonAAcancellation14daysbeforetheclientlistisbroughtuptoLCmeetingforacknowledgement.The14daysmarginisprovidedtoincreasethelikelihoodforbothregionalofficestocollecttheoutstandingpaymentand also to provide ample time for client to continue with payment.

As of January 2008 to December 2008, 27 FIRs were raised and submitted toEnforcementDepartmentforfurtheraction.

It is important at this stage to take note that all applications sent after the cancellation have been performed and will be treated as new applications and are subjecttotheAAguidelineconformity.

Issuance of New Call Sign and Maritime Mobile Service Identification (MMSI)SKMMissuedcallsignstoAmateur,AircraftandShipservices.ForShipstation,SKMMalsoissuedMMSInumberstobeusedforshipelectronicidentity.ThenewcallsignsandMMSInumbersissuedin2008areshowninthetablebelow:

Table6:Totalissuanceofcallsign&MMSIsinceJanuary2008

Class Assignment (CA) SKMM presented the new CA for LCM approval on 22 May 2008. However thecommitteerequestedthataCACommitteebesetupwithparticipationofTechnicalStandardDepartment,SpectrumResearchandPlanningDepartment,LegalandSecretarialDepartmentandResourceAssignmentManagementDepartment.

Todate,fivemeetingshavebeenorganisedtofinalisethedocument.Theproposednine new schedules as an addition to the existing schedules are as follows:• Radiofrequencyidentificationdevice• Activemedicalimplant• Aeronauticalmobiletelemetryaccessdevice• Mobilesatelliteaccessdevice• Satellitebroadcastingreceiverdevice• Terrestrialtelevisionbroadcastingreceiverdevice• Terrestrialradiobroadcastingreceiverdevice• One-wayradiopagerreceiverdevice• Satelliteradiolocationreceiverdevice

Therearealsoamendments,additionalfrequencybandsandupdateoftechnicalparameters made for the existing schedules. The schedules are:• Cellularmobileaccessdevice• Shortrangecommunicationsdevice• Leasedchannelradioaccessdevice• Wirelessaccessdevice• Verysmallapertureterminal• Securitydevice• Wirelessmicrophonedevice• Shortrangecommunicationsdevice

New Spectrum Management System (SpMS) TheSpectrumManagementSystem(SpMS)hasundergoneafewcustomisations.Theonline web apparatus assignment application submissions through the Internet is one ofthecustomisationtasksdonebySKMM,anditisknownase-Spektrum.e-Spektrumwas launched in March 2008, enabling SKMM registered clients to submit theirApparatus Assignment applications through the Internet. This is an alternative way for clients to submit their applications using Internet rather than the old way of coming to SKMMofficestosubmittheirapplication.Oneoftheadvantagesofe-Spektrumisthatit reduces data entry work which constitutes most of the processing time.

e-Spektrum has been considered as one of the initiatives that SKMM took toimproveSKMM’sservicedeliverytoitscustomers.Tofurtherenhancethesystem

tohaveanonlinepaymentfacilitytopayfortheapplicationfee,SKMMlaunchede-paymentservicesinAugust2008.

Before August 2008, the modes of payment for e-Spektrum are by manuallysubmittingpaymenttothecounterbycheque,postalorder,cashdeposit,bankdraftand bank account transfer. With the advent of this online payment, customers can nowmakepaymentusingthee-paymentfacility.Themodesofpaymentallowedfore-paymentareeitherthroughcreditcardsorauto-debit.

BankIslamMalaysiaBerhadhasbeenappointedbySKMMasthePaymentGatewayProviderforimplementationofe-Spektrum.

Thee-Spektrumaddressis: https://espektrum.mcmc.gov.myThee-Paymentaddressis:https://epayment.skmm.gov.my ARefresherTrainingonSpMSwassuccessfullyconductedfrom18to28August2008atSKMMRegionalOfficeinShahAlam.ThetrainingwasdeliveredbyMr.JuanSuanrezfromLSTelecomAG.ThepurposeofthisRefreshertrainingwastoeducateSpMSusersespeciallyfromregionalofficesonthecorrectprocedureinusingtheSpMS.ThisrefreshertrainingwasalsomeanttotrainSpMSusersonthenewfeaturesandtheyareexpectedtotrainotherSpMSuserswhentheyreturntotheiroffices.Thetrainingmodulesincludedthefollowing:• Administrative process in issuing new apparatus assignment licencing for all services• PerformingtechnicalanalysisusingnewSpectraEMCtool• Processingcancellations,reinstatements,renewalandtransferoflicence• Newfeaturesasaresultofcustomisationdonetothesystem.

Analogue to Digital MigrationDigital Trunk Radio Services (DTRS)MigrationfromanaloguetodigitalwaspartofSKMM’sFIDplan.Towardsachievingthisgoal,theanaloguetrunkedradioservices(TRS)providerswereencouragedtostart migrating to a digital system.

Month Year2007(RM) Year2008(RM)

Jan 2,244,763 4,032,896

Feb 5,526,190 62,965,472

Mar 158,387,218 107,705,563

Apr 4,375,681 14,629,851

May 1,978,996 3,587,013

Jun 2,157,284 4,267,402

Jul 3,254,849 3,009,695

Aug 1,153,943 3,349,441

Sep 2,029,165 6,665,073

Oct 2,153,346 3,129,964

Nov 1,961,549 1,240,143

Dec 2,143,356 379,710

Total 187,366,340 214,962,223

Service Number of call signs issued NumberofMMSIissued

Maritime 526 210

Aircraft 64 -

Amateur 1,625 -

GrandTotal 2,215 210

Jan Feb Mac Apr May Jun Jul Aug Sep Oct Nov Dec0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,00020082007

Months

076 077



Aspartofthemigrationplan,SKMMadvisedalltrunkedradiooperatorstoteamuptoformaconsortium.Asaresult,threeconsortiums,ElectcomsGroup,DTRSandHasyonTeknikwereinstituted.Thefollowingarethecompaniesineach consortium:

Table7:ConsortiumandCompanies

SKMM had also proposed the frequency block arrangement for 800 MHzfrequency to the following digital TRS consortiums, government and privatenetwork companies.

Table8:FrequencyBlockforConsortium,GovernmentandPrivateNetworkCompanies

Digital Trunked Radio Implementation Status AsaresultfromtheAAverificationworkwithinKlangValley,EWSButilisedthehighestnumberofAAswith179channels(89%)inblockAand14channels(7%)inblockC.DTRSmeanwhileutilisedonlysevenchannels(3.5%)inblockAand14channels(7%)inblockCandnoneinblockB.SegiMajuontheotherhand,utilisedonlysixchannels(3%)inblockCatCasaVistaCondoBangsar(AAsarestillvaliduntil15and19June2009respectively).

InthePahangandTerengganuAAverificationworks,atotalof52channelsfortrunk radio operators were inspected. EWSB utilised the highest number of AAs with28channels(4.67%)inblockA,eightchannels(1.33%)inblockB,butithadnochannelinblockC.SegiMajumeanwhileutilisedonly14channels(2.33%)inblockAandtwochannels(0.33%)inblockBandnoneinblockC.WidenetDistributor(DTRSConsortium)andTextphon(HasyonTechnologies)ontheotherhand, did not utilise any channels in all blocks.

The result of the audit works shows that all trunk radio service providers still have not migrated to their respective blocks as they are still using blocks which are not allocated to them.

Migration to Digital CDMA450 from Analogue ATUR450 and other analogue servicesAsofDecember2008, totalapplicationsreceivedforCDMA450byTelekomMalaysiaare213applications.Table9showsthetotalsitesaccordingtoregion.

Table9:TotalBTSbyRegion

Application on Cellular Base Station (ACB)FromJanuary2008toAugust2008,theACBAAapplicationswereapprovedbytheLCM.However,LCMauthorisedtheapprovalofACBAAapplicationstoResource Assignment and Management Division’s (RAMD) Senior Director

startingAugust2008onwards.Todate,totalACBAAapplicationsapprovedbybothLCMandRAMD’sSeniorDirectorare22,879applications.

2.3GHz Broadband Wireless Access (BWA) The Tender Evaluation Committee (TEC) presented the final evaluation report totheCommissionon23February2007.Pursuanttotheapprovaloftheevaluation,on16March2007,theMinisterofEnergy,WaterandCommunicationsmadeanannouncement on the successful applicants for the 2.3GHz Broadband WirelessAccess(BWA)spectrumtenderexercise.Thesuccessfulapplicantsareasfollows:

Table10:SuccessfulApplicantsfor2.3GHzBWASpectrumTender

The letters of announcement were issued on 30 March 2007 to the successfulapplicants. The companies then submitted their Bank Guarantee and DBPs. TheDBPswereapprovedinJanuary2008,wherebytheWiMAXoperatorsareexpectedtodeliverthecommercialroll-outbyAugust2008.

FromJanuary2008toAugust2008,theWiMAXAAapplicationswereapprovedbytheLCM.TospeedupWiMAXroll-out,LCMhasauthorisedtheapprovalofACBAAapplicationstoRAMD’sSeniorDirectorstartingSeptember2008onwards.Todate,totalWiMAXAAapplicationsapprovedbybothLCMandRAMD’sSeniorDirectoris593applications.

Government Integrated Radio Network (GIRN)On15February2008until27March2008,SKMMreceived650AAapplicationsfromSapuraSecuredTechnologiesSdnBhdonbehalfofMajlisKeselamatanNegara.

However,sincethesystemisusingaTETRAsystem,awiderangeofbandwidthis needed to implement GIRN network. To ensure that the resource is utilisedefficiently, SKMM is involved directly in this project by attending all progressmeetingsconcerningGIRNnetwork.

Thus far,152channelswereapproved for the implementationofGIRNnetwork.This comprised128channels tobeusednationwideandadditional24channelswereapprovedtobeusedforthebasestationintheKLcityarea.

Todate,427applicationshavebeenapprovedbyLCM.BasedonthecurrentAAapprovedbytheLCM,theofferedcoverageforGIRNsystemareasfollows;

Peninsular Malaysia

Sabah and Sarawak

Trial Application On Broadcasting ServiceSKMM received few applications from various parties to conduct trial on newbroadcasting technologies. The descriptions of trials are as follows:

Mediaflo Trial by Measat Broadcast Network System Sdn Bhd (MBNS)On1October2007,MBNSincollaborationwithMaxis,submittedalettertoSKMM

Consortium

ElectcomsGroup

Electcoms Berhad

CMRSTrunkRadioSdnBhd

SyarikatPelatusSdnBhd

SaturnHoldingsSdnBhd

Push-To-TalkSdnBhd

DTRS

Widenet Sdn Bhd

Mal-TelSdnBhd

STR Communications Sdn Bhd

Asiaspace(non-trunkedradiooperator)

HasyonTechnologies

HasyonTeknikSdnBhd

Cometron Sdn Bhd

PagerCommunicationsSdnBhd

Samen Trunk Radio Sdn Bhd

Textphone Sdn Bhd

FrequencyBlock

A B C

1. DTRSConsortium(IDEN/TDMA)

Electcoms WirelessEWSB(GOTA/CDMA)

Government/PrivateNetwork

2. FutureExpansion Electcoms WirelessEWSB


3. FutureExpansion Electcoms WirelessEWSB


4. HasyonTechnologies Electcoms WirelessEWSB


Region Number of BTS

Northern 44

Eastern 39

Central 34

Southern 45

Sabah 28

Sarawak 23

Total BTS 213

Company Band(MHz) AreaofOperation

Bizsurf(M)SdnBhd 2330–2360 PeninsularMalaysia

MIBCommSdnBhd 2360–2390 PeninsularMalaysia

AsiaspaceDotcomSdnBhd 2300–2330 PeninsularMalaysia

Redtone-CNXBroadband 2375–2400 Sabah and Sarawak

078 079



toconductatrialusingMediaFLOtechnology.PriortoMediaFLO,MBNSconductedatrialusingDVB-Htechnology.

ThetrialapplicationwasapprovedbyLCMon5November2007andtheAAforthetrialexpiredon11February2008.ThedetailsofAAforthetrialareasfollows:

Table11:AADetailsforMBNSTrial

DVB-H Trial System by U Television Sdn Bhd On22August 2007,UTV submittedAAApplications toSKMM to installDVB-Hsystematthree locations inKlangValley.LCMapprovedtheapplicationon22November2007forasix-monthperiodonatrialbasis.

Uponexpiry,inApril2008,SKMMreceivedadditionalAAapplicationsfromUTVontheirDVB-Hsystems.TheapplicationswereapprovedbyLCMon22May2008.

The details of AA for the trial are as follows:

Table12:AADetailsforUTVTrial

T-DMB Trial System by Malaysian Technical Standard Forum Berhad (MTSFB) On6November2007,MTSFBsubmittedAAApplicationstoSKMMtoinstallT-DMBtrial system in theKlangValley. LCMapproved theapplicationon22November2007onasix-monthtrialbasis.


Table13:AADetailsforMTSFBTrial

Howeverduetocircumstances,thetransmissionofT-DMBwasonlytransmittedfromMenaraKualaLumpur.

T-DMB Trial System by Asiaspace Sdn BhdAsiaspace Sdn Bhd has submitted three AA applications to roll out the DigitalMultimediaTransmissionusingDABtechnologyintheL-Band(1467MHzto1492MHz)on27November2007.

On14January2008,AsiaspaceSdnBhdalsosubmittedAAapplicationtorolloutDigitalMultimediaTransmissionusingDABtechnologyutilisingVHFband III (174MHzto230MHz).

TheapplicationswerereviewedbytheLCMon3March2008andtheywereheldpendingbytheLCMcommitteesatthattime.

TheLCMagreedthattheapplicationsbeheldpendingadevelopmentinthepolicyonDTT,RFandServicePlanandSRSPonL-BandbyRPD.

However,duetoafewconsiderations,theLCMthenagreedtoapprovetheapplicationon11September2008forasix-monthperiodonatrialbasis.


Table14:AADetailsforAsiaspaceTrial

T-DMB Trial System by Sistem Televisyen Malaysia Berhad (TV3)On10November2008,SKMMreceivedaletterandtrialproposalfromTV3toconductdigitalTVtrial(T-DMB).LCMapprovedtheapplicationon27November2008witha six-monthtrialbasisandthetrialstartdatewillbeuponcommissioningofthetransmitter.


Table15:AADetailsforTV3Trial

Unmanned Aerial Vehicle (UAV) Unmanned Aerial Vehicle (UAV) is a remotely controlled or autonomous aircraftusedforsurveillanceandstrikemissions.Theaircraftisusedinhigh-riskoperation,where the usage of manual aircraft is impossible.

A consortium known as Unmanned Systems Technology Sdn Bhd (UST) incollaboration with the Ministry of Defense, has developed UAV to conductsurveillanceofthecountry’slandandseaborders.

On17and18March2008,USTinvitedSKMMtocarryoutfrequencyscanningtestduringUAVOperationalTestatMersingAirstrip,Johortoensurethatallradiocommunication apparatus being used during the test was in accordance to the frequencyregulatedintheCMA1998andSpectrumRegulation.Duringthetrial,theaircraftswereequippedwithvideocamerasanddata-linkapparatustoprovidethetargetedsurveillanceforMalaysia’slandandseaborders.

AsaresultoffrequencyscanningworksinMersing,SKMMhadidentifiedaspecificfrequencybandforUAVapplications. IPSTAR SKMMreceivedAAapplicationsfromTTdCon20November2007toinstalltwosatelliteearthstationshubsforabroadbandnetworkusingIPSTARsatellitethatisownedbyaThailandcompanycalledThaicomPublicCompanyLtd (Thaicom).IPSTARsatellite isatelecommunicationssatellite launched intogeosynchronousorbitbyThaicomPublicCompanyLimited(formerlynamedShinSatellite). Itwasdesignedforhighspeed,two-waybroadbandcommunicationsoveranIP(InternetProtocol).ItsnetworkutilisesKu-BandspectrumforuserapplicationsandKa-Bandfor hub communications. Thaicom claimed that the Ku-band spectrum providessolutionforservicesintheAsia-Pacificregionwithahigh-linkavailabilityforVSATuserapplications.However,theserviceavailabilityisyettobeoperationallyproven,especially, on rain attenuation compensation for both Ku and Ka bands.

Analysis was made on the current spectrum usage within the bands identifiedby the IPSTAR network. Based on the analysis, it was found that some of thespectrumsrequestedbyTTdCespeciallytheKa-banddownlinkfrequencyfrom18.3

GHzto18.675GHzhaveapossibilitytoreceiveharmfulinterferencefromexistingterrestrialmicrowavein18GHzband.SeveralmeetingswereheldbetweenSKMMand TTdC to discuss this matter and one of the options to mitigate the impact of interferencewasforTTdCtoinstallaninterferenceshieldingattheirHubstationlocatedatUPMSerdangandPedasLinggitoprotecttheirnetwork.

ThisapplicationwastabledtoLCMon23May2008andwasapprovedonconditionthat interferenceshieldsare installedprior tostartofoperationof thehubs.On26September2008,SKMMmadeavisittotheirHublocatedatUPMSerdangandfound that the installation of interference shielding was almost completed. The illustration of the installation is shown below.

Awareness Programme In2008,SKMMconductedsevenApparatusAssignmentworkshopswithindustryand government agencies at DiGi HQ Subang Hi Tech, Persatuan Nelayan Miri,Sarawak, Jabatan Laut Bintulu, Sarawak, Jabatan Laut Mersing, Johor, PortAuthority Johor Bahru, Johor, Pengusaha Feri Mersing, Johor and SIRIM JohorBahru, Johor. Participants of these awareness programmes were mainly fromvariousgovernmentenforcementagenciesandfisherycommunities.

Involvement In International EventsSKMMwasalsoinvolvedininternationaleventsincollaborationwithSpectrum,Engineering and Interference Resolution Department and International TechnicalCo-ordinationDepartment.Belowisthe listofeventswhichsawinvolvementofSKMMstaffmembers:

Table16:InternationalEvents

StationLocation LicenceExpiry Channel Bandwidth(MHz)

MenaraHawPar 11Feb2008 32 8

IbupejabatRisda 11Feb2008 32 8

JWMarriottHotelKL 11Feb2008 32 8

Station Name LicenceExpiry TX(Mhz) Bandwidth(Mhz)

TPM,BukitJalil 14Mac2009 1454.672 1536

MenaraKualaLumpur 14Mac2009 1454.672 1536

OneWorldHotel 14Mac2009 1454.672 1536

StationLocation LicenceExpiry Channel Bandwidth(MHz)

MenaraKualaLumpur 16Jun08 Ch11B 1536

BukitGasing 16Jun08 Ch11B 1536

Station Name LicenceExpiry Channel Bandwidth(MHz)

Bukit Besi 10Sep2009 Ch6b 1536

StationLocation LicenceExpiry Channel Bandwidth(Mhz)

BerjayaTimesSquare 3Dec08 Ch49 8000

UsjSummit 3Dec08 Ch49 8000

UPMTower(Ch49) 3Dec08 Ch49 8000

TropicanaGolf&CountryResort 3Dec08 Ch49 8000

GoldcourseHotel(Ch49) 3Dec08 Ch49 8000

CasaVista(Ch49) 3Dec08 Ch49 8000

BukitGasing(Ch49) 3Dec08 Ch49 8000

BukitLanjan-G1519(Ch49) 3Dec08 Ch49 8000

SriDamansara(Ch49) 3Dec08 Ch49 8000 Event Duration Location

FormulaOne 21–23Mac2008Sepang International Circuit,

Sepang, SelangorGTJapan 20–22Jun2008

MotoGP 17–19Oct2008

A1GP 21–23Nov2008

080 081



Field Strength Measurement ActivitySKMM and particularly the broadcast unit joined two field strength measurementactivitieswithtwolicenceesnamelyRimakmurSdnBhd(SuriaFM)andBFMMediaSdn Bhd. Both of these measurement activities were performed together with Telekom MalaysiaBerhadaswell.Themeasurementswereexecutedtogetthesignalstrengthvaluesatafewtestpointswithinthecoverageareas.ThisistoanalyseorjustifyanypossibleinterferenceissuesthatmightoccurduetotheFMtransmissions.

ThefieldstrengthmeasurementworkwithRimakmurSdnBhd (Suria FM)wasperformedon4August2008atsevenlocations,SeriPerdanaPutrajaya,BalaiPolisSepang,SekMenKebSgPelek,CostaRicaPortDickson,HospitalSeremban,MantinandTMNilai.ThisactivitywasdoneannuallybyTelekomMalaysiaBerhadfor Rimakmur Sdn Bhd and SKMM was involved to verify the signal strengthmeasurements captured. The measurements were taken based on the signal strength receivedfromGunungUluKali,GunungLedangandGunungTelapakBurok.

SKMM also joined the field strength measurement work with BFM Media SdnBhdon12November2008atsixlocationsnamelyPantaiNS,Semenyih,DataranMerdeka,BukitPetaling(IstanaNegara),MasjidAl-Bukhari(JalanLokeYew)andPusatBandarDamansara.Theworkwasactuallyare-measurementconditionthatSKMMput toBFMMediaSdnBhddue tounsatisfactorysignalstrength resultsgiventoSKMMintheirtrialFMradiotransmissionreport.Foreachlocation,thesignalstrengthwasmeasuredbasedonthefrequencygiventoBFMMediaSdnBhdaswellasfortheadjacentchannels(±200kHzseparation).

AA Radio Inspection SKMMconducted frequency inspectionandsiteverifications. Inorder toensurethat AA holders comply with the assignment given to them, inspections at their apparatus sites were conducted periodically.

For2008,SKMMperformedsiteverificationworkinsixregions/areas.Atotalof1,638apparatushavebeenverifiedin2008asoutlinedbelow:

Table17:NumberofApparatusVerified

Table 18 below shows the comparison of non-compliances committed by majoroperators,duringtheAAauditworksthatwerecarriedout insixregions/areasforyear2008.

Table18:NumberofApparatusVerified

Table19belowshowsthatthehighestnumberofAAsverifiedarefromfixedserviceat1,084followedbylandfixedat515andbroadcastat39AAs.

Region Total No. of Inspected Stationsin2007

Total No. of InspectedStationsin2008

Sabah 139 374

Central 62 273

Southern 100 433

Northern 80 162

Sarawak 25 213

Eastern 70 183

Total 476 1,638

Area Region Fixed LandFixed Broadcast No.ofAAVerified No. of Compliance AA No. of Non Compliance AA NonCompliance%

Sepang&PD 171 102 0 273 232 41 15.0

Sabah 266 102 6 374 345 29 7.8

Bintulu 132 81 0 213 193 20 9.4

Terengganu 120 59 4 183 149 34 18.6

Johor 299 131 3 433 376 57 13.2

Perak 96 40 26 162 145 17 10.5

Total 1,084 515 39 1,638 1,440 198 12.1

Table19:AASiteVerificationSummarisedfor2008

In2008,DiGiTelecommunicationsSdnBhdwas identifiedashaving thehighestnon-compliancespercentage,(35.5%)comparedtoothermajoroperatorsforwhichthepercentageofnon-complianceswaslessthan5%.

As a result of our inspection, applications by telcos increased tremendously.

Study VisitsIn2008,threestudyvisitswereconductedinordertoincreaseknowledgeandskillsin relevant technologies. The study visits conducted were: •DigitalRadioMondiale(DRM)atStesenPemancarRTMKajang(LuarNegeri);•AeromobiletrialdemonstrationbyDiGiTelecommunicationsSdnBhd•ShipstationvisitatBintuluPort.

NASMOC and Spectrum Engineeringand Interference ResolutionSpectrum MonitoringSpectrumoccupancymeasurementwasperformedatallNASMOCstationson29July,27Septemberand20December2008.Spectrumoccupancybandsare:• Aeronautical108to137MHz• Privatenetwork138to139.4MHzand142.6to144MHz• Amateur144to148MHz• Maritime156to157.5MHzand160.6to162MHz• Privatenetwork443to444MHzand488to449MHz• Trunkradio806to821MHzand851to866MHz• WiMAX2300to2400MHz• WiMAX2504to2688MHz

Fieldstrengthmeasurementswereperformedweekly forallFMradiosandTVtransmittersatallNASMOCstationsstarting30July2008.

Spectrum InterferenceSpectrumEngineeringandInterferenceResolution(SEIR)Department3received19interferencecomplaintsinQ3and39complaintsinQ4of2008.Sixcomplaintsarestillpending for resolutions.

Status of pending complaints:

Detailedinterferencecomplaintsareavailableathttp://aduanadmin.skmm.gov.my/

Spectrum Co-ordinationInternational Technical Co-ordinationThe International Technical Co-ordination’s (ITC) activities involve co-ordinatingassignmentsofradiofrequencyspectrumonspacesatellitesystemsandterrestrialsystemswithforeignauthoritiesandtheInternationalTelecommunicationUnion(ITU).TheseactivitiescomplywithprovisionsintheRadioRegulations(RR)ofITU,whichistheinternationalregulationthatregulatesuseoffrequenciesacrosstheworld.

TheITCfocusesonmanagingtheco-ordinationoftheMalaysianspacesatellitenetworksundertheMEASATserieswithpriorityoncompletionofco-ordinationforMEASATfilingsat5.7Eand46E,inlinewithMEASAT’slaunchplans.

Space Satellite Systems: Requests for Co-ordination Published by ITU International Weekly Circular300 responses to Requests for Co-ordination for space satellite systemspublishedintheITUInternationalWeeklyCircularwereprocessedduring

Telco Total AA Verified

No. of Compliance AA

No. of Non Compliance AA

%ofNonCompliance

DiGi 338 218 120 35.5

Celcom 462 443 19 4.1

Telekom 303 296 7 2.3

Maxis 403 399 4 1.0

Status Quantity

Investigation 3

WaitinginvestigationreportfromNRO 2

WaitingactionfromRTM 1

082 083



2008andshownbelow:

Table1:RequestsforCo-ordination

These responses were communicated to the countries concerned and thereafter, co-ordination was carried out on a bilateral basis to reach an agreement thatensuredtheconcernedsatellitenetworkscouldco-existwithoutcausingharmfulinterference to one another.

Intersystem Satellite Co-ordination MeetingsTheIntersystemSatelliteNetworksCo-ordination(ISNC)meetingswerescheduledto resolve outstanding issues on harmful interference between affected satellite networksbelonging toothercountriesand theMEASATSatellitenetworks.Sixmeetingswereplannedfor2008withKorea,UnitedArabEmirates,AustraliaandUnitedKingdom.Co-ordinationwasalsocarriedoutthroughcorrespondencewithSaudi Arabia and China.

Detailed co-ordination was carried out for each of the frequency assignmentsof the affected satellite networks. Upon co-ordination completion, ITU will benotifiedbybothpartiesandtheprocessofregistrationattheMasterInternationalFrequencyRegisterwillfollowthereafter.

Detailsofthemeetingsheldin2008areshownbelow:

Table2:MeetingsConductedandParticipated

Filings for Frequency Assignments Submitted to ITU for Government andMEASAT Satellite NetworksITC processed and submitted 25 filings of MEASAT satellite networks and 21registrationsoffrequenciesforearthstationstoITUin2008.

Totalfilingsprocessedandsubmittedfor2008:

Table3:FilingsProcessed

Registration Data at ITU forMaritime Mobile Service Identity (MMSI)The Maritime Mobile Access and Retrieval System is an online informationsystem with a ship station database and accessible to the maritime community. The system is primarily intended to support the Global Maritime Distress andSafetySystem(GMDSS). Itusedto identifyships indistressbesidesprovidingpertinent vessel information.

MMSI is a nine-digit number assignment system that uniquely identifies amaritimemobileservice.Forshipstations,theMMSIcomprisesofathree-digitCountryofRegistrationidentifier(MaritimeidentificationDigitsorMID)followedbyasix-digitshipidentity.TheITUhasallocatedoneMIDtoeachcountryandMalaysia‘sMIDis533.

ITCsubmitted213MMSInumbersbelongingtoMalaysianregisteredvesselsforregistrationin2008.

Table4:RegisteredMMSItoITU

Thedatabasecanbeaccessedthroughadedicateddial-upsystemanditisalsoaccessiblefromtheITUwebsite(www.itu.int).

Border Technical Co-ordination Border Co-ordination ensures harmonised use of spectrum at border areasby efficiently co-ordinating the frequency spectrum amongst neighbouringcountries. This is carried out in accordance with relevant national regulations and international conventions and regulations.

These meetings discuss frequency related matters, policy and regulatoryupdatesaswellasotherpertinentareastostrengthenregionalco-operationand relationship amongst the three countries. In addition, the nations share learning gained during implementation of new technologies within respective countries.

SKMMisamemberoffourtechnicalborderco-ordinationcommittees:1) FrequencyAssignmentandCo-ordinationSingapore,MalaysiaandBrunei

(FACSMAB);2) JointTechnicalCommitteebetweenMalaysia–Thailand(JTC);3) JointCommitteeonCommunicationsbetweenMalaysia–Indonesia(JCC);and4) TrilateralCo-ordinationMeetingamongIndonesia,MalaysiaandSingapore(Trilat).

These committees co-ordinate frequency registrations for stations along thedesignatedareas,resolvereportedinterferencecases,carryoutfrequencyplanningfor future services and harmonise existing band plans.

SKMMensuresthatallMalaysia’sco-ordinatedfrequenciesattheabovecommitteemeetings are notified to ITU’s Master International Frequency Register (MIFR).Thesefrequencieswillthenbeprotectedshouldtherebeinterferencefromotherusers from neighbouring countries

1. Frequency Assignment and Co-ordination Singapore, Malaysia and Brunei (FACSMAB) a. FACSMAB is a monthly co-ordination meeting. For 2008, 12 FACSMAB

meetingswereheld.Thesemeetingsdiscussedfrequency-relatedmatters,policy and regulatory updates and other pertinent areas to strengthen regionalco-operationandrelationshipwithinthethreecountries.Inaddition,the member countries will share the knowledge on the implementation of new technology.

b. 55MalaysianfrequencieswereregisteredatFACSMABin2008.

Summaryofmeetingsheldisshownabove,includingtheReviewMeeting.c. ThefollowingsubjectswereaddressedbyFACSMABin2008: • MobileCommunicationsOnboardAircraft(MCA) • Reviewonthe2300MHzand2500MHzBandPlans • InterferenceResolutionandSharingin880–890MHzBand(EGSM) • DigitalWirelessMicrophones • FACSMABWebPortald. ThefollowingitemshavebeenidentifiedforfutureFACSMABworkitemsfor

thefirsthalfof2009: • IMTin450–470MHzband • IntelligentTransportSystem(ITS)inthe5.9GHzband • L-BandSpectrumUsageattheBorderAreas • ElectronicNewsGathering(ENG) • AmateurRadioin5MHzband(Secondary) • UnmannedAerialVehicle(UAV)e. FACSMABiscurrentlyworkingoutthedigitalmigrationplanforterrestrial

television so as to align the operating parameters (network synchronisation, uplink and downlink transmit ratio) for the broadcasting band within thecommon border areas. Harmonisation of other frequency bands to catertowards the introduction of new radio services are also being worked out for the border areas.

f. TheupdatedFACSMABdatabase (asofDecember2008)wassuccessfullyuploadedinCitrixtoallowaccessandsharingbetweenRAMDusers.

g. AFACSMABWebPortalprojectwilldeveloptheonlineportalformembersto disseminate and share information. This effort stands to increase public awarenessofFACSMAB’srolesandworkactivities.TheportalistargetedforQ4of2009.

2. Joint Technical Committee (JTC) on Co-ordination and Assignment of Frequencies along Malaysia – Thailand Common Border Meetinga. JTCmeetstwiceyearly.The15thJTCMeetingwassuccessfullyheldfrom22

to24December2008,hostedbySKMMinKualaLumpur.b. JTC deliberated on policy and regulatory updates, frequency related

matters,interferenceissuesaswellasothersignificantareastostrengthenthe relationship and regional cooperation between the two countries. In addition, both countries shared information on the implementation of new and immerging technology within their respective countries.

Jan-Dec2008 Total2008 2008Target

No. of networks processed 300 200

No. Date(2008) Country Venue

1. 16-20Jun Korea Korea

2. 7-10Jul UnitedArabEmirates AbuDhabi

3. 17-21Nov UnitedKingdom London

4. 1-5Dec Australia Melbourne

SubmittedFilingstoITU Total2008 2008Target

MEASATSatelliteNetworks 25 11

Earth Stations 21 21

RegisteredMMSItoITU Total2008 2008Target

TOTAL 213 200

Meeting Venue DateFrequencyRegistrations

Malaysia Singapore Brunei

794 Singapore 25Jan08 10 - 5

795 Virtual 21Feb08 - 1 14

796 Brunei 17Mar08 - 3 16

797 Malaysia 17Apr08 - - -

798 Virtual 26May08 7 - 4

799 Singapore 19Jun08 - 3 2

800 Malaysia 31Jul08 1 1 2

801 Brunei 21Aug08 1 3 1

802 Virtual 25Sep08 29 6 -

803 Virtual 23Oct08 - - -

804 Malaysia 27Nov08 6 - 6

805 Singapore 16Dec08 1 7 11

Sub total 55 24 61

Grandtotal 140

084 085



c. JTC had to defer issues pertaining to Broadcasting specifically related tonewbandallocationforbandI,II,IIIandVtobeutilisedforDigitalTerrestrialTV(DTT)untiltheformationofThailand’sNationalBroadcastingCommittee(NBC)in2009.

d. ThenextJTCmeeting(JTC16)isscheduledtobeheldinThailandinMay2009.

3. Joint Committee on Communications between Malaysia – Indonesia (JCC)a. JCCconvenesonceayear.TheSixthJCCMeetingwassuccessfullyheld

from12to14August2008,hostedbySKMMinLangkawi,Kedah.b. JCC deliberated on policy and regulatory updates, frequency related

matters,interferenceissuesaswellasothersignificantareastostrengthenthe relationship and regional co-operation between the two countries. Inaddition, both countries shared knowledge on the implementation of new and emerging technology within their respective countries.

c. Amongst issues that required immediate attention from both regulatoryauthoritieswereontheInterferenceResolutionandSharinginBand880-890 MHz between EGSM and CDMA2000 systems. A Special TechnicalSubCommittee(STSC)wasestablishedtolookintothisissueanditwillbediscussedatthenextTrilateralCo-ordinationMeetingbetweenIndonesia-Malaysia-Singapore.

d. Prior to the 6th JCC Meeting, four joint measurements (between SKMMandDGPostel)onFMradioandTVbroadcastchannelswerecarriedoutinPenang,Melaka,PekanBaru(INS)andMedan(INS)commonborderareas.Thejointmeasurementsschedulefor2008isshowninthetablebelow:

Table5:JointMeasurementConductedandParticipated

e. ThenextJCCmeeting(5thJCC)willbeheldinIndonesiainQ3of2009.

4. Trilateral Co-ordination Meeting between Indonesia, Malaysia and Singapore (Trilat).a. Trilatconvenesonceayear.TheFourthTrilatMeetingwassuccessfullyheld

from30to31October2008,hostedbySKMMinKotaKinabalu,Sabah.b. Trilat is the platform for the regulatory bodies of Indonesia, Malaysia

and Singapore to discuss on frequency-related matters as well as theimplementation of new technologies which may not be discussed during

bilateral meeting but concern all three parties. c. The outcome of the STSC meeting was discussed in this meeting and it was

decidedthataSpecialTrilateralCo-ordinationMeetingbeconvenedtoseeka common agreement in solving the interference issue experienced by the EGSMfromtheCDMA2000system.

d. It was agreed that future Trilat meetings be increased to twice a year and this decision had been approved by the management.

e. ThenextTrilatMeeting(FifthTrilat)willbeheldinIndonesiainQ2of2009.With the need to resolve interference issue experience by Malaysian EGSMoperator from the Indonesia CDMA operator, two ad-hoc meetings wereconducted by ITC department:1) Special Trilateral Co-ordination Meeting between Indonesia, Malaysia and

Singapore(SpecialTrilat).2) SpecialTechnicalSub-Committee(STSC)MeetingonInterferenceResolutionand

SharinginBand880–890MHz.

5. Special Trilateral Co-ordination Meeting between Indonesia, Malaysia and Singapore (Special Trilat)a. TheSpecialTrilatMeetingwasheldatiDAHQ,SuntecTower3,Singapore

from17to18December2008.b. TheSpecialTrilatwasconvenedtospecificallydiscusstheinterferenceand

sharingissuebetweenCDMA2000systemsinBatam/BintanareaandEGSMin Singapore and South Johor.

c. Priortothismeeting,aJointMeasurementactivitybetweenPT.Mobile8andMaxiswasconductedinSouthernJohorfrom15to16December2008.This helped all interested parties in analysing the level of interference from CDMAtransmissioninBatam/BintanareareceivedbyEGSMbasestationin Southern Johor.

d. TheMeetingcouldnotconcludetheinterferenceandsharingissue,thusitwillbefurtherdiscussedinthenextTrilateralCo-ordinationMeetingscheduletobeheldinQ2of2009inIndonesia.

6. Special Technical Sub-Committee (STSC) Meeting on Interference Resolution and Sharing in Band 880 – 890 MHz.a. TheFirstMeetingoftheSTSCwasheldatSKMMHQ,Cyberjayafrom9to10

September2008.b. The STSC was formed during the Sixth JCC Meeting in Langkawi. It was

attended by the regulatory authorities and cellular operators from Indonesia, MalaysiaandSingapore.

c. Members of STSC have to unanimously agree on the proposed bandpartitioning which is seen as the way forward in solving this issue.

d. The outcome of STSC Meeting was tabled at the Trilateral Co-ordinationMeetinginKotaKinabalulaterthatyear.

Notification of Frequency Assignments Submitted to ITU for Malaysia’s Terrestrial Stations Along Border AreasITC submitted 2,620 notifications for terrestrial frequency assignments to ITUfor registration with Master International Frequency Register (MIFR) to obtaininternationalrecognitionandprotection,for2008.

NumberingBackgroundThisreportprovidesthedepartment’sactivitiesfor2008involvingthefollowingscope of work:1) NumberingAssignmentandManagement2) NumberingRegulations3) Issues

Numbering Planning and ManagementToensureefficientusage,managementofnumbers, facilitatenewservicesandnew technological development, the following activities were carried out during the year in review:a. The Way Forward for Mobile Number Expansion To ensure reasonable capacity of mobile numbers be reserved for potential new

services, markets and technological development, SKMM recommended toincrease the existing mobile numbers capacity. The new format will comprise a three-digitprefixandeight-digitsubscribernumberor3+8numberingscheme.

Toundertakethismigrationprocess,SKMMworkedwithindustrypartnerstoestablishaworkinggroup (WG)undertheConsultativeGrouponNumberingorCGON.TheWGhandledtheawareness,consumerandtechnical,consumermatters to ensure smooth progress and least service interruption.

TheCGONWorkingGroupwasestablishedinMarch2008andmeetingsareconducted monthly.

CGON will establish the migration framework document on the ImpactAssessmentontheImplementationof3+8MobileNumberingasguidanceforallrelatedpartiesandthisframeworkwillbepublishedintheSKMMwebsitefor public knowledge. The contents of the migration framework document will besharedwiththeindustryduringtheCGONworkinggroupmeetingandtheframeworkwillbepublishedonQ4of2009.

b. Prefixes for New 3G Players SKMMdecidedthatnew3Gplayersi.e.DiGiTelecommunicationsSdnBhdand U-MobileSdnBhd(formerlyknownasMiTVCorporationSdnBhd)willhavethe

same numbering format as the existing mobile service providers, in accordance withtheNEAP.

DiGiTelecommunicationsSdnBhdandU-MobileSdnBhdhavebeenassigned010and018prefixesrespectively.Thetotalnumberofassignmentsisasfollows:

Table1:NewnumberassignmentforDiGi(prefix010)andU-mobile(Prefix018)

Theassignmentofthenumbersundertheseprefixeswasnotexclusivetothenew3Gplayerssoastoensureefficientuseofthenumbers.

No. Date(2008) Area

1. 5-7May Penang

2. 3-5Jun PekanBaru

3. 23-25Jun Melaka

4. 21-22Jul Medan

DiGiTelecommunicationsSdnBhd U-MobileSdnBhd

2000000–29999993600000–39999994600000–46999995600000–56999996600000–66999997600000–76999998200000–82999998800000–88999999000000–9899999

2000000–29999993500000–39999994000000–40999994600000–47499995700000–57999996600000–66999997600000–76999997700000–77999997800000–79499998700000–87499999000000–9899999

Total : 3 million Total:3.25million

RegisteredMIFRtoITU Total2008 2008Target

TOTAL 2,620 200

086 087



c. MVNO for Cellular Services For2008,thereweretwonewentrieswithinthecellularservicemarket.XOX

SdnBhdandTuneTalkSdnBhdarecategorisedunderthickMVNOandhavebeenassignedthefollowingprefixesandmobilenumberblocks:

Table2:AssignmentMVNOPrefixandMobileNumbers

d. Prefix 014Y Forthefirsthalfof2008,LCMapprovedtheassignmentofadditionalmobile

numbers to DiGi, Celcom and Maxis carrying the prefix of 014 ranges. Thenumbers are as follows:

Table3:Prefix014YAssignment

Theassignmentofmobilenumberswithprefix014-XXXXXXXbySKMMwhichbeganin2006wastocaterfortheshortageofmobilenumbersexperiencedbythe mobile service providers.

e. New Numbering Prefix for BWA (Broadband Wireless Access) Tofacilitatenewmarketsandtechnologicaldevelopment,SKMMopenednew

numbering prefixes for Broadband Wireless Access services for BroadbandNetworkOperatorservicesusing4+7numberingschemeasshownbelow:

Table4:BWATelephonyAllocation

AsapprovedandinstructedbyLCM,all2.3GHzandotherBWAplayerswillbeassignedwithprefix0158asindicatedintheNEAP.

f. Other Numbering Assignments Thetablebelowoutlinesalltheassignmentsfornumberingin2008.

Table5:NumberingAssignmentfor2008

All assignments in the table except PSTN were categorised under specialassignmentandthereforewererequiredtoobtainapprovalfromtheLCMthusdeliberationtotheLCMwererequired.

g. Numbering Audit TheauditexercisemainlyverifiestheutilisationofnumbersassignedtoMSP

forefficientusageandinanorganisedmanner.

Any application of mobile numbers from the mobile service providers would havetogothroughtheauditprocesstoensuretheapplication’svalidity.SKMMwillensuretheexistingassignednumbersactivationtobeat least70%fortheserviceproviderstoentitlefornewblocksofnumbersasspecifiedintheNumberingandElectronicAddressingPlan.ThisisalsotoremindtheindustrythatSKMMwillscrutiniseallnumberingapplicationsandperiodicallymonitorthe utilisation rate.

PrefixesMobileService

Providers/MVNOTotal Numbers

010-3000000to010-3499999

XOXSdnBhd 500K

010-5000000to010-5499999

Tune Talk Sdn Bhd 500K

Prefixes014YMobileService


014-9XXXXXX DiGi 1million

014-5XXXXXX Celcom 1million

014-7XXXXXX Maxis 1million

Prefixes015YMobileService


0158-820XXXX Asiaspace Sdn Bhd 10Thousands

0158-850XXXX IPMobilitySdnBhd 10Thousands

0158-850XXXX IzzinetSdnBhd 10Thousands

Numbering Type Numbering Amount Licencees Total

InternationalSignalingPointCode

1 TT dotCom31 Tune Talk

1 DiGi

Independent Short Code

7 TM

161 DiGi

8 Celcom

Special Service Number

1 TMB

31 Maxis

1 PacketOne

PublicSwitchTelephone Network (PSTN)

52 TM

108

14 DiGi

16 Maxis

7 TT dotCom

19 PacketOne

Audit On the Prefix-011 Using for ATUR 450 ThetotalsubscribersforATURserviceinSabahandSarawakhavedecreased

in2008.Thiswasdue to themigration toCDMAand theoption to chooseanother network available within their areas.

BelowisthelatestsubscriberinformationforSabahandSarawak,forthefirsteightmonthsof2008.

Table6:011PrefixSubscriberinSabahandSarawak

SKMM will audit the progress from time to time to ensure the smoothmigrationofexistingsubscriberstonewCDMA450and800beforeclosingdowntheATUR450whichusestheanaloguesystem.

Audit On the Prefix-010 Using for Mobile Cellular Service by DiGi InNovember2008,SKMMcarriedoutacoverageaudittestontheDiGi3G’s

Network at Subang Jaya (nearby Carrefour) and the Subang Hi-tech areas.Thepurposeofthecoveragetestwastoensurethattheprefix010assignedto them was working successfully.

The test was carried out as follows:• VoiceCall:On-nettestandinter-nettest.• VideoCall:On-netandinter-nettest.• Internetsurfing.

The above tests were successfully completed without any interruption to the service and network.

Audit on XOX Com and Tune Talk for Prefix 010 Toensuretheprefixandthemobilenumbersassignedwillbeutilised,SKMM

organised an audit on the network availability.

As assured by these service providers, they will start to roll out the services in early2009andtheirnetworkwasstillunderimplementation.

Audit on Mobile Number SKMMcarriedoutanauditexercise for theutilisationofmobilenumber in

January and June 2008 for DiGi and U-Mobile, respectively. Besides staticpurposethenumberingauditwascarriedoutduetorequestfortheadditionalmobilenumberstocaterbusinessdemandbyDiGiandUMobile.

InNovember2008,SKMMrequestedreportsfromallmobileserviceprovidersonthe utilisation of mobile numbers for the purpose of industry mobile numbering development.Thiswastoensurethelatesttake-upratesofmobilenumberssothat it can support the business demand within the next two years.

BelowisthelatestutilisationofmobilenumbersasofNovember2008.

Table7:TheUtilisationReportontheMobileServiceProviders-Cellular

Graph1:TotalofMobileNumbers

Region Utilised Available Total

Central 14,610,035 5,989,965 20,600,000

Northern 7,281,361 3,378,639 10,660,000

Southern 4,362,514 2,087,486 6,450,000

Eastern 3,837,437 1,892,563 5,730,000

Sabah 2,728,084 1,782,916 4,511,000

Sarawak 2,451,924 1,847,076 4,299,000

GrandTotal 35,271,355 16,978,645 52,250,000

MonthTotal Subscribers

Sarawak Sabah

Jan 2,173 600

Feb 2,144 592

Mac 2,109 586

Apr 2,066 579

May 2,033 573

Jun 2,012 567

Jul 1,969 555

Aug 1,943 551

60,000,00052,250,000

11,928,311

35,271,355

50,000,000

40,000,000

30,000,000

20,000,000

10,000,000

0

Utilised Available Total

GrandTotal

088 089



Graph2:UtilisationofMobileNumber–byRegion

Table8:2008AuditSummary

h) Events Briefing on Numbering Planning Development SKMM conducted a briefing on 3+8 mobile number expansion, numbering

regulationandNumberingElectronic andAddressingPlan (NEAP) to severalSKMMregionalofficesandtogetherwithindustryplayersasspecifiedbelow:

Table9:Briefingon3+8MobileNumberExpansion ThisactivitywaspartoftheawarenesscampaignbySKMM.Itensuredthat

SKMMandindustryplayersatregionalofficeswereupdatedonbothongoingand future developments involving expansion of mobile numbering.

Seminar On20and21May2008,SKMMparticipatedintheNGNandENUMinternational

conferenceheldinKualaLumpurandorganisedbyMYNICBerhad.Theeventwas importanttoSKMMinviewofdirect implicationforNGNand IP-basedapplication services introduction in the country.

For2009,SKMMis looking forward toparticipate in the ITUstudygrouponNGNIP-basednetworkandIPv6development.

i) Amendment to NEAP Following the introduction of MVNO in the industry which will ride on the

cellular network, they have been included in the public cellular service as in theNEAP.TheNEAPAmendmentfor2008isasfollows:• MVNO(CellularService)toPublicCellularService• Additionof3+8mobilenumberstructure

j) Numbering Regulations The Numbering Regulation was developed to impose fees or charges on the

assignmentofnumberstothelicenceessoastoensureefficiencyintheusageof numbers. Currently, the numbers assigned to the licencees are free.

Thefinaldraftof theNumberingRegulation (NR)wassubmitted to theAttorneyGeneral’s office (AG) by KTAK for further study and comments on the NR’scontent.NPDtogetherwithLASDandKTAKarestillwaitingforAG’sfeedback.

20,6

00,0

00

10,6

60,0

00

6,45

0,00

0

5,73

0,00

0

4,51

1,00

0

4,29

9,00

0

14,6

10,0

35

7,28

1,36

1

4,36

2,51

4

3,83

7,43

7

2,72

8,08

4

2,45

1,92

45,98

9,96

5

3,37

8,63

9

2,08

7,48

6

1,89

2,56

3

1,78

2,91

6

1,84

7,07

6

25,000,000

Central Northern Southern Eastern Sabah Sarawak

10,000,000

20,000,000

5,000,000

0

15,000,000

Utilised Available Total

Date Activity

22Jan2008 AuditonDiGi’smobilenumberassignment

9Jun2008 AuditonU-Mobile’smobilenumberassignment

25Aug2008 Auditontheprefix011atSarawakregion

27Aug2008 Auditontheprefix011atSabahregion

11Nov2008 CoverageauditontheDiGi3G’snetworkusingprefix010

Nov2008 Auditbytelco’sreportontheutilisationonmobilenumber

Date Location Activity

23Jun2008 KuchingRegionalOffice Briefingandnumberingaudit

24-25Jun2008 Sandakan,Office Briefingandnumberingaudit

26Jun2008 KotaKinabaluRegionalOffice Briefingandnumberingaudit

18-21Nov2008 SouthernRegionalOffice Briefingandnumberingaudit

Expanding Digital Reach

04

090


As ICT’s progress and reach become more prevalent, so too do the challenges. It is crucial to keep up with the pace, narrowing the gap by protecting and empowering society through good governance, stricter enforcement, better infrastructure support and wider coverage.

092 Nationwide Mobile Coverage: Time 1/Time 2 Projects

093 Quality of Service095 Required Application Service (RAS)095 Rates Monitoring096 SKMM Complaints Bureau097 Consumer Issues099 Prepaid Registration100 Phishing100 Network Security Centre101 Enforcement

092


Nationwide Mobile Coverage: Time 1/Time 2 ProjectsUSP OverviewThe Universal Service Provision (USP) programme provides collective and individual access to basic telephony and Internet services throughout the country. This is because network facility providers, understandably, tend to focus on commercially lucrative areas and this has created a gap between the ‘haves’ in urban areas, and the ‘have-nots’ in the rural areas. Often referred to as the Digital Divide, this imbalance in communications access can have social ramifications if not addressed at the national level.

Consequently, USP targets are divided into underserved areas and underserved groups within the community. The classifications are defined as follows:

1) Underserved Area In relation to broadband access service, it is

defined as any area where the penetration rate for broadband subscribers in Malaysia is below the national broadband penetration rate or where broadband access services are not sufficiently available as may be determined by the Commission. In relation to public cellular services, it is defined as any area with a population density of 80 persons per square kilometre or less, or where public cellular services are not sufficiently available as may be determined by the Commission.

In relation to Public Switched Telephone Network (PSTN) services, it is defined as an area where the PSTN subscribers’ penetration rate is 20% below that of national PSTN penetration or where the PSTN services are not sufficiently available as may be determined by the Commission.

Additionally, SKMM also takes into account the number of households in a locality, the demand or wait list, and existing installed capacities of the network infrastructure optimal network resources.

2) Underserved Group Within the Community A group of people linked by similar characteristics

from a socio-cultural or economic perspective within a served area with no collective and/or individual access.

Therefore, the USP programme is a tool for bridging the Digital Divide by acting as a mechanism for channeling private-sector investment into unprofitable rural areas. The key tenet here is one of “no gain, no loss”. This means that a designated service provider incurs no loss nor makes a profit when implementing this programme. The service provider claims only for expenses incurred, at cost, and SKMM reimburses them based on a detailed claims template.

Time 3 ProgrammeIn 2008, under the direction of YB Minister of Energy, Water and Communications or KTAK to further expand

Coverage Mapping – Malaysia

Legend: T2 border T3 border

cellular coverage nationwide, a new programme known as Time 3 was introduced. The objective of this programme is to increase the national population cellular coverage to 97% by 2010.

The Time 3 programme is targeted at extreme rural areas and villages with a population density of below 80 persons per square kilometre. Key target areas include Felda, Felcra, plantations, Orang Asli settlements, new tourist spots and significant Federal Highways.

The approach taken in implementing Time 3 covered provisioning communication towers for the purpose of Infra Sharing (IS) and Domestic Roaming (DR) in providing the cellular service. Hence, there was cost savings for the service providers; eliminating difficulties in acquiring sites and high local authority fee, whilst ensuring the smooth operation of the project.

The announcement of the programme was made by YB Minister of Energy, Water and Communications during the opening of the USP Technology Symposium in Seremban on 12 June 2008.

093Expanding Digital Reach

Time 3 Implementation PlanTime 3 programme involves building 1,250 towers in two phases. Under Phase 1,799 towers would be erected from July 2008 to December 2009. Out of 799 towers, 250 towers are to be funded by the service providers while the remaining 549 by the USP Fund. Population coverage is expected to increase to 95% with completion of this phase.

Phase 2 requires 451 towers to be built from October 2009 to December 2010. Completion of Phase 2 will see the national population coverage increased by another 3% to achieve the overall Time 3 target of 97%. A distribution of 1,250 tower sites by states are shown in the table below:

Note: Melaka, Perlis, Pulau Pinang, WP Labuan & KL are not included under Time 3 because the population coverage for each state has exceeded 99%.

Time 3 FundingA funding mechanism for the Time 3 programme is through the concept of Private-Public Partnership whereby the cost for the project is shared between SKMM and the service providers. Total funding of RM1.43 billion shall be disbursed from the USP Fund for Phase 1 of Time 3 programme.

The disbursement of the USP Fund to the successful service providers shall be made through an open bidding exercise as stipulated under Regulation 5(1) of the Communications and Multimedia (Universal Service Provision) Regulations 2002. The Request for Proposal (RFP) for this exercise will be issued to eligible

licencees in the first quarter of 2009.

Time 3 ProgressThe construction of the Celco-funded towers throughout the country started in July 2008. As of 31 December 2008, 114 towers were successfully completed, exceeding the target of 100 towers set for completion by end of 2008. The table below summarises the location of the 114 completed towers:

Quality of ServiceQUALITY OF SERVICE FOR BROADBAND ACCESS SERVICE

Mandatory Standards for Quality of ServiceDetermination No. 1 of 2007, Mandatory Standards for Quality of Service for Broadband Access Service is the instrument used to ensure compliance of service providers to minimum standards for broadband access service. It was enforced with effect from 1 January 2008 and consists of 14 standards. Service providers are required to submit their network performance report every six months to SKMM based on the QoS Mandatory Standards.

Compliance of Service Providers to theMandatory Standards for Quality of ServiceBased on the reporting period ending 30 June 2008, six submissions were received. The tables on pages 94 and 95 delineate the performance against the QoS Mandatory Standards:

Time 3 Sites by State

No. State Total

1. Sabah 278

2. Sarawak 257

3. Pahang 243

4. Kelantan 105

5. Terengganu 98

6. Perak 76

7. Johor 74

8. Kedah 47

9. Negeri Sembilan 45

10. Selangor 27

Total 1,250

State Celcom DiGi Maxis Total

Kedah (7) 1 2 0 3

Perak (14) 1 8 - 9

Selangor (1) - 0 - 0

Negeri Sembilan (12) 1 0 - 1

Johor (15) 7 2 - 9

Pahang (36) 6 4 9 19

Terengganu (21) 4 2 2 8

Kelantan (24) 1 0 6 7

Sabah (66) 13 8 18 39

Sarawak (54) 9 0 10 19

Total (250) 43 26 45 114

Table 1: Compliance with Standards on Billing Performance

Table 3: Compliance with Standards on Fulfillment of Installation Orders

Table 4: Compliance with Standards on Service Restoration Performance

Table 2: Compliance with Standards on Billing Performance

Licencees% Complaints of

Bills Issued

% Bill Complaints Resolved Within

15 Bus Days

Telekom Malaysia Berhad 0.29% YES 90.61% YES

Maxis Broadband Sdn Bhd 0.59% YES 92.24% YES

TT dotCom Sdn Bhd 1.21% YES 97.14% YES

Jaring Communications Sdn Bhd 0.00% YES 0.00% 0.00%

DiGi Telecommunications Sdn Bhd Not Reported Not Reported

Optical CommunicationsEngineering Sdn Bhd

Not Reported Not Reported

Licencees% Bill Complaints

Resolved Within 30 Business Days

Number of General Customer

Complaints Per 1000 Lines p.a.

Telekom Malaysia Berhad 99.29% YES 5.05 YES

Maxis Broadband Sdn Bhd 99.14% YES 290.89 YES

TT dotCom Sdn Bhd 100.00% YES 3.14 YES

Jaring Communications Sdn Bhd 0.00% 0.00% 7.32 YES

DiGi Telecommunications Sdn Bhd Not Reported Not Reported


Not Reported Not Reported

LicenceesFulfillment of Installation Orders

% Fulfilled Within 24 Hours (80%) % Fulfilled Within 48 Hours (90%) % Fulfilled Within 7 Days (100%)

Telekom Malaysia Berhad 100.00% YES 100.00% YES 100.00% YES

Maxis Broadband Sdn Bhd 99.82% YES 99.97% YES 100.00% YES

TT dotCom Sdn Bhd 100.00% YES 100.00% YES 100.00% YES

Jaring Communications Sdn Bhd 28.50% NO 34.20% NO 64.25% NO

DiGi Telecommunications Sdn Bhd 100.00% YES 100.00% YES 100.00% YES

Optical Communications Engineering Sdn Bhd 98.00% YES 98.00% YES 98.00% NO

LicenceesService Restoration Performance

% Fulfilled Within 24 Hours (80%) % Fulfilled Within 48 Hours (90%) % Fulfilled Within 7 Days (100%)

Telekom Malaysia Berhad 92.00% YES 96.53% YES 59.56% NO

Maxis Broadband Sdn Bhd 98.20% YES 98.83% YES 51.77% NO

TT dotCom Sdn Bhd 99.60% YES 99.39% YES Not Reported

Jaring Communications Sdn Bhd 42.40% NO 46.51% NO 72.35% NO

DiGi Telecommunications Sdn Bhd 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Optical Communications Engineering Sdn Bhd 92.40% YES 100.00% YES 100.00% YES

094 095


Table 5: Compliance with Standards on Network Performance

Table 6: Compliance with Standards on Network Performance

Required Application Service (RAS)The Required Application Services (RAS) is a set of required applications that a service provider must provide to their consumers. Section 192 of the CMA 1998 states that the list of RAS may include, but not limited to, emergency services, directory assistance services, operator assistance services and services for disabled consumers.

The following instruments have been issued and registered to support the implementation of RAS:1) Ministerial Determination on the list of Required Applications Services

(Determination No. 1 of 2004);2) Ministerial Determination on Required Application Services (Determination

No. 2 of 2005); and3) Ministerial Direction on Required Application Services (Direction No. 2 of 2005).

For an emergency contact, it must be a number which everyone can remember easily. The Government with the co-operation of service providers implemented improvements to the emergency call centre services using an integrated number, 999, to replace three sets of different emergency numbers such as 994 for Fire Brigade and 991 for Civil Defense besides 999 used by Polis Diraja Malaysia and TM emergency services call centres.

In an effort to reduce crank calls*, a Crank Call Reduction Committee was established. The committee is chaired by SKMM and membership comprises fixed and cellular service providers. Amongst the measures implemented to reduce false and crank calls are:1) Broadcast of warning SMS by service providers to all mobile users;2) Issuance of warning letters by SKMM to owners of lines that were used to

make crank calls.

Rates MonitoringCommunications and Multimedia (Rates) Rules 2002The Rates Rules 2002 sets out the prescribed level of rates to be charged for specified applications services. The rules cover the following services and charges:1) Public Switched Telephone Network services – Charges for Local Calls, National

Calls and National Calls through operator assistance2) Public Payphone Service – Charges for Local Calls, National Calls and National

Calls through operator assistance3) Service Charge for operator assistance4) Charge for Internet access service5) Charge for audiotext hosting service6) Rental on exchange line7) Connection fee8) Reconnection fee


*Crank calls, also called false calls, are calls made to an emergency call centre with a purpose other than reporting an emergency. Some of them are made for the purpose of chatting, some are obscene while others are just silent calls.

Licencees% of Packet Loss

(1%)

% of Network Availability (99.99%)




Jaring Communications Sdn Bhd Not Reported 100.00% YES

DiGi Telecommunications Sdn Bhd 0.00% YES 100.00% YES


0.00% YES 99.72% NO

Licencees

% of Numberof Sample With

Network Latency Below 85ms (95%)

% of Numberof Sample With

Bandwidth Utilisation More Than 80% of

Subscribed Level (95%)




Jaring Communications Sdn Bhd Not Reported Not Reported

DiGi Telecommunications Sdn Bhd 100.00% YES 100.00% YES


100.00% YES 100.00% YES

096 097


Rate Control MechanismRate regulations are normally driven by consumer protection and economic reasons. In markets that are characterised by a few players (oligopoly), prices tend to be high and the supply of services and facilities can be controlled easily, resulting in bottlenecks in the upstream or downstream markets or both. As a result, service providers can price their products at prices above what would be set in a competitive market.

Telecommunications is a vital service for most organisations whether engaged in services or manufacturing. Fair and low prices are considered necessary to ensure the competitiveness of economic activities in these sectors. In a globally competitive environment, it is therefore imperative that telecommunications services are competitively priced so that local providers of services and products can compete with those in other countries. The rate control mechanism is normally employed to ensure rates or tariffs are not artificially inflated or do not contain excessive economic rents (price is above the price that would be set in a competitive market) and that prices charged are fair and reflect underlying costs.

Rate Monitoring as at December 20081) Fixed Line Telephone SKMM found that there was compliance with the

specific rates in terms of the line rental (access charge) and the call charges as published in website and customer service centres.

2) Cellular Phone Service SKMM’s monitoring found that there were 21

packages for postpaid mobile and 14 packages for prepaid mobile, offered by the four service providers.

Malaysians can now choose which cellular phone service plan best fit their needs by comparing services and rates. Service providers have provided

Value-Added Services (VAS) such as “active numbers” or “family and friends” for many postpaid and prepaid mobile packages.

Based on SKMM’s monitoring on compliance with Section 197 of the CMA 1998, covering rate setting and the requirement to publish rates, SKMM found that the service providers have made available the rates charged to their customers, through websites, media advertisements, brochures and also through their customer service hotlines.

3) Broadband Internet Access Service Broadband Internet Access, often shortened to

just broadband, is high data rate Internet access typically contrasted with dial-up access over a modem. Broadband service even for wired broadband and wireless broadband is steadily becoming more popular in homes and businesses.

Service providers are now offering packages based on “unlimited time” or “flat rate” models with varying prices. Based on SKMM’s monitoring on compliance with Section 197 of the CMA 1998 on the rate setting and the requirement to publish rates, SKMM found that the service providers have made available the rates charged to their customers through websites, media advertisements, brochure and also through their customer service hotlines.

SKMM Complaints BureauConsumer Complaints Bureau (CCB) Since SKMM set up the Consumer Complaints Bureau (CCB) to act as a focal point to deal with public complaints regarding service providers’ offerings in August 2007, the number of complaints received has steadily increased.

Since early January 2008, CCB commenced the use of the Aduan SKMM online complaint management system to record and update status of complaints and generation reports. The system is also accessible by the regional offices and other departments in SKMM. SKMM provides several channels for consumers to lodge their complaints; a 1800 hotline number, email, letter, fax and even walk-in complaints. In May 2008, the public page of Aduan SKMM complaint system “http://aduan.skmm.gov.my” was opened for online submission of complaints. It has since become one of the main channels for the public to lodge complaints.

Consumer Complaints In 2008, 4,289 complaints were received, this being almost double the 2,147 complaints received in 2007. The increase was due to the promotion of the complaints procedure as well as the launch of new services by service providers, which gave rise to many consumer issues.

Graph 1: Number of Complaints Received by Month for 2008

Table 1: The Types of Complaints Received by SKMM

No.

of C

ompl

aint

s

0

50

150

250

350

450

100

Jan Feb Mac Apr May Jun Jul Aug Sep Oct Nov Dec

200

300

400

500

Months 2008

No. Categories of ComplaintsNo. of

Complaints Received

%

1. Poor service 1,794 41.8

2. Billing charging/dispute 559 13.0

3. SMS scam 425 9.9

4. SMS Mobile Content Services – unsubscribed/promotional SMS, SMS contest 338 7.9

5. No/Poor Service Coverage – cellular, 3G, fixed line/TV transmission 303 7.1

6. Content – website/blog, TV, Radio, SMS, emails 258 6.0

7. Telecommunication Tower/TV Parabola 138 3.2

8. Not under SKMM jurisdiction 110 2.6

9. Miscellaneous 90 2.1

10. Spectrum Interference 87 2.0

11. Unfair practice 68 1.6

12. Postal and Courier 45 1.0

13. Misleading promotion/advertisement 44 1.0

14. Dispute Terms and Conditions 25 0.6

15. Unlicenced operator 5 0.1

Total 4,289

Consumer Issuesa. Poor Broadband Service Customers are generally not satisfied with

the quality of broadband services delivered, particularly the inability of the service providers to deliver the promised speed and quality. The reason for the poor service, particularly 3G and HSDPA service, was mainly due to poor coverage and increase in the number of subscribers resulting in adverse bandwidth sharing. Many complainants also highlighted issues about advertisement content and promotion that claimed speeds of up to 3.6MB and the promise of unlimited service.

To address customer expectations fairly, all broadband service providers are required to clearly state upfront the conditions or factors that can affect the quality of service such as location, distance and direction to communications tower, number of users logged in and the condition of the “customer device”. Service providers have also to state the conditions for “unlimited use” and “fair usage policy” up front and make available their service coverage maps at the point of registration to inform customers of the availability of the service.

As a “Good Consumer Practice”, broadband service providers are now offering a cooling off period i.e. seven days for customers who had subscribed to the service. Customers have the option to try the service and if they are not happy with the service quality they can return the equipment within the cooling off period of seven days.

173152

303 298

355

418396

416 406

457 470445


098 099


b. Billing Problems and Charging The statistics for complaints received on billing

problems and charging are provided in the table below:

Table: Billing Complaints Received

Among the complaints received related to billing and charging are on late calls barring on exceeding the credit limit imposed, high charges of GPRS service, unreasonable charges i.e. late payment fee/reconnection fee, dissatisfaction with the monthly charges for broadband service which did not meet customer’s satisfaction due to the poor performance and coverage of the service, charges for unsolicited SMS, undelivered/late delivery of bill and double charging/billing error.

From our observation, the complaints on poor billing/dispute arose due to factors such as misleading promotions, either through the advertisement or by the service provider’s agent, lack of customer understanding on the nature of the service and charges imposed i.e. 3G/GPRS usage. There were also some cases where payments made were not updated nor reflected in the system resulting in service interruption.

SKMM has received a number of complaints from customers on high charges for mobile data services provided through 3G or GPRS services. These customers have disputed the charges claiming that they had been billed for services that they did not use. However, the usage was found valid based on the finding.

The dispute on excessive charges mostly happens to customers who are using GPRS on pay per use basis. From our observation, the customer’s lack of knowledge about the services or have not been given sufficient information pertaining to the usage of this service may also be one contributory factor to this issue of high or excessive bills.

Suggestions have been made to the affected PCS providers to cap the billing charges for 3G or GPRS usage for their pay per use customers and this capping has been implemented in 2008.

Note: DiGi capped at RM149 since May 2006 Celcom capped at RM250 since November 2007 Maxis capped at RM250 starting from June 2008

c. SMS Scams During 2008, there was an increase of complaints

received regarding SMS scams. Customers claimed to have received SMSes stating that they had won certain amount of money after being randomly selected from millions of users. In order to collect the monies, the victims were required to deposit a certain amount of money as processing fee. Previously, we noticed that the sender had used foreign numbers to send the SMS. Now, there are SMS scams that are being sent using local mobile numbers.

Misuse of the SMS service with intent to cheat is an offence under the Penal Code. SKMM is working closely with the Royal Malaysian Police in

addressing SMS scams and public cellular service providers have also taken action to suspend local mobile numbers that had sent the scam SMS. The Commission through service providers has also undertaken consumer awareness initiatives such as publishing notices in the newspapers. Officers from the Consumer Protection Division also appeared on TV programmes and participated in radio talk shows to increase public awareness on SMS as well as Internet scams.

d. SMS Mobile Content and Services SKMM continued to receive complaints regarding

SMS mobile content services. Types of complaints were mainly related to:

•ReceiptunsolicitedSMS(spam) •ChargesforunsubscribedSMSservice •InabilitytostoporterminatetheSMSservice

However, the number of complaints relating to this service has decreased in 2008, compared to 2007, since the implementation of the preventive system* by the public cellular service providers in 2007.

e. Poor or Lack of Service Coverage Complaints were also received on poor cellular

services such as lack of coverage and dropped calls. The public cellular service providers are continuously undertaking coverage enhancement.

Major Consumer Issue in 2009In addition to the above, the Complaint Bureau handled the following consumer issues:a. Celcom’s 100 Days 100 Cars SMS Contest This was an SMS-based contest organised by

Celcom promising to give away 100 cars in 100 days. The contest raised many consumer issues such as the presence of elements of gambling in the contest, subscriber credit limit being exceeded, misleading promotion and lack of clarity in the selection of winners. Based on the cumulative complaints, Celcom

agreed to stop the contest and co-operated in resolving the consumer issues that arose.

b. ASTRO Smart Card Replacement In 2008, Astro undertook an exercise to replace

the ‘smartcard’ for its 2.4 million subscribers nationwide. The complaints received pertaining to this exercise ranged from disruption of service, charges imposed for technical assistance and poor customer care service in addressing complaints. Numerous meetings were held and Astro responded positively by improving its call centre services, established a “barker channel” and resolved specific complaints that were received.

c. Minimum Contract Period Complaints were received from many subscribers

on the payment of penalties for the early termination of “service contract” between service provider and subscribers for specific service such as 3G/HSDPA. These arose particularly for broadband or HSDPA subscription where consumers had terminated the service due to unsatisfactory quality. Service providers agreed to waive the penalty in situations where the complaint was service or product-related. In other cases, the penalty was capped at RM200 on condition that the equipment given out was returned in good working condition.

d. Fair Usage Policy Another issue highlighted by the customer was

on the “Fair Usage Policy” introduced by some of broadband service providers such as Maxis and Celcom, that set a limit to the total bandwidth available. Subscribers who had utilised bandwidth beyond the limits imposed were subject to ‘throttling’, whereby the service was still available but at lower speeds.

As throttling is a new issue, SKMM will further study

the matter. In the meantime, the service providers are

required to clearly state this fair usage policy in their terms and conditions and promotional material.

Adoption of Good Consumer PracticesFrom our analysis of the complaints and issues highlighted, we identified several actions to help improve consumer protection in the industry. They are: a) Have a cooling-off period for services sold whereby

a customer who does not receive satisfactory service can terminate the contract without any penalty.

b) Adopting a policy of “customer satisfaction or money-back guarantee”.

c) Compensating customers for services not delivered as promised or for poor services rendered.

d) Provide a product kit to consumers to ensure they are well versed with the features and limitation of product offered.

e) Preparation of code of conduct for dealers and agents.f) Customer to be given the choice to opt in for new

services instead of automatic/mandatory migration.

The implementation of Good Consumer Practice by the industry will improve general consumer confidence, protect consumer interest and enhance the image and perception of the service providers in the eyes of consumers.

Prepaid RegistrationBackgroundIn 2005, the Malaysian Government directed every single prepaid mobile service user in the country to be registered. The main reason for this directive was aimed at curbing misuse of prepaid public cellular services and at the same time address security concerns.

All users are required to register as long as they are subscribers of a Malaysian prepaid public cellular service.

Current StatusAs at Q4 of 2008, there were 27,125,000 cellular phone subscriptions in Malaysia. Of this total, 21,548,000 subscriptions are prepaid public cellular services and the balance 5,577,000 are postpaid public cellular services.

As more than 80% of the mobile phone users in the country are prepaid users, SKMM has, through its monitoring and enforcement activities, ensured that all necessary precautions are taken and relevant processes are put in place for the registration of prepaid users, especially in relation to the recording of subscribers’ information. This is to ensure that the service providers accurately record subscribers’ information based on the information contained in MyKad, passport and other valid identification documents.

In addition to the verification carried out by service providers, data that are recorded manually are put through a second round of verification by SKMM with the assistance of the National Registration Department (NRD).

To date, 7.1 million users’ data have been verified with the National Registration Department by SKMM and of this, less than 3% were returned by NRD as unmatched. The unmatched data may have been due to errors in the spelling of the name or mismatched identification number. These are then returned to the service providers for a third round of verification and for those that cannot be rectified, their numbers will be terminated.

Monitoring and Enforcement Action by SKMMSKMM has conducted numerous ‘spot checks’ to ensure that the service providers and their authorised representatives comply with the proper registration process. In 2008, 30 compounds were issued against service providers for breach of the Prepaid Registration

Type of Billing ComplaintsNo. of

Complaints Received

%

Bill and Charging 559 50

Billing Problem/Dispute 379 34

Rebate/Refund 58 5

Others 42 4

Late Payment Charges/Reconnection Fee

32 3

Unreasonable Charges 29 3

No/Late Delivery of Bill 19 2

Total 1,118


*Preventive system: mechanism implemented by service providers to automate compliance with Guideline on the Provision of Mobile Content Service.

The future phases of the SNSC project will include other ISPs, other critical information infrastructures and existing cyber security agencies. The SNSC will conduct periodic cyber exercises with external entities to continuously revise its policies and ensure the readiness of our nation’s networks in dealing with cyber threats.

EnforcementSKMM’s constant monitoring has contributed towards

the increase of more effective enforcement action. This helps ensure the rights of the licencees, investors, consumers and the public are always protected and the confidence in the communications and multimedia industry are maintained at all times.

InvestigationIn 2008, 403 cases were investigated by SKMM for various offences under the CMA 1998, three cases under PSA 1991 and two cases under DSA 1997.

The cases investigated were as follows:

No. Cases LawNo. ofCases

1. Sending offensive, obscene, indecent, menacing or false short messaging services (SMS)

Section 233 (1) (A) CMA 1998 44

2. Sending/Posting offensive, obscene, indecent, menacing emails/websites or blogs

Section 211/233 (1) (A) CMA 1998 56

3. Making crank calls to 999 emergency number Section 233 (1) (B) CMA 1998 44

4. Breach of Licence Condition Section 242 CMA 1998 55

5. Use apparatus without apparatus assignment Reg. 20, C&M (Spectrum) Regulation 1998

12

6. Possession of non-standard equipment Section 239 CMA 1998 52

7. Providing network services and application services without licence

Section 126 CMA 1998 12

8. Failure to contribute to USP Fund Reg. 27, C&M (USP) Regulation 7

9. Failure to submit Return ofNet Revenue (USP)

Reg. 29, C&M (USP) Regulation 95

10. Failure to submit Audited Account Reg. 33A, C&M (USP) Regulation 12

11. Non-compliance to a Direction of the Commission


12. Failure to deal reasonably with consumer complaints


13. Failure to take reasonable measures to check for proper identification

Section 6(1) DSA 1997 2

14. Providing courier services without licence Section 25 PSA 1991 3

Total Cases Investigated 408

100 101


Guidelines by their authorised representatives. Apart from enforcement action, more than 13 compliance seminars were conducted with the service providers nationwide by SKMM’s Enforcement Department to raise awareness amongst their authorised representatives with regards to the registration process.

PhishingPhishing cases have increased in 2008 – from only 30 cases recorded in the first half of 2008, to 193 cases in the second half.

Despite efforts taken by SKMM together with industry stakeholders such as the banks and the ISPs to create awareness among Malaysian online banking consumers, many consumers still fall prey to Phishing attempts.

In 2009, SKMM will undertake an initiative to create further awareness among the online banking consumers by setting up an Anti-Phishing web portal as an online resource for consumers to check if they encounter Phishing attempts. The site would also be another avenue for consumers to report Phishing attempts. This

initiative will be co-ordinated with the Malaysian banks and ISPs. Consumers are encouraged to be aware and report any incidence so that effective action can be taken against Phishing attempts.

To create awareness on the dangers posed by the Phishing sites, SKMM through the Consumer Protection Department (CPD), organised an awareness campaign to alert users on the Phishing sites as well as reminding them not to divulge personal identification information in response to Phishing.

Network Security CentreInformation and Network Security The Internet constitutes “key infrastructure”, shifting vital information for consumers, businesses and governments. Almost everything can be done on the Internet with much ease, for instance buying and selling, banking, social networking and many other activities. However, much like the real world, criminal elements do lurk on the Internet. Cyber threats have been on the rise and they come in many forms and disguise, and what’s even more alarming, they are getting more organised. The message is clear that concerted and collective efforts at national, regional and international levels are required to deter such criminal acts that are costly to consumers, businesses and the Government. SKMM has set up a cyber security monitoring centre to increase vigilance over the communications networks.

SKMM Network Security Centre SKMM, in line with the 10th National Policy Objective to ensure reliable and secure network, has taken on the responsibility to create a proactive platform that will be able to disseminate early warnings to its stakeholders, critical network information infrastructure and the public on possible threats through the SKMM Network Security Centre (SNSC) Project.

The SNSC has been established to monitor malicious payloads and cyber attack over Malaysian Internet traffic. Any detection of such threats is followed by advisories to all critical network information infrastructure owners and assistance to mitigate the threats. SKMM has successfully completed the first phase of the SNSC project, involving seven major ISPs. We recognise that ISPs, being the owners of networks in Malaysia, collectively form the Malaysian Internet. They are the heartbeat of the Malaysian Internet as they interconnect the Malaysian public and private networks with the global networks. Hence, ensuring the security and integrity of these networks are essential.

Figure 1: Total Phishing Cases Reported to SKMM

No.

of

Case

s Re

port

ed

0

5

15

25

35

45

10

20

30

40

Months 2008

Jan

0

Feb

0

Mac

0

Apr

2

May

12

Jun

16

Jul

26

Aug

26

Sep

27

Oct

38

Nov

34

Dec

42


102 103


Status of Investigations and Court Case23 offenders were charged in court and 107 were offered compound amounting to RM1,498,600 for committing various offences. The details are as follows:

Of the 408 cases investigated, 188 were non-compliance cases committed by the licencees.The cases were as follows:

No. Type of Offences No. of Cases

1 Breach Of Licence Conditionsi. Non compliance with Mandatory Standard on Quality Service (4 cases)ii. Non compliance with General Consumer Code (4 cases) iii. Non compliance on Prepaid Registration (35 cases)iv. Broadcasting of programmes against moral and culture values (2 cases)vii. Others (10 cases)

55

2 Failure to deal reasonably with consumer complaints 2

3 Failure to submit audited accounts 12

4 Failure to submit RONR 95

5 Failure to contribute to USP Fund 7

6 Non compliance with a Direction of the Commission 12

7 Use apparatus without Apparatus Assignment 5

Total Cases Investigated 188Licencees

Other Offenders

0

250

50

100

150

188200

220

Offenders

Offences by Other Offenders

Sending - Offensive, Obscene, Indecent, Menacing or False SMS (S.233)

Sending/Posting - Offensive, Obscene, Indecent, Menacing Emails/Websites or Blogs (S233 & 211)

Providing Network Services and Application Services without licence

Use Apparatus without Apparatus Assignment

Making Crank Calls to 999 (S.233)

Providing courier services without license

Possession of Non Standard Equipment

Failure to take reasonable measure to check for proper identification

3 2

44

127

0

10

20

30

40

50

60

44

5652

Offences by Licencees

Breach of licence condition

Failure to submit audited accounts

Failure to submit RONR

Failure to contribute to USP Fund

Use Apparatus Assignment without AA

Failure to deal reasonably with consumer complaints

Non compliance with a Direction of the Commission

0

10

20

30

40

50

60

70

80

90

100

55

5

95

712 12

2

Case in Court

No. Cases Charged in Court No. of Cases Pending Trial Convicted Penalty (RM)

1. Licenceesi. Breach of Licence Conditionii. Failure to Contribute to USP Fund

13

13

--

--

2. Other Offendersi. Making Crank Calls to 999ii. Sending Offensive SMSiii. Unlawful use, possession or supply of non standard equipmentiv. Unlicenced Network Facility, Network Services and Application Services

22411

1-37

1-25

4,000-

6,50090,000

Total 23 15 8 100,500

No. Compounding of Cases Amount

1. Licenceesi. Compound Offered (103 Licencees)ii. Compound Paid (79 Licencees)iii. Compound Pending Appeal (24 Licencees)

RM 1,484,800RM 898,000RM 586,800

2. Other Offendersi. Compound Offered (4 Offenders)ii. Compound Paid (3 Offenders)iii. Compound Pending Appeal (1 Offender)

RM 13,800RM 12,000RM 1,800

The Compliance ProgrammeAside from enforcement action, in 2008, SKMM with the co-operation of the major licencees successfully organised seminars for their employees with the objective of educating their staff on compliance issues, CMA 1998 and the relevant Regulations and to ensure all the compliance issues are adhered to.

In addition, it is hoped that this would promote self-regulation and better compliance by the licencees in accordance to the law. Approximately 700 employees attended the seminar and speakers from SKMM were also invited during the seminar.


Upholding National Culture & Identity

05

104


The growth of Malaysia’s arts and cultural heritage is just as vital as the growth of its ICT services. As the custodian of Malaysia’s communications and multimedia industry, we are entrusted with the national responsibility to grow, nurture and spread local information resources and cultural representation that facilitate our Malaysian identity and global diversity. 106 Content Regulation

106


Content RegulationIntroductionOne of SKMM’s primary roles is to ensure that content application service providers support the Government’s national policy objectives for the communications and multimedia sector, as set out in the Communications and Multimedia Act (CMA) 1998. In particular, to portray the diverse and rich heritage of Malaysian culture, identity and social values. In this aspect, SKMM oversees the regulatory framework for the convergent telecommunications, broadcasting industries and online activities, ensuring that the services and content provided are suitable, of choice quality and fulfil national aspirations as well as the needs of all segments of the Malaysian community.

Regulatory ApproachThe Commission takes a four-pronged approach towards content regulation, namely, content monitoring, complaints management, new media initiatives and strengthening the self-regulatory mechanism.

a. Content Monitoring and Compliance Content monitoring is an ongoing activity of the Commission which ensures compliance

with licence conditions as well as content standards, the Content Code by Content Applications Service Providers (CASP) and also relevant Application Service Providers (ASP). Services are monitored by the Content Monitoring Centre. Services monitored include traditional broadcast services such as radio and television as well as newer services such as online publishing and information services.

In addition to monitoring, the Commission responds to complaints regarding

content in advertisements, online content and mobile content services. Such responses may include further monitoring, evaluation, taking enforcement action and providing reports on areas of public interest regarding standards and effectiveness of content policies, codes and standards.

As certain aspects of the networked content industry fall under the purview of other ministries and government agencies, the Commission’s role includes collaborating and co-ordinating with the relevant ministries and government agencies towards clarity of policies and practices for effective implementation and enforcement of the regulatory framework. Some of the key ministries and government agencies are the Ministry of Energy, Water and Communications (KTAK), Ministry of Information (MoI), Ministry of Home Affairs (MoHA), Ministry of Health (MoH), the Film Censorship Board, the Content Forum and the National Film Development Corporation Malaysia (FINAS).

SKMM also participates in inter-agency committees relating to content monitoring and regulation including the Jawatankuasa Penyelarasan Pemantauan Siaran TV dan Radio Awam dan Swasta (JKPPSTRAS) which is led by KTAK. SKMM is also an observer in the Medicine Advertisement Board, which is led by the Ministry of Health.

Enforcement action is also taken for breaches of any licence condition as well as for breaches of Sections 211 and 233 under the CMA 1998 for prohibited content in the networked environment.

b. Complaints and Complaint Resolution The increasing number of complaints has led to a review of the Standard

Operating Procedures (SOP)*.

107

Services 2004 2005 2006 2007 2008 Growth 2007 vs 2008 (%)

Television

TV3 8 8 2 8 4 -50

NTV7 1 2 5 3 1 -67

Ch9 3 - - - - -

8TV 3 2 3 8 2 -75

General television 5 1 2 5 6 20

ASTRO 8 4 10 13 16 23

General complaints (CASPs) 6 - - - - -

Radio

AMP Radio 1 6 2 1 4 300

Fly FM - - - 3 2 -33

Hot FM - 1 1 3 1 -67

Red 104.9 FM - - - 1 - -100

Suria FM - - - 2 1 -50

THR FM 1 - - 1 1 -

988 FM - - - 1 - -100

General radio 6 - - 1 - -100

Others

Telcos 1 - - - 5 -

Internet websites - 9 26 45 216 380

TOTAL 43 33 51 95 259 173

Whilst SKMM receives the bulk of complaints from the public through the Consumer Complaints Bureau, complaints are also forwarded to SKMM by other ministries, regulatory bodies and government agencies.

All complaints are processed and evaluated against the CMA 1998, pertinent licence conditions, the Content Code and other regulations. In the case of Internet complaints, they are reviewed according to Section 233 of the CMA 1998, based on the nature of the content, evidence of intent and whether there are local elements in the content.

Complaints which do not fall within the ambit of the CMA 1998 are forwarded to the relevant authorities or agencies for further action.

SKMM received a total of 259 complaints in 2008, a nearly three-fold increase from 95 complaints received in 2007. Complaints relating to Internet websites surged in 2008, representing 83% of total complaints for the year compared to 47% in 2007. One of the reasons for the increase was increased awareness initiatives undertaken by the Commission to publicise the complaints procedure.

Complaints on Content 2004-2008

Source: SKMM


*Changes have been made to the SOP to ensure that processing and evaluation of complaints are more efficient and timely by providing greater clarity on applicable laws

Technical16 (6%)

Offensive58 (22%)

Obscene152 (59%)

False/Misleading27 (13%)

108 109


Number of Complaints Received by Category in 2008

Source: SKMM

Number of Complaints Received by Month in 2008

Source: SKMM

Number of Complaints by Type in 2008

Source: SKMM

Most of the complaints received were for obscene content (59%) which involved obscene websites on the Internet. There was also an increase in the number of websites that contained offensive content (22%) that violated the sensitivity of the public. In this regard, ‘technical’ category refers to complaints which were not within SKMM’s jurisdiction or concerns the CMA 1998. False/Misleading complaints included false social networking profiles and impersonation online.

c. New Media Initiatives New media content is a term that refers broadly to content that can be accessed

through channels other than the traditional mediums of television and radio. The falling costs of accessing the Internet, improved affordability together with an increase in broadband penetration and widespread availability of devices have collectively accelerated the development and consumption of new media content. New media allows users to participate in the generation and dissemination of content through the various channels.

Whilst the Government is keen to promote a higher penetration rate of broadband as part of continued national development, there is widespread concern regarding the social impact of the online environment and the mobile lifestyles. Of particular concern is the quality and type of content that is being accessed and the need to protect users, particularly the young from offensive or prohibited content.

Research collaboration on New Media Content between SKMM and Institutions of Higher Learning is an initiative towards understanding the new media. It is envisaged that the outcome of the research outputs will provide the Commission with valuable information and insight for the formulation of strategies and policies for effective development and regulation of new media content. The Research Collaboration programme was launched successfully in April 2008 and has embarked on its maiden projects with four private and public universities. The programme is open to all private and public local universities and research grants will be made available annually.

The development of new media services and online media have prompted a shift in media regulation. The proliferation of social media online has provided amateurs and end-users with the facilities and tools to create their own content, so much so that social media with user-generated content is increasing its share of Internet traffic, globally. Traditional regulation and its legal framework especially in its practical application, is no longer able to adequately take on the tasks of ensuring consumer protection and quality of content. In recognition of this, SKMM realises that the public must be involved in efforts to regulate content and content applications services effectively. Self-regulation has become a vital component in its regulatory approach, co-existing and complementary to statutory regulation.


16 7 9 6 5

216

No.

of C

ompl

aint

s

0ASTRO FTA TV Radio OthersGeneral TV Internet

50

100

150

200

250

Media

Jan

9

Feb

10

Mac

13

Apr

12

May

16

Jun

42

Jul

29

Aug Sep

36

Oct

14

Nov

17

Dec

3130

10

20

30

40

5

0

15

25

35

45

No.

of C

ompl

aint

s

Months

ChannelingEqual Accessto ICT Services

06

110


112 USP Fund112 USP Projects in Bridging Digital Divide

By liberating the power of information, we are empowered to reduce the disparities between and within our society in the use of digital technology. The key lies within having a balanced and choice spread of ICT facilities. It is our social responsibility to ensure that everyone, be they rich or poor, young or old, is empowered with basic telephony and Internet services in any part of the country.

112


USP FundThe Universal Service Provision (USP) Fund was established under the provision of Section 204 of the CMA 1998. The USP Regulation stipulates that contributions from licencees shall be based on three factors:1) The list of designated services;2) Weight factors; and3) Six per cent of weighted net revenue.

As per Regulation 27 of the USP Regulation 2002 (Amendment 2003), all licencees (except for content application service providers) whose weighted net revenue derived from the designated services exceeds RM2 million in a calendar year (minimum revenue threshold) shall contribute 6% of its weighted net revenue to the USP Fund.

Pursuant to Part VIII, Section 204 of the CMA 1998, SKMM

has established, controlled and operated the USP Fund.

The Fund’s sole objective is to implement network facilities, network services and applications services in the underserved areas and communities.

The USP Fund is presently placed in Fixed Deposits at licenced financial institutions. Related projects’ payments and claims (CAPEX/OPEX) are only applicable to Designated USP Services Providers.

The USP Fund, amounting to 6% of licencees’ weighted net revenue annually, comprises the following:a) Contributions from Network Facilities Provider

Individual/Class (NFP);b) Contributions from Network Services Provider

Individual/Class (NSP); andc) Contributions from Application Services Provider

Class (ASP).

The administrative processes of managing and

administering the USP Fund are specified under the regulations as well as the SOPP, inter alia:a) R.27: Collection of Contribution from Licencees; andb) R.12, R.20, R.20A: Disbursement of CAPEX and

OPEX in the form of Advance Claims and Annual/Quarterly Claims processing.

USP Projects inBridging Digital DivideUSP Projects in Bridgingthe Digital Divide (BDD)SKMM prioritised the provision of collective universal service access (for basic telephony and Internet) over individual access. This is to ensure that the targeted uneconomical areas are provided with communications services through means of widespread community access to such services.

113Channeling Equal Accessto ICT Services

Throughout 2008, SKMM set its focus into developing broadband community access centres where promotion, awareness, marketing, and ICT enrichment training on information and communications technologies (ICT) took place in support of social service delivery to deserving communities.

SKMM realised that once a community is fairly conversant with the usage of broadband facilities and services, the capacity needs at such centres and the need for individual access will increase, thereby contributing significantly to the national broadband penetration in line with the objective of the Cabinet Committee on Broadband (CCB) under the auspice of YAB Deputy Prime Minister of Malaysia.

USP BROADBANDCOMMUNITY PROJECTS

Community Broadband Libraries (CBL)To facilitate communications access for selected communities, SKMM decided to broaden the roll-out of Broadband Internet to all libraries in the rural areas. Internet access in libraries stands to benefit the surrounding community besides facilitating the birth of a society knowledgeable in the field of communications, particularly Information Technology. Again, this objective is very much in line with plans and targets identified under the National Broadband Plan and the Strategic Framework MyICMS 886.

The library will be equipped with the latest IT hardware and high-speed Internet connectivity to enable rural communities to gain exposure to the latest technology through Internet communications. In addition, other IT-related activities such as training and promotional activities will be conducted at the libraries to encourage locals to make full use of the facilities and thereby improve their IT proficiency, with the ultimate goal of helping to improve their economic and social status.

SKMM will appoint a supervisor for each library on a contract basis. They will be based at the library and will be responsible for managing and maintaining its equipment, providing training and promoting the facilities to the community.

The selection of libraries for this project was based on information provided by the National Library of Malaysia and the states’ Library Organisations. To avoid duplication, SKMM worked closely with the Ministry of Energy, Water and Communications (KTAK) as similar projects have been carried out by KTAK under its government-funded USP programme.

Community Broadband Library in Desa Ijok, Selangor

Throughout 2008, SKMM approved 61 new CBL projects nationwide at a cost of RM29.2 million and is listed in Table 1 on page 114.

Community Broadband Centre (CBC)SKMM had decided to establish the Community-Broadband Centre (CBC) as part of its broadband roll-out plan for the year 2006. Similar to the broadband library initiative, the CBC will be equipped with the latest IT hardware and broadband connectivity for faster access to the Internet. However, the provision of facilities will be at greater capacity as the target users of CBC are bigger.

The CBC will be managed by two supervisors on a contract basis. Besides managing the CBC, they would also be responsible for conducting various IT-related activities such as training, seminars and workshops for the community. For sustainability, the CBC’s operations would adopt the entrepreneurship concept wherein supervisors are encouraged to earn additional income by conducting any IT-related side business in the CBC.

The successful implementation of the CBC relies on the co-operation of state governments in terms of providing the premises. The CBC sites mainly comprise common public locations where there is a good concentration of people, active community and is easily accessible, preferably within a town’s vicinity or business area.

For capacity and community enrichment purposes, around 10 to 20 networked computers will be installed at the premises, with Internet access.

Community Broadband Centre in Sg Pinggan Pontian, Johor

Throughout 2008, SKMM approved 73 new CBC projects nationwide at a cost of RM92.5 million and is listed in Table 2 on page 116.

114 115


NO. STATE DISTRICT LIBRARY

1

MELAKA Alor Gajah

PD Kg Seri Pengkalan, 78000 Alor Gajah

2 PD Kg Kuala Sungga, Mukim Tebong, 76460 Tebong

3 PD Kg Bukit Nangga, 78000 Alor Gajah

4 PD Kg Paya Datuk, Taman Paya Datok, 78000 Alor Gajah

5 PD Kg Lubok Redan, 78300 Masjid Tanah

6

JOHOR Pontian

PD Mukim Api-Api d/a Balai Raya Kawasan 1, Mukim Api-Api, 82000 Pontian

7 PD Kg Puteri Menangis, Lot 1163, Mukim Sg Pinggar, Bebut, 82100 Pontian

8 PD Parit Bilal Rembah, 82000 Pontian

9 Kota Tinggi PD Kampung Ulu Tiram, Mukim Plentong, 81800 Ulu Tiram, Kota Tinggi

10

N.SEMBILAN Jempol

PD Lui Selatan 1, d/a Felda Lui Selatan 1, 72120 Jempol

11 PD Felda Palong 5, 73430 Gemas

12 PD Felda Palong 12, 73430 Gemas

13 PD Rumah Rakyat Kg Serting Tengah, 72200 Batu Kikir, Bahau

14 PD Kg Serting Ulu, 72200 Batu Kikir, Bahau

15 PD Taman Tunku Puan Chik, 72100 Bahau, Jempol

16 PD Kg Bukit Kerdas, 72200 Batu Kikir, Bahau

17 PD Kg Sri Rompin, 73500 Jempol

18 SELANGOR Kuala Selangor PD Bandar Puncak Alam, PT 1562 Fasa 1D, Bandar Puncak Alam, 43200 Jeram, Kuala Selangor

19

KELANTAN

Jeli

PD Kg Gemang, Air Lanas, 17700 Jeli

20 PD Kg Sungai Satan, Air Lanas, 17700, Jeli

21 PD Kg Batu Melintang, 17520 Jeli

22Machang

PD Kg Pangkal Petai Dalam, Kemuning, 18500 Machang

23 PD Kg Pangkal Gong, PT 983 Mukim Gading Galoh, Pulai Chondong, 18500 Machang

24

Bachok

PD Kg Wakaf Zin, d/a Kompleks Penggawa Kg Wakaf Zin, Tawang, 16020 Bachok

25 PD Kg Telong, d/a Kompleks Penggawa Telong, 16310 Bachok

26 PD Kg Permatang Piah, 16300 Mahligai, Bachok

27 PD Kg Chat Bekelam, 16300 Bachok

28 Tumpat PD Kg Ketil, Pengkalan Kubor, Tumpat

29 Gua Musang PD Kg Jerek, 18300 Gua Musang

30

Kuala Krai

PD Kg Sungai Sam, 18000 Dabong, Kuala Krai

31 PD Kg Kuala Geris, 18000 Dabong, Kuala Krai

32 PD RPT Chuchuh Puteri, 18000 Kuala Krai

NO. STATE DISTRICT LIBRARY

33

PAHANGMaran

PD Bukit Kening, 28100 Chenor

34 PD Pekan Awah, 28330 Maran

35 PD Kg Pantai Chenor, 28100 Chenor

36 PD Kg Senggora, d/a Balai Seni JKKK Kg Senggora, 26500 Maran

37 Pekan PD Kg Dusun, 26000 Pekan

38

TERENGGANU

BesutPD Kg Keruak, Hulu Jertih, 22010 Besut

39 PD Kg Bukit Tanah, 22200 Besut

40Dungun

PD Kg Balai Besar, Batu 48, 23100 Rantau Panjang, Dungun

41 PD Felda Kerteh 3, Ketengah Jaya, 23300 Dungun

42

Marang

PD Kg Tasik, Bukit Payung, 21400 Marang

43 PD Kg Alur Limbat, 21400 Marang

44 PD Kg Tok Amat, Merchang, 21610 Marang

45

KEDAH

Sik PD Felda Teloi Timur, 09300 Kuala Ketil

46

Pendang

PD Kg Padang Durian, d/a Pejabat ADUN Sungai Tiang, Kg Padang Durian, Sungai Tiang, 06760 Pendang

47 PD Kg Dato’ Syed Ahmad, Padang Peliang, 06750 Pendang

48 PD Kg Charok Kudung, Mukim Guar Kepayang, 06700 Pendang

49 PD Kg Titi Akar, Watt Kg Titi Akar, 06750 Pendang

50 PD Kg Paya Mengkuang, 08330 Gurun

51 PD Bukit Raya, d/a Pejabat Penghulu Mukim Bukit Raya, 06760 Pendang

52

Padang Terap

PD Masjid Kg Masjid Lama, Naka, 06350 Padang Terap

53 PD Masjid Kg Datuk, Mukim Tekai Kiri, Naka, 06350 Padang Terap

54 PD Masjid Kg Perik, Mukim Kurong Hitam, 06300 Kuala Nerang

55 PD Masjid Kg Padang Niyor, PD Masjid Kg Padang Niyor

56

Bandar Baharu

PD Kg Permatang Pasir, 34950 Bandar Baharu

57 PD Kg Baru Bagan Samak, 34950 Bandar Baharu

58 PD Taman Cempaka, 09810 Selama, Serdang

59 PD Kg Sungai Batu, 09810 Serdang

60 Baling PD Kg Pokok Setol, Masjid Siong, Kg Pokok Setol, Mukim Siong, 09100 Baling

61 SARAWAK Betong PD Kg Pusa Tengah, 93950 Betong

Table 1: Community Broadband Libraries (CBL) Approved in 2008

Channeling Equal Accessto ICT Services

116 117


Table 2: Community Broadband Centres (CBC) Established in 2008

NO. STATE DISTRICT MUKIM

1

MELAKA Alor Gajah

Brisu

2 Melaka Pindah

3 Melekek

4 Pegoh

5 Rembia

6 Sungei Baru Ilir

7 Taboh Naning

8 Tanjong Rimau

9 Sungei Baru Ulu

10 Tebong

11

JOHOR

Kota Tinggi

Johor Lama

12 Kota Tinggi

13 Penggerang

14 Sedili Kechil

15 Tanjong Surat

16 Ulu Sungai Johor

17

Pontian

Api-Api

18 Ayer Baloi

19 Jeram Batu

20 Rimba Terjun

21

N.SEMBILAN Jempol

Jelai

22 Rompin

23 Serting Hilir

24 Serting Ulu

25

TERENGGANU

Besut

Jabi

26 Kampong Raja

27 Kuala Besut

28 Pelagat

29

Dungun

Jerangau

30 Kuala Paka

31 Rasau

32 Sura

33

Marang

Alur Limbat

34 Bukit Payong

35 Mercang

36 Pulau Kerengga

37

PAHANG

BentongPelangai

38 Sabai

39Jerantut

Pedah

40 Pulau Tawar

41

Lipis

Kuala Lipis

42 Penjom

43 Ulu Jelai

44Maran

Chenor

45 Luit

46Pekan

Pahang Tua

47 Penyor

48Rompin

Keratong

49 Rompin

50

SARAWAK

Serian Tebedu

51 Saratok Budu

52 Marudi Pekan Marudi

53 Matu Igan

54 Mukah Balingian

55 Tatau Pekan Tatau

56Julau

Pekan Pakan

57 Pekan Julau

58 Asajaya Pekan Asajaya

59 Bintulu Kg Penan

60 Sri Aman Lingga

61 Kapit Pekan Kapit

62 Betong Pekan Betong

63 Samarahan Pekan Samarahan

64 Dalat Pekan Dalat

65 Limbang Pekan Limbang

66 Sarikei Pekan Sarikei

67 Song Song

68

SABAH

Kinabatangan

Pekan Kinabatangan

69 Sukau

70 Bukit Garam

71 Kg Paris 1

72 Nabawan Pegalungan

73 Pitas Mempakat Laut

Channeling Equal Accessto ICT Services

EnhancingICT Ethics and Excellence

07

118


120 Consumer Forum’s Activities121 Content Forum’s Activities123 Report on Technical Standards Forum 125 Report on Access Forum

ICT is a crucial tool that drives competitiveness and productivity. Incorporating a certain level of professionalism and implementing self-regulation within the ICT industry are sure ways to meet the demands of industry effectiveness, raise expectations and boost consumer confidence.

120


Consumer Forum’s ActivitiesThe CfM was established in February 2001 and designated as an Industry Forum in line with the requirements of the Communications and Multimedia Act (CMA) 1998. It facilitates the industry’s self-regulation with participation and representation from consumer associations, service providers and other interested parties.

The forum acts as a one-stop centre for complaints on breaches of the code and will refer those which it cannot process to the relevant bodies concerned. The code outlines the rights of the consumer and offers a less expensive process than the court for resolving consumer complaints.

The objectives of CfM are as follows: 1) Promote the national policy’s objectives as stated in the CMA 1998.2) Draft, develop and prepare Codes that protect the rights of Consumers pursuant

to the provisions of the CMA 1998 and from time to time to amend, develop, modify, review and update Codes.

3) Engage in and undertake research on matters within the jurisdiction of the forum and to collect, prepare and distribute statistics as may be considered desirable or beneficial to all or any of the forum’s objectives and purposes.

4) Provide an avenue and channel for complaints, disputes and grievances.5) Recommend inexpensive and practical alternative dispute resolution

procedures, for example, mediation.6) Recommend procedures for compensation and/or any other mode of action to

the customer in the case of a breach of the Code.7) Invite, collect and collate public opinion and views on consumer matters, promote

and create public and industry awareness of the Codes and their compliances; and provide avenues for dissemination of information to the public and education regarding consumer rights, regulations and technologies for the consumer.

8) Administer sanctions on breaches of the Codes by members.9) Monitor service delivery of the communications and multimedia industry in

respect of consumer interests and compliance with the Code.10) Promote and encourage high standards of service, conduct and performance

throughout the communications and multimedia industry and to develop consumer confidence.

11) Regularly update the Commission on the progress of the forum.

The General Consumer Code of Practice (GCCP), launched in November 2003, is the first voluntary code under the CMA 1998. Compliance with the GCCP is mandatory for all licencees under the CMA 1998 through standard licence conditions.

The GCCP contains general provisions on:1) Reasonable meeting of consumer requirements;2) The handling of consumer complaints and disputes including an inexpensive

arbitration process, and procedures for compensation of customers in the case of the breach of the Code; and

3) The protection of consumer information.

Currently CfM comprises 36 members from various industries such as telecommunications’ service providers and broadcasting stations (The “Supply Side”), and consumer associations and public interest groups (The “Demand Side”). Membership to the CfM is voluntary.

CfM sets up guidelines for self-regulation within the industry while providing a benchmark for service providers on a range of issue including advertising, billing, and privacy of consumer information.

The current office bearers of CfM are:Chairperson - Encik Ahmad bin IsmailDeputy Chairperson - Encik Noor Nirwandy bin Mat NordinSecretary - Puan Nor Esah Mohd SaidTreasurer - Encik Muhamad Adnan Abdullah

CfM’s activities in 2008 covered the following areas:1) Education and awareness

a. CfM undertook 23 educational and promotional events.b. Creating awareness regarding: • CfM’sexistenceanditsfunctions; • Rightsofusersasconsumers; • Channelsforcomplaints,disputesandgrievances-handling; • Thenationalpoliciesinthecommunicationandmultimediaindustry.

2) Complaints handlinga. For 2008, 141 complaints were received, 125 of which were resolved. The

remaining 16 complaints are awaiting resolution and will be escalated to SKMM if not resolved within the stipulated time.

b. CfM is in the process of setting up a web-based complaint handling process and for this purpose CfM has finalised and short-listed the solution providers for its Complaint Handling Management.

3) Council meetingsa. A total of eight council meetings were held in 2008. This complies with

Article 17 of the Constitution of CfM that requires it to meet at least once every quarter. Council Meetings were generally well attended.

1214) Membership drive

a. As at 31 December 2008, CfM’s membership stood at 36.b. CfM collected a total of RM61,700 as subscription fee from the members.

5) Codes drafting and compliance activitiesa. The code drafting committee worked on developing the fixed line sub-codes

while the Public Cellular Services’ draft sub-codes have been circulated to all public cellular service providers for comments.

For the year 2008, SKMM allocated RM435,000 to CfM to cover expenses related to its activities.

CfM is currently reviewing its activities in view of strengthening the self-regulatory process particularly compliance monitoring, alternative dispute resolution process and internalisation of the code amongst licencees.

Content Forum’s ActivitiesBackgroundThe Communications and Multimedia Content Forum of Malaysia (CMCF) has been designated as a content forum under Section 212 of the CMA 1998. A registered society whose membership comprises all relevant parties, including the “supply and demand” side of the communications and multimedia industry, it functions as an industry body responsible for self-regulation within the networked content industry.

For this purpose, a Content Code was registered by SKMM on 1 September 2004 providing guidelines on suitability of content provided over the networks. This includes broadcasting content, Internet content, mobile content and advertising content. The Code also provides guidelines on the complaints resolution process.

As a self-regulatory body, CMCF is extensively involved in the following activities:a. Resolution of consumer complaints through the Complaints Bureau;b. Provide advice and guidance to the industry on the interpretation of the Content

Code through its Content Advisory Centre;c. Provide industry inputs on policies and regulations relating to content to SKMM,

the Ministry of Energy, Water and Communications (now Ministry of Information, Communications and Culture or KPKK) and other relevant ministries;

d. Provide training on the Content Code to its members and other interested parties; and

e. Participate in seminars and workshops at both national and international levels in its efforts to promote the concept of self-regulation to various stakeholders.

Currently, CMCF has 44 members, comprising 42 ordinary members and two associate members. CMCF’s management is led by its chairman, YBhg Dato’ Borhanuddin Osman and supported by the other members of the executive committee comprising vice-chairman Dato’ Amrin Hj. Awaluddin, honorary secretary Tuan Syed Agil bin Sheikh Alsagoff, and honorary treasurer Dr. Fadhlullah Suhaimi Abdul Malek. Besides the executive committee, council members head various committees, representating the six categories of members.

CMCF continues to receive financial support from SKMM to supplement its income, which is also derived from subscription fees. For 2008, CMCF received RM2,200,400 as grant from SKMM for its operations and activities.

Together with the Commission, CMCF continues to undertake activities to strengthen the self-regulatory capacity of the industry. For the year in review, CMCF’s main activities were the Complaints Board, code drafting, awareness building and capacity building.

a. Complaints Bureau and Content Advisory Centre The number of complaints and advisory matters combined received by the

Content Forum’s Complaints Bureau in 2008 totaled 44 compared to 31 in the previous year. In terms of cases closed, a total of 38 cases were resolved in 2008. This represents an achievement of 86% of the total number of cases resolved for the year.

Graph 1: Complaints Bureau Cases 2007/2008

Enhancing ICT Ethics and Excellence

0

5

10

15

20

25

30

35

40

45

2007 2008

12

29

15

44

37

6

16

28

18

10

Num

ber o

f Cas

es

Complaints Received

Advisory Matters

Total Number of Cases

Cases Resolved

Decision Pending

122 123


Summary of Cases for 2008 Breakdown of Cases Received in 2008


Industry18%

Mobile Content7%

Advertising32%

Academic20%

Public68%

Cases Pending14%

Cases Resolved86%

Services7%

Breakdown of Complaints 2008 Breakdown of Content Advisory Matters 2008

b. Code Drafting and Review In 2008, CMCF undertook to draft a “Music

Content Sub-Code” to regulate the broadcast of music and songs on networks through industry self-regulation. The Sub-Code, which is expected

to be registered in 2009, underwent public consultation from 14 April to 13 May 2008.

CMCF is continuously reviewing the Content Code to ensure that it remains current and

relevant, particularly to developments in the communications and multimedia industry and socio-economic environment. Working groups were established to look into the different aspects of the Code, such as advertising and online

Source: CMCF

content guidelines. CMCF hopes to complete the review exercise and obtain approval for the proposed amendments in 2009.

c. Public Relations and Awareness Activities CMCF continued to promote, educate/advocate

the proper use of networked media and strengthen self-regulation through a variety of initiatives and activities as shown in the table below:

Table 1: Activities on Public Relations’ Awareness Undertaken by CMCF

d. Capacity Building As part of its capacity building initiatives, CMCF

continued to provide training to interested parties and relevant stakeholders. In 2008, three training events were conducted on the Content Code.

CMCF also participated in a study trip to the United Kingdom in June 2008 for its Council Members together with SKMM. The main purpose of the visit was to establish an inter-jurisdictional information sharing relationship and enhance jurisdictional study of other regulators’ efforts to manage, understand and develop the industry in their respective jurisdictions. This included the processes and organisational functions of the regulators in the UK with emphasis on complaint handling mechanisms.

During the visit, meetings were held with several regulatory authorities for the industry, namely,

Office of Communications (OFCOM), PayPhonePlus and the Advertising Standards Authority. Discussions were also held with BBC Trust and subscription broadcaster BSkyB.

Report on Technical Standards ForumMalaysian TechnicalStandards Forum BerhadThe Malaysian Technical Standards Forum Bhd (MTSFB) (655368-P) was incorporated on 8 June 2004 and subsequently is designated and registered by SKMM under the CMA 1998 (Act 588), Part V, Chapter 9, Voluntary Industry Codes, Section 94 and Part VII, Chapter 3, Technical Standards, Section 184 on 27 October 2004.

The MTSFB AGM2008 was held on 27 June 2008 at Menara Maxis, KLCC and listed below are the Board of Directors for 2008/2009 session:

Board of Directors 2008/2009 Session• Chairman

1) YBhg Dato’ Ismail bin Osman – U Mobile

• Directors1) Poh Kee Seng – Maxis2) Azizi A. Hadi – Telekom Malaysia3) Hj. Abdul Razak Salim – SIRIM4) Tengku Azelan – TIME dotCom5) Nathan Jay Paul – DiGi6) Hj. Rohaizad Mohamed – MBNS (Astro)

• AlternateDirectors1) Hamzah Burok – U Mobile 2) Hj. Ramlan bin Othman – Maxis3) Mohd Rais Azhar – Telekom Malaysia

4) Khalidah Mustafa – SIRIM5) Imran Zulkifli – TIME dotCom 6) Kevin Koo Jenn Mang – DiGi7) Shahrul Imran Sultan – MBNS (Astro)

Reference Panels1) N.A. Ratnam MBNS (Astro) – Chairman2) Amirul Ahmad (MTSFB) – Vice Chairman3) YBhg. Dato’ Ismail bin Osman – U Mobile4) Abdul Ghani Zainal Abidin – SIRIM5) Ravindran Ramesan – Maxis6) Abdul Majid Abdullah – QucomHAPS7) Khoo Teng Lock – Motorola8) Mohd Yusairi Abu Hassan – Telekom Malaysia9) Nor Izhar Mohd Zain – Asiaspace10) Hamzah Burok – U Mobile11) Bruce de Netto – Maxis12) Hj. Mohd Jaafar Mohamad Abu Bakar – Telekom

Malaysia (TM R&D)13) Nick Krall – NTT MSC14) Rosilawati Ayub – Telekom Malaysia15) Ameer Suresan – DiGi16) Suhaimi Abdul Rahman – Velchip17) Roslan Boni – MBNS (Astro /AMP)

MembershipCurrently, MTSFB has 35 registered members divided into two categories as below:1) Ordinary Members – 16 registered corporate

members: Maxis, Telekom Malaysia, DiGi, MBNS(Astro),

SIRIM, Time dotCom, UMobile, Realm Energy, Masers Digital, DIS Technology, Smart Digital, NTT MSC, Orbitage, QucomHaps, MIMOS & ZTE.

2) Associate Members – 19 registered corporate members:

Nokia Siemens, Ericsson, Alcatel-Lucent, Rohde & Schwarz, Celcom, TMNet, UPM, UTM, Motorola, Electroscon, UiTM, USIM, HAPS Network, Asiaspace, NAV6, Packet One, BT Multimedia, Panasonic R&D & ADAcellworks.

No. Type of Activities Frequency

1. Roadshow/Exhibition 10

2. Seminar/Workshop/Conference 29

3. Press Release 1

4. Media Interview 2

5. Other Events 14

Broadcasting14%

Internet30%

Mobile Content28%

Advertising28%

Others14%

Broadcasting7% Others

7%

Internet20%

124 125


The trial commenced in mid January 2008 and concluded by mid March 2008. The technical trial involved the technology based on DAB Eureka 147 platform using DAB audio codec and T-DMB technology as both systems have common equipment. The set-up involved one DAB transmitter (1KWatt) placed on top of Menara Kuala Lumpur and transmited southwards almost 30km with another gap-filler (1Watt) installation at SKMM’s building in Cyberjaya. The head-end equipment which included encoders and multiplexer was placed in IBC Angkasapuri.

Besides proving the maturity of the technology, the trial also increased interest amongst the industry on the mobile TV technology. The trial triggered many follow-up trials by industry players. MTSFB also announced the success of this trial through press releases which were captured in local newspapers, namely the New Strait Times’ Tech&U on 31 March 2008 and Berita Harian on 7 April 2008 as well as on Radio24’s live interview on 25 April 2008.

New Straits Times in Tech&U section: Interview on the MTSFB’s Mobile TV Trial

Seminars were also conducted for awareness and transfer of knowledge to industry players where foreign and local speakers were invited. MTSFB also participated in the “MyBroadband Experiencing Convergence and Conference 2008” in KLCC with an advertorial write-up column under the title “Gatekeeper of Technical


MTSFB has played a key role in developing technical standards for the industry from its Working Group/Sub-Working Group clusters which includes:

Internal Working Group/Sub-Working GroupThese are working groups/sub-working groups working to develop the respective standards according to the WG jurisdictions:1) DIGITAL TERRESTRIAL TV BROADCASTING – MOBILE TV WORKING GROUP

(DTTB-MTV WG) 2) NEXT GENERATION NETWORK – IP MULTIMEDIA SUBSYSTEM WORKING

GROUP (NGN-IMS WG) 3) MULTIMEDIA TERMINAL – SET-TOP-BOX WORKING GROUP (MMT-STB WG ) 4) HIGH ALTITUTE PLATFORMS WORKING GROUP (HAPS WG) 5) MULTIMEDIA NETWORK INFRASTRUCTURE WORKING GROUP (MNI WG)6) FIXED NETWORK INFRASTRUCTURE SUB-WORKING GROUP (FNI SWG)7) RADIOCOMMUNICATIONS NETWORK INFRASTRUCTURE (EXTERNAL) SUB-

WORKING GROUP [RNI (Ex) SWG]8) RADIOCOMMUNICATIONS NETWORK INFRASTRUCTURE (INTERNAL) SUB-

WORKING GROUP [RNI (In) SWG]9) OCCUPATIONAL SAFETY & HEALTH WORK PRACTICES SUB-WORKING GROUP (OSHWP SWG) 10) WIRELESS BROADBAND WORKING GROUP (WIB WG)11) INTERNET PROTOCOL VERSION 6 (IPv6 WG) 12) IMT2000 SYSTEMS & BEYOND WORKING GROUP (IMT2000 WG)13) WIRELESS INDUSTRY EMISSION WORKING GROUP (WIE WG)14) POWER LINE COMMUNICATIONS WORKING GROUP (PLC WG)

External Working Group/Committee’s participation1) SIRIM ISC-G; TC 12 & TC on EMC 2) SIRIM ISG-W; DOSH’s WG 3) SKMM DSOG 4) KTAK’s – APT/WTSA Preparation Committee5) MAMPU’s – IPv6 Implementation Committee

DeliverablesFor the year 2008, MTSFB through its respective work groups, submitted five documents to SKMM which included: 1) MTSFB 001:2008 – Technical Standards for Free-to-air Digital Terrestrial

Receiver (Set-Top-Box) on 20 June 2008;2) MTSFB 002:2008 – Guideline on Adoption of IP Multimedia Subsystem (IMS)

on 20 June 2008;3) MTSFB 003:2008 – Mobile Broadcast TV Guidelines on 30 June 2008;

4) MTSFB 008:2005 – Technical Standards & Infrastructure Requirements (Part 1) for Fixed Network Infrastructure on 30 June 2008; and

5) MTSFB 006:2008 – Technical Standards & Infrastructure Requirements (Part 2) for Broadcast Network Infrastructure on 25 July 2008.

SKMM successfully registered and published the three Technical Standards/Specifications as industry codes namely:1) Technical Specifications for Free-to-air Digital Terrestrial Television Receiver

(Set Top Box) which was registered on 13 August 2008; 2) Technical Standards and Infrastructure Requirements: Fixed Network Infrastructure

Final (Part 1) which was registered on 13 August 2008; and 3) Technical Standards and Infrastructure Requirements: Broadcast Network

Infrastructure Final (Part 2) which was registered on 8 October 2008.

MTSFB Publication of TSIR, Part 1 and Part 2

ProjectsFurther activities of the forum included conducting industry trials and seminars. A mobile TV trial was successfully conducted by the forum utilising the widely recognised T-DMB standards.

The T-DMB Mobile TV Coverage for Trial

Standards and Codes” published in the New Strait Times on 1 November 2008.

International ParticipationIn 2008, MTSFB participated in two international events:1) The 14th APT Standardisation Programme Forum

(ASTAP-14) and the 2nd APT Preparatory Meeting for WTSA-2008 in Kobe, Japan from 9 to 14 June 2008 attended by Abdullah Shahadan (Astro) on behalf of MTSFB. Other Malaysian delegations who attended were:i. KTAK: Anna Amalina Imam Baweh and Nubailah Arshadii. SKMM: Ahmad Razif Ramli iii. Telekom Malaysia: Badariah Zainal

2) The APT Workshop on Standardisation in Chiang Rai, Thailand from 29 to 31 July 2008 attended by Norazlina binti Dato’ Ghazali on behalf of MTSFB. Other Malaysian delegations included:i. KTAK: Amirah binti Azhariii. SKMM: Abdul Karim Abdul Razakiii. Packet-1: Jaizan Zuki

Report on Access ForumMalaysian Access Forum BerhadAs at 31 December 2008, the Malaysian Access Forum Berhad (MAFB) has 11 members. For 2008, the MAFB developed the Guidelines on 2G-2G Domestic Inter-Operator Roaming Service. Further, it also carried out a public consultation on the access code from 25 September 2008 for 30 days. At the close of their public consultation, the MAFB received four responses from the members, i.e. Telekom Malaysia Berhad, U Mobile Sdn Bhd, Celcom (Malaysia) Berhad and TT dotCom Sdn Bhd. To date, the MAFB has yet to submit the access code to SKMM for registration under Sections 154 and 95 of the CMA 1998.

126

Although ICT has overwhelmingly infringed into our lives, at work and at home, Malaysia’s postal services still continue to play an integral role, serving the community through various services it strives to deliver. There is this universal service obligation we need to exercise to promote and encourage the interest of users as well as expansion of postal services towards economic development.

Enhancing Postal Services Standards

08SKMM Annual RePort 2008

128 Postal Services

Projek Usahawan Pos Mini Luar Bandar (PUPMLB)The Government understands the need for post offices in rural areas and has allocated RM1 million under the RMK-9 budget for the PUPMLB. A total of 105 suitable locations have been approved, of which 64 new mini post offices were successfully opened nationwide.

Pos Mini Felda Dahlia, Pusat Jengka 3, Pahang

Pos Mini Felda Sungai Tekam Utara, Jerantut, Pahang

Courier and Express Delivery ServicesThe courier and express delivery service industry plays a major role in providing both domestic and international connections crucial for both business and consumers alike.

In 2008, the number of courier licencees increased to 113 from 109 in 2007. Nine new applications were approved, while five existing licencees did not renew

their licence. The new licencees are:1) Hyjet Express Sdn Bhd2) M.L.H Services Sdn Bhd3) PAKARGO Logistic Distribution Warehousing Sdn Bhd4) Quantum Express Logistic Sdn Bhd5) KNZ Mail Services Sdn Bhd6) Tasco Express Sdn Bhd7) BPL Logistic Sdn Bhd8) Quick Courier (International) Sdn Bhd9) BBB Express (M) Sdn Bhd

Figure 3: Number of Courier Service Providers(2001-2008)

The courier services sector is becoming more competitive as players are set to increase service levels through business transformation exercises and higher utilisation of Information Technology such as ‘Track and Trace’ and RFID (radio frequency identification). The top 10 Courier Companies in terms of annual turn-over are as follows:1) Federal Express Services Sdn Bhd2) DHL Worldwide Express Sdn Bhd3) United Parcel Service (M) Sdn Bhd4) Cen Worldwide Sdn Bhd5) City Link (M) Sdn Bhd6) Nationwide Express Courier Services Bhd7) TNT Express Worldwide (M) Sdn Bhd

8) GD Express Sdn Bhd9) ABX Express (M) Sdn Bhd10) Skynet Worldwide (M) Sdn Bhd

2008 Stamp ThemesThe Minister through the Stamps Advisory Committee approved 15 themes for stamps’ issuance in 2008.

Table 3: Stamp Themes Approved for 2008

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Postal ServicesThe Functions of the Commission The Commission has a statutory regulatory and developmental role with respect to the postal and courier services’ industry as prescribed by the Postal Services Act 1991. The regulatory functions include the determination of service performance standards, promoting competition and protecting the interest of users with the development role of promoting the expansion of postal services in line with the economic development of the country.

Domestic Mail Service Standards As part of its efforts to improve the quality of service, the Commission enforced the mandatory performance service standards for domestic mail services with effect from 1 August 2008.

Figure 1: Performance Requirements for Domestic Mail Delivery Services

The national delivery service is divided into two areas, namely Zone A and Zone B. Zone A covers all the major towns and cities in Peninsular Malaysia and Kuching and Kota Kinabalu in Sarawak and Sabah, respectively. Zone B covers small towns and villages throughout Malaysia.

Zone A has a D+2 (within two days of posting date) delivery standard while Zone B has a D+4 (within four days of posting date) delivery standard. Based on Pos Malaysia Berhad’s record, 84.5% of 6.4 million addresses fall under Zone A with 89.6% of the mail volume falls under the D+2 category. All local delivery services have D+1 standard.

Service performance is measured based on the following criteria:

Table 1: Service Standards

Note: Speed refers to the percentage of the total test letters that comply with the performance required as stated in Figure 1, i.e. for 2008, 88% of letters must achieve the performance required as stated in Table 1 above.

Reliability refers to the percentage of the total test letters delivered within the delivery standard of D+7, i.e., in 2008, 99% of all letters must be delivered within seven days of posting.

Post Office andMail Delivery NetworkThe Post Office and Mail Delivery network is an essential infrastructure for economic growth. At the end of 2008, there were 671 post offices, 349 mini post offices and 257 postal agents. The country’s post office network is explained in Table 2.

Table 2: Malaysia’s Post Office Network

129Enhancing PostalServices Standards

Up to D+5

5 – Tier System

Pre-2008

3 – Tier

(2008-2010)

D+1 – Local DeliveryD+2 – Zone AD+4 – Zone B

Year2008 2009 2010

% Compliance

Speed Objective 88.0% 88.0% 89.0%

Reliability Objective 99.0% 99.2% 99.3%

Network Reach Total Number

Post Office 671

Pos Mini 349

Postal Agents 257

Stamp Vendors 5,068

Mobile Post Offices 2

PosLaju Centres 48

Posting Boxes 4,872

PO Boxes 72,146

Mail Processing Centres 32

Delivery Depots 396

AccessibilityThe level of accessibility to postal services at the state level is presented in Figure 2.

Accessibility is measured by the average population for each post office and mini post office per state.

Pahang has the best accessibility to postal services with one postal outlet serving 16,852 people. On the other hand, Sabah has the lowest accessibility with one post office serving 58,273 people on the average.

No. Theme Date Issue

1. Bridges of Malaysia 28 Feb 08

2. Nocturnal Animals 13 Mac 08

3. 100th Anniversary of St John’s Ambulance of Malaysia 22 May 08

4. Cultural Instruments and Artefacts II 10 Jun 08

5. Annual Stamp Album 2007 30 Jun 08

6. Golden Jubilee of the Reignof Tuanku Sultan Kedah 15 Jul 08

7. IDBF Club Crew World Championships 2008 01 Aug 08

8. Centenary Scouting in Malaysia 14 Aug 08

9. Treasures of theNation’s Visual Arts 28 Aug 08

10. Royal Headgears 16 Sep 08

11. Unique Flowers 09 Oct 08

12. National AngkasawanProgramme 21 Oct 08

13. Sea Shells 11 Nov 08

14. Malaysian Cartoons Series I – Lat (2008 Stamp Weeks) 01 Dec 08

15. Premier Schools 16 Dec 08

1042001

116

2002

117

2003

110

2004

114

2005

112

2006

113

2007

109

2008

113

106

108

110

112

114

116

118

Figure 2: Average of population per post office by states in 2008

16,852 4 1 1 15 2 9 0 0 4 9

8

2

3

19,654 19,691 20,391 21,36124,505 25,862 26,959 27,860 27,870 28,774 28,999 31,268

43,727

58,573

PH MLK NS PRLS PRK PP TRGN SWK KDH KTAN KL JHR SNGOR LAB SBHStates

Accelerating Growth ThroughGlobal Partnerships

09

130


132 International Affairs

We collaborate with various counterparts, both regionally and internationally, to create cross-border industry alliances and smart partnerships. These engagements serve to enhance regulatory measures and practices towards mutual industry competitiveness, facilitate inbound and outbound investments and trade, as well as develop network and human resource capabilities for the ICT industry’s onward growth.

partners, which is led by the Ministry of Foreign Affairs and International Trade and Industry.

Currently, Malaysia holds several appointments in regional and international organisations which serve to strengthen our position in the respective fora:1) ASEAN ICT Centre Director (founding director) - Puan Nur Sulyna Abdullah,

Director, International Affairs (term 2007-2009)2) APT Policy and Regulatory Forum Vice Chair - Puan Nur Sulyna Abdullah,

Director, International Affairs (term 2006-2009)3) Asia-Pacific Internet Research Alliance Board Member - Mr. Koay Hock

Eng, Director, Statistical and Knowledge Resource Department

In terms of functional focus areas, our international activities can be divided into the following:• Managementoffrequency,numberingandInternetaddressing• Standardsandinteroperability• MutualRecognitionArrangements• Tradeandliberalisation• Securityandharmonisationofe-commerceactivities• Tariffsandaccountingrates• Content• Co-operationandinformationexchange• Regulatoryroundtables• Bilateral,regionalandmultilateralco-operation

Sectoral Focus AreasSectorally, SKMM’s activities can be viewed through the following focus areas:

ASEANSKMM participates actively in the following ASEAN fora:• ASEANTelecommunicationsRegulators’CouncilMeeting• TelecommunicationsandITSeniorOfficials’Meeting(TELSOM)• TelecommunicationsandITMinisters’Meeting(TELMIN)• Borderco-ordinationmeetingstomanageandresolveanyfrequencyinterference

and allocation matters with Malaysia’s neighbours:1) Frequency Allocation Committee of Singapore, Malaysia and Brunei

(FACSMAB)2) JointTechnicalCommitteeonCo-ordinationandAssignmentofFrequencies

alongtheMalaysia-ThailandCommonBorder(JTC)3) Joint Communications Committee between Malaysia and Indonesia (JCC)4) Trilateral Co-ordination involving Indonesia, Malaysia and Singapore

The ASEAN ICT CentreThe ASEAN ICT Centre (AICTC) is a joint initiative by the ASEAN countries to manage and administer the ASEAN ICT Work Programme. The directorship of this virtual centre presently rests with Malaysia, namely in the person of SKMM’s Director of International Affairs, Puan Nur Sulyna Abdullah.

The AICTC has been instrumental in establishing procedures for project and fund management of the AICTC Fund and its disbursement towards the AICTC Work Programme. The centre also monitors the implementation of projects under the Work Programme.

For the 2008-2009 Work Cycle, the Governing Council of the AICTC, comprising Senior Officials for Telecommunications and IT in ASEAN, evaluated and subsequentlyagreed to concentrate funding on projects which accelerate regional integration and ICT development. It was also agreed that projects with complementary outcomes be merged, thus creating synergy and more focused outcomes.

For the 2008-2009 Work Cycle, there will be 11 projects for implementation under the AICTC which focuses on e-commerce, IPv6 readiness, broadband and content development.

ASEAN Cyberkids CampThe ASEAN Cyberkids Camp was a project under the current ASEAN ICT Work Programme and a joint project between SKMM and the Ministry of Energy, Water andCommunicationstogetherwithMaxisCommunicationsBerhad(Maxis).

The ASEAN Cyberkids Camp was a Malaysian initiative endorsed by the ASEAN MinistersforTelecommunicationsandITduringtheirmeetinginBalion29August2008. The ASEAN Cyberkids Camp was based on the highly successful MaxisCyberkids Camp, a home-grown programme aimed as bridging the digital divide and building ICT capabilities among children in rural schools in Malaysia.

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International AffairsSKMM continues to participate actively in international activities to promote Malaysia’s interest in the development of communications and multimedia within the international arena. More importantly, SKMM’s presence and participation in international fora ensures that Malaysia is able to:• Participate actively in influencing outcomes and developments in

international fora;• Manage progressive market liberalisation in the communications and

multimedia sectors;• Engage local communications and multimedia industry to identify export

opportunities; and• Keepabreastwithinternationaldevelopmentsandtrendsincommunications

and multimedia.

SKMM’s international activities are guided by the Communications and MultimediaAct(CMA)1998,inparticularthefirstNationalPolicyObjectiveto facilitate the transformation of Malaysia into an industry global hub. In planning and organising international engagements and activities, SKMM is

cognisant of the global communications and multimedia scenario especially the need to create resiliency in the industry during the global economic slowdown and to ensure that the country’s needs are met and protected.

SKMM engages with various international organisations listed in a Ministerial Direction issued under Section 269 of the CMA 1998. Working in close partnership with the policy-maker, SKMM represents Malaysia as the regulatory authority in communications and multimedia while at the same time builds and co-ordinates Malaysia’s international profile and activities for this industry.

Furthermore, SKMM collaborates with its various counterparts both regionally and internationally, to enhance regulatory measures and practices towards mutual industry competitiveness and growth, facilitate inbound and outbound investments and trade, as well as to develop network and human resource capabilities in communications and multimedia applications and transactions. These various engagements serve to create cross-border industry alliances andsmartpartnershipsforthegrowthoftheindustry.Consequently,SKMMis also involved in various bilateral and multilateral negotiations such as Free Trade Agreements and Economic Partnership Agreements with our trade

133Accelerating GrowthThrough Global Partnerships

• InternetCorporationforAssignedNamesandNumbers(ICANN)• InternationalMultilateralPartnershipAgainstCyberThreats(IMPACT)

IMPACT World Cyber Security SummitSKMM organised the inaugural IMPACT World Cyber Security Summit (IMPACT WCSS)whichwasheld inKualaLumpur from20 to22May2008.Thissummitsaw a gathering of ministers, industry leaders, technology luminaries and cyber security experts from 27 countries including Australia, Canada, India, Japan,Mexico,SaudiArabia,Singapore,SouthKorea,ThailandandtheUnitedStates.The IMPACT WCSS included the inaugural meeting of the IMPACT International AdvisoryBoard,aministerialroundtable,plenarysessionsandin-depthdiscussionson the latest cyber security threats, trends and issues facing countries.

The Summit was officiated by the former Prime Minister of Malaysia YABTun Abdullah Ahmad Badawi, who delivered the keynote address. H.E. Dr.HamadounToure,theSecretary-GeneraloftheITUalsodeliveredhisaddressduring the opening ceremony.

The goal of the inaugural summit was to chart the direction of IMPACT as a global multilateral collaborative platform for a joint partnership between governments and the private sector to combat cyber security threats. Part of the effort will include the establishment of an “early warning” system i.e. the IMPACT Centre for Global Responsewhichwill facilitateswift identificationandsharingof informationwithmember-governments during cyber security emergency and threats. It is envisioned that this system will actively monitor threats and be a focal point for governments during any cyber security incidences. The Centre aims to play an important role in policy formulation, international co-operation as well as become a centre for training and promulgation of cyber security best practices.

International Meetings Statistics 2008As at 31 December 2008, SKMM participated in international meetings categorised as follows:• ASEAN - 22 meetings

• APT - 14 meetings• ITU - 23 meetings• Border Co-ordination, Technical Committees - 33 meetings• Postal - 5 meetings• Internet - 5 meetings• APECTEL - 2 meetings• Satellite Co-ordination - 7 meetings• WTO, Trade Related - 2 meetings• Exhibitions - 1 event• Study Visits - 2 visits (outbound)• Others – 21 meetings

Visits to SKMMSKMM continues to welcome foreign delegations for study visits in response to requests to share our experiences in a converged environment. In 2008, wereceived a total of 16 delegations as listed in Table 1.

Table 1: Study Visits to MCMC by Foreign Delegations in 2008

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The ASEAN Cyberkids Camp was a joint effort among ASEAN members to promote regional integration, strengthen multilateral cooperation and bridge the digital divide. The camp which was held in Petaling Jaya and Kuala Lumpur drewparticipation from 120 primary and secondary school children and their teachers from Brunei Darussalam, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines,Singapore, Thailand and Vietnam.

During the week-long ICT camp, participants were taught computing, mobile applications and Internet skills. At the end of the camp, each country had to create a virtual museum of their respective cultures that incorporated multimedia, digital photography, audio editing and blogging. The camp aimed to equipand develop participants with the knowledge and skills to use technology and empower them to disseminate such skills to their peers, families and community upon their return.

Asia-Pacific RegionSKMMisactivelyinvolvedinthefollowingforaintheAsia-PacificRegion:• Asia-PacificTelecommunity(APT)• APECTelecommunicationsWorkingGroup(APECTEL)• Asia-PacificPostalUnion(APPU)• Asia-PacificBroadcastRegulators’Roundtable

APT General AssemblyTheAPTGeneralAssemblyisthesupremebodyoftheAsia-PacificTelecommunity(APT), which comprises all its Members and Associate Members. The General Assembly meets every three years to deliberate on the strategic direction of the APTforthenextcycleandconsequentlyestablishesgeneralpoliciesandprinciplesto achieve its objectives. It also determines the annual budgets and limits on expenditureaswellasaccedestoanyagreementswithexternalparties.

The11thAPTGeneralAssemblywasheldinKualaLumpurfrom11to13December2008 and was attended by 30 members of the APT including Australia, China, Iran, Japan, India, South Korea, Indonesia, New Zealand, Pakistan, Philippines, Singapore and Thailand; two associate members – Hong Kong and Macao; 10 affiliate members including TM International Berhad and Green Packet as wellas representatives from the Asia-Pacific Broadcasting Union (ABU) and theInternationalTelecommunicationUnion(ITU).

Duringtheassembly,YBhgDato’Dr.HalimMan,theSecretary–Generalofthethen Ministry of Energy, Water and Communications was elected to the post of PresidentoftheAPTforthenextthreeyears.

APT Management Committee MeetingThe 32nd session of the APT Management Committee Meeting was held immediately after the General Assembly from 15 to 18 December 2008. The management committee is made up of all Members and Associate Members and meets once every year. Its role is to act on the strategic plan, policies and principles decided during the General Assembly, review and approve the yearly work programme, annual budget and accounts as well as supervise the work of the Secretariat.

This Management Committee was attended by 29 countries including Australia, Bangladesh,Cambodia,Fiji,Korea,LaoPDR,Myanmar,SriLankaandVietnam,twoAssociateMembers,13AffiliateMembersaswellasrepresentativesfromtheAsia-PacificBroadcastingUnion(ABU)andtheInternationalTelecommunicationUnion(ITU).

The meeting saw the election of a new Chairman of the Management Committee. Mr. Kyu-JinWeefromSouthKoreatookoverfromMalaysia’sEncikBistamanSiruAbdulRahman who had successfully completed two consecutive terms as the Chairman.

13th Asia-Pacific Regulatory Roundtable (APRR)TheAsia-PacificRegulatoryRoundtable(APRR)isanannualmeetingattendedbyregulatorsofthebroadcastingindustryfromcountriesintheAsia-Pacificregion.The Regulatory Roundtable serves as a platform where broadcast regulators in the region discuss current issues relating to content and broadcasting with a view to sharingideas,experiencesandbestpractices.

The main purpose of the meeting is to:• Fostercloserrelationshipsamongbroadcastingregulatorsintheregion;• Share information, best practices and knowledge on new developments or

issues affecting the broadcasting environment; and• Promote co-operation between the regulators to address issues relating to

content and new media.

The organisation of the roundtable rotates every year. The 13th APRR was held at ImpianaHotel,KualaLumpurfrom28to30October2008.Priortothismeeting,Malaysia last hosted the APRR in 2001.

International/Intergovernmental OrganisationsSKMM actively participates in the following international fora:• InternationalTelecommunicationUnion(ITU)• UniversalPostalUnion(UPU)• WorldTradeOrganisation(WTO)

135

No. Foreign Delegates Date

1 CommunicationsandMediaCommissionofIraq 19 - 21 Feb

2 TheRadioandTelevisionSupremeCouncil(RTUK),Turkey 28 Feb

3 Hong Kong Trade Development Council and Hong Kong Digital Entertainment Mission

29 Feb

4 PermanentSecretary,MinistryofCommunications,BruneiDarussalam

21 Mar

5 Communications Commission of Kenya 28 - 30 Apr

6 AsiaPacificCarriers’Coalition(APCC) 10 Jul

7 The Corps des Telecommunications, France 10 Jul

8 Korea Association of Information Technology (KAIT) 18 Jul

9 MinistryofCommunications,BruneiDarussalam 21 - 25 Jul

10 MinistryofPostsandTelecommunications,Bangladesh 23 - 25 Sep

11 Communications Commission of Kenya 9Oct

12 MinistryofCommunications,BruneiDarussalam 30Oct

13 MayorofGuroDistrictandofficialsfromKOTRA,RepublicofKorea 5 Nov

14 MinistryofPostsandTelecommunications,BangladeshandBangladeshTelecommunicationsRegulatoryCommission(BTRC)

10 - 11 Nov

15 TheFrequencyManagementandTechnologyAnalysisDivisionof the Ministry of Information and Communications, Nepal

1 - 2 Dec

16 Ministry of Communications, Posts and Telegraphs, Myanmar 2 - 4 Dec

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Delivering Better Performance for Greater Effectiveness

10

136


138 Human Capital Development140 IT Strategic Review

We gain our strength to pursue greater excellence by continuing to deliver performance beyond expectations. This is achievable through combined efforts and commitment to modernise talent management practices, enhance learning and training, device creative-retaining practices, upgrade technological infrastructure and improve physical working environment.

Recognising the importance of talent, the Human Resource Department’s profile was elevated to become Human Capital Management Division (HCMD). Its bigger and enriched role is to provide strategic and managerial leadership stance besides strengthening the human resource team in order to manage the institutionalisation of SKMM’s talent management infrastructure. The establishment of HCMD also augurs well for its employees, as the division now has a full voice and representation in Executive Committee Meetings, among others.

With the establishment of HCMD, SKMM Academy was also institutionalised and is responsible in creating a centre of excellence among staff members and prepare them with the functional knowledge and opportunities for career growth.

Another senior management talent that was recruited to provide higher “horsepower” was for the Strategic Information System Division with its core function to integrate SKMM IT System and infrastructure and development of SKMM IT Strategic Blueprint.

In line with creating a positive and knowledge-based workplace culture, we initiated a structured induction programme for new recruits. The programme was designed to familiarise the recruits into SKMM’s workplace culture, become more engaged and equipped with a better understanding of the regulatory framework of SKMM.

Given the knowlege that about 3% of the strategic levels of P7 job grade and above will become eligible for retirement in the next three years, priority will be given to grow, attract and retain good talents in the near furture through our Succession Strategy Work Plan.

Talent strength as at 31 December 2008

Training and Learning ManagementThe establishment of SKMM Academy in 2008 is to support strategic thrust in capacity building in line with the national policy objectives for the Communications and Multimedia Industry as written in Section 3 (2) of CMA 1998.

It is also in tandem with the second key thrust of the 9th Malaysia Plan - “To raise the country’s capacity for knowledge and innovation and nurture ‘first class’ mentality…” and SKMM’s human resource development objective: To create a workforce within SKMM which is authoritative, competent and with high integrity much sought-after and highly admired by the industry.

These strategies will be put into action through the implementation of its training programme (external and internal).

Some of the programmes that were organised internally included:• SKMMInductionProgramme• FinanceforNonFinancialManagers• BusinessEtiquette:ProfessionalPresenceinBusiness• SpectrumMonitoringTechniques• SpectrumAuctionDesignandImplementationWorkshop

SKMM Academy also collaborated with universities and the industry to organise training programmes that benefitted both parties. Amongst the training programmes organised were:

• OverviewandFundamentalsofWiMAX(collaborationwithMMU)• ColloquiumonCommunicationsandMultimediaAct1998:Perspectivesand

WayForward(collaborationwithUMCoRS,UniversityofMalaya)• HFBroadcastingCo-ordination&Notification(collaborationwiththeITU)

During the year, SKMM Academy had invested a total amount of RM1.68 million on training with Average Cost per Employee of RM4,504.02. Total training days attended was 2,150 days with an Average Days per Employee of 5.7 days.

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Human Capital DevelopmentOverviewThe year 2008 has been significant in our continued pursuit to strengthen and enhance the organisation’s capabilities and capacity to achieve a higher level of efficiency and effectiveness in realising our responsibilities and roles. During the year, further progress was achieved to transform the Commission into a strategy focused organisation with innovation-driven practices.

TheOrganisationalTransformationandchangedfoundationthatwaslaid intheprevious year was further mobilised and structured with emphasis on organisational scorecards, performance management culture and system, internalising core values and improving service delivery system. In terms of Organisation and Human Capital initiatives, our key focus was ondeveloping internal talents in alignment to our performance-driven culture. This initiative, we envisaged, would lead to us having a better and stonger presence in industry development.

Continued emphasis was therefore placed on talent management, retaining core capabilities and investment in human capital through growing, attracting and retaining the talent pool.

Ourinvestmentinhumancapitaldevelopmentalsoincludedcontinuouslearningand developmental programmes to inculcate a high performance work culture.

Organisational Development The change management programmes in 2008 endeavoured to break new grounds in providing SKMM with enhanced capacities and capabilities to deal with the challenges brought about by a dynamic and uncertain external environment.

SKMM continued to promote performance improvement. The initiatives during the year focused on programmes to modernise talent management practices, enhance learning and training, improve processes to improve cycle time within client charter promise, upgrade technological infrastructure within human capital processes and improve the physical working environment.

OneofthetoolsthatSKMMadoptedin2007forthepurposeofenhancingtheprocessof performance management is the basic starter version of Balanced Scorecard.

The Balanced Scorecard approach emphasises the need to view organisational

performance from multiple dimensions, with emphasis on inter-linkages between strategy planners, decision-makers and strategy implementers.

In view of the breadth and depth of a communication regulator’s functions as well as its unique challenges posed, some adaptation of the Balanced Scorecard principles were required rather than direct absorption. Henceforth, many benchmark learning sessionswereundertakenwithfellowregulatorslikeBankNegaraMalaysia,EmployeesProvidentFund(EPF)andothers.

TheadoptionofaStrategyFocusedOrganisation(SFO),asaprincipalthemefororganisational capacity and capability development in 2008, has successfully paved the way for a more deliberate management of Key Performance Indicators (KPIs), focusing on areas relevant to the core objectives of the Commission.

The combined theme of Strategy Focused Organisation (SFO) and ProcessImprovement would be the centre of the organisational development programmes of the Commission for 2009.

The Talent Challenge In the next five years it is expected that the global market will regain its strength from the current global financial crisis. With this belief, we will therefore face a “talent challenge”. Consequence to this, there is a need to devise creative retaining practices and employ effective recruiting strategies to obtain a skilled and engaged employee database.

OurcurrentHRpracticesaregearedtomotivateandretainthebestemployeestomeet organisation goals and objectives. We source and hire candidates with the right experience, expertise and attitude and once recruited, we continuously manage their development and career paths through the creation of a positive workplace culture.

Attracting and Retaining Talent

139Delivering Better Performancefor Greater Effectiveness

Recruitment Resignation Promotion

There were 180 vacancies in 2008 with breakdown as follows:

NewHeadcount–159Resignation–21

There was 137 recruitments for the year of which 60% were for executive grade level (graduates).

There were 21 resignationsrecorded in 2008.

Employee Turnoverrate is at 7%.

There were 35 promotionsexercised in 2008.

Positions Grade NumberOfStaff Sub Total

ChiefOperatingOfficer P12 1 Executive

Senior Director P8 9

Director P7 22

Director P6 17

Deputy Director / Senior Executive /

Senior Engineer / Senior AnalystP5 61

Assistant Director / Executive /

Engineer / AnalystP4 137 247

Executive Secretary / Assistant

Executive / Technical SupportS3 12

Non-Executive

Assistant Executive / Secretary S2 90

Driver / General Worker S1 24 126

Total 373

processes within SISD. Besides monitoring compliance to IT Best Practices such as ITIL and CoBIT, it will also provide centralised project co-ordination/ management services for IT/ IT-related development projects within SKMM.

Infrastructure and System Support DepartmentThe role and responsibilities of the Infrastructure and System Support Department are:• EnsuretheSKMM’sITinfrastructureandsystemssupportthebusiness,and

enhance all of its core business processes, be they front office, back office, or enabling processes.

• ProvideaflexibleresponsiveITarchitectureframeworktoimprovedeliveryofservice to SKMM’s clients.

• Create an IT architecture framework process that is easy to manage andmonitor in the future.

• Improvethequality,integrityandavailabilityofSKMM’sdata.• Structurethe ITorganisation inawaythatsupportsthe implementationof

the strategy.

IT Help DeskTheyear2008saw thestartofa centralised internal ITHelpDesk–providingsupport services to further enhance the SISD role, consolidating all IT support requests efficiently and effectively for SKMM. The Help Desk is manned by two support staff members and operates from 8am – 7pm, with afterhours callsforwarded to an on-duty offsite staff member.

Moving Forward - IT/IS Strategic PlanIn line with the rapid technology advancement and to meet the industry and SKMM’s internal needs and the challenges ahead of technology in the coming years, SKMM engaged a consultant’s service to map out an overall five years SKMM IT/IS Strategic Plan Blueprint to support the vision and mission of SKMM.The overall objectives of the IT/IS Strategic Plan are to provide a common and shared IT Enterprise: • Platformtoenhancepublicservicelevels,supportimproveddecision-making

process, improve industry governance, facilitate information sharing and contribute to industry development;

• Create an IT architecture framework process that is easy to manage andmonitor in the future;

• Improvethequality,integrityandavailabilityofSKMM’sdata.

The IT/IS strategy plan provides the overall architecture of the ICT components, applications and infrastructure required by SKMM and introduces the component

parts of the applications system required, and explains sub-system level aspects of the overall strategy.

The IT/IS architecture framework is designed and developed according to the following principles:• Availability – This principle emphasises the degree to which the IT

infrastructure is operable and available for business and organisation functionality. It ensures that the IT infrastructure is built according to the required uptime.

• Scalability–Thisprincipleemphasises theability of IT infrastructure tohandlegrowth. The IT infrastructure must be able to manage with the Commission’s requirement over the next three to five years.

• Connectivity–Thisprincipleemphasises theabilityof IT infrastructure toprovide the necessary for the different type of connection required by the business or organisation solution.

• Security–ThisprincipleemphasisessecuringtheITinfrastructurefromallangles of the threat. The fundamental objective is to reduce the Commission’s risk to an acceptable level.

• Manageability – This principle emphasises the ease of management forthe IT infrastructure. The design will cater for an integrated management to simplify the administration and operation tasks.

Various deployment strategies and plans will be rolled out based on the proposed IT Strategic Plan in various stages in the years 2009 and 2010.

This is to ensure SKMM has an integrated Information Infrastructure, Enterprise Business Application and Knowledge Management are all well connected and collaborated to meet SKMM’s vision and mission for the next five years.

IT Strategic Review In June 2008, a new Division called the Strategic Information Services Division (SISD) was established with the vision of transforming SKMM’s IT from an internal support department into a strategic division actively involved in all SKMM strategic initiatives, namely providing efficient and integrated IT service delivery to internal divisions as well as establishing/developing interfaces to the industry. This new divisionisheadedbyanewseniordirector,EncikNikAzizNikYaacob.

As part of the transformation, three new departments were created, namely Infrastructure and System Support, Application Management, Security and Policy. Staffing within the new division comprised resources from Management Information Systems Department (MISD) and several new entries from the corporate sector. To prepare for a more efficient and strategic role, staff were assigned to the new department according to individual skill sets and technical inclination rather than broad-based IT skills.

Application Management DepartmentThe role and responsibilities of the Application Management Department are:• SuperviseandevaluateInformationSystemsrequirementsandresources.• ManageadiverseteamofITprofessionals(teamleaders,professionalservices

and outsourced resources).• Co-ordinate development issues and ongoing maintenance of the application

system.• Manage maintenance schedule and support activities; database tuning,

patches update, system upgrading, periodically server health-check, back-up and recovery processes, request/problem- solving for helpdesk.

• Co-ordinate SKMM’s staff on information retrieval to initiate/contributeenvironment of information and knowledge sharing.

Application Systems and OperationsFor2008,SISDsuccessfullyrolledoutthefollowingapplicationsystemstoimproveSKMM’s operations:a. Complaint Management System (Aduan SKMM)

- Manage complaints from the public on any issues related to the communications and multimedia sector, which include Internet services, Postal/Courier services, Digital Certifications, Telecommunication and broadcasting industries in Malaysia. The system also allowed the publictosubmitandmonitorcomplaintsloggedthroughURLaddresshttps://aduan.skmm.gov.my

b. e-Spektrum - Enable public to submit their Apparatus Assignment application

and monitor the application submission online through URL addresshttps://espektrum.mcmc.gov.my

c. e-Payment- Additional payment channel to enable the public to pay through Internet Banking

paymentgatewayservices;eitherthroughFinancialProcessExchange(FPX)orCreditCard(MIGS)throughURLaddresshttps://epayment.skmm.gov.my

d. SKMM Search Hub- Search Hub engine for SKMM’s website. User can search for specific

keyword and the intelligent search will locate the needed information throughURLaddresshttp://search.mcmc.gov.my

e. e-Info services Websitehttp://www.spectrumresearch.com.my - The website is designed to serve as a focal point for information, knowledge

development and research related to spectrum matters. It can also be utilised to develop knowledge resources in the management of spectrum. The services provided in this website provide platform collaboration, sharing and exchange of knowledge and expertise through, forum, chat, personal messages, document and information sharing.

http://www.wrcmalaysia.my - Portal for Spectrum Research collaboration programme. Besides that, the system enhancement is based on the existing application

systems; Human Resource Management System (HRMS), Spectrum Management System, e-Info Service Websites for the compliance, improvement and alignment toward IS strategic plan.

Security and Policy DepartmentJuly 2008 marked the birth of the new department within SISD called Security and Policy Department. Its main task is to refine and document IS Policies, Procedures and Processes. It undertook preliminary initiatives to develop and improve

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141Delivering Better Performancefor Greater Effectiveness

Head of Division

Help Desk Support

Security and Policy Infrastructure andSystem Support

ApplicationManagement

Applicationand web

Help Desk and Support

Applications Network

Building 1Malaysia Through ICTConvergence

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144 Corporate Highlights

We unite all Malaysians through nurturing of local contents and culture, facilitating a single ICT resource centre for industries to look for manpower, capital and knowledge as well as creating a single, robust application environment where everyone can easily access to ICT services in any part of Malaysia.

Corporate Highlights

1 19 Jan East-West Highway Tower Launch, Gerik

2 22 Jan Launch of Communications Tower Pulau Tuba and Pusat Komputer Jalurlebar Perpustakaan Awam Kuah, Langkawi

3 23 Feb Launch of e-Komuniti Tuaran and Launching T2 Services in Kg Batangan, Tuaran, Sabah

4 28 Feb Launch of Broadband Library @ Perpustakaan Awam Samarahan

5 29 Feb Launch of the Community Broadband Centre and Launch of Time 2 Communications Tower in Simunjan District in Sarawak

6 1 Mar Launch of SKMM Sandakan Branch, Sabah

7 14 Mar Networked Content Development Grant (NCDG) Awards Ceremony, SKMM Auditorium

8 30 Mar Launch of the Domestic Roaming Tower in Jeli, Kelantan

9 1 Apr Conference on Malaysian Communications and Multimedia Market 2008, SKMM Auditorium

10 3 Apr UCC Launch in Gerai JKKK, Kg Sg Pinggan, Benut Pontian, Johor

11 4 Apr Launch of Tower T2 in Tanjung Piai, Kukup Pontian Tanjung Piai Resort, Johor

12 19 Apr Launch of CATI Centre and Official Launch of the SKMM Household Use of the Internet Survey 2008, Wisma Pahlawan, Kuala Lumpur

13 12 May Launch of KL Wireless Metropolitan Project, Menara DBKL

14 20-23 IMPACT World Cyber Security Summit, May Shangri-La Hotel, Jalan Sultan Ismail,

Kuala Lumpur

15 3 Jun Mobile Digital Signature Symposium 2008, SKMM

16 12-13 USP Symposium on Communication Jun Technologies for Underserved

Communities, Klana Resort, Seremban

17 15 Oct Launch of Mobile Number Portability

18 28-30 Experiencing Convergence, Oct MyBroadband ’08 Conference &

Exhibition at KLCC

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145Building 1MalaysiaThrough ICT Convergence

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Maintaining Transparencyand Good Governance

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148 Governance and Audited Financial Statements

As the main regulator and industry developer of Communications and Multimedia in Malaysia, good governance is fundamental to SKMM’s operations. The principle of good governance, which is ingrained in the Malaysian Communications and Multimedia Commission Act 1998, calls for transparency to ensure stakeholders’ confidence in the decisions made by SKMM, and understand how SKMM contributes to industry growth and consumer protection.

Governance and AuditedFinancial StatementsIn general, corporate governance refers to oversight mechanisms, including the processes, structure and information used for directing and overseeing the management of an entity*. It encompasses the means by which members of the board and senior management are held accountable for their actions as well as establishment and implementation of oversight functions and processes. In the context of the public sector, governance relates to the structures and processes for decision-making, responsibility and accountability at the leadership level.

SKMM considers governance as fundamental to its operations as its actions and decisions would have a significant impact on the stakeholders. The principles of good governance is ingrained in the Malaysian Communications and Multimedia Commission Act (MCMCA) 1998 where the powers and functions of SKMM are specified. SKMM, primarily, is required to play a dual role, as an industry developer and industry regulator. As an industry developer, it recommends regulatory policies and implements policy decisions contained in the legislations and Ministerial Directions provided for under the Communications and Multimedia Act (CMA) 1998.

The CMA 1998 establishes the framework for regulating the communications and multimedia sector. A significant feature of the CMA 1998 is the identification of the Government’s National Policy Objectives (NPO) for the communications and multimedia sector. The 10 NPOs provide the basis and rationale for policy formulation and regulatory intervention. The communications and multimedia sector is a constantly evolving sector, dictated by technology changes and the NPO gives the direction for the communications and multimedia industry.

SKMM is committed to transparency and public disclosure within the confidential boundary stipulated under the MCMCA 1998 and CMA 1998. The principle of transparency which underpins good corporate governance is very much a significant feature of the regulatory framework in the CMA 1998. The principle of openness is clearly embedded in the CMA 1998 wherein SKMM has the obligation to carry out public inquiry and consultations with the stakeholders on matters of significant interest to the public or licencees. A public inquiry may be launched by SKMM on its own initiative, or by a request from a person. Alternatively, the Minister may direct SKMM to conduct a public inquiry. A public inquiry will generally involve the Commission’s announcement of the inquiry and call for submissions in respect of the matters being examined. SKMM then must publish a report of its findings as a result of the inquiry.

The principle of transparency is also reflected in the provision pertaining to the maintenance of registers. SKMM has the obligation under the CMA 1998 to maintain registers in both the physical and electronic forms. The matters that are required to be registered include Ministerial Directions, Ministerial Declarations, Ministerial Determinations, Commission Directions, Commission Determinations, licences issued and spectrum assigned to licencees.

Another feature of transparency which is uniquely provided for in the CMA 1998 is the requirement for SKMM to provide a written statement of reasons if requested by a person who is aggrieved or whose interest is adversely affected by any decision of SKMM.

The sound governance mechanism provided in the CMA 1998 is aimed to give confidence to the stakeholders in the decisions made by SKMM and ensure that they have a full understanding of the way SKMM implements Government policies and how these would contribute to industry growth and consumer protection.

As a statutory body, SKMM is accountable for the public funds that it maintains and the expenditure that it incurs for the performance of its statutory duties. It is a requirement under the MCMCA 1998 for the audited financial statements of the Commission together with a report dealing with the activities of the Commission for each preceding financial year to be tabled to the Parliament. This is done through submission of the annual report of SKMM to the Minister who shall cause the annual report to be laid before both Houses of Parliament.

Based on SKMM’s given role, the need to maintain its operational independence and protect its reputation, SKMM subscribes to three basic values, namely Authoritativeness, Integrity and Competence (AIC).

Governance StructureThe Commission consists of nine members appointed by the Minister as follows:a) Chairman;b) three members representing the Government; andc) not less than two but not more than five other

members.

The Commission is chaired by YBhg. Datuk Dr. Halim Shafie and its detailed composition is published in pages 7-15. By virtue of Section 20 of the MCMCA 1998, the Chairman of the Commission is also the Chief Executive. Besides YBhg. Datuk Dr. Halim Shafie, Encik Mohamed Sharil bin Mohamed Tarmizi, the Chief Operating Officer of the Commission, is the only other member who is from SKMM’s Senior Management Team. The Commission meets at least once a month.

The Commission has oversight over the fulfilment of SKMM’s general duties and specific statutory responsibilities as specified under the MCMCA 1998 and CMA 1998 while the Chairman, who is also Chief Executive, is responsible for the overall administration, management of the functions and

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149Maintaining Transparencyand Good Governance

the-day-to-day affairs and has general control of the employees of the Commission. In discharging his duties, the Chief Executive acts under the general authority and directions of the Commission. He chairs the Executive Committee which comprises the senior management team responsible for the operations and management of the strategy and overall direction of the organisation. The Executive Committee meets on a weekly basis. The Members of the Executive Committee are as listed on page 150.

MeetingsIn 2008, the following meetings were held at the Commission level:a) 13 Commission meetings;b) 3 Audit Committee meetings;c) 3 Human Resource Committee meetings;d) 2 Networked Content Development Grant Committee

meeting; ande) 1 Stamp Advisory Committee meeting;

and at the Management level:f) 44 Executive Committee meetings; g) 20 Licensing Committee meetings; andh) 2 Finance Committee meetings.

During the year in review, in addition to the above governance activities, regular briefings were conducted to the Minister of Energy, Water and Communications to present SKMM’s views on issues and challenges confronting the communications and multimedia industry in Malaysia, and to discuss the implementation of various policy recommendations.

In fulfilling its duties as a statutory authority, SKMM, whenever required, provides briefings to the Members of Parliament.

Internal ControlSKMM previously outsourced its internal audit function to M/s Deloitte Enterprise Risk Services

to assist the Audit Committee in assessing the adequacy and integrity of the Commission’s system of internal control. However, during the year in review, in order to further enhance the internal control of the organisation, the Internal Audit Department was established in June 2008.

In 2008, SKMM migrated from the cash basis financial reporting system to accrual basis as well as adopted full Financial Reporting Standards (FRS). To ensure that the migration to the accrual accounting reporting system was implemented successfully, the internal audit reviews were mainly focused on revenue assurance.

The internal auditors also ensured that recommendations to improve internal audit controls were followed through by the Management and it will continue with its assessment of the sufficiency of the internal control systems from time to time based on the approved internal audit plan.

Relationship with External AuditorsSKMM ensures that there is a formal and transparent arrangement for the achievement of the objectives and maintenance of a professional relationship with the external auditors through the Audit Committee. The role of the auditors and their participation during the year is stated in the Report of the Audit Committee.

Committees of The CommissionAs provided under Section 15 of the MCMCA 1998, the Commission established the following committees to assist the Commission in the performance of its functions.

Audit Committee The Audit Committee comprises three members of the Commission. During the year in review, there was a change in the membership of the Audit Committee. Encik Mohamed Sharil Mohamed Tarmizi resigned as a Member of the Audit Committee in June 2008 when

he became the Chief Operating Officer of SKMM. Subsequently, YBhg. Datuk Mohd Zain Mohd Dom, a Commission Member representing the Government was appointed as a member of the Audit Committee. Currently, the Members of the Audit Committee Members are YBhg. Datuk Dr. Abdul Samad bin Hj. Alias who is the Chairman of the Audit Committee, YBhg. Tan Sri Datuk C. Rajandram and YBhg. Dato’ Mohd. Zain Mohd. Dom.

The Audit Committee’s primary function is to assist the Commission in fulfilling its responsibilities with respect to:a) Approval of the audited Statement of Accounts

of the Commission which shall include a balance sheet and income and expenditure statement of the SKMM Fund and USP Fund for the preceding financial year;

b) Oversight in respect of the adequacy of the system of internal control that management has established; and

c) Oversight of the internal and external audit processes.

The Audit Committee is granted with the authority to investigate any matter or activity involving financial accounting and financial reporting, as well as the internal control of the Commission. In this regard, the Committee will have the authority to approve the retention of external professionals to render advice and counsel in such matters.

During the financial year, the main activities of the Audit Committee included:a) Reviewing the Financial Statements of the SKMM

Fund and USP Fund for the year ended 31 December 2008 prior to its presentation to the Commission and onward submission to the Minister;

b) Reviewing and approving the external and internal audit plans for the financial year; and

c) Reviewing the internal audit findings and recommendations.

*Malaysian Code of Corporate Governance 2002.

The Chief Operating Officer, the Senior Director of Management Services, Finance and Accounts Director are in attendance at all Audit Committee meetings, as are the internal auditors. The external auditors, however, are required to attend the meetings based on invitation. Apart from being tabled to the Commission, the decisions of the Audit Committee are followed up through the Management Finance Committee chaired by the Chairman of SKMM.

Human Resource CommitteeYBhg. Dato’ Dr. Halim Man, a member representing the Government is the Chairman of the Human Resource Committee. The other members of the Human Resource Committee are YBhg. Datuk Dr. Halim Shafie, former Chairman of SKMM and Y.M.Tengku Zaib Raja Ahmad, the Senior Director of Human Capital Division who replaced Tuan Hj. Ruzlan Zabidi, the Senior Director, Management Services Division in November 2008.

During the year in review, the Human Resource Committee met three times to deliberate on matters pertaining to recruitment and promotion of senior directors, senior management, recommendation for the payment of bonus and annual salary increment for the approval of the Members of the Commission.

Networked Content DevelopmentGrant Management CommitteeThe Networked Content Development Grant Management Committee (NMC) is chaired by YBhg. Dato’ Dr. Halim bin Man, a Member representing the Government. The other members of the NMC are two senior directors from SKMM and senior officials representing the Ministry of Energy, Water and Communications. The NMC is authorised by the Commission to consider and approve the recommendations by the Networked Content Development Grant Business Technical Committee (NBTC) for award of the grants to the successful applicants. In 2008, the NMC met twice and deliberated on the recommendations of the NBTC. Six applications for grants were approved in 2008, the details of which are elaborated in the section on content development activities.

Stamp Advisory Committee The Stamp Advisory Committee of the Commission is entrusted with the responsibility to consider and recommend the annual stamp themes and the number of themes appropriate to be issued in the year for the Minister’s approval.

The Stamp Advisory Committee is chaired by YBhg. Datuk Dr. Halim Shafie, Chairman of SKMM, while the members of the committee consist of representatives from

the Ministry of Energy, Water and Communications (KTAK), Pos Malaysia Bhd. and Philatelic Society of Malaysia, and they are:• Encik Suandi Hassan (Representative of the Ministry of Energy, Water and

Communications on behalf of the Secretary General);• DatukAbuHurairabinAbuYazid,ChiefExecutiveofPosMalaysiaBhd;• Y.M.ProfessorDato’RajaZahabuddinbinRajaYaacob;• Mr.V.T.Nathan;and• Mr.C.Nagarajah.

In 2008, the Stamp Advisory Committee approved 15 stamp themes. The detailed list of the stamp themes issued in 2008 is reported in the Postal section of the Annual Report.

Members of the Executive CommitteeYBhg. Datuk Dr. Halim Shafie – Chairman

Members:Encik Mohamed Sharil Mohamed Tarmizi (with effect from 16 June 2008) – Chief Operating Officer YBhg. Dato’ Jailani Johari – Senior Director, Universal Service ProvisionZamani Zakariah – Senior Director, MyICMSToh Swee Hoe – Senior Director, Research and PlanningMohd Aris Bernawi – Senior Director, Resource Assignment and ManagementAmarjit Singh – Senior Director, Content, Consumer, Network Security and PostalMohd Ali Hanafiah – Senior Director, Technology, Standards and NetworkLaila Hassan – Acting Senior Director, Licensing and Economic RegulationsRuzlan Zabidi – Senior Director, Management ServicesNik Abdul Aziz Nik Yaacob (with effect from 2 June 2008) – Senior Director, Strategic Information and SystemTengku Zaib Raja Ahmad (with effect from 11 August 2008) – Senior Director, Human Capital Management Dato’ Tengku Sarafudin Badlishah – Director, Legal and Secretarial

In Attendance:Nur Sulyna Abdullah – Director, International AffairsZeti Marziana Muhamed – Director, Corporate CommunicationsNuraffiza Ahmad /Sharina Md Deris - Secretary

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151

Financial Statements for the Year Ended 31 December 2008


We, Datuk Dr. Halim bin Shafie and Datuk Dr. Abdul Samad Hj. Alias, being two of the Members of the Malaysian Communications and Multimedia Commission, do hereby state that in the opinion of the Members of the Commission, the financial statements set out on pages 155 to 170 are drawn up in accordance with applicable approved Financial Reporting Standards issued by the Malaysian Accounting Standards Board so as to give a true and fair view of the state of affairs of the Malaysian Communications and Multimedia Commission as at 31 December 2008 and of its income and expenditure and cash flow for the year ended on that date.

On behalf of Members of the Malaysian Communications and Multimedia Commission:

.........……………………………… …………………..………………. Datuk Dr. Halim bin Shafie Datuk Dr. Abdul Samad Hj. Alias Chairman Commission Member

Selangor,Date: 28 April 2009

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153Statement by the Members of the Malaysian Communications and Multimedia Commission Statutory Declaration

I, Hj. Ruzlan Zabidi, the officer primarily responsible for the financial management of the Malaysian Communications and Multimedia Commission, do solemnly and sincerely declare that the financial statements set out on pages 155 to 170 are, to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of the provisions of the Statutory Declarations Act, 1960.

Subscribed and solemnly declared by the abovenamed in Kuala Lumpur on 28 April 2009.

.........……………………………… Hj. Ruzlan Zabidi

Before me:


154Independent Auditors’ Report to the Members of the Malaysian Communications and Multimedia Commission

We have audited the financial statements of the Malaysian Communications and Multimedia Commission (“Commission”), which comprise the balance sheet as at 31 December 2008, and the income and expenditure statement, statement of total recognised gains and losses and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 155 to 170.

Commission Members’ Responsibility for the Financial StatementsThe members of the Commission are responsible for the preparation and fair presentation of these financial statements in accordance with the Financial Reporting Standards in Malaysia. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors’ ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Commission’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Commission’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Members, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the financial statements have been properly drawn up in accordance with the Financial Reporting Standards in Malaysia so as to give a true and fair view of the financial position of the Commission as of 31 December 2008 and of its financial performance and cash flows for the year then ended.

Other MattersThis report is made solely to the members of the Commission, as a body, in accordance with Section 47(2) of the Malaysian Communications and Multimedia Commission (MCMC) Act 1998 and for no other purpose. We do not assume responsibility to any other person for the content of this report.

KPMG Mohamed Raslan Abdul Rahman Firm Number: AF 0758 Approval Number: 1825/05/09(J/PH) Chartered Accountants Chartered Accountant

Petaling Jaya,Date: 28 April 2009


Balance Sheet as at 31 December 2008

2008 2007 Note RM’000 RM’000 Assets Property, plant and equipment 3 135,533 104,127

Current assets Fees and other receivables 4 29,006 40,569 Cash and cash equivalents 5 1,173,278 990,668 Total current assets 1,202,284 1,031,237 Total assets 1,337,817 1,135,364 Represented by: Accumulated fund 6 1,091,364 916,565

Liabilities

Non-current liability Deferred income 7 129,310 128,901

Current liabilities Deferred income 7 69,735 58,520 Other payables and accrued expense 8 45,662 30,120 Taxation 1,234 48 ProvisionforTVreceiverlicencesrefund 9 - 95 Federal consolidated fund 10 512 1,115

Total current liabilities 117,143 89,898

Total liabilities 246,453 218,799

1,337,817 1,135,364

The notes on pages 160 to 170 are an integral part of these financial statements.

155


Income and Expenditure Statement for the Year Ended 31 December 2008

2008 2007 Note RM’000 RM’000 Income Operating licence fees 77,788 72,263 Spectrum fees 220,071 179,383 Interest income 39,074 33,684 Gain on disposal of property, plant and equipment 99 - Reversal of allowance for doubtful debts 215 2,492 Other income 3,400 1,110

340,647 288,932 Expenditure Rebates for operating licence fees - 632 Human resource expenses 33,353 26,012 Administrative expenses 34,734 30,737 Audit fee 42 55 Rental expenses - premises 739 690 - network 863 1,473 - others 385 426 Depreciation of property, plant and equipment 25,542 9,899 Allowance for doubtful debts 1,332 1,827 Others 3,635 1,574 100,625 73,325 Excess of income over expenditure before tax 240,022 215,607

Tax expense 11 (10,223) (9,090) Excess of income over expenditure after tax 229,799 206,517


Statement of Total Recognised Gains and Losses for the Year Ended 31 December 2008

The Commission Members have not recognised gains and losses other than the net surplus for the current financial year and the previous financial year.


156 157Maintaining Transparencyand Good Governance


2008 2007 RM’000 RM’000 Cash flows from operating activities Excess of income over expenditure before tax 240,022 215,607 Adjustments for: Interest income (39,074) (33,684) Depreciation of property, plant and equipment 25,542 9,899 Gain on disposal of plant and equipment (99) - Operating surplus before changes in working capital 226,391 191,822 Changes in working capital: Fees and other receivables 15,593 249,716 Federal consolidated fund (603) 1,115 Deferred income 11,624 44,734 Other payables and accrued expenses 15,447 (11,028) Cash generated from operations 268,452 476,359 Tax paid (9,037) (9,175) Net cash generated from operating activities 259,415 467,184 Cash flows from investing activities Proceeds from disposal of property, plant and equipment 99 - Acquisition of plant and equipment (56,948) (27,409) Interest received 35,044 23,324 Net cash used in investing activities (21,805) (4,085) Cash flows from financing activities Payment to the consolidated trust fund (45,000) (115,000) Contribution to the Sarawak Rural Broadband Initiative Project (10,000) - Refund to individual licencee - (289) Net cash used in financing activities (55,000) (115,289)

Net increase in cash and cash equivalents 182,610 347,810 Cash and cash equivalents at 1 January 990,668 642,858 Cash and cash equivalents at 31 December 1,173,278 990,668


Cash Flow Statement for the Year Ended 31 December 2008

2008 2007 RM’000 RM’000 Cash and cash equivalents comprise: Deposits placed with licenced banks 1,172,261 989,558 Cash and bank balances 1,017 1,110 1,173,278 990,668


Cash Flow Statement for the Year Ended 31 December 2008 (continued)



Principal ActivitiesThe principal activities of the Malaysian Communications and Multimedia Commission are to implement and to enforce the provisions of the communications and multimedia laws as stipulated in the Communications and Multimedia Act (CMA) 1998 and the Malaysian Communications and Multimedia Commission Act (MCMCA) 1998.

The address of the principal place of business is as follows:

Principal place of business63000 CyberjayaSelangor Darul Ehsan

The financial statements were approved by the Commission’s Members on 28 April 2009.

1. Basis of Preparation

(a) Statement of compliance The financial statements of the Commission have been prepared in accordance with applicable approved Financial Reporting Standards (FRS) issued by the

Malaysian Accounting Standards Board (MASB) and accounting principles generally accepted in Malaysia.

The Commission has not applied the following accounting standards (including its consequential amendments) and interpretation that have been issued by the Malaysian Accounting Standards Board (MASB) but are not yet effective:

FRSs / Interpretation Effective date FRS 4, Insurance Contracts 1 January 2010 FRS 7, Financial Instruments: Disclosures 1 January 2010 FRS 8, Operating Segments 1 July 2009 FRS 139, Financial Instruments: Recognition and Measurement 1 January 2010 IC Interpretation 9, Reassessment of Embedded Derivatives 1 January 2010 IC Interpretation 10, Interim Financial Reporting and Impairment 1 January 2010

The Commission plans to apply the rest of the abovementioned FRSs / Interpretation from the annual period beginning 1 January 2010.

FRS 4, FRS 8 and IC Interpretation 10 are not applicable to the Commission, hence no further disclosure is warranted.

The impact of applying FRS 7, FRS 139 and IC Interpretation 9 on the financial statements upon first adoption as required by paragraph 30(b) of FRS 108, Accounting Policies, Changes in Accounting Estimates and Errors is not disclosed by virtue of the exemptions given in the respective FRSs. The initial application of the above standards (and its consequential amendments) and interpretation is not expected to have any material impact on the financial statements of the Commission.

Notes to the Financial Statements Notes to the Financial Statements (continued)

1. Basis of Preparation (continued)(b) Basis of measurement The financial statements have been prepared on the historical cost basis.

(c) Functional and presentation currency These financial statements are presented in Ringgit Malaysia (RM), which is the Commission’s functional currency. All financial information presented in RM

has been rounded to the nearest thousand, unless otherwise stated.

(d) Use of estimates and judgements The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting

policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the

estimate is revised and in any future periods affected.

There are no significant areas of estimation uncertainty and critical judgement in applying accounting policies that have significant effect on the amounts recognised in the financial statements other than those disclosed in the following notes:

•Note4-allowancefordoubtfuldebts

2. Significant Accounting Policies The accounting policies set out below have been applied consistently to the periods presented in these financial statements, and have been applied consistently by

the Commission, unless otherwise stated.

(a) Property, plant and equipment

(i) Recognition and measurement Items of property, plant and equipment are stated at cost less any accumulated depreciation and any accumulated impairment losses.

Cost includes expenditure that are directly attributable to the acquisition of the asset and any other costs directly attributable to bringing the asset to working condition for its intended use, and the cost of dismantling and removing the items and restoring the site on which they are located. The cost of self-constructed assets also includes the cost of materials and direct labour. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

When significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.



Notes to the Financial Statements (continued)

2. Significant Accounting Policies (continued)(a) Property, plant and equipment (continued)

(i) Recognition and measurement (continued) Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount

of property, plant and equipment and are recognised net within “other income” or “other operating expenses” respectively in the income statements.

(ii) Subsequent costs The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future

economic benefits embodied within the part will flow to the Commission and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The cost of the day-to-day servicing of property, plant and equipment are recognised in the income statements as incurred.

(iii) Depreciation Depreciation is recognised in the income statement on a straight-line basis over the estimated useful lives of each part of an item of property, plant

and equipment. Freehold land is not depreciated. Property, plant and equipment under construction are not depreciated until the assets are ready for their intended use.

The estimated useful lives for the current and comparative periods are as follows: •Officeandcommunicationsequipment 6–7years •Computerequipment 3–5years •Furnitureandfittings 6–7years •Motorvehicles 5years •Building 50years

Depreciation methods, useful lives and residual values are reassessed at the balance sheet date.

(b) Fees and other receivables Fees and other receivables are stated at cost less allowance for doubtful debts.

(c) Cash and cash equivalents Cash and cash equivalents consist of cash on hand, balances and deposits with banks.

(d) Provisions A provision is recognised when it is probable that an outflow of resources embodying economic benefits will be required to settle a present obligation (legal

or constructive) as a result of a past event and a reliable estimate can be made of the amount.

(e) Liabilities Other payables are stated at cost.


2. Significant Accounting Policies (continued)(f) Impairment of assets The carrying amounts of assets except for financial assets are reviewed at each reporting date to determine whether there is any indication of impairment.

If any such indication exists, then the asset’s recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less cost to sell. In assessing value in use, the

estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash generating units”).

An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in the income statement. Impairment losses recognised in respect of cash-generating units are allocated to the assets in the unit (groups of units) on a pro-rata basis.

Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An

impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. Reversals of impairment losses are credited to the income statement in the year in which the reversals are recognised.

(g) Tax expense Tax expense is in respect of tax on interest income received during the financial year. All other income is exempted from taxation as the Commission is tax

exempt under Section 127(3) of the Income Tax, 1967.

Tax expense comprises current and deferred tax. Tax expense is recognised in the income statements except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

Deferred tax is recognised using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for

reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for temporary differences that affects neither accounting nor taxable profit (tax loss). Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax liability is recognised for all taxable temporary differences.

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.




2. Significant Accounting Policies (continued)(h) Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currency of the Commission at exchange rates at the dates of the transaction.

Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the exchange rate at that date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Foreign currency differences arising on retranslation are recognised in the income statement.

(i) Recognition of income i) Operating licence fees Operating licence fees are recognised on the following basis:

a) a minimum RM50,000 or a maximum licence fees of 0.50% of Gross Annual Turnover is recognised on an accrual basis upon the anniversary of the licence and annually thereafter.

b) the difference between the minimum and the maximum refers to maximum rebates of 0.35% given to licencees only upon meeting the criteria set and approved by the Commission.

ii) Spectrum fees Spectrum fees consists of apparatus and spectrum assignment fees. Renewal notifications are sent to the assignment holders before the expiry of the

assignment. Upon receiving the notification, the assignment holders are required to make a fresh application for new assignment. Spectrum fees are recognised on accrual basis over the licencee periods granted.

iii) Interest income Interest income is recognised in the income and expenditure statement as it accrues, taking into account the effective yield on the asset.

(j) Employee benefits Short-term employee benefits Short-term employee benefit obligations in respect of salaries, annual bonuses, paid annual leave and sick leave are measured on an undiscounted basis

and are expensed as the related service is provided.

A provision is recognised for the amount expected to be paid under short-term cash bonus if the Commission has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

The Commission’s contributions to statutory pension funds are charged to the income statement in the year to which they relate. Once the contributions have been paid, the Commission has no further payment obligations.


3. Property, Plants and Equipment

Office and Furniture Capital Communications Computer and Motor Freehold Work-In- Equipment Equipment Fittings Vehicles Land Building Progress Total RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Cost At 1 January 2007 4,506 46,672 2,728 4,361 10,873 36,729 26,678 132,547 Additions 465 1,456 239 1,275 - - 23,974 27,409

At 31 December 2007/ 1 January 2008 4,971 48,128 2,967 5,636 10,873 36,729 50,652 159,956 Additions 355 49,493 291 1,133 - - 5,676 56,948 Disposals - - - (444) - - - (444) Reclassification - 56,118 - - - - (56,118) - At 31 December 2008 5,326 153,739 3,258 6,325 10,873 36,729 210 216,460

Accumulated depreciation At 1 January 2007 1,816 39,008 938 2,454 - 1,714 - 45,930 Charge for the year 668 7,282 418 796 - 735 - 9,899

At 31 December 2007/ 1 January 2008 2,484 46,290 1,356 3,250 - 2,449 - 55,829 Charge for the year 728 22,864 458 757 - 735 - 25,542 Disposals - - - (444) - - - (444)

At 31 December 2008 3,212 69,154 1,814 3,563 - 3,184 - 80,927

Net book value At 31 December 2006 2,690 7,664 1,790 1,907 10,873 35,015 26,678 86,617

At 31 December 2007/ 1 January 2008 2,487 1,838 1,611 2,386 10,873 34,280 50,652 104,127

At 31 December 2008 2,114 84,585 1,444 2,762 10,873 33,545 210 135,533




4. Fees and Other Receivables 2008 2007 RM’000 RM’000 Fees receivables 8,684 22,803 Less: Allowance for doubtful debts (5,933) (4,816)

2,751 17,987 Interest income receivables 25,328 21,298 Advances to staff 154 523 Other deposits 387 500 Other receivables 76 58 Staff loans 310 203 29,006 40,569

5. Fees and Other Receivables 2008 2007 RM’000 RM’000 Deposits placed with licenced banks 1,172,261 989,558 Cash and bank balances 1,017 1,110

1,173,278 990,668

6. Accumulated Fund 2008 2007 RM’000 RM’000 Initial fund 60,000 60,000

Accumulated surplus brought forward 856,565 765,337 Payments made to the consolidated trust fund (45,000) (115,000) Contribution to the Sarawak Rural Broadband Initiative Project (10,000) - Refunds to individual licencee - (289)

801,565 650,048 Excess of income over expenditure after tax 229,799 206,517 Accumulated surplus carried forward 1,091,364 916,565

The initial fund has been utilised to finance the working capital of the Commission.


7. Deferred Income 2008 2007 RM’000 RM’000 Current Spectrum fees 3G spectrum assignment fees 21,506 19,188 Apparatus assignment fees 47,540 39,332 Operating licence fees Class licence fees 589 - Individual licence fees 100 -

69,735 58,520

Non-current Spectrum fees 3G spectrum assignment fees 128,794 128,249 Apparatus assignment fees 516 652

129,310 128,901

Deferred income relates to the amount of unearned income from advance payment by licencees for future financial periods.

8. Other Payables and Accrued Expense 2008 2007 RM’000 RM’000 Other payables 8,588 8,047 Accrued expenses 37,074 22,073

45,662 30,120

Included in accrued expenses is an amount of RM7,780,000 (2007 - RM7,780,000) of licensing fees which is refundable to Telekom Malaysia Berhad.

9. Provision for TV Receiver Licences Refund ProvisionforTVreceiverlicencesrefundrepresentsprovisionforamountrefundabletoTVlicenceholdersinviewoftheabolishmentoftelevisionlicenceswith

effect from 1 April 1999 as a result of the repeal of the Broadcasting Act 1988.

10. Federal Consolidated Fund Compounds paid by offenders to the Commission due to non-compliance with the Communications and Multimedia Act 1998 or its regulations and is payable to

the Federal Consolidated Fund.




11. Tax Expense 2008 2007 RM’000 RM’000 Income tax expense - current year 10,159 9,048 - prior year 64 42 10,223 9,090 Reconciliation of tax expense Excess of income over expenditure before taxation 240,022 215,607 Tax at statutory tax rate of 26% (2007: 27%) 62,406 58,214 Tax exempt income (78,409) (68,917) Non-deductible expenses 26,162 19,751

10,159 9,048 Under provision in prior year 64 42 Tax expense 10,223 9,090 The Commission has been granted tax exemption from Year of Assessment 2000 onwards by the Ministry of Finance under Section 127(3)(b) of the Income Tax

Act, 1967. The current tax expense is in respect of interest income not exempted from tax.

12. Key Management Personnel Compensation The key management personnel compensation is as follows: 2008 2007 RM’000 RM’000

Commission and Executive Committee members’ remuneration 3,507 2,585

13. Capital Commitment 2008 2007 RM’000 RM’000 Property, plant and equipment Authorised but not contracted for 15,000 10,000 Contracted but not provided for and payables - 51,966

15,000 61,966


14. Related Parties Identity of related parties For the purpose of these financial statements, parties are considered to be related to the Commission if the Commission has the ability, directly or indirectly, to

control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Commission and the party are subject to common control or common significant influence. Related parties may be individuals or other entities.

Key management personnel are defined as those persons having authority and responsibility for planning, directing and controlling the activities of the Commission, either directly or indirectly. The key management personnel includes all the Members of the Commission, and certain members of senior management of the Commission.

The Commission has a related party relationship with its Members and key management personnel.

Transactions with key management personnel There are no other transactions with key management personnel other than key management personnel compensation as disclosed in Note 12.

Other related party transactions There are no significant related party transactions other than those disclosed in Note 12 in the financial statements.

15. Financial Instruments Financial risk management objectives and policies The Commission’s activities are exposed to a variety of financial risks, including interest rate risk, liquidity and cash flow risks and credit risk.

The Commission’s overall financial risk management objective is to ascertain, to address and to control the risks to which the Company is exposed so as to minimise the financial downside risks at reasonable costs.

The Commission Members are primarily responsible for the management of these risks and to formulate policies and procedures for the management thereof. The management regularly reviews and assesses the financial risk management policies to ensure that the policy guidelines are adhered to.

Interest rate risk The Commission is exposed to interest rate risk on fixed deposits. The Commission does not transact in any interest rate swaps.

Liquidity risk The Commission monitors and maintains a level of cash and cash equivalents deemed adequate by the management to finance the Commission’s operation and

to mitigate the effects of fluctuation in cash flows.

Credit riskCredit risk is the potential exposure of the Commission to losses in the event of non-repayment of licence fees from licencees.




15. Financial Instruments (continued) Credit risk (continued) At the balance sheet date, there was no significant concentration of credit risk. The maximum exposure to credit risk for the Commission is represented by the

carrying amount of each financial asset.

The following table shows information about the Commission’s exposure to interest rate risk.

Effective interest rates and repricing analysis In respect of interest-earning financial assets, the following table indicates their average effective interest rates at the balance sheet date and the periods in

which they mature, or if earlier, reprice.

2008 2007 Effective Effective Interest Within 1-5 Interest Within 1-5 Rate 1 Year Years Rate 1 Year Years % RM’000 RM’000 % RM’000 RM’000

Financial assets

Cash and cash equivalents 3.39 1,154,378 18,900 3.37 990,668 -

Fair values

Recognised financial instruments

The carrying amounts of cash and cash equivalents, fees and other receivables and payables approximate fair values due to the relatively short-term nature of these financial instruments.

170Maintaining Transparencyand Good Governance

MCMC Annual Report_2008

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