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MCMC working on opening up access

06 May 2004, The Star
The Malaysian Communications and Multimedia Commission (MCMC) is moving ahead with plans to introduce more competition in access networks. Newly appointed chairman Datuk V. Danapalan said the regulator was on track to issue a "Determination on Access List" paper incorporating Access to Network Elements (ANE) by July. The Access List is a list of network facilities and services that providers of such facilities and services are bound, by law, to supply to other providers that want them. The plan to make the ANE mandatory would effectively allow other companies wishing to roll out copper-based local loop services to use incumbent Telekom Malaysia Bhd’s last-mile access network, which to date covers approximately 90% of the country. MCMC had earlier signalled its intention to promote greater competition for high-bandwidth services like broadband Internet access by opening up the copper last-mile when it issued its Public Consultation Paper on Effective Competition in the Access Network in July 2003. Last December, the MCMC reiterated its position and said it would “stand firm” on a July 2004 deadline for issuing the Access List. (See http://star-techcentral.com/tech/story.asp?file=/2003/12/1/technology/6806838&sec=technology). First phase completed According to MCMC’s general manager of legal advisory, Pushpa Nair, the first phase for gathering feedback on the Public Consultation Paper has been completed and the MCMC is about to move to the next phase. She said the first phase of consultation involved discussion and feedback from those involved in the telecommunication industry. “The next phase consists of a formal presentation of the Consultation Paper to any parties who wish to give their comments,” she said, adding that this would be followed by further discussions and deliberations by all who have a stake in the Access List. “The MCMC will then make a final determination on the views and feedback it has received. After that, all service providers, incumbent or otherwise, would be bound by this list,” she said, adding that this is expected to take place only at the end of the year. Danapalan said that this was part of a process within the regulatory framework. “It is important to follow this framework, and doing so will take some time," he told reporters last week in his first appearance with the media since taking over the reins at the MCMC in February. “But once we get there, the MCMC will then have the ‘strong hand’ to enforce these guidelines,” he said. For more on MCMC’s report on the Access List, go to http://www.mcmc.gov.my/link_file/Admin/FactsAndFigures/Paper/PC%20Report%20ECAN.pdf. Perception management Danapalan said the perception within industry circles that MCMC had sometimes acted in favour of the incumbent service provider was not true. He said people -- both from within the industry and consumers -- should not be swayed by this perception because it was not true. Some industry observers have said there had long been a perception that the MCMC’s “hands were tied,” particularly when it involved the issue of the “unbundling of the last-mile access,” owned primarily by state-backed Telekom Malaysia. They argued that Telekom’s reluctance to open its last mile has effectively denied other licensed service providers that might want to roll out fixed network-based services, such as DSL (digital subscriber line), to consumers from doing so because they could not reach their target market. Last-mile access is a term used to refer to the physical lines that lead to consumers' premises, whether in residential areas or at offices in buildings. “Perception is always misleading; the truth is that as a regulatory body, the MCMC must find a balance between regulating and encouraging growth within the industry. “We have to be very careful when carrying out our job so that we won’t overreact; otherwise, we might find that there will be nobody left to provide basic telecommunication services," said Danapalan. He said the MCMC’s philosophy on enforcement was to be balanced in its approach. He said there was a need to understand all sides and be evenhanded when enforcing policies. He added that the MCMC must take into account companies which have made investments to provide services to the people. “It’s not a question of us putting in the money and asking a company to take care of things while we regulate. “We are regulating companies that have ploughed in huge investments to provide these services to the people,” he said, adding that this is why the MCMC must be balanced in its approach. MCMC’s priorities Danapalan also said that MCMC’s focus this year would be in line with Prime Minister Datuk Seri Abdullah Ahmad Badawi’s vision for national development. “The Prime Minister has said that there should be basic telecommunication services for all; it must be affordable; and the services received must be of high quality. “And this is exactly what the MCMC would be concentrating its efforts on this year,” he said. Danapalan said MCMC has identified three specific areas for it to focus on this year. They are: · THE rollout and implementation of the Universal Service Provision (USP) programme; · ENSURING coverage and quality by all service providers; and · RESOLVING issues relating to the unbundling of the last-mile access.
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