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Malaysia's Broadband Ranking Improves

12 Dec 2018
CYBERJAYA, 12 December 2018 – Malaysia rose 6 places from 41 to 35 in the International Telecommunication Union (ITU) fixed broadband price basket category and a massive jump of 25 places from 61 to 36 in the mobile prepaid handset for 500MB. ITU’s ICT Price Basket (IPB) is a composite affordability measure based on three sub-baskets – fixed telephone, mobile cellular and fixed broadband Internet services – and computed as a percentage of average Gross National Income (GNI) per capita. Published annually, the IPB monitors the relative price of ICT services and provides an indication of how affordable services are, across countries, and over time.

This was announced in the 2018 Measuring the Information Society Report (MIS) issued by the ITU, at the 16th World Telecommunication/ICT Indicators Symposium (WTIS) in Geneva recently. Malaysia also performed well in the mobile-cellular price basket, moving up 3 places but fell 22 places in the mobile computer based category, which are mainly dongles and USB.  This decline is mainly due to consumer preference.

According to ITU for the first time, more than half the world’s population will be using the Internet by end of 2018. This is a significant achievement towards a more inclusive information society that delivers new opportunities of development through ICTs.

On the same note, Al-Ishsal Ishak, Chairman of the Malaysian Communications and Multimedia Commission (MCMC) said, “With approximately 87% Internet users and 118% broadband penetration rate in Malaysia, the Government is committed more than ever to ensure that no one is left behind. Efforts to increase access and coverage together with lower prices for broadband means more and more Malaysians will be able to access the internet and transform their lives through the use of ICT.”

In addition, ITU mentioned that it is important to note that in most developing economies, mobile-broadband subscriptions have grown enormously supporting the growth in data revenues. In Malaysia, mobile-broadband subscriptions grew by 23.6 per cent between 2016 and 2017. The ITU also reported that competition continues to intensify in Malaysia, noting that the market-share of the three major mobile operators (DiGi, Maxis and Celcom) declined from 78.2 per cent in 2016 to 74.2 per cent in 2017. With service providers aggressively and increasingly offering mobile broadband with innovative and competitive data packages that include large data allowances and affordable smartphones, mobile broadband adoption has accelerated, especially over the last one year.

In 2018, competition was further intensified via the Mandatory Standard on Access Pricing, allowing more service providers to offer services, thereby driving down prices further. Currently, consumers of fixed broadband enjoy between 34%-56% reduction in the new packages being offered. 

 “With affordability and access, especially via mobile broadband, more rakyat especially those in rural and remote areas can participate and benefit from the Digital Economy,” notes Al-Ishsal.

“At the same time, MCMC will monitor and strictly enforce the quality of service imposed by the Mandatory Standard on Quality of Service. We will also continue our work to improve digital infrastructure and services in the country. The National Fiberisation and Connectivity Plan (NFCP) is a multi-pronged approach to increase coverage and provide speeds to support growth of the Digital Economy in Malaysia,” he added.  

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