Suruhanjaya Komunikasi dan Multimedia Malaysia,Off Persiaran Multimedia, 63000 Cyberjaya, Selangor
Tel: 6 03 86 88 80 00 | Fax: 6 03 86 88 10 00
E-mail: ccd@cmc.gov.my | Web: www. skmm.gov.my | 1-800-888-030
ANNUAL REPORT
Diversified culture, united towards communication excellence
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Table of Contents
001
001
002
003
003
004
006
016
026
030
Statutory Requirement
National Policy Objectives
Vision/Mission Statement
Core Values
Clients’ Charter
Chairman’s Message
Commission Members
Senior Directors
A Snapshot of Statistics on
Communications & Multimedia Activities
Speeding Up the Growth of ICT
01
034
036
037
037
037
038
038
042
044
045
048
051
Progress Report for Broadband
(MyICMS 886) 2008
TM’s Undertakings
Application of the Regulatory Framework for High-Speed Broadband Network
Economic Indicators on Broadband’s
Benefits to the Nation
Indicators for Broadband Take-up
Report on QoS Compliance on Broadband Services
Managing Communications Infrastructure
Promotion of Local Content Development
and NCDG
Establishment of R&D Initiatives
Under Digital Home
Implementation of U-Library
Digital TV
Mobile Number Portability (MNP)
Ensuring Communications
02
056
058
058
059
Integrity & Excellence
Categorisation
Market Supervision
Services’ Accessibility
Implementation of WiMAX Services
Responding to New
03
Emerging Technologies
064
Spectrum Management Strategic Review
(SMSR) 2007/2008
Spectrum Research Collaboration
Spectrum Assignment and Management
NASMOC and Spectrum Engineering and
Interference Resolution
Spectrum Co-ordination
Numbering
066
072
081
081
085
Expanding Digital Reach
04
092
093
095
Nationwide Mobile Coverage: Time 1/Time 2 Projects
Quality of Service
Required Application Service (RAS)
095
096
097
099
100
100
101
Rates Monitoring
SKMM Complaints Bureau
Consumer Issues
Prepaid Registration
Phishing
Network Security Centre
Enforcement
Upholding National
05
Culture & Identity
106
Content Regulation
Channeling Equal Access
06
to ICT Services
112
112
USP Fund
USP Projects in Bridging Digital Divide
Enhancing ICT Ethics
07
and Excellence
120
121
123
125
Consumer Forum’s Activities
Content Forum’s Activities
Report on Technical Standards Forum
Report on Access Forum
Enhancing Postal
08
Services Standards
128
Postal Services
Accelerating Growth
09
Through Global Partnerships
132
International Affairs
Delivering Better Performance
10
for Greater Effectiveness
138
140
Human Capital Development
IT Strategic Review
Building 1Malaysia Through
11
144
ICT Convergence
Corporate Highlights
Maintaining Transparency
12
148
and Good Governance
Governance and
Audited Financial Statements
Statutory Requirement
In 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.
SKMM Annual RePort 2008
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National 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;
003
Vision
To become a globally competitive, efficient and increasingly selfregulating communications and multimedia industry generating
growth to meet the economic and social needs of Malaysia.
Mission
We 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; and
e. Consulting regularly with consumers and service providers and
facilitating industry collaboration.
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;
Core Values
9. To promote the development of capabilities and skills within
Malaysia’s convergence industries; and
•Authoritativeness
•Integrity
•Competence
10.To ensure information security and network reliability and integrity.
SKMM Annual RePort 2008
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005
Clients’ Charter
Our undertaking to our clients are:
General Consumers
• Recording all complaints received
• Acknowledgement to complainant within three working days
• Forward complaint received to relevant service provider within five working days
• Follow-up on status of complaint from service provider after 15 days
Assignment Applicants
Apparatus Assignment (AA)
• 60 days to process the AA application subject to the Licence Committee meeting, border co-ordination by FACSMAB, JTC and Trilateral (Malaysia, Singapore and
Indonesia) meetings and approvals
Licencees
• Promote fair competition and market development through
transparent regulatory processes as outlined in the CMA 1998
• Provide resolutions to disputes when necessary
• Promote effective regulation by monitoring all significant
matters relating to the performance of its licencees and
reporting to the Minister at the end of each financial year
• Review the Rules & Regulation every three years or as and
when directed by the Minister. This is to ensure that the Rules
& Regulation remain relevant
Number Assignment
• 30 days to process normal assignment applications
e.g. PSTN Numbering Application
• 45 days to process special assignments e.g. mobile, short codes
Licence Applicants
• 60 days from receipt of complete application to process NFP, NSP and
CASP licence applications and to recommend to the Minister for approval
• 45 days from receipt of complete submission to process NFP and NSP
class licence registrations
• 30 days from receipt of complete submission to process ASP
class licence registration
SKMM Annual RePort 2008
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Chairman’s Message
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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 Multimedia
Over 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.
Datuk Dr. Halim Shafie
Chairman,
Malaysian Communications and Multimedia Commission
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.
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.
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.
The announcement of the programme was made by
the Minister during the opening of the USP Technology
Symposium in Seremban on 12 June 2008.
Telephony Connectivity
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.
The 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
SKMM Annual RePort 2008
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Chairman’s Message
Broadband Connectivity
Broadcasting in Malaysia
What have we achieved in terms of broadband connectivity
within the ten years of convergence?
2008 marked a crucial turning point for the broadcasting
industry in Malaysia with preparation towards digital
television (TV) crossover.
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.
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.
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 rollout 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 Services
The 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
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 Transformation
No 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 everchanging 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 Governance
For 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
SKMM Annual RePort 2008
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Chairman’s Message
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
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.
Broadband to the Nation
With 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.
In 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.
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 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
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
Enhancing Organisational Efficiency
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 twopronged 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 Catalyst
for Broadband Take-up
It 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.
SKMM Annual RePort 2008
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Chairman’s Message
One 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
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, online, television, radio, SMS and e-mail content as well
as radiation and telecommunication tower issues, and
illegally-installed satellite television dishes.
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.
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.
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 Enforcement
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
SKMM’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
SKMM Annual RePort 2008
014
015
Chairman’s Message
organised 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 selfregulation 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 Providers
In 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.
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 Connectivity
An 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.
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
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 indepth 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 SecretaryGeneral 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 cooperation as well as become a centre for training and
promulgation of cyber security best practices.
International Participation
Besides 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 2009
As 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.
SKMM Annual RePort 2008
016
017
Commission Members
SKMM Annual RePort 2008
018
019
Commission Members
Datuk Dr. Halim Shafie
was appointed as Chairman of the Malaysian Communications and Multimedia Commission (SKMM) on 1 April 2006.
Tan Sri Datuk C. Rajandram
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.
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.
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 Coordinator 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.
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.
SKMM Annual RePort 2008
020
021
Commission Members
Dato’ Dr. Halim bin Man
is 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.
Datuk Dr. Abdul Samad bin Haji Alias
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.
is 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.
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.
Datuk Dr. Abdul Samad bin Haji Alias was appointed as a Commission Member on 1 October 2007.
SKMM Annual RePort 2008
022
023
Commission Members
Dato’ 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.
Encik Mohamed Sharil bin Mohamed Tarmizi
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.
SKMM Annual RePort 2008
024
025
Commission Members
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.
Datuk Mohd. Zain Mohd Dom
holds 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.
SKMM Annual RePort 2008
026
027
Senior 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
SKMM Annual RePort 2008
028
029
Senior Directors
Amarjit Singh
Senior Director,
Content, Consumer, Network Security and Postal
Ruzlan Zabidi
Senior Director,
Management Services
Mohd Ali Hanafiah
Senior Director,
Technology, Standards and Network
Tengku Zaib Raja Ahmad
Senior Director,
Human Capital Management
Nik Abdul Aziz Nik Yaacob
Senior Director,
Strategic Information System
Laila Hassan
Acting Senior Director,
Licensing & Economic Regulations
SKMM Annual RePort 2008
030
031
A Snapshot of Statistics on Communications & Multimedia Activities
1) C&M Revenue Market Share by Sector
Communications and Multimedia Revenue Market Share by Sector 2008
Percentage Share of Household User Base (%)
98.6
100
85.1
74.1
80
72.3
56.5
60
43.9
40
30.8
36.9
21.8
20
0
Major Telcos RM35.5 billion (87%)
6) Percentage of Internet Users per Household by Age Groups
120
Pos Malaysia RM0.9 billion (2%)
Others
RM0.6 billion (2%)
Penetration Rate (%)
Broadcasting RM3.8 billion (9%)
3) Cellular Mobile Penetration Rate (1997-2008)
9.7
12.0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
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
Source: SKMM Household Use of Internet Survey 2008
Source: Industry, SKMM
Cellular Mobile Penetration Rate
Source: IPR 2008
7) Percentage of Household Use of Internet by Activities
Total Subscribers (million)
20
15
10
4.2
Age
25
4.4
4.3
5
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: IPR 2008
Percentage Share of Handphone User Base (%)
Internet Usage
2005
2006
2008
2005
2006
2007
2008
For getting information
40.5
84.5
94.4
Pre teens & teens (up to 19)
13.1
20.5
20.9
24.4
Communications by text
99.6
80.7
84.7
Adults (20-49)
78.2
66.8
66.8
62.5
Leisure
47.1
52.7
63.5
Seniors (50+)
8.7
12.6
12.3
13.1
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
1.3
0.2
0.7
Source: SKMM Handphone Users Survey (HPUS) 2008
5) Percentage of Users Accessing Internet through Mobile
Age
Percentage Share of Handphone User Base (%)
2006
2007
2008
Yes
18.4
13.7
11.5
No
81.6
86.3
88.5
4.1
4
Percentage Share of Household User Base (%)
4) Mobile Subscriber Base by Age Group
Percentage Rate (%)
2) Fixed Line Demand and Penetration Rate
4.8
Fixed Line Demand
Penetration Rate
4.7 19.7
19.7
19.6
19.5
18.8
18.1
4.6
17.2 16.6
16.1 15.8
15.3
4.5
Others
*Not canvassed in 2005 and 2006 survey
Source: SKMM Household Use of Internet Survey 2008
Source: SKMM Handphone Users Survey (HPUS) 2008
SKMM Annual RePort 2008
032
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.
01
Speeding Up the
Growth of ICT
034
036
037
037
037
038
038
042
044
045
048
051
Progress Report for Broadband
(MyICMS 886) 2008
TM’s Undertakings
Application of the Regulatory Framework for High-Speed Broadband Network
Economic Indicators on Broadband’s
Benefits to the Nation
Indicators for Broadband Take-up
Report on QoS Compliance on Broadband Services
Managing Communications Infrastructure
Promotion of Local Content Development
and NCDG
Establishment of R&D Initiatives
Under Digital Home
Implementation of U-Library
Digital TV
Mobile Number Portability (MNP)
SKMM Annual RePort 2008
034
035
Speeding Up the Growth of ICT
Progress Report for
Broadband (MyICMS 886) 2008
High 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 eEducation, 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.
by TM and to ensure local companies’ involvement in
this project.
related to industries with regard to the nationwide
broadband implementation.
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.
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.
National Broadband Implementation
(NBI) Governance Structure
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.
To 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 Committee
2) HSBB Procurement Monitoring Committee
3) Technical Monitoring Committee
4) 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
In addition to the above, an Industry Consultative
Committee on Broadband Implementation was formed
and a number of meetings were held to handle issues
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 coordination 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,
INDUSTRY CONSULTATIVE
COMMITTEE MEETING ON
BROADBAND IMPLEMENTATION
Figure 1: NBI GOVERNANCE STRUCTURE
STATES BROADBAND
IMPLEMENTATION AND
CO-ORDINATION COMMITTEE
TECHNICAL MONITORING
COMMITTEE
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.
CABINET COMMITTEE ON
BROADBAND (CCB)
Chairman : YAB DPM
INTEGRATED CONTENT
DEVELOPMENT TASKFORCE (ICON)
Chairman : Tan Sri KSN
NATIONAL BROADBAND
IMPLEMENTATION (NBI)
STEERING COMMITTEE
Chairman : Dato’ KSU KTAK
HSBB PROCUREMENT
MONITORING COMMITTEE
INTEGRATED PROJECT
MANAGEMENT OFFICE (IPMO)
BROADBAND TAKE-UP
COMMITTEE
SKMM Annual RePort 2008
036
037
Speeding Up the Growth of ICT
2008 Projects Covering
Broadband Implementation
The 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 knowledgesharing 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 2008
The 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.
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.
TM’s Undertakings
In 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
Application of the Regulatory
Framework for High-Speed
Broadband Network
With 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.
anti-competitive practices; and
d. Promotion of the national policy objectives;
• To direct SKMM to defer the implementation of Full
Access 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;
• To provide a statement of TM’s intention that three
HSBB 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 remains
unaffected.
Economic Indicators on the Benefits
of Broadband to the Nation
The 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.
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
Year
Contribution to GDP
(based on 6.0% real GDP)
RM(Billion)
Number
of Jobs
Percentage (%) Created
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
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; and
5) Creation of new industries and services.
Indicators for Broadband Take-up
The 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).
SKMM Annual RePort 2008
038
039
Speeding Up the Growth of ICT
Others (Fixed)
Satellite 0.4%
0.3% SDSL
Others (Wireless)
0.5%
1.4%
Mobile
22.5%
ADSL
75.0%
Managing Communications
Infrastructure
Item
Category
1.
Access
168
2.
Core
143
HSBB Implementation
3.
International
Scope
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 Services
Whilst 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 (publicswitched 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.
The 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 infrastructure
2) Core Network infrastructure
3) 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 Deployment
TM 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:
IMPLEMENTATION AS
OF NOVEMBER 2008
No. of Projects
2
313
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-out
As 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.
SKMM-HSBB Verification Taskforce Team members during site
inspection at Wangsa Maju, Kuala Lumpur
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 Bhd
13)Paneagle Communications Sdn Bhd
14)HeiTech Padu Berhad
15)VDSL Network Sdn Bhd
16)MyKRIS Asia Sdn Bhd
17)Clear-Comm Sdn Bhd
18)Izzinet Sdn Bhd
19)NTT MSC Sdn Bhd
20)Packet One Networks (M) Sdn Bhd
21)U Mobile Sdn Bhd
22)Celcom (M) Berhad
23)Global Transit Communications Sdn Bhd
24)Macro Lynx Sdn Bhd
Radiation and Communications
Tower 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.
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 Jul
2008
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
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 everincreasing demand.
The Association undertook preparations to hold its first
Annual General Meeting to appoint members of the
Executive Committee for the following positions:
1) Chairman
2) Deputy Chairman
3) Six Committee Members
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
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
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.
16 Dec
2008
Taklimat Kesihatan dan Keselamatan
Berkaitan Struktur dan Transmisi
Komunikasi - WPKL & Putrajaya
The Malaysian Internet
Exchange Report for 2008
SKMM 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.
SKMM Annual RePort 2008
040
041
Speeding Up the Growth of ICT
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.
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).
2.
Malaysian Maritime
Academy (ALAM)
Certification of Proficiencies
for designated skill area
of Radio 2003 Operator
(Maritime)
3.
Multimedia College
(MMC); formerly
known as Telekom
Training College
Certification of Proficiencies 15 Jul 2002
for designated skill area of
Non-Radio Operator (Cabling
Provider)
Objectives of the Formation
1) 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.
One of the seminars organised by SKMM and held in Kuala Lumpur
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.
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 test gear for RF measurement
SKMM also undertook a revamp to the contents of its website information
pertaining to radiation.
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.
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:
• Target for full implementation by end-2009
• Continue these efforts until the end of 2010 to achieve the Broadband penetration
rate of 50%
• Faster and smoother infra and service roll-out
• Reduce number of public complaints pertaining to RF radiation
• Increase number of sites at all states
Certification Matters
The following chart records their achievements in performing their functions as
registered certifying agencies for 2007 and 2008.
CAs Achievement for 2007 & 2008
No. of Certificates Issued
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.
3 Sep 2003
3000
2500
2,511
2,384
2000
The web address at www.rfrad.gov.my
For this exercise, SKMM purchased relevant test gears to ensure adequate
knowledge was disseminated to the staff of SKMM’s regional offices. The test
The website contains a wide selection of information covering awareness
programmes, publications, RF measurement results at complainants’ premises,
1.
2,050
1,051
919
1000
500
0
SQASI
MMC
ALAM
Certifying Agency
Section 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.
No. Organisation
2,693
1500
Certifying Agencies
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.
2007
2008
Registration
Category
Sirim QAS International Certification of
Sdn Bhd (SQASI)
Communications Equipment
Date of
Appointment
3 Sep 2003
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%.
Year
Certification Category
Total
Telephony
Radio
Telephony (%)
Radio (%)
2007
556
1,955
22.1
77.9
2,511
2008
561
1,823
23.5
76.5
2,384
SKMM Annual RePort 2008
042
043
Speeding Up the Growth of ICT
Certifications of Radio Operator Proficiencies by ALAM
2C :
ALAM 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:
• General Operator’s Certificate (GOC) and;
• Restricted Operator’s Certificate (ROC)
The statistics for the certification programme conducted in 2007 and 2008 is
detailed in the following table:
Certification Category
Year
2D :
cabling provider – fibre-optic for network (aerial and underground
installation, jointing, testing and maintenance); and
cabling provider – cabling network design for network.
Certifications of Amateur Radio Proficiencies by SKMM
This 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.
Total
GOC
ROC
2007
657
272
929
2008
820
231
1,051
In 2008, SKMM successfully conducted two RAEs and two CW tests. Details of the
examinations/tests are shown 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.
No.
Examination/Test
Date Conducted
1.
Radio Amateur
Examination (RAE)
2.
Morse Code (CW) Test
(Practical Test)
No. of Candidate
Attended
Passed
24 Jun 2008
1,818
1,037
17 Dec 2008
1,802
993
25 Mar 2008
20
13
24 Sep 2008
18
9
Certifications of Cabling Proficiencies by MMC
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.
The 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.
Promotion of Local Content Development and NCDG
Year
Certification Category
Total
1A
1C
1D
2A
2C
2D
2007
526
0
126
714
658
26
2,050
2008
738
0
40
607
1,269
39
2,693
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);
Overview
Networked 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
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:
• Facilitating stakeholders under the prevailing policies and regulations,
• Stepping up capacity building efforts; and
• Providing incentives for content development.
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.
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
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 at
http://www.skmm.gov.my/what_we_do/ncdg/ncdg.asp
Market Access
One of the two expected results of MyICMS 886 for Content Development is stated
SKMM Annual RePort 2008
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Speeding Up the Growth of ICT
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.
their Mobile Money Edutainment application.
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.
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.
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)
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.
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.
Malaysia’s participation at MIPTV 2008 produced indeed encouraging results
towards achieving the objectives of MyICMS 886.
Capacity Building
Building 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.
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.
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 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.
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 interconnected and interdependent.
Establishment of R&D
Initiatives Under Digital Homes
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 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.
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
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.
This would mean that Digital Homes are closely
related to the telecommunications, broadcasting,
home appliances networking and solutions.
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:
• A technology showcase of innovative digital home
related products;
• A platform to introduce and demonstrate
functionality of digital home technologies from
tertiary institution, industry partners, etc;
• To provide a physical environment that acts as a
test home for newly invented products/solutions;
• Generate interest and promote adoption of digitalliving from business perspective or consumer
perspective.
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.
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 sensorfriendly 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, HewlettPackard and LG.
Implementation of U-Library
The mission of the Ubiquitous Library Initiative is
to provide physical and digital access to knowledge
resources in the knowledge repositories, richly
SKMM Annual RePort 2008
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Speeding Up the Growth of ICT
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.
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 Ubiquitous
Library 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.
National Library
of Malaysia
(PNM) (VIRTUA)
U- Library
Consortium
Pustaka Negeri
Sarawak
(ANGKASA)
INTAN Library
Bukit Kiara
(ILMU)
U-LIBRARY IS ABOUT ACCESS
UBIQUITOUS LIBRARY
Physical Access
“anytime, anywhere”
Sensor
Technology
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.
Selangor State
Public Library
(PPAS) (ALS Global)
RFID
U-Library
Portal
Library Mgt. System, NUC,
Delivery Channel & Cashless
Payment Gateway
Borrowing &
Returning Anytime,
Anywhere
ACCESS
WITH HSBB
Negeri Sembilan State
Public Library
(PPANS) (Clarice)
Digital Access
“anytime, anywhere”
Digitalisation
Content
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).
U-Library
Portal
NUC,
K-Repository
Information Discovery
Anytime, Anywhere by
Anyone
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
The U-Library Initiative is very much aligned with
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 September
2008 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.
Kuala Lumpur
Library (Horizon)
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.
The Chairman of SKMM, YBhg. Datuk Dr. Halim Shafie
emphasised the importance of observing five elements
SKMM Annual RePort 2008
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Speeding Up the Growth of ICT
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.
U-LIBRARY MODEL
1. U-Portal
6. Library Content
• Information Discovery
Gateway for Users
2. LMS
LMS for participating libraries
• Interoperability functionality
Z39.50 (Information Retrieval
Service Protocol)
• ILL functionality
-Z39.83 NISO Circulation
Interchange Protocol
(NCIP)/SIP2
• National Union Catalogue
7. Broadband
Infrastructure
3. RFID System
UHF for Tracking & Tracing with
NCIP/ SIP2
(Standard Interface Protocol)
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
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.
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).
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
Digital TV
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, telebanking, tele-health and many others on both fixed
reception (through roof top antenna) and mobile reception
(through mobile devices).
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 Multimedia Broadcasting
Benefits of Digital TV
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 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.
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.
Digital broadcasting has a key role to play in the socioeconomic 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 socioeconomic development goals, in general and the ICT
development goals, in particular.
Viewers can receive digital TV services through an
ultra high frequency (UHF) roof top antenna, either
Upon the roll-out of the multiple digital TV/Radio channels,
more content and applications will be required, thus
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.
5. Cashless Payment
• Touch’n Go
• MEPS
4. Delivery Channel
• Pos Malaysia Berhad
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-
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.
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.
SKMM Annual RePort 2008
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Speeding Up the Growth of ICT
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), highspeed 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.
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 Initiatives
SKMM 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’.
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%).
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.
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
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 freeto-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 Forward
The 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)
Background
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.
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
SKMM Annual RePort 2008
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Speeding Up the Growth of ICT
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 portin numbers and restrictions on locations were lifted.
customer ID, unpaid outstanding bills and the
existence of supplementary lines which were not
ported together.
to process Consumer Ports throughout the duration of
29 August to 31 December 2008 are as follows:
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.
100%
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.
Port Request
Successful Port
Port Rejected
90%
324,641
211,697
103,697
80%
95.7%
70%
Table 1: Overall Porting Figures
Non-Consumer Ports
60%
With 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.
50%
Thousands
160
140
120
100
40%
Port Req
Succ Port
Rejected
30%
20%
10%
0%
80
60
1.7%
0.8%
0.8%
0.4%
0.6%
1 Day 2 Days 3 Days 4 Days 5 Days >5 Days
Graph 2: Chart on Time-frame for Consumer Ports
40
Overall Porting Figures
The 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
96.7%
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.
90%
70%
Number of Days
% of Port Completed
1 Day
95.7%
2 Days
1.7%
3 Days
0.8%
Duration Taken For Porting
4 Days
0.8%
The 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.
20%
5 Days
0.4%
10%
More than 5 Days
0.6%
0%
0
The 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:
100%
80%
20
Porting Activities
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:
Aug-08
Sep-08
Oct-08
Nov-08
Dec-08
Graph 1:Pattern of Port Requests, Successful Port
& Port Rejects (Monthly Tabulation)
Consumer Ports
With 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
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
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 timeframe allowed for porting. Currently, Non-Consumer
Ports only account for 2,460 (or about 1%) of the total
successful ports.
60%
50%
40%
30%
<=5 Day
Cost of Porting to Consumers
1.8%
0.6%
0.3%
0.2%
0.0%
0.4%
6 Days
7 Days
8 Days
9 Days
10 Days
>10 Days
Graph 3 : Chart on Time-frame for Non-Consumer Ports
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%
Table 3 : Time-frame for Non-Consumer Ports
SKMM 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.
SKMM Annual RePort 2008
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.
02
Ensuring
Communications
Integrity & Excellence
056
058
058
059
Categorisation
Market Supervision
Services’ Accessibility
Implementation of WiMAX Services
SKMM Annual RePort 2008
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Ensuring Communications
Integrity & Excellence
The new individual licences were issued to:
Categorisation
The 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 Communications
and Multimedia Act 1998
As 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 – Network Facilities Providers
• NSP – Network Services Providers
• ASP – Application Service Providers
• CASP – Content Application Service Providers
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 Licence
This 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 Licence
Services 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 Licence
This 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
14 NFP, 16 NSP and three CASP Individual Licence
applications. However, only 12 NFP, 12 NSP and one
CASP applications were approved by the Minister
and registered by SKMM.
No.
Name of Licencee
Tyoe of Licence
Licence Issuance Date
Service Category
1.
Touch Mindscape Sdn Bhd
NFP (I) & NSP (I)
4 Feb 2008
Nominated Facilities Provider
2.
Wellcom Communications (M) Sdn Bhd
NFP (I) & NSP (I)
4 Feb 2008
Broadband Services
3.
Sector Solutions Sdn Bhd
NFP (I) & NSP (I)
4 Jul 2008
Nominated Facilities Provider
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)
26 Sep 2008
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)
14 Nov 2008
Broadband Services in I-City Shah Alam
11.
Paneagle Communications Sdn Bhd
NFP (I) & NSP (I)
14 Nov 2008
Broadband Services
12.
Macro Lynx Sdn Bhd
NFP (I) & NSP (I)
28 Nov 2008
Broadband Services
13.
Malaysia Airports (Sepang) Sdn Bhd
NFP (I) & NSP (I)
5 Dec 2008
Facilities and service provider for KLIA area
14.
Segi Maju Consortium Sdn Bhd
NFP (I) & NSP (I)
5 Dec 2008
Radio Trunking Facilities & Service Provider
Issuance of Class Licences
There were 21 applications for NFP Class Licence, 27
applications for NSP, 424 applications for ASP and 16
applications for CASP. The number of registrations for
class licences in 2008 is as follows:
Class Licence
Number of Registered Licencees
NFP
15
NSP
15
ASP
401
CASP
13
Application for Variation of Individual
Licence Conditions / Transfer and
Surrender of Individual Licence
In addition to new licence applications, SKMM
also processed applications for variation of licence
conditions and transfer of individual licence in
2008. Five applications were received for variation
of CASP (I) licences, which involved special licence
conditions on location change of control centre and
percentage of local content. As for the NFP licences,
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 licencees
surrendered their licence due to failure to roll out
their services and one licencee applied to transfer
the licence.
Application for Nominated
Facilities Providers
Pursuant 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
Bhd and Syarikat Prasarana Negara Berhad, were awarded
with Nominated Facilities Providers’ registration through
a Ministerial Declaration issuance. However, Tenaga
Nasional Berhad withdrew their application.
CASP and ASP Class Licences
Nationwide Road Show
The main objective of this programme was to educate
and inform all hotel owners/operators about licensing
requirements under the CMA 1998, in particular `inhouse 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
SKMM Annual RePort 2008
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Ensuring Communications
Integrity & Excellence
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 Licensing
Management 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
• Licence fee monitoring by the Licensing Department.
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.
Type of Licence
Number of Licencees
Network Facilities Provider (I)
4
Network Service Provider (I)
7
Content Application Service Provider (I)
2
Total
13
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.
Table 1: List of Licencees Inspected in 2008
Currently, the e-LMS is on trial and it will be officially
launched in 2009.
For 2009, there are 14 NFP (I) and 15 NSP (I) and 1 CASP
(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.
Market Supervision
Monitoring of Compliance
with Licence Conditions
One 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
who hold both Network Facilities Provider (Individual)
[NFP (I)] and Network Service Provider (Individual)
[NSP (I)] licences, one licencee who holds only the
NSP (I) licence and two licencees who hold the Content
Application Service Provider (Individual) licence.
Of these licencees, four companies complied with all
the conditions. The remaining licencees had either
In addition, SKMM also monitored licencees who
were previously granted an extension to comply with
some other licence conditions.
Services’ Accessibility
Public Inquiry on the Review of the
Access List and Mandatory Standard
on Access
In 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), 59 and 61 of the Communications and
Multimedia Act (CMA) 1998 to seek public opinion.
of Service, were included in the Access List.
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, in accordance with Sections 65(2) and
55(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 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 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, HighSpeed Broadband Network Services with Quality of
Service and High-Speed Broadband without Quality
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 and
Mobile Network Termination Service. The second
main 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 endusers on WiMAX networks are not connected to endusers 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
in the fixed-line market. Further, SKMM also removed
Equal Access (PSTN) Service, Internet Access Call
Origination Service, Inter-Operator Mobile Number
Portability Support Services and Network Signalling
Service 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 Agreements
One 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 Complaints
In 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 Complaints
SKMM 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 Services
The 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 Bhd
have been designated to provide services in Peninsular
Malaysia, whilst REDtone-CNX Broadband Sdn Bhd
would 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 Bhd
As at 31 December 2008, Packet One deployed 591
transmitters in 197 sites. They spent a cumulative
capital expenditure of RM186 million for the
deployment of their WiMAX network. Currently,
Packet One is providing services in selected areas
around Selangor, Wilayah Persekutuan Kuala
Lumpur, Johor, Kedah, Negeri Sembilan and Penang.
Since their commercial launch on 19 August 2008,
they have a total of 9,986 subscribers, comprising
both corporate and residential consumers.
Asiaspace Sdn Bhd
In 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 Bhd
As 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,
SKMM Annual RePort 2008
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Ensuring Communications
Integrity & Excellence
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.
targets on the deployment of transmitters and sites
as at 30 September 2008. As a result, SKMM has
imposed a penalty of RM6 million on UMTS.
REDtone-CNX Broadband Sdn Bhd
Celcom (Malaysia) Berhad (Celcom)
REDtone-CNX had deployed 15 transmitters in five
sites with a capital expenditure of RM3.2 million.
Their WiMAX services are currently available in
Kota Kinabalu and Kuching. REDtone-CNX launched
their services on 20 August 2008 and has three
corporate subscribers.
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.
Implementation of IMT 2000 – 3G Services
SKMM 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:
Celcom completed four MVNO negotiations and
launched one with Merchantrade Asia Sdn Bhd in
July 2007. For International Roaming, Celcom has
arrangements with 57 countries and 93 operators.
UMTS (Malaysia) Sdn Bhd – SA awarded on 2 April 2003;
DiGi Telecommunications Sdn Bhd (DiGi)
U Mobile Sdn Bhd – SA transferred from U Telecom
Media Holdings Sdn Bhd (formerly known as MITV
Corporations Sdn Bhd) on 19 December 2007;
Celcom Malaysia Berhad – SA transferred from
Telekom Malaysia Berhad (TM) on 28 April 2008; and
DiGi Telecommunications Sdn Bhd – SA transferred
from TTDotCom Sdn Bhd on 7 May 2008.
UMTS (Malaysia) Sdn Bhd (UMTS)
As at 31 December 2008, UMTS has deployed 6,449
transmitters 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 or
wireless broadband users.
SKMM found that UMTS did not comply on the DBP
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
transmitters and 60 sites. DiGi had spent RM50 million
in 2008 for its 3G roll-out.
U Mobile Communications Sdn Bhd
(U Mobile)
As at 31 December 2008, U Mobile has deployed 2,546
transmitters 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.
SKMM Annual RePort 2008
062
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.
03
Responding to
New Emerging
Technologies
064
066
072
081
081
085
Spectrum Management Strategic Review
(SMSR) 2007/2008
Spectrum Research Collaboration
Spectrum Assignment and Management
NASMOC and Spectrum Engineering and
Interference Resolution
Spectrum Co-ordination
Numbering
SKMM Annual RePort 2008
065
Spectrum Management Strategic
Review (SMSR) 2007/2008
Spectrum 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;
• Maximising the overall public benefit derived from
use of the spectrum by ensuring its efficient allocation;
• Encouraging the use of efficient wireless
technologies and practices to enable operation of
a wide ranges of services with an adequate quality
of service;
• Supporting the policy objectives of the Government;
and
• Promoting global spectrum harmonisation through
international arrangements and framework.
Rapid technological advancements in the field of
spectrum 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 1998
as the authority entrusted with managing the
spectrum resource, SKMM had embarked on a
Spectrum Management Strategic Review Project
(“SMSR 2007/2008”) to review the current spectrum
management 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:
Overview of Spectrum Management
International & Regional Co-ordination
Conversion
Plan
Marketing
Plan
Spectrum Monitoring
& Inspection
Spectrum Plan
Policy & Reg
Database
Spectrum Engineering
Standards & Certification
Accounting
Invoicing & Receipting
Spectrum
Assignment
Apparatus
Assignment
Class/
Exempt
Spectrum Quality Control
064
Responding to
New Emerging Technologies
Spectrum Users
Source: SKMM - Overview of Spectrum Management
• Maximisation of the overall public benefits from
spectrum usage;
• Responsive and flexible framework to meet
current and future needs of spectrum users;
• Transparent and effective spectrum management
processes;
• Alignment of the framework to the CMA 1998 policy
objectives and MylCMS 886 strategic plan; and
• Positive and strong framework to support the
Government’s push to position Malaysia as
a global ICT hub and regional leader in the
communications and multimedia industry.
Initial information and views were obtained through
interviews with major stakeholders (Government and
Industry). The project team conducted interviews
to gather stakeholders’ feedback and opinion, and
to develop a detailed understanding of the current
situation in Malaysia, particularly on issues related
to the current spectrum management framework. The
matters discussed at these interviews included:
• Current spectrum management practices;
• Current and future spectrum demand;
• Institutional aspects; 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);
• European Radio Communication Office (ERO);
• Hong Kong (OFTA);
• United Kingdom (OFCOM); and
• US National Telecommunication and Information
Administration (NTIA).
Key practices of spectrum management which
worked well in the benchmark regulator countries
were compared with those in Malaysia.
SKMM further assessed and analysed matters such as:
• Future spectrum usage covering technology trends
and development;
• Current and future trends and development in:
» spectrum management techniques;
» regulation;
» policy; and
• Development of Malaysia’s communications and
multimedia sector and its impact on spectrum
management.
SKMM, on completion of the initial phase of the
review released the preliminary findings in a public
consultation (PC) paper which invited the public to
comment or provide feedback on the issues that
arose from the review. For the first time ever, SKMM
further provided web based submissions to facilitate
wider participation. The public was also invited to
a clarification session on the PC document and was
followed by focus group sessions with key spectrum
groups and organisations. The PC period ran from 18
December 2007 to 4 February 2008. The response was
encouraging with 27 fruitful responses received.
Based on the data and information gathered and the
results from the assessment and analysis, the SMSR
2007/2008 developed:
• 99 Recommendations for implementation over a
5-year plan. These can be generally categorised
into the following areas:
- Operational
- Policy/Framework; and
- Institutional
• Seven key strategic recommendations
» Develop a Five-year Spectrum Release Plan;
» Review the current spectrum plan incorporating
WRC07 decisions and carry out a Detailed
Spectrum Investigation (DSI);
» Establishment of National Spectrum Consultative
Committee (NSCC);
» Flexibility to be built into policies to meet rapid
convergence and technological developments;
» Use of spectrum pricing policy to manage
demand and promote efficiency of use;
» Use of market approach (auction) for high-value
spectrum as a way to select and award to the
best; and
» Use of lighter touch regulation where applicable
• 21 Strategic Frameworks were provided to guide
SKMM along the way in the implementation of
the reccomendations:
» Standard Radio System Plan (SRSP) Development;
» Spectrum Allocation;
» Assigning Spectrum;
» Spectrum Sharing;
» Spectrum Release;
» Re-farming;
• SKMM Strategic Road Map
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
National Spectrum Consultative Committee (NSCC);
Standardisation;
Monitoring and Inspection;
Spectrum Interference Resolution;
International Co-ordination;
Regional and Cross Border Co-ordination;
Satellite Filing and Co-ordination;
Electromagnetic Compatibility (EMC);
Spectrum Pricing;
Spectrum Trading;
Spectrum Auctioning;
Public Consultation;
Research Chair;
Co-operative Education; and
Human Capacity Development
Leading Regional Regulator
SKMM well positioned to take
advantage of world leading
developments in spectrum
management
Removal of Obstacles
to Development
Framework Goals
• Spectrum trading
• Government payment for spectrum
Operational Goals
• Stronger role in regional/ international
• Market based pricing mechanisms
• Transparency
Institutional Issues
• Staff retention, skills, capacities
Insititutional Issues
• Staffing level
• Capacity building
• Organisational structure
Operational Issues
• Market surveillance
• Service levels
• KPI
Framework
• Realistic goal definition
Year 1
Operational Issues
• Strengthen monitoring capability
• Detailed spectrum review
• Assignment terms
Institutional Issues
• Staff retention, skills, capacities
• Collaboration with universities
Framework
• Spectrum release plan
• Technology neutral
2
3
Evolution of Focus From
Institutional to Operational to
Framework /Policy
4
5
2012
Source: SKMM, Spectrum Management Strategic Review 2007/2008
SKMM Annual RePort 2008
066
067
Responding to
New Emerging Technologies
A summary of the results from the SMSR 2007/2008 exercise was shared with
the public in a session held on 14 October 2008 at the SKMM’s auditorium.
Further consultations on specific items in the key strategic areas are expected in
2009 and 2010 as SKMM steps forward to carry through the strategic road map,
implementing the recommendations.
Source: SKMM - Spectrum Research Collaboration Programme (SRCP)
Spectrum Research Collaboration Programme (SRCP)
The SRCP started in September 2006 with the establishment of the Research Collaboration
Steering Committee (RCSC). The RCSC is responsible for the strategic direction, policy
aspects, and determination of priorities, recommendations of collaboration projects to
SKMM and also to approve the annual operational plans of the SRCP.
The Objectives of SRCP
• Serve as a focal point of information, knowledge development, and
Research and Development activities related to spectrum management.
• Develop SKMM knowledge resources; improve capability of those dealing
with spectrum management.
• Provide platform for collaboration, sharing and exchange of knowledge,
expertise and enhance capabilities to improve spectrum management.
Source: SKMM - SRCP Objectives
Spectrum Research Collaboration
As SKMM moves towards leadership in spectrum management, building human
capital and resources in the areas of spectrum management is an important aspect
to support the strategic road map. SKMM together with designated Institutions of
Higher Learning (IHLs) collaborated in various programmes or projects on spectrum
management related studies or research. This is being undertaken through the
Spectrum Research Collaboration Programme (SRCP).
The SRCP aims to improve the administrative, regulatory and technical expertise
in spectrum management by promoting and funding research on spectrum
management related matters in collaboration with IHLs and the industry.
Through SRCP, experiences, knowledge, research studies or findings are shared with
interested parties through a web collaboration portal at www.spectrumresearch.
com.my. The portal was operational at the end of 2007 and served to disseminate
knowledge as well as to aid networking among collaborative members. The web
portal was officially launched on 12 April 2008.
The SRCP is structured to ensure that the necessary governance of the research
programmes or projects are sound and effective. There is the secretariat providing
support to the two committees within the SRCP structure to provide a strong
management framework and guidance in the collaborative framework.
Secretariat and Committees Providing Guidance in the Collaboration
1. Research Collaboration Steering Committee (RCSC)
The SRCP is governed by the RCSC and chaired by the Chairman of SKMM. Members of RCSC are from SKMM, KTAK, representatives from the
Communications and Multimedia industry, government agencies, various
stakeholders and Deputy Vice-Chancellors of Universities (Research Centres).
RCSC’s roles are to:
• Ensure integrity, transparency and independence of SRCP; establishment
and maintenance of world-class standards and reputation, appropriate
networking of available resources;
• Responsible for strategic direction, policy aspects, determination of priorities;
• Recommend collaboration projects to SKMM; and
• Approval of annual operational plan of SRCP, including modifying SRCP
mandate as and when necessary.
Research Collaboration Programme Management
2. Research Collaboration Panel (RCP)
The RCP supports the RCSC. Members of RCP are from IHLs and the Industry
who are elected by the RCSC. The RCP advises, manages and monitors the
research programmes.
SKMM
University
Collaborative
RCP’s responsibilities include:
• Identification of partnership programmes;
• Identification of appropriate existing resources available within the
programme’s perimetre (including subject matter experts);
• Development of programmes in collaboration with IHLs committed to the
implementation of the selected programmes;
• Identification of research topics and evaluation of research proposals;
• Promotion of the Collaboration Programme to ensure its goals are achieved;
• Management and administration of the Collaboration Programme;
• Co-ordination to optimise the use of resources within the partnership; and
• Analyse and advice the Steering Committee and SKMM on research projects
and their status.
3. Research Collaboration Secretariat
The Secretariat (also known as SRCP Secretariat) supports the RCSC and
RCP. The tasks of the Secretariat also include maintenance and updates
of the web page for the IHLs Collaboration Programme (http://www.
spectrumresearch.com.my).
Source: SKMM - Committees Providing Guidance in Collaborative Process
Collaboration of the Parties in the SRCP
The RCSC steers the programme to achieve its mandate assisted by the RCP and
the SRCP secretariat. This ensures effective governance of the whole SRCP. SKMM approves awards to all collaboration research projects through a tender
process. Once projects are approved, collaboration amongst universities and the
industry in the research areas are assisted through web networking hosted by
SKMM. Universities and industrial participants can form Research Collaboration
Clusters which may collaborate not only with each other, but also interact with the
Research Collaboration Panel and the SRCP Secretariat.
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
framework such as the Asia-Pacific Telecommunications and EU framework. The figure
shows the functional relation between the parties in the Collaboration Programme.
Industry
5
6
Feedback Quarterly
Report
1 Monitors
4 Advises
2 Quarterly Report
Secretariat
RCSC
Report
Feedback
RCP
3 Refer
1.
Secretariat monitors the progress of research projects, by evaluating
Quarterly Reports, conducting technical visits to University together with
RCP and meeting with research team, if necessary.
2.
Research teams are required to submit physical and financial progress
report every quarter.
3.
Secretariat compiles quarterly reports and refers to RCP, as well as any
outstanding matters pertaining the research.
4.
RCP advises Secretariat on technical issues regarding the research, while also
reports the research progress to RCSC during Steering Committee meetings.
5.
Secretariat prepares paper and reports to SKMM management on the
progress of the research projects, including advices and recommendations
from RCP (if any).
6.
SKMM management acknowledges the report and provide feedback
to Secretariat on any outstanding matters, with proposed actions to be
implemented or directors to be informed to specific research team (if any).
Source: Industry, SKMM - Research Collaboration Programme Management
Role of SKMM in the SRCP
The following are SKMM’s role:
• SKMM allocates an annual fund available for selected Research and
Development projects. SRCP budget allocation varies from year to year and
currently stands at RM1 million per annum. SKMM issues the annual RFP and
projects are evaluated with the assistance of the RCP with final approval for all
research and development proposals resting with SKMM.
• The Chairman of SKMM is the Chairman of the Research Collaboration
Steering Committee.
• Lecture series, conferences and other events are organised by SKMM in support
of the SRCP.
2007
2008
Total Fund Allocated
RM 3.844 million
RM 1.06 million
No. of Projects Approved
11
6
SKMM Annual RePort 2008
068
069
Responding to
New Emerging Technologies
SKMM also leverages on this programme to bring experts from academia and
industry, both local and overseas together for knowledge-sharing. This networking
among them is an essential part of the programme as it ensures that Universities
and researchers are focused and in touch with the industry. Through such
collaborations, the SRCP will be able to seek, nurture and develop experts from
local universities to assist the industry to find solutions as well as creating a ready
pool of human capital that the industry can tap from.
• SRCP increases the weight of Malaysian spectrum management in the
regional and international arenas.
• The spectrum research objectives are in line with promoting and achieving the goals
of the Ninth Malaysian Plan and MyICMS 886 national development strategy.
Source: SKMM - Other Benefits of Collaboration through SRCP
Spectrum Management
In order to efficiently fulfill the increasing spectrum demand, spectrum management
should put greater emphasis on the consideration of new emerging spectrum-efficient
technologies and economic aspects such as spectrum cost. Studies on spectrum
management will lead to policy and regulations development. For example, the study on
spectrum cost versus network cost and issues on interference management techniques.
Spectrum and Us
Increasing demand for mobility requires more spectrum. There is a need to
study 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. The main task of the frequency managers is to provide as much
spectrum as possible to fulfill increasing demands. In addition, electromagnetic
radiation is a concern and studies in this area should be considered including
investigations carried out by the World Health Organisation (WHO).
Source: SKMM - Spectrum Research Priority Areas
SRCP
Establishment
(SEPT)
Research
Framework
(APR)
1st RCSC
(JAN)
RCP
Commenced
(NOV)
2006
Award 11
Research
Projects
(SEPT)
Colloquium
2008
(DEC)
2nd RCSC
(APR)
RFP 2007
(APR)
2007
Spectrum
Research
Portal
(APR)
RFP 2008
(JULY)
2008
Award 6
Research
Projects
(JAN)
3rd RCSC
Adoption,
Appropriation and
Impact of Wireless
Technologies on
Malaysian Society
Jun 2009
4.
MMU, MIMOS
Leader: Assoc Prof Dr. Lee Sze
Wei
Wireless System Coexistence in Extended
C-Band
Jul 2009
5.
UPM, UTM, USM, IIUM, CRC
(Canada)
Leader: Dr. Nor Kamariah
Noordin
Issues on Reliable
Communications at
Frequencies Bands
above 25 GHz
Aug 2009
Duration
(months)
No.
Lead IHL and Partner(s)
Research Title
1.
UTM, Maxis
Leader: Prof Dr. Tharek Abd
Rahman
Sharing Studies between
the Mobile Service and
Other Services in the 470960 MHz Frequency Band
18
2.
UTM, UKM, USM
Leader: Dr. Muhammad
Ramlee Kamarudin
The Regulatory Measures
to Enable Introduction of
Software-Defined Radio
and Cognitive Radio
Systems
20
3.
UTM, UiTM
Leader: Prof Dr. Tharek Abd
Rahman
18
The Possibilities of High
Altitude Platform Station
Gateway Links Deployment
in the 5850-7075 MHz in
Malaysia
Aug 2009
7.
UTM, UKM, Maxis
Leader: Prof Dr. Tharek Abdul
Rahman
Emerging Wireless
Technologies
(Spectrum Needs
for IMT-Advances in
Malaysia)
Sep 2009
8.
UTM, UMP, UiTM, Malaysian
Red Crescent Society, RF
Comm. Sdn Bhd, Radio
Amateur operators
Leader: Assoc Prof Dr. Ahmad
Zuri Sha’ameri
The Use of Frequency
Adaptive HF System
Sep 2009
9.
UKM, UUM
Leader: Assoc Prof Datin Dr.
Norizan Abdul Razak
The Impact of
Wireless Technology
Among Malaysian
Society
Sep 2009
4.
UPM, UTM, USM, UIAM
Leader: Dr. Raja Syamsul Azmir Raja Abdullah
The Effect of Emission
from Short Range Devices
on Radio Communication
Services
18
Research Projects 2007
No.
Lead IHL and Partner(s)
1.
UNiM, First Principle Sdn Bhd Issue of Spectrum Cost Dec 2008
Leader: Dr. Cassey Lee Hong Kim versus Network Cost
10.
Synergising 2G, 3G
and WiMAX
Sep 2009
5.
UKM
Leader: Dr. Rozilawati Razali
Collaborative Spectrum
Management System
12
Uniten, UTM
Leader: Assoc Prof Dr.
Norashidah Md Din
UM, DiGi Telecommunications
Leader: Prof Dr. Kaharudin
Dimyati
11.
MMU, MUST
Leader: Dr. Chuah Teong Chee
Issues of Reliable
Communications at
Frequencies Bands
above 25 GHz
Nov 2009
6.
UUM, MMU
Leader: Assoc Prof Dr. Engku
Muhamad Nazri
Engku Abu Bakar
A Strategic Model in
Spectrum Demand
Allocation and Spectrum
Pricing
12
2.
Research Title
The SRCP Secretariat announced the themes for the 2008 round of research
collaboration with the RFP issuance in July 2008. A briefing session was conducted
in the same month, providing opportunities for the researchers to seek clarification
on the advertised research topics, as well as general information about the research
programme. 31 submissions were received, this being a significant increase from
the number of submissions received in the first round in 2007. However, out of
the 31 submissions, only six research proposals were selected for the 2008 SRCP
Research Fund.
UTM, Uniten, IIUM
Dynamic Spectrum
Leader: Prof Dr. Norsheila Fisal Access Management
System Using
Cognitive Radio
2009
The first Request for Proposal (RFP) was issued in 2007, wherein 22 submissions
were received. Eleven specific research proposals were selected and awarded the
first SRCP Research Fund. Two of the research projects were completed in 2008,
and the remaining nine are scheduled to be completed in 2009.
2008 Research Projects
6.
Colloquium
2009
Source: SKMM - Spectrum Research Collaboration Programme
Other Benefits of Collaboration through SRCP
• Capacity building and knowledge growth for those involved in spectrum
management.
• Funding research themes in line with needs of the industry.
• Platform for sharing knowledge and exchange of expertise locally, regionally
and internationally.
• Promotion and organisation of seminars and workshops to a wider audience
so as to help acquaint the public in aspects of spectrum management.
UTM, Univ. of Sydney,
IIUM, UniKL
Leader: Prof Dr. Rose Alinda
binti Alias
Milestone of SRCP
Spectrum Research Priority Areas
Emerging Wireless Technologies
Fast development of wireless broadband communications results in greater
demand for radio spectrum and drives the development of new technologies to
cope with increasing demand for broadband services. It is important for Malaysia
to strengthen its research activities on emerging technologies and provide the
funds for these. Emerging technologies include Cognitive Radio, Software Defined
Radio (SDR), high-altitude platforms (HAPS) and Ultra Wideband (UWB).
3.
Radio Frequency
Radiation (RFR)
Preliminary Study for
WLAN Networks and
Mobile Phone Base
Stations in Malaysia
Source: SKMM - Research Projects 2008
Completion Date
Dec 2008
Source: SKMM - Research Projects 2008
Source: SKMM - Research Projects 2008
SKMM Annual RePort 2008
070
071
Responding to
New Emerging Technologies
In May 2008, SKMM had a session with Universiti Pendidikan Sultan Idris at
Tanjung Malim, Perak. The SRCP Secretariat presented to around 100 participants
comprising researchers, lecturers and final year students from the institution. The
session raised positive awareness of the programme besides raising participants’
interest to join the SRCP research community. SKMM looks forward to more
of such interactive sessions in 2009 to promote the SRCP to other Universities
through RCP visits.
Six lectures were conducted in 2008, with participation from overseas presenters and
local universities. The lecture series is also a platform where researchers under the
SRCP who have completed their research project will be given a session to present
their findings to the industry. This helps to enlighten the industry of the findings on a
specific issue or topic and creates opportunity for further works and collaboration.
SRCP Lecture Series 2006 - 2008
No. Lecture
Presenter
1.
Spectrum rules OK: Wireless
Communications from Submarines to
Satellite
UTHM
2.
Smart Antenna and Location-Based Services UTM
21 Mar 07
3.
Wireless Broadband Access: An
Overview on Standards and Systems
Trials in Malaysia
MMU and DiGi
12 Jul 07
4.
Evolution to Next Generation Mobile
Network
Maxis
Communications
17 Aug 07
5.
Approaches in Re-farming of Spectrum
and Spectrum Management
Telenor
16 Aug 07
6.
Mobile TV
Qualcomm
4 Sep 07
7.
Current activities within ITU-R towards
IMT-Advanced or 4G Systems
NTT DoCoMo
4 Oct 07
8.
Set Top Box and Digital TV
RTM/MTSFB,
NDS AP, Telenor
Broadcast Hldg AS
21 Feb 08
SRCP RFP 2008 briefing session, July 2008
Monitoring of Research Projects
Each research team is required to submit a quarterly progress report of their
research project to the SRCP Secretariat. The quarterly report (with detailed writeups) shall comprise the physical progress of the project and also the financial
report detailing expenses incurred.
In addition, the RCP and SRCP Secretariats conduct monthly technical visits to each
research university location on a rotational basis, to check on the progress of the
research projects, provide feedback on the research works as well as conduct audit
on the research facilities or equipment acquired from the research fund. This aims
to ensure that the research project is on the right course towards achieving its
intended objectives and also to attend to any difficulties faced by the researchers.
Briefing session to Universiti Pendidikan Sultan Idris, Perak, May 2008
In August 2008, SKMM was invited to present the SRCP to participants of the
Joint Sixth National Conference on Telecommunication Technologies (NCTT)
Conference 2008. This event was hosted by Universiti Tenaga Nasional (UniTen)
and was held in conjunction with the Second Malaysia Conference on Photonics
(MCP) Conference 2008 at IOI Palm Garden Resort, Putrajaya. During the threeday event, the SRCP Secretariat delivered a paper on the “Spectrum Research
Collaboration Programme”. A research team from UniTen also presented updates
of their project “Challenges in Radio Frequency Radiation Study for Mobile Base
Station and WLAN Access Point Study”.
Lecture Series
Technical visit to University of Nottingham Malaysia Campus, November 2008
Promotional Activities
Continuous efforts are made to introduce the research programme to the academia
and industry. In addition to inviting the research community to the SRCP programmes
at SKMM’s headquarters in Cyberjaya, SKMM also responded to requests from universities to conduct “Opportunities in SRCP” session at their campus. This
enabled more interested parties from the said university to learn about the research
programme and to enquire on possible funding opportunities in the future. In such
sessions, the RCP and SRCP Secretariat will be available to provide further insights
on participation, opportunities for partnership and attend to questions from the
audiences on research areas which may be funded by the programme.
One of the supporting activities of the SRCP is the Lectures Series, with invited
speakers from the industry and universities, sharing their knowledge, expertise
and experience about spectrum. Through such events, researchers can share
their work, exchange views and issues on their ongoing research projects and
possibly seek partnership or networking with relevant parties from the industry,
Government and other IHLs. The series is opened to the public and attendance
is free of charge.
1 Dec 06
9.
WiMAX Technology and the Strategic
Importance of Interoperability for Large
Scale Deployment
WICHORUS Inc.
5 Jun 08
10.
Propagation Effect by Rain in Wireless
Communications System
UTM
1 Aug 08
11.
The Sentinels: Technologies and
Spectrum Occupancies of Radars
IIUM
24 Oct 08
12.
Unmanned Aerial Vehicle (UAV): The
USM
Integration of UAV’s Operation into Civil
Airspace
21 Nov 08
WiMAX Essentials: Technology,
Interoperability, Deployment
Challenges and Market Analysis
22 Dec 08
13.
Lecture series on Unmanned Aerial Vehicle (UAV) by Universiti Sains Malaysia, November 2008.
Date
Source: SKMM
Awards Solutions,
Inc
SRCP Colloquium 2008
SRCP’s 2008 activities included the inaugural SRCP Colloquium 2008, which was
held on 18 and 19 December 2008 at the Putrajaya Marriott Hotel. The two-day
event enabled all research teams to share and present their progress and findings
to SKMM, RCSC, RCP and the SRCP research community. Each of the eleven team
leaders from the SRCP Research Project 2007 presented updates to the audience
comprising researchers, research officers and research assistants as well as
representatives from KTAK and SKMM offices. The audience was invited for their
comments and feedback on possible improvements to the projects. At the end of
the Colloquium, all the presentation material was shared with the SRCP research
community through the SRCP portal.
1
2
4
5
3
1) Chairman of SKMM officiated the opening of SRCP Colloquium 2008 on 18
December 2008
2) Prof Ir Dr. Ahmad Faizal, Chairman of RCP and Mr Toh Swee Hoe, Senior Director
of Research Planning Division
3) Participants at the SRCP Colloquium 2008
4) Encik Mohamed Sharil Tarmizi, COO of SKMM delivering the Closing Speech
at the event
5) Group photo at the end of the event
Acronyms
CRC
Canadian Research Center
DiGi
DiGi Telecommunications Sdn Bhd (mobile operator)
IIUM
International Islamic University Malaysia
Maxis
Maxis Communications Berhad (mobile operator)
MIMOS
Malaysian Institute of Microelectronic Systems
SKMM Annual RePort 2008
072
073
Responding to
New Emerging Technologies
MMU
Multimedia University
MRCS
Malaysian Red Crescent Society
MUST
Malaysian University of Science and Technology
UiTM
Universiti Teknologi MARA
UKM
Universiti Kebangsaan Malaysia
UM
Universiti Malaya
UMP
Universiti Malaysia Pahang
UNiM
University of Nottingham Malaysia Campus
Uniten
Universiti Tenaga Nasional
UniKL
said transfer was held in SKMM, Cyberjaya on 27 January 2008.
In November 2007, the Commission approved TT dotCom Sdn Bhd request
for transfer of 3G Spectrum Assignment, from TT dotCom Sdn Bhd to DiGi
Telecommunications Sdn Bhd. The event for the said transfer was held at Dewan
Putra Perdana Shangri-La, Putrajaya on 7 May 2008.
The total number of base stations for IMT2000 SA installed by all the operators
in 2008 are 5,056.Total base stations installed by TM, UMTS, U Mobile and TT
Dotcom according to regions are listed below:
Month
Total application 2007
Total application 2008
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
Universiti Kuala Lumpur
Region/
Operator
TM/Celcom
UMTS
U Mobile
TT dotCom/
DiGi
UPM
Universiti Putra Malaysia
Northern
402
416
0
0
USM
Universiti Sains Malaysia
Eastern
212
107
0
0
Sep
5,403
7,144
UTHM
Universiti Tun Hussein Onn Malaysia
Central
992
1,357
479
0
Oct
2,874
6,063
UTM
Universiti Teknologi Malaysia
Southern
383
314
0
0
Nov
3,328
5,986
Sabah
129
43
0
0
Dec
3,439
1,813
Sarawak
162
60
0
0
Total
83,636
91,464
2,280
2,297
479
0
Spectrum Assignment and Management
Types of Assignment
Spectrum Assignment (SA)
IMT2000 Spectrum Assignment
International Mobile Telecommunication 2000 (IMT2000) or Third Generation
Mobile System (3G) spectrum had been assigned to Telekom Malaysia Berhad (TM)
and UMTS (M) Sdn Bhd on 2 April 2003 in the first round of the tender exercise.
Two blocks of spectrum, comprising the earlier unassigned block in the first
round of 3G tender and the remaining block in the core 3G spectrum [Terrestrial
portion] band were put up for grab in this round of tender. TT dotCom Sdn Bhd
and MITV Corporations Sdn Bhd were assigned with IMT2000 spectrum on 8
November 2006 and 2 March 2007 respectively through a second round of the
tender exercise.
On 19 December 2007 MITV Corporations transferred their SA to U Mobile Sdn
Bhd. In January 2008, the Commission approved Telekom Malaysia Berhad’s
(TM) request for the transfer of 3G Spectrum Assignment, from Telekom
Malaysia Berhad (TM) to Celcom Malaysia Berhad (Celcom). The event for the
Total
AA applications by type of apparatus
Meeting’s (LCM) papers were forwarded for LCM approval in 2008. The number
of applications processed since the beginning of the year and the comparison
against year 2007 are outlined below:
Land Fixed Station
(Cellular Band) 25.2%
Aeronautical
Fixed Station
0.2%
Broadcast Station
0.7%
Amateur Station 2.1%
Land Mobile Station 1.2%
Aeronautical Mobile
Station 1.3%
Ship Station 3.3%
Table 3: Monthly AA Applications Since Beginning of the Year 2008
SKMM processed 10 types of AA. The table below gives the breakdown on the
number of AA based on each type of AA for 2008 while the pie chart shows the
graphical representation.
Type of apparatus
Jan
Feb
Mar
Earth Station 3.9%
SKMM also received various types of apparatus assignment applications from
Government agencies. The agencies are as follows:
• Polis DiRaja Malaysia
• Majlis Keselamatan Negara
• Jabatan Penerbangan Awam
• Kementerian Pelajaran Malaysia
• Jabatan Penyiaran Malaysia
• Jabatan Pengairan dan Saliran Malaysia
• Jabatan Perpaduan Negara dan Integrasi Nasional
• Jabatan Meteorologi Malaysia
• Pusat Ko-Kurikulum
Table 1: Total Base Stations for SA
In terms of SA revenue collection, SKMM had collected more than RM40 million
from TM, UMTS and U Mobile in 2008. The collected fees are from both SA and
Annual Maintenance Fee. Details of the collection are shown in the table below:
Land Fixed Station
4.0%
Terrestrial Microwave Station
58.1%
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Total
Operator
SA Fee
Maintenance Fee
Total (RM)
Ship station
49
90
141
69
44
80
67
47
276
37
1,165
948
3,013
Celcom
8,000,000
11,077,920
19,077,920
Aeronautical mobile station
15
47
39
30
13
8
23
28
24
11
913
8
1,159
UMTS
8,000,000
10,726,800
18,726,800
Land mobile station
78
114
293
119
110
96
58
21
68
29
52
53
1,091
U Mobile
0
2,399,040
2,399,040
Amateur station
59
305
149
97
55
347
42
79
572
112
100
12
1,929
DiGi
0
0
0
Broadcast station
12
49
89
212
16
177
18
15
15
0
3
7
613
16,000,000
24,203,760
40,203,760
Aeronautical mobile station
2
6
18
19
57
15
1
1
25
1
0
0
145
Land fixed (Allocated cellular band)
0
18,359
268
303
232
414
238
276
2,535
254
188
0
23,067
166
154
1,117
295
298
342
248
109
206
138
617
4
3,694
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
515
51
120
35
1,125
23
3
34
715
14
938
0
3,573
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
Total (RM)
Table 2: Fee Collection
Land fixed station
Apparatus Assignment (AA)
This section describes AA applications and collection for the year 2008.
AA Applications for Year 2008
SKMM processed 91,464 applications in 2008. A total of 12 Licensing Committee
Terrestrial microwave station
Earth station
Grand total
Table 4: AA Applications by Type of Apparatus
SKMM Annual RePort 2008
074
075
Responding to
New Emerging Technologies
140,000,000
• Jabatan Pelajaran Perlis
• Jabatan Pelajaran Sabah
• Jabatan Air Negeri Sabah
• Jabatan Perkhidmatan Veterinar Terengganu
• Jabatan Bekalan Air Kedah Utara
• Universiti Teknologi Malaysia
• Universiti Teknologi MARA
• Universiti Utara Malaysia
120,000,000
100,000,000
80,000,000
60,000,000
40,000,000
Delegation of Approval to Senior Director
In order to reduce the time taken to approve applications for Apparatus
Assignment, SKMM has taken the initiative to shorten the AA processing period
by recommending to the LCM and SKMM’s Chairman to delegate the approval to
Resource Assignment and Management Division Senior Director. The approval
was given by SKMM’s Chairman for the following services:
• Allocated Cellular Band-GSM900 and GSM1800
• WiMAX 2.3 GHz
• CDMA 450
Revenue from AA and SA
A total of RM214.9 million in revenue has been collected by SKMM. For 2008, the
SKMM collection has increased by RM27 million compared to 2007. The collection
since early of the year are shown in the following table and graph.
Month
Year 2007 (RM)
2008
2007
Year 2008 (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
Dec
Total
20,000,000
0
Jan Feb Mac Apr May Jun Jul
Aug Sep Oct Nov Dec
Months
Expired AA
Action was taken on AAs, which have expired and not renewed by their holder.
Regional offices were informed on AA cancellation 14 days before the client list is
brought up to LC meeting for acknowledgement. The 14 days margin is provided to
increase the likelihood for both regional offices to collect the outstanding payment
and also to provide ample time for client to continue with payment.
As of January 2008 to December 2008, 27 FIRs were raised and submitted to
Enforcement Department for further action.
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
subject to the AA guideline conformity.
Issuance of New Call Sign and
Maritime Mobile Service Identification (MMSI)
SKMM issued call signs to Amateur, Aircraft and Ship services. For Ship station,
SKMM also issued MMSI numbers to be used for ship electronic identity. The new
call signs and MMSI numbers issued in 2008 are shown in the table below:
Number of call signs
issued
Number of MMSI issued
Maritime
526
210
1,240,143
Aircraft
64
-
2,143,356
379,710
Amateur
1,625
-
187,366,340
214,962,223
Grand Total
2,215
210
Table 5: Comparison of AA and SA collection for 2007 & 2008
Service
Table 6: Total issuance of call sign & MMSI since January 2008
Class Assignment (CA)
SKMM presented the new CA for LCM approval on 22 May 2008. However the
committee requested that a CA Committee be set up with participation of Technical
Standard Department, Spectrum Research and Planning Department, Legal and
Secretarial Department and Resource Assignment Management Department.
To date, five meetings have been organised to finalise the document. The proposed
nine new schedules as an addition to the existing schedules are as follows:
• Radio frequency identification device
• Active medical implant
• Aeronautical mobile telemetry access device
• Mobile satellite access device
• Satellite broadcasting receiver device
• Terrestrial television broadcasting receiver device
• Terrestrial radio broadcasting receiver device
• One-way radio pager receiver device
• Satellite radiolocation receiver device
There are also amendments, additional frequency bands and update of technical
parameters made for the existing schedules. The schedules are:
• Cellular mobile access device
• Short range communications device
• Leased channel radio access device
• Wireless access device
• Very small aperture terminal
• Security device
• Wireless microphone device
• Short range communications device
to have an online payment facility to pay for the application fee, SKMM launched
e-payment services in August 2008.
Before August 2008, the modes of payment for e-Spektrum are by manually
submitting payment to the counter by cheque, postal order, cash deposit, bank draft
and bank account transfer. With the advent of this online payment, customers can
now make payment using the e-payment facility. The modes of payment allowed for
e-payment are either through credit cards or auto-debit.
Bank Islam Malaysia Berhad has been appointed by SKMM as the Payment Gateway
Provider for implementation of e-Spektrum. The e-Spektrum address is: https://espektrum.mcmc.gov.my
The e-Payment address is: https://epayment.skmm.gov.my
A Refresher Training on SpMS was successfully conducted from 18 to 28 August
2008 at SKMM Regional Office in Shah Alam. The training was delivered by Mr.
Juan Suanrez from LS Telecom AG. The purpose of this Refresher training was to
educate SpMS users especially from regional offices on the correct procedure in
using the SpMS. This refresher training was also meant to train SpMS users on the
new features and they are expected to train other SpMS users when they return to
their offices. The training modules included the following:
• Administrative process in issuing new apparatus assignment licencing for
all services
• Performing technical analysis using new SpectraEMC tool
• Processing cancellations, reinstatements, renewal and transfer of licence
• New features as a result of customisation done to the system.
New Spectrum Management System (SpMS)
The Spectrum Management System (SpMS) has undergone a few customisations. The
online web apparatus assignment application submissions through the Internet is one
of the customisation tasks done by SKMM, and it is known as e-Spektrum. e-Spektrum
was launched in March 2008, enabling SKMM registered clients to submit their
Apparatus 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
SKMM offices to submit their application. One of the advantages of e-Spektrum is that
it reduces data entry work which constitutes most of the processing time.
e-Spektrum has been considered as one of the initiatives that SKMM took to
improve SKMM’s service delivery to its customers. To further enhance the system
Analogue to Digital Migration
Digital Trunk Radio Services (DTRS)
Migration from analogue to digital was part of SKMM’s FID plan. Towards achieving
this goal, the analogue trunked radio services (TRS) providers were encouraged to
start migrating to a digital system.
SKMM Annual RePort 2008
076
077
Responding to
New Emerging Technologies
As part of the migration plan, SKMM advised all trunked radio operators to
team up to form a consortium. As a result, three consortiums, Electcoms Group,
DTRS and Hasyon Teknik were instituted. The following are the companies in
each consortium:
Consortium
Electcoms Berhad
Digital Trunked Radio Implementation Status
As a result from the AA verification work within Klang Valley, EWSB utilised the
highest number of AAs with 179 channels (89%) in block A and 14 channels (7%)
in block C. DTRS meanwhile utilised only seven channels (3.5%) in block A and
14 channels (7%) in block C and none in block B. Segi Maju on the other hand,
utilised only six channels (3%) in block C at Casa Vista Condo Bangsar (AAs are
still valid until 15 and 19 June 2009 respectively).
CMRS Trunk Radio Sdn Bhd
Electcoms Group
In the Pahang and Terengganu AA verification works, a total of 52 channels for
trunk radio operators were inspected. EWSB utilised the highest number of AAs
with 28 channels (4.67%) in block A, eight channels (1.33%) in block B, but it had
no channel in block C. Segi Maju meanwhile utilised only 14 channels (2.33%)
in block A and two channels (0.33%) in block B and none in block C. Widenet
Distributor (DTRS Consortium) and Textphon (Hasyon Technologies) on the other
hand, did not utilise any channels in all blocks.
Syarikat Pelatus Sdn Bhd
Saturn Holdings Sdn Bhd
Push-To-Talk Sdn Bhd
Widenet Sdn Bhd
Mal-Tel Sdn Bhd
DTRS
STR Communications Sdn Bhd
Asiaspace (non-trunked radio operator)
Hasyon Teknik Sdn Bhd
Hasyon Technologies
Cometron Sdn Bhd
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.
Pager Communications Sdn Bhd
Migration to Digital CDMA450 from Analogue ATUR450 and other
analogue services
As of December 2008, total applications received for CDMA450 by Telekom
Malaysia are 213 applications. Table 9 shows the total sites according to region.
Samen Trunk Radio Sdn Bhd
Textphone Sdn Bhd
Table 7: Consortium and Companies
SKMM had also proposed the frequency block arrangement for 800 MHz
frequency to the following digital TRS consortiums, government and private
network companies.
Northern
44
Eastern
39
Central
34
Southern
45
A
1.
DTRS Consortium
(IDEN/TDMA)
Electcoms Wireless
EWSB(GOTA/CDMA)
Government/
Private Network
Sabah
28
2.
Future Expansion
Electcoms Wireless
EWSB
Government/
Private Network
Sarawak
23
Total BTS
213
3.
Future Expansion
Electcoms Wireless
EWSB
Government/
Private Network
Electcoms Wireless
EWSB
Government/
Private Network
Hasyon Technologies
C
Number of BTS
Frequency
Block
4.
B
Region
Table 8: Frequency Block for Consortium, Government and Private Network Companies
Table 9: Total BTS by Region
Application on Cellular Base Station (ACB)
From January 2008 to August 2008, the ACB AA applications were approved
by the LCM. However, LCM authorised the approval of ACB AA applications to
Resource Assignment and Management Division’s (RAMD) Senior Director
starting August 2008 onwards. To date, total ACB AA applications approved
by both LCM and RAMD’s Senior Director are 22, 879 applications.
2.3GHz Broadband Wireless Access (BWA)
To date, 427 applications have been approved by LCM. Based on the current AA
approved by the LCM, the offered coverage for GIRN system are as follows;
Peninsular Malaysia
The Tender Evaluation Committee (TEC) presented the final evaluation report to
the Commission on 23 February 2007. Pursuant to the approval of the evaluation,
on 16 March 2007, the Minister of Energy, Water and Communications made an
announcement on the successful applicants for the 2.3GHz Broadband Wireless
Access (BWA) spectrum tender exercise. The successful applicants are as follows:
Company
Band (MHz)
Area of Operation
Bizsurf (M) Sdn Bhd
2330 – 2360
Peninsular Malaysia
MIB Comm Sdn Bhd
2360 – 2390
Peninsular Malaysia
Asiaspace Dotcom Sdn Bhd
2300 – 2330
Peninsular Malaysia
Redtone-CNX Broadband
2375 – 2400
Sabah and Sarawak
Table 10: Successful Applicants for 2.3GHz BWA Spectrum Tender
The letters of announcement were issued on 30 March 2007 to the successful
applicants. The companies then submitted their Bank Guarantee and DBPs. The
DBPs were approved in January 2008, whereby the WiMAX operators are expected
to deliver the commercial roll-out by August 2008.
Sabah and Sarawak
From January 2008 to August 2008, the WiMAX AA applications were approved by
the LCM. To speed up WiMAX roll-out, LCM has authorised the approval of ACB AA
applications to RAMD’s Senior Director starting September 2008 onwards. To date,
total WiMAX AA applications approved by both LCM and RAMD’s Senior Director
is 593 applications.
Government Integrated Radio Network (GIRN)
On 15 February 2008 until 27 March 2008, SKMM received 650 AA applications from
Sapura Secured Technologies Sdn Bhd on behalf of Majlis Keselamatan Negara.
However, since the system is using a TETRA system, a wide range of bandwidth
is needed to implement GIRN network. To ensure that the resource is utilised
efficiently, SKMM is involved directly in this project by attending all progress
meetings concerning GIRN network.
Thus far, 152 channels were approved for the implementation of GIRN network.
This comprised 128 channels to be used nationwide and additional 24 channels
were approved to be used for the base station in the KL city area.
Trial Application On Broadcasting Service
SKMM received few applications from various parties to conduct trial on new
broadcasting technologies. The descriptions of trials are as follows:
Mediaflo Trial by Measat Broadcast Network System Sdn Bhd (MBNS)
On 1 October 2007, MBNS in collaboration with Maxis, submitted a letter to SKMM
SKMM Annual RePort 2008
078
079
Responding to
New Emerging Technologies
to conduct a trial using MediaFLO technology. Prior to MediaFLO, MBNS conducted
a trial using DVB-H technology.
The trial application was approved by LCM on 5 November 2007 and the AA for the
trial expired on 11 February 2008. The details of AA for the trial are as follows:
Station Location
Licence Expiry
Channel
Bandwidth (MHz)
Menara Haw Par
11 Feb 2008
32
8
Ibu pejabat Risda
11 Feb 2008
32
8
JW Marriott Hotel KL
11 Feb 2008
32
8
Table 11: AA Details for MBNS Trial
DVB-H Trial System by U Television Sdn Bhd
On 22 August 2007, UTV submitted AA Applications to SKMM to install DVB-H
system at three locations in Klang Valley. LCM approved the application on 22
November 2007 for a six-month period on a trial basis.
Upon expiry, in April 2008, SKMM received additional AA applications from UTV on
their DVB-H systems. The applications were approved by LCM on 22 May 2008.
The details of AA for the trial are as follows:
The details of AA for the trial are as follows:
Station Location
Licence Expiry
Channel
Bandwidth (MHz)
Menara Kuala Lumpur
16 Jun 08
Ch 11B
1536
Bukit Gasing
16 Jun 08
Ch 11B
1536
Table 13: AA Details for MTSFB Trial
Station Name
Bukit Besi
Licence Expiry
Channel
Bandwidth (MHz)
10 Sep 2009
Ch 6b
1536
Table 15: AA Details for TV3 Trial
Unmanned Aerial Vehicle (UAV)
However due to circumstances, the transmission of T-DMB was only transmitted
from Menara Kuala Lumpur.
T-DMB Trial System by Asiaspace Sdn Bhd
Asiaspace Sdn Bhd has submitted three AA applications to roll out the Digital
Multimedia Transmission using DAB technology in the L-Band (1467 MHz to 1492
MHz) on 27 November 2007.
On 14 January 2008, Asiaspace Sdn Bhd also submitted AA application to roll
out Digital Multimedia Transmission using DAB technology utilising VHF band III
(174 MHz to 230 MHz).
The applications were reviewed by the LCM on 3 March 2008 and they were held
pending by the LCM committees at that time.
Unmanned Aerial Vehicle (UAV) is a remotely controlled or autonomous aircraft
used for surveillance and strike missions. The aircraft is used in high-risk operation,
where the usage of manual aircraft is impossible.
The LCM agreed that the applications be held pending a development in the policy
on DTT, RF and Service Plan and SRSP on L-Band by RPD.
Licence Expiry
Channel
Bandwidth (Mhz)
Berjaya Times Square
3 Dec 08
Ch 49
8000
Usj Summit
3 Dec 08
Ch 49
8000
UPM Tower (Ch 49)
3 Dec 08
Ch 49
8000
Tropicana Golf & Country Resort
3 Dec 08
Ch 49
8000
Goldcourse Hotel (Ch 49)
3 Dec 08
Ch 49
8000
Casa Vista (Ch 49)
3 Dec 08
Ch 49
8000
Station Name
Licence Expiry
TX (Mhz)
Bandwidth (Mhz)
Bukit Gasing (Ch 49)
3 Dec 08
Ch 49
8000
TPM, Bukit Jalil
14 Mac 2009
1454.672
1536
Bukit Lanjan-G1519 (Ch 49)
3 Dec 08
Ch 49
8000
Menara Kuala Lumpur
14 Mac 2009
1454.672
1536
Sri Damansara (Ch 49)
3 Dec 08
Ch 49
8000
One World Hotel
14 Mac 2009
1454.672
1536
Table 12: AA Details for UTV Trial
T-DMB Trial System by Malaysian Technical Standard Forum Berhad (MTSFB)
On 6 November 2007, MTSFB submitted AA Applications to SKMM to install T-DMB
trial system in the Klang Valley. LCM approved the application on 22 November
2007 on a six-month trial basis.
However, due to a few considerations, the LCM then agreed to approve the
application on 11 September 2008 for a six-month period on a trial basis.
The details of AA for the trial are as follows:
Table 14: AA Details for Asiaspace Trial
T-DMB Trial System by Sistem Televisyen Malaysia Berhad (TV3)
On 10 November 2008, SKMM received a letter and trial proposal from TV3 to conduct
digital TV trial (T-DMB). LCM approved the application on 27 November 2008 with a
six-month trial basis and the trial start date will be upon commissioning of the transmitter.
This application was tabled to LCM on 23 May 2008 and was approved on condition
that interference shields are installed prior to start of operation of the hubs. On
26 September 2008, SKMM made a visit to their Hub located at UPM Serdang and
found that the installation of interference shielding was almost completed. The
illustration of the installation is shown below.
A consortium known as Unmanned Systems Technology Sdn Bhd (UST) in
collaboration with the Ministry of Defense, has developed UAV to conduct
surveillance of the country’s land and sea borders.
On 17 and 18 March 2008, UST invited SKMM to carry out frequency scanning
test during UAV Operational Test at Mersing Airstrip, Johor to ensure that all radio
communication apparatus being used during the test was in accordance to the
frequency regulated in the CMA 1998 and Spectrum Regulation. During the trial,
the aircrafts were equipped with video cameras and data-link apparatus to provide
the targeted surveillance for Malaysia’s land and sea borders.
The details of AA for the trial are as follows:
Station Location
GHz to 18.675 GHz have a possibility to receive harmful interference from existing
terrestrial microwave in 18 GHz band. Several meetings were held between SKMM
and TTdC to discuss this matter and one of the options to mitigate the impact of
interference was for TTdC to install an interference shielding at their Hub station
located at UPM Serdang and Pedas Linggi to protect their network.
As a result of frequency scanning works in Mersing, SKMM had identified a specific
frequency band for UAV applications.
IPSTAR
SKMM received AA applications from TTdC on 20 November 2007 to install two
satellite earth stations hubs for a broadband network using IPSTAR satellite that
is owned by a Thailand company called Thaicom Public Company Ltd (Thaicom).
IPSTAR satellite is a telecommunications satellite launched into geosynchronous
orbit by Thaicom Public Company Limited (formerly named Shin Satellite). It was
designed for high speed, two-way broadband communications over an IP (Internet
Protocol).Its network utilises Ku-Band spectrum for user applications and Ka-Band
for hub communications. Thaicom claimed that the Ku-band spectrum provides
solution for services in the Asia-Pacific region with a high-link availability for VSAT
user applications. However, the service availability is yet to be operationally proven,
especially, on rain attenuation compensation for both Ku and Ka bands.
Analysis was made on the current spectrum usage within the bands identified
by the IPSTAR network. Based on the analysis, it was found that some of the
spectrums requested by TTdC especially the Ka-band downlink frequency from 18.3
Awareness Programme
In 2008, SKMM conducted seven Apparatus Assignment workshops with industry
and government agencies at DiGi HQ Subang Hi Tech, Persatuan Nelayan Miri,
Sarawak, Jabatan Laut Bintulu, Sarawak, Jabatan Laut Mersing, Johor, Port
Authority Johor Bahru, Johor, Pengusaha Feri Mersing, Johor and SIRIM Johor
Bahru, Johor. Participants of these awareness programmes were mainly from
various government enforcement agencies and fishery communities.
Involvement In International Events
SKMM was also involved in international events in collaboration with Spectrum,
Engineering and Interference Resolution Department and International Technical
Co-ordination Department. Below is the list of events which saw involvement of
SKMM staff members:
Event
Duration
Formula One
21 – 23 Mac 2008
GT Japan
20 – 22 Jun 2008
MotoGP
17 – 19 Oct 2008
A 1 GP
21 – 23 Nov 2008
Location
Sepang International Circuit,
Sepang, Selangor
Table 16: International Events
SKMM Annual RePort 2008
080
081
Responding to
New Emerging Technologies
Field Strength Measurement Activity
SKMM and particularly the broadcast unit joined two field strength measurement
activities with two licencees namely Rimakmur Sdn Bhd (Suria FM) and BFM Media
Sdn Bhd. Both of these measurement activities were performed together with Telekom
Malaysia Berhad as well. The measurements were executed to get the signal strength
values at a few test points within the coverage areas. This is to analyse or justify any
possible interference issues that might occur due to the FM transmissions. The field strength measurement work with Rimakmur Sdn Bhd (Suria FM) was
performed on 4 August 2008 at seven locations, Seri Perdana Putrajaya, Balai Polis
Sepang, Sek Men Keb Sg Pelek, Costa Rica Port Dickson, Hospital Seremban,
Mantin and TM Nilai. This activity was done annually by Telekom Malaysia Berhad
for Rimakmur Sdn Bhd and SKMM was involved to verify the signal strength
measurements captured. The measurements were taken based on the signal strength
received from Gunung Ulu Kali, Gunung Ledang and Gunung Telapak Burok.
SKMM also joined the field strength measurement work with BFM Media Sdn
Bhd on 12 November 2008 at six locations namely Pantai NS, Semenyih, Dataran
Merdeka, Bukit Petaling (Istana Negara), Masjid Al-Bukhari (Jalan Loke Yew) and
Pusat Bandar Damansara. The work was actually a re-measurement condition that
SKMM put to BFM Media Sdn Bhd due to unsatisfactory signal strength results
given to SKMM in their trial FM radio transmission report. For each location, the
signal strength was measured based on the frequency given to BFM Media Sdn Bhd
as well as for the adjacent channels (±200 kHz separation).
For 2008, SKMM performed site verification work in six regions/areas. A total of
1,638 apparatus have been verified in 2008 as outlined below:
Region
Total No. of Inspected
Stations in 2007
Total No. of Inspected
Stations in 2008
Sabah
139
374
Central
62
273
Study Visits
Southern
100
433
Northern
80
162
Sarawak
25
213
Eastern
70
183
Total
476
1,638
In 2008, three study visits were conducted in order to increase knowledge and skills
in relevant technologies. The study visits conducted were:
•Digital Radio Mondiale (DRM) at Stesen Pemancar RTM Kajang (Luar Negeri);
•Aeromobile trial demonstration by DiGi Telecommunications Sdn Bhd
•Ship station visit at Bintulu Port.
Table 17: Number of Apparatus Verified
Table 18 below shows the comparison of non-compliances committed by major
operators, during the AA audit works that were carried out in six regions/ areas
for year 2008.
Telco
Total AA
Verified
No. of
Compliance AA
No. of Non
Compliance AA
% of Non
Compliance
DiGi
338
218
120
35.5
Celcom
462
443
19
4.1
Telekom
303
296
7
2.3
Maxis
403
399
4
1.0
AA Radio Inspection
Table 18: Number of Apparatus Verified
SKMM conducted frequency inspection and site verifications. In order to ensure
that AA holders comply with the assignment given to them, inspections at their
apparatus sites were conducted periodically.
Table 19 below shows that the highest number of AAs verified are from fixed service
at 1,084 followed by land fixed at 515 and broadcast at 39 AAs.
Area
In 2008, DiGi Telecommunications Sdn Bhd was identified as having the highest
non-compliances percentage, (35.5%) compared to other major operators for which
the percentage of non-compliances was less than 5%.
As a result of our inspection, applications by telcos increased tremendously.
Waiting action from RTM
1
Detailed interference complaints are available at http://aduanadmin.skmm.gov.my/
Spectrum Monitoring
Spectrum occupancy measurement was performed at all NASMOC stations on 29
July, 27 September and 20 December 2008. Spectrum occupancy bands are:
• Aeronautical 108 to 137 MHz
• Private network 138 to 139.4 MHz and 142.6 to 144 MHz
• Amateur 144 to 148 MHz
• Maritime 156 to 157.5 MHz and 160.6 to 162 MHz
• Private network 443 to 444 MHz and 488 to 449 MHz
• Trunk radio 806 to 821 MHz and 851 to 866 MHz
• WiMAX 2300 to 2400 MHz
• WiMAX 2504 to 2688 MHz
Field strength measurements were performed weekly for all FM radios and TV
transmitters at all NASMOC stations starting 30 July 2008.
Land Fixed
Broadcast
No. of AA Verified
No. of Compliance AA
No. of Non Compliance AA
Non Compliance %
Sepang & PD
171
102
0
273
232
41
15.0
Sabah
266
102
6
374
345
29
7.8
Spectrum Interference
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
Spectrum Engineering and Interference Resolution (SEIR) Department 3 received 19
interference complaints in Q3 and 39 complaints in Q4 of 2008. Six complaints are still
pending for resolutions.
Perak
96
40
26
162
145
17
10.5
Total
1,084
515
39
1,638
1,440
198
12.1
Table 19: AA Site Verification Summarised for 2008
2
NASMOC and Spectrum Engineering
and Interference Resolution
Fixed
Region
Waiting investigation report from NRO
Status of pending complaints:
Status
Investigation
Quantity
3
Spectrum Co-ordination
International Technical Co-ordination
The International Technical Co-ordination’s (ITC) activities involve co-ordinating
assignments of radio frequency spectrum on space satellite systems and terrestrial
systems with foreign authorities and the International Telecommunication Union (ITU).
These activities comply with provisions in the Radio Regulations (RR) of ITU, which is
the international regulation that regulates use of frequencies across the world.
The ITC focuses on managing the co-ordination of the Malaysian space satellite
networks under the MEASAT series with priority on completion of co-ordination
for MEASAT filings at 5.7E and 46E, in line with MEASAT’s launch plans.
Space Satellite Systems: Requests for Co-ordination
Published by ITU International Weekly Circular
300 responses to Requests for Co-ordination for space satellite systems
published in the ITU International Weekly Circular were processed during
SKMM Annual RePort 2008
082
083
Responding to
New Emerging Technologies
2008 and shown below:
Submitted Filings to ITU
Jan-Dec 2008
No. of networks processed
Total 2008
2008 Target
300
200
Total 2008
2008 Target
MEASAT Satellite Networks
25
11
Earth Stations
21
21
Table 1: Requests for Co-ordination
Table 3: Filings Processed
These responses were communicated to the countries concerned and thereafter,
co-ordination was carried out on a bilateral basis to reach an agreement that
ensured the concerned satellite networks could co-exist without causing harmful
interference to one another.
Registration Data at ITU for
Maritime Mobile Service Identity (MMSI)
Intersystem Satellite Co-ordination Meetings
The Intersystem Satellite Networks Co-ordination (ISNC) meetings were scheduled
to resolve outstanding issues on harmful interference between affected satellite
networks belonging to other countries and the MEASAT Satellite networks. Six
meetings were planned for 2008 with Korea, United Arab Emirates, Australia and
United Kingdom. Co-ordination was also carried out through correspondence with
Saudi Arabia and China.
Detailed co-ordination was carried out for each of the frequency assignments
of the affected satellite networks. Upon co-ordination completion, ITU will be
notified by both parties and the process of registration at the Master International
Frequency Register will follow thereafter.
MMSI is a nine-digit number assignment system that uniquely identifies a
maritime mobile service. For ship stations, the MMSI comprises of a three- digit
Country of Registration identifier (Maritime identification Digits or MID) followed
by a six-digit ship identity. The ITU has allocated one MID to each country and
Malaysia‘s MID is 533.
ITC submitted 213 MMSI numbers belonging to Malaysian registered vessels for
registration in 2008.
Registered MMSI to ITU
TOTAL
Details of the meetings held in 2008 are shown below:
No.
Date (2008)
Country
Venue
1.
16-20 Jun
Korea
Korea
2.
7-10 Jul
United Arab Emirates
Abu Dhabi
3.
17-21 Nov
United Kingdom
London
4.
1-5 Dec
Australia
Melbourne
Table 2: Meetings Conducted and Participated
Filings for Frequency Assignments
Submitted to ITU for Government and
MEASAT Satellite Networks
ITC processed and submitted 25 filings of MEASAT satellite networks and 21
registrations of frequencies for earth stations to ITU in 2008.
Total filings processed and submitted for 2008:
The Maritime Mobile Access and Retrieval System is an online information
system with a ship station database and accessible to the maritime community.
The system is primarily intended to support the Global Maritime Distress and
Safety System (GMDSS). It used to identify ships in distress besides providing
pertinent vessel information.
Total 2008
2008 Target
213
200
SKMM is a member of four technical border co-ordination committees:
1) Frequency Assignment and Co-ordination Singapore, Malaysia and Brunei
(FACSMAB);
2) Joint Technical Committee between Malaysia – Thailand (JTC);
3) Joint Committee on Communications between Malaysia – Indonesia (JCC); and
4) Trilateral Co-ordination Meeting among Indonesia, Malaysia and Singapore (Trilat).
These committees co-ordinate frequency registrations for stations along the
designated areas, resolve reported interference cases, carry out frequency planning
for future services and harmonise existing band plans.
SKMM ensures that all Malaysia’s co-ordinated frequencies at the above committee
meetings are notified to ITU’s Master International Frequency Register (MIFR).
These frequencies will then be protected should there be interference from other
users 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
meetings were held. These meetings discussed frequency-related matters,
policy and regulatory updates and other pertinent areas to strengthen
regional co-operation and relationship within the three countries. In addition,
the member countries will share the knowledge on the implementation of
new technology.
b. 55 Malaysian frequencies were registered at FACSMAB in 2008.
Table 4: Registered MMSI to ITU
Frequency Registrations
Meeting
Venue
Date
794
Singapore
25 Jan 08
10
-
5
795
Virtual
21 Feb 08
-
1
14
Border Technical Co-ordination
796
Brunei
17 Mar 08
-
3
16
Border Co-ordination ensures harmonised use of spectrum at border areas
by efficiently co-ordinating the frequency spectrum amongst neighbouring
countries. This is carried out in accordance with relevant national regulations
and international conventions and regulations.
797
Malaysia
17 Apr 08
-
-
-
798
Virtual
26 May 08
7
-
4
799
Singapore
19 Jun 08
-
3
2
800
Malaysia
31 Jul 08
1
1
2
801
Brunei
21 Aug 08
1
3
1
802
Virtual
25 Sep 08
29
6
-
803
Virtual
23 Oct 08
-
-
-
804
Malaysia
27 Nov 08
6
-
6
The database can be accessed through a dedicated dial-up system and it is also
accessible from the ITU website (www.itu.int).
These meetings discuss frequency related matters, policy and regulatory
updates as well as other pertinent areas to strengthen regional co-operation
and relationship amongst the three countries. In addition, the nations
share learning gained during implementation of new technologies within
respective countries.
Malaysia
Singapore Brunei
805
Singapore
16 Dec 08
1
7
11
Sub total
55
24
61
Grand total
140
Summary of meetings held is shown above, including the Review Meeting.
c. The following subjects were addressed by FACSMAB in 2008:
• Mobile Communications Onboard Aircraft (MCA)
• Review on the 2300 MHz and 2500 MHz Band Plans
• Interference Resolution and Sharing in 880 – 890 MHz Band (EGSM)
• Digital Wireless Microphones
• FACSMAB Web Portal
d. The following items have been identified for future FACSMAB work items for
the first half of 2009:
• IMT in 450 – 470 MHz band
• Intelligent Transport System (ITS) in the 5.9 GHz band
• L-Band Spectrum Usage at the Border Areas
• Electronic News Gathering (ENG)
• Amateur Radio in 5 MHz band (Secondary)
• Unmanned Aerial Vehicle (UAV)
e. FACSMAB is currently working out the digital migration plan for terrestrial
television so as to align the operating parameters (network synchronisation,
uplink and downlink transmit ratio) for the broadcasting band within the
common border areas. Harmonisation of other frequency bands to cater
towards the introduction of new radio services are also being worked out for
the border areas.
f. The updated FACSMAB database (as of December 2008) was successfully
uploaded in Citrix to allow access and sharing between RAMD users.
g. A FACSMAB Web Portal project will develop the online portal for members
to disseminate and share information. This effort stands to increase public
awareness of FACSMAB’s roles and work activities. The portal is targeted
for Q4 of 2009.
2. Joint Technical Committee (JTC) on Co-ordination and Assignment of
Frequencies along Malaysia – Thailand Common Border Meeting
a. JTC meets twice yearly. The 15th JTC Meeting was successfully held from 22
to 24 December 2008, hosted by SKMM in Kuala Lumpur.
b. JTC deliberated on policy and regulatory updates, frequency related
matters, interference issues as well as other significant areas to strengthen
the 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.
SKMM Annual RePort 2008
084
085
Responding to
New Emerging Technologies
c. JTC had to defer issues pertaining to Broadcasting specifically related to
new band allocation for band I, II, III and V to be utilised for Digital Terrestrial
TV (DTT) until the formation of Thailand’s National Broadcasting Committee
(NBC) in 2009.
d. The next JTC meeting (JTC16) is scheduled to be held in Thailand in May 2009.
3. Joint Committee on Communications between Malaysia – Indonesia (JCC)
a. JCC convenes once a year. The Sixth JCC Meeting was successfully held
from 12 to 14 August 2008, hosted by SKMM in Langkawi, Kedah.
b. JCC deliberated on policy and regulatory updates, frequency related
matters, interference issues as well as other significant areas to strengthen
the relationship and regional co-operation between the two countries. In
addition, 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 regulatory
authorities were on the Interference Resolution and Sharing in Band 880890 MHz between EGSM and CDMA2000 systems. A Special Technical
Sub Committee (STSC) was established to look into this issue and it will be
discussed at the next Trilateral Co-ordination Meeting between IndonesiaMalaysia-Singapore.
d. Prior to the 6th JCC Meeting, four joint measurements (between SKMM
and DG Postel) on FM radio and TV broadcast channels were carried out in
Penang, Melaka, Pekan Baru (INS) and Medan (INS) common border areas.
The joint measurements schedule for 2008 is shown in the table below:
No.
Date (2008)
Area
1.
5 - 7 May
Penang
2.
3 - 5 Jun
Pekan Baru
3.
23 - 25 Jun
Melaka
4.
21 - 22 Jul
Medan
Table 5: Joint Measurement Conducted and Participated
e. The next JCC meeting (5th JCC) will be held in Indonesia in Q3 of 2009.
4. Trilateral Co-ordination Meeting between Indonesia, Malaysia and
Singapore (Trilat).
a. Trilat convenes once a year. The Fourth Trilat Meeting was successfully held
from 30 to 31 October 2008, hosted by SKMM in Kota Kinabalu, Sabah.
b. Trilat is the platform for the regulatory bodies of Indonesia, Malaysia
and Singapore to discuss on frequency-related matters as well as the
implementation 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
decided that a Special Trilateral Co-ordination Meeting be convened to seek
a common agreement in solving the interference issue experienced by the
EGSM from the CDMA2000 system.
d. It was agreed that future Trilat meetings be increased to twice a year
and this decision had been approved by the management.
e. The next Trilat Meeting (Fifth Trilat) will be held in Indonesia in Q2 of 2009.
With the need to resolve interference issue experience by Malaysian EGSM
operator from the Indonesia CDMA operator, two ad-hoc meetings were
conducted by ITC department:
1) Special Trilateral Co-ordination Meeting between Indonesia, Malaysia and
Singapore (Special Trilat).
2) Special Technical Sub-Committee (STSC) Meeting on Interference Resolution and
Sharing in Band 880 – 890 MHz.
5. Special Trilateral Co-ordination Meeting between Indonesia, Malaysia
and Singapore (Special Trilat)
a. The Special Trilat Meeting was held at iDA HQ, Suntec Tower 3, Singapore
from 17 to18 December 2008.
b. The Special Trilat was convened to specifically discuss the interference and
sharing issue between CDMA2000 systems in Batam/Bintan area and EGSM
in Singapore and South Johor.
c. Prior to this meeting, a Joint Measurement activity between PT. Mobile8
and Maxis was conducted in Southern Johor from 15 to 16 December 2008.
This helped all interested parties in analysing the level of interference from
CDMA transmission in Batam/Bintan area received by EGSM base station
in Southern Johor.
d. The Meeting could not conclude the interference and sharing issue, thus it
will be further discussed in the next Trilateral Co-ordination Meeting schedule
to be held in Q2 of 2009 in Indonesia.
6. Special Technical Sub-Committee (STSC) Meeting on Interference
Resolution and Sharing in Band 880 – 890 MHz.
a. The First Meeting of the STSC was held at SKMM HQ, Cyberjaya from 9 to 10
September 2008.
b. The STSC was formed during the Sixth JCC Meeting in Langkawi. It was
attended by the regulatory authorities and cellular operators from Indonesia,
Malaysia and Singapore.
c. Members of STSC have to unanimously agree on the proposed band
partitioning which is seen as the way forward in solving this issue.
d. The outcome of STSC Meeting was tabled at the Trilateral Co-ordination
Meeting in Kota Kinabalu later that year.
Notification of Frequency Assignments Submitted to ITU for
Malaysia’s Terrestrial Stations Along Border Areas
ITC submitted 2,620 notifications for terrestrial frequency assignments to ITU
for registration with Master International Frequency Register (MIFR) to obtain
international recognition and protection, for 2008.
Registered MIFR to ITU
TOTAL
Total 2008
2008 Target
2,620
200
To undertake this migration process, SKMM worked with industry partners to
establish a working group (WG) under the Consultative Group on Numbering
or CGON. The WG handled the awareness, consumer and technical, consumer
matters to ensure smooth progress and least service interruption.
The CGON Working Group was established in March 2008 and meetings are
conducted monthly.
CGON will establish the migration framework document on the Impact
Assessment on the Implementation of 3 + 8 Mobile Numbering as guidance for
all related parties and this framework will be published in the SKMM website
for public knowledge. The contents of the migration framework document will
be shared with the industry during the CGON working group meeting and the
framework will be published on Q4 of 2009.
b. Prefixes for New 3G Players
SKMM decided that new 3G players i.e. DiGi Telecommunications Sdn Bhd and
U-Mobile Sdn Bhd (formerly known as MiTV Corporation Sdn Bhd) will have the
same numbering format as the existing mobile service providers, in accordance
with the NEAP.
Numbering
Background
This report provides the department’s activities for 2008 involving the following
scope of work:
1) Numbering Assignment and Management
2) Numbering Regulations
3) Issues
Numbering Planning and Management
To ensure efficient usage, management of numbers, facilitate new services and
new 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 to
increase the existing mobile numbers capacity. The new format will comprise a
three-digit prefix and eight-digit subscriber number or 3+8 numbering scheme.
DiGi Telecommunications Sdn Bhd and U-Mobile Sdn Bhd have been assigned 010
and 018 prefixes respectively. The total number of assignments is as follows:
DiGi Telecommunications Sdn Bhd
U-Mobile Sdn Bhd
200 0000 – 299 9999
360 0000 – 399 9999
460 0000 – 469 9999
560 0000 – 569 9999
660 0000 – 669 9999
760 0000 – 769 9999
820 0000 – 829 9999
880 0000 – 889 9999
900 0000 – 989 9999
200 0000 – 299 9999
350 0000 – 399 9999
400 0000 – 409 9999
460 0000 – 474 9999
570 0000 – 579 9999
660 0000 – 669 9999
760 0000 – 769 9999
770 0000 – 779 9999
780 0000 – 794 9999
870 0000 – 874 9999
900 0000 – 989 9999
Total : 3 million
Total : 3.25 million
Table 1: New number assignment for DiGi (prefix 010) and U-mobile (Prefix 018)
The assignment of the numbers under these prefixes was not exclusive to the
new 3G players so as to ensure efficient use of the numbers.
SKMM Annual RePort 2008
086
087
Responding to
New Emerging Technologies
c. MVNO for Cellular Services
For 2008, there were two new entries within the cellular service market. XOX
Sdn Bhd and Tune Talk Sdn Bhd are categorised under thick MVNO and have
been assigned the following prefixes and mobile number blocks:
Mobile Service
Providers/MVNO
Total Numbers
010-300 0000 to
010-349 9999
XOX Sdn Bhd
500 K
010-500 0000 to
010-549 9999
Tune Talk Sdn Bhd
Prefixes
500 K
Table 2: Assignment MVNO Prefix and Mobile Numbers
d. Prefix 014Y
For the first half of 2008, LCM approved the assignment of additional mobile
numbers to DiGi, Celcom and Maxis carrying the prefix of 014 ranges. The
numbers are as follows:
Prefixes 014Y
Mobile Service
Providers/MVNO
Total Numbers
014-9XX XXXX
DiGi
1 million
014-5XX XXXX
Celcom
1 million
014-7XX XXXX
Maxis
1 million
Table 3: Prefix 014Y Assignment
As approved and instructed by LCM, all 2.3GHz and other BWA players will be
assigned with prefix 0158 as indicated in the NEAP.
f. Other Numbering Assignments
The table below outlines all the assignments for numbering in 2008.
Numbering Type
International
Signaling Point Code
Independent
Short Code
Special Service
Number
Public Switch
Telephone Network
(PSTN)
Numbering Amount
Licencees
1
TT dotCom
1
Tune Talk
1
DiGi
7
TM
1
DiGi
8
Total
3
e. New Numbering Prefix for BWA (Broadband Wireless Access)
To facilitate new markets and technological development, SKMM opened new
numbering prefixes for Broadband Wireless Access services for Broadband
Network Operator services using 4 + 7 numbering scheme as shown below:
Prefixes 015Y
Mobile Service
Providers/MVNO
Total Numbers
0158-820 XXXX
Asiaspace Sdn Bhd
10 Thousands
0158-850 XXXX
IP Mobility Sdn Bhd
10 Thousands
0158-850 XXXX
Izzinet Sdn Bhd
Table 4: BWA Telephony Allocation
10 Thousands
organised an audit on the network availability.
Below is the latest subscriber information for Sabah and Sarawak, for the first
eight months of 2008.
Audit on Mobile Number
SKMM carried out an audit exercise for the utilisation of mobile number in
January and June 2008 for DiGi and U-Mobile, respectively. Besides static
purpose the numbering audit was carried out due to request for the additional
mobile numbers to cater business demand by DiGi and U Mobile.
Month
Total Subscribers
As assured by these service providers, they will start to roll out the services in
early 2009 and their network was still under implementation.
Sarawak
Sabah
Jan
2,173
600
Feb
2,144
592
Celcom
Mac
2,109
586
1
TMB
Apr
2,066
579
1
Maxis
May
2,033
573
1
Packet One
Jun
2,012
567
52
TM
Jul
1,969
555
Region
Utilised
Available
Total
14
DiGi
Aug
1,943
551
Central
14,610,035
5,989,965
20,600,000
16
Maxis
Northern
7,281,361
3,378,639
10,660,000
7
TT dotCom
Southern
4,362,514
2,087,486
6,450,000
19
Packet One
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
Grand Total
35,271,355
16,978,645
52,250,000
16
3
108
Table 5: Numbering Assignment for 2008
The assignment of mobile numbers with prefix 014-XXX XXXX by SKMM which
began in 2006 was to cater for the shortage of mobile numbers experienced by
the mobile service providers.
Audit On the Prefix-011 Using for ATUR 450
The total subscribers for ATUR service in Sabah and Sarawak have decreased
in 2008. This was due to the migration to CDMA and the option to choose
another network available within their areas.
All assignments in the table except PSTN were categorised under special
assignment and therefore were required to obtain approval from the LCM thus
deliberation to the LCM were required.
g. Numbering Audit
The audit exercise mainly verifies the utilisation of numbers assigned to MSP
for efficient usage and in an organised manner.
Any application of mobile numbers from the mobile service providers would
have to go through the audit process to ensure the application’s validity. SKMM
will ensure the existing assigned numbers activation to be at least 70% for
the service providers to entitle for new blocks of numbers as specified in the
Numbering and Electronic Addressing Plan. This is also to remind the industry
that SKMM will scrutinise all numbering applications and periodically monitor
the utilisation rate.
Table 6: 011 Prefix Subscriber in Sabah and Sarawak
SKMM will audit the progress from time to time to ensure the smooth
migration of existing subscribers to new CDMA 450 and 800 before closing
down the ATUR 450 which uses the analogue system.
Audit On the Prefix-010 Using for Mobile Cellular Service by DiGi
In November 2008, SKMM carried out a coverage audit test on the DiGi 3G’s
Network at Subang Jaya (nearby Carrefour) and the Subang Hi-tech areas.
The purpose of the coverage test was to ensure that the prefix 010 assigned
to them was working successfully.
The test was carried out as follows:
• Voice Call: On-net test and inter-net test.
• Video Call: On-net and inter-net test.
• Internet surfing.
The above tests were successfully completed without any interruption to the
service and network.
Audit on XOX Com and Tune Talk for Prefix 010
To ensure the prefix and the mobile numbers assigned will be utilised, SKMM
In November 2008, SKMM requested reports from all mobile service providers on
the utilisation of mobile numbers for the purpose of industry mobile numbering
development. This was to ensure the latest take-up rates of mobile numbers so
that it can support the business demand within the next two years.
Below is the latest utilisation of mobile numbers as of November 2008.
Table 7: The Utilisation Report on the Mobile Service Providers - Cellular
60,000,000
Utilised
Available
Total
52,250,000
50,000,000
40,000,000
35,271,355
30,000,000
20,000,000
11,928,311
10,000,000
0
Grand Total
Graph 1: Total of Mobile Numbers
SKMM Annual RePort 2008
20,600,000
Total
2,451,924
1,847,076
4,299,000
Southern
Eastern
Sabah
Sarawak
0
Central
Northern
Seminar
On 20 and 21 May 2008, SKMM participated in the NGN and ENUM international
conference held in Kuala Lumpur and organised by MYNIC Berhad. The event
was important to SKMM in view of direct implication for NGN and IP-based
application services introduction in the country.
For 2009, SKMM is looking forward to participate in the ITU study group on
NGN IP-based network and IPv6 development.
2,728,084
1,782,916
4,511,000
5,000,000
Available
3,837,437
1,892,563
5,730,000
10,000,000
Utilised
7,281,361
3,378,639
10,660,000
15,000,000
5,989,965
20,000,000
14,610,035
25,000,000
089
4,362,514
2,087,486
6,450,000
088
Responding to
New Emerging Technologies
Graph 2: Utilisation of Mobile Number – by Region
Date
Activity
22 Jan 2008
Audit on DiGi’s mobile number assignment
9 Jun 2008
Audit on U-Mobile’s mobile number assignment
25 Aug 2008
Audit on the prefix 011 at Sarawak region
27 Aug 2008
Audit on the prefix 011 at Sabah region
11 Nov 2008
Coverage audit on the DiGi 3G’s network using prefix 010
Nov 2008
Audit by telco’s report on the utilisation on mobile number 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
the NEAP. The NEAP Amendment for 2008 is as follows:
• MVNO (Cellular Service) to Public Cellular Service
• Addition of 3+8 mobile number structure
j) Numbering Regulations
The Numbering Regulation was developed to impose fees or charges on the
assignment of numbers to the licencees so as to ensure efficiency in the usage
of numbers. Currently, the numbers assigned to the licencees are free.
The final draft of the Numbering Regulation (NR) was submitted to the Attorney
General’s office (AG) by KTAK for further study and comments on the NR’s
content. NPD together with LASD and KTAK are still waiting for AG’s feedback.
Table 8: 2008 Audit Summary
h) Events
Briefing on Numbering Planning Development
SKMM conducted a briefing on 3+8 mobile number expansion, numbering
regulation and Numbering Electronic and Addressing Plan (NEAP) to several
SKMM regional offices and together with industry players as specified below:
Date
Location
Activity
23 Jun 2008
Kuching Regional Office
Briefing and numbering audit
24-25 Jun 2008 Sandakan, Office
26 Jun 2008
Briefing and numbering audit
Kota Kinabalu Regional Office Briefing and numbering audit
18-21 Nov 2008 Southern Regional Office
Briefing and numbering audit
Table 9: Briefing on 3+8 Mobile Number Expansion
This activity was part of the awareness campaign by SKMM. It ensured that
SKMM and industry players at regional offices were updated on both ongoing
and future developments involving expansion of mobile numbering.
SKMM Annual RePort 2008
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.
04
Expanding
Digital Reach
092
093
095
095
096
097
099
100
100
101
Nationwide Mobile Coverage: Time 1/Time 2 Projects
Quality of Service
Required Application Service (RAS)
Rates Monitoring
SKMM Complaints Bureau
Consumer Issues
Prepaid Registration
Phishing
Network Security Centre
Enforcement
SKMM Annual RePort 2008
092
093
Expanding Digital Reach
Nationwide Mobile Coverage:
Time 1/Time 2 Projects
USP Overview
The 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.
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.
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.
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.
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 Programme
In 2008, under the direction of YB Minister of Energy,
Water and Communications or KTAK to further expand
Coverage Mapping – Malaysia
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.
Time 3 Implementation Plan
licencees in the first quarter of 2009.
Time 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:
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
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 Funding
A funding mechanism for the Time 3 programme is through the concept of PrivatePublic 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.
Legend:
T2 border
T3 border
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
Time 3 Progress
The 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:
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
Quality of Service
QUALITY OF SERVICE FOR BROADBAND ACCESS SERVICE
Mandatory Standards for Quality of Service
Determination 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 the
Mandatory Standards for Quality of Service
Based 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:
SKMM Annual RePort 2008
094
095
Expanding Digital Reach
Licencees
% Bill Complaints
Resolved Within 30
Business Days
Number of
General Customer
Complaints Per
1000 Lines p.a.
Licencees
% Complaints of
Bills Issued
% Bill Complaints
Resolved Within
15 Bus Days
Telekom Malaysia Berhad
0.29%
YES
90.61%
YES
Telekom Malaysia Berhad
99.29%
YES
5.05
YES
Maxis Broadband Sdn Bhd
0.59%
YES
92.24%
YES
Maxis Broadband Sdn Bhd
99.14%
YES
290.89
YES
TT dotCom Sdn Bhd
1.21%
YES
97.14%
YES
TT dotCom Sdn Bhd
100.00%
YES
3.14
YES
Jaring Communications Sdn Bhd
0.00%
YES
0.00%
0.00%
0.00%
0.00%
7.32
YES
Jaring Communications Sdn Bhd
DiGi Telecommunications Sdn Bhd
Not Reported
Not Reported
DiGi Telecommunications Sdn Bhd
Not Reported
Not Reported
Optical Communications
Engineering Sdn Bhd
Not Reported
Not Reported
Optical Communications
Engineering Sdn Bhd
Not Reported
Not Reported
Table 1: Compliance with Standards on Billing Performance
Licencees
% of Number
of Sample With
Network Latency
Below 85ms (95%)
% of Numberof
Sample With
Bandwidth Utilisation
More Than 80% of
Subscribed Level (95%)
Telekom Malaysia Berhad
100.00%
YES
100.00%
YES
Maxis Broadband Sdn Bhd
97.96%
YES
100.00%
YES
TT dotCom Sdn Bhd
100.00%
YES
100.00%
YES
Jaring Communications Sdn Bhd
Not Reported
Not Reported
DiGi Telecommunications Sdn Bhd 100.00%
YES
100.00%
YES
Optical Communications
Engineering Sdn Bhd
YES
100.00%
YES
100.00%
Table 2: Compliance with Standards on Billing Performance
Table 5: Compliance with Standards on Network Performance
Fulfillment of Installation Orders
Licencees
% Fulfilled Within 24 Hours (80%)
% Fulfilled Within 48 Hours (90%)
% Fulfilled Within 7 Days (100%)
Licencees
YES
Telekom Malaysia Berhad
0.51%
YES
99.99%
YES
64.25%
NO
Maxis Broadband Sdn Bhd
0.00%
YES
99.99%
YES
YES
100.00%
YES
TT dotCom Sdn Bhd
0.00%
YES
100.00%
YES
YES
98.00%
NO
Jaring Communications Sdn Bhd
100.00%
YES
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%
Jaring Communications Sdn Bhd
28.50%
NO
34.20%
NO
DiGi Telecommunications Sdn Bhd
100.00%
YES
100.00%
Optical Communications Engineering Sdn Bhd
98.00%
YES
98.00%
Table 3: Compliance with Standards on Fulfillment of Installation Orders
Service Restoration Performance
Licencees
% Fulfilled Within 24 Hours (80%)
% of Network
Availability
(99.99%)
% of Packet Loss
(1%)
% Fulfilled Within 48 Hours (90%)
Not Reported
DiGi Telecommunications Sdn Bhd
0.00%
YES
100.00%
YES
Optical Communications
Engineering Sdn Bhd
0.00%
YES
99.72%
NO
Table 6: Compliance with Standards on Network Performance
% 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
Required Application Service (RAS)
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
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.
Table 4: Compliance with Standards on Service Restoration Performance
Not Reported
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); and
3) 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 Monitoring
Communications and Multimedia (Rates) Rules 2002
The 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 assistance
2) Public Payphone Service – Charges for Local Calls, National Calls and National
Calls through operator assistance
3) Service Charge for operator assistance
4) Charge for Internet access service
5) Charge for audiotext hosting service
6) Rental on exchange line
7) Connection fee
8) 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.
SKMM Annual RePort 2008
097
Rate Control Mechanism
Rate 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 2008
1) 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.
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.
Consumer 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.
418
450
400
457
445
396
416
470
303
298
Mac
Apr
300
250
200
173
152
150
100
50
0
Jan
Feb
May
Jun
Jul
Aug
Sep
Consumer Issues
406
355
350
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.
Oct
Nov
Dec
Months 2008
a. 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.
Graph 1: Number of Complaints Received by Month for 2008
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 Bureau
500
No. of Complaints
096
Expanding Digital Reach
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.
No. of
Complaints
Received
%
1,794
41.8
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
No.
Categories of Complaints
1.
Poor service
2.
Total
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.
4,289
Table 1: The Types of Complaints Received by SKMM
SKMM Annual RePort 2008
098
099
Expanding Digital Reach
b. Billing Problems and Charging
The statistics for complaints received on billing
problems and charging are provided in the table
below:
Type of Billing Complaints
No. 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
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.
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.
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:
• Receipt unsolicited SMS (spam)
• Charges for unsubscribed SMS service
• Inability to stop or terminate the SMS service
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 2009
In 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 Practices
From 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 Registration
Background
In 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 Status
As 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 SKMM
SKMM 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
*Preventive system: mechanism implemented by service providers to automate compliance with Guideline on the Provision of Mobile Content Service.
SKMM Annual RePort 2008
100
101
Expanding Digital Reach
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.
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.
Phishing
Phishing 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.
45
No. of Cases Reported
42
38
40
34
35
30
26
26
27
25
Information 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
20
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.
16
15
12
10
5
0
Network Security Centre
0
0
0
2
Jan Feb Mac Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Months 2008
Figure 1: Total Phishing Cases Reported to SKMM
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
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.
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.
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.
Investigation
Enforcement
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.
SKMM’s constant monitoring has contributed towards
The cases investigated were as follows:
No. of
Cases
No.
Cases
Law
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 of
Net 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
Section 74 CMA 1998
12
12.
Failure to deal reasonably with
consumer complaints
Section 188 CMA 1998
2
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
SKMM Annual RePort 2008
102
103
Expanding Digital Reach
23 offenders were charged in court and 107 were offered compound amounting to RM1,498,600 for committing various offences. The details are as follows:
No. of Cases
No.
Type of Offences
1
Breach Of Licence Conditions
i. 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
Case in Court
250
220
200
188
150
Total Cases Investigated
Licencees
Other Offenders
60
70
60
Penalty (RM)
Licencees
i. Breach of Licence Condition
ii. Failure to Contribute to USP Fund
1
3
1
3
-
-
Other Offenders
i. Making Crank Calls to 999
ii. Sending Offensive SMS
iii. Unlawful use, possession or supply of non standard equipment
iv. Unlicenced Network Facility, Network Services and Application Services
2
2
4
11
1
3
7
1
2
5
4,000
6,500
90,000
23
15
8
100,500
1.
Licencees
i. Compound Offered (103 Licencees)
ii. Compound Paid (79 Licencees)
iii. Compound Pending Appeal (24 Licencees)
44
44
Other Offenders
i. Compound Offered (4 Offenders)
ii. Compound Paid (3 Offenders)
iii. Compound Pending Appeal (1 Offender)
Amount
RM 1,484,800
RM 898,000
RM 586,800
RM 13,800
RM 12,000
RM 1,800
30
The Compliance Programme
20
30
10
Convicted
Compounding of Cases
2.
52
40
40
20
Pending Trial
No.
56
55
50
No. of Cases
Total
0
100
80
1.
50
Offences by Other Offenders
50
Cases Charged in Court
2.
Offences by Licencees
90
No.
100
188
95
Status of Investigations and Court Case
Offenders
Of the 408 cases investigated, 188 were non-compliance cases committed by the licencees.
The cases were as follows:
12
12
7
5
0
12
2
10
7
3
2
0
Breach of licence condition
Sending - Offensive, Obscene, Indecent, Menacing or False SMS (S.233)
Failure to submit audited accounts
Failure to submit RONR
Sending/Posting - Offensive, Obscene, Indecent, Menacing Emails/Websites
or Blogs (S233 & 211)
Failure to contribute to USP Fund
Providing Network Services and Application Services without licence
Use Apparatus Assignment without AA
Use Apparatus without Apparatus Assignment
Failure to deal reasonably with consumer complaints
Making Crank Calls to 999 (S.233)
Non compliance with a Direction of the Commission
Possession of Non Standard Equipment
Aside 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.
Providing courier services without license
Failure to take reasonable measure to check for proper identification
SKMM Annual RePort 2008
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.
05
Upholding National
Culture & Identity
106
Content Regulation
SKMM Annual RePort 2008
106
107
Upholding National
Culture & Identity
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
Services
Content Regulation
Introduction
One 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 Approach
The 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)*.
2004
2005
2006
2007
2008
Growth 2007 vs 2008 (%)
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
-
-
-
-
-
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
Telcos
1
-
-
-
5
-
Internet websites
-
9
26
45
216
380
43
33
51
95
259
173
Television
Radio
Others
TOTAL
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
SKMM Annual RePort 2008
108
109
Upholding National
Culture & Identity
Number of Complaints Received by Category in 2008
No. of Complaints
250
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.
216
200
150
100
50
0
16
7
ASTRO
FTA TV
9
6
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.
5
Radio
General TV
Media
Others
Internet
Source: SKMM
Number of Complaints Received by Month in 2008
45
42
No. of Complaints
40
36
35
29
30
31
30
25
20
15
10
9
10
Jan
Feb
16
13
12
Mac
Apr
14
17
5
0
May
Jun Jul
Months
Aug
Sep
Oct
Nov
Dec
Source: SKMM
Number of Complaints by Type in 2008
False/Misleading
27 (13%)
Technical
16 (6%)
Offensive
58 (22%)
Source: SKMM
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.
Obscene
152 (59%)
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.
SKMM Annual RePort 2008
110
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.
06
Channeling
Equal Access
to ICT Services
112
112
USP Fund
USP Projects in Bridging Digital Divide
SKMM Annual RePort 2008
112
113
Channeling Equal Access
to 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.
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.
USP BROADBAND
COMMUNITY PROJECTS
USP Fund
The 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; and
3) Six per cent of weighted net revenue.
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.
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.
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); and
c) Contributions from Application Services Provider
Class (ASP).
Pursuant to Part VIII, Section 204 of the CMA 1998, SKMM
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; and
b) R.12, R.20, R.20A: Disbursement of CAPEX and
OPEX in the form of Advance Claims and Annual/
Quarterly Claims processing.
USP Projects in
Bridging Digital Divide
USP Projects in Bridging
the 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.
To facilitate communications access for selected
communities, SKMM decided to broaden the rollout 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.
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 Libraries (CBL)
has established, controlled and operated the USP Fund.
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.
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 CommunityBroadband Centre (CBC) as part of its broadband rollout 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.
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.
SKMM Annual RePort 2008
114
115
Channeling Equal Access
to ICT Services
Table 1: Community Broadband Libraries (CBL) Approved in 2008
NO.
LIBRARY
NO.
1
PD Kg Seri Pengkalan, 78000 Alor Gajah
33
2
PD Kg Kuala Sungga, Mukim Tebong, 76460 Tebong
34
PD Kg Bukit Nangga, 78000 Alor Gajah
35
4
PD Kg Paya Datuk, Taman Paya Datok, 78000 Alor Gajah
36
5
PD Kg Lubok Redan, 78300 Masjid Tanah
37
6
PD Mukim Api-Api d/a Balai Raya Kawasan 1, Mukim Api-Api, 82000 Pontian
38
PD Kg Puteri Menangis, Lot 1163, Mukim Sg Pinggar, Bebut, 82100 Pontian
39
PD Parit Bilal Rembah, 82000 Pontian
40
PD Kampung Ulu Tiram, Mukim Plentong, 81800 Ulu Tiram, Kota Tinggi
41
10
PD Lui Selatan 1, d/a Felda Lui Selatan 1, 72120 Jempol
42
11
PD Felda Palong 5, 73430 Gemas
43
12
PD Felda Palong 12, 73430 Gemas
44
PD Rumah Rakyat Kg Serting Tengah, 72200 Batu Kikir, Bahau
45
PD Kg Serting Ulu, 72200 Batu Kikir, Bahau
46
PD Kg Padang Durian, d/a Pejabat ADUN Sungai Tiang, Kg Padang Durian, Sungai Tiang, 06760 Pendang
15
PD Taman Tunku Puan Chik, 72100 Bahau, Jempol
47
PD Kg Dato’ Syed Ahmad, Padang Peliang, 06750 Pendang
16
PD Kg Bukit Kerdas, 72200 Batu Kikir, Bahau
48
17
PD Kg Sri Rompin, 73500 Jempol
49
PD Bandar Puncak Alam, PT 1562 Fasa 1D, Bandar Puncak Alam, 43200 Jeram, Kuala Selangor
50
PD Kg Paya Mengkuang, 08330 Gurun
PD Kg Gemang, Air Lanas, 17700 Jeli
51
PD Bukit Raya, d/a Pejabat Penghulu Mukim Bukit Raya, 06760 Pendang
PD Kg Sungai Satan, Air Lanas, 17700, Jeli
52
PD Kg Batu Melintang, 17520 Jeli
53
PD Kg Pangkal Petai Dalam, Kemuning, 18500 Machang
54
PD Kg Pangkal Gong, PT 983 Mukim Gading Galoh, Pulai Chondong, 18500 Machang
55
PD Masjid Kg Padang Niyor, PD Masjid Kg Padang Niyor
PD Kg Wakaf Zin, d/a Kompleks Penggawa Kg Wakaf Zin, Tawang, 16020 Bachok
56
PD Kg Permatang Pasir, 34950 Bandar Baharu
PD Kg Telong, d/a Kompleks Penggawa Telong, 16310 Bachok
57
PD Kg Permatang Piah, 16300 Mahligai, Bachok
58
PD Kg Chat Bekelam, 16300 Bachok
59
PD Kg Ketil, Pengkalan Kubor, Tumpat
60
PD Kg Jerek, 18300 Gua Musang
61
3
7
STATE
MELAKA
JOHOR
DISTRICT
Alor Gajah
Pontian
8
9
13
14
18
Kota Tinggi
N.SEMBILAN
SELANGOR
Jempol
Kuala Selangor
19
20
Jeli
21
22
Machang
23
24
25
26
KELANTAN
Bachok
27
28
Tumpat
29
Gua Musang
30
31
32
STATE
DISTRICT
LIBRARY
PD Bukit Kening, 28100 Chenor
PAHANG
Maran
PD Pekan Awah, 28330 Maran
PD Kg Pantai Chenor, 28100 Chenor
PD Kg Senggora, d/a Balai Seni JKKK Kg Senggora, 26500 Maran
Pekan
Besut
TERENGGANU
Dungun
PD Kg Dusun, 26000 Pekan
PD Kg Keruak, Hulu Jertih, 22010 Besut
PD Kg Bukit Tanah, 22200 Besut
PD Kg Balai Besar, Batu 48, 23100 Rantau Panjang, Dungun
PD Felda Kerteh 3, Ketengah Jaya, 23300 Dungun
PD Kg Tasik, Bukit Payung, 21400 Marang
Marang
PD Kg Alur Limbat, 21400 Marang
PD Kg Tok Amat, Merchang, 21610 Marang
Sik
Pendang
PD Felda Teloi Timur, 09300 Kuala Ketil
PD Kg Charok Kudung, Mukim Guar Kepayang, 06700 Pendang
PD Kg Titi Akar, Watt Kg Titi Akar, 06750 Pendang
PD Masjid Kg Masjid Lama, Naka, 06350 Padang Terap
KEDAH
Padang Terap
Bandar Baharu
PD Masjid Kg Datuk, Mukim Tekai Kiri, Naka, 06350 Padang Terap
PD Masjid Kg Perik, Mukim Kurong Hitam, 06300 Kuala Nerang
PD Kg Baru Bagan Samak, 34950 Bandar Baharu
PD Taman Cempaka, 09810 Selama, Serdang
PD Kg Sungai Batu, 09810 Serdang
SARAWAK
Baling
PD Kg Pokok Setol, Masjid Siong, Kg Pokok Setol, Mukim Siong, 09100 Baling
Betong
PD Kg Pusa Tengah, 93950 Betong
PD Kg Sungai Sam, 18000 Dabong, Kuala Krai
Kuala Krai
PD Kg Kuala Geris, 18000 Dabong, Kuala Krai
PD RPT Chuchuh Puteri, 18000 Kuala Krai
SKMM Annual RePort 2008
116
117
Channeling Equal Access
to ICT Services
Table 2: Community Broadband Centres (CBC) Established in 2008
NO.
MUKIM
37
1
Brisu
38
2
Melaka Pindah
39
3
Melekek
40
4
Pegoh
41
Rembia
42
Sungei Baru Ilir
43
7
Taboh Naning
44
8
Tanjong Rimau
45
9
Sungei Baru Ulu
46
10
Tebong
47
11
Johor Lama
48
12
Kota Tinggi
49
Penggerang
50
Serian
Tebedu
Sedili Kechil
51
Saratok
Budu
Tanjong Surat
52
Marudi
Pekan Marudi
Ulu Sungai Johor
53
Matu
Igan
17
Api-Api
54
Mukah
Balingian
18
Ayer Baloi
55
Tatau
Pekan Tatau
Jeram Batu
56
20
Rimba Terjun
57
21
Jelai
58
22
Rompin
59
Serting Hilir
60
Sri Aman
24
Serting Ulu
61
Kapit
25
Jabi
62
Betong
26
Kampong Raja
63
Samarahan
Kuala Besut
64
Dalat
28
Pelagat
65
Limbang
Pekan Limbang
29
Jerangau
66
Sarikei
Pekan Sarikei
30
Kuala Paka
67
Song
Rasau
68
32
Sura
69
33
Alur Limbat
70
34
Bukit Payong
71
Mercang
72
Nabawan
Pulau Kerengga
73
Pitas
5
6
STATE
MELAKA
13
16
JOHOR
Pontian
19
23
N.SEMBILAN
35
36
Jempol
Besut
27
31
Alor Gajah
Kota Tinggi
14
15
DISTRICT
TERENGGANU
Dungun
Marang
Bentong
Jerantut
Pelangai
Sabai
Pedah
Pulau Tawar
Kuala Lipis
Lipis
PAHANG
Ulu Jelai
Maran
Pekan
Rompin
Julau
SARAWAK
Penjom
Chenor
Luit
Pahang Tua
Penyor
Keratong
Rompin
Pekan Pakan
Pekan Julau
Asajaya
Pekan Asajaya
Bintulu
Kg Penan
Lingga
Pekan Kapit
Pekan Betong
Pekan Samarahan
Pekan Dalat
Song
Pekan Kinabatangan
Kinabatangan
SABAH
Sukau
Bukit Garam
Kg Paris 1
Pegalungan
Mempakat Laut
SKMM Annual RePort 2008
118
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.
07
Enhancing
ICT Ethics and
Excellence
120
121
123
125
Consumer Forum’s Activities
Content Forum’s Activities
Report on Technical Standards Forum
Report on Access Forum
SKMM Annual RePort 2008
121
Consumer Forum’s Activities
The 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 Ismail
Deputy Chairperson - Encik Noor Nirwandy bin Mat Nordin
Secretary
- Puan Nor Esah Mohd Said
Treasurer
- 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’s existence and its functions;
• Rights of users as consumers;
• Channels for complaints, disputes and grievances-handling;
• The national policies in the communication and multimedia industry.
2) Complaints handling
a. 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 meetings
a. 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.
4) 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 activities
a. 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.
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.
For the year 2008, SKMM allocated RM435,000 to CfM to cover expenses related
to its activities.
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.
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.
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.
Content Forum’s 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.
Background
The 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.
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.
Complaints Received
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
45
Number of Cases
120
Enhancing ICT Ethics
and Excellence
Advisory Matters
44
Total Number of Cases
40
Cases Resolved
35
Decision Pending
30
28
37
29
25
20
15
18
16
15
12
10
10
6
5
0
2007
2008
Graph 1: Complaints Bureau Cases 2007/2008
SKMM Annual RePort 2008
122
123
Enhancing ICT Ethics
and Excellence
Summary of Cases for 2008
Breakdown of Cases Received in 2008
Cases Pending
14%
content guidelines. CMCF hopes to complete
the review exercise and obtain approval for the
proposed amendments in 2009.
Industry
18%
Others
14%
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:
No. Type of Activities
Cases Resolved
86%
Public
68%
Breakdown of Complaints 2008
Advertising
28%
Breakdown of Content Advisory Matters 2008
Mobile Content
28%
Advertising
32%
Mobile Content
7%
Broadcasting
7%
Others
7%
Services
7%
Internet
30%
Internet
20%
Academic
20%
Source: CMCF
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
1.
Roadshow/Exhibition
10
2.
Seminar/Workshop/Conference
29
3.
Press Release
1
4.
Media Interview
2
5.
Other Events
14
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.
Broadcasting
14%
Frequency
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.
4) Khalidah Mustafa – SIRIM
5) Imran Zulkifli – TIME dotCom
6) Kevin Koo Jenn Mang – DiGi
7) Shahrul Imran Sultan – MBNS (Astro)
Reference Panels
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:
1) N.A. Ratnam MBNS (Astro) – Chairman
2) Amirul Ahmad (MTSFB) – Vice Chairman
3) YBhg. Dato’ Ismail bin Osman – U Mobile
4) Abdul Ghani Zainal Abidin – SIRIM
5) Ravindran Ramesan – Maxis
6) Abdul Majid Abdullah – QucomHAPS
7) Khoo Teng Lock – Motorola
8) Mohd Yusairi Abu Hassan – Telekom Malaysia
9) Nor Izhar Mohd Zain – Asiaspace
10)Hamzah Burok – U Mobile
11)Bruce de Netto – Maxis
12)Hj. Mohd Jaafar Mohamad Abu Bakar – Telekom
Malaysia (TM R&D)
13)Nick Krall – NTT MSC
14)Rosilawati Ayub – Telekom Malaysia
15)Ameer Suresan – DiGi
16)Suhaimi Abdul Rahman – Velchip
17)Roslan Boni – MBNS (Astro /AMP)
Board of Directors 2008/2009 Session
Membership
• Chairman
1) YBhg Dato’ Ismail bin Osman – U Mobile
Currently, 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.
Report on Technical
Standards Forum
Malaysian Technical
Standards Forum Berhad
The 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.
• Directors
1) Poh Kee Seng – Maxis
2) Azizi A. Hadi – Telekom Malaysia
3) Hj. Abdul Razak Salim – SIRIM
4) Tengku Azelan – TIME dotCom
5) Nathan Jay Paul – DiGi
6) Hj. Rohaizad Mohamed – MBNS (Astro)
• Alternate Directors
1) Hamzah Burok – U Mobile
2) Hj. Ramlan bin Othman – Maxis
3) Mohd Rais Azhar – Telekom Malaysia
SKMM Annual RePort 2008
124
125
Enhancing ICT Ethics
and Excellence
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 Group
These 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) SUBWORKING GROUP [RNI (Ex) SWG]
8) RADIOCOMMUNICATIONS NETWORK INFRASTRUCTURE (INTERNAL) SUBWORKING 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 participation
1) SIRIM ISC-G; TC 12 & TC on EMC
2) SIRIM ISG-W; DOSH’s WG
3) SKMM DSOG
4) KTAK’s – APT/WTSA Preparation Committee
5) MAMPU’s – IPv6 Implementation Committee
Deliverables
For 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.
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.
Standards and Codes” published in the New Strait
Times on 1 November 2008.
International Participation
In 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 Arshad
ii. 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 Azhari
ii. SKMM: Abdul Karim Abdul Razak
iii.Packet-1: Jaizan Zuki
MTSFB Publication of TSIR, Part 1 and Part 2
Projects
Further 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.
Report on Access Forum
Malaysian Access Forum Berhad
New Straits Times in Tech&U section: Interview on the MTSFB’s Mobile TV Trial
The T-DMB Mobile TV Coverage for 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
As 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.
SKMM Annual RePort 2008
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.
08
Enhancing Postal
Services Standards
128
Postal Services
SKMM Annual RePort 2008
128
Postal Services
The 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
5 – Tier System
3 – Tier
Up to D+5
D+1 – Local Delivery
D+2 – Zone A
D+4 – Zone B
Pre-2008
129
Enhancing Postal
Services Standards
(2008-2010)
Accessibility
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.
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.
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.
Post Office and
Mail Delivery Network
Year
2010
% Compliance
Speed Objective
88.0%
88.0%
89.0%
Reliability Objective
99.0%
99.2%
99.3%
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.
Total Number
Post Office
671
Pos Mini
349
114
Postal Agents
257
112
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
16,852
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.
104
PH
21,361
19,654 19,691 20,391 1
MLK
NS
PRLS
PRK
The courier and express delivery service industry
plays a major role in providing both domestic and
international connections crucial for both business
and consumers alike.
31,268
8
5
PP
TRGN SWK
States
KDH KTAN
KL
JHR SNGOR LAB
Pos Mini Felda Sungai Tekam Utara, Jerantut, Pahang
Courier and Express Delivery Services
1
1
4
117
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 Reign
of 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 the
Nation’s Visual Arts
28 Aug 08
114
112
113
113
110
109
2001 2002 2003 2004 2005 2006 2007 2008
Figure 3: Number of Courier Service Providers
(2001-2008)
43,727
2
27,870 428,774 928,999
26,959 27,860
0
0
24,505 25,862
9
2
The Minister through the Stamps Advisory Committee
approved 15 themes for stamps’ issuance in 2008.
106
3
58,573
The level of accessibility to postal services at the
state level is presented in Figure 2.
110
116
2008 Stamp Themes
108
Table 2: Malaysia’s Post Office Network
Figure 2: Average of population per post office by states in 2008
Accessibility is measured by the average population
for each post office and mini post office per state.
116
Pos Mini Felda Dahlia, Pusat Jengka 3, Pahang
8) GD Express Sdn Bhd
9) ABX Express (M) Sdn Bhd
10)Skynet Worldwide (M) Sdn Bhd
their licence. The new licencees are:
1) Hyjet Express Sdn Bhd
2) M.L.H Services Sdn Bhd
3) PAKARGO Logistic Distribution
Warehousing Sdn Bhd
4) Quantum Express Logistic Sdn Bhd
5) KNZ Mail Services Sdn Bhd
6) Tasco Express Sdn Bhd
7) BPL Logistic Sdn Bhd
8) Quick Courier (International) Sdn Bhd
9) BBB Express (M) Sdn Bhd
118
Service performance is measured based on the
following criteria:
2009
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.
The 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.
Network Reach
2008
Projek Usahawan Pos Mini
Luar Bandar (PUPMLB)
SBH
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
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 Bhd
2) DHL Worldwide Express Sdn Bhd
3) United Parcel Service (M) Sdn Bhd
4) Cen Worldwide Sdn Bhd
5) City Link (M) Sdn Bhd
6) Nationwide Express Courier Services Bhd
7) TNT Express Worldwide (M) Sdn Bhd
10. Royal Headgears
16 Sep 08
11. Unique Flowers
09 Oct 08
12.
National Angkasawan
Programme
13. Sea Shells
14.
21 Oct 08
11 Nov 08
Malaysian Cartoons Series I
– Lat (2008 Stamp Weeks)
15. Premier Schools
01 Dec 08
16 Dec 08
Table 3: Stamp Themes Approved for 2008
SKMM Annual RePort 2008
130
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.
09
Accelerating
Growth Through
Global Partnerships
132
International Affairs
SKMM Annual RePort 2008
132
133
Accelerating Growth
Through Global Partnerships
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
International Affairs
SKMM 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
• Keep abreast with international developments and trends in communications
and multimedia.
SKMM’s international activities are guided by the Communications and
Multimedia Act (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 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
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
In terms of functional focus areas, our international activities can be divided into
the following:
• Management of frequency, numbering and Internet addressing
• Standards and interoperability
• Mutual Recognition Arrangements
• Trade and liberalisation
• Security and harmonisation of e-commerce activities
• Tariffs and accounting rates
• Content
• Co-operation and information exchange
• Regulatory roundtables
• Bilateral, regional and multilateral co-operation
Sectoral Focus Areas
The ASEAN ICT Centre
The 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 subsequently
agreed 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.
Sectorally, SKMM’s activities can be viewed through the following focus areas:
ASEAN
SKMM participates actively in the following ASEAN fora:
• ASEAN Telecommunications Regulators’ Council Meeting
• Telecommunications and IT Senior Officials’ Meeting (TELSOM)
• Telecommunications and IT Ministers’ Meeting (TELMIN)
• Border co-ordination meetings to manage and resolve any frequency interference
and allocation matters with Malaysia’s neighbours:
1) Frequency Allocation Committee of Singapore, Malaysia and Brunei
(FACSMAB)
2) Joint Technical Committee on Co-ordination and Assignment of Frequencies
along the Malaysia-Thailand Common Border (JTC)
3) Joint Communications Committee between Malaysia and Indonesia (JCC)
4) Trilateral Co-ordination involving Indonesia, Malaysia and Singapore
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 Camp
The 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
and Communications together with Maxis Communications Berhad (Maxis).
The ASEAN Cyberkids Camp was a Malaysian initiative endorsed by the ASEAN
Ministers for Telecommunications and IT during their meeting in Bali on 29 August
2008. The ASEAN Cyberkids Camp was based on the highly successful Maxis
Cyberkids Camp, a home-grown programme aimed as bridging the digital divide
and building ICT capabilities among children in rural schools in Malaysia.
SKMM Annual RePort 2008
134
135
Accelerating Growth
Through Global Partnerships
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 drew
participation from 120 primary and secondary school children and their teachers
from Brunei Darussalam, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines,
Singapore, Thailand and Vietnam.
APT Management Committee Meeting
The 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.
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 equip
and 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.
This Management Committee was attended by 29 countries including Australia,
Bangladesh, Cambodia, Fiji, Korea, Lao PDR, Myanmar, Sri Lanka and Vietnam,
two Associate Members, 13 Affiliate Members as well as representatives from the
Asia-Pacific Broadcasting Union (ABU) and the International Telecommunication
Union (ITU).
Asia-Pacific Region
The meeting saw the election of a new Chairman of the Management Committee. Mr.
Kyu-Jin Wee from South Korea took over from Malaysia’s Encik Bistaman Siru Abdul
Rahman who had successfully completed two consecutive terms as the Chairman.
SKMM is actively involved in the following fora in the Asia-Pacific Region:
• Asia-Pacific Telecommunity (APT)
• APEC Telecommunications Working Group (APEC TEL)
• Asia-Pacific Postal Union (APPU)
• Asia-Pacific Broadcast Regulators’ Roundtable
APT General Assembly
The APT General Assembly is the supreme body of the Asia-Pacific Telecommunity
(APT), which comprises all its Members and Associate Members. The General
Assembly meets every three years to deliberate on the strategic direction of the
APT for the next cycle and consequently establishes general policies and principles
to achieve its objectives. It also determines the annual budgets and limits on
expenditure as well as accedes to any agreements with external parties.
The 11th APT General Assembly was held in Kuala Lumpur from 11 to 13 December
2008 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 well
as representatives from the Asia-Pacific Broadcasting Union (ABU) and the
International Telecommunication Union (ITU).
During the assembly, YBhg Dato’ Dr. Halim Man, the Secretary – General of the
then Ministry of Energy, Water and Communications was elected to the post of
President of the APT for the next three years.
13th Asia-Pacific Regulatory Roundtable (APRR)
The Asia-Pacific Regulatory Roundtable (APRR) is an annual meeting attended by
regulators of the broadcasting industry from countries in the Asia-Pacific region.
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
sharing ideas, experiences and best practices.
The main purpose of the meeting is to:
• Foster closer relationships among broadcasting regulators in the region;
• 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
Impiana Hotel, Kuala Lumpur from 28 to 30 October 2008. Prior to this meeting,
Malaysia last hosted the APRR in 2001.
International/Intergovernmental Organisations
SKMM actively participates in the following international fora:
• International Telecommunication Union (ITU)
• Universal Postal Union (UPU)
• World Trade Organisation (WTO)
• Internet Corporation for Assigned Names and Numbers (ICANN)
• International Multilateral Partnership Against Cyber Threats (IMPACT)
IMPACT World Cyber Security Summit
SKMM organised the inaugural IMPACT World Cyber Security Summit (IMPACT
WCSS) which was held in Kuala Lumpur from 20 to 22 May 2008. This summit
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 roundtable, 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 of Malaysia YAB
Tun Abdullah Ahmad Badawi, who delivered the keynote address. H.E. 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 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 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 2008
As 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 SKMM
SKMM continues to welcome foreign delegations for study visits in response
to requests to share our experiences in a converged environment. In 2008, we
received a total of 16 delegations as listed in Table 1.
No. Foreign Delegates
Date
1
Communications and Media Commission of Iraq
19 - 21 Feb
2
The Radio and Television Supreme Council (RTUK), Turkey
28 Feb
3
Hong Kong Trade Development Council and Hong Kong
Digital Entertainment Mission
29 Feb
4
Permanent Secretary, Ministry of Communications, Brunei
Darussalam
21 Mar
5
Communications Commission of Kenya
6
Asia Pacific Carriers’ Coalition (APCC)
10 Jul
7
The Corps des Telecommunications, France
10 Jul
8
Korea Association of Information Technology (KAIT)
18 Jul
9
Ministry of Communications, Brunei Darussalam
21 - 25 Jul
10
Ministry of Posts and Telecommunications, Bangladesh
23 - 25 Sep
11
Communications Commission of Kenya
12
Ministry of Communications, Brunei Darussalam
30 Oct
13
Mayor of Guro District and officials from KOTRA, Republic of Korea
5 Nov
14
Ministry of Posts and Telecommunications, Bangladesh and 10 - 11 Nov
Bangladesh Telecommunications Regulatory Commission (BTRC)
15
The Frequency Management and Technology Analysis Division
of the Ministry of Information and Communications, Nepal
1 - 2 Dec
16
Ministry of Communications, Posts and Telegraphs, Myanmar
2 - 4 Dec
28 - 30 Apr
9 Oct
Table 1: Study Visits to MCMC by Foreign Delegations in 2008
SKMM Annual RePort 2008
136
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.
10
Delivering Better
Performance for
Greater Effectiveness
138
140
Human Capital Development
IT Strategic Review
SKMM Annual RePort 2008
138
139
Delivering Better Performance
for Greater Effectiveness
Human Capital Development
Overview
The 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.
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
sessions were undertaken with fellow regulators like Bank Negara Malaysia, Employees
Provident Fund (EPF) and others.
The Organisational Transformation and changed foundation that was laid in the
previous year was further mobilised and structured with emphasis on organisational
scorecards, performance management culture and system, internalising core values
and improving service delivery system.
The adoption of a Strategy Focused Organisation (SFO), as a principal theme for
organisational 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.
In terms of Organisation and Human Capital initiatives, our key focus was on
developing 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.
The combined theme of Strategy Focused Organisation (SFO) and Process
Improvement would be the centre of the organisational development programmes
of the Commission for 2009.
Continued emphasis was therefore placed on talent management, retaining core
capabilities and investment in human capital through growing, attracting and
retaining the talent pool.
Our investment in human capital development also included continuous learning
and 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.
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.
Our current HR practices are geared to motivate and retain the best employees to
meet 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.
One of the tools that SKMM adopted in 2007 for the purpose of enhancing the process
of performance management is the basic starter version of Balanced Scorecard.
The Balanced Scorecard approach emphasises the need to view organisational
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
Attracting and Retaining Talent
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.
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.
Recruitment
Resignation
There were 180 vacancies in 2008 There were 21
with breakdown as follows:
resignations
New Headcount – 159
recorded in 2008.
Resignation – 21
Employee Turnover
There was 137 recruitments for
rate is at 7%.
the year of which 60% were for
executive grade level (graduates).
Promotion
There were 35
promotions
exercised in 2008.
Positions
Grade
Number Of Staff
Sub Total
Chief Operating Officer
P12
1
Executive
Senior Director
P8
9
Director
P7
22
Director
P6
17
P5
61
P4
137
Deputy Director / Senior Executive /
Senior Engineer / Senior Analyst
Assistant Director / Executive /
Engineer / Analyst
247
Executive Secretary / Assistant
S3
12
Assistant Executive / Secretary
S2
90
Driver / General Worker
S1
24
Executive / Technical Support
Total
Non-Executive
126
373
Training and Learning Management
The 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:
• SKMM Induction Programme
• Finance for Non Financial Managers
• Business Etiquette: Professional Presence in Business
• Spectrum Monitoring Techniques
• Spectrum Auction Design and Implementation Workshop
SKMM Academy also collaborated with universities and the industry to organise
training programmes that benefitted both parties. Amongst the training programmes
organised were:
• Overview and Fundamentals of WiMAX (collaboration with MMU)
• Colloquium on Communications and Multimedia Act 1998: Perspectives and
Way Forward (collaboration with UMCoRS, University of Malaya)
• HF Broadcasting Co-ordination & Notification (collaboration with the ITU)
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.
SKMM Annual RePort 2008
140
141
Delivering Better Performance
for Greater Effectiveness
IT Strategic Review
Application Systems and Operations
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
division is headed by a new senior director, Encik Nik Aziz Nik Yaacob.
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.
Head of Division
Application
Management
Application
and web
Security and Policy
Applications
Infrastructure and
System Support
Help Desk
and Support
Help Desk
Network
Support
Application Management Department
The role and responsibilities of the Application Management Department are:
• Supervise and evaluate Information Systems requirements and resources.
• Manage a diverse team of IT professionals (team leaders, professional services
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/contribute
environment of information and knowledge sharing.
For 2008, SISD successfully rolled out the following application systems to improve
SKMM’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
public to submit and monitor complaints logged through URL address
https://aduan.skmm.gov.my
b. e-Spektrum
- Enable public to submit their Apparatus Assignment application
and monitor the application submission online through URL address
https://espektrum.mcmc.gov.my
c. e-Payment
- Additional payment channel to enable the public to pay through Internet Banking
payment gateway services; either through Financial Process Exchange (FPX)
or Credit Card (MIGS) through URL address https://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
through URL address http://search.mcmc.gov.my
e. e-Info services Website
http://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.
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 Department
The role and responsibilities of the Infrastructure and System Support
Department are:
• Ensure the SKMM’s IT infrastructure and systems support the business, and
enhance all of its core business processes, be they front office, back office, or
enabling processes.
• Provide a flexible responsive IT architecture framework to improve delivery of
service to SKMM’s clients.
• Create an IT architecture framework process that is easy to manage and
monitor in the future.
• Improve the quality, integrity and availability of SKMM’s data.
• Structure the IT organisation in a way that supports the implementation of
the strategy.
IT Help Desk
The year 2008 saw the start of a centralised internal IT Help Desk – providing
support 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 calls
forwarded to an on-duty offsite staff member.
Moving Forward - IT/IS Strategic Plan
Security and Policy Department
In 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:
• Platform to enhance public service levels, support improved decision-making
process, improve industry governance, facilitate information sharing and
contribute to industry development;
• Create an IT architecture framework process that is easy to manage and
monitor in the future;
• Improve the quality, integrity and availability of SKMM’s data.
July 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
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 – This principle emphasises the ability of IT infrastructure to handle
growth. The IT infrastructure must be able to manage with the Commission’s
requirement over the next three to five years.
• Connectivity – This principle emphasises the ability of IT infrastructure to
provide the necessary for the different type of connection required by the
business or organisation solution.
• Security – This principle emphasises securing the IT infrastructure from all
angles 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 for
the 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.
SKMM Annual RePort 2008
142
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.
11
Building 1Malaysia
Through ICT
Convergence
144
Corporate Highlights
SKMM Annual RePort 2008
144
145
Building 1Malaysia
Through ICT Convergence
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
3
7
11
15
4
8
12
16
1
5
9
13
17
2
6
10
14
18
13 12 MayLaunch 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
7 14 MarNetworked Content Development
Grant (NCDG) Awards Ceremony,
SKMM Auditorium
8 30 MarLaunch 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
SKMM Annual RePort 2008
146
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.
12
Maintaining
Transparency
and Good Governance
148
Governance and Audited
Financial Statements
SKMM Annual RePort 2008
148
149
Maintaining Transparency
and Good Governance
Governance and Audited
Financial Statements
In 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 Structure
The Commission consists of nine members appointed
by the Minister as follows:
a) Chairman;
b) three members representing the Government; and
c) 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
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.
Meetings
In 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; and
e) 1 Stamp Advisory Committee meeting;
and at the Management level:
f) 44 Executive Committee meetings;
g) 20 Licensing Committee meetings; and
h) 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 Control
SKMM 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 Auditors
SKMM 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 Commission
As 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.
SKMM Annual RePort 2008
150
151
Maintaining Transparency
and Good Governance
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 Committee
YBhg. 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.
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);
• Datuk Abu Huraira bin Abu Yazid, Chief Executive of Pos Malaysia Bhd;
• Y.M. Professor Dato’ Raja Zahabuddin bin Raja Yaacob;
• 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 Committee
YBhg. Datuk Dr. Halim Shafie – Chairman
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 Development
Grant Management Committee
The 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.
Members:
Encik Mohamed Sharil Mohamed Tarmizi (with effect from 16 June 2008)
– Chief Operating Officer
YBhg. Dato’ Jailani Johari – Senior Director, Universal Service Provision
Zamani Zakariah – Senior Director, MyICMS
Toh Swee Hoe – Senior Director, Research and Planning
Mohd Aris Bernawi – Senior Director, Resource Assignment and Management
Amarjit Singh – Senior Director, Content, Consumer, Network Security and Postal
Mohd Ali Hanafiah – Senior Director, Technology, Standards and Network
Laila Hassan – Acting Senior Director, Licensing and Economic Regulations
Ruzlan Zabidi – Senior Director, Management Services
Nik Abdul Aziz Nik Yaacob (with effect from 2 June 2008)
– Senior Director, Strategic Information and System
Tengku Zaib Raja Ahmad (with effect from 11 August 2008)
– Senior Director, Human Capital Management
Dato’ Tengku Sarafudin Badlishah – Director, Legal and Secretarial
Financial Statements for the Year Ended 31 December 2008
In Attendance:
Nur Sulyna Abdullah – Director, International Affairs
Zeti Marziana Muhamed – Director, Corporate Communications
Nuraffiza Ahmad /Sharina Md Deris - Secretary
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
SKMM Annual RePort 2008
152
153
Maintaining Transparency
and Good Governance
Statement by the Members of the Malaysian Communications and Multimedia Commission
Statutory Declaration
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.
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.
On behalf of Members of the Malaysian Communications and Multimedia Commission:
.........………………………………
Datuk Dr. Halim bin Shafie
Chairman
…………………..……………….
Datuk Dr. Abdul Samad Hj. Alias
Commission Member
.........………………………………
Hj. Ruzlan Zabidi
Before me:
Selangor,
Date: 28 April 2009
SKMM Annual RePort 2008
154
155
Maintaining Transparency
and Good Governance
Independent Auditors’ Report to the Members of the Malaysian Communications and Multimedia Commission
Balance Sheet as at 31 December 2008
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 Statements
The 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’ Responsibility
Our 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.
Opinion
In 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 Matters
This 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.
Petaling Jaya,
Date: 28 April 2009
KPMG
Firm Number: AF 0758
Chartered Accountants
Mohamed Raslan Abdul Rahman
Approval Number: 1825/05/09(J/PH)
Chartered Accountant
Assets
Property, plant and equipment
Note
3
Current assets
Fees and other receivables
4
Cash and cash equivalents
5
Total current assets
Total assets
Represented by:
Accumulated fund
6
2008
RM’000
2007
RM’000
135,533
104,127
29,006
1,173,278
40,569
990,668
1,202,284
1,031,237
1,337,817
1,135,364
1,091,364
916,565
129,310
128,901
Liabilities
Non-current liability
Deferred income
7
Current liabilities
Deferred income
7
Other payables and accrued expense
8
Taxation
Provision for TV receiver licences refund
9
Federal consolidated fund
10
69,735
45,662
1,234
- 512
58,520
30,120
48
95
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.
156
157
Maintaining Transparency
and Good Governance
Income and Expenditure Statement for the Year Ended 31 December 2008
2008
RM’000
2007
RM’000
77,788
220,071
39,074
99
215
3,400
72,263
179,383
33,684
2,492
1,110
Expenditure
Rebates for operating licence fees
Human resource expenses
Administrative expenses
Audit fee
Rental expenses
- premises
- network
- others
Depreciation of property, plant and equipment
Allowance for doubtful debts Others
Excess of income over expenditure before tax
340,647
288,932
Tax expense
11
Excess of income over expenditure after tax
Note
Statement of Total Recognised Gains and Losses for the Year Ended 31 December 2008
Income
Operating licence fees
Spectrum fees
Interest income
Gain on disposal of property, plant and equipment Reversal of allowance for doubtful debts
Other income
- 33,353
34,734
42
The Commission Members have not recognised gains and losses other than the net
surplus for the current financial year and the previous financial year.
632
26,012
30,737
55
739
863
385
25,542
1,332
3,635
690
1,473
426
9,899
1,827
1,574
100,625
73,325
240,022
215,607
(10,223)
(9,090)
229,799
206,517
The notes on pages 160 to 170 are an integral part of these financial statements.
The notes on pages 160 to 170 are an integral part of these financial statements.
SKMM Annual RePort 2008
158
159
Maintaining Transparency
and Good Governance
Cash Flow Statement for the Year Ended 31 December 2008
Cash flows from operating activities Excess of income over expenditure before tax Adjustments for:
Interest income
Depreciation of property, plant and equipment
Gain on disposal of plant and equipment
Operating surplus before changes in working capital
Changes in working capital:
Fees and other receivables
Federal consolidated fund
Deferred income
Other payables and accrued expenses
Cash generated from operations Tax paid
Net cash generated from operating activities
Cash flows from investing activities
Proceeds from disposal of property, plant and equipment Acquisition of plant and equipment
Interest received
Net cash used in investing activities
Cash flows from financing activities
Payment to the consolidated trust fund
Contribution to the Sarawak Rural Broadband Initiative Project
Refund to individual licencee
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December
Cash Flow Statement for the Year Ended 31 December 2008 (continued)
2008
RM’000
2007
RM’000
240,022
215,607
(39,074)
25,542
(99)
(33,684)
9,899
-
226,391
191,822
15,593
(603)
11,624
15,447
249,716
1,115
44,734
(11,028)
268,452
(9,037)
476,359
(9,175)
259,415
467,184
99
(56,948)
35,044
(27,409)
23,324
(21,805)
(4,085)
(45,000)
(10,000)
- (115,000)
(289)
(55,000)
(115,289)
182,610
990,668
347,810
642,858
1,173,278
990,668
The notes on pages 160 to 170 are an integral part of these financial statements.
2008
RM’000
2007
RM’000
Cash and cash equivalents comprise:
Deposits placed with licenced banks
Cash and bank balances
1,172,261
1,017
989,558
1,110
1,173,278
990,668
The notes on pages 160 to 170 are an integral part of these financial statements.
SKMM Annual RePort 2008
160
161
Maintaining Transparency
and Good Governance
Notes to the Financial Statements
Notes to the Financial Statements (continued)
Principal Activities
1. Basis of Preparation (continued)
(b) Basis of measurement
The financial statements have been prepared on the historical cost basis.
The 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.
(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.
The address of the principal place of business is as follows:
Principal place of business
63000 Cyberjaya
Selangor Darul Ehsan
(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.
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
FRS 4, Insurance Contracts FRS 7, Financial Instruments: Disclosures
FRS 8, Operating Segments
FRS 139, Financial Instruments: Recognition and Measurement
IC Interpretation 9, Reassessment of Embedded Derivatives
IC Interpretation 10, Interim Financial Reporting and Impairment
Effective date
1 January 2010
1 January 2010
1 July 2009
1 January 2010
1 January 2010
1 January 2010
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:
• Note 4 - allowance for doubtful debts
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
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.
SKMM Annual RePort 2008
(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.
162
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Maintaining Transparency
and Good Governance
Notes to the Financial Statements (continued)
Notes to the Financial Statements (continued)
2. Significant Accounting Policies (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.
(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.
(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:
• Office and communications equipment
6 – 7 years
• Computer equipment
3 – 5 years
• Furniture and fittings
6 – 7 years
• Motor vehicles
5 years
• Building
50 years
(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.
Depreciation methods, useful lives and residual values are reassessed at the balance sheet date.
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.
(b) Fees and other receivables
Fees and other receivables are stated at cost less allowance for doubtful debts.
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.
(c) Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, balances and deposits with banks.
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.
(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.
SKMM Annual RePort 2008
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.
164
165
Maintaining Transparency
and Good Governance
Notes to the Financial Statements (continued)
Notes to the Financial Statements (continued)
2. Significant Accounting Policies (continued)
3. Property, Plants and Equipment
(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.
(i)
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.
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.
2,728
239
4,361
1,275
10,873
-
36,729
-
26,678
23,974
132,547
27,409
At 31 December 2007/
1 January 2008
Additions
Disposals
Reclassification
4,971
355 -
-
48,128
49,493
-
56,118
2,967
291
-
-
5,636
1,133
(444)
-
10,873
-
-
-
36,729
-
-
-
50,652
5,676
-
(56,118)
159,956
56,948
(444)
-
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
Charge for the year
1,816
668
39,008
7,282
938
418
2,454
796
-
-
1,714
735
-
-
45,930
9,899
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.
At 31 December 2007/
1 January 2008
Charge for the year
Disposals
2,484
728
-
46,290
22,864
-
1,356
458
-
3,250
757
(444)
-
-
-
2,449
735
-
-
-
-
55,829
25,542
(444)
At 31 December 2008
3,212
69,154
1,814
3,563
-
3,184
-
80,927
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.
Net book value
At 31 December 2006
2,690
7,664
1,790
1,907
10,873
35,015
26,678
86,617
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.
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
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.
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.
Cost
At 1 January 2007
Additions
Total
RM’000
46,672
1,456
ii)
Office and Furniture
Capital
Communications Computer and
Motor Freehold Work-In-
Equipment Equipment
Fittings Vehicles
Land Building Progress
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000
4,506
465
b)
(j)
SKMM Annual RePort 2008
166
167
Maintaining Transparency
and Good Governance
Notes to the Financial Statements (continued)
4. Fees and Other Receivables
Notes to the Financial Statements (continued)
2008
RM’000
2007
RM’000
7. Deferred Income
Fees receivables
Less: Allowance for doubtful debts
8,684
(5,933)
22,803
(4,816)
Interest income receivables
Advances to staff
Other deposits
Other receivables
Staff loans
2,751
25,328
154
387
76
310
17,987
21,298
523
500
58
203
Current
Spectrum fees
3G spectrum assignment fees
Apparatus assignment fees
Operating licence fees
Class licence fees
Individual licence fees
29,006
2008
RM’000
2007
RM’000
21,506
47,540
19,188
39,332
589
100
-
69,735
58,520
128,794
516
128,249
652
129,310
128,901
40,569
5. Fees and Other Receivables
2008
RM’000
2007
RM’000
Non-current
Spectrum fees
3G spectrum assignment fees
Apparatus assignment fees
Deposits placed with licenced banks
Cash and bank balances
1,172,261
1,017
989,558
1,110
1,173,278
990,668
6. Accumulated Fund
2008
RM’000
2007
RM’000
60,000
Initial fund
60,000
Accumulated surplus brought forward
Payments made to the consolidated trust fund
Contribution to the Sarawak Rural Broadband Initiative Project
Refunds to individual licencee
856,565
(45,000)
(10,000)
- Excess of income over expenditure after tax
Accumulated surplus carried forward
765,337
(115,000)
(289)
8. Other Payables and Accrued Expense
2008
RM’000
2007
RM’000
Other payables
Accrued expenses
8,588
37,074
8,047
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
801,565
229,799
650,048
206,517
1,091,364
916,565
10. Federal Consolidated Fund
Deferred income relates to the amount of unearned income from advance payment by licencees for future financial periods.
The initial fund has been utilised to finance the working capital of the Commission.
SKMM Annual RePort 2008
Provision for TV receiver licences refund represents provision for amount refundable to TV licence holders in view of the abolishment of television licences with
effect from 1 April 1999 as a result of the repeal of the Broadcasting Act 1988.
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.
168
169
Maintaining Transparency
and Good Governance
Notes to the Financial Statements (continued)
11. Tax Expense Income tax expense
- current year
- prior year
Reconciliation of tax expense
Excess of income over expenditure before taxation
Tax at statutory tax rate of 26% (2007: 27%)
Tax exempt income Non-deductible expenses Notes to the Financial Statements (continued)
2008
RM’000
2007
RM’000
10,159
64
9,048
42
10,223
9,090
240,022
215,607
62,406
(78,409)
26,162
58,214
(68,917)
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:
Commission and Executive Committee members’ remuneration
13. Capital Commitment
Property, plant and equipment
Authorised but not contracted for Contracted but not provided for and payables
2008
RM’000
2007
RM’000
3,507
2,585
2008
RM’000
15,000
- 15,000
2007
RM’000
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 risk
Credit risk is the potential exposure of the Commission to losses in the event of non-repayment of licence fees from licencees.
10,000
51,966
61,966
SKMM Annual RePort 2008
170
Maintaining Transparency
and Good Governance
Notes to the Financial Statements (continued)
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
Effective Effective
Interest
Within
1-5 Interest
Rate
1 Year
Years
Rate
%
RM’000
RM’000
%
2007
Within
1 Year
RM’000
1-5
Years
RM’000
990,668
-
Financial assets
Cash and cash equivalents
3.39
1,154,378
18,900
3.37
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.
SKMM Annual RePort 2008