Can Gobind act fast?

ABOUT six months ago, the wholesale access pricing for high-speed broadband (HSBB) and transmission was mandated, but it has yet to be effected.

The onus is on Telekom Malaysia Bhd (TM), as it is the access giver to the new pricing. However, it has not acted. Why it has been dragging its feet is something only the company knows. It has to sign agreements with players and offer new pricing, which is 30%-60% lower than current prices. With lower access pricing, it should translate to lower retail pricing for users and a profit hit in the short term for TM.

TM’s share price plunge in recent weeks highlights the risk ahead for the company. A new pricing mechanism would see profits being squeezed, and with KPIs and profit targets to meet, it is understandable why such a plan was not carried out.

While commercial gains are a factor for any company, it may perhaps be time to relook at its model. TM acts as the provider of infrastructure and access, but it also has a commercial business that competes with those using its infrastructure.

Even though TM may deny it gives preferential treatment to its own units, there is always an element of doubt, given its own wants and requirements over the rest of the access seekers such as Celcom Axiata Bhd, Digi.Com Bhd, Maxis Bhd, U Mobile and other players.

Several countries such as Australia and Singapore have clear infrastructure players so that they just focus on providing infrastructure. There is also little need to invest billions of ringgit to build a second network even though the evolution of the Internet requires efficient networks. What TM needs to do is be more efficient.

Tenaga Nasional Bhd also has an HSBB network that can be used to provide access, but this powerhouse also will need to set up a separate company to manage it efficiently and monetise it to create competition in terms of infrastructure access and pricing. It’s about time there is some competition on the access side so that the cost of broadband can be lower for the rakyat.

Communications and Multimedia Minister Gobind Singh Deo ( pic) on his first day on the job did say he wanted to “double the speed of broadband at half the price”. Users are waiting for this, and unless TM moves faster, that promise might take way longer than 100 days to materialise.